ISSN 0798 1015

Vol. 40(Issue 43) Year 2019. Page 14

Public-private partnership in the field of tourism and hotel business in Russia and the problems of modernization

Alianza público-privada en el campo ruso del turismo y de la hotelería y sus problemas de modernización

IBIATOV, Fail M. 1; ZOTOV, Vladimir B. 2; LEBEDEVA, Yulia A. 3; CHERKASOVA Marina A. 4 & KHMELCHENKO Elena G. 5

Received:08/02/2019 • Approved: 12/12/2019 • Published 20/12/2019

Contents

1. Introduction

2. Literature review

3. Materials and methods

4. Discussion

5. Results

6. Conclusion

7. Bibliographic references

1. Introduction

Tourism, being both a social and economic phenomenon, can positively affect the structure of the economy. On the one hand, its development stimulates production growth in adjacent sectors of the economy (trade, transport, agriculture, production of consumer goods, etc.), on the other, it has a significant impact on employment. The increased attention to public-private partnership at the present stage of Russia's development is explained by the increased need of the Russian economy for support from the state against the background of the global financial crisis. The authors analyze the state's search for an effective alternative to privatization of state property and increase the investment attractiveness of the regions.

In modern conditions, hotels are forced to fight for "a place in the sun", and if possible, they should strive to expand their business. Recently, due to the recent economic recession in the developed countries of the world, the competitive struggle in the hospitality industry has sharply intensified (Shmat’ko L., 2010).

Survival and growth of business activity are the most important areas of activity of hotel enterprises in all countries of the world. Some of them have already realized this fact and are taking the necessary measures to secure a stable future for themselves by meeting the changing needs of clients and encouraging repeated requests for the provision of hotel services. Vigorous changes in the field of telecommunications, media and related technologies have contributed to the growth of customer expectations regarding the quality of service, professionalism of workers and the diversity of hotel services offered (Latfullin, G., Raichenko, A., 2016). Therefore, it is impossible to count on the fact that customers will put up with deliberately poor service. As part of its marketing policy, hotels must inform a potential client about the level and quality of services that they can count on, and then ensure that the services they offer match the stated level. Many successful hotel companies have realized from their own experience that they cannot afford to ignore emerging markets, not to use new approaches to management and not to introduce advanced technologies (Chuev, I., Panchenko, T., Novikov, V., Konnova, O., Iraeva, N., Karabulatova, I., 2016).

The main tasks in the hospitality industry are the creation of competitive advantages and competitiveness, the creation of a stable clientele through the ability to find a client, the search and creation of new ways of development, the constant updating of their own policies, taking into account the dynamically developing market of hotel services.

According to WTO forecasts, Russia is among the countries in which the highest rates of tourism development are predicted at the beginning of the twenty-first century with state support of this industry. According to forecasts, by 2020 Russia will enter the top ten countries for receiving tourists (47.1 million people per year, which is 2.9% - the share in the global flow of tourists) and for tourists leaving the country , 5 million people, which is 1.9% - share in the global flow of tourists). These figures do not include the volume of domestic tourism, which is many times greater than the inbound and outbound traffic (World Tourism Organization. Statistical data: site, 2016).

Tourism planning can take place at the international, national and regional levels. At the international level, planning is carried out in limited quantities, for example, by the World Tourism Organization, the EU, and regional tourism organizations. Unlike other levels, this is controlled and enforced. At the national level, tourism planning includes plans for the development of tourism for the country as a whole, but they should also take into account the specifics of individual regions. At the regional level, tourism development plans are more detailed and specific than national ones, and differ from region to region.

Globalization and concentration of the hotel business are manifested in the creation of large corporations and hotel chains. This approach allows hotel enterprises to regroup and attract additional resources to grow their business. Hotel enterprises are concentrated through the creation of unions or associations that do not violate their legal and economic independence, but allow conducting joint marketing programs, conducting research activities, creating a unified system of training and retraining of personnel.

World practice convincingly proves that investments in the hospitality industry are comparable in their returns to investments in oil production. The economic analysis of the hotel sector indicates the effectiveness of investments in hotel chains, and not in individual hotel facilities. In world practice, there are two main types of hotel chains: integrated chains, which are created from homogeneous units, and a hotel consortium, which brings together independent hotels.

