The use of the uniform system of accounts in selected Maltese hotels

Abstract

Purpose: This study aims to analyse the use of the Uniform System of Accounts for the Lodging Industry (USALI) in Maltese hotels; why Maltese hotels use it or not; how those which use it utilise the information it generates; and the opinion about USALI of consultants to hotels. Design: The objectives set were achieved through twenty-four semi-structured interviews: twenty-two held with the Financial Controllers of selected 3-, 4- and 5- star hotels, and two with consultants of Maltese hotels. Findings: This study showed that the majority of the interviewed hotels make use of USALI, mostly for comparison with other hotels. Some hotels do not make use of USALI either because they are not familiar with it or else do not consider it suitable for them. This study also found that the major decisions taken on the basis of the information generated from USALI relate to price and cost reduction decisions. In addition, the information generated is usually not made available to the lower levels of management. Conclusions: This study concludes that the use of USALI in Maltese hotels needs to be improved. More awareness about it should be developed to encourage such hotels to start making use and benefiting from it. Moreover, users of USALI need to become aware of the full potential of the system to generate information which could be used by them for many purposes, not just for comparison. Value: This study provides insight into the use or otherwise of USALI in Maltese hotels. It recommends that more hotels should start using USALI, and the setting up of a committee to encourage and help hotels to adopt the system.