Mechanisms for legal and economic support of tourism development in Ukraine

Natalia Trusova and Anastasiia Trusova

E-Forum Working Papers, 2025, vol. 15, issue 4, 68-80

Abstract: The study aimed to identify areas for improvement in the economic and legal mechanisms for tourism development in Ukraine, incorporating European experience. Content analysis of current legislation revealed that the national regulatory framework for tourism was fragmented, with unclear distribution of functions between industry players and no comprehensive system for stimulating investment. Institutional analysis revealed that the tourism management structure required a clearer division of competences between central authorities, local self-government bodies and industry institutions, as well as the creation of an effective mechanism for policy coordination at all levels. The number of foreign tourists increased to UAH 3 million in 2024, tourism revenues to UAH 52.1 billion, and tax revenues to UAH 1.88 billion. The share of domestic tourism stabilised at 72%, reflecting the reorientation of the market in the context of the war. Investment in tourism infrastructure reached UAH 7.5 billion, and employment in the sector reached 158,000 people, confirming the gradual recovery of the industry. Analysis of European practices showed that Poland was developing tourism through regional small business support programmes, Croatia through a decentralised system of tourism councils, Spain through the sustainable use of natural resources and control over short-term rentals. A comparative analysis with the Ukrainian experience revealed the need to expand financial incentives, improve tax instruments, and more actively engage public-private partnerships. A SWOT analysis showed that the strengths were the availability of natural and recreational resources, cultural heritage and the growth of domestic tourism, while the weaknesses remained insufficient infrastructure, an underdeveloped marketing policy and limited institutional support. Opportunities included expanding international cooperation, attracting investment, and digitising tourism services, while threats included the consequences of military action, macroeconomic instability, and declining tourism demand. Recommendations have been formulated for improving the regulatory framework, creating effective financial instruments to support the industry, enhancing the institutional capacity of management bodies, and introducing mechanisms for interregional coordination to ensure sustainable tourism development in Ukraine. The results obtained can be used by state authorities, local self-government bodies, industry associations and tourism enterprises to develop strategies, programmes and projects for tourism development

Keywords: tourism policy; regulatory and institutional support; investment instruments; public-private partnership; regional development (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cuc:eforum:v:15:y:2025:i:4:p:68-80

DOI: 10.62763/ef/4.2025.68

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