Disclosure of Non-financial Information in Tourism: Does Tourism Demand Value Nonmandatory Disclosure?

Tourism industry has a highly fragmented value chain. There are very different ranges of companies that operate in tourism industry – from very small to large international chains. They serve wide variety of customers – tourists. Tourists are to be considered as one of the most important primary stakeholders when observed from the perspective of companies operating in tourism. However, it can be argued that many of the companies operating in tourism, particularly in Europe, are still too much product-driven and much less customer-oriented. Stronger focus on customers results in superior financial performance. Corporate citizenship is not to be left behind either. In order to achieve better financial results, managers should take into account tourists’ wants and needs. Following the mentioned, the changing global trends that affect tourists’ behavior mustn’t be neglected because of the strong impact they pose on the tourism sector in general. Competition in tourism remains fiercer than ever and traditional financial reports are no longer disclosing the adequate information. Additional disclosure is needed. Among the information on non-financial metrics, information on tourist satisfaction with destination’s offer is required to rip the financial benefits in tourism. Due to tourism multiplier effect, companies operating in other sectors will get extra benefits. In this paper, authors have proved the positive influence tourists’ satisfaction with destination’s offer has on average daily spending of tourists. Regression analysis was used for that purposes. The data on tourists satisfaction with destination offer and the data about average daily spending of tourists were collected in the selected well-know tourism destination in Croatia. Regression results indicate that tourists’ satisfaction influences tourists daily spending thus, indirectly influencing companies’ performance. In order to achieve better performance companies should focus more to increase tourists satisfaction through improvement of tourism products they offer. As per obtained results, information regarding tourists’ satisfaction should be integrated into existing reports or a supplementary report should be designed. Whilst combining information from existing financial reports and adding additional information on tourist satisfaction, managers can better prepare adequate business strategy and strategic plans for the year ahead of them. Through CSR reporting companies communicate with wider set of stakeholders, including tourists, and it can be used for increasing tourists satisfaction, which leads to higher tourists consumption. In such a way the overall company’s performance could be improved. Information about tourists’ satisfaction will be useful to different stakeholders, especially to tourists who base their decision combining various motivational factors. One such factor is destination’s offer and social responsibility of companies operating in tourism.