Attraction of investments into tourism sector in the EU member states The existing practice of special economic regime of natural resources management for selected areas Workshop on European experience in sustainable tourism in coastal areas Dr. Frederic Thomas University of Nice Sophia-Antipolis Simferopol, November

Attracting investments into tourism Private sector’s expectations  Main factors for tourism and tourism-related companies to invest in countries  Growing popularity of the destination  Existing general infrastructures for tourism (roads, airport, water supply, electric and telecommunications facilities)  Availability and quality of inputs, including personnel (low labor costs)  Favorable foreign investment policy and incentives  Political, social and economic stability 2 Workshop on European experience in sustainable tourism in coastal areas

Attracting investments into tourism Government’s measures  To create the conditions allowing an increase of productivity factors for the private sector  Productivity spillovers from public infrastructures and goods (Macro level)  Development of clusters (Micro level) 3 Workshop on European experience in sustainable tourism in coastal areas

Attracting investments into tourism The EU framework (1)  The Agenda for a sustainable and competitive European tourism (October 2007)*. The Agenda has the objective to develop a framework for the implementation of policies in the tourism domain and in other sectors related to tourism and provides investors in the tourism sector with added value. * Built on the recommendations of the Tourism Sustainability Group 4 Workshop on European experience in sustainable tourism in coastal areas Sustainable management of destinations, Integration of sustainability concerns by businesses and, Sustainability awareness by tourists.

Attracting investments into tourism The EU framework (2)  Sustainable conservation and management of natural and cultural resources  Minimizing resource use and pollution at tourism destinations including the production of waste,  Managing change in the interests of the well being of the community,  Reducing the seasonality of demand,  Addressing the environmental impact of transport linked to tourism,  Making tourism experiences available to all without discrimination, and improving the quality of tourism jobs  Ensuring that tourists as well as the local communities where tourism services are offered are safe and secure 5 Workshop on European experience in sustainable tourism in coastal areas

Attracting investments into tourism The EU framework (3) EU Principles for achieving a competitive and sustainable tourism Take a holistic and integrated approach Plan for the long term Achieve an appropriate pace and rhythm of development Involve all stakeholders Use best available knowledge Minimise and manage risk Reflect impacts in costs Set and respect limits, where appropriate Undertake continuous monitoring 6 Workshop on European experience in sustainable tourism in coastal areas

Attracting investments into tourism The EU framework (4) 7 Environmental Natural resources use Environmental management Pollution prevention Economic Profit Cost saving Economic growth Research & Development Social Standard of living Education Communauty Equal opportunity Sustainability Source: University of Michigan Workshop on European experience in sustainable tourism in coastal areas

Attracting investments into tourism Ukraine 8 Workshop on European experience in sustainable tourism in coastal areas  The joint Ukrainian-Polish project (2002) – To explore the directions and possibilities of investments to be put into the Ukrainian tourist industry with the Polish experience in this sphere being taken into account,  Inventory of the tourist infrastructure  Marketing research  Investment Map (including a number of attractive projects that can be invested)  Law on the Special Status of Investment Activity in the Territory of Priority Development in the Special Economic Zone ‘Port Crimea’.

Attracting investments into tourism Ukraine 9 Workshop on European experience in sustainable tourism in coastal areas  Law on the Special Status of Investment Activity in the Territory of Priority Development in the Special Economic Zone ‘Port Crimea’.  Five-year exemption from customs duties on import of raw materials and equipment together with ancillary items, and no value added tax on equipment together with ancillary items which is imported exclusively for the needs of realization of an investment project;  Three-year exemption from taxes on the profits gained from the realization of an investment project; in the next three years, profit taxes are levied at the rate of 50 percent of the existing tax rate; the sums of investments in the form of monetary funds, material assets and intangible assets will not be included into the gross revenue;  Exemption from the rent on land for the period of the development of the rented plot of land, but no more than for five years;  Exemption from the obligatory sale of foreign currency gained as profits

Attracting investments into tourism Ukraine 10 Workshop on European experience in sustainable tourism in coastal areas  Despite strong policies to attract investors into Ukraine, the Ukrainian hotel industry reacts to the changes of market conditions too slowly  Investments into hotel industry are perceived as unattractive by domestic investors since those usually require large funds and considered to be long-term;  Absence of the long-term and affordable financial sources, accessible to the domestic companies;  Absence of the strategic investors on the Ukrainian market that would be able to attract investments in demanded volumes.

Attracting investments into tourism EU examples 11 Workshop on European experience in sustainable tourism in coastal areas  Invest in Spain “Best environmental practices may lead not only to tax deductions and other financial benefits but can even win public contracts and private clients.”

Attracting investments into tourism EU examples 12 Workshop on European experience in sustainable tourism in coastal areas  Invest in Denmark

Attracting investments into tourism EU examples 13 Workshop on European experience in sustainable tourism in coastal areas  Invest in France

Attracting investments into tourism EU examples 14 Workshop on European experience in sustainable tourism in coastal areas  Sustainable investments = Sustainable tourism  A new form of incentives  Externalities  Other forms of benefits than financial  A new image of the destination  Clean energy  High tech  Attractive lifestyle Ensure the long term competitiveness, viability and prosperity of tourism businesses,

Attracting investments into tourism 15 Workshop on European experience in sustainable tourism in coastal areas Thank you