The number of international travel from January to July 2022 increased to 474 million, which is almost three times more than in the same period last year, according to the UN World Tourism Organization (UNWTO).
“The number of international travel almost tripled from January to July 2022 (plus 172%) compared to the same period in 2021 to 474 million. This means that the industry has recovered 57% from pre-pandemic levels. A sustained recovery in international tourism is being fueled by pent-up travel demand, as well as the lifting or easing of anti-COVID restrictions,” the organization explained.
As noted in the UNWTO, as of mid-September, anti-COVID restrictions ceased to operate in 86 countries around the world.
According to the organization, 207 million international trips were made in June and July 2022, twice as many as in the same period last year. The same months account for 44% of the total number of all arrivals in seven months. Most of the trips were made in Europe – 309 million.
According to the UNWTO, international tourism in Europe and the Middle East is recovering at the fastest pace. From January to July 2022, the number of trips reached 74% and 76% of the 2019 levels, respectively.
“In seven months, the number of international trips in Europe increased by 190% compared to the same period in 2021. This is due to high demand for intra-regional travel, as well as an increase in the number of tourists from the United States. In the Middle East, in January-July 2022, the number of international arrivals almost quadrupled: in July, the number of travels exceeded the pre-pandemic level by 3%, primarily due to pilgrimages to Saudi Arabia,” the organization noted.
As for the Americas, international tourism there recovered to 65% and 60% of the 2019 level and grew by 103% and 171%, respectively, compared to January-July last year.
In the Asia-Pacific region, the number of international travel is still significantly lower (down 86%) compared to 2019. However, compared to 2021, the number of trips increased by 165%.
According to the UNWTO, some sub-regions have been able to restore international travel to 70-85% of pre-pandemic levels. Thus, the Southern Mediterranean, Europe lag behind by 15% from the pre-pandemic 2019, the Caribbean – by 18%, Central America – by 20%, Western and Northern Europe – by 26% and 27%, respectively.
The Convention on the Joint Transit Procedure (CCTP) or the so-called “customs visa-free” for Ukraine came into force on Saturday: goods are already flowing into and out of the country under such a procedure, the Ministry of Finance reported.
“Today, October 1, Ukraine entered into force and business opened up the possibility of international movement of goods with 35 other participating countries under one transit document,” the press release says.
The Ministry of Finance clarified that the first country from which the cargo was sent for delivery to Ukraine under the joint transit procedure was Germany: Ukrainian customs officers already see the T1 transit declaration in the NCTS electronic transit system and are waiting for the truck to arrive.
In Ukraine, the first transit declaration for leaving the country was also issued: according to it, the cargo now follows through Poland to Germany.
Currently, the system is also awaiting the arrival of goods at the customs office of departure and other declarations, according to which the goods will be placed under the joint transit procedure and delivered to the customs offices of destination on the territory of the countries participating in the Convention, the report says.
The Ministry of Finance recalled that in accordance with the “customs visa-free” for the delivery of goods from one country to another, a single transit document is submitted: from the customs office of departure to the customs office of destination. This speeds up the passage of customs formalities at the border and reduces the associated costs for businesses. According to the forecast of the Directorate General for Taxation and Customs Union of the European Commission (DG TAXUD), Ukraine can enter the top ten countries in terms of the number of transit declarations.
“Customs is responsible for controlling the goods. We in the EU are striving to spend less time for control at the border, and more inside the country. In Ukraine, so far, most goods travel without checking inside the country – all control work takes place directly at the border. Therefore, queues form at the border. NCTS solves most of this problem: it is possible to submit a declaration to the system in advance, after checking inside the country, to put the necessary seals that are recognized in the EU. Then at the border, you only need time to read the barcode number, as it is done in a supermarket,” summed up the international expert of the Program for Public Financial Management in Ukraine (EU4PFM) Vytenis Alishauskas.
Ališauskas, CUSTOMS, customs visa-free, MINISTRY OF FINANCE, TRANSIT
On Friday, the UK announced its decision to expand sanctions against Russia in the field of IT technologies, audit services, and engineering.
The government’s message notes that, in particular, in the IT sector, consulting services for the Russian Federation will now be prohibited. It is also prohibited “to provide legal services for transactions in a number of commercial areas.” Restrictive measures apply to the advertising sector, auditing.
“The UK also bans the export to Russia of approximately 700 items of goods that are important for Russian industry and technology development,” the statement said.
It also notes that the British authorities have decided to summon Russian Ambassador to London Andrey Kelin to the British Foreign Office.
The revenue of Arricano Real Estate Plc (Cyprus), a management company and developer of a number of shopping and entertainment centers (SECs) in Ukraine, for January-June 2022 amounted to $13.2 million, which is 22% less than the results of the first half of 2021.
According to unaudited interim results for the six months of 2022, published on the London Stock Exchange on Friday, the group’s operating profit from core activities before revaluation of investment property decreased by 27% compared to the first half of 2021 to $8.7 million.
As of June 30, 2022, the average occupancy rate was 98.4% (2021: 99.5%).
