What decisions should market players make to develop a successful promotional campaign?

UNIT 8. TRAVEL AND TOURISM IN UKRAINE

 

Euromonitor International's Travel And Tourism in Ukraine report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.

The economic recession which hit Ukraine during 2008 had a negative impact on tourism development in the country. The Ukrainian currency fell by nearly 40% vs. the euro in 2008, which largely affected companies with debts in foreign currencies. Currently businesses are looking for cost reductions which results in such measures as laying off staff or cutting working hours. Investment projects have either been delayed or stopped, due to the lack of resources and restrictions in bank lending. The challenges of the economic crisis are worsened by political inconsistency in Ukraine. All these factors had a major impact on the overall consumer spending affecting both outbound and domestic tourism.

Wizz Air is the first low cost airline to enter the Ukrainian market

The Hungarian Wizz Air is the first low cost airline to enter the Ukrainian market. In 2008 the company operated only domestic flights. Since January 2009 Wizz Air introduced flights to international destinations such as Katowice, Cologne, London and Oslo. Future plans of the airline include starting new routes to Italy and Spain. In 2009 Wizz Air plans to achieve one million Ukrainian passengers.

Infrastructure investments needed to host EURO 2012

In April 2007 Ukraine and Poland were chosen to co-host the European Football Championship Euro 2012. The government considers the Euro 2012 tournament a great opportunity for promotion of Ukraine for foreign direct investments and tourism. However, the current economic downturn slowed the pace of the infrastructure development. The state is seeking funding from private investors and international finance institutions in order to strengthen its airport, road and hotel infrastructure to be able to host one million football fans for the event held in four different cities. The EBRD provided a EUR 400 million loan to reconstruct the highways linking Kyiv and the western border.

Winter resorts driver of tourism for Ukraine

The importance of ski resorts for Ukraine tourism industry grew substantially over the last two years of the review period. Bukovel had in 2008, 15 modern ski lifts with more than 50 kilometers of ski runs for beginners, intermediates and experts and there are plans to build an additional 278 kilometers of ski runs and 35 ski lifts by the end of the forecast period. Important investments are also affecting the hotel infrastructure with a four-star Radisson SAS hotel currently being built for a total investment of EUR 70 million.

Good tourism prospects for Ukraine once the infrastructure is upgraded

Ukraine has excellent potential for tourism developments which can rely on natural attractions such as the Carpathian Mountains in the west and the Black sea resorts in the south. However, the infrastructure needs substantial investments in order to support tourism development. The roads are in a poor state outside the main cities, while airports are very underdeveloped. The hotel system still relies on expensive Soviet-era hotels, which provide poor customer service and in many cases do not accept credit cards. The current economic downturn slowed investments, however, once the Ukrainian economy returns to positive growth, robust development of the tourism industry in the country is expected.

Active Vocabulary

a comprehensive guide – доступний (зрозумілий) провідник

a national level – національний рівень

retail travel - роздрібна подорож

to identify - виявляти, визначати, ідентифікувати; розпізнавати, називати, встановлювати (особу); встановлювати автентичність (справжність, тотожність) (чогось), індивідуалізувати; ототожнювати

the leading company – ведуча компанія

key factor- ключовий фактор

background information - вихідні дані

disposable income - вільний, доступний (який перебуває у (вільному) розпорядженні) прибуток

annual leave - щорічний від'їзд (щорічна відпустка)

habit - звичка

the economic recession – економічний спад

to hit - 1) ударяти; уражати;2) досягати

a negative impact – негативний удар (поштовх)

to be affected – бути ураженим

cost reductions - скорочення витрат

measure -1) захід (to take measures — вживати заходів); 2) міра; одиниця виміру

to lay off - 1) звільнити з роботи (тимчасово); 2) припиняти, переставати; 3) відкладати; 4) відпочивати; 5) знімати (одяг)

to cut working hours – зменшувати робочі години

investment project – інвестиційний проект

to be delayed - бути відкладеним (відстроченим; простроченим; несвоєчасним)

the lack - нестача, брак; відсутність (чогось - of)

bank lending - банківське позичання (надання пози(ч)ки, кредитування; позика, позичка)

the challenge - виклик

the economic crisis – економічна криза

to worsen - погіршувати(ся)

political inconsistency – політична нестабільність

outbound - виїзний

domestic tourism – внутрішній туризм

to operate -1) керувати, завідувати 2) оперувати 3) діяти; працювати 4) приводити в рух 5) впливати, діяти (on, upon)

domestic flights – внутрішні рейси

international flights - міжнародні рейси

economic downturn - економічнийспад (зниження; падіння; зменшення попиту; скорочення обороту)

finance institution – фінансова установа

to strengthen - підсилювати(ся), посилювати(ся); зміцнювати

to host – приймати гостей

loan - позика; позичка; кредит

substantially - 1) по суті; в основному; значною мірою 2) міцно, ґрунтовно

substantial -1) реальний, матеріальний 2) істотний, важливий, значний 3) тривкий, міцний 4) заможний 5) поживний (про їжу)

ski lifts – лижні підйомники

ski runs – лижні доріжки

the forecast period – передбачений період

to rely on - покладатися, довіряти; бути впевненим (on, upon)

robust [rə'bʌst]development – сильний розвиток (міцний, здоровий; дужий; складний, що вимагає зусиль)

to remain afloat – залишатися на плаву

the EBRD (European Bank for Reconstruction and Development (founded in 1991 to provide financial assistance to the former communist countries of eastern Europe)) - Європейський банк реконструкції та розвитку

SAS (Special Air Service) – спеціальні повітряні послуги

Answer the following questions: