Tax revenue from hotels increased by 43% in the first quarter.

Despite a decline in the number of tourists and many companies leaving the market altogether, the hotel industry is experiencing growth: Hotel tax revenue in the first quarter of 2025 reached ₴565.9M, 43% higher than the same period last year, according to the State Agency for Tourism Development.

Meanwhile, positive trends – an 11% increase – were also seen in tour operator activity: In the first half of the year, they paid ₴98.3M in taxes, up from ₴88.7M last year. Revenue from travel agencies also rose to nearly ₴75 million (+42%). The main reason for these indicators’ growth is inflation, which was 12% in 2024 compared to just 5.1% in 2023. Prices for accommodation, transportation, and related services have risen considerably. As a result, the average spending per customer in the tourism sector has increased, boosting tax revenue.

Additionally, some market players have shut down, and their clients have been absorbed by other hotels and operators. Another factor driving growth is the shift toward domestic tourism.