摘要：This paper investigates microeconomic determinants of profitability for Croatian hotel industry, in order to analyze its significant and universal influence on the economy. Hotel industry relevance is examined during the contraction times of economic activity, during which business sustainability and positive financial results are seen as preconditions of long-run development for firms as well as for the national economy. The purpose of this paper is to investigate the variables affecting firm profitability, by applying the generalized method of moments for dynamic panel model to a large sample of approximately 1,767 observations covering 593 hotels in Croatia, from 2003 to 2011. Financial data are based on Amadeus data base. The findings indicate that firm size, lagged profitability, concentration, liquidity, solvency, capital productivity and labour productivity positively influence profitability, while firm age negatively influence it. The empirical results suggest that concentration has highest influence on profitability.
