The impact of the national tourism system on the economic growth in Ukraine

Anatoliy Mazaraki,Svitlana Melnychenko,Tetiana Zubko,Alla Okhrimenko,Margaryta Boiko

doi:10.21511/ppm.17(4).2019.08

Anatoliy Mazaraki, Svitlana Melnychenko + Show 3 more

Open Access

https://doi.org/10.21511/ppm.17(4).2019.08

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Abstract

The paper aims at analyzing the impact of tourism on the economic growth in Ukraine considering its global significance and dynamic development. Tourism should be considered not as a separate phenomenon, but as a complex socio-economic-ecological system, i.e. the national tourism system (NTS). The study attempts to reveal the nature and determinants of the national tourism system impact on economic growth, and also empirically substantiates this in the Ukrainian context. Since the economic decisions require a huge amount of information and different models, a multivariate least square model has been proposed to determine the causal links between NTS and economic growth. The paper also presents the economic parameters such as Ukrainian GDP as a dependent variable, volume of domestic tourism consumption, income from international passenger carriage, international tourism expenditures in the country, the volume of services provided in temporary accommodation and catering establishments, and country’s income from NTS as independent variables. The paper is based on the 2000–2017 statistical data. It concludes that the increase of total NTS contribution to GDP is influenced by all considered factors except the international tourism expenditures in the country. A proposed econometric factor analysis model can be used as a tool to analyze and forecast the socio-economic NTS processes. The hypothesis of the NTS`s impact on economic growth is substantiated.

Highlights

INTRODUCTIONAs a component of the global economy, shows dynamic growth. According to the World Tourism Organization, in 2018, international tourist arrivals grew 5% to reach the 1.4 billion
Tourism, as a component of the global economy, shows dynamic growth
Where Y – total national tourism system (NTS) contribution to GDP, UAH billion; x1 – domestic tourism consumption, UAH billion; х2 – revenues from passenger carriage, UAH billion; х3 – country’s income from NTS, UAH billion; х4 – international tourism expenditures in the country, UAH billion; х5 – the volume of services provided in temporary accommodation and catering establishments, UAH billion

Summary

INTRODUCTION

As a component of the global economy, shows dynamic growth. According to the World Tourism Organization, in 2018, international tourist arrivals grew 5% to reach the 1.4 billion. It should be noted that over the long term, the income growth from international tourism exceeds the global GDP growth. This fact highlights the dynamic development and ability of tourism to be a catalyst for various socio-economic processes. Given the cross-sectoral nature of the NTS functioning, which accumulates different types of economic activity, resources, and differentiated consequences of its functioning (in time, by regions and countries, by types and forms of tourism), the analysis of its impact on the economic growth will contribute to a real assessment of the NTS contribution to GDP, a factor analysis of determinants, and NTS monitoring in time and space. Summarizing the above arguments, it is necessary to point out the relevance of studying the NTSs impact on the economic growth in Ukraine, which has a significant tourist potential as a macro destination

LITERATURE REVIEW

Findings

CONCLUSION