Analysis of the hotel industry potential of Lviv region. Prospects for the rural hotels development

Abstract

The hotel industry is one of the most important components of tourism. Its capacity depends on the ability to generate revenue from the full range of tourism services, and, consequently, the success of tourism development at both national and regional levels. Therefore, in this study we would like to assess (1) the hotel sector positioning in the Lviv region by share in the tourist accommodation establishments among the regions of Ukraine; (2) state indicators of Ukraian hotel industry in comparison with similar indicators of the EU member states; (3) the Lviv region position in terms of share in the Ukraine hotel sector among other regions; (4) prospects for the rural hotels development. In the research process we used the systematic review method of scientific publications, Ukrainian legislation, as well as information and analytical materials of international organizations in the tourism field. The hotel sector positioning of Lviv region among other Ukraine regions it is determined on the basis of the studied regions share in the total volume of the country as a whole. The analysis showed that hotels and similar accommodation are the main part of the tourist accommodation establishments potential in the Lviv region. During the study period (2017–2019) the hotel business of Lviv region has a consistently high position among other regions (2nd place). Ranking 2nd in Europe in terms of area, Ukraine ranks 10th in the number of hotels and similar accommodation, and 22nd in the number of beds – among the EU countries, which indicates the insufficient level of the national hotel sector development. The number of hotels in Ukraine is growing slowly. The main reasons for this are: the unstable economic and political situation, the high cost of loans to finance the construction of new hotels, long-term return on investment in hotel real estate and others. The experience of foreign countries with a high level of the hotel sector development shows that state intervention is used to achieve such results. Therefore, in order to develop the hotel sector in Ukraine, it is necessary to develop a program to support it. In particular, in our opinion, fiscal incentives should be introduced (for example, a reduction in the VAT rate for the hotel sector). To increase the tourist flow can be applied the practice of VAT refunds for tourists, reducing VAT rates on passenger transport.