Preliminary communication

INVESTMENTS AND PROFITABILITY OF HOTELS IN CROATIA

Dijana Pletikosa orcid.org/0000-0002-5378-6006 ; University of Applied Sciences Vern, Zagreb, Croatia
Josipa Akalović Antić orcid.org/0000-0003-2560-4313 ; University of Applied Sciences Vern, Zagreb, Croatia

Abstract

Tourism and hospitality industry are very important for the Croatian economy, but the lack of fresh capital becomes an obstacle to their growth and competitiveness on the international market. The financing possibilities being reduced, one of the solutions is to attract foreign direct investment (FDI), especially the Greenfield investments. The aim of this study is to evaluate the impact of foreign direct and domestic investment on hospitality industry business performance. A comparative analysis has largely confi rmed that hoteliers in the foreign-owned business perform better than domestic. Correlation analysis of performance indicators for the period from 1996 to 2012, showed the low priority of FDI relative to domestic investment only regarding hotel occupancy rate. However, analyses of indicators such as revenue, average daily room rate and revenue per available room reveal more signifi cant domestic investment impact. Research results confirm that, in synergy with domestic investment and other forms of fi nancing, FDI is signifi cant and necessary for a sustainable and competitive development of the Croatian hotel industry.

Keywords

hospitality industry; investment; FDI; performance indicators

Hrčak ID:

141810

URI

https://hrcak.srce.hr/141810

Publication date:

1.6.2015.

Article data in other languages: croatian

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