Peculiarities of the Hospitality Industry Development in Ukraine
Authors: Hromyk Oksana , Prykhod’ko Kseniia 
Published: December 2023

Topicality. The hospitality industry plays a significant role in solving the problems of bringing the national economy out of the crisis, contributing to its structural transformation, which is of exceptional importance for Ukraine nowadays. Despite the huge recreational potential, the Ukrainian market of hotel and restaurant services is significantly lower than the world market of the hospitality industry in terms of economic efficiency. The main problems of the hospitality industry development are insufficient amounts of investment in renovation and building of new establishments, an inadequately developed market for the provision of hospitality services, imperfect infrastructure, technological backwardness of the industry, low solvency of the population, and the use of environmentally hazardous raw materials. It is no coincidence that improvement of modern infrastructure and introduction of modern technologies in the field of hospitality is recognized as one of the priority areas of the national economy development. The martial law declaration has negatively affected the activity of hotel and restaurant business establishments in Ukraine. All this determines the indisputable relevance of studying main trends and problems of the development of Ukrainian hospitality industry in today’s conditions.
The aim of the article and research methods. The aim of the article is to analyze the current state and peculiarities of the hotel industry development in Ukraine. When conducting the research, general scientific research methods were used: comparison, generalization, analysis, synthesis and systematization, induction and deduction, tabular and graphic method, as well as scientific and theoretical developments of domestic and foreign scientists, informational materials of statistical and reference publications.
Results. The article analyzed the current state of the hospitality industry in Ukraine. The practical aspects of hotel and restaurant business functioning were disclosed. It was established that the military aggression of the enemy has a negative effect on the dynamics of the development and functioning of hotel and restaurant enterprises. A significant number of them are functional or have been partially repurposed. The dynamics of temporary accommodation and catering organization enterprises were analyzed as the main criterion for the development of hotel and restaurant services. It was established that a significant decrease of enterprises and a reduction in the number of employed workers in the hospitality industry occured in 2021. It was noted that the consumer price index in 2022 increased significantly due to the raising in production expenses of the hotel and restaurant business from 103.7 to 122.5 %. In 2022, CPI growth was 100.9% in January, and 103.7% in December. So, the main reasons for the increase of CPI are the rapid growth of the dollar currency and consumer prices, as well as the devaluation of the Ukrainian currency. The financial activity of hotel and restaurant business enterprises was characterized. In 2020, temporary accommodation and catering organization establishments suffered a loss of UAH 6.500 million. However, in 2021, a slight increase in profit could be observed, as UAH 7.003 million. Thus, in 2021, a slight increase in profit could be noticed – UAH 7.003 million. The profitability of enterprises in 2021 was 9 %. This indicates the adaptation of the hospitality industry as a promising direction.
Conclusions and discussion. So, in the course of the study, it was established that the hospitality industry is currently in unfavorable conditions, which are caused by the military aggression, which negatively affects the dynamics of the hotel and restaurant business development. In 2021, compared to 2020, there was a slight improvement in the financial result of the business, in accordance with the increase in income and profitability of temporary accommodation and catering organization establishments. However, with the aim of effective development and functioning of the hospitality industry, programs and projects of supporting the hotel and restaurant business are being implemented in the country with the assistance of international organizations.