International Sanctions and Russia's Hotel Industry: The Impact on Business and Coping Mechanisms of Hoteliers

Tourism Planning & Development 14(3), 430-441

20 Pages Posted: 26 May 2017

See all articles by Stanislav Hristov Ivanov

Stanislav Hristov Ivanov

Zangador; Zangador Research institute; Varna University of Management (VUM)

Liliia Sypchenko

Independent

Craig Webster

Ball State University

Date Written: May 26, 2017

Abstract

This research aims at evaluating the impacts of the international sanctions on Russia’s hotel industry and the action undertaken by the hoteliers to mitigate the negative impacts of the sanctions. The sample includes 103 hotel managers from 11 popular tourist destinations in the Russian Federation. Mann-Whitney U-test, Kruskal-Wallis χ2 test and t-test are used to analyse differences in respondents’ answers by category, size, location, and chain affiliation of their properties. The findings show that hoteliers use different tactics to counteract the economic shocks to their businesses – mostly by cutting costs and increasing their marketing efforts. The findings further indicate that not all hotels experience the same shocks and that they therefore employ different tactics in response to the economic shocks experienced. This is the first research paper that measures the impact of the international sanctions on Russia’s hotel industry. The paper assesses the impact on microlevel – from the perspective of hotel managers.

Keywords: Russia, sanctions, politics, impacts on tourism, hotels, political instability

Suggested Citation

Ivanov, Stanislav Hristov and Ivanov, Stanislav Hristov and Sypchenko, Liliia and Webster, Craig, International Sanctions and Russia's Hotel Industry: The Impact on Business and Coping Mechanisms of Hoteliers (May 26, 2017). Tourism Planning & Development 14(3), 430-441, Available at SSRN: https://ssrn.com/abstract=2975268

Stanislav Hristov Ivanov (Contact Author)

Zangador ( email )

Varna, 9010
Bulgaria

HOME PAGE: http://www.zangador.eu

Zangador Research institute

Varna, 9010
Bulgaria

HOME PAGE: http://www.zangador.institute/

Varna University of Management (VUM) ( email )

13 Oborishte Street
Varna, 9000
Bulgaria
+359 898 680713 (Phone)

HOME PAGE: http://www.vumk.eu

Liliia Sypchenko

Independent ( email )

Craig Webster

Ball State University ( email )

2000 W. University Avenue
Muncie, IN 47306
United States

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