Journal of Hospitality Financial Management: Volume 15, Issue 2

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Performance of the Global Lodging Industry - 2007
Chappell, James
According to the World Travel and Tourism Council (WTTC) estimates, travel and tourism should account for approximately 10.4% of Global Gross Domestic Product and create nearly 231 million jobs worldwide during 2007. This paper presents an analysis of the performance of the Global Lodging Industry during the year 2007. As such important lodging industry trends worldwide, including those in North America, Mainland Europe, United Kingdom, the Middle East, Africa and the Asia Pacific regions, are better understood.
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Accounting in Russia: Challenges for the Hospitality Stakeholders
Annaraud, Katerina
This paper explores the differences between the Russian and western accounting systems. As western hospitality companies enter the markets of the former Soviet Union this understanding will be imperative. Under the Soviet government the hospitality industry in Russia was very poorly developed. After the collapse of the U.S.S.R in 1991 many businesses in Russia including hotels and restaurants flourished but the accounting systems to support them remained antiquated or non existent. Unfortunately, the current Russian accounting system is still closely reflecting the Soviet accounting system. Russian accounting standards are very confusing for foreign investors, creditors, and managers who want to do business in Russia.
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Factors Affecting Return on Assets in the Korean Lodging Industry: A Preliminary Empirical Investigation
Youn, Hyewon; Gu, Zheng
This study investigates the factors that affect Korean lodging firms’ performance measured in terms of return on assets (ROA). Using the 2005 financial data of a sample of 112 publicly traded Korean lodging firms and a stepwise regression procedure, the study identified the ratio of earnings before interests, taxes, depreciation, and amortization to total liabilities and debt ratio as significant determinants of ROA. The estimated regression model was able to explain 56 percent of variation in ROA across the sample lodging firms. The two variables retained by the model suggest that to improve ROA, the Korean hotel industry must exert tight control over operating costs to raise the operating profit margin. In the meantime, Korean lodging firms should adopt a more conservative debt-financing policy.
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Small Hotel Financing in Sub-Saharan Africa - Evidence from Tanzania
Sharma, Amit
Small hospitality businesses such as hotels and restaurants are not only necessary for the development of these industries as whole but also have the potential of contributing to the economic development of sub-Saharan African nations. However, recent studies show that availability of financing remains a critical obstacle for such businesses in sub-Sahara region. This paper presents a descriptive analysis of evidence from Tanzania to highlight factors that are possibly leading to market failure for small hotel financing. Implications on policy interventions and industry practice are explored to counter such obstacles.
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