Journal of Hygienic Engineering and Design

Original scientific paper UDC 338.48-6:663.2]:303.723/.724(477.74)”2014/2026” 338.48-6:641/642]:303.723/.724(477.74)”2014/2026”

THE INFRASTRUCTURAL VECTOR DEVELOPMENT OF IN THE COORDINATES OF ACTIVATION OF TOURISM ENTREPRENEURSHIP

Eleanora Zabarna1, Tetiana Averikhina1*

1Institute of Business, Economic and Information Technology, National Polytechnic University of Odessa, Prospect Shevchenko 1, 65044 Odessa,

*e-mail: [email protected]

Abstract The process of developing a concept for the devel- ten largest wine-producing enterprises in the Odessa opment of gastronomic tourism in Ukraine will make region that have potential tourist attractiveness ac- it possible to rethink the contents of an administra- cording to certain criteria (a unique type of wine, the tive-territorial reform and provide autonomy to the history of the enterprise, the level of transport, and regions in realizing their right to self-development, tourist infrastructure). The project proposal also in- including in the tourism sector, as a catalyst for the cluded the most picturesque cities of the Odessa re- process of effective interaction within the framework gion (e.g., Vilkovo), as well as cities with a rich history of a public-private partnership whilst taking into ac- (e.g., Belgorod-Dniester) and winemaking traditions count modern-world trends. The aim of the work is (e.g., ). An algorithm has been developed for the to study new approaches to managing the territorial implementation of the project proposal “Wine Roads development of the Odessa region on the basis of in- of ”, which, in the future, could be included frastructural support for tourism entrepreneurship and in the single European network, “The Wine Route of the development of appropriate scientific and applied Europe”. The main reasons for the negative trends are solutions and mechanisms. as follows: a generally unstable economic situation, an ill-conceived excise policy, the absence of state pro- Based on the method of correlation-regression anal- grams for the development of the territory, and low ysis we built a linear economic-mathematical model, purchasing power which plays against legal players in which served as the basis for obtaining the most prob- the market. In the context of such transformations, the able forecast for the development of the global wine- main strategic directions for the development of gas- making market in the next three years. An analysis of tronomic tourism in the Odessa region of Ukraine are the development of the domestic wine production identified. and market sales dynamics has been carried out. On the basis of a critical rethinking of the “Concept of the It is proven that the positive impact of tourism on the development of gastronomic tourism in Ukraine until economy is observed when it operates on the condi- 2026”, a vector of institutional transformations is pro- tions of balanced development with other sectors of posed in the development of the Odessa region on the the socio-economic complex of the region. The main principles of sustainable development whilst taking stages in the formation of gastronomic tourism in the into account global trends and Ukrainian realities. In a regions of Ukraine were identified. The first stage (until set of measures for the organization and promotion of 2020) should be beginning integration and interaction efforts of the tourism industry with the wine and food gastronomic tourism in Ukraine based on sustainable industry as a whole. The second stage (2021-2023) is development and the prospects for individual regions the creation of a tourism gastronomic product and of the country to enter the international tourism mar- network cooperation of entities providing gastronom- ket with a competitive national gastronomic tourism ic tourism services. The third stage (2024-2026) in- product an algorithm has been developed. volves the stabilization of demand for the national gas- The enogastronomic tourism route “Wine Roads of tronomic product and its promotion in international Bessarabia” is proposed, which is based on the co-lo- tourism markets. In general, it should be noted that by cation of enogastronomic destinations including the combining all the possibilities of cooperation ­between

