Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
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Vol. 39, Nº 70 (2021), 768-783
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Recibido el 15/07/2021 Aceptado el 22/08/2021
Transformations of the organizational
and legal mechanism of the Ukrainian
state policy in tourism and hospitality
DOI: https://doi.org/10.46398/cuestpol.3970.46
Roman Oleksenko *
Yevhenii Bortnykov **
Stanislav Bilohur ***
Nina Rybalchenko ****
Makovetska Natalia *****
Abstract
The purpose of the work is to analyze the transformation and
eciency of the organizational and legal mechanism of Ukraine’s
state policy in the eld of tourism and hospitality. Methods of
grouping, modeling, and forecasting, methods of theorization and
historical formalization, as well as methods of analysis, comparison,
sampling, and description of the system were used to substantiate scientic
principles and approaches for the development of organizational and
legal mechanisms of Ukrainian state policy in the eld of tourism and
hospitality. In addition, the study identies the conceptual foundations of
the organizational and legal mechanism of Ukraine’s state policy in the eld
of tourism and hospitality, which corroborates the importance of updating
national legislation, its unication with international, including European,
improving the Tourism and Resorts Strategy of Ukraine. As contributions
of the research andoutline the objectives and prioritymeasures of the
state policy in the eld of tourism and hospitality, the strategic tasks of
the state policy in this area are formulated, namely: to ensure progress
towards the formation of a unique tourist space with other countries of the
Commonwealth of Independent States (CIS).
Keywords: tourism; hospitality; state policy; organizational and legal
mechanism; tourism development strategy.
* Dmytro Motornyi Tavria State Agrotechnological University, Melitopol, Ukraine. ORCID ID: https://
orcid.org/0000-0002-2171-514X. Email: roman.xdsl@ukr.net
** Zaporizhzhia National University Zaporizhzhia Oblast, Ukraine. ORCID ID: https://orcid.org/0000-
0002-9602-0019. Email: e.bortnikov@ukr.net
*** Alfred Nobel University, Dnipro, Ukraine. ORCID ID: https://orcid.org/0000-0001-6755-7231. Email:
bbilogur@gmail.com
**** Dmytro Motornyi Tavria State Agrotechnological University, Melitopol, Ukraine. ORCID iD: https://
orcid.org/0000-0003-3358-2249. Email: ninarybka07@mail.com
***** Zaporizhizhya National University (Ukraine). ORCID ID: https://orcid.org/0000-0003-3735-2205.
Email: natalia.v.mak@gmail.com
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Transformaciones del mecanismo organizacional y
jurídico de la política estatal de Ucrania en el ámbito del
turismo y la hospitalidad
Resumen
El propósito del trabajo es analizar la transformación y eciencia del
mecanismo organizativo y legal de la política estatal de Ucrania en el campo
del turismo y la hostelería. Se utilizaron métodos de agrupación, modelado
y pronóstico, métodos de teorización y formalización histórica, así como
métodos de análisis, comparación, muestreo y descripción del sistema
para fundamentar los principios y enfoques cientícos para el desarrollo
de mecanismos organizativos y legales de la política estatal de Ucrania
en el campo del turismo y la hostelería. Además, el estudio identica los
fundamentos conceptuales del mecanismo organizativo y legal de la política
estatal de Ucrania en el campo del turismo y la hostelería, lo que corrobora
la importancia de actualizar la legislación nacional, su unicación con la
internacional, incluida la europea, mejorando la Estrategia de Turismo
y Resorts de Ucrania. Como aportes de la investigación se delinean los
objetivos y medidas prioritarios de la política estatal en el ámbito del
turismo y la hostelería, se formulan las tareas estratégicas de la política
estatal en este ámbito, a saber: asegurar el avance hacia la conformación de
un espacio turístico único con otros países de la mancomunidad de Estados
Independientes (CEI).
Palabras clave: turismo; hotelería; política de estado; mecanismo
organizativo y legal; estrategia de desarrollo del turismo.
