Ukraine is
rather unexplored tourist land: though being the 12th most popular tourist
country according to the United Nations World Tourism Organization (UNTWO),
Ukraine remains almost unknown to foreigners. Most of about 20 million visitors
who come to Ukraine every year are from CIS countries.
Why is it
so? There is a number of reasons, including poor advertising, infrastructure
and ex-soviet heritage of managing business. However, it may soon change, and
then tourists will uncover enchanting and warm Black Sea coast with snow-white
mountains, hundreds of ancient castles – restored or in untouched remnants, the
Carpathian Mountains with ski resorts, medicinal waters, incredibly hospitable
people and bright cultural traditions; churches with roofs of gold and very
green cities with beautiful parks, once created for kings and nobleman.
And when the
time comes, any tourist should be aware not only of local traditions and
disposition, but of relative legal regulations. So what about Ukrainian tourism
legislation? In 1995, Ukraine – the first from the CIS countries – adopted the
Law “On Tourism”, tourism-related norms are included into laws on licensing,
foreign economic activities, foreigners’ status in Ukraine, etc. Also, Ukraine
is a party to many relative international conventions and bilateral agreements.
Who is doing
business on the tourist market in Ukraine? They are tour operators, tour
agents and other natural persons and legal entities, rendering services of
temporary accommodation, food, excursion, leisure and other tourist services.
Tour operators are the major players. They are legal entities, established
under the legislation of Ukraine, who are solely engaged in organization and
support of tourism, tourist services and agency activity in concomitant
services. Tour operators directly render services of temporary
accommodation of tourists or purchase such services from other persons with the
aim to render them for tourists directly or through tour agents via granting a
tourist voucher (a form of written agreement on tourist services according to
the new Tax Code of Ukraine). Until November 2003, reception and services for
foreign tourists was a subject to licensing. Presently, there is no such
separation; however, activities of tour operators are still subject to
licensing.
Tour agents
are numerous, but less influential market participants. They are natural
persons-entrepreneurs or legal entities established under the legislation of
Ukraine, engaged in agency in tourist sphere, in particular, sale of tourist
services of tour operators. Tour agents can purchase tourist vouchers from tour
operators and transfer such vouchers to tourists or other tour agents in the
name of and/or by order of tour operator.
Of-course,
there are also other persons involved in tourist services in Ukraine: guides,
interpreters, sport instructors and others – natural persons, engaged in
activities related to tourist support. One thing should be mentioned about
them: current Ukrainian legislation requires obtaining a permit for
rendering tourist support services (except cases, when person works in
organization-owner or organization-manager of visited tourist object). Natural
persons who are not registered as entrepreneurs and do not have a permit mentioned
herein can render services of temporary accommodation, prepare meals, etc.
What to
worry about? According to the opinion of some professional organizations in Ukraine,
the Ukrainian tourism legislation is rather declarative and needs to be
adjusted with international conventions and European practice. One of tourists’
needs in Ukraine is a model contract on tourist services, approved on a
legislative level. Presently, contracts with Ukrainian tourist companies should
be a subject of careful examination by a tourist, since the contract may
considerably advantage the company and not the traveler.
Financial
guarantees from tour
operators and tour agents for cases of their insolvency are obligatory and are
realized through bank guaranties given to tour operators and agents. The
minimal amount of such financial security is EUR 20000 for tour operators
(EUR 10000 for tour services inside Ukraine) and EUR 2000 for tour agents.
Tourists have a right to know the actual amount stated in a bank guarantee and
a bank – guarantor. Pay attention: contract on tourist services can include a
provision limiting the liability of tour operators and tour agents by the
double amount of the tour’s price in case a tour operator (tour agent) is
solely liable for damages caused by one of the tour services’ performer.
Some
countries have concluded bilateral agreements on tourism with Ukraine;
however, the provisions of such agreements are very general and rarely
influence tourists. However, as a fact Ukraine declares the protection of legal
rights and interests of foreign tourists according to the Ukrainian legislation
and international agreements of Ukraine. So, one can check the relative
agreement. Just in case.
As for the
insurance, the situation is rather interesting: insurance covering emergency
medical aid is obligatory (and only Ukrainian insurance companies can give
such insurances), but no separate medical insurance is required. Thus,
statements about obligatory medical insurance for foreigners visiting Ukraine
contradict legislation. Foreigners can receive medical aid in Ukraine for
payment or via concluding medical insurance agreements with Ukrainian insurance
companies on a voluntary basis.
Possible
(minor) additional expenses when travelling Ukraine: local authorities determine
the size of local tourist duty. Foreigners pay such duty in case of visiting
and staying (temporary accommodation) on the territorial unit where the duty is
set. The amount of the duty is from 0,5 to 1 percent from the price of
accommodation (habitation) for all the period of staying on the territorial
unit, minus value added tax. The duty may be paid (in the name of a tourist) by
the hotels’ administration, legal entities and natural persons-entrepreneurs
engaged in accommodation activities or authorized as tax agents by the
corresponding local body. The amount of the duty shall be separately included
into the accommodation receipt. Persons coming to sanatoriums according to the
sanatorium voucher or coming to boarding house do not pay a tourist duty.
