The Tourism Industry Bankruptcy Analysis Evidence from Russia

Problem statement: tourism organizations experience bankruptcy, affecting all stakeholders: employees, customers, investors, managers, regulatory authorities, this is the specificity of bankruptcy in any area. The specific nature of firms’ bankruptcy is that it affects all stakeholders: employees, stockholders, managers, investors, and regulators. In this study, bankruptcy prediction for companies in the tourism sector in Russia will be proposed. The object of the study is the tourism industry in Russia. Subject: bankruptcy of companies in the tourism sector. The goal of this work is improving the accuracy of prediction of bankruptcies in the tourism sector for further preventing of the companies liquidation. The objectives of this work: conducting the industry analysis, identifying characteristics of Russian tourism market, determining factors affecting the tourism industry in Russia, distinguishing key points that impact on the bankruptcy of companies in the industry, establishing of the advanced bankruptcy prediction methodology. Within the framework of this work the statistical methods, econometric modeling, analysis of the experience of previous studies and formalization will be used. As a consequence the risk of bankruptcy in the tourism sector in Russia may be reduced. Understanding of the phenomenon of bankruptcy can improve companies’ anticipation of the local crisis and proactive measures directed to invest to future periods and avoid troubles for all stakeholders, it will allow to introduce preventive measures aimed at investing in future periods and reduce the threat of unpleasant economic consequences for all stakeholders. This model can be viewed as a competitive advantage and at the same time as a safety cushion for the customer. Considering this, this study provides benefits for all stakeholders.