Introduction
It is well known that the tourism industry around the world suers
losses on a global scale as a result of measures to counteract the ID-COV19
pandemic and the uncertainty of further developments: 96% of tourist
destinations have been subjected to restrictions. According to various
data in 2020 international tourist revenues fell by 58-78% compared to
the previous year. According to the experts estimate that the recovery of
demand to the level of 2019 will last at least two years, while at the same
time airlines will have to increase the travel cost by an average of 43-54%.
Domestic tourism also suered signicant losses: in particular, the losses
of the tourism industry in Ukraine are estimated at more than 150 million
dollars. The late start of the resort and recreational season as a result of
the restrictive measures has caused a cumulative eect that has had a
negative impact on the leisure and travel industry, and related industries
- the hotel and restaurant business, transport (passenger transport), retail,
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
entertainment industry and cultural institutions activity. Also, there is a
drop in Ukraine’s tourist attractiveness due to the long military conict
in the East of Ukraine, the annexation of the Crimean peninsula, the low
level of quality tourist infrastructure, the lack of a coordinated marketing
promotion strategy of the Ukrainian national tourist product in the world
markets.
It is clear that adequate responses to such challenges are impossible
at the local or sectoral level. Ways out of the crisis should be sought at
the level of national and supranational political institutions, formulating
political decisions that can keep the balance, and producing adequate
mechanisms of state and interstate regulation, especially in those spheres
of social life that are most aected by the situation, thus threatening overall
stability. Despite this, the problems of reforming public policy in the socio-
humanitarian sphere, with tourism as an important component, improving
the management of social and humanitarian development, strengthening
the social partnership role (Timoshenko, 2020) are actualized.
It is not accidental to choose tourism and hospitality as a subject eld
for research: they belong to those socio-cultural practices which obviously
integrate global transformation processes of modern society - as the famous
philosopher B. Markov noted at the beginning of this century, tourism
itself can be qualied as «a form of globalization» (Markov, 2003: 188).
The tourism phenomenon absorbs qualitative characteristics of modern
global society: mobility, emphasizing consumer priorities, virtualization,
visualization, informatization, and so on. Taking into account the scale
and inuence of the tourism phenomenon, there is no way to ignore its
instrumental potential, including for ideology: the ability to introduce into
the public consciousness and public practice the basic social policy ideas, to
take a direct part in the project of building the equal opportunities society,
etc., - in fact, tourism and hospitality in the newest global space act as
conductors of social cohesion ideology (Oleksenko et al., 2017). So, despite
the fact that tourism and hospitality are a holistic phenomenon - cultural,
social, economic, political, etc. - and a signicant factor in the formation
of the global socio-cultural space (Bortnykov et al., 2021), they can be
considered among the priority areas of political and economic eorts on
the part of state and supranational institutions in the context of the crisis
recovery tasks.
1. Objectives
Therefore, the purpose of the proposed study is to analyze the
transformation and eectiveness of the organizational and legal mechanism
of Ukrainian state policy in tourism and hospitality.
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2. Materials and methods
In order to substantiate the scientic foundations and approaches to
the development of the organizational and legal mechanism of Ukrainian
state policy in tourism and hospitality sphere, there were used methods
of grouping, modeling and forecasting. To determine the organizational
and legal mechanism components of the state tourism policy, as well as
the genesis of the mechanisms formation in Ukraine, there were used
the theorizing and historical formalization methods. In order to study
foreign public policy practices in the tourism sphere from the position of
determining the perspective directions of their consideration in Ukraine
the methods of system analysis, comparison, sampling and description
were used.
3. Results and discussion
3.1. Ukrainian state policy in the tourism and hospitality sphere
Before we proceed directly to the analysis of Ukrainian state policy
in the tourism and hospitality sphere and its organizational and legal
mechanism in the studied sphere, let us make the necessary clarications
in the wording we have chosen for its designation - «the tourism and
hospitality sphere». Being aware that in modern socio-economic conditions
of Ukraine, hospitality is positioned mainly as an independent industry that
provides a person with non-material production services and satisfaction
of social needs, gradually separating into a separate national economy
sphere, within the proposed study, however, we will consider it through the
prism of tourism - as a separate tourism sector, especially important for the
development of inbound and domestic tourism - and only in that part of
it, which is designed to meet the needs of accommodation and catering for
tourists (cf.: delimitation of hospitality for tourists and hospitality for the
population – (Dishkantyuk, 2016: 92)). In addition, it is worth considering
the fact that in foreign sources (previously very popular in the post-Soviet
space works of L. Wagen, J. R. Walker, etc.) it is necessary to consider the
fact that the hospitality industry is considered in the international literature.