2. Literature review

The trends in the development of the services sector, as well as the methods for studying them, are devoted to the works of E.M. Agababyan, G.P. Gvozdeva, S.Yu. Weinstein, E.N. Zhiltsov, H. Lampert, V.D. Markova, R. Mordik, A.S. Novoselov, R. Russell, B. Render, L.Yu. Rudy, A.Z. Seleznev, M.V. Udaltsova, K. Haksever, and others. The studies of these authors contain theoretical ideas and methodological approaches to solving issues of managing the services sector in a competitive environment.

The work of modern Russian researchers is devoted to the issues of improving the efficiency of management of enterprises in the hotel services market:

M.V. Kobyak, K.S. Goryainov, R.I. Daood, S.A. Mikhailov, A.V. Ksenofontov, I.V. Nikiforov, M.G. Amirova, O.A. Pekarskaya, G.M. Amosov and others. However, the research does not describe in detail and fully the factors that determine the development of the hotel services market and hotel enterprises; the issue of modeling the strategic management of the hotel services market organizations with regard to the efficiency of their resources and resource potential is not sufficiently developed.

The main provisions that reveal the nature and content of resources and resource potential, as well as practical management issues and their evaluation, are incorporated in the works of such scientists as I. Ansoff, P. Drucker, J. Peters, M. Porter, A.N. Kovalev, G. Kleiner, K.M. Misko, L.G. Okorokova, A.M. Rumyantsev, G.F. Ryabova, A.N. Solomatin, A.V. Trigubko, A.G. Fonotov, T.G. Khramova, A.N. Chaplin and others. Their research is related to the study of patterns of formation and use of resources and the potential of an organization, region or country, but above all industrial and production potential. In general, the reviewed studies have poorly developed methods for evaluating the effectiveness use of resources of enterprises in the service sector, including organizations of the market of hotel services (Kobyak, M., 2016).

The dynamism of changes in the current situation on the market dictates actions ahead of the curve, and hotel companies need new methods of development and resource management to survive and grow (Ibiatov, F., 2018).

The hospitality industry has historically formed and grown from the accommodation sector, represented by various types of hotel enterprises. A hotel is an enterprise that provides people who are outside the home with a range of services, the most important of which (complex) in equal degrees are accommodation and food services. A modern hotel enterprise provides consumers with not only accommodation and catering services, but also a wide range of communication services, entertainment, excursion services, medical, health and sports services, beauty services, etc (Saenko, N., Sozinova, A., Karabulatova, I., Akhmetov, I., Mamatelashvili, O., Pismennaya, E., 2016). In fact, hotel enterprises in the structure of the tourism and hospitality industry perform key functions, as they form and offer consumers an expanded hotel product, in the formation and promotion of which all sectors and elements of the tourism industry are involved ma and hospitality (Tarasenok, A., Kabushkin, N. and others, 2011).

To understand the better organization of the quality of services in the field of tourism and hotel business, it is necessary to understand the cultural distance between "our" and "strangers" (Luchinskaya, E., Karabulatova, I., Tkhorik, V., Zelenskaya, V., Golubtsov, S., 2018), so that the client feels comfortable with himself and feels a desire to return again. At the same time, we should understand that the provision of such a service should be implemented by private enterprise, but the quality should be controlled by the state. since this cluster has a direct relationship to the formation of the internal and external image of the country, region and specific place.

In world practice, there are two main types of hotel chains: integrated, which are created from homogeneous units, and the hotel consortium, which brings together independent hotels. Integrated hotel chains produce and sell a homogeneous product. They are managed directly or indirectly through the franchise system or under a management contract. Each year, the percentage of hotel occupancy increases (except for the crisis years 2008–2009 and 2011–2013), and by 2016 the world average reached 65–75% (The largest hotel chains in the world. Statistics and indicators, 2018).

Analysts highlight the following advantages of building a hotel chain (Amosova, G., 2013):

1. A single booking system allows you to guide customers along the entire route and maximize load.

2. A single database makes it possible to form convenient routes, carry out information support for personnel, ensure high quality service.

3. The overall financial system allows for large-scale advertising programs, not only in foreign but also in domestic markets. The most noticeable advertising campaigns of corporations "Marriott" and "Sheraton".

4. Access to new technologies and technology. This allows repair work without closing the hotel and disturbing its guests. So it was, for example, in hotels “Radisson Slavyanskaya”, “Sheraton Palace” and “Marriott Tverskaya”.

5. The unified strategic marketing provided for a certain brand allows to save money on independent global research.

6. Informational support. Inclusion in the well-known hotel system gives the hotel the opportunity to be represented in all its directories, catalogs, reservation systems and websites.

