The UEFA Executive Committee will soon name Ukrainian and Polish cities that will host EURO 2012

But let’s wonder what actually transpired? Only football fans are interested in the stadiums where games will be played. All 6 Ukrainian cities (main and reserve) still must undertake major preparations for the championship according to the demands of UEFA.

It is high time to take a closer look how the event will change the lives of more than 10 million Ukrainians (which is every fourth citizen in the country) living in Kyiv, Donetsk, Dnipropetrovsk, Lviv, Kharkiv and Odesa. Until now only a few officials responsible for preparations for the championship have the idea of the bigger picture of future transformations. What will remain in those cities when they return to their daily routines after thousands of football fans from all over Europe leave the country?

Five years for the sake of two weeks?

The Ukrainian government plans to spend approximately UAH 160 bn (US $20 bn) on preparations for EURO 2012.

People that are not very interested in football might pose a reasonable question: do we really need this European football championship for which Ukraine will have to prepare for five years, yet will be a host for a mere two weeks?

"In 2004 the Euro championship was hosted by Portugal, which at that time was one of the poorest countries in Europe. The Portuguese also questioned whether they needed the Euro as it was pretty costly. They spent approximately EUR 4 bn for preparations and earned approximately EUR 400 mn. It seemed to be a totally unprofitable venture, but the years after EURO 2004 proved it was true breakthrough for such a small poor country," said Dmytro Valevych, head of the policy department at an international consulting company.

What will EURO 2012 offer Ukraine? Valevych said a comparison with Portugal offers the most accurate answer. Today Ukraine is in many respects reminiscent of Portugal five years ago: ailing economy, poor quality roads, undeveloped tourism, high unemployment and the absence of an adequate infrastructure.

"New highways, airports, hotels and stadiums remained in Portugal after the championship. None of them closed after EURO 2004, mainly because the inflow of tourists to Portugal grew by 50% in the wake of the event. Fans returned home and told friends about the great time they had. This is why tourists flocked to what was once considered a province of Europe that had transformed from an ugly duckling to a beautiful swan," said Valevych.

Today Portugal continues to reap the benefits of EURO 2004 as hundreds thousands of tourists visit the country every year. Ukraine has no less potential for development of tourism.

KW reporters were told at the Ministry of Ukraine for Youth, Family and Sports that over 350 hotels are under construction and reconstruction all over Ukraine, meaning that by 2012 the average price of hotel accommodation will fall 2-3 times and there will no longer be an opportunity to mark up prices as is practiced today.

Public transportation and roads are next on the agenda. All of the main state highways in Ukraine are in for a major overhaul. Some of them have been only repaired by 50%, others will undergo reconstruction this year (see table).

City roads are also under construction. For example, an unprecedented UAH 120-150 mn were allocated for the major reconstruction of roads and subway lines and stations in all cities hosting EURO 2012.

All airports will get international status and their passenger capacities will increase 10 to 20 times. This means that more low-coster air carriers will come to the country to make air transport more increasingly affordable.

Count in parking lots, sports complexes, entertainment and shopping malls, stadiums and beltways that will be built and the current high-speed railways will be renewed.

In any case, overall improvement of living standards in Ukraine is an abstract notion that cannot be put in your wallet. So, how can we earn money on EURO 2012?

"The championship in Portugal proved that opening travel agencies and hotels and introducing other services such as transportation, services for motorists along highways and even toilets is highly profitable. Souvenirs and accessories are very popular as well," said Valevych.

Real estate agents, cafes and restaurants will also make good coin. Opening public catering places with both national and foreign cuisine, such as English and Irish pubs and French and Italian restaurants is also a lucrative venture. Fans from those countries are sure to visit such establishments during the championship and profits could equal earnings over six months.

"Have no doubt that the more foreigners like your place, the more popular your business will be after the championship. Give each of them a souvenir and your business card to take home. Within a few months the friends and relatives of every Bob, Jean and Giuseppe will come to Ukraine in droves and will definitely visit your place. After all, advertising that is spread by word of mouth is the best ads for any business," said Vyacheslav Zharko, a trade analyst at an international consulting company.

Some business entities will not survive after EURO 2012. "The championship will give jobs for tens of thousands of Ukrainians, but one must open a business for this event intelligently taking into account all possible risks," said Zharko.

For example, large 4- and 5-star non-chain hotels are not profitable. Experts advise not opening such hotels, especially if they will be up against a fierce competition in your city. Small and comfortable hotels with 5-10 rooms will always be in demand.

Private transport companies, souvenir producers and small grocery stores will hardly earn serious profits after the event. The demand for the services of real estate agents will also fall. Only those real estate agencies in business for many years will survive. Those that opened especially for the event will not.

"One thing for certain is that after the championship Ukraine will be a totally different country. It could be that prices will inch up leading up to EURO 2012, but given the growing competition goods and services will most likely become cheaper. The main thing is that after EURO 2012 Ukraine will be respected in Europe and all over the world. The global economic crisis is turbulent at the moment, but if the championship is a success Ukraine will become a true world hero over the next decade. This is our direct road to the EU, foreign investments and a new life for the entire country," said Zharko.
proua.com