CURRENT STATE AND ROLE OF TOURISM SECTOR LENDING IN UKRAINE

Abstract

The statistics agree that the tourism sector plays an important role in the development of the country’s economy, and is also one of the biggest contributors to the sphere of services to the world. However, the tourism industry is facing problems due to the disruption of traditional financial systems that are outpacing its development. It is stated that one of the main ways of supporting the tourism sector is the generation of credits. Cost defects are one of the problems affecting a significant number of subjects in the sector. Realization of the potential of tourism enterprises in the face of growing economic and social problems is impossible without adequate support of a financial and credit nature. The authors appreciate that the availability of bank loans can be a means of unlocking the financial potential of travel companies and providing a financial buffer that will help them prepare for adverse events. The main key factors in the importance of developing bank loans for travel companies are the development and maintenance of infrastructure. Moreover, the tourism sector is limited to seasonal holidays, which can lead to inconsistent penniless flows. Also, a bank loan is essential for the advancement of innovation and new technologies. Through the war, in 2022 the number of tour operators decreased by 37%, and travel agents by 23%. Many enterprises in the tourism sector have closed their doors due to the marriage of financial assets. Lending to tourism enterprises in Ukraine takes up only a small portion of the total amount of bank loans, less than 0.03%. In 2022, there will be more than 22 Malay banks in the loan portfolio providing loans to businesses in the tourism sector. The authors appreciate the further implementation by Ukrainian banks of special programs for lending to the tourism sector itself. AT CB "PrivatBank" has already received a strong report. Back in 2018, we strengthened the business financing program “Land of Successful Business” and introduced a new type of credit product called “Tourist Cube”. The authors also speak out about the need to increase foreign lending, especially for Egypt, Lebanon and Montenegro.