How long a
foreigner can stay in Ukraine? General rule defines the following: not more than 90
days (cumulatively) during 180 days from the day of the first entry in Ukraine,
unless otherwise is defined in the applicable international agreements. “Unless
otherwise” means that Ukraine can sign a bilateral agreement with a country or
an international agreement with other provisions and such agreements will
prevail. For instance, according to the WTO rules, since May 2008 (i.e. from
Ukraine’s entering into the WTO) foreigners who are citizens of WTO members can
stay in Ukraine for 180 days during the year. In case of violations of these
rules, Ukrainian courts or border guards can impose a moderate fine.
When
returning home, foreigners should keep in mind that like in many countries Ukraine
prohibits export of certain products. This concerns exporting some products for
industrial purposes and of course – certain cultural values (mostly of national
importance and included into special registers). When exported, all cultural
values – objects of material and intellectual values with artistic, historical,
ethnographic or scientific value (antiques, paintings, sculpture, traditional
folk art, archaeological objects, rare philatelic objects, medals and coins, rare
collections, family values, etc.) are subject to obligatory state expertise and
certification. The expertise is very inexpensive, but takes 30 days. Export of
modern souvenirs, modern art, goods of serial or mass production, created after
1950, usually do not require state expertise or permit.
Doing
business in Ukraine: can foreigners be engaged in tourist business in
Ukraine? Legal entities, established according to the foreign law, as well
as foreigners and stateless persons, can be engaged in tourist business in
Ukraine according to the rules of relative international agreements (if there
are the ones) and Ukrainian legislation. According to the general rule, to
carry out tourist business in Ukraine foreign legal entities and natural
persons can establish companies in Ukraine and receiving licenses, when
required (as for the tour operators’ activities). Agency business on the
territory of Ukraine upon concluding direct agreements on tourist services with
foreign subjects of tourist activities is prohibited (such activity is allowed
only through the tour operators, established according to the legislation of
Ukraine). Agreements, concluded with the violations of this demand are void. As
for tourist support on the territory of Ukraine, it can be rendered by citizens
of Ukraine or residents of Ukraine, unless otherwise is stated in the
international agreements of Ukraine.
So what to
wait for? High national tolerance, visa-free entrance, great and rather safe
natural environment, many English speaking people and beautiful sights make
Ukraine nice and pleasant place to visit. Now you know the rules, so take the
liberty to be among the first!
Україна: прихована велич
Ukraine is rather unexplored tourist land: though being the 12th most popular tourist country according to the United Nations World Tourism Organization (UNTWO), Ukraine remains almost unknown to foreigners. Most of about 20 million visitors who come to Ukraine every year are from CIS countries.
Why is it so? There is a number of reasons, including poor advertising, infrastructure and ex-soviet heritage of managing business. However, it may soon change, and then tourists will uncover enchanting and warm Black Sea coast with snow-white mountains, hundreds of ancient castles – restored or in untouched remnants, the Carpathian Mountains with ski resorts, medicinal waters, incredibly hospitable people and bright cultural traditions; churches with roofs of gold and very green cities with beautiful parks, once created for kings and nobleman.
And when the time comes, any tourist should be aware not only of local traditions and disposition, but of relative legal regulations. So what about Ukrainian tourism legislation? In 1995, Ukraine – the first from the CIS countries – adopted the Law “On Tourism”, tourism-related norms are included into laws on licensing, foreign economic activities, foreigners’ status in Ukraine, etc. Also, Ukraine is a party to many relative international conventions and bilateral agreements.
Who is doing business on the tourist market in Ukraine? They are tour operators, tour agents and other natural persons and legal entities, rendering services of temporary accommodation, food, excursion, leisure and other tourist services. Tour operators are the major players. They are legal entities, established under the legislation of Ukraine, who are solely engaged in organization and support of tourism, tourist services and agency activity in concomitant services. Tour operators directly render services of temporary accommodation of tourists or purchase such services from other persons with the aim to render them for tourists directly or through tour agents via granting a tourist voucher (a form of written agreement on tourist services according to the new Tax Code of Ukraine). Until November 2003, reception and services for foreign tourists was a subject to licensing. Presently, there is no such separation; however, activities of tour operators are still subject to licensing.
Tour agents are numerous, but less influential market participants. They are natural persons-entrepreneurs or legal entities established under the legislation of Ukraine, engaged in agency in tourist sphere, in particular, sale of tourist services of tour operators. Tour agents can purchase tourist vouchers from tour operators and transfer such vouchers to tourists or other tour agents in the name of and/or by order of tour operator.
