All prerequisites for development of the tourism industry in Ukraine exist. These include a convenient geographical location, favourable climate, varied terrain, a unique combination of natural and recreational resources, cultural heritage, specialised health-resorts. Combined with good value for money, all these factors confer a competitive advantage for Ukraine’s tourist offer

Demianenko, S.

Vartanian, A.

SocioEconomic Challenges Journal (Sumy State University)

 1 
 
 
 
Ministry of Education and Science of Ukraine 
Sumy State University. Faculty of Economics and Management 
Sumy Local Youth NGO "Council of Young Scientists" 
 
21st International Scientific Conference 
"Economics for Ecology" 
ISCS'2015 
 
 
 
Економіка для екології 
Матеріали 
XXI Міжнародної наукової конференції 
(Україна, Суми, 6‒7 травня 2015 року) 
 
 
 
 
 
 
Суми 
Сумський державний університет 
2015 
 
 
23 
 
 
 
 
 
TOURISM DEVELOPMENT IN UKRAINE 
 
Svitlana Demianenko, Artem Vartanian 
Odessa State Environmental University, Odessa, Ukraine 
 
All prerequisites for development of the tourism industry in Ukraine 
exist. These include a convenient geographical location, favourable climate, 
varied terrain, a unique combination of natural and recreational resources, 
cultural heritage, specialised health-resorts. Combined with good value for 
money, all these factors confer a competitive advantage for Ukraine’s 
tourist offer. 
Ukrainian tourism is characterized by both positive and negative 
features including many problems that must be resolved by reforming state 
regulation: 
• to improve management mechanisms of tourism industry. 
• creating the legal framework of state regulation in the field of 
tourism, tax   policy, privatization and corporatization, 
• creating favorable investment conditions. 
The main directions of state policy in the field of tourism: 
• establish procedures for standardization, certification and licensing 
of tour operators; 
• introduction of tourism statistical reporting; 
• organization and development of scientific support of tourism, 
training, retraining and advanced training of tourism personnel; 
• development of cooperation with foreign countries and international 
organizations involved in international tourism development, 
• development and conclusion of international bilateral  and 
multilateral agreements in the field of tourism and on the mechanism of 
their implementation. 
The powers and involvement of the state in regulating tourism must be 
specified because they form the basic operating conditions of tourist 
activities nationally and internationally. 
In order to support tourism development, the responsible state body 
must coordinate its efforts in a variety of industries - from transport and 
culture to health and social development of rural areas, to form a system of 
effective cooperation between the regions. 
However, the recent economic and political crises in Ukraine, 
accompanied by the invasion of Crimea by Russia, and war with Russia, 
24 
 
 
 
 
 
will depress growth in the tourism sector in the immediate future. Many 
bookings for 2014 were cancelled and local people are seeking alternative 
holiday destinations now. 
In previous years 95% Ukrainian tour operators were oriented on the 
outbound market. This year, due to depreciation of the hryvnia, the 
Ukrainian tourist market collapsed. Most Ukrainians can’t travel abroad. 
Indeed, over the past few months the cost of trips increased significantly. 
Tour operators even took risky and unprofitable steps by  selling  tours 
below their cost price. 
Therefore, to reach the goals of tourism development, state and 
regional programmes have to support tour operators who are more active in 
inbound tourism by decreasing some taxes, attracting foreign tourists to the 
country etc. in order to enhance both inbound and outbound tourism 
equally. 
In order to improve the development of tourism industry in Ukraine 
the following main tasks need to be solved: 
• to implement effective mechanisms for financial and economic 
regulation of the tourism industry; 
• to identify ways, forms and methods of stimulating development of 
entrepreneurship in this area; 
• to create an effective model of investment policy in the field of 
tourism taking into account the socio-economic interests of the country; 
• to improve the organizational structure of the management sector of 
tourism; 
• to ensure the efficient use and restoration of natural, historical and 
cultural environment; 
• to adopt environmental regulations and adopt acceptable standards 
of development of tourism resources, to develop mechanisms of action and 
implement into the practice of  management. 
The basic condition of the state program realisation are direction of 
actions of central and local executive authorities, local self-government on 
creating and maintaining a favorable environment for the development of 
tourism in Ukraine. Therefore, local authorities within their powers 
approved targeted state, regional and other programs for tourism 
development. 
A number of other Ministries, from transport to culture, education to 
environment, are also indirectly involved in the tourism sector through 
25 
 
