Business news from Ukraine

CABINET MAKES TEMPORARY RESTRICTIONS FOR ENTRY INTO UKRAINE FOR CITIZENS OF SOME SOUTH AFRICAN COUNTRIES

The Cabinet of Ministers has introduced temporary restrictions on the entry into Ukraine of citizens of a number of South African countries to counter the spread of the Omicron coronavirus strain.
According to the decision adopted at a government meeting on Thursday, in particular, the entry into the country of citizens of South Africa, the Republic of Botswana, Zimbabwe, Namibia, the Kingdom of Lesotho, the Kingdom of Eswatini, the Republic of Mozambique, and the Republic of Malawi is limited.
In addition, citizens of Ukraine and other countries who have been in these countries for at least seven days in the last 14 days must go through mandatory self-isolation. The resolution comes into force from 24:00 on December 3.

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TOURISTS FROM SAUDI ARABIA SPEND AROUND $100 MLN IN UKRAINE DURING NINE MONTHS

The number of tourists from Saudi Arabia to Ukraine reached 48,700 people in nine months of 2021, which is 10 times more than in entire 2019, the State Agency for Tourism Development reported at a recent aviation tourism forum in Boryspil (Kyiv region).The agency clarified that its calculations were based on the assumption that the minimum expenses of one tourist are $2,000, while, according to expert estimates, they amount to $2,000-3,000.The agency indicated that the cost of the promotional campaign in the Saudi Arabian market was $120,000, another $26,000 was spent on promotional tours.Among the success factors, the agency also named the entry of the leading low-cost airline of Saudi Arabia flynas into the Ukrainian market in May this year and the flights of the Ukrainian SkyUp.At the same time, the agency indicated that in the first half of 2021, the number of tourists to Ukraine decreased by 31.54%, to 1.424 million people. The drop in the indicator was primarily due to tourists from Europe, as a result, their share decreased to 70.4% from 80% in the same period in 2020, while the share of tourists from Asia increased from 10.3% to 24.4%.

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UKRAINE STARTS REPAIR OF AIRPORTS IN POLTAVA, ZHYTOMYR AND CHERNIVTSI IN 2022

The start of repair work at three regional airports in Ukraine and the completion of work at the airports of Dnipro and Kryvy Rih is scheduled for 2022.”In 2022 we plan the start of work at Poltava airport, since the design and estimate documentation will be approved by the state examination by the end of this year, a tender will be announced and we hope that construction work will begin next year,” advisor to the Big Construction presidential program Oleh Varyvoda said during the forum “Great Construction: Aviation. Tourism” in Kyiv.According to him, plans for 2022 include the beginning of reconstruction at the airports of Zhytomyr and Chernivtsi. In addition, in 2022, it is planned to complete work at the airports of Dnipro and Kryvy Rih.

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BORYSPIL INTERNATIONAL AIRPORT PLANS TO INCREASE PASSENGER TRAFFIC

Boryspil International Airport (Kyiv) in 2021 plans to serve 9.5 million passengers, which is 82.7% more than in 2020 (5.2 million), but is only 62% of the pre-crisis 2019 (15.3 million), CEO of the airport Oleksiy Dubrevsky said at the forum “Great Construction: Aviation. Tourism.” “The dynamics of the recovery of the Ukrainian market is better than the optimistic scenario in Europe – 56% according to Eurocontrol … We see today a recovery in passenger traffic: it is due to a deferred demand, charter and low cost segments,” Dubrevsky said.According to him, the volume of charter flights amounted to 3.3 million passengers in the ten months of 2021, most of the charters are served by four airlines: Azur Air, UIA, SkyUp and Windrose. Since the beginning of the year, 468,000 passengers have passed through Boryspil airport on domestic flights.The CEO added that the low cost segment accounts for up to 40% of passenger traffic, while the transit traffic fell sharply.He specified that Boryspil accounts for over 60% of all air transportation in Ukraine.Among the priority investment projects for the next two to three years, the airport’s general director named a new air zone, the modernization of the cargo terminal, a bus station for passengers, an extension of the apron of Terminal D and a private aviation center.“About UAH 1.7 billion is planned for these projects, now we have this money,” he said.In the presentation, the airport’s needs for investments in the airfield infrastructure were estimated at UAH 9 billion, cargo transportation – UAH 3 billion, passenger – UAH 5 billion.

