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Business Tourism: LVIV lures investors

The great and the good were all out at the 9th Lviv International Economic Forum in Lviv, Ukraine - Lyssiemay Annoh reports

The Forum was organised by the Lviv Regional State Administration and Lviv Regional Council, in collaboration with the fDiIntelligence/Financial Times Ltd, the Institute for Economic Research and Policy Consulting and PRP Ukraine PlaceID and Regional Initiatives. The topic was Investment, Innovation and Competitiveness. The idea was to reinvigorate Ukrainian regions against a backdrop of global economic crisis. While welcoming visitors to the forum, Mykola Kmit, Head of the Lviv Regional State Administration and Head of the Advisory Board to the 9th Lviv International Economic forum invited participants and delegates on to an open platform for a high level discussion of key challenges and prospect for revamping and strengthening of the Ukrainian regions to achieve a breakthrough in the national economy.

The Forum offered an opportunity for businesses to:
• Get hands on insight into the country’s regional economic trends, business environment, projects, locations and people;
• To learn about attractive opportunities for business development
• To have direct contact with key government & business decision-makers who shape Ukraine’s economy on the ground
For the authorities, the Forum offered an opportunity to:
• Exchange experiences regarding regional economic development and implementing anti-crisis policies on the ground;
• To look at current economic challenges through a wider regional competitiveness and sustainable development perspective;
• To learn about the practical promotion of investment. Place marketing and other economic tools that work under current economic and legislative conditions
• To find partners with the business, diplomatic and expert community

Lviv is also co-host to the UEFA-Euro 2012. Within two years, Ukraine and Poland have been actively preparing for the 2012 UEFA European Football Championship. The two countries are witnessing works in full swing at the main infrastructure objects, with progress being confirmed by UEFA experts. The Ukrainian and Polish officials are sharing experience in the run-up and welcome the success of each other. The host cities are also establishing active cooperation.

During his welcome speech, Victor Yushchenko, President of Ukaine initially addressed all the foreign investors and assured them that they were taking an absolutely right and considered step by being in Ukraine and visiting this Forum, by appreciating economic perspectives of Ukraine, particularly those of the western region. With 2 billion worth of foreign investments this year alone in Ukraine, despite the crisis shows that we have partners adequately evaluating economic perspectives of Ukraine, which are really unique”.He added that Ukrainian possibilities were being reviewed and Ukrainian executive

Victor Yushchenko, President of Ukraine

authorities – represented at the Forum were at their service for the crucial dialogue and was especially grateful that Ukraine occupies such an important place in their interests and hearts.

Ukrainian Prime Minister Yulia Tymoshenko

There were various parallel sessions including discussions and investment opportunities for business, destination and tourism. The highlight of the final day was a round table session with regional leaders led by Yulia Tymoshenko, Prime Minister of Ukraine. The aim of the session was to discuss tool for social and economic development of the regions.
Prime Minister Yulia Tymoshenko said: “…today I would like to step a little bit away from crisis theme and talk about regions development, because regional development should in crisis environment must be of a tactical importance. She added that the creation of an adequate investment climate on the territory of each community by joint efforts of central and local authorities. She implored her regional representative to see that the future of the

economy and economic structural changes of Ukraine is about maximum simplification of all procedures, investment climate improvement, deregulation, transparent and understandable for investors land treatment. She said that without that, “we won`t do anything, we won`t be able to strengthen each region economy”.

She has subsequently announced that Lviv will additionally receive UAH 28 million from the Stabilization fund of the state budget to finance the construction of the runway at the Lviv airport.
The Premier underlined that the funds for the UEFA Euro-2012 objects in the region will be transferred in due time. “I have posed the question today and they answered there are no problems in this regard”, Tymoshenko explained. She informed that she is satisfied with the course of construction of the new terminal in the Lviv airport. Moreover, the works are being performed ahead of schedule.
The Prime Minister also assured the media that UEFA had highly appreciated Ukraine’s run-up to the Championship. The head of state is convinced that UEFA Euro-2012 is the subject able to unite Ukraine and become its pride.
“Today I can say for sure that Ukraine will be successfully prepared for the 2012 UEFA European Football Championship”, Tymoshenko underscored. She added that the government controls the preparation issues on a daily basis.
Head of the Lviv regional state administration noted that Lviv region is thankful to the government for the regions’ great progress in respect of Lviv’s gearing up to the 2012 soccer competition as well as timely funding of the airport and stadium construction. “We do everything possible and impossible for the works to be implemented on schedule. I am sure that our joint activity is brining fruits”.
He underlined that Lviv is witnessing considerable progress in terms of the Championship preparations. “Despite critics, Lviv region is demonstrating excellent dynamics. Now we are confident everything will be done”.

