Evaluation of the Potential Consequences of the COVID-19 Pandemic on the Exacerbation of Corporate Crises within the Hotel Industry in the Touristic Region Banska Bystrica in Slovakia
Renáta Stanley - University of Economics in Bratislava, Faculty of Economic Informatics, Department of Accountancy and
Auditing, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic
Renáta Pakšiová - University of Economics in Bratislava, Faculty of Economic Informatics, Department of Accountancy and
Auditing, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic
DOI: https://doi.org/10.31410/tmt.2023-2024.365
Renáta Stanley - University of Economics in Bratislava, Faculty of Economic Informatics, Department of Accountancy and
Auditing, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic
Renáta Pakšiová - University of Economics in Bratislava, Faculty of Economic Informatics, Department of Accountancy and
Auditing, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic
DOI: https://doi.org/10.31410/tmt.2023-2024.365
8th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2023/2024, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-81-3 ; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: This chapter aims to examine the companies in crisis operating in the hotel industry in the Banska Bystrica Region in Slovakia, which have encountered financial difficulties and the possible consequences of the pandemic COVID-19 on their financial situation. For the research of companies in crisis, there were data obtained from a publicly available online state resource for the monitored period of 2018-2020. The hotel, hospitality and tourism industries are generally considered to be the most significantly affected by COVID-19. Many companies had their operations temporarily closed and some were unable to reopen. Several companies in this sector have thus fallen into crisis. Companies in crisis refer to those that are in bankruptcy or at risk of bankruptcy. To identify companies in crisis, the authors conducted a financial analysis of the financial statements of selected companies, which are presented in this chapter.
Keywords: Companies in crises; Financial analysis; COVID-19; Financial indicators
REFERENCES
Act No. 358/2015 Coll. on the Regulation of Certain Relations in the Field of State Aid and Minimum Aid and on Amendments to Certain Acts (Act on State Aid). https://www.slov-lex. sk/pravne-predpisy/SK/ZZ/2015/358/20160101.
Act No. 431/2002 Coll. on Accounting, as amended. https://www.slov-lex.sk/pravne-predpisy/ SK/ZZ/2002/431/20230622
Act No. 513/1991 Coll., Commercial Code, as amended. https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/1991/513/20230201.html.
Act No. 7/2005 Coll. on Bankruptcy and Restructuring, as amended. https://www.slov-lex.sk/ pravne-predpisy/SK/ZZ/2005/7/20230801.
Act No. 91/2010 Coll. on the Promotion of Tourism, as amended. https://www.slov-lex.sk/ pravne-predpisy/SK/ZZ/2010/91/20201128.html
Aldao, C., Blasco, D., & Espallargas, M. (2022). Lessons from COVID-19 for the future: destination crisis management, tourist behaviour and tourism industry trends. Journal of Tourism Futures. https://doi.org/10.1108/jtf-02-2022-0059.
Anguera-Torrell, O., Aznar-Alarcón, J., & Vives-Perez, J. (2020). COVID-19: hotel industry response to the pandemic evolution and to the public sector economic measures. Tourism Recreation Research, 46(2), 148-157. https://doi.org/10.1080/02508281.2020.1826225
Bello, M., & Bello, Y. (2021). Consequences of COVID-19 pandemic on hospitality industry: the Nigeria experience. International Journal of Research and Innovation in Social Science, 05(01), 422-425. https://doi.org/10.47772/ijriss.2021.5119
Cepni, O., Dogru, T., & Özdemir, Ö. (2022). The contagion effect of COVID-19-induced uncertainty on us tourism sector: evidence from time-varying granger causality test. Tourism Economics, 29(4), 906-928. https://doi.org/10.1177/13548166221077633