Of-course, there are also other persons involved in tourist services in Ukraine: guides, interpreters, sport instructors and others – natural persons, engaged in activities related to tourist support. One thing should be mentioned about them: current Ukrainian legislation requires obtaining a permit for rendering tourist support services (except cases, when person works in organization-owner or organization-manager of visited tourist object). Natural persons who are not registered as entrepreneurs and do not have a permit mentioned herein can render services of temporary accommodation, prepare meals, etc.
What to worry about? According to the opinion of some professional organizations in Ukraine, the Ukrainian tourism legislation is rather declarative and needs to be adjusted with international conventions and European practice. One of tourists’ needs in Ukraine is a model contract on tourist services, approved on a legislative level. Presently, contracts with Ukrainian tourist companies should be a subject of careful examination by a tourist, since the contract may considerably advantage the company and not the traveler.
Financial guarantees from tour operators and tour agents for cases of their insolvency are obligatory and are realized through bank guaranties given to tour operators and agents. The minimal amount of such financial security is EUR 20000 for tour operators (EUR 10000 for tour services inside Ukraine) and EUR 2000 for tour agents. Tourists have a right to know the actual amount stated in a bank guarantee and a bank – guarantor. Pay attention: contract on tourist services can include a provision limiting the liability of tour operators and tour agents by the double amount of the tour’s price in case a tour operator (tour agent) is solely liable for damages caused by one of the tour services’ performer.
Some countries have concluded bilateral agreements on tourism with Ukraine; however, the provisions of such agreements are very general and rarely influence tourists. However, as a fact Ukraine declares the protection of legal rights and interests of foreign tourists according to the Ukrainian legislation and international agreements of Ukraine. So, one can check the relative agreement. Just in case.
As for the insurance, the situation is rather interesting: insurance covering emergency medical aid is obligatory (and only Ukrainian insurance companies can give such insurances), but no separate medical insurance is required. Thus, statements about obligatory medical insurance for foreigners visiting Ukraine contradict legislation. Foreigners can receive medical aid in Ukraine for payment or via concluding medical insurance agreements with Ukrainian insurance companies on a voluntary basis.
Possible (minor) additional expenses when travelling Ukraine: local authorities determine the size of local tourist duty. Foreigners pay such duty in case of visiting and staying (temporary accommodation) on the territorial unit where the duty is set. The amount of the duty is from 0,5 to 1 percent from the price of accommodation (habitation) for all the period of staying on the territorial unit, minus value added tax. The duty may be paid (in the name of a tourist) by the hotels’ administration, legal entities and natural persons-entrepreneurs engaged in accommodation activities or authorized as tax agents by the corresponding local body. The amount of the duty shall be separately included into the accommodation receipt. Persons coming to sanatoriums according to the sanatorium voucher or coming to boarding house do not pay a tourist duty.
How long a foreigner can stay in Ukraine? General rule defines the following: not more than 90 days (cumulatively) during 180 days from the day of the first entry in Ukraine, unless otherwise is defined in the applicable international agreements. “Unless otherwise” means that Ukraine can sign a bilateral agreement with a country or an international agreement with other provisions and such agreements will prevail. For instance, according to the WTO rules, since May 2008 (i.e. from Ukraine’s entering into the WTO) foreigners who are citizens of WTO members can stay in Ukraine for 180 days during the year. In case of violations of these rules, Ukrainian courts or border guards can impose a moderate fine.
When returning home, foreigners should keep in mind that like in many countries Ukraine prohibits export of certain products. This concerns exporting some products for industrial purposes and of course – certain cultural values (mostly of national importance and included into special registers). When exported, all cultural values – objects of material and intellectual values with artistic, historical, ethnographic or scientific value (antiques, paintings, sculpture, traditional folk art, archaeological objects, rare philatelic objects, medals and coins, rare collections, family values, etc.) are subject to obligatory state expertise and certification. The expertise is very inexpensive, but takes 30 days. Export of modern souvenirs, modern art, goods of serial or mass production, created after 1950, usually do not require state expertise or permit.
Doing business in Ukraine: can foreigners be engaged in tourist business in Ukraine? Legal entities, established according to the foreign law, as well as foreigners and stateless persons, can be engaged in tourist business in Ukraine according to the rules of relative international agreements (if there are the ones) and Ukrainian legislation. According to the general rule, to carry out tourist business in Ukraine foreign legal entities and natural persons can establish companies in Ukraine and receiving licenses, when required (as for the tour operators’ activities). Agency business on the territory of Ukraine upon concluding direct agreements on tourist services with foreign subjects of tourist activities is prohibited (such activity is allowed only through the tour operators, established according to the legislation of Ukraine). Agreements, concluded with the violations of this demand are void. As for tourist support on the territory of Ukraine, it can be rendered by citizens of Ukraine or residents of Ukraine, unless otherwise is stated in the international agreements of Ukraine.
So what to wait for? High national tolerance, visa-free entrance, great and rather safe natural environment, many English speaking people and beautiful sights make Ukraine nice and pleasant place to visit. Now you know the rules, so take the liberty to be among the first!
Опубліковано: hg.org