Hospitality industry is considered as a combination of hotel and tourism
business, as a separate tourism industry sector, which provides tourist
accommodation, as well as related sectors of trade, catering, entertainment
industry, etc. (Wagen, 2001; Woker, 2012).
Another argument in favor of our chosen formulation - despite the
insistence on positioning hospitality as a separate economic sector, the
issues of its institutionalization is still open (there is no scientic denition
of this sphere as a scientic category and its interrelation with other
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
national economy sectors, does not allow to determine the priority areas
of hospitality management, providing it with the necessary resources,
etc. (Dishkantyuk, 2016: 86)), and then the public policy problems in this
sphere and public management of the hospitality industry still remain
almost outside of scientic research, and the lack of a systemic vision of the
hospitality industry development does not allow for eective government
regulation of the national economy sphere (Dishkantyuk, 2016: 87). After
all, in practice we most often observe a combination of hotel and restaurant
services with the tourism enterprises services in the general course of
tourist business development. Despite this, in the proposed study, talking
about Ukrainian state policy in the tourism and hospitality sector, we will
take into account the hospitality industry only in the part where the sphere
development is based on the institutional basis for state regulation of the
tourist sphere.
State policy in tourism and hospitality is the inuence of the state
on the activities of economic entities and market conditions to ensure
proper conditions for the market mechanism functioning, implementation
of state socio-economic priorities and elaboration of unied industry
development concept (Melnichenko et al., 2017). In addition, it is a complex
organizational process that includes the elaboration procedure of state
policy on tourism and hospitality development, justication of its goals,
objectives, main directions, selection of tools and production methods. This
policy is set in motion by the appropriate organizational and legal public
policy mechanisms (Oleksenko et al., 2013; Timoshenko, 2020).
Organizational and legal mechanism analysis of state policy in the
Ukrainian tourism sphere gives reason to believe that in the next 5-6 years
it will develop under the strategic directions dened by the Government.
Strategy, as it is known, is a generalizing plan of certain activities, covering
a long period, a way to achieve a complex goal. The strategy is considered
as a long-term, consistent, constructive, rational, supported by ideology,
resistant to uncertainty of environmental conditions, accompanied by
constant analysis and monitoring in the process of its implementation and
aimed at achieving success in the end. The strategy tends to move from
abstraction to specicity in the form of concretized plans and is an eective
tool for the stable functioning of the state in general and the regions in
particular. In Ukraine since 2015, the Strategy of Sustainable Development
of Ukraine (Strategy, 2015), the action of which is calculated for the period
until 2020 In 2019, the Decree of the President of Ukraine № 722 / 2019
on the goals of sustainable development of Ukraine for the period until
2030 (Presidential Decree, 2019), which noted that the goals of sustainable
development of Ukraine until 2030. are benchmarks for the draft forecast
and program documents, draft regulations to ensure a balance of economic,
social and environmental dimensions of sustainable development of
Ukraine (Presidential Decree, 2019).
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Despite this, we consider it necessary to outline the Tourism and Resorts
development strategy for the period up to 2026r. (Strategy, 2017), approved
by the Government of Ukraine in 2017. (Order of the Cabinet of Ministers of
Ukraine, 2017) from the position of its compliance with the requirements
of time and society (Rybalchenko, 2020a; 2020b). Ukrainian tourism and
resorts development strategy for the period up to 2026. Determines the
necessity of entrepreneurship development (activation) in the specied
sphere. Its peculiarity lies in the fact that it is carried out within two planes:
state and market. In this lies the dichotomy of tourist sphere development, as
the state implements its function «from the top down», and the enterprise,
on the contrary, is repelled from the needs of the consumer. To subordinate
the realization of functions to the interests of the consumer is the key task
of the management programs of tourist business enterprises. Development
of the tourism sphere state policy system should be streamlined within a
single multi-sectoral body, whose primary tasks should go out to develop
regulations that streamline the institutions activities of various ownership
forms and departmental aliation, ensure the implementation of tourist
and recreational functions in the state and regions (Pomaza-Ponomarenko,
2015).
