Shadow economic phenomena in tourism and hotel business

This paper summarizes findings from the study of shadow economic activities of tour agencies and hotels in Russia. The analysis shows the trends in concealed or reduced business activities used for tax evasion or avoiding other obligations. The shadow economic phenomenon is quite common in the Russian tour agencies and hotels. It threatens the Russian economy, as tourism becomes one of the fast growing industries, but also the economic damage is done to the companies (nontransparent financial activity encourages internal theft in these companies).