7. Personnel training, professional development, the possibility of sharing professional experience.

8. The pricing policy of hotels in international hotel systems is very diverse and highly flexible.

Consider the international experience of state support of the hospitality industry as one of the most powerful levers of influence on the development of the market hotel services (Measures to support the hotel industry in foreign countries, 2016):

- In Turkey, the hotel and tourist complex is subsidized by the state for 40%, which allows you to set competitive prices. In addition, it is taken convenient for tourists, the free circulation of foreign currency, along with the local currency;

- in Israel, up to 30% of investments in the hotel sector are returned to the investor by the state in the form of direct deductions and tax benefits (subject to certain amounts of tourist attraction);

- in Mexico, created a free zone (free from tax) around the resorts of Acapulco and Cancun;

- Spain adopted a plan to increase the competitiveness of the Spanish tourist product, where reconstruction and modernization of hotels in the main resort areas, the development of rural tourism in areas without beaches (Valencia). Tenerife Island is declared a free zone, which not only reduces the prices of tourist services (including hotels), but also affects the cost of other products, in particular gasoline; the government is investing large sums in the development of the island’s infrastructure;

- Morocco has adopted a tourism development plan, involving direct budget investments (20–40%) in priority development projects (large parks entertainment, hotel complexes, etc.);

- in Indonesia, the island of Bali is recognized as a free economic zone, which reduces the price of the tourist offer. It also practiced direct budget investment in infrastructure development.

The composition of the determinants that influence the formation and development of the tourist and hotel services market, complemented by environmental, institutional and attractiveness factors, allows you to take into account the specifics of the hotel organizations and highlight the factors that have greatest impact on the performance of hotel enterprises.

3. Materials and methods

The authors used a comprehensive methodology focusing on system, structural and process approaches as basic scientific methods of cognition in the study of PPP issues at the Federal and regional levels. The work with primary sources and statistical base was focused with the use of methods of comparative analysis and synthesis.

Modern scientific research resource assessments are concentrated mainly in the field of industrial production. The management of the resources of organizations in the service industry as a factor that largely determines the quality and efficiency of organizations, in particular, the hotel services market, has not been studied deeply enough.

The theoretical and empirical basis of the study was the works of foreign and domestic scientists on the formation, management and use of resources of the organization, the position of the market economy theories, management of social and economic systems, strategic management, marketing, scientific works of domestic and foreign scientists and specialists in the field of enterprise management. hotel complex, as well as research in the field of organizational culture, organizational behavior, organizational theory, personnel management, labor psychology, reputatinology, management, intercultural communications.

The informational basis of the study was the materials of scientific conferences; concepts outlined in modern scientific research; periodical materials; regulatory, methodological and legislative acts of state authorities. The official sources of the Federal State Statistics Service, regional authorities, documents of the reference and legal systems “Consultant Plus” and “Garant”, the official statements of hotel enterprises, resources of the global information network Internet, publications in specialized industry publications.

The methods and techniques of system, logical and economic analysis, the synthesis of management decisions and approaches were used as scientific tools (Karepova, S., Karabulatova, I., Novikov, V., Klemovitsky, S., Stratan, D., Perova, A., 2016). The study is based on elements of economic and mathematical modeling, the method of expert assessments. To justify put forward in theses of the theses were applied systematic, competence, process, synergistic, adaptive and other approaches, as well as the principles of integration, consistency, interconnectedness, efficiency, uniqueness, measurability etc.

4. Discussion

The researchers recognize that public-private partnership is a mechanism for coordinating and regulating the interests of the state and business, ensuring mutually beneficial cooperation, the purpose of which is to ensure and implement programs and projects of socio-economic development of regions (Romanyuk, A., Kovalchuk, A., 2015). This leads to improving the quality of life of the population and achieving the goals of public administration to solve socially important problems on mutually beneficial terms.

Despite a clear definition of the subject of PPP abroad, however, as in Russia, there is no generally accepted interpretation of this phenomenon of economic life. For example, in the United States, PPP is understood as a contractual agreement between the state and a private company, allowing the latter to participate in public ownership in a certain way to a greater extent than the existing practice. Such an agreement usually involves the existence of a contract between the relevant government Agency and a private company, the subject of which is the reconstruction, construction and (or) operation, management, etc. (Varnavsky, V., 2009).

European countries give their definitions of PPP. In the UK, where PPP has become the most widespread, this form of management is interpreted as a key element of the government's strategy to provide modern, high-quality public services and improve the competitiveness of the country (Sivakova, S. Yu., 2015).

