There is considerable debate in the literature about the economic implications of firms' environmental management. The current study identifies the determinants and implications of environmental management and performance, using an empirical analysis of 187 hotels in the third most visited region of Spain – itself the second most important tourist destination in the world (2008). The study confirms the positive influence of environmental management and performance on an organisation's economic performance. Consequently, the study contributes to the natural resource-based view of the firm. For this purpose, starting from an exhaustive and critical review of the literature the study defines a valid and reliable model, adapted to the socio-economic context of the analysis, with which to evaluate firms' environmental protection actions and their outcomes.