Tourism and resorts development strategy contains denitions of the
main strategic objectives of tourism development, taking into account the
current state and trends in the development of Ukraine. In our opinion, the
urgent task for Ukraine is to harmonize the conicting order of adoption
of the Strategy for the development of tourism and resorts in Ukraine,
concerns the long-term planning of such development. In Ukraine, this
type of planning, particularly in the tourism sector, is carried out for a
period of more than 5 years, but no more than 10 years, certifying its short-
termism. However, the world experience shows the advantages of another
widespread planning practice - medium-term planning of tourist sphere
development, assumes its achievement and retention at the proper level
for not less than 10 years (Kotler et al., 2008). Despite this, we can oer a
more systematic approach to the implementation of tourism planning in
Ukraine, that is, taking into account the positive foreign experience in this
area, covering compliance with such principles of public administration:
consistency, science, innovation, strategic and the like. According to these
principles, the development of the tourism sector should take place with
the maximum denition and consideration of factors, risks, challenges and
threats to the development of tourism, as well as changing conditions of its
external institutional environment (Apaza-Panca et al., 2020)
Based on the above, we believe that it is necessary to prepare appropriate
amendments to the Law of Ukraine «On Tourism» (Law of Ukraine,
1995), as well as the Strategy for Development of Tourism and Resorts of
Ukraine (until 2026.) (Strategy, 2017). We believe that the Law of Ukraine
«On Tourism» should contain an appropriate section «Planning the
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
development of the tourism sector» and contain a reference to ensure the
long and medium term planning in this area. The strategy should form the
basis for its development in the long and medium term. In continuation,
we note that the implementation of this requirement is also not possible by
taking into account the principles of time management. Consequently, it is
important to dene in the Law of Ukraine «On Tourism» a clear rule on the
timing of the adopted strategy in this area, and prevail in this medium- and
long-term strategies for the development of the tourist sector.
3.2. Organizational and legal support for state policy in the
tourism sphere in the CIS countries and the prospects for the
formation of a unied tourist space
In our opinion, a promising and, what is important, strategic direction
in the development of tourism sphere is to ensure progressive movement
towards the formation of a single tourist space, which is possible within
the framework of transboundary cooperation. It provides for active joint
activities, in particular the subjects-participants of Euroregions, among
which, on the one hand, there are regions of Ukraine, having a common
border with the region of another country (for details see: Diganova,
2019). In addition, the potential is the formation of a common tourist
space with the participation of member countries of the Commonwealth of
Independent States (CIS).
Assessing the organizational and legal support of the state policy
in the tourism sphere in the CIS countries, it should be noted that the
formation process of a unied organizational and legal support, design and
implementation of tourism activities in the CIS countries has developed
consistently and experienced certain peaks, largely overlapping with
changes in the life cycle of domestic tourism product and key destinations
of the Commonwealth countries. Fig. 1 shows the evolution of the main
normative act regulating the recreation and tourism sphere in the CIS
countries during the existence of this association, starting from 1993. and
up to the present time. Let us consider each of the above-mentioned stages
in more detail in terms of the main legislative initiatives for the formation
of a unied tourism space for the CIS countries.
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Fig. 1. The main stages in the establishment of organizational
and legal support for the tourism sector development in the
CIS. Source: compiled on the basis of (Law of Ukraine, 2000;
Chan Thuy Vang, 2016).
