Sentiment Survey
Ukraine Hospitality Sentiment Survey
The global crisis caused by the COVID-19 pandemic has drastically altered the tourism industry worldwide, and Ukraine is no exception.
Tourism, a crucial economic sector, has been significantly affected due to severe restrictions on cross-border travel. The Ukrainian hotel and aviation industries are struggling to survive by minimizing costs and capitalizing on domestic demand.
The Ukrainian Association of Hotels and Resorts (UHRA), along with international tourism experts from Horwath HTL, conducted a survey to provide an overview of how stakeholders perceive the challenges brought about by the pandemic.
Market Snapshot
A national online survey of hoteliers in Ukraine highlighted the pressing issues faced by the industry, including:
- Current status of hotels in regional centres and rural establishments.
- Measures taken to counteract the pandemic’s impacts.
- Survival strategies soon.
- Necessary government assistance and subsidies for the hotel industry.
The survey emphasizes the short-term effects on the industry amid the unpredictable dynamics of the pandemic. Strict quarantine restrictions and lack of financial support have led to staff reductions, halts in innovation, and the suspension of new projects, causing further damage to the industry.
Survey Findings
Revenue Changes:
- 93% of respondents reported a decline in revenues.
- 21% experienced a 25-40% decrease.
- 33% saw a 40-60% decline.
- 30% had revenue drops exceeding 60%.
- Only 4% reported increased revenues, mostly from rural hotels.
Measures Taken:
- 66% optimized costs by reducing staff.
- 66% lowered prices to attract more guests.
- 63% focused on product and service improvement.
- 33% implemented digital and marketing tools.
- 27% introduced alternative services like co-working spaces.
Staff Reductions:
- 75% of hotels laid off employees.
- 33% reduced staff by 20-40%.
- Over 15% reduced their workforce by more than 40%.
Loan Restructuring:
- 75% of hotels do not have loans.
- 10% successfully renegotiated loan terms.
- 9% are in ongoing negotiations.
- 6% failed to renegotiate with banks.
Business Future Outlook:
- 70% will continue operations despite restrictions.
- 20% will operate with limitations, partially closing some departments.
- 7% plan to close temporarily until tourism rebounds.
- 2% are preparing to sell their properties.
Government Support Needed:
- 76% need wage compensations for lockdown periods.
- 66% call for effective virus control instead of economic shutdowns.
- 60% seek exemption from land and real estate taxes for 2021.
- 44% suggest significant VAT reduction on accommodation services.
- 36% propose cancelling the tourism tax from Q4 2020 to the end of 2021.
- 13% require compensation for bank loan interests.
Recovery Expectations:
- 23% expect to return to 2019 revenue levels in 2021.
- 57% anticipate recovery in 2022.
- 20% plan for recovery in 2023 or later.
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