United Nations World Tourism Organization (UN Tourism) Director of External Relations, Beka Jakeli who oversees policy and relations with the Organization´s 160 Member States speaks about the challenges facing the industry and the assistance of international organizations in the constant and stable growth of tourism in Ukraine and its effective positioning on the world tourism map in the post-war period.

 

Tourism is a tool of peace. But it is usually used in post-war reconstruction. What does world experience say about the development of destinations during military operations?

It is obvious that during wartime, inbound and domestic tourism cannot function as it would under normal circumstances. However, there are two schools of thought regarding the role of tourism under such circumstances. The first perspective, held by some experts and industry professionals, dismisses any focus on the tourism sector during the war, viewing it as irrelevant to immediate needs and post-war recovery planning. I believe this approach is short-sighted. The second perspective, which I strongly align with, emphasizes the importance of proactively envisioning the long-term future of the tourism sector. Wartime planning and strategic thinking are essential for positioning tourism as a key driver of economic recovery and development once peace is restored.

I am a firm advocate of establishing a robust coordination mechanism during the war, bringing together a wide range of stakeholders directly or indirectly connected to tourism. This mechanism would enable the formulation of a common and consolidated strategy. Ensuring engagement from national and international actors - such as government bodies, regional administrations, Destination Management Organizations, the private sector, international organizations, donor institutions and other key stakeholders - is crucial in achieving this goal.

 

As far as I remember, you have practical experience in the post-war transformation of the tourism industry in Georgia?

I have been with the World Tourism Organization since 2012. Prior to this, I served as Deputy Chairman of the Georgian National Tourism Administration, where I was responsible for destination development, market research, international affairs and fundraising. I had the privilege of contributing to various incentive frameworks and schemes that supported the tourism industry within the context of Georgia’s successful economic reforms initiated 15-20 years ago.

My practical experience also includes crisis management. During the Russia-Georgia war in 2008, as Chairman ad interim of the National Tourism Administration, I led government efforts to ensure the resilience of the tourism sector in the aftermath of the 2008 conflict. The primary focus was on repositioning Georgia globally as a safe travel destination and stimulating inbound tourist flows, a task the government successfully accomplished within a remarkably short timeframe.

 

So, what can and should be done now for the tourism industry of Ukraine?

The primary focus of an effective coordination mechanism, involving national and international stakeholders, including industry representatives, should be to regularly monitor the situation in each region, assess recovery needs, and develop relevant strategies and plans. This includes formulating crisis management and communication plans, enhancing global outreach, and addressing other critical aspects of sector resilience and recovery.

 

What kind of assistance can the international community provide at this stage?

As an active participant in the coordination mechanism initiated and managed by the government, specifically the State Agency for Tourism Development of Ukraine, UN Tourism stands ready to respond to concrete requests and needs by providing expertise through tailored recommendations. Additionally, it will continue to facilitate collaboration and interaction between Ukraine and its extensive membership of 160 countries, support global outreach efforts, and mobilize donor institutions to aid in the recovery of Ukraine’s tourism sector.

 

What sectors may be of interest to donors?

Main focus should be on supporting infrastructural projects in regions and rural areas, implementing capacity-building programs and training, and advancing other key initiatives. Post-war efforts must prioritize the most severely affected territories in Eastern Ukraine. Providing targeted support and substantial incentives to micro, small and medium enterprises (MSMEs) will be crucial, as they will play a central role in driving Ukraine's long-term economic recovery and growth.

 

The Secretary-General of the UN Tourism, Zurab Pololikashvili, proposed creating a working group to support tourism in the economy of Ukraine. What is the status of this initiative?

In response to Russia's military aggression and violation of Ukraine's sovereignty and territorial integrity, Secretary-General Pololikashvili called on all Member States of the Organization to consider suspending the Russian Federation's membership, citing that Russia's actions contradicted the fundamental aims of UN Tourism. As a result, the General Assembly, during its first extraordinary session held in Madrid on 27 April 2022, decided to suspend the Russian Federation’s membership in accordance with Article 34 of the Statutes, thereby revoking its rights and privileges as a member.

The Organization continues to collaborate closely with Ukraine, actively supporting its participation in various platforms and initiatives. I would like to commend the leadership of Mariana Oleskiv, Chairperson of the State Agency for Tourism Development of Ukraine. From the outset, she has been instrumental in ensuring Ukraine's global outreach, mobilizing international attention, and securing support from the global tourism community. Ms. Oleskiv also serves as Chair of the UN Tourism Regional Commission for Europe, further highlighting her pivotal role in representing Ukraine on the international stage.

 

This is not your first visit to Ukraine. You visited both Lviv and Kharkiv in 2018 and 2019. What recommendations did you give before, are being implemented, what do you recommend now?

The ongoing war in Ukraine, changing consumer behaviour, the shift in travel demand post-pandemic and the growing focus on climate issues all necessitate new approaches for Ukraine, both during and after the war. In my presentation titled “From Sustainability to Global Recognition – Tourism as a Strategic Key to the Future of Ukraine,” delivered at the Third National Tourism Summit in Lviv on November 28 this year, I shared some key considerations regarding Ukraine’s wartime and post-war context.

The wartime period requires a strong coordination mechanism involving both national and international stakeholders. I have previously spoken at length on this subject.

