STRATEGIC PLANNING OF THE RECREATIONAL AND TOURISM INDUSTRY DEVELOPMENT: THE UKRAINIAN EVIDENCE

Abstract

The purpose of the study is to analyse the impact of the investment component on the development of the Recreational and Tourist Industry (RTI), and to perform a comprehensive analysis in order to elaborate a strategic development plan for the sector. Using the matrix method of research and mathematical method of rating, the general strategic direction of development of the recreational and tourism sphere of each region of Ukraine was estimated and chosen. We have developed a matrix "Recreational potential – RTI investment support", which consists of six quadrants and characterizes the long-term attractiveness of the recreational and tourist sphere and its investment level in the market of recreation, entertainment, and sports. The level of income per capita and the level of investment in collective accommodation facilities were investigated. This allowed to determine: (1) which regions need investments for the development of the recreational and tourist sphere as one of the priority areas; (2) which regions already have a sufficient level of cash flow in the recreational sphere, and finally, (3) which regions need careful analysis with the following elaboration of an alternative direction for recreation development in these regions. Based on two indicators, i.e. investment level and recreational potential, a matrix consisting of 6 quadrants was constructed. All regions of Ukraine were classified in this matrix. The results of the study will have implications for the industry, allowing authorities of different levels to formulate a rational policy for the development of the tourism industry.