Business news from Ukraine

UKRAINIAN MINISTRY OF CULTURE PREPARES PROPOSAL ON COMPENSATION FOR CULTURE SPHERE

18 November , 2020  

Minister of Culture and Information Policy of Ukraine Oleksandr Tkachenko says that the ministry is already preparing a proposal to the government on the regime of financial compensation for cultural sector.
“The Ministry of Culture is already preparing our proposal to the Cabinet of Ministers on the regime of financial compensation. We will appeal to the European experience, because the introduction of a lockdown there provided for financial compensation from the state to business entities (including self-employed ones) for a period of downtime,” Tkachenko wrote in the Telegram channel on Wednesday.
In this connection, the minister cited calculations on the impact of quarantine on culture, tourism and creative industries.
So, according to the minister, 2% of the country’s GDP, or more than UAH 83 billion, is the total loss of business in the cultural sector, creative industries and tourism from lost income since the beginning of March, taking into account the first lockdown.
In particular, in the field of tourism: a decline in the tourist flow by 75%; average loss of income for one weekend – UAH 1,045 million.
Hotels – drop in average occupancy from 50% to 20%; average loss of income for one weekend – UAH 119,7 million.
Cinemas – 39% loss of visitors; average loss of income for one weekend – UAH 17,13 million.
Culture and creative industries (excluding IT and film networks) – loss of 50% of income due to restrictions on holding events and entering institutions, loss of solvency; average loss of income for one weekend – UAH 324.16 million.
In addition, the minister said that a lockdown of tourism, culture and creative industries could lead to a loss of about 10% of GDP over the next five years.
According to him, the recovery of markets will take place slowly due to the migration of specialists to more protected industries, and the negative balance of the labor force in creative industries will lead to the loss of their export potential and the possibility of promoting Ukraine in the world through creative products and services.

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