What hit Ukraine during 2008? and Why did it have a negative impact on tourism development in the country?

What measures were businesses looking for in order to remain afloat?

What factors had a major impact on the overall consumer spending affecting both outbound and domestic tourism?

What kind of flights does the Hungarian Wizz Air operate in the Ukrainian market?

What investments are needed to host EURO 2012 in Ukraine?

What kinds of ski resorts exist in Ukraine?

Should Ukrainian hotel infrastructure be upgraded and Why?

Translate into Ukrainian.

Sleeping beauty - Ukrainian tourism market

Although Ukraine has been strongly affected by the global economic crisis, the local tourism market has registered steady growth. Domestic tourism, in particular, is expected to boom with annual growth rates of 9.5% in the next five years. Inbound tourism is also growing because of the rising awareness of Ukraine as the venue for the upcoming European football championship in 2012. The market entry of low cost airlines such as Wizz Air and German Wings plus the substantial depreciation of the local currency are also good for tourism in the country. Roland Berger Strategy Consultants expects it to grow by about 7.5% between now and 2013. But a lack of infrastructure and hospitality framework may yet put the brakes on the upswing. About 90% of Ukrainian accommodation facilities date back to the Soviet era. A majority of the announced hotel projects will not be realized in the near future because of the economic environment.

"Ukraine has very few hotels that meet international standards. So, for international investors who are willing to take some risks, the window of opportunity is wide open," says Olga Andrienko-Bentz, Senior Project Manager in Roland Berger's Kyiv office. The number of visitors increased from 9.9 million visitors in 2005 to 11.7 million in 2008. International tourism really took off when visa requirements with the EU, US, Canada and other countries were abolished. Domestic tourism has been given a push by the rising living standards in Ukraine. Over the past few years, real disposable income of the population enjoyed annual growth rates of 27%. Little awareness of Ukraine as a tourist destination combined with underdeveloped infrastructure and no real hospitality framework are the main hurdles to becoming a premier international destination. "Over the last few years, Ukrainian tourists have preferred international destinations like Turkey or Egypt, which offer better value for money. But the economic crisis – and the resulting lower incomes – are making holidays at home more attractive," explains Andrienko-Bentz.

Lack of hotels that meet international standards

The main problem for Ukrainian tourism is a lack of hotels that meet international standards. "The hotel infrastructure is really outdated. 90% of the hotels were built more than 20 years ago and have never seen extensive renovation," notes the consultant. Service levels are also below the international average. For example, there is no mandatory hotel classification system in Ukraine. Most hotels are managed by inexperienced private owners or government institutions. Another problem is that the Ukrainian hospitality business is solely concentrated on the traditional business and holiday destinations. The western regions are famous for their winter resorts. Summer tourism in concentrated in the south and the Crimean region. Business tourism is focused on major cities such as Kyiv, Dnipropetrovsk, Kharkiv and Donetsk. But even there, you have a chronic shortage of high-class international hotels in all price segments. "You can find 95% of all high-quality hotel rooms and 60% of all hospitality resources in the traditional resorts and business destinations," says Andrienko-Bentz.