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The hospitality market in Ukraine: War challenges and restoration possibilities

Authors :
Fedir Zhuravka
Natalia Nebaba
Olena Yudina
Svitlana Haponenko
Hanna Filatova
Source :
Innovative Marketing. 19:140-150
Publication Year :
2023
Publisher :
LLC CPC Business Perspectives, 2023.

Abstract

The Crimea annexation and the military aggression of the Russian Federation, which first began in some territories of the Donetsk and Luhansk regions in 2014 and escalated into a full-scale war on February 24, 2022, resulted in heavy losses of life and a humanitarian crisis, exacerbating economic, political and social instability. To restore Ukraine’s economy, all businesses, including hospitality (hotel and restaurant business) sector, should continue functioning, though it is a challenging but crucial task. The paper aims to analyze the state of the hospitality market in the current war conditions in Ukraine and assess the possibilities of its restoration and development. An online survey was conducted among 282 representatives of the hospitality business in Kyiv, Sumy, Chernihiv, Dnipropetrovsk, Kharkiv, Poltava, Ivano-Frankivsk, Lviv, Ternopil, and Zakarpattia regions. Based on the results, in 2022, almost 23% of hospitality industry representatives suspended their activities, and 54% functioned only partially. Many surveyed hotels and restaurants (36%) have gradually changed and adapted their business strategies. For more than half of the hospitality representatives, expenses increased by 20-50%, and profits dropped by more than 20%. The critical consequences of the full-scale war for the Ukrainian hospitality market are as follows: disruption of supply chains, reduction in consumers’ purchasing power, changes in consumer demand, shortage of certain types of products, shortage of personnel, and business unprofitability.

Details

ISSN :
18166326 and 18142427
Volume :
19
Database :
OpenAIRE
Journal :
Innovative Marketing
Accession number :
edsair.doi...........92843d5e0c9fc8a51db2df0f32035f99
Full Text :
https://doi.org/10.21511/im.19(1).2023.12