19. Kamianets' Podilsky, Ukraine: What the Community Wants. Planning for Tourism Development
The Problem
Originally, eight strategic directions were initially selected when drafting a strategic development plan for the city of Kamianets’ Podilsky. Following a deeper and more comprehensive analysis, a decision was made to concentrate on four development priorities. Tourism development was selected as one of these priorities. City residents have been showing a significantly higher level of civic activism in recent years. This has had a significant influence on local policies with citizens participating in local government decision making. When conducting a public opinion survey regarding city development priorities, 47.9 percent of the residents selected tourism development as the key priority. Specific steps were needed to be developed and applied to fully develop this priority area.
The Solution
The working group, which designed the tourism development strategy and action plan, had a permanent membership of 42 representatives drawn from all community sectors. The working group worked out operational objectives, action plans, and specific activities to ensure the achievement of these objectives. Specific implementers, completion dates, and required resources were assigned for each activity.
The city’s vision as a tourist destination was formulated as follows:
A city, universally known in Ukraine and throughout the world, providing quality services for tourists and conducting a diverse program of cultural, artistic, scientific, and sports events based on the developed regional tourism infrastructure.
The goal of tourism development was defined as the transformation of tourism into a highly profitable industry capable of catering to the needs of domestic and foreign tourists, promoting the development of the local economy, creating a high level of employment, and increasing city budget revenues. This was all based on the natural and climatic, recreational, socioeconomic, and historical and cultural potential of the city and the region.
A SWOT analysis of Kamianets’ Podilsky’s tourism potential helped to create a list of the city’s strengths and weaknesses. Five key operational objectives were identified. A list of activities to be completed within a concrete timeframe was developed for achieving each of the objectives.
Below is the list of the key activities created for the achievement each of the objectives.
Objective 1: Promoting tourism development through balanced local policies
The Directorate for International Contacts and Tourism of the Kamianets’ Podilsky City Council coordinates tourism activities in the city. To consolidate efforts in tourism development and promotion, the region’s key tourism entities have set up two NGOs: the Kamianets’ Tourism Cluster and the ECOTOUR Cluster. A Coordinating Council for City Tourism and Excursion Activities has been set up, and regulations for city excursion activities have been drafted and approved.
Three educational institutions in the city are now training personnel for the tourism industry. The city’s tourism infrastructure companies and the educational institutions have made agreements on student internships.
Objective 2: Development of domestic tourism
City promotional activities are carried out using the mass media, participation in trade shows, including international ones, the holding of city events and festivals, both national and international, and the publication of printed promotional literature (picture albums, guides, booklets, etc.).
City tourism companies are continuously developing new services and improving existing ones.
In an effort to build the tourism industry, the city annually hosts a stage of the Ukrainian national rally championship, the Sky Brotherhood aeronautics championship, the Kanianets' Rock Climbingcompetition, and many other events. The Ethnic Cultures and Cossack Games international festival have become a tradition, as has the Old Fortress national children’s arts festival.
Objective 3: Development of foreign tourism
Information on international promotion and city's tourism opportunities are posted on the Web sites of Kamianets’ Podilsky’s sister cities in Poland, Slovakia, and the United States, and are published in the local media of sister cities. Meetings between the managers of the local tourism companies and foreign tour operators were organized in 2002-2004. A number of events to celebrate the Year of Poland in Ukraine were held in the city in 2003.
Kamianets’ Podilsky’s promotional video, in Polish and English, was released in 2002. Starting in 2004, the city videos are being produced in eight languages. Kamianets’ Podilsky guides, picture albums, and Old Fortress guides, both in Polish and English, have also been published.
Objective 4: Development of tourism and municipal infrastructure
Proposals for restoring city's historical quarter have been included in the Municipal Program for Attracting Investment.
A commission has been set up to monitor efficient use of premises and land plots in the Old Town.
There are currently ten hotels for tourists in the city, compared with only four in 1999. At the same time, the present accommodation capacity cannot keep up with the growing demand. Work is currently underway to build and renovate other hotel facilities.
Museum displays have been arranged at the Archeology Department, an exhibition of city defenses is being held in the West Tower dungeons, and the Town Hall vaults now house an exhibition of judiciary practices. The exterior of the Town Hall has been renovated, as well as its interior exhibition halls, which hold the Money Museum and Municipal History Museum. Street lighting along the main tourist route has been upgraded, and the system of illumination in the Old Fortress has been renovated.
The national and regional governments provided UAH 5,050,000 in 1999-2004 to conduct emergency work at various monuments at the Historical and Architectural Reserve. These efforts have resulted in the complete repair and conservation of 28 historical monuments and four architectural urban complexes in the Old Castle, the Armenian Market, the Polish Market, and Trinity Square. It is expected that the national government will provide another UAH 5 million to finance the repair and conservation work in 2005.
Objective 5: Promotional and marketing activities
Since 2001, the city has been annually allocating special budget funds for promotional activities.
To promote the city and its tourism opportunities, contacts have been established with media outlets at various levels. A range of articles about Kamianets’ Podilsky have appeared in a number of popular publications. For example, promotional materials have been published in the magazines Otdokhni, Liza, Hotel and Restaurant Business, Tourism in Ukraine, President, Arkhitektura i Prestizh, UA-style, Voyazh, Mezhdunarodny Turizm, Welcome to Ukraine, X-life, and in the newspapers Den, Holos Ukrainy, Zerkalo Nedeli, Ves' Mir v Karmanie, Korrespondent, and others.
Cooperation has been organized with television channels ICTV, Inter, 1 + 1, UT-1, and STB.