In Russia, PPP is a relatively new form of interaction between the state and business aimed at solving problems that are important for society (Maslova, S., Yushkov, A., 2017). Cooperation and interaction of authorities and business structures is carried out not only in order to achieve the goals, but also under the condition of proportional distribution of risks.

Jakovenko O. V. and Feraru G.S. write that the main problems of development of regional tourism in Russia are: 1) poorly developed material base of the tourism industry; 2) narrow the range of services the entertainment industry, as a result of what is their high cost; 3) lack of promotion of regional tourist product on the domestic (regional) and Russian markets; 4) the lack of generally accepted certification system of objects to quickly assess the quality of services provided; 5) non-conforming to the requirements and expectations of tourists qualification of personnel of tourism facilities and its infrastructure (Jakovenko, O. V., Feraru, G. S., 2016).

These problems are based on the undeveloped principles of interaction between the state and private business in Russia (Kovalev, A.N., 2004).

The hotel industry is the material and technical base of the industry and determines the type, features and quality of the tourist product. The hospitality industry consists of various means of collective and individual accommodation: hotels, hotels, motels, youth hostels and hostels, apartments, tourist shelters, as well as the private sector, participating in the accommodation of tourists. The processes occurring in the tourism sector as a whole are reflected in the main indicators of the functioning of hotels, and the latter determine the indicators of tourist activity in this area. Construction of new hotels can significantly increase the attractiveness of the tourist destination by increasing the flow of visitors, and vice versa, an outdated hotel base can cause a decline in tourist activity in the region and reduce its competitiveness in the tourist market.

These problems also occur in other countries. Thus, Indian authors expand public-private partnership in tourism and hospitality in the context of international medical tourism in India (Sulakshana Nandi Vandana, Prasad Deepika Josh [...], Allam Ashra, 2018). We think that this division is quite conditional.

Our research aspect does not cover all areas of the hotel and tourism business. First of all, we analyze data on cultural and landscape areas. This is due to the fact that from the point of view of state regulation of the development of the hospitality and tourism industry, PPP is aimed at attracting private companies to implement resource - and capital-intensive infrastructure projects.

Efficiency of use of budgetary funds at PPP on in comparison with direct budget financing is achieved by attraction of extra-budgetary funds in exchange for transfer to the investor of the right to commercial use of object till the moment of recoupment and increase of efficiency of control over its operation (Kovalev, A.N., 2004; Sorokina A.V., 2009; Sulakshana Nandi Vandana, Prasad Deepika Josh [...], Allam Ashra, 2018; Vargas, Libardo C., Leyton,, Edwin O.,  Garcia, Martha L.  & González, Sandra L., 2019). This direction is actively developing in many countries (Measures to support the hotel industry in foreign countries, 2013).

The market of hotel services in Russia is one of the fastest and most successfully developing; it grows annually by 15–20%. This growth is due to the increase in the number of high-end hotels - 4 stars and 5 stars, however, two- and three-star hotels remain the most popular. According to “Market Analytica” research, there are currently 13,000 hotel rooms in Russia that meet international standards; 10 thousand of them are in Moscow, another 1.5 thousand in St. Petersburg, and only 1.5 thousand in other cities of Russia (Rogachev, A.F., 2005).

Risk sharing between private business and government, as the rule creates a lever effect, which in turn allows attract debt financing from financial markets (Vargas, Libardo C., Leyton, Edwin O., Garcia, Martha L.  & González, Sandra L., 2019). Last, they need stable long-term projects that ultimately provide stable revenue streams.

5. Results

From the point of view of the fundamental economy, the hotel business is an economic complex, the development of which is largely due to world economic processes and relations than to internal causes. The hotel business is also an important catalyst for the economic growth of many rapidly developing countries, since it acts as a channel for the redistribution of the gross national product between countries, which is not accompanied by export (import) of goods and services.

Now in Russia more than ever actual construction of new hotels, which should gradually oust the old fund. High hopes are pinned on the creation and development of tourist and recreational special economic zones. Two such zones will be created on Lake Baikal (in Buryatia and the Irkutsk Region), as well as in Altai and the North Caucasus (The lack of personnel is the main problem of the hotel business in Russia, 2016).

For 2010–2014 The number of hotel facilities in Russia increased by 24.3% and by the end of 2014 amounted to 9,780 hotels and similar accommodation facilities (Market analysis of hotel services in Russia in 2010–2014, forecast for 2015–2019 (Litvinova, 2014).

