EURO Fans May Spend Over EUR 400 Mln in Ukraine – Erste Bank Report
Kyiv, May 24, 2012. The new report by Erste Bank research unit forecasts economic benefits Ukraine and Poland may gain from their role as co-hosts of the European Football Championship EURO 2012. The document estimates that each of the expected 500,000 visitors to Ukraine will spend the average of EUR 800 over their three to four day stay in the country.
The report divides the economic effects of the championship into two categories – direct and indirect. Direct benefits include the increased investment and tourist inflow. Namely, Erste Group Research ranks growth rate for fixed capital formation in Ukraine in 2011 as high, reaching 9 percent. Comparably, the respective indicator for Poland amounts to 8.5 percent, also scoring as high.
The analysts reckon EURO 2012 investment to have helped dampen the negative aftermath of the economic crisis in Ukraine, boosting growth. In simple terms, EURO 2012 gave jobs to 69,000 people in Ukraine and additional budget income of EUR 3 billion in taxes, states the report.
Furthermore, in preparation to EURO 2012 Ukraine obtained 3,455 kilometers of new or renewed roads, 1,700 kilometers of railroads and 902 new vehicles of public transport. Ukrainian citizens will enjoy 21 new or renewed hospitals, 290 hotels, and even 44 electricity generating stations, notes the Erste Group Research report. “The investments in infrastructure were neither excessive, nor overdone,” indicates the report.
Erste Group Research lists the long-term benefits from better infrastructure and enhanced attractiveness of the country (including appeal as investment destination) as indirect benefits. The Erste Bank experts note that the football championship will bring Ukraine into public eye securing the country “its biggest self- presentation so far”. Referring to Ukrainian ambitions to integrate with the EU, the text concludes: “Quite importantly, Ukraine will be shown as a co-host with EU member Poland, which vividly demonstrates Ukraine’s strategic objectives”.
Interestingly, on May 23rd International Herald Tribune issued a one-page special Ukraine: EURO 2012 covering the football championship organization, the state of infrastructure, and tourist attractions in Ukraine.