The document summarizes a public debate held in Kiev, Ukraine on whether tourism should be a priority sector for Ukraine's economy. While all speakers acknowledged Ukraine's tourism potential, opinions differed on whether it requires prioritization and state support. Pro-prioritization speakers argued tourism benefits other industries and jobs, and states actively support their tourism industries. Anti-prioritization speakers countered that tourism is like any business and infrastructure/regulations must improve first before prioritizing or subsidizing it. The audience vote both before and after showed overall support for prioritization, though support decreased by 25% after the debate.

1. www.debaty.org
TOURSIM IS A PRIORITY SECTOR FOR UKRAINE’S ECONOMY
PUBLIC DEBATE BRIEF
PHOTOS - TBD
October 28th, 2010
Teacher’s House, Kiev, Ukraine
Ukraine faces growing competition in its traditional markets. Therefore, selection and development of new high
growth potential sectors should be considered. Tourism is an important and growing sector in the global economy
and has been leveraged by many developing countries in their economic growth strategies. The Public Debate on the
motion “Tourism is a priority sector for Ukraine’s economy”, was organized to provide a platform for constructive
discussion of Ukraine’s tourism potential and pros and cons of its prioritization for the country’s economic growth and
prosperity.
All the speakers of the debate were unite in acknowledging Ukraine’s high tourism potential granted by its beneficial
geographical position, natural and historical heritage. The debate therefore centered around the issue of its
prioritization. Speakers from the ‘for’ panel argued that tourism is a special sector, which can not be developed
effectively without well thought through development strategy, and its prioritization by the state is therefore
required. Speakers from the “against” panel, however, pointed that no industry could be developed in isolation to the
economy as a whole, tourism could not flourish without proper infrastructure, education and regulatory system. If
those areas are not fixed mere prioritization will not deliver substantial results, while if the proper playing field is
created, tourism activity would grow without addition aid from the side of the state. The audience voting results
before and after the debate showed general support for the motion even through the number of supporters
decreased by 25% during the debate.
Public Debates are aimed to promote debate culture, to increase public awareness of important challenges facing
Ukraine and to contribute to the formation of educated socio-political consensus concerning future country
development.
Speakers FOR the motion Speakers AGAINST the motion
Boris Kolesnikov Igor Burakovsky
Deputy Prime Minister of Ukraine Head,
Institute for Economic Research and
Policy Consulting
Ivica Cacic Yevhen Hlibovytsky
Head, Managing Partner,
Marriott Hotels International Ltd., Pro.mova Consulting Company
Eastern Europe
Croatia

2. Key Statements
Boris Kolesnikov: “Tourism provides Ukraine undeniable Igor Burakovsky: “To a great extent tourism is the same
advantages: a huge multiplier effect on agriculture and as any other business. Therefore, instead of providing
food industry, opportunities to get a well-paid job for industry-specific subsidies it is better to create good
foreign language speaking talented young people.» business climate and infrastructure, and let business
Nowadays, the governments of the Western world decide where to invest. Furthermore, before providing
actively help their tourism industries to develop, any subsidies we need to make sure that this investment
Ukrainian state should start to actively cooperate with will pay back, we have to calculate and assess value
business for tourism development as well.” first.”
Ivica Cacic: ‘’Tourism is not the same as any other Yevhen Hlibovytsky: “It is a mistake to think that by
business, it is specific and has to be planned and providing quick make up to the look of our cities for the
promoted in a coherent fashion… It’s been forecasted EURO-2012 we will get huge tourist inflow. Tourists will
that tourism is to grow by 54% in the next 10 years and only come if they see value. You can give subsidies for
by 2020 there will be around 1.3 to 1.4 billion tourists hotel construction, but how will you subsidize good
arrivals world wide, while 42% is currently absorbed by service, client orientation and integrity?! As soon as
Europe. Ukraine is part of Europe and this is an Schengen visas are abolished I doubt that Lviv or
opportunity you should seize.’’ Bukhavel will remain interesting to any.”
Q&A Session and the Audience Comments
Comment: Galina Rotova, Royal Voyage: «Ukraine has unique historical heritage which can be compared to Egyptian
pyramids in its significance. The problem is that as a private business we do not have enough scope to use and manage it
properly?»
Q: Igor Golubakha, Ukrainian Association of Tourist Operators: “I think, in order to attract tourists all we need is a high
quality infrastructure.”
A: Boris Kolesnikov: “We heavily invest into roads and airports for the EURO-2012 championship. However, the problem is
that there are no airport managers in Ukraine. We invited former manager of the Abu Dhabi Airport to work and train our
young people, so that in 2-3 month there will be around 10 internally grown managers in Ukraine.”
A: Ivica Cacic: “It is much easier to build roads than to educate people. Tourism starts with education, it starts in kinder
garden, there are no fast results, therefore you should start as soon as possible not to miss the train.”
Q: Igor Burakovsky: “Have you made proper calculations concerning how much the subsidies you provide to the hotel and
restaurant industry will cost the budget?”
A: Boris Kolesnikov: “21 million hryvnias – that’s the sum we currently get from profit tax on hotels and restaurants. And
now think how many companies we give a chance to grow, how many young people we provide with opportunities by
abolishing it for 10 years.”
A: Ivica Cacic: “They have taught me in the school that it`s much better to have 50% of something than 100% of nothing.
So I can only tell you that this measure of actually relieving the investors of a profit tax for the next ten years had catalyzed
the process of building hotels in Ukraine. And these hotels while built will stay here forever for the people of Ukraine.”
Voting Results We would appreciate your participation in our next
debate on public health
to be held on February 22, 2011
at Teacher’s House, 57 Vladimirskaya Str.
Start time: 19:00
Further information and the full version of the debates can be found
on: www.debaty.org, www.feg.org.ua
Debate videos are also available on www.youtube.com
FEG, 23-F Kudryavskaya st., Kiev, 04053, Ukraine
tel: +380 44 501 41 00
feg@feg.org.ua