Catalyzing Regional Growth in CrimeaBlack Sea Economic Forum, 8 October 2011

James WilsonEUUBC

103, Avenue de l’Armée, B1040 Bruxelles

87, KievskiyAve, 83007, Donetsk, Ukrai

ne50B , ZhylyanskayaStreet, Kyiv, Ukraine

Promotion of Crimea in London and Brussels May 2011

www.euubc.com

Support from European Institutions

Private Investment

February 2011: Establishment of The Agency for Regional Development in the Autonomous Region of Crimea with financial support from the EU and technical support from the UNDP

Goals: Increase Foreign

Investment

Develop local infrastructure

May 2011

Agreement on support of the “Joint Cooperation Initiative in Crimea (JCIC)” signed with the European Commission in Brussels with a budget of €12 million.

Goals:

Supporting social and economic development of Crimea

specific focus on tourism

building social infrastructure

promoting Foreign Direct Investment

EU keen to do more to encourage and promote regional development particularly in Crimea

Support ARC ambition and vision to:-

◦ Establish friendly and welcoming business climate◦ Develop improved image and branding◦ Promote a stable and attractive FDI environment

Reduce disparity and development gap with other regions in Ukraine

Key element in process of political association and economic integration

Crimea first Region in Ukraine to secure EU Regional Development Budget Line

www.east-invest.euA European Commission initiative, managed by EUROCHAMBRES, implemented by the East Alliance and co-financed by the European Union

85 Partners from the EU, Turkey and the Eastern Partnership countries:

Important goals for growth

Key flagship projects developing transport potential ◦ Transport infrastructure

◦ Airport construction

◦ Port development

Key tourism projects◦ Hotel development

◦ Cruise terminal development

www.ard.crimea.ua

The Cruise Industry has yet to gain traction in the Black Sea compared with other parts of Europe, where the industry is well established

Distribution of cruise tourist spending (in euros) calculated by EU sea basin

Source: Study by European Commission on Maritime Industry in 2009

Sea Basin Passengers Tourist Spend€

Value Added€

Mediterranean 1.1 bn 1.3 bn 607 m

Baltic Sea 146 m 183 m 73 m

North Sea 103 m 131 m 59 m

Black Sea 1.3 m 1.7 m .6 m

According to the Regional Development Agency for Crimea: “Development of Crimea’s hotel industry, specifically through attracted investment, is a growing priority. There are currently more than 30 investment projects in the pipeline to develop the ARC’s hotel industry.”

InterContinental Hotels Group sets sights on growth in Russia Plans for 100 hotels in Russia and CIS by 2020

Develop long term strategic partnerships for growth Hospitality training

Language training

Recruitment centres for global brands

Building supply and distribution for global brands

EU UNDP and other International Institutions identify support key projects and provide legitimacy/transparency for investors Improved Branding, Image

and Business Environment of Crimea attracts Investors and International Corporations to invest in flagship projects

Questions?