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“Official refutation of this information immediately stimulated the growth of bookings in all resorts.”
Facing collapsing demand, two thirds of Ukrainian hotels cut room prices last year, according to a 122 3-star hotels survey by the Association of Hotels and Resorts of Ukraine. Other responses included: upgrading facilities – 63%; and upgrading marketing – 33%.
Hotel, restaurants, bar and ‘creative industries’ lost about $3bn since coronavirus control were first imposed, in mid-March, says Kyrylo Kryvolap, coordinator of working group to develop the National Economic Strategy. Maryana Oleskiv, head of the State Agency for Tourism Development of Ukraine, estimates that tourism losses alone add up to over $2bn.
The number of Ukrainian tourists traveling abroad during the pandemic dropped by 70% — from 2.5mn in 2019 to 750,000 in 2020, Pavlo Hryhorash, chief executive of Ukraine’s Travel Agencies Association, told the Kyiv Post. Turkey and Egypt were the top two destinations.
Kyiv’s tourism tax collections nearly dropped in half last year, falling to $1.2mn, according to the State Tax Service. Never a major source of revenue, the tax is a good barometer of tourism activity.
9.1.9 Utilities sector news
Ukraine needs to disconnect from the energy system of Belarus and Russia and to join the European electricity market, through the European Network of Transmission System Operators, or ENTSO-E, two government ministers said recently. “We urgently need to disconnect from the unified energy system with Belarus and Russia, and connect to the European system,” acting Energy Minister Yuriy Vitrenko, said Friday on Savik Shuster's Freedom of Speech program. Vitrenko, who faces a confirmation vote in the Rada today, added: “This will be one of my main tasks. So that we are private, in Europe, a normal market where there is no monopoly arbitrariness, and where there is a normal transparent price.”
The Cabinet of Ministers takes over the management of National Nuclear Generating Company Energoatom, Ukrhydroenergo, Nyzhniodnistrovska hydroelectric power plant (HPP), state-run enterprise Eskhar CHPP-2, Kalush CHPP-Nova, Lysychansk CHPP, and instructs to prepare the transfer of NPC Ukrenergo, Mahistralni Gazoprovody Ukrainy (MGU) and Market Operator. This was announced by the Prime Minister of Ukraine Denys Shmyhal during a government meeting on Wednesday. He said that this is a very important decision that will contribute to the integration of Ukraine into European power markets.
Foreign Minister Dmytro Kuleba told Ukraine 24 TV in February: “Ukraine's goal is to join the European Union's electricity supply system in 2023. This means we must cut off from Belarus and from the Belarusian system, and from the Russian one, and fully integrate into the EU system. We are following this path.” Currently only 4% of Ukraine’s electricity production and consumption – parts of Zakarpattia, Ivano-Frankivsk and Lviv regions -- is connected to ENTSO-E, through Burshtyn Energy Island. The rest of the electricity network, the United Energy System of Ukraine, is connected to the
69 UKRAINE Country Report February 2021 www.intellinews.com
