Economics and Business Management

The paper deals with justifying the importance of the tourism industry as an effective component of the development of social, cultural, economic, political spheres of a region and a country. The purpose of the paper is to investigate the current state of the tourism sector in Ukraine; identify major problems of the tourism sector; suggest effective ways of its further development. It is proved that the development of tourism services, both domestically and internationally, requires high quality of such services and search for ways of its effective functioning. The paper touches upon the role of tourism in the economy, current state of tourism operations, distinguishes factors influencing the development of this industry. The study covers main indicators of tourist industry development in Ukraine as well as analysis of tourist tax revenue and tax payments to the state budget of Ukraine. The paper also explores the main problems that hinder the effective development of tourism in Ukraine, particularly in environmental, social, economic, political spheres which need to be addressed. The factors that reduce the volume of foreign tourist inflow to Ukraine and negatively affect the active promotion of the tourism product are identified. The paper proposes ways of improving the socio-economic development of both the tourism sector as well as the region and the state as a whole. The article emphasizes the creation of a positive image of Ukraine as a tourist state and this process should be based on the infrastructure modernization of tourism, resort, and recreational spheres. Among the effective ways to improve the tourism business efficiency in Ukraine, the article proposes stimulation of travel companies to promote inbound tourism, which will help to generate high profits and replenish the state budget regularly

tourism; tourism sphere; tourism industry; tourism flows; inbound tourism; outbound tourism