Identification of problems and post-war recovery of tourism in Ukraine

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Department of Recreation and Tourism, Faculty of Informatics and management, University of Hradec Kralove,

Identification of problems and post-war recovery of tourism in Ukraine

Tetiana But Ph.D. in Economics, Associate Professor, PhD (Economics),

Researcher

Czech Republic

Abstract

Tourism is one of the sectors of the global economy most affected by the pandemic. At the same time, in 2022, having not yet fully recovered from the effects of quarantine restrictions, it was forced to face a completely new challenge - large-scale military operations on the territory of Ukraine. The purpose of the study is to identify the problems of tourism in Ukraine during the hostilities and ways of its post-war recovery. The methodological basis of the study was formed by general scientific and special methods of economic theory, in particular, methods of theoretical generalization and comparative analysis and synthesis in order to study all processes and phenomena of tourism in Ukraine in interdependence and interconnection. In the course of the study, statistical materials from the European Union and Ukraine were used. The growth of domestic tourism during the hostilities in Western and Central Ukraine was determined.

Among the main problems of tourism during the war are: a high level of danger to the country during the war; the number of contaminated territories of Ukraine; war crimes against the environment; complete reorientation of some tourist infrastructure facilities from tourism activities to another direction; complete cessation of operation of some tourist enterprises due to lack of economic profitability; partners in tourism activities have ceased to function or do not receive tourists; tourist facilities in the occupation zone; destruction and damage to facilities Among the ways of post-war recovery are: involvement of small and medium-sized businesses in recovery; development of memorial tourism; focus of the post-war economic recovery program on technological modernization of the tourism industry; involvement of innovations in the implementation of specific instruments of state aid; promotion of investment in tourism in Ukraine and promotion of partnership with international companies; effectiveness of state policy in the postwar period for the restoration of tourism infrastructure and its improvement.

Keywords: tourism, risks, environmental crimes, post-war recovery.

Анотація

ВИЗНАЧЕННЯ ПРОБЛЕМ ТА ПОВОЄННОГО ВІДНОВЛЕННЯ ТУРИЗМУ В УКРАЇНІ

Бут Тетяна Вікторівна

к.е.н., доцент, науково-дослідний співробітник кафедрирекреалогіїта туризму, Факультет інформатики і менеджменту, Університет,

Градець Кралово, Чеська Республіка

Туризм є одним із секторів світової економіки, який найбільше постраждав від пандемії. Водночас у 2022 році, ще не повністю оговтавшись від наслідків карантинних обмежень, він був змушений зіткнутися з абсолютно новим для себе викликом - великомасштабними військовими операціями на території України. Метою дослідження є визначення проблем туризму в Україні під час воєнних дій та шляхів його повоєнного відновлення. Методологічну основу дослідження склали загальнонаукові та спеціальні методи економічної теорії, зокрема, методи теоретичного узагальнення та порівняльного аналізу і синтезу з метою дослідження всіх процесів і явищ туризму в Україні у взаємозалежності та взаємозв'язку між собою. У ході дослідження були застосовані статистичні матеріали Європейського Союзу та України. Визначено зростання внутрішнього туризму під час бойових дій в Західній та Центральній України.

Серед головних проблем туризму під час війни визначено: високий рівень небезпеки країни під час війни; кількість забруднених територій України; воєнні злочини проти довкілля; повне переорієнтування з туристичної діяльності в інше спрямування деяких об'єктів туристичної інфраструктури; повне припинення роботи деяких туристичних підприємств із-за відсутності економічної рентабельності; партнери по туристичній діяльності припинили своє функціонування або не приймають туристів; туристичні об'єкти в зоні окупації; знищення та пошкодження об'єктів світової спадщини ЮНЕСКО; працівники поїхали за кордон; емоційне виснаження працівників, які залишились та їх неготовність працювати. Серед шляхів повоєнного відновлення намічено: залучення малого та середнього бізнесу у відновлення; розвиток меморіального туризму; націленість програми післявоєнної відбудови економіки на технологічну модернізацію туристичної галузі; залучення інновацій при реалізації конкретних інструментів державної допомоги; просування інвестицій в туризм України та сприяння партнерства із міжнародними компаніями; результативність державної політики в післявоєнний період для відновлення туристичної інфраструктури та її покращення.

