Innovative component as a necessary factor for providing enterprises` development

Abstract

The article examines negative trends and issues of the tourism industry in the world, and in Europe in particular and studies the impact of the crisis caused by the COVID-19 virus on the functioning of tourism and hospitality agencies and firms. Travel and tourism's direct contribution to GDP in the World was approximately 2.9 trillion U.S. dollars in 2019. It was found that United States’ travel and tourism industry contributed the largest sum at 580.7 billion U.S. dollars in 2019. The impact of COVID-19 on tourism in Q1 2020 was 67 million fewer international tourist arrivals, 80 US$ billion lost in exports, 100% destinations with travel restrictions. All parts of the industry have been affected, from hotels, motels and resorts, to bed and breakfasts and home-sharing platforms like Airbnb. It was found that rural tourism is one of the factors that can be a fundament for economic recovery and development not only in EU, but in Ukraine as well. Ukrainian tourism and hospitality faced losses from quarantine and pandemics at $ 3-5 billion. Approximately 80% of hospitality establishments in Ukraine were small businesses, sole proprietors, that didn`t survive the quarantine. The number of nights spent at tourist accommodation establishments in rural areas for 2014-2019 in European Union and some most popular tourist destinations showed a slightly increase from 2014 till 2016 and from 2017 till 2019. In 2019, over 3,5 million domestic tourists and almost 900 thousand international tourists stayed in rural accommodations in Spain. Preventive measures and suggestions for the application of crisis management were submitted in this investigation aimed at increasing innovative flexibility within the enterprise, developing preparatory plans to avoid crisis situations and precautionary measures for their implementation were proposed in the article.