Hospitality Industry in Russia: Key Problems and Solutions
Abstract
The aim of the present research is to study the condition and development of the Russian hotel market under the crisis. In the course of the present work the methods of systematic approach, economic and statistical analyses, quantitative and qualitative studies have been applied. Such methods allow to reveal the problems and prospects of the Russian hotel market development. The article presents the results of analyzing the state of the Russian hotel market. Authors identified factors hindering the development of the hospitality: worn out and outdated rooms in most hotels; high costs of labor, its training and retraining; high interest rates for financing new hotel development projects; high cost of housing and utility; high land tax rates; high property tax rate. The authors of the research have emphasized the necessity of the holding of the anti-crisis measures, aimed at the adjustment of the approaches to the hotel business management under the condition of the fluctuating market. The top priority steps are: reduce the value-added tax for hotel businesses, reduce the land tax for the hotel businesses, reduce the property tax, reduce the administrative burden on the hotel staff on migration registration of foreign and Russian citizens, create rules for providing hotel services in such a way that they protect the rights of not only consumers, but also hotels. As a result of the research the necessity of reforming the system of interaction between the hotel business and the government has been proved. All authors` references aim at the overcoming the negative tendencies on the Russian hotel market, caused by current crisis.
References
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[45] Mattsson, J., and Orfila-Sintes, F. 2014. Hotel Innovation and Its Effect on Business Performance. International Journal of Tourism Research, 16 (4): 388-398.
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[51] Nicolau, J.L. and Santa-María, M.J. 2013. The effect of innovation on hotel market value. International Journal of Hospitality Management, 32 (1): 71-79.
[52] Nieves, J. and Segarra-Ciprés, M. 2015. Management innovation in the hotel industry. Tourism Management, 46: 51-58.
[53] Orfila-Sintes, F. and Mattsson, J. 2009. Innovation behavior in the hotel industry. Omega, 37 (2): 380-394.
[54] Palmer, T. and Riera, A. 2003. Tourism and environmental taxes. With special reference to the "Balearic ecotax". Tourism Management, 24 (6): 665-674.
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[56] Popov, L.A., Romanyuk, A.V., Blinova, E.A. and Gareev, R.R. 2017. Booking curves as an instrument of increasing of independent hotel enterprise efficiency.” Case of Russia. Journal of Environmental Management and Tourism, 8(6): 1268-1278.
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[59] Sharma, A., Motta, V.E.D., Choi, J.-G. and Altman, N.S. 2016. Economic production in hospitality and tourism industry: How do we compare to other services? International Journal of Contemporary Hospitality Management, 28 (5): 1026-1050.
[60] Szczygielski, K., Grabowski, W. and Woodward, R. 2017. Innovation and the growth of service companies: the variety of firm activities and industry effects. Industry and Innovation, 24 (3): 249-262.
[61] Tarmizi, H.B., Daulay, M. and Muda, I. 2016. The influence of population growth, economic growth and construction cost index on the local revenue of tax on acquisition of land and building after the implementation of law no. 28 of 2009. International Journal of Economic Research, 13 (5): 2285-2295.
[62] Ustrov, Y., Valverde, M. and Ryan, G. 2016. Insights into emotional contagion and its effects at the hotel front desk. International Journal of Contemporary Hospitality Management, 28(10): 2285-2309.
[63] Zodrow, G.R. 2001. The property tax as a capital tax: A room with three views. National Tax Journal, 54 (1): 139-156.
[2] Abbate, T., Presenza, A. and Viassone, M. 2017. The development of sustainable tourism through market-based sources of innovation in the albergo diffuse. Mercati & Competitività, 3 (3): 41-60.
[3] Amara, N., Landry, R. and Doloreux, D. 2009. Patterns of innovation in knowledge-intensive business services. Service Industries Journal, 29 (4): 407-430.
