CHALLENGES AND PROSPECTS OF ATTRACTING INVESTMENTS IN THE TOURIST SECTOR OF UKRAINE IN THE POST-WAR PERIOD

Abstract

The article focuses on the challenges and prospects of attracting investments to Ukraine's tourism sector during the post-war period. The importance of investments for the development of any economy, particularly in the tourism industry, is highlighted. Global trends in foreign direct investments (FDI) in the tourism sector indicate a gradual recovery following the downturn caused by the COVID-19 pandemic. The report “Tourism Investment 2023” notes that between 2018 and 2022, over 2,400 FDI projects were announced, amounting to $175.5 billion in investments and creating more than 388,000 new jobs. The gradual recovery of international travel post-pandemic is fostering growth in tourism investments, reflecting the stability and recovery of the global economy. The tourism sector, heavily affected by the pandemic, saw a sharp decline in investments and job creation in 2020-2021. However, since 2022, there has been a positive growth trend, with Western Europe leading in FDI inflows, especially countries like the UK, the USA, Spain, and the UAE. The relevance of this study is linked to the necessity of identifying the key factors that promote the stable development of tourism after the crisis, as well as analyzing effective strategies for attracting foreign investments to develop the infrastructure of the tourism sector. For Ukraine, in the context of war and post-war recovery, investments in tourism may serve as a crucial factor for economic revival. Tourism holds great potential to generate new jobs, attract investments, and contribute to the development of infrastructure. The study examines the most effective strategies for attracting foreign investments and the prospects for rebuilding Ukraine's tourism infrastructure. It emphasizes the importance of creating a favorable investment climate through effective policy and alignment of interests among the state, private businesses, and local communities. The article also highlights the significance of strategic management in realizing Ukraine's tourism potential, identifying tourism as a priority area for state investment. It further points out the need for enhanced investments in the hotel infrastructure and underdeveloped tourism sectors, such as eco-tourism and digital services, to foster balanced growth in the industry. The ongoing war and shifts in the country’s economic structure may significantly affect investment levels in the long term. However, the tourism sector still demonstrates resilience and growth potential, making it an attractive investment opportunity for post-war economic recovery.