 
 
 
 
provision  and  maintenance  of  visitor  attractions,  events,  infrastructure, 
logistics, training and services. 
The implementation of the tourism development mission should be in 
the following directions: 
1. Further development and support of the current modern, well- 
developed and efficient tourist infrastructure, providing acceleration of 
tourist flows. 
2. Increased availability of tourism to the public through lower prices 
for tour services. 
3. Improving the competitiveness of the national tourist product of 
Ukraine and realization of recreational potential. 
4. Increasing the level of complex  security and stability of tourist 
system. 
5. Improving the investment climate and increase the investment 
attractiveness of the tourism market. 
In general, state support for the tourism development in Ukraine 
should be implemented in two directions - economic and organizational. 
Organizational measures of state support for the tourism industry of 
Ukraine  should include: 
• achievement of movement freedom (visa policy and customs 
formalities), 
• protection and revitalization of natural and cultural heritage, 
• preservation of World Heritage Sites located  in Ukraine, and so on. 
Organizational  measures  create  favorable  conditions  for  tourism 
activities  and  can  be  divided  into  measures  to ensure  the  security and 
measures  to  regulate  tourist  market  services  (easy  access  to  credit, 
proximity to infrastructure, etc.). 
In addition, tourism development can be encouraged by the state 
through the social policy (regulation of working week and holidays, 
professional training, etc.). 
Economic measures of state support should include the provision of 
direct benefits and to stimulate activities financially: taxes, grants, 
investments, etc.). 
Due to the current economic situation in Ukraine, the tourist industry 
must now rely on itself. Therefore, as an option, it must be changed 
something in the approach to support the market 
26 
 
 
 
 
 
The basic principle of the creation of the national tourism organization 
is a public-private partnership. Advantages for participants - consolidation 
of state, communal and private resources, optimization of marketing costs. 
If  all  tourism  market  participants  (state  and  local  authorities,  tour 
companies, hotels, air companies, resorts…) can cooperate, negotiate, and 
create  favorable  conditions  for  tourism,  there  is  a  chance  to  thrive. 
However, in this case, the state has responsibility only for coordinating the 
process; decision-making and responsibility is up to the industry itself. 
 
 