Ключові слова: туризм, ризики, екологічні злочини, повоєнне відновлення.

Introduction

Tourism is one of the main sectors of Ukraine's economy. In times of turbulence and uncertainty, it is important to restore the competitiveness of tourism in Ukraine. The development of tourism in Ukraine contributes to an increase in revenues in many sectors of the economy, growth in employment and self-employment, involvement of small and medium-sized businesses in export activities, and improvement of living conditions in the local communities. Tourism also plays a significant role in smoothing out development imbalances in certain areas of the country. tourism economic profitability business

However, the tourism market is very vulnerable to crises of various origins, such as natural disasters, epidemics, socio-economic and political crises, and military conflicts that lead to destabilization of the situation inside the country. This fact is confirmed by the situation of tourism in Ukraine, which has experienced a real collapse since the start of a full-scale war. Russia's invasion of Ukraine (from the beginning of 2014, then 24.02.22) has already had the effect of slowing growth and accelerating inflation across the global economy. They are spreading through three main channels. First, rising prices for commodities, such as food and energy, are driving inflation even higher. Second, neighboring countries have faced disruptions in trade, supply chain and remittances, and even a historic surge in refugee inflows. And third, declining business confidence and increased uncertainty for investors negatively affect asset prices, leading to accelerated capital outflows from emerging markets. Therefore, identifying the current problems of tourism in Ukraine caused by the hostilities and its post-war recovery plays a significant role in the country's economy.

Literature review

The study of tourism development during the war and its post-war recovery is devoted to numerous publications by scholars, including Bordun, et al. (2022), Gaponenko, et al. (2023), Zarubina, et al. (2022), Hudaverdieva, (2022), Reiman, et al. (2023), Barvinok, (2022), Barvinok, N. & Barvinok, M. (2022). The Slovak scientists Bobeka, et al. (2023) studied how the habits of Ukrainian tourists changed after the outbreak of war in Ukraine in 2022 compared to 2021 . The development of tourism and Ukraine's European integration course in the context of a full-scale Russian invasion was studied by Hryhorchuk, (2023). The impact of the labor potential of the Ukrainian population migration to the EU countries during the war was studied in But, et al, (2023).

However, numerous studies do not have a single universal approach to determining the ways of post-war recovery of Ukraine, given the many existing problems caused by the hostilities and the uncertain situation, which justifies the relevance of the topic of the chosen research.

Paper objective

The purpose of this study is to identify the problems of tourism in Ukraine during the war and ways of its post-war recovery.

Methodology

The theoretical and methodological basis was formed by general scientific and special methods of economic theory, in particular, methods of theoretical generalization and comparative analysis and synthesis in order to study all processes and phenomena of tourism in Ukraine in interdependence and interconnection. The study used statistical data from the European Union and Ukraine.

Secondary data on tourist tax statistics by region of Ukraine for the study period of 20222023. The indicators of the most dangerous tourist countries of the German organization A3M Global Monitoring on the safety of tourists around the world based on the global monitoring system for the period of 2022-2023 were used to determine the dangerous situation of Ukraine in this rating. Using the Global Peace Index ranking data compiled by the Institute for Economics and Peace, Ukraine's place in this peace index was determined and it was recognized that the world has become less peaceful. Based on the Ecodozor Information Platform, developed and maintained by Zoi Environment Network (Switzerland) with the support of the Organization for Security and Cooperation in Europe, the United Nations Environment Program and the REACH Humanitarian Initiative, data on the environmental impact of the Ukrainian environment during the hostilities were obtained. Statistical data on environmental crimes in the regions of Ukraine caused during the war were obtained from the European Union Agency for Law Enforcement Cooperation.

Results and discussion

According to the State Agency for Tourism Development (DART, 2023 a), more than 4 million tourists visited Ukraine in 2021, which is 26% more than in 2020 (Gaponenko, et al., 2023). It was with the beginning of the summer season that Ukrainians began to request vacations on the domestic tourism market. In most cases, they are interested in domestic tourism. The main regions that attract Ukrainian tourists are still relatively safe: Lviv, Ivano-Frankivsk and Zakarpattia. There is great demand for trips to the Carpathians. Recently, sightseeing tours to castles and museums, which had been closed for a long time due to martial law, have begun to resume. In such circumstances, domestic tourism has peculiarities related to the permits and restrictions that apply during the war in the relatively safe western and central regions of the country. They should be taken into account not only by tourists but also by travel companies (Zarubina, et- al, 2022).

