COVID-19: Ukraine tourism industry will lose $1.5 billion

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The government of Ukraine intends to protect tourism enterprises from mass bankruptcies and to stabilize their work through tax exemptions.

The relevant bill, in particular, proposes:

1.exemption of operations for the provision of tourism services from payment:
value added tax;
income tax and ESA;
land tax and non-residential property tax;

2. cancellation of tourist tax until the end of 2020;

3. tax benefits for rent and land state
and communal property.

The Ministry of Culture and Information Policy estimates the loss of imports and exports of travel-related services from the pandemic at more than $1.5 billion.

“In this situation, domestic tourism has a much better chance of a quick recovery than outbound. If some of the tourist-oriented countries do not open their borders by fall, then Ukrainians will traveling inside Ukraine,” Government reported.

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