II International Black Sea Economic Forum 7-8 October 2011

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Crimea: A Unique Destination Waiting To Be Explored 

The Autonomous Republic of Crimea opens its doors to the world and seeks investment proposals
At its Black Sea Forum, last October, Ukraine hosted over 250 Participants from 14 countries and presented Crimea Strategy of economic and social development for the period 2011 to 2020. The October Forum which took place in Yalta through the initiative of the Council of Ministers of the Autonomous Republic of Crimea was aimed at attracting investment to the peninsula’s economy and developing cooperation between the countries of the Black Sea Basin. The aim is to make Crimea a real “pearl” of Ukraine as well as a prestigious renowned resort.

Crimea is one of the perspective regions of Ukraine. As part of Ukraine, it is an important tourist, industrial and transit region which has a highly developed economy and social sphere and a talented multinational population. With the support of Ukrainian President Victor Yanukovich, large scale reforms have been introduced into the economy to bring it up to a new level of development. To attract investment for its projects, the Forum rallied high-ranking members of the Ukrainian government and of the governments of other Black Sea countries to debate issues alongside top managers of leading companies in the region and leading internationally-recognized experts. The main priorities of the cluster development of Crimea are: spa ad therapy, tourism, farming, transport infrastructure, fuel and energy, complex and heavy industry.
Key issues discussed included interregional cooperation, the potential for attracting foreign and internal investments and enhancing the competitiveness of the Black Sea countries’ economies. Other topics included developing the region’s agricultural sector and tourism. Cooperation agreements between the Autonomous Republic of Crimea and for technical assistance projects were signed during the Forum, as were interregional agreements on intensifying cooperation between Crimea and Ukraine’s regions - the Kharkiv, Odessa, Kherson and Nikolaev regions and the city of Sevastopol.

Crimea   Ukrainian National costume   Levadia, Yalta

What makes the Crimea Region attractive?
The Crimea Region is part of the Ukraine, a country which for the past eight years has recorded 160 investment projects from 98 companies. "Financial Services" appeared to be the leading sector for investment projects’ realization, while "Retail" took the position of the top-activity. This data, being relevant for the period January 2003 and July 2011, was provided by fDi Markets research and fDi Magazine, a traditional partner of the Black Sea Economic Forum.
The top three source markets for outward investment in Ukraine were Austria, Poland and Russia, providing 15%, 14% and 12% of investment projects respectively. The full list of investment markets included also Germany, UK, Belgium, Estonia, and Latvia, Italy, Netherlands and other countries.

The top three destination cities for inward investment were Kyiv, Odessa and L'viv.
While ‘Financial Services’ was the leading sector for investment (18% of projects), the leading business activity was ‘Retail’, which accounted for 27% of projects. The average number of jobs created per project was 226.

Crimea though has directed its strategy towards five key areas:
1. Reformation of resort-sanatorium and tourist sectors;
2. Formation of a 21st agriculture sector;
3. Modernization of branch sector industry;
4. Development of Transport potential and
5. Creation of an environment favourable for life.

With regards to the tourism sector, the plan is to create competitive tourist products at world class level. This will include the development of a recreational complex and infrastructure, exploitation of new territories so as to reduce the strain on existing ones.
They plan to increase the length of the holiday season and make better use of their coastal resources by being innovative and introducing new products. The use of smaller properties such as boarding houses and guest houses will be legalized.
Crimea intends to protect its heritage and the environment by expanding the construction of hiking trails and beaches.
Unesco heritage guru Professor von Droste attended the Forum to highlight on the importance attracting investments to maintain or restore cultural heritage. He added that Unesco World Heritage sites have become the core of international travelling so much so that they can be reards as a modern travel guide.

Planned tourism investments include:
1. The construction of a “Dinoland” amusement park;
2. The construction of the “Golden Beach” complex in Greater Yalta;
3. Reconstruction of climatic pavilions into hotel complex – Kempinski on the Livadia’s beach.
4. The construction of a “Crimea Grand Prix Circuit“
5. “ECOCITY” - a western Crimea – Evpatoria’s resort
6. Reconstruction of the “Saki” sanatorium into a modern five-star resort;
7. Development of regional air transportations
8. Construction of a yacht marina
9. Contruction of the complex “The Port of Yalta”
Among others.
Above all, there is the need to develop the transport potential with the construction of highways, improvement of rural and existing roads and the passenger system. Yalta itself will benefit from a modern commercial sea port and a marina. The Mayor of Yalta who has made it his personal agenda to put tourism very his on his city’s agenda describes all these developments as exciting times for Crimea (read full interview).

Facts about Crimea

Most of Crimea has a temperate continental climate, except for the south coast where it experiences a humid subtropical climate, due to warm influences from the Black Sea. Summers can be hot (28 °C/82.4 °F Jul average) and winters are cool (-0.3 °C/31.5 °F Jan average) in the interior, on the south coast winters are milder (4 °C/39.2 °F Jan average) and temperatures much below freezing are exceptional. Precipitation in the interior is low with only 400 mm (15.7 in) a year. On the south coast precipitation is more than double of that, Yalta annually receives about 1,050 mm (41.3 in). Because of its climate, the southern Crimean coast is a popular beach and sun resort for Ukrainian and Russian tourists.

How to do business in Ukraine



Executive Traveller 2003