[4] Armbruster, H., Bikfalvi, A., Kinkel, S. and Lay, G. 2008. Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys. Technovation, 28 (10): 644-657.
[5] Asikainen, A.L. 2013. Innovation modes and strategies in knowledge intensive business services. Service Business, 9 (1): 77-95.
[6] Belderbos, R., Carree, M. and Lokshin, B. 2004. Cooperative R&D and firm performance. Research Policy, 33 (10): 1477-1492.
[7] Bilgihan, A. and Nejad, M. 2015. Innovation in hospitality and tourism industries. Journal of Hospitality and Tourism Technology, 6 (3)
[8] Birkinshaw, J., Hamel, G. and Mol, M.J. 2008. Management innovation. Academy of Management Review, 33 (4): 825-845.
[9] Bonham, C., Fujii, E., Im, E. and Mak, J. 1992. The impact of the hotel room tax: An interrupted time series approach. National Tax Journal, 45 (4): 432-442
[10] Carlborg, P., Kindström, D. and Kowalkowski, C. 2014. The evolution of service innovation research: A critical review and synthesis. Service Industries Journal, 34 (5): 373-398.
[11] Castelacci, F. 2008. Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation. Research Policy, 37 (6-7): 978-994.
[12] Černe, M., Kaše, R. and Škerlavaj, M. 2016. Non-technological innovation research: Evaluating the intellectual structure and prospects of an emerging field. Scandinavian Journal of Management, 32 (2): 69-85
[13] Chamberlin, T., Doutriaux, J. and Hector, J. 2010. Business success factors and innovation in Canadian service sectors: An initial investigation of inter-sectoral differences. Service Industries Journal, 30 (2): 225-246.
[14] Chang, Y.-C., Linton, J.D. and Chen, M.-N. 2012. Service regime: An empirical analysis of innovation patterns in service firms. Technological Forecasting and Social Change, 79 (9): 1569-1582.
[15] Chen, M.J. and Hambrick, D.C. 1995. Speed, stealth, and selective attack: How small firms differ from large firms in competitive behavior. Academy of Management Journal, 38 (2): 453-482.
[16] Cucari, N., Wankowicz, E. and Esposito De Falco, S. 2019. Rural tourism and Albergo Diffuso: A case study for sustainable land-use planning. Land Use Policy, 82: 105-119.
[17] Dalimunthe, D.M.J., Fadli, and Muda, I. 2016. The application of performance measurement system model using Malcolm Baldrige Model (MBM) to support Civil State Apparatus Law (ASN) number 5 of 2014 in Indonesia. International Journal of Applied Business and Economic Research, 14 (11): 7397-7407.
[18] De Rooy, F. and Budiarso, N. 2015. Analysis of contribution of local tax revenue to local locally-generated revenue (pad) in raja ampat regency. Journal of Economic, Management, Business and Accounting Research, 4 (1): 33-45.
[19] Denizci Guillet, B. and Law, R. 2010. Analyzing hotel star ratings on third‐party distribution websites. International Journal of Contemporary Hospitality Management, 22 (6): 797-813.
[20] Dioko, L.A.N., So, S.I.A. and Harrill, R. 2013. Hotel category switching behavior—Evidence of mobility, stasis or loyalty. International Journal of Hospitality Management, 34: 234-244.
[21] Enz, C.A. 2012. Strategies for the Implementation of Service Innovations. Cornell Hospitality Quarterly, 53 (3): 187-195.
[22] Evangelista, R. and Vezzani, A. 2010The economic impact of technological and organizational innovations. A firm-level analysis. Research Policy, 39(10): 1253-1263.
[23] Faems, D., Van Looy, B. and Debackere, K. 2005. Interorganizational collaboration and innovation: Toward a portfolio approach. Journal of Product Innovation Management, 22 (3): 238-250
[24] Fagerberg, J. and Mowery, D.C. 2009. The Oxford Handbook of Innovation. The Oxford Handbook of Innovation, pp. 1-680
[25] Forsyth, P. and Dwyer, L. 2002. Market power and the taxation of domestic and international tourism. Tourism Economics, 8 (4): 377-400.