Chapman, C., Miller, D., & Salley, G. (2021). Social disruption of the tourism and hospitality industries: implications for post-covid-19 pandemic recovery. Worldwide Hospitality and Tourism Themes, 13(3), 312-323. https://doi.org/10.1108/whatt-02-2021-0038
Dauxert, T., & Bonometti, M. (2022). From Surviving to Thriving: The New Face of Revenue Management Strategies in A Crisis Era. Proceedings of the 2nd International Joint Conference on Hospitality and Tourism, IJCHT 2022, 6-7 October 2022, Singaraja, Bali, Indonesia. https://doi.org/10.4108/eai.6-10-2022.2325692
Davahli, M., Karwowski, W., Sönmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: current topics and research methods. International Journal of Environmental Research and Public Health, 17(20), 7366. https://doi. org/10.3390/ijerph17207366
DEMİR, M., DEMİR, Ş. Ş., DALGIÇ, A., & ERGEN, F. D. (2021). Impact of COVID-19 pandemic on the tourism industry: An evaluation from the hotel managers' perspective. Journal of Tourism Theory and Research, 7(1), 44-57. https://doi.org/10.24288/jttr.857610
Dhae, Y., & Neno, M. (2022). Exploring how the hotel businesses faced COVID-19 case study: hotel businesses in east nusa tenggara province Indonesia. https://doi.org/10.4108/ eai.25-11-2021.2319356
Farhangi, A., Huang, A., & Guo, Z. (2022). A Novel Deep Learning Model For Hotel Demand and Revenue Prediction amid COVID-19. Proceedings of the Annual Hawaii International Conference on System Sciences. https://doi.org/10.24251/hicss.2022.217
Finstat. (2023). Database of Financial statements of companies in Slovakia. https://finstat.sk/.
Hoang, A. T., Sandro Nižetić, Olcer, A. I., Ong, H. C., Chen, W.-H., Chong, C. T., Thomas, S., Bandh, S. A., & Nguyen, X. P. (2021). Impacts of COVID-19 pandemic on the global energy system and the shift progress to renewable energy: Opportunities, challenges, and policy implications. Energy Policy, 154, 112322. https://doi.org/10.1016/j.enpol.2021.112322
İoannides, D., & Gyimóthy, S. (2020). The COVID-19 crisis as an opportunity for escaping the unsustainable global tourism path. Tourism Geographies, 22(3), 624-632. https://doi.org/1 0.1080/14616688.2020.1763445
Jiang, Y., & Wen, J. (2020). Effects of COVID-19 on hotel marketing and management: a perspective article. International Journal of Contemporary Hospitality Management, 32(8), 2563-2573. https://doi.org/10.1108/ijchm-03-2020-0237
Kajla, T., Raj, S., Sharma, S., Joshi, M., & Kaur, A. (2022). Key preferences of tourists during COVID-19 pandemic in luxury hotels: evidence from qualitative data. Tourism and Hospitality Research, 22(4), 473-487. https://doi.org/10.1177/14673584211066742
Katríková, D. (2016). Preparation and progress of the draft Solvency II. In: Účetnictví a auditing v procesu světové harmonizace. pp. 92-99.
Kubaščíková, Z., & Pakšiová, R. (2015). Impact of accounting standards on the results of financial analysis. In: IFRS: global rules & local use: proceedings of the 3rd international scientific conference: Anglo-American University, Prague - Czech Republic. pp. 150- 155.
Lukáč, J. (2017). Application of the IFRS accounting system and its impact on the change of selected financial indicators of the company. In Accounting and auditing in the process of world harmonization: proceedings of an international scientific conference: Zuberec - University Center UNIZA, pp. 118-122.
Maiti, A. (2022). Impact of covid-19 on individual income in tourism and hospitality industry in india: a difference-in-differences approach. Tourism Economics, 29(7), 1790-1811. https:// doi.org/10.1177/13548166221140629
Manová, E. (2016). The impact of accounting information in the financial statements in accordance with IFRS on selected financial indicators. Journal of innovations and applied statistics. Vol. 6. pp. 123 -128.
