Business news from Ukraine

Business news from Ukraine

New law on tourism can increase revenues 10 times – DART

22 January , 2025  

Revenues from tourism can grow tenfold if a new law on tourism is adopted and market transparency is ensured, said Mariana Oleskiv, head of the State Agency for Tourism Development (DART), at a reporting press conference.

“Over the five years of DART’s existence, we have been able to achieve significant efficiency in the systemic development and regulation of the Ukrainian tourism industry, together with MPs we have developed the Law on Tourism, the concept and the first stage of the Unified Tourism Register (UTR) and harmonized the interaction between participants. Despite the war, tourism today brings about UAH 3 billion to the country’s budget and creates new niches. These revenues can grow tenfold after the adoption of the new law “On Tourism” and ensuring transparency of this market, including the submission of statistics on tourist accommodation,” she said.

Oleskiv explained this indicator by calculations based on the example of the Slavska community, based on the break-even level of institutions (30% of the workload – IF-U).

“The better data the community receives, the better it can manage this area. For example, a certain season is less active, so the community can reduce the tourist tax and do more promotion to attract more visitors with promotions,” she explained.

Over the five years that Oleskiv has been in charge of DART, state budget revenues from the tourism industry have increased from UAH 1 billion 852 million in 2020 to UAH 2 billion 938 million in 2024. According to a forecast by Oxford Economics, made at the request of DART, the country’s tourism industry could bring up to UAH 598 billion to the state budget in 2034.

“We managed to get Russia expelled from the UN World Tourism Organization, and we created a whole new niche – memory routes. We have reoriented tourism from international to domestic and managed to interest people in new destinations to visit. Today, there is a very real and fully prepared strategy for the development of the industry for the coming years, as well as a professional environment that demonstrates unity and high interaction,” she says.

Systemic steps to create modern rules for managing the industry include a new law on tourism, bills to stimulate investment and development in the industry, a new hotel categorization system, and the creation of the first joint municipal enterprise in the tourism sector.

“Today, the first stage of the UTR has been created, an important element of which is the new categorization system developed by DART experts, after which it makes sense to finalize the second stage of the UTR in accordance with new criteria that meet European ones,” Oleskiv said.

The draft resolution adds modern formats (hostels, glamping, camping, etc.) to the categorization system, in addition to 1-5 star hotels. All accommodation facilities are required to register voluntarily through online resources (address, basic documents, number of beds, etc.). As for the categorization and star rating system, Oleskiv believes that, as required by international practice, it should include on-site compliance checks.

Oleskiv hopes that both the law and the resolution on the new categorization system will be adopted this year, which will help the systematic development of the industry, which has the potential to become a driver of the country’s economy.