Abstract

Abstract. The research deals with the state of the tourism sector of Ukraine under current conditions. The main funding sources for tourism entities have been considered. The financial measures taken by Ukraine and neighboring countries for overcoming the consequences of the pandemic in the tourism sector have been summarized. The importance of effective financial initiative support in the above-mentioned area has been substantiated. Several financial tools that should be used for the development of the tourism sector in terms of the pandemic are presented. The financial instruments of tourist activity stimulation are singled out: direct financing (public funding instruments) and indirect financing (fiscal incentives, state property rent relief, rate of tourist tax, etc.). The main destructive factors of the tourism sector development have been determined, which include: the lack of systematic state support for the tourism entities development under current conditions; a significant level of the tourism sector shadowing; misuse of funds from the land tourist tax; unsatisfactory condition of tourist facilities; worn-out infrastructure in most regions, etc. The following measures are needed to be implemented to improve the effectiveness of financial instruments for tourism development: the creation of an attractive investment climate in tourism; development of tourist infrastructure; intensification of public funding for tourism and the efforts of local governments to identify internal reserves for funding; intended use of funds from the land tourist tax; use of the potential of the public-private partnership mechanism at the local level; intensification of cooperation with non-governmental institutions, including foreign ones, which are interested in the implementation of tourism development programs, etc. The introduction of anti-crisis key factors, systematization, and consistency in the implementation of the above-mentioned measures will help to stabilize the development of tourism entities in the shortest possible time and achieve a level of economic efficiency and balance between security, public health, and economic interests. Keywords: pandemic, tourist activity, financial instruments, tourist tax, incentives. JEL Classification L83, G19 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 14.

Highlights

  • The considerable backlog in the pace of measures implemented to support the tourism sector has been observed in the current, difficult conditions of social and economic development of the regions of Ukraine

  • The majority of countries implement several external and internal measures to minimize the consequences of the COVID-19 pandemic, including guaranties of the market maintenance, implementation of mandatory public health measures and so on

  • The financial measures taken by Ukraine and neighboring countries to overcome the consequences of the pandemic in the tourism sector have been summarized

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Summary

Introduction

The considerable backlog in the pace of measures implemented to support the tourism sector has been observed in the current, difficult conditions of social and economic development of the regions of Ukraine. The World Travel & Tourism Council (WTTC) 2020 Economic Report highlights the importance of the tourism sector to Ukraine’s economy, contributing a profit of UAH 229.4 billion and supporting more than 1 million working places. It complicates the situation of small and medium-sized businesses operating in the field of tourism and hospitality. Effective development of the tourism sector in the country’s regions requires the involvement of significant amounts of financial resources, systematic development and implementation of effective development strategies, and programs

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