100 Journal of Hygienic Engineering and Design the state, local self-government, business, and society integration and consolidation of the economic founda- to fulfill the tasks of territorial development, it is possi- tions of statehood [1]. ble to achieve sustainable development of regions and communities to improve the quality of life of the total population, regardless of where they live. 2.1 Methods The objects of regional research on problems fac- Key words: Regional development, Infrastructure, Tour- ing tourism development are various tourist regions ism business, Winemaking, Gastronomic tourism, Strate- which should be considered as wholes of three sub- gy, Implementation mechanism. systems: economic, social, and environmental. In turn, the economic subsystem is also a combination of structural elements that are subject to regulation: 1. Introduction the tourist recreational complex of the region; natu- ral resources; labor resources of the region; and re- Entrepreneurial activity in the tourism sector of certain gional infrastructure. Based on the aforementioned territories is a complex socio-economic phenome- points, it should be noted that the Odessa region is non and, at the same time, is a certain type of activi- a unique territory that has a common border with ty subject to the tourism market. On the other hand, Moldova and , as well as maritime communi- tourism entrepreneurship is a process that requires the cation with Bulgaria, Turkey, and other EU neighbors, consistent implementation of the logically intercon- such as Georgia. The ethnic diversity of the popula- nected studies and stages of establishing the tourism tion of the region, the open and sincere nature of the services market. The practice of tourism entrepreneur- unique mentality of the southern culture, and favor- ship, modern economic realities with their difficult able climatic conditions define the Odessa region as internal conditions, and the relationships between a tourist region with significant development poten- them have complicated entrepreneurial activity in the tial, and these features can form the foundation for tourism services market and led to new patterns in its tourism business and agriculture, with viticulture and development. Understanding this fact creates a need winemaking in particular. A number of studies on for research and development of scientifically-based the problems of regional entrepreneurship with the approaches and principles of territorial development active involvement of the existing tourism potential management, as well as the adaptation of scientific were reflected in [2-5]. At the same time, it should be concepts and tools in the field of regional entrepre- noted that in studies of modern transformations of neurship to modern economic conditions while taking territorial development in Ukraine, as well as in the into account industry specifics. The above provisions specifics of productive forces (industry specifics, the determine the relevance of this study. availability of developed tourism infrastructure, and the “backlog” for its development), certain regions have a number of issues underlying their develop- 2. Materials and Methods ment that require further research on a systematic 2.1 Materials basis and the development of appropriate scientific and applied solutions for the formation of a concep- Modern entrepreneurship should develop regardless of tual framework for enhancing entrepreneurial activ- its environment of functioning. Analyzing modern the- ity in tourism, which can become the basis for the ories of regional development allows us to single out formation of the infrastructure vector of the develop- the most significant factors affecting the development ment of territories with the appropriate mechanism. of entrepreneurship in the regional economy.Economic factors are the dominant development, but the specifics In this study, we will solve the problems of territorial of entrepreneurship consist of not accepting environ- development using methods of scientific knowledge mental imperatives in production and consumption. such as methods of scientific abstraction, analysis and Therefore, in our opinion, the very concept of sustain- synthesis, deduction and induction, historical and logi- able regional development organically combines all cal, as well as methods of correlation-regression analy- the most significant factors in the development of ter- sis (formulas 1,2) and economic-mathematical model- ritories. According to Ukrainian scientists, four laws of ing (formulas 3-6). regional development are important for the formation of an effective regional economy: the law of territorial growth of production and the equalization of levels of 3. Results and Discussion economic and social development of regions; the law of territorial specialization, international relations, and The world wine market has an extensive history trac- the formation of regional markets; the law of integrated ing back at least four centuries and which was formed development, structural transformation,­ and diversifica- in response to the growing needs of people living on tion of various farms; the law of interregional economic different continents (Table 1).