Since February 2022, the tourism industry has faced a new challenge - the Russian- Ukrainian war, which, despite its limited geography, has affected tourism on a global scale. Undoubtedly, the tourism industry has suffered the most not only in Europe, but also in Ukraine. Despite the fact that western Ukraine is relatively safe for tourists, there are few of them today. The amount of tourist tax in Ukraine decreased by 24% compared to the previous year and amounted to UAH 178948 thousand against UAH 235461 thousand in 2021 (DART, 2023b). The decline was recorded almost throughout the country (Table 1). Significant declines are observed in those regions that are or have been in the war zone. For example, in Kherson region, the amount of tourist tax decreased by 95%, in Mykolaiv region - by 90%, and in Donetsk region - by 83%. In Odesa and Luhansk regions, there was an 80% decrease, in Zaporizhzhia region - 78%, and in Kharkiv region - 61%. At the same time, due to internal migration, the safer regions of Ukraine recorded an increase in tourist arrivals last year. These are primarily Western and Central Ukraine: Lviv region with an increase of 79%, Zakarpattia, Ivano-Frankivsk, Cherkasy, and Kyiv (Table 1).

The Ukrainian population has begun to choose domestic vacations, recuperating in healthcare facilities and boosting domestic tourism. This has a positive impact on the state budget of Ukraine. Tour operators are working together with local authorities to organize a safe vacation for tourists.

However, the economic and military crisis in Ukraine may improve domestic tourism, which has grown by 10% since the crisis began. As a result, the crisis affects the quality of services and the professionalism of tour operators, as unskilled employees are the first to be laid off, and unscrupulous tour operators are the first to go bankrupt (Hudaverdieva, 2022).

Table 1 Revenues from tourist tax in the regions of Ukraine in 2022, %

Source: after DART, 2023a.

Thus, in 2023, Ukrainian and foreign tourists will not have access to seaside resorts. Many of them are under occupation or in close proximity to the war zone. We are talking about Zaporizhzhia, Kherson and Mykolaiv regions. The holiday season is not open in Odesa region either.

It has been estimated that the total need for tourism recovery is estimated at UAH 16.8 billion, which is 0.26% of the total need for economic recovery in Ukraine. Today, Ukraine's tourism industry is looking for new opportunities to resume operations, despite serious limitations (Bordun, et al., 2022).

Another statement of the problems in the tourism industry was that Ukraine was ranked among the most dangerous tourist countries in 2023. The map of the most dangerous countries for travel in 2023 was published by the German organization A3M Global Monitoring, which deals with the safety of tourists around the world on the basis of a global monitoring system (Risk map, 2023). (Fig. 1).

According to the report, the country's risk assessment was based on such categories as entry/exit, transportation, available infrastructure, natural security, level of terrorist threats, strikes, etc. The analysts divided the world into five risk levels, with countries and cities categorized from "very low" to "very high." The Ukrainian crisis has caused many "tectonic" changes on the map. Popular tourist destinations have been recognized as risky for travel.

Among the most dangerous regions in Ukraine are Donetsk, Luhansk, Kherson, and Zaporizhzhia. They are marked in red on the map, which means "very high risk." The longer the war in Ukraine lasts, the more Europe as a whole suffers. This is the conclusion reached by experts from the European Travel Commission. According to their findings, the armed aggression against Ukraine, firstly, hinders the post-pandemic recovery of the tourism industry in the entire macro region, and secondly, forces tourists to look for alternative travel destinations.

Figure 1. Map of tourism risks, 2023

Source: Risk map, 2023.

The Global Peace Index study also confirms the low competitiveness of the tourism industry in Ukraine as a result of the hostilities. The Global Peacebuilding Index has been compiled by the Institute for Economics and Peace, based at the University of Sydney, with the participation of partner organizations since 2007. In preparing the ranking, all countries covered by the study are analyzed using specially developed metrics and a combination of internal and external factors. The index is based on 23 qualitative and quantitative indicators, grouped into three main groups (Gaponenko, et al., 2023):

The presence and scale of conflicts - domestic and international - in which a country is involved and the number of victims as a result of these conflicts, as well as the state's relations with neighboring countries.

