Albany, NY -- (SBWIRE) -- 11/22/2013 -- Travel and Tourism in Ukraine to 2017

The report provides detailed market analysis, information and insights, including:

- Historic and forecast tourist volumes covering the entire Ukrainian travel and tourism sector
- Detailed analysis of tourist spending patterns in Ukraine for various categories in the travel and tourism sector such as accommodation, sightseeing and entertainment, foodservice, transportation, retail, travel intermediaries and others
- Detailed market classification across each category with analysis using similar metrics
- Detailed analysis of the airline, hotel, car rental and travel intermediaries industries

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Executive Summary

Inbound and domestic tourists in Ukraine declined during the review period (2008–2012). However, the country’s hosting of the UEFA European Football Championship in 2012 aided recovery in the tourism sector, presenting Ukraine as a leading tourist destination on an international platform. The growth fuelled by Euro 2012 is expected to continue over the forecast period (2013–2017), as indicated by increasing domestic and international tourist volumes. The anticipated growth will also be supported by government initiatives to promote business and leisure tourism.

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Scope

This report provides an extensive analysis related to tourism demands and flows in Ukraine:

- It details historical values for the Ukrainian tourism sector for 2008–2012, along with forecast figures for 2013–2017
- It provides comprehensive analysis of travel and tourism demand factors with values for both the 2008–2012 review period and the 2013–2017 forecast period
- The report provides a detailed analysis and forecast of domestic, inbound and outbound tourist flows in Ukraine
- It provides comprehensive analysis of the trends in the airline, hotel, car rental and travel intermediaries industries with values for both the 2008–2012 review period and the 2013–2017 forecast period

Reasons to buy

- Take strategic business decisions using historic and forecast market data related to the Ukrainian travel and tourism sector
- Understand the demand-side dynamics within the Ukrainian travel and tourism sector, along with key market trends and growth opportunities

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Key highlights

- According to Timetric estimates, the country’s real GDP growth rate in 2013 is expected to remain low at 0.4% due to weak exports and gloomy investment prospects. However, with improvements in external demand conditions, growth is expected to return in 2014 to 2.4%, staying below the 10-year average of 3.8%. Between 2015 and 2017, Timetric expects Ukraine’s GDP growth to average at 3.6%, supported by recovery in domestic and external demand.
- Ukraine has a rich cultural heritage and natural landscapes. It is home to seven UNESCO World Heritage sites, including: the Ancient City of Tauric Chersonese and its Chora; Saint-Sophia Cathedral and related monastic buildings, Kiev-Pechersk Lavra; L'viv – the Ensemble of the Historic Centre; and the Residence of Bukovinian and Dalmatian Metropolitans.
- Domestic tourism in Ukraine was adversely affected by the eurozone debt crisis and the 34.9% decline in GDP in 2009. The country’s high unemployment rate, which was in the range of 7.9–8.8% during 2009–2011, reduced the propensity to travel, leading to declines in domestic travel and expenditure. However, with improvements in unemployment and GDP, at an average rate of 5%, expected over the forecast period, domestic tourism in Ukraine is anticipated to record healthy growth.
- Ukraine’s co-hosting of Euro 2012 with Poland encouraged the government to use this opportunity to develop the country’s tourism sector. The event improved travel and tourism revenues and resulted in the entry of around one million tourists to the country during the event. New and improved airport terminals have been built to serve incoming tourists, facilitating the increase in inbound tourist volumes.
- Hungarian airline, Wizz Air, was the first low-cost airline to enter the Ukrainian aviation market in 2008. In September 2013, Wizz Air Ukraine announced the opening of its third base in Lviv, Ukraine in April 2014. In July 2013, Spanish LCC, Volotea, also announced its plan to enter the Ukraine market in 2014 and create a new route between Madrid and Kiev.
- Ukraine’s co-hosting of Euro 2012 led to an increase in hotel construction in the country, which improved supply. However, after recording high occupancy rates during the event, the hotel market suffered as supply outstripped demand. In Kiev, the occupancy rate declined from 54% in 2011 to 44% in 2012.
- The majority of car rentals were made at non-airport locations, accounting for 79.7% of the total market value in 2012. This is expected to increase to 80.1% by 2017, totaling a market value of UAH267.3 million (US$52.9 million).
- Increasing internet penetration is supporting the growth of online travel bookings. According to the Internet Association of Ukraine (IAU), the proportion of internet users in the country increased from 33% of the total population in the third quarter of 2010 to 50% in the third quarter of 2012. Internet use in rural areas also increased by 53% in the first nine months of 2012.

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