[26] Fujii, E., Khaled, M. and Mak, J. 1985. The exportability of hotel occupancy and other tourist taxes. National Tax Journal, 38 (2): 169-178.
[27] Gago, A., Labandeira, X., Picos, F. and Rodríguez, M. 2009. Specific and general taxation of tourism activities. Evidence from Spain. Tourism Management, 30 (3): 381-392.
[28] Gallouj, F. 2002. Innovation in services and the attendant old and new myths. Journal of Socio-Economics, 31 (2): 137-154
[29] Gambardella, A. and McGahan, A.M. 2010. Business-model innovation: General purpose technologies and their implications for industry structure. Long Range Planning, 43 (2-3): 262-271.
[30] Gomezelj, D.O. 2016. A systematic review of research on innovation in hospitality and tourism. International Journal of Contemporary Hospitality Management, 28 (3): 516-558.
[31] Grissemann, U., Plank, A. and Brunner-Sperdin, A. 2013. Enhancing business performance of hotels: The role of innovation and customer orientation. International Journal of Hospitality Management, 33(1): 347-356.
[32] Gunday, G., Ulusoy, G., Kilic, K. and Alpkan, L. 2011. Effects of innovation types on firm performance. International Journal of Production Economics, 133(2): 662-676
[33] Hegeduš, I., et al. 2017. Sports and recreational tourism of Koprivnica Krizevci County in Republic of Croatia. Journal of Environmental Management and Tourism, 8(8): 1595-1603.
[34] Hertog, P.D., Gallouj, F. and Segers, J. 2011. Measuring innovation in a 'low-tech' service industry: The case of the Dutch hospitality industry. Service Industries Journal, 31 (9): 1429-1449.
[35] Hidalgo, A. and D'Alvano, L. 2014. Service innovation: Inward and outward related activities and cooperation mode. Journal of Business Research, 67 (5): 698-703
[36] Hjalager, A.-M. 2010. A review of innovation research in tourism. Tourism Management, 31 (1): 1-12.
[37] Jensen, T.C. and Wanhill, S. 2002. Tourism's taxing times: Value added tax in Europe and Denmark. Tourism Management, 23 (1): 67-79.
[38] Lepeshkin V.A., et al. 2017. Business activity in the field of tour operator services in Russia and development of the national tourism. International Journal of Applied Business and Economic Research, 15(8): 53-70.
[39] Line, N.D. and Runyan, R.C. 2012. Hospitality marketing research: Recent trends and future directions () International Journal of Hospitality Management, 31 (2): 477-488.
[40] Mak, J. 2015. Research note: Are hotel property taxes fully passed on to hotel guests? Implications from recent research on property tax incidence. Tourism Economics, 21(4): 899-905.
[41] Malerba, F. 2002. Sectoral systems of innovation and production. Research Policy, 31 (2): 247-264.
[42] Manente, M. and Zanette, M., 2010. Macroeconomic effects of a vat reduction in the Italian hotels & restaurants industry. Economic Systems Research, 22(4): 407-425.
[43] Martin-Fuentes, E., Mateu, C. and Fernandez, C. 2018. Are users' ratings on tripadvisor similar to hotel categories in Europe? Cuadernos de Turismo, (42): 305-316.
[44] Martin-Rios, C. 2014. Why do firms seek to share human resource management knowledge? The importance of inter-firm networks. Journal of Business Research, 67 (2): 190-199.
[45] Mattsson, J., and Orfila-Sintes, F. 2014. Hotel Innovation and Its Effect on Business Performance. International Journal of Tourism Research, 16 (4): 388-398.
[46] Mieszkowski, P. 1972. The property tax: An excise tax or a profits tax? Journal of Public Economics, 1(1): 73-96.