Mataram, I. G. A. B., Jendra, I. W., Siwantara, I. W., & Dewi, N. I. K. (2021). The Role of Digital Marketing as a Marketing Tool in Hotels in Badung Regency. Advances in Social Science, Education and Humanities Research. https://doi.org/10.2991/assehr.k.210424.064
Milovanović, V., & Banja, T. (2021). The COVID-19 pandemic effects on the hotel industry. https://doi.org/10.52370/tisc21570vm
Musadad, M. (2020). Crisis survival strategies: how a hotel survives during the COVID-19 pandemic. Journal of Sustainable Tourism and Entrepreneurship, 1(4), 269-278. https://doi. org/10.35912/joste.v1i4.402
Neacşu, N., & Zamfirache, A. (2022). Sustainability measures implemented in the hotel industry. Case study: Romania. https://doi.org/10.24818/basiq/2022/08/023
Nyathela-Sunday, T., Septoe, N., Menze, C. Z., Banoobai-Anwar, I., Seager, B., Davids, N., & Buser, C. (2022). What innovations would enable hospitality in South Africa to rebuild? Worldwide Hospitality and Tourism Themes, 14(6), 565-571. https://doi.org/10.1108/ whatt-05-2022-0063
Ognjanović, J., & Bugarčić, M. (2021). The role of employer brand in hotel companies during Covid-19 crisis. https://doi.org/10.52370/tisc21263jo
Ondrušová, L. (2017a). Company in crisis form the point of view of accounting. In Journal of East European Science and Research: scientific peer-reviewed journal, vol. 8, no. 1, pp. 338-345.
Ondrušová, L. (2017b). Company in crisis from the point of view of the shareholder. In Účtovníctvo Accounting and auditing in the process of world harmonization: proceedings of an international scientific conference: Zuberec - University Center UNIZA, pp. 164-168.
Register UZ. (2023). Register of financial statements of Slovak companies. https://registeruz.sk/ cruz-public/domain/accountingentity/simplesearch.
Shin, H., & Kang, J. (2020). Reducing perceived health risk to attract hotel customers in the COVID-19 pandemic era: focused on technology innovation for social distancing and cleanliness. International Journal of Hospitality Management, 91, 102664. https://doi. org/10.1016/j.ijhm.2020.102664
Stanojevic, L. (2021). Using innovative technologies to reduce health risk and restore travelers’ confidence. https://doi.org/10.52370/tisc21299ls
Waller, G., & Abbasian, S. (2022). An assessment of crisis management techniques in hotels in London and Stockholm as response to COVID-19’s economic impact. https://doi. org/10.1108/IJCHM-08-2021-1007
Zainol, N., Mustafa, E., & Shariff, N. (2021). Measures taken by the hoteliers to overcome the COVID-19 impact. https://doi.org/10.46754/gtc.2021.11.053
Zhang, C., & Liu, L. (2022). The influence of health-promoting leadership on employees’ positive workplace outcomes: the mediating role of employability and the moderating role of workplace civility. International Journal of Environmental Research and Public Health, 19(22), 15300. https://doi.org/10.3390/ijerph192215300
Zhang, J., Xie, C., Morrison, A., & Coca-Stefaniak, J. (2020). Responding to a major global crisis: the effects of hotel safety leadership on employee safety behavior during COVID-19. International Journal of Contemporary Hospitality Management, 32(11), 3365- 3389. https://doi.org/10.1108/ijchm-04-2020-0335
Keywords: Companies in crises; Financial analysis; COVID-19; Financial indicators
REFERENCES
Act No. 358/2015 Coll. on the Regulation of Certain Relations in the Field of State Aid and Minimum Aid and on Amendments to Certain Acts (Act on State Aid). https://www.slov-lex. sk/pravne-predpisy/SK/ZZ/2015/358/20160101.
Act No. 431/2002 Coll. on Accounting, as amended. https://www.slov-lex.sk/pravne-predpisy/ SK/ZZ/2002/431/20230622
Act No. 513/1991 Coll., Commercial Code, as amended. https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/1991/513/20230201.html.
Act No. 7/2005 Coll. on Bankruptcy and Restructuring, as amended. https://www.slov-lex.sk/ pravne-predpisy/SK/ZZ/2005/7/20230801.
Act No. 91/2010 Coll. on the Promotion of Tourism, as amended. https://www.slov-lex.sk/ pravne-predpisy/SK/ZZ/2010/91/20201128.html
Aldao, C., Blasco, D., & Espallargas, M. (2022). Lessons from COVID-19 for the future: destination crisis management, tourist behaviour and tourism industry trends. Journal of Tourism Futures. https://doi.org/10.1108/jtf-02-2022-0059.
