Financing of tourism and recreation in municipal programs during the pandemic period: the case of Odesa

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The threat of rapid spread of COVID-19 infection was felt primarily by residents of big cities and in the economy of resort towns the tourism and recreation sector suffered the most. At the same time, the need for travelling and recreation in conditions of forced isolation and the need for rehabilitation of citizens has not decreased. Accordingly, the municipal authorities should carry out appropriate organizational and financial measures aimed at maintaining the functioning of the domestic market of recreational and tourist services. The study aims to analyze the indicators of financing tourism and recreation within the socio-economic programs of urban development in order to develop recommendations based on the results to improve this funding within the adaptation to the conditions of the pandemic period. This was done by analyzing the development programs of the city of Odesa in Ukraine, the effect of which extends to the pre-pandemic period of 2019, as well as the years of the pandemic 2020–2022. In substantiating the budgeting mechanism within urban development programs built on a systematic approach at the stage of comparative assessment of recreational expectations based on the modified Vroom model one took into account such indicators as: percentage of recreation costs, variability of prices for recreational services, anxiety associated with the consequences of the COVID-19 pandemic, etc. Within the proposed mechanism recommendations are aimed at justifying decisions regarding the variability of funding in urban programs relevant to the development of recreation and tourism, namely, by increasing the funding from the development budget and increasing control over the implementation of these programs, as well as improving the coordination function in order to prepare the ground for the implementation of “4P” and “people-first” models in recreation and tourism at the municipal level.

Acknowledgment
The paper contains the results of research conducted under the National Academy of Science of Ukraine’s grant Formation and Use of Natural-Resource Assets of the Recreational and Tourism Sphere (0120U100159) and the Nominal Scholarship of the Verkhovna Rada of Ukraine for Young Scientists-Doctors of Sciences for 2021 (0121U113482).

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    • Figure 1. The budgeting mechanism within the framework of programs for the development of tourism and recreation at the municipal level
    • Table 1. Expenditures on recreational and tourist-relevant programs in the structure of distribution of budget expenditures of the city of Odesa for the implementation of all local programs, thousand UAH, during 2019–2021
    • Table A1. Comparative assessment of recreational expectations, using the example of Odesa and Dnipropetrovsk regions in Ukraine, 2016–2020
    • Table A2. Situation with coronavirus infection, by region of Ukraine, %, 2020–2021
    • Table A3. Volumes of revenues from tourist tax as part of local taxes and environmental tax as part of other taxes of the city of Odesa, thousand UAH, 2019–2021
    • Table A4. Recreation-relevant branches regarding the distribution of expenditures in the budget of the city of Odessa, thousand UAH, 2019–2021
    • Table A5. Expenditures for the implementation of the public budget projects of the city of Odesa, thousand UAH, during 2019–2021
    • Conceptualization
      Mykola Petrushenko, Hanna Shevchenko
    • Data curation
      Mykola Petrushenko
    • Formal Analysis
      Mykola Petrushenko, Hanna Shevchenko
    • Investigation
      Mykola Petrushenko, Hanna Shevchenko, Alina Krivenceva
    • Methodology
      Mykola Petrushenko, Hanna Shevchenko
    • Validation
      Mykola Petrushenko, Hanna Shevchenko, Nina Khumarova
    • Writing – original draft
      Mykola Petrushenko, Hanna Shevchenko
    • Writing – review & editing
      Mykola Petrushenko
    • Funding acquisition
      Hanna Shevchenko
    • Project administration
      Hanna Shevchenko
    • Resources
      Hanna Shevchenko, Nina Khumarova, Alina Krivenceva
    • Software
      Hanna Shevchenko, Nina Khumarova, Alina Krivenceva
    • Supervision
      Hanna Shevchenko
    • Visualization
      Hanna Shevchenko, Nina Khumarova, Alina Krivenceva