The article examines the problem of evaluating the effectiveness of the functioning of tourist destinations, collects and analyzes the main indicators that are used to evaluate the importance of tourist activity for the territory and proposes key performance indicators (KPI). Worldwide, tourism is one of the fastest growing industries. The increase in the number of tourists in tourist destinations requires increased attention from the authorities to ensure the sustainable development of recreational areas. The formation of the tourist product and tourist offer as a whole should be accompanied by the establishment of certain criteria for evaluating the effectiveness of tourism development in the destination from the point of view of sustainability and competitiveness. We included economic, environmental, socio-cultural and management KPIs among the most important key performance indicators. To assess the economic impact of tourism in a destination, KPIs should assess whether new business is created in the destination due to the presence of tourism needs, what percentage of tourism purchases are made from local producers, the dynamics of the number of skilled workers involved in tourism and tourism infrastructure. Also, in any destination, a system should be built to determine the risks and opportunities associated with the environmental consequences of the implementation of tourist activities. Such a system aims to analyze many factors: water use, climate action, solid waste management, air, land and sea pollution, as well as habitat and biodiversity conservation. The essence of socio-cultural KPIs is to empower communities. The impact of tourism on local communities goes beyond economic benefits, affecting wider sections of society through social dynamics, culture and quality of life. Management KPIs may include the implementation of the destination management plan, the amount of funding for tourism development, the amount of funds specially allocated to overcome the negative consequences of tourism. It is noted that the use of a holistic approach to planning the development of tourist destinations, which includes key performance indicators in the economy, environment, socio-cultural sphere and management, enables destinations to make informed decisions that benefit both visitors and local residents.
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