Tourism trends in Ukraine (2007)

During 6 months of 2007, 9.5 mn of tourists were visited of Ukraine, up by 2 mn person (+27 %) versus the respective period of 2006.

Increasing of entry stream in the 1st six months of 2007 was a result from privacy trip increasing by 39 % from Moldova (+69 % or by 681.6 ths person), Byelorussia (+ 46 % or by 289.2 ths person), Poland (+ 30 % or by 494.6 ths person), Romania (+ 419 % or by 383.9 ths person), Hungary (+25 % or by 115.3 ths person). At the same time, the process of organized tourism was moved down by 15 % or 67.9 ths person. The quantity of tourists from Hungary and Slovakia trended down by 90 % (by 67.3 ths person and 27.8 ths person correspondingly).

In the tourism entry stream structure was looking the following changes: privacy tourism share moved up by 83 % in the 1st six months of 2006 to 92 % in the 1st six months of 2007, while organized tourism share moved down from 6 % to 4 %.

Increasing of entry tourism stream from European Society was due to increasing tourists from: Estonia (+ 30 % or by 1.7 ths person), Latvia (+ 28 % or by 3.1 ths person), Poland (+ 28 % or by 500.1 ths person), the Great Britain (+ 21 % or by 4.3 ths person), Italy (+ 26 % or by 6.0 ths person).

Tourism from Ukraine

In the 1st six months of 2007, Ukrainian increased travel abroad (due to private and organized trip) by 6 % or 467.9 ths person versus the respective period of 2006 to 8.3 mn person.

Ukraine’s organized tourism moved up due to increasing of trip to: Byelorussia (+ 188 % or by 21.8 ths person), Poland (+ 337 % or 100.1 ths person), Austria (+ 80 % or by 9.3 ths person), Turkey (+ 42 % or by 36.1 ths person), Egypt (+ 45 % or by 27.3 ths person).

Ukraine’s private tourism moved up due to increasing of trip to: Moldova (+ 18 % or by 100.1 ths person), Romania (+ 209 % or by 191.3 ths person), Slovakia (+ 44 % or by 39.5 ths person), Egypt (+ 136 % or by 21.0 ths person), Turkey (+ 23 % or by 11.0 ths person), Italy (+ 21 % or by 3.1 ths person).

During 9 months of 2007, in Ukraine 5,083 of tourism licences were active (tourism operator – 1,538 and tourism agent – 3,545, 30 % and 70 % correspondingly). During 9 months of 2006 4,284 licences were active.

During 9 months of 2007 tourism services was provided for 3,350 licensees (1,281 tourism operators and 2,069 tourism agents, 38 % and 62 % correspondingly). In the period under review, 402 licensees reported about absence activity (8 % from active licences) and 1,317 licensees had not reported about activities (25.9 % from active licences).

From the beginning of 2007, tourism activities were present just 66 % of licences versus the same data in 2006.

The mean accounting quantity of working person in tourism industry makes 21.2 ths persons, down by 3 % versus 9 months of 2006.

Internal tourism is priority kind of activities in Ukraine; it enumerates about 74 % of tourists versus 47 % in 2006.

During 9 months of 2007, the quantity of foreign tourists moved up by 23% against 2006.

In the period under review, Ukraine’s tourists industry served 2.1 mn of tourists, up by 19 % versus 9 months of 2006 and 1.6 mn of excursionist, up by 16 %, including kinds of tourism activities:

• Entry tourism – 303.9 ths persons (+ 23 %);
• Exit tourism – 236.6 ths persons (- 65 %);
• Domestic tourism – 1.5 mn persons (+ 85 %).

Increasing of total quantity of Ukraine’s tourists by 19 % was made due to increasing of domestic tourists in different regions: Ivano-Frankivsk region (+ 3.6 times), Poltava region (+ 65 %), Summy region (+ 26 %), Odessa and Chernivtsi regions (+ 15 %), Donetsk region and Autonomy Republic of Crimea (+ 13 %), Kiev (+ 30 %), and Simpheropol (+ 28 %).

In 9 months of 2007, Ukraine increased quantity of tourism services by 38% versus the respective period of 2006 to UAH 3.9 bn. (due to increasing of all tourism services – foreign tourism by 32%, entry tourism by 49 % and domestic tourism by 21 %).

Budget payment increased by 30 % to UAH 126.7 mn. In middle, in one licensee counting approximately UAH 37.8 ths budget payments.

Accomplishment of the state policy of international relations

An integral part of state policy in regards to tourism is Ukraine’s international integration (especially in the direction of Europe).

Purposeful and systematic activities aimed at the further development of international ties and Euro-integration in Ukraine effectively provides for the establishment of a tourist-friendly environment, integration into the European community, effective benefits from potential tourism, improvement of the trans-border infrastructure, and development of the national economy and culture.

Ukraine’s quest for the full membership in the WTO spurred the accomplishment of important measures with the purpose of increasing the significance of tourism in the social and economic life of the state. In particular, the President of Ukraine issued the Resolution “On the establishment of the Tourism Day”, which will be celebrated on the 27th of September in the framework of the World Tourism Day.

The annual “Ukraine International Travel Salon,” the largest tourism exhibition in Ukraine, obtained special status under the auspices of the WTO. The exhibition is held by the State Department of Tourism and Resorts and recently was included in the WTO schedule of international travel events. On October 18, 2005 Ukraine became a member of the European Travel Commission.

Ukraine also simplified formalities related to tourists’ entrance into the country. These changes affect tourists that pass through international airports in Boryspol, Simferopol, Odessa, Donetsk, and the Odessa Seaport.

Investment backing for tourism development

The economic development of tourism in Ukraine has backe by dynamic investment activities including encouraging investments and establishing of favorable conditions for investments in development of the travel and resort-and-recreation industry. Positive shifts in investment activity were upheld by the Decree No.1801 “On the adoption of the Program for Development of Investment Activity in 2002-2010,” which was issued by Ukraine’s Cabinet of Ministers on December 28, 2001.

It is common knowledge that today the development of the hotel infrastructure is the most attractive sphere for investments into the tourism industry. According to data from the State Statistics Committee, Ukraine hosts more than 1,218 enterprises that render hotel services and 3,110 sanitarium-and-resort and health and well-being enterprises. To ensure further growth, these hotels and enterprises primarily invested funds into modernization and reconstruction of their fixed assets.

In regards to the geographic distribution of investments in construction and modernization of the fixed assets, most of these investments was directed to the most popular travel regions including the Autonomous Republic of Crimea (38.26% of the total), the city of Kiev (22.93%), Zaporozhye (8.76%), Zakarpatye (7.05%), Odessa (5.35%), and Lvov (5.04%).

In the recent years, the total volume of investments into the further development of tourism in Ukraine was distributed as follows:

• The enterprises’ own funds – 60.4%;
• Investments – 24.4%;
• Budget allocations – 12.8%;
• Loans – 2.4%.

An analysis of investment and credit needs of the enterprises representing the travel-and-recreation industry in 2004-2010 shows that potential foreign and domestic investors can be provided with at least 250 investment projects for a total of more than USD 1.4 bn.