Current state of the tourism industry in Ukraine: problems of development and ways of improvement

Abstract

The paper deals with justifying the importance of the tourism industry as an effective component of the development of social, cultural, economic, political spheres of a region and a country. The purpose of the paper is to investigate the current state of the tourism sector in Ukraine; identify major problems of the tourism sector; suggest effective ways of its further development. It is proved that the development of tourism services, both domestically and internationally, requires high quality of such services and search for ways of its effective functioning. The paper touches upon the role of tourism in the economy, current state of tourism operations, distinguishes factors influencing the development of this industry. The object of research is the tourism industry in Ukraine. The subject of the study is the current state of the tourism industry in Ukraine: problems of development and ways of improvement. The methodology of the study is based on using such methods as scientific abstraction, analogies and theoretical generalization – to study theories regarding tourism sector in Ukraine, determination of its role in the economy; system analysis – to study current state of domestic tourism sector; graphic method – to represent visually the theoretical and practical results of the research; structural-logical – to construct the study logically; theoretical generalization – tohighlight the specific features of tourism industry improvement process on both regional and state levels. The study covers main indicators of tourist industry development in Ukraine as well as analysis of tourist tax revenue and tax payments to the state budget of Ukraine. The paper also explores the main problems that hinder the effective development of tourism in Ukraine, particularly in environmental, social, economic, political spheres which need to be addressed. The factors that reduce the volume of foreign tourist inflow to Ukraine and negatively affect the active promotion of the tourism product are identified. The paper proposes ways of improving the socio-economic development of both the tourism sector as well as the region and the state as a whole. The article emphasizes the creation of a positive image of Ukraine as a tourist state and this process should be based on the infrastructure modernization of tourism, resort, and recreational spheres. Among the effective ways to improve the tourism business efficiency in Ukraine, the article proposes stimulation of travel companies to promote inbound tourism, which will help to generate high profits and replenish the state budget regularly. Based on the results of the study, the main ways of solving tourism sphere issues in Ukraine and active promotion of tourism services should be: improvement of regulatory-legal framework for development of tourist and recreational services in Ukraine; close cooperation of authorities with scientific organizations; stimulation of domestic tourism development; state support of social tourism through the development and improvement of appropriate national programs which will guarantee e benefits for setting up of tourism businesses; investments in tourism industry development; facilitation of competitive advantages development; improvement of tourism safety; participation in international tourism industry development programs. Furt her research will revitalization of tourism in Ukraine is one of the high priority directions of domestic economy development. Solving problems that currently hinder tourism development will increase economic income to the state budget. Taking into account the fact that Ukraine has a strong tourism and recreation potential, active promotion of the tourism product will increase employment levels and create conditions for rapid economic development. Stimulation of travel entitiesfor inbound tourism development will generate high profits not only for tourism industry but also other sectors of the economy and the country. That is why development of effective strategic plans and improvement of regulatory framework can enhance Ukraine's tourism image, accelerate the tourism industry, and increase budget income.