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The paper attempts to answer the question as to the determinants of the typical size configuration of firms in Central Europe's hospitality industry. In discussing the historically fragmented character of hospitality and tourism and the associated conduct and performance characters of this industry, the paper presents different possible growth scenarios and/or possibilities for the hotel accommodation sector including internationalisation. In the concluding section of the paper the consequences of the twin forces ofglobalisation and heightened competition and a quickened pace of technological change are analyzed with respect to the industry's pattern of growth and development.

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