The participation in seminars, conferences, and training events in tourism, as well as organization of such events in the city, sponsoring of art ensembles, sport teams, and other groups help to promote Kamianets’ Podilsky, both in Ukraine and beyond. Information about city's tourism resources are available on the city's official Web sites: www.kp.topnet.ua, www.kp.rel.com.ua, and www.kp.km.ua
The Results
The strategic approach to tourism development at the local level and support to small and medium-sized tourism industry businesses have led to an increase in the number of tourists visiting the city and in tourist services revenues. Tourism development in the city takes place in the context of development of the whole tourism industry, which, alongside with tourism companies proper, also includes service and public catering businesses, which serve both city visitors and residents alike.
As of January 1, 2004, there were 21 tourism companies in the city, three times as many as in 2000.
The number of visitors is growing every year. According to the State History Museum-Reserve, the Museum facilities hosted 166,000 visitors, including 17,000 foreigners, in 2004, four times as many as in 1999.
The growth in the number of visitors and the scope of additional services provided have had a positive impact on the excursion revenues of the State History Museum-Reserve, which have increased eightfold since 1999, from UAH 27,000 in 1999 to UAH 220,000 in 2004.
In 2004-2005, with support from the Ukraine Citizen Action Network (UCAN), the city developed the Comprehensive Program for Development of the Tourism Industry of the City of Kamianets' Podilsky for 2005-2015. The program has become a logical continuation of the tourism industry development direction as set out in the Strategic Plan.
Contact Information
20. Lviv, Ukraine: Adopting Programs for Promoting Entrepreneurship Development and Implementing an Investment Policy as a Major Component of Strategic Planning
The Problem
In the early to mid 1990s, Lviv city authorities faced a challenging task: to push city economic development burdened by a heavily centralized public administration system, an extremely bad economy, a weak local government, and no real business environment.
Foreign investments in the local economy were scarce at the time and with no real expectation of growth.
Obviously, it was impossible to rise above this very difficult situation without a clear strategy and an action plan. Consequently, the city government decided to create a strategy for municipal development. It was quite clear that the strategic plan for municipal development could not be prepared without a number of strong business partners. Therefore, the city targeted the rapid development of small and medium businesses.
The decisions made at the local level in early and mid-1990s to create favorable conditions for effective development of small and medium businesses were spontaneous and unsystematic. They could not lead to anticipated results, since most of them were conceived within the City Council, without any real involvement of the local business community in the decision making process. Another aspect of the problem was the lack of a voice to represent the needs and concerns of small and medium businesses at the city level and to participate in discussions on the drafting of city programs and regulations. Also missing was an organized effort to attract investment, particularly foreign investment.
The Solution
First of all, the City Executive Committee initiated processes to develop, adopt, and implement two separate programs intended to form a basis for the city strategic development plan. These were:
- A Program for Developing Small and Medium Businesses.
- A Program for Implementing an Investment Policy.
- The following actions were focused on the implementation of the Program for Developing Small and Medium Businesses:
- Creating a public opinion monitoring system.
- Establishing contacts with all existing business associations.
- Setting up a board of directors.
- Establishing a partnership with the NewBizNet Business Center.
- Setting up a task force to review the current legislation dealing with entrepreneurship, investment, and financial law.
- Introducing a system for monitoring and updating of the program on an annual basis. Initially, the system was discussed by the Board of Directors and the standing commissions of the City Council.
The action plan for implementing the program was reviewed and approved by the City Council on a yearly basis. The annual action plan was named “Business Development Program for the Year XXXX.”
The Program for Developing Small and Medium Business (see the attachment) can be used by other Ukrainian cities as a model. It represents a list of practical management decisions which were implemented in Lviv from 1995 through 2002.
Implementation of the Program for Implementing the Investment Policy (developing an investment promotion process) was based on the actions listed below.
- The Investment Office was set up in 1992.
- The Economic Development Office was created in 1995 as a structural unit of the Department for Economic Policy and Resources.
- A program for the annual economic analysis of enterprises (including communal enterprises) was implemented.
- An annual trade fair focusing on investment opportunities was introduced in 1995 as part of the City Day celebration.
- The Lviv Investment Directory was prepared and published for the first time in 1997.
- “Lviv as a Pearl of Europe,” an economic promotional booklet, was published in 1997.
- The Investment Opportunities of the City and Enterprises section was added to the Lviv City Council Web site in 1998 (www.city-adm.lviv.ua).
- A promotional CD and booklet have been issued on a yearly basis since 1998.
- A plan for promoting trade fairs in the city was developed in 1999.
- Publication of the yearly statistical bulletin, “Status of Economic and Social Development of the City of Lviv,” began in 2000. The bulletin, currently published jointly with the City Statistics Department, includes analysis of statistics for the past decade.
- Since 2001, annual international economic forums have been held with the Oblast State Administration. The forums are intended to present regional investment and business opportunities.
The Results
Since the major components of the Program for Developing Business and Attracting Investments were implemented in 1998, Lviv has seen a rapid growth of foreign investment: from $6.5 million in 1998 to $36.6 million in 1999. This positive trend has continued: Foreign investment totaled $39.7 million in 2003.
Total Foreign Investment (in thousands of USD), Lviv City
The effectiveness of this comprehensive approach to economic development can be seen in the growth of business revenues (see the chart below). This trend is expected to continue for many years to come.
Proceeds (Gross Income) from Sales of Produce (Work, Services)
This program may be applied everywhere. Each city can compile a tailor-made action program. Therefore, it would be feasible to approve the program at a meeting of the City Council or approve it in the form of an action plan at a meeting of the City Council’s Executive Committee. It seems reasonable to monitor the status of implementing the program/action plan on a yearly basis and revise it as required.
Contact information
Kyiv, 04070
Tel.: (044) 425-4433