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NUMBER OF TOURISTS ENTERING UKRAINE INCREASES, TOP-3 BY NUMBER OF FOREIGNERS – MOLDOVA, RUSSIA, POLAND

The number of tourists entering the country has increased by 12.6% compared to the first three quarters of 2020; more than three million foreigners have arrived this year, the State Agency for Tourism Development of Ukraine reported on Facebook on Saturday.As of October 2021, among the tourists visiting Ukraine, 70% were Europeans, 25.5% came from Asian countries, 3% were tourists from North America, 1.4% from African countries, 0.6% and 0.2% from Oceania and South America, respectively (while in the corresponding period of 2020, 79.2% came to Ukraine from Europe, 17.7% of tourists came from Asia, 1.5% – from North America, 0.7% – from Oceania and African countries each).The TOP-15 countries by the number of foreigners who entered Ukraine included: Moldova – 74,630 (of which tourists – 24.09%); Russia – 411,373 (13.31%), Poland – 209,039 (6.76%); Romania – 200,370 (6.48%); Belarus – 199,553 (6.46%); Turkey – 171,955 (5.56%); Hungary – 152, 390 (4.93%); Germany – 111,675 (3.61%); Israel – 96,250 (3.11%); U.S. – 81,581 (2.64%); Saudi Arabia – 48,660 (1.57%) Italy – 39,499 (1.28%); Great Britain – 37,384 (1.21%), India – 34,947 (1.13%); Azerbaijan – 33,410 (1.08%).

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DUE TO INTENSIFICATION OF TOURISM, HOTEL OCCUPANCY IN KIEV REACHES 66%

Due to the intensification of inbound tourism, the occupancy rate of hotels in Kiev in June 2021 increased to 66%, which is 23% higher than in May, Head of the Hotel Matrix project Yelyzaveta Rudeleva has told Interfax-Ukraine.
“We see positive trends in all indicators in all major cities of Ukraine,” she added.
According to Rudeleva, Odesa is in second place in terms of hotel occupancy: an increase from 53% in May to 63% in June. This is followed by Lviv from 41% in May to 60% in June, Dnipro from 45% in May to 58% in June, and Kharkiv from 45% in May to 50% in June.
As she said, usually hotels, anticipating the high demand for the coming period, increase the price. Price and Average Daily Room Rate (ADR) certainly have different meanings, therefore, an increase in price, accordingly, affects an increase in ADR.
Compared to May, ADR indicators of all Ukrainian cities grew from 2.4% to 18.4%. ADR of Dnipro increased to UAH 3782 from UAH 3289 in May, Lviv – to UAH 2,439 from UAH 2,060, Odesa – to UAH 2,284 from UAH 2,067, Kiev – to UAH 2,031 from UAH 1,836 in May.
RevPar (Revenue Per Available Room per day) almost doubled in Lviv – from UAH 850 in May to UAH 1,557 in June. A strong breakthrough in hotels in Odesa – from UAH 1,089 in May to UAH 1,476 in June and Kyiv – from UAH 780 in May to UAH 1,345 in June. In Dnipro, this figure rose to UAH 2,174 from UAH 1,550 in May, in Kharkiv to UAH 1,058 in June from UAH 938 in May.
Statistical data for Dnipro is presented by the hotel market of four-star and five-star hotels, in Kharkiv – two-star, four-star and five-star hotels. The statistics of Kiev, Odesa and Lviv are presented by three-star, four-star and five-star hotels.

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