English

Tourism development in Ukraine

Electronic Sumy State University Institutional Repository

 1    Ministry of Education and Science of Ukraine Sumy State University. Faculty of Economics and Management Sumy Local Youth NGO "Council of Young Scientists"  21st International Scientific Conference "Economics for Ecology" ISCS'2015    Економіка для екології Матеріали XXI Міжнародної наукової конференції (Україна, Суми, 6‒7 травня 2015 року)       Суми Сумський державний університет 2015   23      TOURISM DEVELOPMENT IN UKRAINE  Svitlana Demianenko, Artem Vartanian Odessa State Environmental University, Odessa, Ukraine  All prerequisites for development of the tourism industry in Ukraine exist. These include a convenient geographical location, favourable climate, varied terrain, a unique combination of natural and recreational resources, cultural heritage, specialised health-resorts. Combined with good value for money, all these factors confer a competitive advantage for Ukraine’s tourist offer. Ukrainian tourism is characterized by both positive and negative features including many problems that must be resolved by reforming state regulation: • to improve management mechanisms of tourism industry. • creating the legal framework of state regulation in the field of tourism, tax   policy, privatization and corporatization, • creating favorable investment conditions. The main directions of state policy in the field of tourism: • establish procedures for standardization, certification and licensing of tour operators; • introduction of tourism statistical reporting; • organization and development of scientific support of tourism, training, retraining and advanced training of tourism personnel; • development of cooperation with foreign countries and international organizations involved in international tourism development, • development and conclusion of international bilateral  and multilateral agreements in the field of tourism and on the mechanism of their implementation. The powers and involvement of the state in regulating tourism must be specified because they form the basic operating conditions of tourist activities nationally and internationally. In order to support tourism development, the responsible state body must coordinate its efforts in a variety of industries - from transport and culture to health and social development of rural areas, to form a system of effective cooperation between the regions. However, the recent economic and political crises in Ukraine, accompanied by the invasion of Crimea by Russia, and war with Russia, 24      will depress growth in the tourism sector in the immediate future. Many bookings for 2014 were cancelled and local people are seeking alternative holiday destinations now. In previous years 95% Ukrainian tour operators were oriented on the outbound market. This year, due to depreciation of the hryvnia, the Ukrainian tourist market collapsed. Most Ukrainians can’t travel abroad. Indeed, over the past few months the cost of trips increased significantly. Tour operators even took risky and unprofitable steps by  selling  tours below their cost price. Therefore, to reach the goals of tourism development, state and regional programmes have to support tour operators who are more active in inbound tourism by decreasing some taxes, attracting foreign tourists to the country etc. in order to enhance both inbound and outbound tourism equally. In order to improve the development of tourism industry in Ukraine the following main tasks need to be solved: • to implement effective mechanisms for financial and economic regulation of the tourism industry; • to identify ways, forms and methods of stimulating development of entrepreneurship in this area; • to create an effective model of investment policy in the field of tourism taking into account the socio-economic interests of the country; • to improve the organizational structure of the management sector of tourism; • to ensure the efficient use and restoration of natural, historical and cultural environment; • to adopt environmental regulations and adopt acceptable standards of development of tourism resources, to develop mechanisms of action and implement into the practice of  management. The basic condition of the state program realisation are direction of actions of central and local executive authorities, local self-government on creating and maintaining a favorable environment for the development of tourism in Ukraine. Therefore, local authorities within their powers approved targeted state, regional and other programs for tourism development. A number of other Ministries, from transport to culture, education to environment, are also indirectly involved in the tourism sector through 25      provision  and  maintenance  of  visitor  attractions,  events,  infrastructure, logistics, training and services. The implementation of the tourism development mission should be in the following directions: 1. Further development and support of the current modern, well- developed and efficient tourist infrastructure, providing acceleration of tourist flows. 2. Increased availability of tourism to the public through lower prices for tour services. 3. Improving the competitiveness of the national tourist product of Ukraine and realization of recreational potential. 4. Increasing the level of complex  security and stability of tourist system. 5. Improving the investment climate and increase the investment attractiveness of the tourism market. In general, state support for the tourism development in Ukraine should be implemented in two directions - economic and organizational. Organizational measures of state support for the tourism industry of Ukraine  should include: • achievement of movement freedom (visa policy and customs formalities), • protection and revitalization of natural and cultural heritage, • preservation of World Heritage Sites located  in Ukraine, and so on. Organizational  measures  create  favorable  conditions  for  tourism activities  and  can  be  divided  into  measures  to ensure  the  security and measures  to  regulate  tourist  market  services  (easy  access  to  credit, proximity to infrastructure, etc.). In addition, tourism development can be encouraged by the state through the social policy (regulation of working week and holidays, professional training, etc.). Economic measures of state support should include the provision of direct benefits and to stimulate activities financially: taxes, grants, investments, etc.). Due to the current economic situation in Ukraine, the tourist industry must now rely on itself. Therefore, as an option, it must be changed something in the approach to support the market 26      The basic principle of the creation of the national tourism organization is a public-private partnership. Advantages for participants - consolidation of state, communal and private resources, optimization of marketing costs. If  all  tourism  market  participants  (state  and  local  authorities,  tour companies, hotels, air companies, resorts…) can cooperate, negotiate, and create  favorable  conditions  for  tourism,  there  is  a  chance  to  thrive. However, in this case, the state has responsibility only for coordinating the process; decision-making and responsibility is up to the industry itself.   

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Tourism development in Ukraine

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