STRUCTURAL CHANGES IN THE HOTEL BUSINESS IN THE CONDITIONS OF WAR TIME

Abstract

Problem Statement and Purpose. The hotel and tourism industry is one of the most attractive sectors of the economy for investment due to small initial capital investments, the ever-growing demand of society for tourism and hotel services, a high level of profitability and the average payback period of projects. The hotel and tourism industries stimulate the development of related sectors of the national economy, primarily construction and trade, and contribute to the creation of new jobs. The hotel and tourist industries actively influence the economy of the city (region, country in general), in particular, the spheres of economic and social activity. Military actions on the territory of Ukraine since the beginning of 2022 have significantly affected the demand and supply of hotel services in the country. The destruction of accommodation facilities damaged by shelling and their loss as a result of the occupation was the result of a decrease in the supply of the hotel market. As a result, number pools were emptied in many regions. The hotel industry of the northern, eastern and southern regions of Ukraine, as well as the city of Kyiv, suffered the greatest negative impact. The best situation in the hotel business is currently demonstrated in the western part of Ukraine, where accommodation establishments are operating in full and in fact at 100 percent capacity. As for the hotel sector in other parts of the country: companies have faced difficulties in providing services. The main goal of accommodation facilities was to adapt companies to the realities of wartime, taking into account curfews and air raids. Searching for new forms of service and re-equipment of establishments according to safety requirements became important tasks of hotels. Data & Methods. The research used data from official websites and articles from Ukrainian web magazines. Empirical research methods (observation and monitoring of hotel services) and the forecasting method were used to achieve the goal. Results. Since the beginning of the full-scale invasion, the country’s tourism industry has significantly decreased It is also complicated by the fact that Ukraine, like many other countries of the world, has not yet fully “recovered” from the coronavirus pandemic. For these very reasons, foreign tourism is not developing. First, a large number of citizens have increased expenses and decreased incomes. Secondly, conscripts cannot go abroad with their families, even if they have the means to do so. Third, there are logistical problems. Besides, there will be no flow of foreign tourists until the country becomes safe. And today’s visit to Ukraine is this mainly representatives of foreign mass media and industry workers who move around the country for work. In such difficult conditions for the Ukrainian hospitality sector, as martial law, service failures are an unpredictable state, where work standards are very important and demonstrate service to the guest. That is why accommodation establishments must be able to identify possible problems that may be caused by external factors and develop options for behavior in the event of their occurrence (as in the case of a power outage – hotels operate with the help of generators). It is also very important to “show concern for the guest”. This applies to such details as: the mode of operation of various services, the format of check-in and check-out, the operation of room service and, as relevant, the mode of operation of the generator, and what services are available with it. Currently, the western part of Ukraine continues to function actively (which will continue to be popular over the next 5 years, due to the need to restore infrastructure in other parts of the country) and domestic tourism is developing. I can assume that in the future, after the liberation of the state from the occupiers, inbound tourism will be active and will be associated with business trips and the involvement of European countries in the reconstruction process. There will also be the resumption of work of some hotel chains and the launch of accommodation facilities that have suspended their opening due to martial law. Regarding the speed of restoration of the hotel industry, such two factors as the duration of hostilities on the territory of Ukraine and the level of migration of the country’s citizens abroad can testify. So far, the guests of accommodation establishments are mainly Ukrainians (99%), the latter (1%) – foreign journalists, military personnel, volunteers and representatives of international organizations.