In the first quarter of 2025, tax revenues from the hotel business to the state budget of Ukraine reached UAH 565.9 million, which is 43% higher than the figure for the same period last year.
This is reported by Business • Media
Reasons for the Growth in Hotel and Tourism Sector Revenues
Despite a decrease in the number of tourists and the disappearance of some companies from the market, the hotel sector is showing positive dynamics. Experts attribute this growth to several key factors. First and foremost, in 2024, the inflation rate rose to 12% (compared to only 5.1% in 2023), which led to a significant increase in prices for accommodation, transportation, and related services. As a result, the average spending in the tourism sector increased, which directly impacted the growth of tax revenues.
Dynamics in Related Tourism Sectors
The increase in tax revenues is also observed in the activities of tour operators and agencies. In the first half of 2025, tour operators paid UAH 98.3 million in taxes to the budget, which is 11% more compared to last year (UAH 88.7 million). Travel agencies increased their tax payments to nearly UAH 75 million, representing a 42% increase.
An important role in this dynamic was also played by the industry’s reorientation towards domestic tourism. Additionally, as some hotels and operators ceased operations, their clients shifted to other market participants, which contributed to the concentration of demand and increased revenues for the active companies.
“Despite the decrease in the number of tourists and the fact that many companies have disappeared from the market, the hotel business is showing growth: tax revenues to the state budget from hotels in the first quarter of 2025 reached UAH 565.9 million. This is 43% more than in the same period last year.”