Chernikova J.O., Romanenko T.L.

DonNUET named after Mikhail Tugan - Baranovsky

Marketing and international investment of hotels and

restaurant business

Marketing is spacious public work in the sphere of market and goods, services, valuable papers, with the aim of stimulation selling goods, development and exchange, receiving profit.

Originally this idea appeared abroad, but in the process of cooperation of Ukraine with other countries it became an integral past of the economy of the state. Today our country seeks to develop in different ways. To achieve this it is necessary to consolidate international relations and in particular– investments in different spheres of production.

         One of the most attractive spheres is restaurant and hotel business. Foundation for its development is very spacious but there are many reasons which make this business be in shadow market. Experts say that with the help of marketologists (making out of goods, internal and external advertising, price strategy) prosperity approach of course will be but foreign investments need definite quantity of services.

         First – we need stability of the country – this is the factor which influences all spheres of national economy and all processes taking place in the country depend on it. Politics and power regulate all industry. At present the political situation in Ukraine is very difficult and many investors are scared of this because it creates big risk.

Second – to invest in hotel and restaurant complex it is necessary to organize the public work of Ukrainian companies very openly and actively and many of enterprises are scared to invest money in business which is compensated for a long time. It is a natural process not only in Ukraine but all over the world but in this country difficult political situation gives the lack of stability. In order to increase the volume of  investments in hotel and restaurant business the state should give “tax holidays” to companies which invest money, abolish or diminish VAT on the imported equipment from foreign countries, abolish tax on the land ( temporary ) where the construction is taking place.

Third – development of this business must be based on the real finance possibilities and tourism requirements in every city. It is really necessary to develop this branch of industry but at the same time to take into account the historic heritage of every region and city, economic potential and the possibility to build the network of hotels and restaurants in the shortest possible time. Nowadays tourism in Ukraine remains on the same low level as hotel and restaurant business. Southern and Western Ukraine where climatic conditions create favorable environment for rest have huge potential for better development. But at the same time it is necessary to attract foreign visitors to other cities and regions which have not less interesting and attractive places for visiting.

Forth – it is necessary to build not only 5-stars hotels which are too expensive but 3- and 4-stars hotels for middle-class tourists. So, demand on hotel service concentrates among four main categories of clients. The first group is famous businessmen, politicians, stars of fashion, films and music whose status doesn’t let them stay in the hotels lower then 4*-5*. The second group is middle level managers and directors of foreign and native companies. Their demands is less strict– they can stay in the 3*, 4*, 5* rooms. Vital importance for them is the level of service. They can allow to pay from 120-250USD. The third group comprises native employees who travel on business more and more often. As their financial opportunities are limited (they can allow to pay from 70 to 200UAH) they usually choose not very expensive 2*-3* hotels. To the fourth group belong native and foreign tourists. As for foreigners they can choose different kinds of hotels, beginning from “lux” in 3* hotel to rooms in 5* hotels. But the share of foreign tourists is about 40% in the total value. And the most part is taken by our native people who try to choose less expensive hotels. At the same time 60% of tourists are students and schoolchildren who usually stay in hostels, rest camps and cheap hotels.

 

Fifths - low class restaurants of “fast-food” type prevail in Ukraine. Very often food stuffs is dangerous to people’s health in such restaurants though the prices there are very low. At the same time one can find very expensive restaurants, where the quality of food and service is lagging behind very prices. Some years ago only rich people visited restaurants but now more and more clients with middle level of revenue have business lunch or festive party in such establishments. Therefore it is necessary to increase the number of restaurants where the level of prices, service and food quality will make good competition to foreign representatives of restaurant business. 

There is powerful but undeveloped base for developing restaurant and hotel business in Ukraine and foreign investments play very important role for this business which depend on informing people about possibilities of Ukraine. This is the urgent and important work of marketing because such large investments firms like Marriot, Four Seasons, Rival Hotels have invested money. According to calculations of specialists - 5% of expenses costs buying for leasing land, 67% of expenses costs construction, 21% - of expenses costs furniture and equipment, 7%- reward for counsultants, designers, architects. That’s why skills of advertising giving information for investors is very serious and hard task.

Ukraine a large arena for business and we need to create conditions for its development.