The rst attempt to unify the organizational and legal provision of the
CIS countries’ tourism sphere should be recognized the Intergovernmental
Agreement «On Cooperation in the Tourism Sphere» of 23.12.1993
(Agreement, 1993), which was based on the principles of the Manila
Declaration on World Tourism (1980, Philippines) and the Hague
Declaration on Tourism (1989, The Netherlands). It is appropriate to say
that this deal is a certain declaration of intent, which proclaims a course
for the formation of a unied tourism space and a common service market.
At the same time, this intergovernmental legislative act does not contain
specic forms and mechanisms for implementing the general goal, does
not dene the specics of tourism and recreational potential of the CIS
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
countries, does not provide recommendations on possible nancing sources
for proposed joint projects in the tourism sector. All this contributed to the
further transformation of the considered normative act from a declarative
to a more specic legal document, which creates a functional basis for the
development of the CIS single tourist market.
The legislative act «On the basic cooperation principles of the CIS
member states in the eld of tourism,» adopted by the Interparliamentary
Assembly of the CIS member states on October 29, 1994 (Recommendatory
legislative act, 1994), contained a number of important legal and regulatory
aspects, which include the following:
• formation of a unied approach to dening the key categories, which
can be used to characterize and regulate the tourism services market
in the future. These might include the concept of «tourist», «tour»,
« tourism resources «, etc.
• denition of specic competencies of the Commonwealth member
states, which include « state property management in the tourism
sphere, funding of public administration and supervision of tourist
rights, denition of the procedure for granting privileges to certain
categories of tourists», etc.
• characterization of the tourists’ rights and obligations, with a
separate regulation of foreign nationals’ situation.
• development of methodological guidelines for the tourism activities
certication and use voucher as a policy tool in the tourism sector,
which is an individual or group document issued by a tourism
organization, is a form of contract between the supplier and the
consumer of tourist services and conrms their payment.
The normative act under consideration had a recommendatory character,
existed for 12 years and was transformed, on the basis of a collegial decision
of the Interparliamentary Assembly of the CIS member states (Decision NO.
27-15, 2006), into the Model Law on Tourist Activity» (Decision NO. 27-15,
2006). In comparison with the previous legal document, this legislative act
has a number of indisputable advantages, which include:
• concretization of basic denitions and expansion of the necessary
terms list; thus, the model law mentions such relatively new for that
time socio-economic categories as «tourism registry», «timeshare»,
«promotion of tourism industry entities’ services», «tourist
voucher», etc.
• characterization of the main types and varieties of tourism, including
such categories as «international tourism», «domestic tourism»,
«ecological tourism», «sustainable tourism development» (as
a concept of such development), etc. were introduced in the
rulemaking, etc.
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• signicant attention to the issues related to the state regulation
of activities in the tourism sphere, which is caused by a return to
the position of the dening role of the state as a key regulator in
the development and stimulation of economic growth of tourist
destinations;
• the established unied methodological basis for the characterization
and classication of tourism resources.
• analyzed issues related to the creation and development of tourist
and recreational areas as separate organizational and economic
formations, with the help of which it is possible to accelerate
the renewal of infrastructure of tourist destinations and ensure
sustainable demand for appropriate resources (Decision NO. 27-15,
2006).
In general, it is quite a large document and compared with previous
versions, contains 17 chapters, including 67 articles. It is worth noting that
over time there was a need to update the legal norms in accordance with the
demands of modern society, and such an attempt was made in 2015 During
this period was created a new draft version of the model law, which aims to
update the current trends in tourism activities, including issues related to
the tourists’ safety, with the need for permanent nancing of tour operators
and travel agents, increasing the responsibility of tourist business entities
and so on. Considering this and taking into account the changing socio-
economic and socio-political situation in most CIS countries, there was a
need for law-making activities on the formation and implementation of
uniform legal norms, which would be as much as possible consistent with
the strategic development trajectories of the member countries of the
association.
In our opinion, it is necessary to pay attention of parliamentarians of
the Inter-Parliamentary Assembly of the CIS member states to nalize
or create a new model law, as well as to develop and adopt specialized
normative acts which regulate tourism activities and certain tourism
types, primarily medical and therapeutic, which is especially relevant in
connection with the expanding capacity and demand of the overall tourism
market. Undoubtedly, such rulemaking activity will contribute to updating
the domestic legislation in the tourist sphere (Kulagina et al., 2009: 27-32).
