Journal of Tourism and Services - Vysoká škola obchodní v Praze

Journal of Tourism and Services - Vysoká škola obchodní v Praze

The Tax Issues Perception of Catering and

Hospitality Businesses in Slovak Republic

Ľudmila Šmardová

Matej Bel University, Faculty of Economics


The tax system issues are discussed almost in every society. It is connected to

each economic activity and often associated with burdens of doing business. Most

Slovak business entities providing hospitality services perceive the issues of tax

system as the main entrepreneurial burden, as well as the barrier of tourism development.

The main aim is to examine the subjective perception of the tax issues,

especially the tax system as such, and the framework of particular taxes.

Key words: taxes, catering and hospitality services, Slovak Republic, businesses.

1. Introduction

Catering and hospitality businesses are providing basic services in

tourism and play significant role in tourism development. Tourism sector

is emerging from the most difficult period in its recent history in last

years. The industry has faced not only the global economic crisis, but also

climatic disturbances, multiply security incidents, pandemics, and strikes

among industry personnel [10].

More than 88 % of business entities are small and medium sized

enterprises (SME) in the Slovak Republic [3] as well as the majority of

catering and hospitality units. The economic crisis threatens national

economy as well as SME, which are usually more vulnerable according to

the possibilities of savings, potential markets and positioning [2]. Slovak

Tourism has not been one of the most profitable sectors of national

economy for longer time and it has become worst since 2008. Short term

analyses of catering and hospitality services section show the decrease of

employment, as well as significant decrease of outputs. Number of jobs

created by catering and hospitality sector had decreased by 17,8 % in

2009 compared to previous year. Employment decreased by additional 7,3

% in 2010 compared to 2009. There were about 23,8 % decrease during

the economic crisis, even the employment downturn has slowed down in

2010. Observed sector`s share on state employment was about 3,51 % in

2008 and 3,11 % in 2010. Sector`s percentage share on national economy


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