The article was published on the Ekonomichna Pravda website.
Author: Artur Lupashko, founder of Ribas Hotels Group
How EU accession influenced the number of tourists in other countries and implications for Ukraine
After the end of the war and Ukraine's accession to the EU, business tourism may become a key driver of demand for visits to major cities such as Lviv, Odesa, Kyiv, Dnipro, and Kharkiv./p>
While resort cities will mostly attract domestic tourists. First and foremost, we will need to work on reversing the negative stereotype of Ukraine as a war country and attracting more international tourists to different parts of the country.
I have no illusions about the rapid recovery of tourist traffic from Western countries, in particular from Europe and the United States. Stability, security and predictability are what Europeans and Americans are used to when planning their travels over a long period of time.
Ukraine, unfortunately, still offers unpredictable conditions, and this factor is slowing down the rapid recovery of the tourist market from the West.
Before the full-scale war, we saw positive trends in tourism from the East. In 2021, the number of tourists from Turkey, Israel, and Arab countries, including Saudi Arabia, increased significantly.
This was due to the introduction of direct flights to Kyiv and Lviv, as well as the activity of tourists on social media, who spoke positively about Ukraine.
This market has significant potential, as Eastern countries represent a significant number of potential tourists.
What opportunities do hotels have after European integration?
I recently spoke with a developer who is leading a project to build an apartment hotel in Montenegro. Already today, he is successfully selling a square meter at a price of €10,500. This is impressive, especially considering that Montenegro is not yet a member of the European Union, and such prices are already in effect.
I recently spoke with a developer who is leading a project to build an apartment hotel in Montenegro. Already today, he is successfully selling a square meter at a price of €10,500. This is impressive, especially considering that Montenegro is not yet a member of the European Union, and such prices are already in effect.
According to him, foreigners are buying real estate, realizing that when Montenegro joins the European Union, the country will become more convenient for travel and business activity, and the economy will be more stable.
Tourism is an important sector for the economies of the new member states, accounting for approximately 12% of their GDP, while the direct contribution of travel and tourism to the new member states is approximately 5% (World Travel & Tourism Council, 2016).
According to Eurostat Statistics, the decline in tourist arrivals from the EU to the new member states over the period 2007-2014 occurred only in Cyprus, where the figures fell by 22%, and Slovakia, by 19%.
In all other eleven countries, the number of arrivals from the EU increased over the above period, indicating that accession has played a significant role in the development of the tourism industry in the region. Croatia reported the most significant growth, as the number of non-resident tourists increased by 53% in 2014 compared to 2007.
A positive scenario is also possible for Ukraine. With the adoption of the necessary laws and accession to the European Union, our country can expect rapid economic growth.
Investors, both Ukrainian and foreign, will invest in Ukraine, expecting huge dividends from European integration. Importantly, Ukrainians already have significant financial reserves that can be used for investment.
The movement of money in the economy always contributes to its development. Investments lead to the creation of new jobs, economic growth, and a general increase in prices, which primarily benefits investors. We just need to wait until the war is over and security guarantees are in place for Ukraine, as well as its actual accession to the European Union.
How hotel standards will change
We hope that the Ukrainian hotel market will remain competitive and will not lose its unique character, which, in my opinion, prevails over the European one.
However, it is important to recognize that Ukraine does not have a regulator that would control the quality of hotels. And even if we had one, it would probably not be as effective as Booking.com.
One of the main issues is that we still have hotels that may ignore accessibility issues for people with disabilities or have other shortcomings, such as electric heating or rooms without windows.
In Europe, there are clear laws and regulations that set fire safety and accessibility standards for everyone. This prevents the emergence of uncontrolled hotels.
The introduction of similar standards in Ukraine could balance the market, reduce the difference between hotels of different classes, while ensuring a high level of safety and comfort.
When it comes to service, I remain convinced that Ukraine's service is currently above the European standard, so it will not be directly affected by EU accession.
The article continues on the website of Ekonomichna Pravda.
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