Baltic Journal of Economic Studies (Jun 2024)
THE ROLE OF STATE SUPPORT IN THE DEVELOPMENT OF THE HOTEL AND RESTAURANT BUSINESS IN THE CONTEXT OF CRISIS PHENOMENA AND EUROINTEGRATION PROCESSES
Abstract
The article presents the results of a study of the state of the hotel and restaurant business in Ukraine in general and the Transcarpathian region in particular in the context of crisis phenomena. The authors analyse the peculiarities of functioning of hospitality enterprises in the context of military operations on the territory of Ukraine. The research provides an analytical review of the legislative framework and social factors that have influenced the activities of hospitality enterprises in conditions of instability. It also identifies the problems and prospects for the development of the hotel and restaurant business in the context of overcoming the consequences of military operations, European integration processes and legislative changes, and outlines promising ways of future recovery of the hospitality sector as a component of tourism. The purpose of the article is to conduct an analytical study of the state of the hotel and restaurant business in the post-covid period and the active phase of the military conflict, and also the impact of state regulation on overcoming such destructive factors against the background of Ukraine's European integration processes. Methodology. The study was conducted on the basis of an analysis of statistical indicators of the performance of temporary accommodation (accommodation) and catering enterprises, based on analytical and statistical materials of official statistics of the Zakarpattia Oblast for the period from 2020 to 2024, provided by the Main Department of Statistics in the Zakarpattia Oblast. The legal framework and regulatory documents related to the identified issues were analysed. The paper analyses the state and needs of SMEs in Ukraine as assessed by local hromadas, as well as an analytical study based on a survey of owners of hotel and restaurant businesses in Zakarpattia Oblast through personal interviews. The monitoring study covered 50 enterprises of different sizes and different forms of ownership. Results. The publication analyses the factors that stimulate the activity of enterprises in the accommodation sector, describes the destructive factors that suppress or complicate the activity of enterprises in this sphere of economic activity, and considers the state policy aimed at supporting the hotel and restaurant business and the tourism sector in general. The authors identify the commonality of problematic issues for the hromadas of Ukraine on the way to the future post-war reconstruction of the hospitality and tourism sector, as well as the functioning of this sector today. The research lists the opportunities for business on the way to European integration and the challenges associated with it. As a result, the authors suggested ways to accelerate and facilitate the integration of the local hotel and restaurant business, improve the legislative framework at the state and local levels for the development of the hotel and restaurant sector and its de-shadowing, and also emphasised the importance of close cooperation of SMEs with state and local authorities in terms of support, development promotion, investment prospects and implementation of European legislation in the activities of such enterprises.
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