MEASURING MARKET COMPETITION INTENSITY IN THE HOSPITALITY SECTOR

Аннотация:

This study examines the intensity and evolution of market competition within the hospitality sector of Bukhara region, Uzbekistan, across the period 2022-2024, employing the Hannah-Kay concentration index as the primary analytical instrument. The research addresses the critical policy question of whether market liberalization and tourism sector expansion have generated competitive market structures conducive to service quality improvement and price efficiency. Utilizing comprehensive statistical data on service volumes from 17-18 accommodation establishments representing major hotels and tourist facilities across three consecutive years, the analysis computes market concentration indices with parametric specification α=1.5, appropriate for assessing overall market concentration dynamics. Empirical findings reveal Hannah-Kay index values of 14.47 for 2022, 14.95 for 2023, and 14.90 for 2024, substantially exceeding the monopoly threshold of 1.0 and indicating robust competitive market conditions throughout the observation period. The progressive increase from 2022 to 2023 suggests intensifying competition driven by new market entrants, particularly the opening of international chain hotel Wyndham Bukhara, while the slight stabilization in 2024 indicates market maturation. Market share analysis identifies Oriyent Star Varahsha and Wyndham Bukhara as market leaders with shares of 11.6% and 12.0% respectively in 2024, while no single establishment demonstrates dominant market power exceeding 15%, confirming dispersed market structure. The study contributes methodologically by demonstrating the applicability of concentration indices to hospitality sector analysis in emerging tourism markets, providing empirical baseline measurements for regulatory assessment, and offering theoretical insights regarding the relationship between market structure, service diversification, and quality competition in regional tourism contexts. Policy implications emphasize the importance of maintaining competitive market conditions through continued support for diverse establishment types including family-run guesthouses alongside international chains, quality certification programs, and monitoring mechanisms preventing anti-competitive consolidation. The findings support continued liberalization policies while suggesting targeted interventions to strengthen smaller establishments' competitive capabilities through training, financing access, and marketing support programs