Lviv – the destination

Lviv is the largest city and cultural centre of western Ukraine, with around 800,000 inhabitants (see map). The sense of arriving in a city with its own life starts from the airport, which cannot be compared to any other Western European airport; especially if you changed planes from Vienna! You will definitely sense differences in security culture and international hospitality.

The city itself has beautiful architecture and a landscape fit for a King! It is evident that Lviv has been part of some five or so different countries over the past 120 years. The city has a noticeably historic centre and wide variety of churches and chemists. There is even a chemist museum. You will find numerous groups of Polish tourists roaming but always seem to retreat back to the nearby border by night-time to save money on accommodation.
Rynok square in the Old town has 44 houses, with their unique history; there is the town Hall with endless stairs to the top and at last real satisfaction from the panorama of the city as you climb up the park to the top of the hill. Other highlights also include Opera theatre, theatre of Maria Zankovecka and a picture gallery.

Getting to Lviv
Lviv has a very modest international airport with connections to the rest of the world, which is several kilometres away from the city. There is a tourist information bureau nearby where you can book a hotel room, city and regional tours, and receive free informational materials from friendly ladies. However, please note that English is not widely spoken so ensure that you let them know so that you can be assisted by an English speaking person.
Lviv has a beautiful railway station is very well connected with Kiev and other cities by railway. Buses connect Lviv with surrounding countries but are invariably uncomfortable for longer trips.

What to expect of Lviv
Language is your first barrier and English is not widely spoken perhaps because they are not the principal visitors. Car rental is available but at present, all road signs are in Ukrainian so unless you can navigate through them, leave the driving to the locals.

Mykola Kmit addressing a press conference in Lviv
Mykola Kmit, Head of the Lviv Regional State Administration and Head of the Advisory Board to the 9th Lviv International Economic forum assured the media in private talks that these signs will soon be upgraded to include English.

He added that his administration was doing everything its power to make the destination as visitor-friendly as possible. At the airport you will have fend your way through departure as there no departure desks and queuing is not a habit. As is often the case in Ukraine, travel advertising tends to paint the city as a "tourist Mecca." Nevertheless, if you arm yourself with a decent guide, Lviv is probably a very well-developed tourist centre, with a sizable historic centre and decent tourism infrastructure. The residents are also used to seeing groups of foreign tourists all the time.
The city’s uneven cobblestone roads in the downtown, pit-holed streets, elegant architecture and historic buildings have its unique attraction. Weddings appeared to be the biggest past time for the locals. It is very interested to see the bridal parties carry their wedding cakes and compete with each other as they posed for photographs in some of the City’s historic buildings. However, as you stroll through Lviv's quiet and quaint old town and explore its many churches, wooded hills, cafes, and coffee shops, it is business as usual within the city of several churches. A few hours spent in the old town are more than enough to make you forget about any of Lviv's shortcomings. Not to mention the people themselves — friendly and open and polite to strangers.
Where to stay in Lviv
The Forum was held at the luxurious Rixos-Prykarpattya Resort, Truskavets, in the Lviv region. The resort is diagnostic medical treatment and rehabilitation resort complex "Rixos-Prykarpattya" is located near to the centre of Truskavets – the world’s famous balneal resort, famous by the underground sources of mineral waters, transparent air of Carpathian Mountains and picturesque vicinities.
However, Lviv itself has its own collection of hotels such as the:
Leopolis Hotel
Situated in the very heart of Lviv - Teatralna Street, 16. The central location makes it ideal both for business travellers and tourists. The Hotel offers 40 guest rooms and 3 suites where a relaxing home like environment is combined with the most modern technologies. All rooms are equipped with flat screen TVs, satellite channels and Internet connection. Bathrooms are decorated with natural stone, some of them have showers and some have baths with magnificent accessories.
The Grand hotel
Situated in the very centre of the city at Svobody Ave 13. There are 62 rooms (including 8 suites and 1 luxury suite), telephone, cable TV, mini-bar, air-conditioning, fitness centre, business centre. 24 hours Guarded parking facilities.
Nevertheless, there are other many modest hotels offering bed and breakfast facilities.
Where to eat
Lviv centre has restaurants and eateries at almost every corner.
Doing business in Lviv
Business-wise Lviv seems to be several years behind and it is hoped that the Forum will encourage investors to develop the destination prior to it hosting the 2012 UEFA European Football Championship. Nevertheless, the Ukrainian economy is an emerging free market, with a GDP that has experienced rapid growth in recent years. Formerly a major component of the economy of the Soviet Union, country's economy was constantly growing since 2000. In 2007 the economy posted real GDP growth of 7%. Ukraine was hit heavy by the economic crisis in autumn 2008 when the Ukrainian currency lost significant part of its value.
For foreign businesses starting a venture in Ukraine is always a combination of great opportunities for growth, and annoyances connected with remains of old corrupt routines, and numerous inefficiencies. However, hopefully, with further forums, things will slowly change for the better.

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