The level of stability and security within the state - assesses such factors as the share of refugees and displaced persons in the total population, the number of violent crimes and suicides, the availability of weapons, the number of prisoners per capita, social protection measures, human rights, political stability, the presence and extent of terrorist threats, the level of xenophobia, and others.

The level of militarization of the state - assesses such factors as the size of the military budget in relation to the national gross domestic product, the overall military potential of the state, imports and exports of weapons, the number of military and security personnel per capita, the total number of weapons per capita, the level of access to weapons, etc.

The 2022 ranking includes 163 countries (Table 2). The results of the GPI report for 2022 show that the world has become less peaceful for the eleventh time in the last 14 years, with the average level of peacefulness in a country decreasing by 0.3 percent over the past year. Overall, the level of peacefulness improved in 90 countries and deteriorated in 71, emphasizing that the decline in peacefulness is usually greater than its improvement (Institute for Economics & Peace, 2023).

Table 2 Global Peace Index 2022

Source: Institute for Economics & Peace, 2023

Iceland has been ranked first for several years in a row. New Zealand is second, and Ireland is third. Ukraine ranks 153rd out of 163, along with North Korea and Sudan. It should be noted that a year earlier Ukraine was ranked 143rd in the ranking (Institute for Economics & Peace, 2022). This indicates the low competitiveness of the tourism industry in Ukraine as a result of the hostilities.

It should be noted that armed conflicts always harm the environment - flora and fauna suffer from fires, water pollution and hazardous gases. From 1950 to 2000, more than 80% of the world's major armed conflicts took place in the most vulnerable biodiversity areas - in biologically rich regions that are most at risk, and thus the development of sports, recreational, medical and health tourism associated with natural resources (Gaponenko et al., 2023).

Researchers have shown that populations of animals for natural resource development were usually stable in peacetime and declined during war, and the more frequent the conflicts, the greater the decline. To give an adequate assessment of the effects of hostilities, a full range of research is needed. But even now, when the fighting is still ongoing, many cases of ecocide (degradation of ecosystems, soil, water, and air pollution) have been identified and recorded, which poses a threat to the entire Eastern Europe (But, 2022). Figure 2 shows a map of Ukraine showing the contaminated territories of Ukraine as a result of military operations.

Figure 2. Contaminated territories of Ukraine as a result of military operations

Source: Ecodozor,2024

Researchers and environmental experts believe that it could take years to clean up the atmosphere, soil, and rivers of Ukraine and neighboring countries from pollutants.

Military operations are underway in 44% of Ukraine's protected areas, many of which, including the famous Askania Nova, have lost their infrastructure support. Since the beginning of the war, eco-activists have been collecting information on environmental crimes in our country in order to document ecocide in the country (Figure 3).

Figure 3. The number of war crimes against the environment in Ukraine as of January 2024.

Source: Statistics of Environmental Crimes, 2024.

From the figures above, we note that we are talking about the following environmental crimes that affect tourism resources (Figure 4).

Figure 4. Environmental crimes that affect tourism resources

Source: compiled by authors.

Environmental crimes in Ukraine caused by the military actions of the Russian Federation have a negative impact on the country's tourism resources, thereby worsening the environmental situation not only globally, but also causing devastating damage to the tourism industry of Ukraine, which will take years to recover.

However, tourism in Ukraine has nevertheless adapted to the conditions of war and gradually shifted to other formats. Now, instead of foreign tourists from the EU or the Middle East, hotels are now hosting foreign diplomats, civic activists, journalists from all over the world, and various volunteers. For example, in 2022 alone, about 2 million foreigners visited Ukraine, 1 million of them during the full-scale invasion of Russia (Trends and analytics, 2023).

Summarizing the research, it is possible to identify the main problems of tourism during the military operations in Ukraine (Figure 5).