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It should be noted that the regions producing wine in Table 1. Dynamics of the total volume of production of the world are not evenly distributed. A significant influ- the global winemaking industry (2014-2018), in mil.L [6] ence is exerted on their placement by a number of fac- Year Volume of production of winemaking, mln L tors, among which are the historical factor, a favorable 2014 1022.06 climate for growing vineyards, a high culture of wine 2015 1033.42 consumption in a particular country, etc. 2016 1006.92 The leaders in the global winemaking market have 2017 938.78 steadily been Italy, France, Spain, the United States of America, and Argentina.Their share accounts for more 2018 1056.13 than half of the total volume of wine production pro- duced in the world. In addition, China, Chile, Australia, Based on the use of correlation-regression analysis, we Germany, Portugal, and the Republic of South Africa can predict the dynamics of the volume of winemak- occupy a significant place in the world wine indus- ing production in the world for a period of three years try today. Among the countries of the former Soviet (the period which gives the most accurate forecasts). Union, the top twenty wine-making countries includ- Suppose that the dependence of profit on produc- ed Russia, Moldova, and Georgia. Unfortunately, today, tion volume has the form of a linear function: y = bt Ukraine is not included in the list of the main countries + a (where y is the volume of wine production and t of wine producers - its share in global wine produc- is the year). Then, building an analytical approach will tion has significantly decreased over the past ten years mean defining a and b. We calculate the sum over the from 18th place in the rating in 2008 to 24th place in columns ti and yi. 2019 [7]. (1) The implementation of state policy towards regional development in Ukraine, fiscal decentralization, devel- (2) opment, and stimulation of the specific foundations of the southern region’s economy should take into ac- count the specifics of the productive force distribution Based on the data obtained, we form the following sys- in each territory. According to the national criteria after tem of equations: the annexation of Crimea, the leading positions in the (3) volume of wine production in Ukraine are occupied by the Odessa and Nikolaev regions (Table 3). Winemak- ing in other regions of Ukraine is not of primary impor- (4) tance and reflects a decreasing trend (from 15.6% in 2014 to 5.1% in 2018). This geographical concentration of winemaking enterprises is due to the climatic fea- (5) tures of the south of Ukraine and Zakarpattia, which give favor to this industry. The latter simplifies and re- duces the cost of logistics for wine companies in these Thus, one can obtain the following linear equation: regions. (6) The peak of the decline in sales of products of the wine industry was in 2015 (the volume of sold wine-making Based on this equation, one can predict the global products in Ukraine amounted to 1598.8 million UAH wine production for the next three years (Table 2). against 2548.6 million UAH in 2014). Among the main reasons for the decline are the following: loss of con- Table 2. Forecasted dynamics of global wine production trol over part of its territory in Ukraine (meaning loss of (2019-2021), in mln L sales markets for domestic enterprises), closure of Rus- Forecasted volume of production of sian markets for Ukrainian goods, a significant decline Year winemaking, mln L in real incomes of the population, etc. Since 2016, there 2019 1003.51 has been a positive trend the volume of sold products 2020 1000.48 of the wine industry in nominal terms (4312.5 million UAH in 2016, 4639 million UAH in 2017, 4852.2 million 2021 998.21 UAH in 2018). This dynamics is caused, first of all, by the devaluation of the hryvnia and the corresponding Thus, the correlation-regression analysis indicates neg- increase in the cost and sales prices of wine products ative global dynamics of wine production until 2021, in Ukraine. which is an unfavorable factor for Ukrainian enterpris- es in the wine industry.

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Table 3. The dynamics of wine production in Ukraine by region (2014-2018) [8] Share of the region’s volume of the total wine production in the country,% Region 2014 2015 2016 2017 2018 Odessa 31.2 34.3 36.2 36,7 38.4 Nikolaevskaya 28.7 29.2 30.1 30,5 31.2 Dnepropetrovsk 13.3 14.2 13.6 13,8 14 Zakarpattia 11.2 12.5 12.1 12,3 11.3 Others 15.6 9.8 8 6,7 5.1

