(Based on the speech of Dr. Nickolay Mayger on hotelforum, 2008, in Munich www.hotelforum.org )
Geographical and geopolitical location
- At 603,700 km (233,074 sq. mi) and with a coastline of 2,782 km (1,729 mi), Ukraine is the world’s 44th – largest country. It is the second largest country in Europe (after the European part of Russia, before metropolitan France). It is a transit country due to advantageous location and extensive aviation, railway, sea and vehicle network.
- Ukraine owns 5% of the world’s deposits of minerals, the total value is US 11 trillion $.
- There are 73 ths. rivers, more than 20 ths. pools, and more than 3 ths. lakes.
- Ukraine is maritime state. It is washed by the Black sea and the Sea of Azov. The Black sea coastline is 1540 km.
Economic factors
- In January-September 2008, the real GDP was 106,9% as compared with the relevant period of the last year.
- During 2007, export of foreign trade in goods to EU countries made up US 13.8 trillion $ and increased in comparison with 2006 for 15,1%; correspondingly import – US 22.9 trillion $ and 37,2%.
- The volume of direct investments from EU countries by 01.01.2008 made up US 22.9 billion$ which make up 77,8% of the total investment to Ukraine (01.01.2007 – US 16.3 billion $, 75,2%).
- On the 16th of May, 2008 Ukraine became the 152nd member of World Trade Organization.
- In 2007 the Ukrainian Stock Market recorded the second highest growth in the world of 130 percent. According to the CIA, in 2006 the market capitalisation of the Ukrainian stock market was US 42.87 billion$.
Catalysts of dynamical development of hotel market in Ukraine
- Broad “geography” of tourists flow is favorable for Ukrainian Hotel Business Development (for 2007 the foreigners from 205 countries visited Ukraine), one third (33.8%) – the tourists from CIS countries. The most frequently visits: from Germany – 81.7 ths. people, Poland – 69.4 ths., USA- 64.4 ths., Italy – 32.6 ths., Turkey – 31.9 ths., the United Kingdom of Great Britain and Northern Ireland – 28.2 ths., France – 27.8 ths., Austria – 17.8 ths., the Netherlands – 14.6 ths., Czech Republic – 13.5 ths., Israel – 12.5 ths., Canada – 12.0 ths.
- In 2007 the volume of provided hotel services for the foreigners was $105.9 US, or 75.4% from the total volume.
- During six months 11.3 Mil tourists visited Ukraine that is 1.8 Mil people more as compared with the relevant period of 2007.
The rating of 10 main countries of entrance tourism:
| People | Rate | 6 months of 2008/ 6 months of 2007 | ||
| Total | 1E+07 | 100% | 18,30% | |
| 1 | Russian | 3E+06 | 25,90% | 12,70% |
| 2 | Poland | 3E+06 | 24,80% | 21,80% |
| 3 | Moldova | 2E+06 | 17,50% | 16,10% |
| 4 | Byelorussia | 1E+06 | 11,80% | 33,50% |
| 5 | Rumania | 6E+05 | 5,70% | 33,90% |
| 6 | Hungary | 6E+05 | 5,10% | -4,00% |
| 8 | Slovenia | 3E+05 | 3,00% | 59,30% |
| 7 | Germany | 96069 | 0,90% | 15,60% |
| 9 | USA | 59345 | 0,50% | 9,40% |
| 10 | Azerbaijan | 36463 | 0,30% | 3,60% |
| Total for 10 countries | 1E+07 | 96% |
Source: the State Service of Tourism and Resorts of Ukraine
- According to the index of tourism competitiveness, prepared by the World Economic Forum in 2008, Ukraine occupies the 77th place among 130 countries of the world.
| Position | The place (among 130) | Point (from 1 to 7) | |
| 1 | Political rules and standards | 100 | 4 |
| 1 | Foreign property in the country | 123 | |
| 1 | Property rights | 118 | |
| 1 | Economic influence for foreign direct investments | 123 | |
| 1 | VISA requirements | 81 | |
| 2 | Environmental sustainability | 83 | 4 |
| 3 | Safety and Security | 93 | 5 |
| 4 | Public health and hygiene | 17 | 64 |
| 5 | The priority of Tourism and Travel | 96 | 4 |
| 6 | The infrastructure of air transports | 98 | 2 |
| 7 | Infrastructure of surface transport | 82 | 3 |
| 7 | Quality of the roads | 116 | |
| 7 | Quality of the railway infrastructure | 31 | |
| 8 | Number of Hotel rooms | 104 | |
| 8 | The availability of big rent-a-car companies | 56 | |
| 8 | The availability of cash dispensers | 33 | |
| 10 | The competitiveness in Tourism and Travel industry according to the price level | 115 | 4 |
| 11 | Human resources | 100 | 4 |
| 14 | Cultural resources | 84 | 2 |
| 14 | The number of International fairs and exhibitions | 70 |
Source: the World Economic Forum
The Number of Hotels and other part-time residence
| 2000 | 2003 | 2004 | 2005 | 2006 | 2007 | |
| In total | 1308 | 1218 | 1192 | 1232 | 1269 | 1420 |
| Hotels | 886 | 776 | 777 | 788 | 807 | 812 |
| Motels | 19 | 23 | 15 | 17 | 15 | 19 |
| Hotel-Office Centres | 10 | 7 | 7 | 8 | 8 | 6 |
| Campings | 10 | 9 | 7 | 6 | 4 | 9 |
| Youth and ski resorts | 20 | 26 | 26 | 35 | 35 | 42 |
| 383 | 377 | 360 | 378 | 400 | 532 |
Source: the SSC of Ukraine
Pricing Policy
- Ukrainian market of hotel services just goes on the stage of its development and it’s characterized by low level of market saturation and high demand. For example, the average fulfillment of Kiev hotels is 58% and in the downtown – 75-80%. Low competition allowed hoteliers to overstate prices.
- Free niche of hotel business, due to the lack of rooms, was occupied by apartments, houses for rent, real estate agencies, private brokers and by owners who rent 24-hour apartments. The part of apartments, real estate agencies, private brokers specializing on the renting which are working lawfully does not exceed 15%.The volume of this real estate market is estimated in more than 30%. The rental rate for single-room is $ 60-145, two- room – up to $ 190.
| Rates for: | Radisson SAS Hotel, Kiev (4 star hotel) | Radisson SAS Centrum Hotel, Warsaw (5 star hotel) | Radisson SAS Hotel Charles de Gaulle Airport, Paris | |||
| Sun Aug 10, 2008 | Wed. Nov 5, 2008 | Sun Aug 10, 2008 | Wed. Nov 5, 2008 | Sun Aug 10, 2008 | Wed. Nov 5, 2008 | |
| Standard Guest Room | 241,67 EUR | 440 EUR | 100 EUR | 202 EUR | 100 EUR | 300 EUR |
| Bed & Breakfast | 266,67 EUR | 470 EUR | 120 EUR | 202 EUR | 124 EUR | 326 EUR |
| Business Class Room – breakfast included | 325 EUR | 490 EUR | 150 EUR | 175 EUR | ||
| Junior Suite – breakfast included | 366,67 EUR | 540 EUR | 165 EUR | 185 EUR | 250 EUR | 350 EUR |
| One Bedroom Suite – breakfast included | 500 EUR | 700 EUR | 185 EUR | |||
Source: the Rezidor Hotel Group
Till 2008, there are only three hotels of International Hotel Chains: Hyatt Regency Kiev, Radisson SAS Hotel, Kiev, Rixos-Prykarpattya.
Considering economic potential, geographical location and climatic conditions, Ukraine has great advantages to become the major tourist centre of Europe!