According to a study conducted by Creditinfo Romania, a company specialized in providing commercial risk management products and services, 45% of the companies owning accommodation units in Constanta county present a high risk of entering insolvency.
At the national level, half of the companies in Romania that own accommodation units are at risk of entering insolvency.
“More precisely, out of the 2,748 companies that own hotels, 1,508, or 55%, present a high risk of entering insolvency.
At the top of the list is Bucharest, where 64% of companies owning hotels or other accommodation units present a high risk of entering insolvency, the study shows.
Among the tourist-developed counties, high risks of entering insolvency are also found in companies from Brasov – 62%, Bihor – 59%, Cluj – 55%, Mures – 54%, Prahova – 53%, and Timis – 51%.
According to the study, there is a direct link between the year the company owning hotels or other accommodation units was established and the risk of entering insolvency. Thus, the most exposed to this risk are companies established in the 2006-2010 period, with 54% of them presenting this risk. In contrast, the most solid businesses in the field, according to statistical data, are held by companies established in the first years after the revolution.
Only 31% of companies established in the 1991 – 1995 period present a high risk of entering insolvency.
At the end of last year, 6,946 hotels, motels, guesthouses, hostels, chalets, and other units with tourist accommodation functions were registered in Romania, with the most being in Brasov – 881 accommodation structures, Constanta – 761, and Harghita – 371 accommodation structures. In total, at the level of 2015, 8,465,909 tourists were accommodated in Romania.
The most developed and sought-after tourist areas of Romania are: Bucharest – 1.72 million tourist arrivals in accommodation units, Constanta – 1.02 million tourists, Brasov – 997,601 tourists, and Prahova – 467,158 tourists, Mures – 495,481 tourists, Cluj – 428,812 tourists, Bihor – 344,059 tourists, Timis – 338,238 tourists, and Suceava – 310,458 tourists.
Over 35,000 employees work in the field. The counties with the highest number of tourism employees are Bucharest – 8,288 employees, Constanta – 3,913, Timis – 1,912, and Brasov – 1,605 employees.
Most companies owning hotels and other accommodation facilities in Romania are located in Bucharest – 655 infrastructures, of which 27 are new, Constanta – 497 infrastructures, 28 new, Brasov – 261 infrastructures, of which 14 new, Cluj – 204 infrastructures, 10 new, Prahova – 177 infrastructures, 6 new.
Hotels and other accommodation units in Bucharest generate the highest turnover in the country, 1,298 million RON. This is followed by Constanta – 447 million RON, Timis – 184 million RON, Brasov – 171 million RON, Prahova – 166 million RON, Cluj – 160 million RON, Bihor – 141 million RON, and Mures – 139 million RON.
The most profitable hotels are found in Bucharest – 124 million RON, Constanta – 58 million RON, Timis and Brasov with 26 million RON each, Prahova – 25 million RON, Mures – 24 million RON, Cluj and Valcea with 22 million RON each.
In the case of companies owning hotels and other accommodation units, the speed of receivables recovery is 44 days, almost four times faster than in the case of other companies (the national average is 161 days). In contrast, the speed of debt payment is 331 days, 80 days slower than the national level.
According to the Creditinfo Romania analysis, 9.3% of companies active in the hotel sector meet the criteria for profitability and good reputation, well above the 4% average recorded by companies operating in other fields.
The highest share of profitable companies in the hotel industry is in the counties of Timis – 17.14%, Constanta – 15.09%, Prahova – 11.3%, Cluj – 10.78%, and Mures – 9.24%
Source: Capital
Frequently Asked Questions
What is the insolvency risk for hotel companies in Romania?
According to the study, 55% of hotel companies nationwide face a high risk of insolvency, with Bucharest reaching a peak of 64%.
Which Romanian counties have the highest number of accommodation units?
Brasov leads with 881 structures, followed by Constanta with 761 and Harghita with 371 accommodation units.
How does the age of a company impact its financial stability in the tourism sector?
Companies established between 1991 and 1995 are the most stable, with only a 31% insolvency risk, compared to those founded between 2006 and 2010, which face a 54% risk.