3.3. Development Prospects of Organizational and Legal
Mechanism of State Policy of Tourism in Ukraine
Normative activities to update the CIS modular legislation in the eld
of tourism will contribute to the improvement of the domestic regulatory
framework in this area, namely: The Law of Ukraine «On Tourism» and the
Tourism and Resorts Development Strategy (Fig. 2). Moreover, one of the
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
objectives of the CIS modular legislation in the tourism sphere is to help
in the development of national legislation of the CIS member states in this
area.
Fig. 2. Development prospects of the organizational and legal
mechanism of the state policy of the tourism sphere in Ukraine.
Source: author’s elaboration.
Ensuring the development of tourism in Ukraine requires a balanced
system of its monitoring. Analysis of the Tourism and Resorts Development
Strategy of Ukraine contains a forecast assessment of its condition for the
period up to 2026 Among the indicators of development the following are
dened:
1. the number of foreign tourists entering Ukraine, million people.
2. the number of subjects of tourist activity, thousand pcs.
3. the volume of revenues to local budgets from the payment of tourist
fees, mln.
4. the volume of revenues to the consolidated budget (taxes and fees)
from the activities of tourist entities, billion, UAH.
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5. the number of jobs in tourism, thousand people.
6. the number of domestic tourists, thousand people.
7. the number of excursionists, thousand people.
At the same time, these indicators of development of the tourism sector
of Ukraine requires clarication, taking into account the accumulated
foreign practice of assessing the state of such sphere, in particular UNWTO.
Moreover, the Strategy under consideration species the requirement to
take into account the UNWTO recommendations and to improve the
domestic system of statistical accounting, and then the methodological
approaches to the assessment of the tourism sector. On this basis, we justify
the need to assess the state of functioning and development of the tourism
sector of Ukraine not only from the position of determining the dynamics
of the relevant market, but also by such indicators:
- The volume of services of tourist sector (mln. UAH) AND the share in
GDP (%);
- the volume of tourism services (mln. UAH) AND their share in GDP
(%);
- the number of employees in the tourism sector (thousand PE.) AND
the share of employees in the national economy (%);
- the number of those employed in the tourism sector (thousand P.M.)
AND the share of those employed in the national economy (%);
- the volume of exports of tourist services (mln. UAH) AND the share
in total exports (%);
- index of the level of development of tourist functions (beds / per
100 inhabitants) (Rybalchenko, 2019; Pomaz-Ponomarenko et al.,
2020).
Therefore, the main goal of Ukraine is to implement regulations, in
particular the Strategy for the Development of Tourism and Resorts to
achieve the following indicators:
- Improving the competitiveness of the domestic tourist product can
be produced at the national and regional levels;
- improving the standard of living and quality of life of the Ukrainian,
which requires ensuring economic growth of the state as a whole, its
social and environmental security, improving the quality of services
in the tourism sector (Oleksenko et al., 2021)
- Creating new jobs and expanding opportunities for self-employment
in the tourism sector by providing them with state support for the
development of small and medium-sized businesses;
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Roman Oleksenko, Yevhenii Bortnykov, Stanislav Bilohur, Nina Rybalchenko y Makovetska Natalia
Transformations of the organizational and legal mechanism of the Ukrainian state policy in
tourism and hospitality
- Create a modern tourist information infrastructure, as well as
disseminating information about the tourist resources of Ukraine in
the international information space.
Conclusion
The conceptual foundations for the development of organizational and
legal mechanism of public policy of Ukraine in tourism and hospitality,
which justied the importance of updating national legislation, its
unication with international, in particular the European, the improvement
of the Development Strategy of Tourism and Resorts of Ukraine (for the
period up to 2026). In this case the priority goals and measures of state
policy in the tourism and hospitality sphere are outlined. Also formed the
strategic objectives of state policy in the tourism sector, namely: ensuring
progressive movement towards the formation of a single tourist space with
other countries of the Commonwealth of Independent States (CIS).
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