Budget receipts from tourism fee in Ukraine in 2018 increased by 29.2%, to UAH 907 million, and taking into account tax payments the tourism industry raised payments by 20.7% last year, to UAH 4.2 billion, the Ministry of Economic Development and Trade has reported.
“This indicates an increase in the volume of domestic tourism flows and the effectiveness of implementation of the decentralization reform, namely local fiscal discipline improvement,” the agency said.
The ministry added there were also qualitative changes in the structure of foreign tourist flow to Ukraine in 2018. According to the ministry’s press release, the State Border Service recorded an increase in the number of tourists from the countries not bordering Ukraine, particularly Europe: from Spain by 68% Britain by 47.3%, Lithuania by 23.4%, Italy by 15.4%, Germany by 13.3%, and France by 9.2%.
The number of tourists from India over the past year rose by 57.4%, China by 38.8%, Japan by 38.3%, Israel by 21.7%, and the United States by 19%, while cross-border traffic, on the contrary, declined, the ministry said. According to the authority, this was achieved thanks to visa liberalization, and an increased offer of direct and low-cost flights.
The Kyiv City Council at a meeting on Thursday approved the tourism fee rate in the amount of 0.4% of the minimum wage for Ukrainian tourists and 1% of the minimum wage for foreign tourists. A total of 76 deputies backed the decision. “In 2019, the amount of this fee for domestic tourism will amount to UAH 16.69, for inbound tourism – UAH 41.73. Taking into account the rates, the city budget should receive at least UAH 35 million,” the press service of the Kyiv City Council reported, citing First Deputy Head of the Kyiv City Administration Mykola Povoroznik.
Earlier, he reported that in 2018, the budget of Kyiv city received UAH 33 million, which is almost a quarter more than in 2017.
As reported, Ukraine’s Verkhovna Rada in 2019 changed the base for accruing the tourism fee and obliged tourists living in private accommodation to pay it, according to the law amending the Tax Code and other legal acts on the review of some tax and duty rates (bill No. 9260 from the so-called “budget” package of bills).
In addition, the law changes the tourism fee rates in 2019. In particular, for domestic tourists, the rates should not exceed 0.5% of the minimum wage per day, which from January 1, 2019 will be UAH 20.87, for inbound tourism – up to 5% of the minimum wage (UAH 208.65). The final rates will be determined by local councils, but they will not depend on the cost of accommodation or hotel category.