Abstract
Investing in recreation and wellness in transitional economies requires updating an inclusive approach and adjusting national regional policies. The article aims to provide the game and theoretical decision-making modeling regarding the direction of capital investment in the development of inclusive wellness and recreation in the regions of Ukraine. Considering this, a comparative analysis of relevant indicators, above all, the self-assessment level of population health, has been conducted. The “game against nature” method allows formalizing the social and market contradictions of regional development of wellness and recreation. Using Ukraine as an example, the analysis of the payoff matrix by decision-making criteria such as the Bayes-Laplace’s criterion, the Savage’s criterion, the Wald’s criterion and the Hurwitz’s criteria, establishes the priority areas for investment: the maximum investment amount is for the middle-income regions and the minimum – for the high-income regions. However, there is a significant disparity in investment in health and recreation across regions. The situation requires a transformation of the target function: from providing social subsidies to maximizing person’s well-being in the physical, mental, social and financial aspects. In the absence of inclusive economic institutions, it is proposed to equalize the weight of the “investment in health” and “investment in recreation” factors and redistribute the total volume of capital investment in regions with relatively low solvency and population health indicators.
Highlights
The social and economic development of a country depends on investment: on their volume, and on how exactly they are directed and allocated in different economic sectors and social sphere of the regions
Ukraine underestimates the importance of wellness and recreation and tourism
Rected to middle-income regions, as happens in practice; the principle of inclusion: relatively significant amounts are directed to the regions whose population has the lowest income levels (Sumy and IvanoFrankivsk oblasts); the principle of reliability: investing in the highest-income regions (Kyiv and Lviv oblasts) is less risky
Summary
The social and economic development of a country depends on investment: on their volume, and on how exactly they are directed and allocated in different economic sectors and social sphere of the regions. There is an understanding that private invest- The most progressive trend of wellness tourism ment can address the problems in environmental development relates to the experience econoand social development of recreational areas. Speaking (Complete Controller, 2019), the value of health and wellness enhances the siginvesting in recreational facilities increases the nificance of the experience economy to seek the level of factors such as property value, public additional benefits of the wellness recreation area health, environmental quality, tourism develop- and attract investment in inclusive development. Without recreation- social standards on their own, in al facilities in the region, the problems in health- Ukraine, investment in socio-economic sectors, care, environment pollution can occur, which in such as wellness and recreation, is insufficient turn will cause a negative impact on tourism, so- and uneven across regions. The function of the game is to use the investments in the development of
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