An Analysis of Relationship Between Sustainable Tourism and Sustainable Profitability In Tourism Sector, The Case of Turkey

Abstract

In this study, the financial performance of the companies in tourism sector trading in Istanbul Stock Exchange (BIST) was analyzed through statistical analysis method. The main purpose of this study is to examine the relationship between service production cost and Earn Before Interest and Tax (EBIT) and Earn Before Interest, Tax, Depreciation, and Amortization (EBITDA) for the companies that are trading in tourism sector. It is established that there is a signifcant relationship between service production cost and EBIT, EBITDA. Furthermore, by calculating Return on Assets (ROA) and Return on Equity (ROE)’s of the companies trading in tourism sector, this study emphasized that the companies are required to produce sustainable profitability with strong equity and efficiency strategies.

Keywords: Sustainable profitability, Performance analysis, Tourism companies in Turkey, EBIT, EBITDA.