The war has led to an 85% drop in inbound tourism, which will lead to a decrease in revenues of more than $1 billion by 2024 and more than $12.7 billion by 2030, the press service of the Ukrainian Hotel & Resort Association (UHRA) reports.
Such data follows from the study “Economic Impact of the War on the Tourism and Hospitality Sector of Ukraine: Losses, Innovations and Resilience”, conducted with the support of the State Agency for Tourism Development of Ukraine (DART) in partnership with the UHRA, the Association of Inbound Tour Operators of Ukraine (AITOU), the All-Ukrainian Association of Guides (UAG), the Ukrainian Restaurant Association (URA) and the Ukrainian Culinary Association (UCA).
“Before the outbreak of full-scale war, Ukraine’s tourism sector was on a path of steady growth, contributing $1.6 billion to the national economy and providing 1.2 million jobs. The war has undermined this progress, but with coordinated recovery efforts and targeted international investment, the sector can rebound and once again become a vital engine of Ukraine’s economic recovery,” UHRA President Iryna Sidletska was quoted as saying in the release.
According to the study, it is expected that by the end of 2024, tourism revenues in Ukraine will be more than $1 billion below pre-war forecasts. Total revenue losses by 2030 are estimated at $12.7 billion.
At the same time, the number of jobs by the end of 2024 will be reduced by more than 60% compared to pre-war levels. Experts expect that by 2034, the total number of jobs in the industry will increase to 1 million, which is 540 thousand jobs less than in the pre-war scenario.
The tourism industry is forced to develop in the face of a shortage of investment. The amount of suspended foreign and domestic private investment is estimated at tens of billions of dollars.
GART Chairwoman Mariana Oleskiv emphasized that despite the ongoing war, Ukraine’s tourism industry is showing resilience.
“We are grateful to our partners for analyzing the macroeconomic indicators of the Ukrainian tourism industry, which confirmed that the priority chosen by the Agency – the development of domestic tourism – is correct, especially in conditions when we have almost lost outbound tourism, and inbound tourism, according to this study, has decreased by 85%. Our efforts have resulted in a steady increase in tax revenues in the tourism sector and an increase in hotel occupancy in regions that are relatively safe and popular with tourists,” Oleskiv said.
The report emphasizes the enormous potential of Ukraine’s tourism industry to contribute to the post-war economic recovery and achieve a key role as a generator of national GDP. The experts’ recommendations include investing in the restoration of war-damaged monuments and hospitality facilities; focusing on energy-efficient and green projects; supporting the retraining of displaced workers, veterans, and people with disabilities; and strengthening the promotion of domestic and regional tourism to stabilize the local economy.
Despite the enormous challenges, the authors of the report emphasize that with proper support, Ukraine’s tourism sector can gradually recover and become a powerful symbol of resilience, peace, and economic strength.
The full report will be available for download in October 2024 on the resources of the partners who participated in this study.