The pressing question now is what actions will need to be taken after the war. What steps should be prioritized? It is essential to recognize that the ways businesses used to attract visitors before the pandemic will no longer be effective. A different approach is required. We are witnessing the emergence of new business models and a significant shift in consumer behaviour worldwide. As a result, companies must adapt their operations as well as tailor and diversify their offerings.

There are both positive aspects and challenges in this situation. On the positive side, Ukraine has gained exceptionally high global awareness. When any country seeks to attract international visitors and position itself as an attractive inbound destination, the first step is to raise awareness. People must know about the country itself. Today, Ukraine has heightened global awareness and the civilized world stands in solidarity with the country. Many people now want to visit and explore Ukraine, its rich cultural and natural heritage, and, most importantly, its people.

When discussing travel and tourism, which will be one of the key sectors driving Ukraine's recovery and long-term economic growth, the fundamental issue is attracting investment and launching proactive international investment campaigns.                       I strongly believe that attracting international venture capital for Ukraine’s tourism sector is critical for the country’s overall recovery and economic growth. Why is this so important? By developing supportive policies and offering incentives, such as tax credits or exemptions for venture capital firms, simplifying regulations to ease domestic and foreign investor participation, launching accelerator programs, and establishing seed funding initiatives, Ukraine has a tremendous opportunity to diversify and enhance its tourism ecosystem by supporting startups. Such policies would not only foster the rapid development of new tourism and hospitality businesses in the country, especially micro, small, and medium-sized enterprises, but would also ensure steady industry growth amidst the high competition in the global market. As I mentioned, the priority should be placed on regional and rural development, which can significantly contribute to Ukraine’s sustainable economic future.

 

Among your recommendations, significant attention is paid to the development of human capital to create jobs and ensure quality.

The global tourism market has never been as competitive and unpredictable as it is today. As such, synergy between employers and educational institutions is critical. However, there often exists a significant gap between what employers need and what educational institutions are able to provide, creating substantial challenges. With the emergence of new business models anticipated in the coming years, the demand for new skills in the industry will evolve rapidly. To address this, the first foundational step is to conduct regular surveys to assess labour market needs at both national and regional levels. Additionally, developing short-term training and capacity-building programs for the industry and local communities will be essential. Attracting leading international hospitality and tourism schools to enter the Ukrainian market should also be a priority. Furthermore, developing tailored educational programs and internationalizing curricula will be vital for modernization of the vocational and higher education system. Fostering strong Public-Private and Academia Partnerships (PPAP) will also play a crucial role in ensuring resilient and sustainable tourism sector in Ukraine.

 

You highlight the significant change in consumer behavior after Covid.

New digital and sustainable solutions for diversifying visitor experiences are among the core recommendations for Ukraine after the war. According to the latest survey conducted by the UN Tourism among its 160 Member States in 2023, the majority of countries view sustainability and the shift in consumer demand as long-term trends that destinations should capitalize on. Additionally, many countries identify growing demand for specific destinations and products as a key tool to unlock further economic opportunities.

Considering these trends and the long-term outlook, three key recommendations are given to Ukraine:

1. Leverage Ukraine’s rich cultural and natural heritage to create immersive visitor experiences. This includes promoting rural areas, community-based and eco-tourism products, health and wellness tourism, cultural tourism and gastronomy.
2. Foster responsible and climate-friendly travel through collaborative efforts between the public sector and industry stakeholders.
3. Develop an effective data intelligence system to better understand rapidly changing consumer behaviour and address the diversified needs of customers.

If asked how I envision the future of Ukrainian tourism, I would say that the key lies in authenticity, combined with unique visitor experiences, emotions and innovative solutions, meaning enhanced digital services. A key opportunity for attracting new visitors after the war will be targeting holidaymakers, while repeat visitors may primarily engage in business and professional travel, as well as visiting friends and relatives.

Overall, the critical factors for boosting both inbound and domestic tourism in Ukraine after the war should be based on the country's successful economic reforms, supportive policies and incentives. Addressing price-sensitivity, particularly in transportation, accommodation and other services, is essential to remain competitive globally. Finally, developing niche markets and specialized products should be a priority.

 

This is the most difficult segment for Ukraine - to attract tourists from India, China and Japan.

The following 13 outbound markets are recommended for Ukraine to target with active marketing campaigns after the war: The United States and Canada from the Americas; China, Japan, India and the Republic of Korea from Asia and the Pacific; Germany, the United Kingdom, France and Italy from Europe; and Saudi Arabia, Qatar, and the United Arab Emirates from the Middle East.

What is the rationale for focusing on these particular long-haul and high-yield markets? There are five reasons. First, the majority of these countries are developed economies. Second, they have a strong and growing middle class. Third, there is a rising demand for outbound travel following the pandemic. For instance, the travel expenditure of Germans and Americans abroad in the first quarter of 2024 surpassed pre-pandemic levels by 37% and 33%, respectively, while Italians spent 29% more and French travellers also showed similar increase in expenditure on outbound travel. Fourth, the average spending of nationals and residents of these countries significantly exceeds the travel expenditure of Ukraine's neighbouring countries and other nearby markets. The difference could even be two to three times greater. Fifth, nationals and residents of these 13 countries are keen to explore new tourism destinations in the coming years, and Ukraine presents a great opportunity to attract new visitors, given its global awareness and solidarity.