Regional tourism business is attractive because it does ­“Concept for the development of gastronomic tourism not require significant start-up capital, it has a high in Ukraine until 2026,» is relevant and overdue. The level of return on investment, a minimum payback document [9] defines the main strategic directions for period, and a growing demand for tourist recreational the development of global gastronomic tourism, the services. However, the positive impact of tourism on current state and problems of the development of the economy is observed when it operates on the con- gastronomic tourism in Ukraine, and defines a set of ditions of balanced development with other sectors measures for organizing and promoting gastronomic of the socio-economic complex of the region. The do- tourism in Ukraine based on sustainable development mestic market for wine products today is experiencing with prospects for individual regions of the country to a difficult period. In addition to the general economic enter the international tourism market with a compet- unstable situation, there is an ill-conceived excise poli- itive national gastronomic tourism product. Note that cy and low purchasing power, which play against legal global annual revenues from gastronomic tourism players in the market. However, Ukraine has significant reach up to 150 billion dollars [10]. An analysis of the potential in the field of winemaking, therefore, subject above proposed concept make it possible to rethink to state support for domestic winemaking, the devel- the role of public territorial institutions in the tourism opment and implementation of regional development sector, positioning it as a catalyst for the process of ef- programs in the framework of the administrative-terri- fective interaction within the framework of public-pri- torial reform, domestic wine producing companies will vate partnerships. This approach allows for creativity in be able to significantly improve their positions both creating proposals for the development of the Odessa domestically and external markets. region on the principles of sustainable development, taking into account the trends of the modern world Among the trends that are taking place today in the and Ukrainian realities. leading wine-making countries of the world, we con- sider it appropriate to single out in particular territorial Based on the analysis of studies of the innovations of development programs based on wine tourism. This European regional tourism, we have developed a tour- is a specialized type of tourism, the purpose of which ist enogastronomic route “Wine Roads of Bessarabia”, is tasting, consuming, and buying wine directly from which is proposed for implementation in Ukraine and the manufacturer. As a rule, wine tourism is formed in which, in our opinion, will favorably influence the de- the context of gastronomic tourist routes. Wine in this velopment of southern Ukraine (Figure 1). context is not considered as an alcoholic beverage, The tourist route we have proposed is based on the but as a unique product that meets the development compact location of the gastronomic destinations - goals of a particular region. For example, in Italy, there geographical areas that can be attractive to the gas- are a large number of wine tourist routes that can be tronomic needs of tourists. In the Odessa region, there divided into the broad categories of urban and rural. are thirteen powerful enterprises specializing in the The first ones include visits to restaurants and tasting rooms where you can taste popular local wines as well as try local delicacies. The advantages of this type of gastronomic tourism are high quality service, conve- nient transportation, and the possibility of organically connecting wine tourism with other types of tourism. In turn, rural routes include tours of vineyards and factories for the production of wine products. In Italy, such routes are usually developed by representatives of small businesses, i.e., family wineries that produce unique, not mass-produced products. Based on this, a set of measures for the formation and implementation of developing wineries in the Odes- sa region, including measures in accordance with Figure 1. Ukraine on the European space