Anguera-Torrell, O., Aznar-Alarcón, J., & Vives-Perez, J. (2020). COVID-19: hotel industry response to the pandemic evolution and to the public sector economic measures. Tourism Recreation Research, 46(2), 148-157. https://doi.org/10.1080/02508281.2020.1826225
Bello, M., & Bello, Y. (2021). Consequences of COVID-19 pandemic on hospitality industry: the Nigeria experience. International Journal of Research and Innovation in Social Science, 05(01), 422-425. https://doi.org/10.47772/ijriss.2021.5119
Cepni, O., Dogru, T., & Özdemir, Ö. (2022). The contagion effect of COVID-19-induced uncertainty on us tourism sector: evidence from time-varying granger causality test. Tourism Economics, 29(4), 906-928. https://doi.org/10.1177/13548166221077633
Chapman, C., Miller, D., & Salley, G. (2021). Social disruption of the tourism and hospitality industries: implications for post-covid-19 pandemic recovery. Worldwide Hospitality and Tourism Themes, 13(3), 312-323. https://doi.org/10.1108/whatt-02-2021-0038
Dauxert, T., & Bonometti, M. (2022). From Surviving to Thriving: The New Face of Revenue Management Strategies in A Crisis Era. Proceedings of the 2nd International Joint Conference on Hospitality and Tourism, IJCHT 2022, 6-7 October 2022, Singaraja, Bali, Indonesia. https://doi.org/10.4108/eai.6-10-2022.2325692
Davahli, M., Karwowski, W., Sönmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: current topics and research methods. International Journal of Environmental Research and Public Health, 17(20), 7366. https://doi. org/10.3390/ijerph17207366
DEMİR, M., DEMİR, Ş. Ş., DALGIÇ, A., & ERGEN, F. D. (2021). Impact of COVID-19 pandemic on the tourism industry: An evaluation from the hotel managers' perspective. Journal of Tourism Theory and Research, 7(1), 44-57. https://doi.org/10.24288/jttr.857610
Dhae, Y., & Neno, M. (2022). Exploring how the hotel businesses faced COVID-19 case study: hotel businesses in east nusa tenggara province Indonesia. https://doi.org/10.4108/ eai.25-11-2021.2319356
Farhangi, A., Huang, A., & Guo, Z. (2022). A Novel Deep Learning Model For Hotel Demand and Revenue Prediction amid COVID-19. Proceedings of the Annual Hawaii International Conference on System Sciences. https://doi.org/10.24251/hicss.2022.217
Finstat. (2023). Database of Financial statements of companies in Slovakia. https://finstat.sk/.
Hoang, A. T., Sandro Nižetić, Olcer, A. I., Ong, H. C., Chen, W.-H., Chong, C. T., Thomas, S., Bandh, S. A., & Nguyen, X. P. (2021). Impacts of COVID-19 pandemic on the global energy system and the shift progress to renewable energy: Opportunities, challenges, and policy implications. Energy Policy, 154, 112322. https://doi.org/10.1016/j.enpol.2021.112322
İoannides, D., & Gyimóthy, S. (2020). The COVID-19 crisis as an opportunity for escaping the unsustainable global tourism path. Tourism Geographies, 22(3), 624-632. https://doi.org/1 0.1080/14616688.2020.1763445
Jiang, Y., & Wen, J. (2020). Effects of COVID-19 on hotel marketing and management: a perspective article. International Journal of Contemporary Hospitality Management, 32(8), 2563-2573. https://doi.org/10.1108/ijchm-03-2020-0237
Kajla, T., Raj, S., Sharma, S., Joshi, M., & Kaur, A. (2022). Key preferences of tourists during COVID-19 pandemic in luxury hotels: evidence from qualitative data. Tourism and Hospitality Research, 22(4), 473-487. https://doi.org/10.1177/14673584211066742
Katríková, D. (2016). Preparation and progress of the draft Solvency II. In: Účetnictví a auditing v procesu světové harmonizace. pp. 92-99.
Kubaščíková, Z., & Pakšiová, R. (2015). Impact of accounting standards on the results of financial analysis. In: IFRS: global rules & local use: proceedings of the 3rd international scientific conference: Anglo-American University, Prague - Czech Republic. pp. 150- 155.
