Lowering the Bed-Count Threshold for Collective Accommodation Facilities
On June 10, the Cabinet of Ministers of Ukraine adopted Resolution No. 743, which reduces the minimum number of beds required for collective accommodation facilities from 30 to 10. This move aims to shrink the shadow economy—now estimated at around 50%—and align national regulations with European Union standards. The State Agency for Tourism Development and the Ministry of Development were responsible for drafting the resolution.
Updates to Service Provision Rules
The resolution amends Point 2 of the Rules for Providing Temporary Accommodation (Residence) Services. In 2011, the bed threshold was artificially raised to 30, which significantly fueled illegal operations in the sector. By contrast, the EU defines collective accommodations as tourist facilities with a capacity of at least 10 beds—underscoring the need for Ukraine to harmonize its laws with European norms.
The Economic Security Bureau identified the risks tied to the shadow sector in fiscal and budgetary areas. According to business representative Natalya Tabaka:
“The call for fair market rules came not only from the ESB, which actively monitors regional developments, but also from business owners themselves.”
She further emphasized:
“Hiding behind the 30-bed rule distorted the very structure of the market: some operate honestly, pay taxes, and hire staff, while others collect cash or card payments from tourists and pay their employees the same way.”
Resolution No. 743 is designed to trigger key reforms aimed at reducing the shadow economy in tourism. Natalya Tabaka noted: “Today, together with the tourism industry, we are working to build transparent, clear, and fair rules for doing business in temporary accommodation. This government decision allows us to launch important changes on the path to eliminating the shadow sector in tourism.”
Lowering the minimum bed count for collective accommodations marks a significant step in combating illegal practices within Ukraine’s tourism sector. This decision could greatly contribute to creating a transparent business environment, which in turn may boost the international competitiveness of Ukrainian tourism. Aligning with European standards also reflects Ukraine’s commitment to integrating into EU legal frameworks and improving conditions for travelers.
As the tourism sector in Ukraine undergoes significant changes, the upcoming event focused on business travel will bring together key industry players to discuss the future landscape. With 300 participants set to influence the direction of this vital segment, the dialogue surrounding new regulations like Resolution No. 743 will be crucial for shaping a fair and transparent market environment.