Crisis management by enterprises in the tourism and recreational services

L. I. Mihov

Crisis management BY enterprises in the tourism and recreational services

Summary. The article investigates the current state of development of the tourism-recreational economy of Ukraine principles of crisis management by enterprises of sphere are studied and generalized.

Key words: tourism, hotel industry, tourism industry, the hotel complex, hotels and other places for temporary accommodation, motels, hotels, business centers, campsites.

Problem. The role of hotel industry, the overall structure of the tourism-recreational complex in any country can not be overemphasized. Hotel fund of Ukraine serves as the basic structure through which the bulk of income of the tourism sectoris accumulated. Therefore, the current state and development (both in the short term and in the long term) of hotels and other places for temporary residence, is a very important indicator of tourist flows. Indeed, in this case the volume of travelers and tourists directly depend not only on the availability of tourist and recreational resources, but also on the quantity and quality of components of the hotel complex.

Today it should be noted, poor quality and uncompetitiveness of most structural component of the hotel sector. This is primarily due to the obsolescence of fixed assets and insufficient funding for restoration and new construction. This leads to investigate this issue in terms of untapped opportunities and hidden potential of hotel complex. Since tourism and recreation sector is inter area covering more than 40 allied industries (transport, accommodation, food, education, medicine, natural resources, etc.), it is necessary to improve mechanisms for the regulation and system of management of tourism enterprises at all levels and the need to develop measures of crisis management by tourism enterprises in order to ensure the development of the tourism industry of Ukraine as a whole.

Analysis of recent research and publications. Recently, in the economic literature, research and publications, much attention is paid to the importance of the hotel industry in general tourism sector and the principles of crisis management by relevant objects. This issue is the subject of many works of local scientists as Ambrosiy O. I., Baylyk S. I. Beydyk O. O., Zaremba P. O., Ivanov L. O., Kotsan N. N., N. P. Krachylo, Malska M. P., Patiychuk V. O., Sokol T. T., Sorokin A. V. However, in spite of a sufficient number of theoretical material on the subject, in practice this issue is solved insufficient and needs further study.

The purpose of this article is to study the quality of the activity of hotel complex, as a structural component of the tourism industry in Ukraine and to examine the nature of the process of forming of the system of crisis management by enterprises of the tourism recreational complex and develop proposals for its implementation at present.

The main material. In connection with the worsening of crisis in the global, national and regional levels consistently observed negative changes and trends in the economic environment, are observed the importance of uncertainties and various risks is increasing. In turn, they give rise to crisis situations in enterprises of various kinds of activities, as it is evidenced by the decrease in the production of goods and services, loss of competitive positions in the market, reducing of qualified managerial staff and, in some cases, bankruptcy of enterprises. Hotel complex of Ukraine, to date yields, much inferior complexes in countries with more developed area of ​​tourism and recreational services, because of its obsolescence, as well as in moral and material composition.

Hotel economy is part of the economic complex of Ukraine, and thus it makes its contribution to improving of economic development, the strengthening of international cooperation and takes the position on the market of services for the formation of hotel product. However, unlike other services, hotel services require significant investment, the definition of which depends on factors that determine the demand for hotel product [1].

In the short term, the economic development of our country tourism in general and hotel sector in particular becomes important. Tourism industry is perspective, when there is an adequate approach. As for the rapid development of the services of this sector, it is able in the near future not only increase revenue to the state and local budgets, due to the influx of potential customers from Western and Central Europe. But also it would allow foreign investors to invest in the hotel industry of Ukraine, in order to obtain quick profits. After its tourism and hotel area is one of those areas of the world economy, where investment is likely to revolve.

Hotel economy is one of the components of the tourism industry. Material resources designed to accommodate tourists, is one of the first places in the formation of tourism infrastructure and quality of accommodation and related services affect the level of tourist service. Therefore, the hotel industry is developing rapidly, resulting in huge cash flows, including foreign exchange.

The domestic hotel industry is an integral part of the global hotel industry. This rapid pace of integration with the European standards is explained by geographical location of Ukraine, located in the heart of Europe, and equally rapid growth of Ukrainian business, which also activates the development of business tourism. Therefore, the immediate task is to increase the economic efficiency of the hotel sector including tourism industry in general [2].

The priority today is the gradual development of the domestic hotel industry, but due to lack of available funds in the state budget, and the unpleasantness of Ukraine in terms of foreign investors, this process is very slow.

This situation causes the need to find and implement successful hotel companies competing ways to attract potential customers and the successful continuation of existing cooperation. Beyond that fierce competition in the market forces eventually improve existing general principles of operation of hotel businesses. To maintain and expand their market positions these companies need to make significant efforts to improve the efficiency of business processes, seek additional opportunities to reduce costs, increase quality of service [3].

Analyzing the current state of hotel complex of the tourism industry in Ukraine, it should be noted that the main problem of this vector of development is high capacity that is not used in full.

Therefore, we believe that at the present stage, regardless of the form of ownership, an important direction of development it should be the creation of the concept and system of crisis management. In particular, as noted in studies of modern scholars, the concept of crisis management includes four blocks of problems [4]:

- The first block integrates issues related to management at different phases of cyclic manifestation of the crisis development;

- The second group of problems is related to the management areas or areas of activity, the functioning of object of government;

- The third block - procedural control problems: prediction and assessment of management of crisis situations, willingness to take risks and predicting its possible consequences;

- The fourth block - problems of socio-economic character behavior of enterprises on the market and human resource management.

Based on these problems, the main aspects of crisis management are:

- Analysis and forecasting of symptoms of the crisis;

- Development of the financial and economic mechanism of management of crises processes;

- Legal regulation of the crisis development;

- Management in conditions of a crisis or threat of crisis.

Given results of the study provided we propose to determine the basic problems of development of the tourism industry of Ukraine, namely [5]:

- Imperfection of legal and regulatory framework;

- Lack of effective national target programs of development of industries involved in the creation of tourism product;

- Discrepancy of tourism and recreation resort complex of Ukraine to international requirements and standards as others.

Thus, crisis management is characterized by the following features [5]:

1) the specificity of purpose, which is to preserve and restore the functioning of the business entity;

2) use in the process of implementation of anti-crisis measures specific tools and instruments, methods and controls that are accompanied by unconventional and creative solutions;

3) the need for appropriate organizational provision - namely, separation of specialist or team of specialists with crisis management;

4) the presence of significant resource constraints, especially financial, that in conditions of low financial activity and investment attractiveness significantly complicates the position of the entity in conditions of a crisis;

5) possible significant limitation in time and threatened to initiate bankruptcy proceedings;
6) the process of crisis management takes into consideration not only the external manifestations of crisis, but also the analysis of internal causes of its development, which will prevent the crisis in the future;

7) unstable and unpredictable crises lead to increased risk management decisions;
8) a significant need for increased need for information and analytical support of anti-crisis actions;

9) focus on reducing of possible costs.

Findings from the research and prospects for further research on this direction. Based on the study there are the following conclusions:

- Hotel Complex of Ukraine is characterized by large amounts of existing assets, but at the same time there is a real problem of inappropriate use of the capacity of hotels;

- Another disadvantage is that despite the annual increase in the number of tourists, and tourists who use by hotel services is one and the same mass of tourists, leading to the development of informal sector of hotel complex;

- at the same time it is positive, the annual increase in revenue of entities of hotel tourism industry in Ukraine, indicating a rapid increase in the quality and differentiation of given services.

Research of crisis management by tourism enterprises in order to ensure the development of the tourism recreational complex of Ukraine is very important and needs further study and development that will be the aim for further research.

Literature

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