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Ukraine’s regions did not have an opportunity to show their benefits to European tourists. The next year the capital will take the main European song contest. It means that the capital business would get profit from the event.
Ukraine received the right to host the Eurovision-2017 by the victory of Jamala singer, who performed '1944' song on the deportation of the Crimean Tatars. The victory was quite unexpected: the bookies predicted the Ukrainian singer would get the fourth place.
Immediately after that, a question of hosting city arose in Ukraine. Kyiv, Lviv, Odesa, Kharkiv, Dnipro, and Kherson have filed the applications. A special commission assessed candidates and 22 July named the finalists. They were Kyiv, Odesa, and Dnipro. The intrigue was delayed, and the announcement of the results was postponed for several times, prompting criticism of the Mayors and the participants.
As a result, the commission voted for the capital. Culture Minister Yevhen Nishchuk admitted that when choosing a winner, he looked at the investments that the city was ready to allocate for the contest. "Odesa was ready to invest 150 million UAH in the show itself, and 1 billion UAH in the infrastructure," he said. Kyiv gave guarantees that it was ready to allocate no less than 200 million UAH to hold the event, and 1 billion UAH to improve infrastructure. The minister also stressed that a safety factor was also take into account.
Odesa officials have painfully responded to the defeat. "I love Kyiv, here we can see another example of a rigged game and total absence of state thinking," said the governor of Odesa region Mikheil Saakashvili. "All the illusion has vanished, and I am sure that for the construction of the Ukrainian state we need new approaches and new people," he added. The scandal concerning hosting Eurovision was so great that the Prime Minister Groisman intruded. According to him, the city which was properly prepared for hosting has won the competition. "This is not a political issue; it is a question of music. Eurovision is a song contest, where people come to sing, and politics has nothing to do with it. This competition is very important for the credibility of our country, so it should be held at a high level," said the Prime Minister. In turn, President Petro Poroshenko has preferred capital to organize an event at the highest level.
The city officials, in turn, are rubbing their hands. "Capital objectively is the most prepared and adapted city for holding such an event. It has an experience of hosting the Eurovision Song Contest (2005), Euro 2012. So we have all the possibilities to adequately prepare and hold a competition at the highest level," said the mayor of Kyiv Vitali Klitschko.
For example, the city has already decided on the main arena for the Eurovision Song Contest. The head of the tourism department of the Kyiv City State Administration Anton Taranenko said that it was initially planned to hold a competition at the Olympic stadium (it is planned to fully cover the arena), but then the choice was made in favor of the International Exhibition Centre. "Tourists will be able to get to the concert hall by the boats from the Poshtova Square," he says.
Eurovision will bring the city a good income. According to estimates by Anton Taranenko, 20-30 thousand foreign guests might visit the city during the contest. "Every tourist will spend approximately 100 euros daily. The tourists might bring some EUR 20 million for the period from 5 to 15 May," he estimated.
Who would earn the most? First of all, Kyiv hotels. For example, according to consulting firm JLL (Ukraine), the average load of high-quality hotels was 37% in the first half of 2016, while the average rate is 3.85 thousand UAH per night. The hotels would get some extra 135 million UAH. Winners and owners of apartments that rent them for daily rent in the central part of the capital. Those who are giving their apartments doe rent would also benefit from the musical event. The average fee for the apartments might amount to $30 per day. "All the rooms could be rented through booking.com system," report the realtors. At the same time, and the base of proposal might increase due to the apartments that have not been leased.
Kyiv restaurateurs would good some income as well. General Director of "Restaurant Consulting" Olga Nasonova says that in late April-early May, many Kyiv restaurateurs would likely raise prices by 20-30%. But despite this, prices in Kyiv restaurants will still be quite low for the European tourists. A good lunch in Kyiv restaurant costs from 7 to 10 EUR. In the capitals of Eastern Europe, a similar meal would cost at least twice as expensive.
The remainder of the expected 20 million EUR amount, which is about 250 million UAH, would be shared by souvenir sellers, taxi drivers, transport companies, supermarkets, tour operators, and shops selling clothes and shoes. "If Ukraine holds a singing contest at a high level, in 2018 and 2019, the flow of tourists into the country can radically grow. It might be a two-fold increase in the number of tourists," noted on of the CEO of a major tour operator.