Lukáč, J. (2017). Application of the IFRS accounting system and its impact on the change of selected financial indicators of the company. In Accounting and auditing in the process of world harmonization: proceedings of an international scientific conference: Zuberec - University Center UNIZA, pp. 118-122.
Maiti, A. (2022). Impact of covid-19 on individual income in tourism and hospitality industry in india: a difference-in-differences approach. Tourism Economics, 29(7), 1790-1811. https:// doi.org/10.1177/13548166221140629
Manová, E. (2016). The impact of accounting information in the financial statements in accordance with IFRS on selected financial indicators. Journal of innovations and applied statistics. Vol. 6. pp. 123 -128.
Mataram, I. G. A. B., Jendra, I. W., Siwantara, I. W., & Dewi, N. I. K. (2021). The Role of Digital Marketing as a Marketing Tool in Hotels in Badung Regency. Advances in Social Science, Education and Humanities Research. https://doi.org/10.2991/assehr.k.210424.064
Milovanović, V., & Banja, T. (2021). The COVID-19 pandemic effects on the hotel industry. https://doi.org/10.52370/tisc21570vm
Musadad, M. (2020). Crisis survival strategies: how a hotel survives during the COVID-19 pandemic. Journal of Sustainable Tourism and Entrepreneurship, 1(4), 269-278. https://doi. org/10.35912/joste.v1i4.402
Neacşu, N., & Zamfirache, A. (2022). Sustainability measures implemented in the hotel industry. Case study: Romania. https://doi.org/10.24818/basiq/2022/08/023
Nyathela-Sunday, T., Septoe, N., Menze, C. Z., Banoobai-Anwar, I., Seager, B., Davids, N., & Buser, C. (2022). What innovations would enable hospitality in South Africa to rebuild? Worldwide Hospitality and Tourism Themes, 14(6), 565-571. https://doi.org/10.1108/ whatt-05-2022-0063
Ognjanović, J., & Bugarčić, M. (2021). The role of employer brand in hotel companies during Covid-19 crisis. https://doi.org/10.52370/tisc21263jo
Ondrušová, L. (2017a). Company in crisis form the point of view of accounting. In Journal of East European Science and Research: scientific peer-reviewed journal, vol. 8, no. 1, pp. 338-345.
Ondrušová, L. (2017b). Company in crisis from the point of view of the shareholder. In Účtovníctvo Accounting and auditing in the process of world harmonization: proceedings of an international scientific conference: Zuberec - University Center UNIZA, pp. 164-168.
Register UZ. (2023). Register of financial statements of Slovak companies. https://registeruz.sk/ cruz-public/domain/accountingentity/simplesearch.
Shin, H., & Kang, J. (2020). Reducing perceived health risk to attract hotel customers in the COVID-19 pandemic era: focused on technology innovation for social distancing and cleanliness. International Journal of Hospitality Management, 91, 102664. https://doi. org/10.1016/j.ijhm.2020.102664
Stanojevic, L. (2021). Using innovative technologies to reduce health risk and restore travelers’ confidence. https://doi.org/10.52370/tisc21299ls
Waller, G., & Abbasian, S. (2022). An assessment of crisis management techniques in hotels in London and Stockholm as response to COVID-19’s economic impact. https://doi. org/10.1108/IJCHM-08-2021-1007
Zainol, N., Mustafa, E., & Shariff, N. (2021). Measures taken by the hoteliers to overcome the COVID-19 impact. https://doi.org/10.46754/gtc.2021.11.053
Zhang, C., & Liu, L. (2022). The influence of health-promoting leadership on employees’ positive workplace outcomes: the mediating role of employability and the moderating role of workplace civility. International Journal of Environmental Research and Public Health, 19(22), 15300. https://doi.org/10.3390/ijerph192215300
Zhang, J., Xie, C., Morrison, A., & Coca-Stefaniak, J. (2020). Responding to a major global crisis: the effects of hotel safety leadership on employee safety behavior during COVID-19. International Journal of Contemporary Hospitality Management, 32(11), 3365- 3389. https://doi.org/10.1108/ijchm-04-2020-0335
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E-mail: [email protected]
www.udekom.org.rs
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Registration number.: 28157347