103 Journal of Hygienic Engineering and Design manufacture of wine products. Of these, ten enter- al center of Odessa, the capital of Kiev, and other cities. prises have potential tourist attractiveness according Thus, Belgorod-Dniester can become to some extent to certain criteria (a unique type of wine, the history the logistical and cultural center of this wine region. of the enterprise, the level of transport and tourist in- To implement the program proposed above, a large frastructure). In particular, these enterprises include: quantity of work falls on the marketing service at the Niva LLC, Vin Agro LLC, the Tairov Institute of Viticulture regional level of state administration, which should and Winemaking (the village of Tairovo), Agro Dar LLC monitor the availability of relevant events in cities and (the city of Tatarbunary), Bolgradsky Winery CJSC (Bol- the region. After that, the city and regional administra- grad city), Winery LLC (Izmail city), Business Vin tions, together with the corresponding united territo- LLC (Mologiv village), Langeron & K TPK (Limanskoye rial communities, can apply for participation in certain village), Shabo Industrial Trade Company LLC (Shabo thematic festivals, exhibitions, and fairs. Organization- village), and PAT «Odessawinprom» (Odessa). Based al support for the proposed activities requires a whole on this, we developed a project proposal for the imple- range of work in which the relevant structural units are mentation of the enogastronomic route “Wine Roads directly involved in managing the territorial develop- of Bessarabia” (Figure 2). ment. Moreover, the adaptation of the region’s devel- In addition to the settlements in which these wine-pro- opment strategy to the requirements of the “Concept ducing enterprises operate, the project proposal of the development of gastronomic tourism in Ukraine and, accordingly, the enogastronomic route includes until 2026” requires consultations with tourism ex- such settlements of the Odessa region as Sarata, Bel- perts, designers, lawyers, etc. gorod-Dniester, and Vilkovo. In the city of Sarata, an- nual local wine festivals are held, which is relevant in the context of wine tourism. Vilkovo is one of the most 4. Conclusions popular tourist centers of Odessa region (it is also - We have identified the main stages in the formation called «Ukrainian Venice») and has a large number of of gastronomic tourism in the regions of Ukraine. The small wineries that produce wine unique to the region. first stage (until 2020) should be beginning integration The city of Belgorod-Dniester also has significant tour- and interaction efforts of the tourism industry with ist potential in connection with the ancient Akkerman the wine and food industry as a whole.The strategic fortress located here, offering a rich history and local goals of this stage are the development and unifica- traditions. Near the city are enterprises for the produc- tion of the theoretical foundations of the functioning tion of wine (industrial and trading company «Shabo» of tourism business in the wine industry; an audit of and LLC «Business Vin»). In addition, Belgorod-Dniester gastronomic resource potential at local and regional has a developed transport connection with the region- levels; the initiation and formation of legislative and regulatory norms of gastronomic tourism; the study of effective development models based on the principles of sustainability and stability; etc. - The second stage (2021-2023) is the creation of a tour- ism gastronomic product and network cooperation of entities providing gastronomic tourism services. The main objective of this stage is the creation and promo- tion of gastronomic brands of tourist destinations; the formation and development of various forms of pro- moting gastronomic tourism (forums, festivals, wine and food tasting routes, exhibitions, scientific and practical events, etc.); creation of tourist gastronomic clusters (in particular, wine clusters) within the frame- work of rural and urban areas; integration into the in- ternational gastronomic tourism market; etc. - The third stage (2024-2026) involves the stabilization of demand for the national gastronomic product and its promotion in international tourism markets. This stage also includes those events that have already been carried out in Ukraine in the framework of the development of gastronomic tourism in recent years (young wine festivals, conferences, tastings, presenta- Figure 2. Project proposal for the implementation of the tions of tourist routes, etc.). enogastronomic route “Wine Roads of Bessarabia”

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- The development of territories that will be included [9] Cabinet of Ministers of Ukraine. (2005). Resolution № 587 in such programs requires coordination with the Na- on approval of the procedure for the use of funds provided tional Doctrine of Tourism in Ukraine, which accord- in the state budget for the development of viticulture, hor- ingly involves the development of mechanisms for the ticulture and hop growing (in Ukrainian).

5. References [1] Zabarna E. (2019). Regional markets of Ukraine in mod- ern economic conditions. European Journal of Econom- ics and Management, Volume 5, Issue 1, pp. 201-206. [2] Weavver D. (2002). Ecotourism. John Wiley & Sons, New York, USA. [3] Malska M., Manduk N., Zinko J. (2005). The tourism mar- ket of Western Ukraine in the light of marketing research (in Polish). Instytut Turystyki, Warszawa, Poland, pp. 126-133. [4] Nezdoiminov S. G. (2007). Practical recommendations for the provision of services in the field of rural green tour- ism (in Ukrainian). Danube Tourist Information Center, Vilkovo, Ukraine. [5] Semenov V. F., Mozgalyova M. V., Davidenko V. I. (2016). Regional recreational cluster in the context of structural restructuring of the region’s economy (in Ukrainian). Re- gional Economics, № 3, pp. 80-89. [6] International Organisation of Vine and Wine. World wine market 2018: Reteach, in-depth analysis, producers, fore- casts until 2022 (in Russian).

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