“silk road” international university of tourism and cultural heritage



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Problems of hotel business in Uzbekistan and possible solutions

The purpose of the study - This study aims at evaluating, discussing major challenges faced by hotel industry globally and in Uzbekistan. Also, trying to find solutions for these problems according to the researches and surveys. In order to analyze the challenges, “Grand Samarkand Superior” hotel was taken as an example.



  1. Literature review

This chapter will review the literature on the problems and challenges most of the hotels around the world and these problems also concern Uzbekistan. It will address research questions, potential causes of problems in the industry, and good strategies that may be useful and available to managers, practitioners, and employers in the hospitality and hotel industry in Uzbekistan.


2.1.
The role of the economy in Uzbekistan’s economy - When the country's economy is at a high level, business trips usually increase. The percentage of hotel occupancy and the number of seats at the reception increases, which leads to a higher level of profit. Conversely, business travel slows down when the economy is low, which leads to a decrease in the percentage of occupancy and the number of racks. Discounts are offered to increase occupancy, which leads to lower revenues and lower profits. For hotels and restaurants, economics always plays a role in determining the level of both personal and business expenses. For places with intensive tourism, this is even more true. In the tourism and hotel sectors, the ups and downs of global events have an obvious impact on international spending, making them one of the most serious challenges facing the hospitality and restaurant industry. As the demand for housing and air tickets decreases, both total income and profit decrease. Prices are reduced to try to fill empty rooms and flights, and raising rates for subsequent compensation of lost profits is not an easy matter. But the impact of globalization is also felt in the catering sector. Restaurants now have a wider selection of suppliers to make their menus more attractive while getting ingredients and supplies at a lower price. At the same time, imports from other countries come with their own set of risks, especially if there is a widely publicized incident involving pollution, unfair labor practices, toxic materials used in production, and other problems that may cause concern to media-savvy consumers. While it may be easier to find cheaper suppliers in a global economy, customers are increasingly selective about spending according to their changing values. As for the search for talent, the tightening of immigration rules since 2001 has made it more difficult for the hotel sector to replenish the dwindling local talent pool with workers from other countries. Governments of all countries are strongly encouraged to amend immigration and work visa laws to help the hotel sector better fill vacant jobs with foreign workers. However, these changes will undoubtedly take place slowly. At the same time, employers should make sure that they comply with existing laws when hiring employees with documents [CITATION Joh00 \l 1033 ].

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