A Characterization of Public-Private Partnership as an Efficient Form of Investment Provision in the Sphere of Tourism in Ukraine

Abstract

The article is aimed at characterizing the public-private partnership (PPP) as an efficient form of investment provision for the tourism sector in Ukraine. This type of cooperation between the State and public sectors is common in Europe, but for Ukraine this cooperation is completely new and is used in terms of a rather narrow range. In particular, PPPs are most often used in the activities of purification, distribution of water, extraction and transportation of gas, and only 2% of public-private partnership agreements are related to the tourism industry. This percentage of agreements in the sphere of tourism is very meager compared to European countries, so the PPP is an urgent issue for research and implementation. Thus, the creation of special economic zones of tourism and recreational type is extremely promising, since it allows to form a strong tourism cluster, functioning for the development of tourism on the region and country levels, in order to meet the needs of tourists, make a profit and facilitate the development domestic tourism. The mechanism of formation of special economic zones of tourism and recreational type (SEZ TRT), or tourism cluster, on the terms of PPP for the purpose of investment provision of the tourism sector has its own features and requires both step-by-step control and organization, and these functions should be carried out both by the public and private sectors. In general, this form of cooperation is effective, has a synergistic effect and is beneficial for all participants in public-private partnerships, ensuring high development of infrastructure, services and related branches of the economy.

Keywords

• investments
• tourism
• public-private partnership
• special economic zones of tourism and recreational type
• cluster
• efficiency