Investment attractiveness of the tourism industry under current conditions

Abstract

The concept of investment attractiveness of tourism as a set of micro- and macro-factors is investigated in this paper. These factors form the general idea of the potential investor about the state and level of tourism development in the country and give him the opportunity to determine how attractive and profitable are the country’s investments in this area. It is noted that according to a the European Business Association research, in 2016–2020 Ukraine demonstrated decrease in the commitment of respondents to invest in the country, as evidenced by the decline in investment attractiveness index. The economic significance and peculiarities of attracting investments in the domestic tourism industry are highlighted. The dynamics and the forecast of investments in the investigated sphere are analyzed. It is found that the largest amounts of investment resources in 2019 came from countries such as Cyprus, the Netherlands, Switzerland, Austria, Hungary, Poland, USA and others in insurance, industry, wholesale and retail trade, professional and scientific and technical activities, construction. The essence of factors influencing the development of Ukrainian tourism, including lack of organizational support for the industry, non-compliance of recreation facilities with world quality standards, outdated nature of the material and technical base of the tourist complex, low quality roads in rural areas, etc. is revealed. The main problems that complicate the attraction of investments are characterized and a list of measures to increase the investment attractiveness of the domestic tourism industry is proposed. We believe that the most effective among them are development of strong tourism policy of the country, popularization of domestic tourism opportunities, improvement of material and technical condition of tourist «magnets», creation of new and marking existing tourist routes, improvement of the excursions and recreation services market, creation of digital catalog of services and products, improvement of the level of information and advertising support of tourist activities, improvement of the tourists at tourist sites safety.