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Ukraine’s western regions see tourism boom
Ukraine collected 178 million hryvnias ($4.3 million) in tourism taxes during the first seven months of 2025, a 35% increase over the same period last year. The taxes were mostly collected in the country’s western regions, which demonstrate remarkable economic resilience despite the ongoing war.
The growth concentrated in western regions hundreds of kilometers from active fighting reveals how Ukraine’s economy adapts to wartime conditions.
Areas facing only occasional air raid threats rather than ground combat generate millions in tax revenue and offer insights into the country’s post-war economic potential.
Meanwhile, according to the State Agency for Tourism Development, broader tourism industry business taxes exceeded pre-war levels by 27% in the first quarter of 2025 compared to 2021.
West dominates tourism revenue
As the State Tax Service reported, Lviv Oblast generated 33.2 million hryvnias ($0.8 million) in tourism taxes, while Ivano-Frankivsk Oblast contributed 26.1 million ($0.63 million) and Zakarpattia Oblast added 15.3 million hryvnias ($0.37 million).
These hilly to mountainous regions offer skiing, hiking, and cultural attractions while remaining largely safe from Russian attacks targeting mostly eastern industrial centers.
Despite regular air raids, Kyiv continues leading overall collections at 42.5 million hryvnias ($1.03 million), demonstrating the capital’s enduring appeal for domestic tourists and the limited international visitors still traveling to Ukraine.
The tourism industry paid 799 million hryvnias ($19.3 million) in total taxes during the first quarter of 2025—30% more than in 2024, nearly double the amount from early 2023.
Domestic spending drives growth
Current wage growth supports domestic tourism, while government wage projections through 2028 suggest this spending power will continue expanding.
Due to inflation and higher operational costs, tourism services have increased 20-40% in price, contributing to revenue growth even as visitor numbers remain constrained. For example, the Carpathian mountain resorts became 10-25% more expensive during the 2024 summer.
Post-war potential
Ukraine’s pre-war peak tourism tax collection reached 244 million hryvnias ($5.9 million) annually in 2021, meaning current levels already approach three-quarters of that benchmark despite the continuing war.
The geographic concentration in western regions provides a template for post-war development.
Lviv, with its UNESCO World Heritage architecture, and the Carpathian Mountains, offering year-round outdoor activities, demonstrate tourism viability even under wartime constraints.
Economic resilience beyond the front
The tourism figures complement broader indicators showing Ukraine’s economic adaptation to wartime conditions. The European Bank for Reconstruction and Development projects 3.3% GDP growth in 2025, while inflation has moderated to 14.1%.
For international investors evaluating Ukraine’s post-war potential, the tourism sector’s performance in relatively secure regions suggests substantial economic activity continues beyond areas directly affected by fighting.
A consumer base earning higher wages and already spending on domestic travel could rapidly expand to accommodate international visitors once security conditions improve.