“Our operations have been drastically affected by Russia’s military invasion of Ukraine. During four of the six months reviewed, the team and tenants operate under extremely stressful conditions, in which dedication, self-sacrifice and unconditional faith in our people and country are required to continue effective operations. Thanks to their often heroic efforts, we were able to continue our business during the first months of the crisis and are now well positioned to resume growth after the end of the war and to focus on our long-term goals,” Arricano CEO Anna Chubotina was quoted in the report as saying.
The revaluation of the investment property portfolio resulted in a loss of $91.1 million due to the multiple negative financial impact of the Russian invasion (for the first half of 2021 – $9 million).
The total value of the investment property portfolio decreased to $231.1 million, down 28.7% from the December 31, 2021 value of $323.9 million.
As of June 30, 2022, operating cash flow was $8.0 million, with the group’s cash balance of $12.6 million (December 31, 2021: $8.5 million).
Net asset value almost halved to $83.2 million as of June 30 from $163.8 million as of December 31, reflecting a portfolio revaluation.
According to the report, the number of visitors to the mall after the Russian invasion of Ukraine initially fell sharply. However, as the threat to Kyiv has receded, traffic has begun to recover, reflecting the return of people who migrated to safer parts of the country at the start of the war to their homes.
“We continue to see a positive trend of increasing monthly visitor numbers, which in turn has contributed to a partial resumption of sales and cash flow. The war has a significant impact on consumer behavior, resulting in a combination of reduced purchasing power and reduced consumer confidence, and this, in turn, turn, contributes to a reduction in sales. Compared to the same period last year, there was a decrease in revenue by 22%, but a positive trend has been observed since the end of the first half of the year,” Chubotin is quoted in the report.
Despite the events of the first half of the year, Arricano opened 19 new stores and establishments across the portfolio of shopping centers, including a mix of local and international brands: Ukrzoloto, Anabel Arto, Brand Shop, BraBraBra, Zolota Krajina, Provocator, Diverse, Yabloki, ODH , Sushi take out, Doner Market and Greek House. The total area of the opened stores is 988 sq. m. m.
As noted in the message, Arricano’s business is stable and trading activity has improved since the second half of the year.
“Given the ongoing Russian invasion of Ukraine, it is difficult to predict the future; however, the company is well positioned to recover to previous levels after the end of the war. Until that time, Arricano will continue to support all of its tenants, teams and the mall community,” Chubotina assured.
Arricano Real Estate Plc specializes in the construction of shopping and entertainment centers and is one of the leading developers in the Ukrainian real estate market. Owns and manages five shopping centers in the country with a total area of 147.6 thousand square meters. m: “RayON” and “Prospect” in Kyiv, “Solar Gallery” in Krivoy Rog, City Mall in Zaporozhye. The company also owns 49.9% in the Sky Mall (Kyiv) and land plots for the further construction of three facilities that are at the design stage. The company is also building the Kyiv SEC Lukianivka.
As of September-2022, the shareholders of Arricano Real Estate Plc are Retail Real Estate O.U. together with Dragon Capital Investments Limited, Deltamax Group O.U., Yuri Pold and Rauno Teder. The total stake in Teder is 70.86%.
NJSC Naftogaz of Ukraine is implementing in Lviv, together with the city council, a project for the construction of a CHP plant on wood chips, which is planned to be put into operation by February 2023.
“I am sure that by February the CHPP will be operational. It will take a few months instead of a year and a half. NAC helps with the implementation of this project both in financing and in development. several months,” Naftogaz head Yuriy Vitrenko said at a briefing during a visit to the Lviv region on Friday.
As the correspondent of “Energoreforma” reports, according to Vitrenko, the NAC, which is implementing a number of similar projects in Ukraine, is ready to support other cities in this direction. ‘We have an interest in investing in such projects in order to import less gas at enormous prices. The implementation of such projects is beneficial both economically and in terms of ecology,” Vitrenko explained.
At the same time, he noted that both the Lviv authorities and the NAC itself also have a number of agreements in order “to then attract funds from IFIs for such projects.”
Lviv Mayor Andriy Sadovoy noted that this would be the city’s first powerful thermal power plant running on alternative fuels, which would cover about a quarter of its heat needs. “We planned such a project with the EBRD for a long time, but according to their classical procedures, we could only start it next year. But the Russian aggression intensified the thought process so much that we came to an agreement with Naftogaz,” Sadovoy explained.
According to him, the participation of the national company, which is the market leader, gives more opportunities and priorities, including in obtaining equipment.
Based on the results of the competition, the Cabinet of Ministers selected Ward Howel Ukraine, Executive Search Ukraine and Pedersen & Partners to select applicants for the positions of members of the supervisory boards of the state-owned Oschadbank, PrivatBank and Ukreximbank (all from Kyiv), respectively.
According to a posting on the Cabinet’s website, the government also determined the terms of payment for the services of companies and the contract for the provision of these services.
It is indicated that the competitive selection was carried out by a commission created by the Ministry of Finance from among its employees, as well as representatives of international organizations involved with an advisory vote.
According to the law “on banks”, the Supervisory Board of the State Bank should consist of nine members, six of whom should be independent, and three – one representative of the president, the Cabinet of Ministers and the Verkhovna Rada.