[47] Miozzo, M., and Soete, L. 2001. Internationalization of services: A technological perspective. Technological Forecasting and Social Change, 67 (2-3): 159-185.
[48] Munjal, P.G. 2019. Enhancing heritage tourism in small and medium towns by leveraging their cultural heritage, traditional knowledge and skills. Worldwide Hospitality and Tourism Themes, 11(1): 87-98.
[49] Muthitacharoen, A., and Zodrow, G.R. 2012. Revisiting the Excise Tax Effects of the Property Tax. Public Finance Review, 40 (5): 555-583.
[50] Nasir, A., Basri, Y.M., Kamaliaha and Muda, I. 2017. Effectiveness of potential tax region as the real local revenue sources in riau coastal area. International Journal of Economic Research, 14(12): 313-324.
[51] Nicolau, J.L. and Santa-María, M.J. 2013. The effect of innovation on hotel market value. International Journal of Hospitality Management, 32 (1): 71-79.
[52] Nieves, J. and Segarra-Ciprés, M. 2015. Management innovation in the hotel industry. Tourism Management, 46: 51-58.
[53] Orfila-Sintes, F. and Mattsson, J. 2009. Innovation behavior in the hotel industry. Omega, 37 (2): 380-394.
[54] Palmer, T. and Riera, A. 2003. Tourism and environmental taxes. With special reference to the "Balearic ecotax". Tourism Management, 24 (6): 665-674.
[55] Palmer-Tous, T., Riera-Font, A. and Rosselló-Nadal, J. 2007. Taxing tourism: The case of rental cars in Mallorca. Tourism Management, 28 (1): 271-279.
[56] Popov, L.A., Romanyuk, A.V., Blinova, E.A. and Gareev, R.R. 2017. Booking curves as an instrument of increasing of independent hotel enterprise efficiency.” Case of Russia. Journal of Environmental Management and Tourism, 8(6): 1268-1278.
[57] Rushmore, S. and Rubin, K. 1984. The Valuation of Hotels and Motels for Assessment Purposes HVS International, Mineola, NY accessed 30 April 2013
[58] Sandvik, I.L., Duhan, D.F. and Sandvik, K. 2014. Innovativeness and Profitability: An Empirical Investigation in the Norwegian Hotel Industry. Cornell Hospitality Quarterly, 55 (2): 165-185.
[59] Sharma, A., Motta, V.E.D., Choi, J.-G. and Altman, N.S. 2016. Economic production in hospitality and tourism industry: How do we compare to other services? International Journal of Contemporary Hospitality Management, 28 (5): 1026-1050.
[60] Szczygielski, K., Grabowski, W. and Woodward, R. 2017. Innovation and the growth of service companies: the variety of firm activities and industry effects. Industry and Innovation, 24 (3): 249-262.
[61] Tarmizi, H.B., Daulay, M. and Muda, I. 2016. The influence of population growth, economic growth and construction cost index on the local revenue of tax on acquisition of land and building after the implementation of law no. 28 of 2009. International Journal of Economic Research, 13 (5): 2285-2295.
[62] Ustrov, Y., Valverde, M. and Ryan, G. 2016. Insights into emotional contagion and its effects at the hotel front desk. International Journal of Contemporary Hospitality Management, 28(10): 2285-2309.
[63] Zodrow, G.R. 2001. The property tax as a capital tax: A room with three views. National Tax Journal, 54 (1): 139-156.
Published
2019-10-02
How to Cite
ROMANYUK, Anton V.; GAREEV, Roman R..
Hospitality Industry in Russia: Key Problems and Solutions.
Journal of Environmental Management and Tourism, [S.l.], v. 10, n. 4, p. 788-800, oct. 2019.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/3885>. Date accessed: 26 apr. 2024.
doi: https://doi.org/10.14505//jemt.v10.4(36).09.
Section
Article
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.