The main problems that arose in tourism during the hostilities were identified: Ukraine in 2023 is the most dangerous tourist country in the world; particularly polluted territories of Ukraine; war crimes against the environment; complete reorientation of some tourist infrastructure facilities from tourism activities to other areas; complete cessation of work due to lack of economic profitability; partners in tourism activities have ceased to function or do not accept tourists; a significant number of tourist facilities in the occupation zone; destruction and damage to UNESCO World Heritage Sites; employees of the tourism industry went abroad; emotional exhaustion of the remaining employees and their unwillingness to work.

Figure 5. Problems of tourism during military operations Source: compiled by authors

It should be noted that as long as the war in Ukraine continues, tourism development is hampered, especially in the eastern and southern regions of Ukraine. This is due to the proximity of the regions to the frontline areas. The justification of the problems that have arisen as a result of hostilities makes it possible to determine the directions of post-war tourism recovery in Ukraine.

According to experts (Trends and analytics, 2023), the following trends contribute to the recovery of tourism in Ukraine tourists are most often interested in recreational activities in sanatoriums and other similar facilities where they can restore their health and nervous system, and stay as far away from explosions and air raids as possible;

the demand for travel for one person or for a family has increased. Instead, group tours have become less popular;

availability of electricity, water, communication and shelter is a priority requirement for hotels, hostels, etc;

Ukrainians book tours mostly at the last minute - "for tomorrow" - because it is impossible to plan ahead during a full-scale war (Bordun, et al., 2022).

There are already discussions within the tourism business about the post-war revival of the industry. Experts believe that the regions that suffered the least from the war will recover the fastest. At the same time, tourism in the liberated cities will have its own peculiarities: it is necessary to develop excursion routes, taking into account places of memory and tragedies. These locations should become part of memorial tourism in Ukraine, and the placement of any attractions on them should be prohibited.

Small and medium-sized businesses are the main driving force behind the recovery of tourism, as they are flexible: in unstable conditions, they can quickly adjust their activities and maximize their own resources. The contribution of small and medium-sized businesses to the recovery, including the tourism industry, will depend on international and government support. Such support should be part of a clear public policy that is guided by the principles of sustainable development: applying modern urban planning traditions, adapting infrastructure to climate change, taking into account the interests of local communities, and making travel accessible to all.

To improve the existing targeted, regional and state tourism development programs in Ukraine, the post-war economic reconstruction program should focus on the technological modernization of the tourism industry, which will create demand for tourism services.

Implementation of specific tools (forms of state aid) to stimulate the development of tourism in Ukraine and attract innovation.

Promoting investment in Ukraine's tourism and facilitating partnerships with international companies is possible if government policy is effective and if the postwar period is spent on restoring and improving tourism infrastructure.

Conclusion

Thus, the problems of tourism in Ukraine during the hostilities and the ways of its post-war recovery have been identified. The problems of tourism in Ukraine have been ongoing since 2014 (annexation of Crimea and hostilities in eastern Ukraine), then COVID-2019, and the intensification of the crisis since the beginning of Russia's full-scale military aggression against Ukraine on 24.02.22. The growth of domestic tourism during the hostilities in Western and Central Ukraine is determined.

The main problems of tourism during the war have been identified:

Ukraine is the most dangerous tourist country in the world in 2023;

the number and presence of particularly polluted areas of Ukraine;

war crimes against the environment;

complete reorientation of some tourist infrastructure facilities from tourism activities to other areas;

complete cessation of work due to lack of economic profitability;

partners in tourism activities have ceased to function or do not accept tourists;

a significant number of tourist facilities in the occupation zone;

destruction and damage to UNESCO World Heritage sites;

employees have gone abroad;

emotional exhaustion of the remaining employees and their unwillingness to work.

Thus, despite the ongoing military operations in many regions of Ukraine and the restrictions imposed, tourism continues to operate in safer regions where there is no active hostilities and the regions are located as far as possible from the borders of the occupied territories. Ways of post-war recovery have been outlined, including:

involvement of small and medium-sized businesses in the recovery;

development of memorial tourism - creation of excursion routes, including places of memory and tragedies, without any attractions;

the post-war economic recovery program should focus on technological modernization of the tourism industry, which will create demand for tourism services to improve existing targeted, regional and state tourism development programs in Ukraine;

attracting innovations in the implementation of specific instruments of state aid; promoting investment in tourism in Ukraine and facilitating partnerships with international companies; the effectiveness of state policy in the post-war period to restore tourism infrastructure and improve it.

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