Despite the crisis, international hotel brands are actively developing the Russian market: in 2014, 37 new hotels opened in the country international operators. The total number of such hotels in the country has reached 137, and according to the announced plans, by 2020 this number should double (Savenkova, 2016).

Such a high level of activity of Russian and foreign networks is explained by the greater stability and flexibility of the hotel services market. The hotel market is faster than other segments of the real estate market recovering from the crisis, thereby attracting more and more investors. A number of investors have even announced that their office projects will be redesigned into hotels.

Currently, the key trends in the development of the hotel business in Russia include:

1. Extension of the interests of the hotel business to products and services previously provided by enterprises of other industries (for example, catering, leisure, entertainment, exhibition activities, etc.);

2. The development of the democratization of the hotel industry, contributing to the increase in the availability of hotel services for the mass consumer;

3. Strengthening the specialization of the hotel business, allowing more clearly to focus on certain segments of consumers, taking into account various features;

4. Globalization and concentration of the hotel business;

5. Personification and individualization of services, full concentration on the needs and needs of customers;

6. Formation of international hotel chains;

7. Development of a network of small enterprises;

8. The widespread introduction of new means of communication and information technology, allowing for deep and systematic economic diagnostics;

9. The introduction of new technologies in the business strategy of hotel enterprises, the widespread use of the Internet to promote hotel products and services;

10. The influx of investors in the hotel business, the gradual saturation of residential, office and warehouse real estate segments;

11. Accelerated development of the hotel real estate segment in the regions;

12. Access to the hotel market of investors who are not related to the hotel business;

13. Increase the attractiveness of multifunctional objects for investors;

14. Consolidation of hotel business.

Thus, the integrated set of resources for organizing the tourist and hotel services market, in our opinion, includes “classical” resources (human, material, technical and financial), resources that modern researchers allocate (organizational, managerial, technological, information and communication), as well as territorial and reputational. The integrated set of resources is accumulated from the resources of the organization, which are closely interrelated and interdependent, is formed taking into account the specifics of the enterprise to achieve one or several goals, while the total performance of the aggregate is higher than the simple sum of the elements.

6. Conclusion

Alternatives or opportunities to use those or other resources and reserves to improve the efficiency of their use are the potential of the enterprise.   In economics, there is still no clear definition of the concept “potential of an organization (firm, enterprise)”. The basic term for the term “potential” is the term “potentia” - a latent opportunity, aptitude, a force that can manifest itself under certain conditions.

Each market enterprise carries out its business activities in an organizational environment. The organizational environment is the “habitat” of a firm, which imposes restrictions on its activities, threatening its existence and providing opportunities for development.

It is necessary to assess the relations between the various forces that influence the organization, first of all, to monitor changes in the external environment, weighing political, economic, social and technological aspects, as well as take into account the globalization impact on the enterprise and its implications for the hotel. To more accurately determine the effects of environmental influences are used specific analytical methods, for example, historical analysis, scenarios, etc.

It is also necessary to systematically overestimate the relevance of the environment arising from the competition and the decisive forces operating in the immediate environment of the enterprise, and the degree and cause of importance and, finally, analyze the competitive position of the organization. Identification of a competitive position involves the analysis of the strategic group in the industry, the study of market segmentation and product attractiveness.

Management of modern organizations should be problem-oriented and rely on resource management, look for sources of resource potential development not only in the external environment, but also in improving the internal environment, organizational culture and business reputation. Often, people in an organization with proper policy of motivation, improvement of communication and the establishment of coordination links give greater impetus to development than attracting human resources from outside or dumping competitors.

The modern economic environment determines the strategic behavior of the company, which must be formed so that the organization does not only existed on the market, but also developed.

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1. Candidate of Historical Sciences Associate Professor at the Department of State and Municipal Administration, State University of Management, Moscow, Russia, Radogost2000@mail.ru

2. Doctor of Economic Sciences, Professor, Head of the Department of State and Municipal Administration, State University of Management, Moscow, Russia

3. Candidate of Economic Sciences, Associate Professor at the Department of State and Municipal Administration, State University of Management, Moscow, Russia

4. Doctor of Philosophy, Professor at the Department of State and Municipal Administration, State University of Management, Moscow, Russia

5. Candidate of Biological Sciences, Associate Professor, Department of State and Municipal Administration, State University of Management, Moscow, Russia