Continuing unrest in Kiev causing collapse of Ukraine tourism industry

There is almost no tourism left in Kiev, the capital of the Ukraine, that is under the grip of chaos, protests, horror, and clashes between pro-European opposition and the government of President Vikt

There is almost no tourism left in Kiev, the capital of the Ukraine, that is under the grip of chaos, protests, horror, and clashes between pro-European opposition and the government of President Viktor Yanukovych. Government machinery, including ministries, are virtually at a stall. Offices are not working and even government buildings are occupied by protesters. Only journalists, photographers, and media persons are seen in Kiev instead of real tourists. These media persons are using tourism entry or tourist visa to get into the country and doing their professional work and giving no support to the tourism industry.

The crisis started around November 21, 2013 when protesters decided to gather at Independence Square, popularly known now as Euro Maidan or Maidan Europe.

According to tour operators, no visa has been granted to any foreigner by the Ministry, because government fears that the international media will flood the country on fake tourist visas. Restaurant business is almost shutdown in the city.

The Ukraine is already facing a debt crisis and the suspension of tourism and a tourist flow has multiplied this problems. Growth is slowing, and investors and businesses are growing increasingly frustrated with the current political gridlock. The unrest comes just as investors are pulling their money from emerging markets worldwide.

Back in 2010, Western investors and tourists were flocking to Kiev, and the Ukraine stood as the 8th most popular tourism destination in Europe with 23 million visitors in 2012. The countryโ€™s tourism industry is generally considered to be underdeveloped, but it does provide crucial support for Ukraineโ€™s economy. In 2012, the contribution of tourism to the GDP amounted to 28.8 billion UAH, or 2.2% of GDP and directly supported 351,500 jobs (1.7% of total employment). Ukraineโ€™s western neighbors (Poles, Slovaks, Hungarians, and even Belarusians) are known to come to the Ukraine to purchase products and presents, such as food or gasoline, that are cheaper in the Ukraine than in their home countries. Now borders are almost closed for neighbors also, and tour operators who are dealing in escort tourism and dental tourism have lost their season โ€”December and January. Tour operators also lost their season of Orthodox Christmas when millions of western tourists usually travel to Kiev to enjoy and attend Orthodox Christmas (January 6 to January 12).

In the past 20 years, many modern dental clinics with high-quality dentistry equipment, high-quality materials, and effective anesthetics were established in the Ukraine. They provide patients with high-quality dentistry services. But for all that, prices in the Ukraine are much cheaper in comparison with Western and Russian clinics. A lot of tourists from the USA, European Union, and Russia come for cheap dental surgery, etc. โ€œThere is no business at all. We sold tours, but [the] visa process is almost closed down. People from western countries are scare to visit [the] Ukraine. Escort tourism is fun and enjoyment. How one can come in[to] the city that is giving a picture of [a] battlefield for enjoy[ment] and fun?,โ€ said one of the leading tour operators of Kiev.

The Ukraine has impressive landscapes, ruins of ancient castles, historical parks, vineyards where they produce native wines, unique structures such as Saint Sophia Cathedral or Chersonesos, and officially, there are seven World Heritage Sites in the Ukraine. The Carpathian Mountains are suitable for skiing, hiking, fishing, and hunting, and Bukovel, the largest ski resort in the Ukraine, is situated in the Ivano-Frankivsk Oblast (province) of the western Ukraine. The 2010-2011 winter season recorded 1,200,000 day visits with foreigners amounting to 8-10% of all visitors. In 2012, the Bukovel was named the fastest-growing ski resort worldwide. This year in winter, it was deserted, and hoteliers, tour operators, etc. lost around 80% of their expected tourism.

Tour operators are of the view that they cannot even plan for next month, because no one knows how long this unrest will continue.

Thousands of students in the Ukraine, particularly in Kiev, work part-time as tour guides and escorts, and they pay their fees for universities and other expense for their education. Stagnation in the tourism industry in the Ukraine is a financial collapse for these youth.

โ€œWeโ€™ve seen a slowdown across all sectors, both from international and local companies, with sales at many companies slow this month and expected to be weak next month. So we are adopting a wait-and-see approach instead of offering cheaper packages to clients,โ€ said Anna Kosmakov, a local tour operator.

www.dnd.com.pk

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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