D 2017

How is a hotel's turnover affected by foreign exchange interventions in the Czech Republic?

HERYÁN, Tomáš

Basic information

Original name

How is a hotel's turnover affected by foreign exchange interventions in the Czech Republic?

Authors

HERYÁN, Tomáš (203 Czech Republic, guarantor, belonging to the institution)

Edition

Brno, Enterprise and competitive environment, p. 318-325, 8 pp. 2017

Publisher

Mendelova univerzita v Brně

Other information

Language

English

Type of outcome

Proceedings paper

Field of Study

50204 Business and management

Confidentiality degree

is not subject to a state or trade secret

Publication form

electronic version available online

RIV identification code

RIV/47813059:19520/17:00010810

Organization unit

School of Business Administration in Karvina

ISBN

978-80-7509-499-5

Keywords in English

Hotels; global financial crisis; Czech Republic; FX interventions
Changed: 7/2/2020 10:57, RNDr. Daniel Jakubík

Abstract

V originále

Even though the current paper has focused on the hotels which take a place in our country within their business, some other financial issues are also connected to that problematic. The global financial crisis and its impact on the small open economy as the Czech Republic is, as well as the monetary policy of the Czech National Bank (CNB), both has affected not only the business of entire hotel industry. The aim of the paper is to investigate whether or not as well as how the future restrictive monetary policy could affect the hotel's turnover in the Czech Republic. As the main estimation method it is used the GMM regression with pooled data of the hotels. It is obtained time series for the hotels' profit and loss statements from Bureau van Dijk's Amadeus international statistical database and exchange rates as well as the CNB foreign exchange trading from their online database. According to the CNB, which has decided to use the koruna Exchange rate as an additional instrument for easing the monetary conditions in 2013, they will still not discontinue the use of the exchange rate as a monetary policy instrument before 2017 Q2. Therefore, suggestions for the hotels to hedge naturally have been made. Finally, there are some ideas for future research in that area, too.