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Lviv Racing to Meet Euro 2012 Deadline

This month will  see  Euro  2012-related  activity  in  Lviv  rech a  fever pitch as city officials work  to meet UEFA’s  tough 30 November deadline.  In April 2007 Ukraine and Poland were  designated as sites to co-host the UEFA European championships  in  2012.  This decision  is monumental  on  two  fronts. First, it marked the first occasion since the fall of the Berlin  wall 20 years ago where  the UEFA championships would be held  in  two  countries  formerly belonging  to  the  communist camp. Second, for Ukraine still a fledgling democracy belong- ing neither to the EU nor NATO, it was one of the biggest single achievements since it gained independence 18 years ago. The challenge now is to make sure Lviv is selected as a host city.

The Euro dividend 

Experience has shown that large international  sports  events  such as  the Olympic Games or  football championships  bring  significant benefits  to  its  host  countries  by way  of  FDI,  infrastructure  development  grants  and  the  positive spillover  benefits  gained  from  a  growth in tourism, the creation of jobs  in  the  construction  and  service industries. If we look at some of the impacts of holding the UEFA Euro  championships  in  previous years, one  can  see  that  for Switzerland, which hosted the event in 2008,  it proved  to be  the biggest sports event ever held. The overall direct  and  indirect  economic  impacts were substantial, boasting a  turnover  totaling around CHF 550 million  and  a  gross  value  added of  about  CHF  320 million.  In  the case  of  Portugal  in  2004,  statistics show  that  the National Gross  Product  of  this  country  grew  by 0.02  to 0.1%  thanks  to  the event which only lasted a few weeks.  These  financial  track  histories are very encouraging  for Ukraine, notwithstanding dissenting voices which  negatively  assess  the  impacts of large international sports  events on host country economies arguing  that events of  this nature often  do  not meet  forecasted  returns  on  investments  and  do  not bring long-lasting and sustainable impacts.  However,  despite  these varying  opinions,  in  the  case  of Ukraine  an  opportunity  to  host  the  football  championships  can only be viewed through a positive prism because  the event will create  opportunities  that  otherwise would not exist under normal circumstances  in  light  of  Ukraine’s current political  instability,  struggling  economy  and  depressed employment market.  Thanks  to  Euro  2012  Ukraine expects  to  see  additional  investments  of  USD  7  billion  into  the country’s economy, which will be forwarded to construction of highways,  stadiums,  airports,  hotels, railway  reconstruction,  technical refit  of  local  TV  and  radio  companies,  reconstruction  of  student dormitories,  creation  of  modern public  transportation systems, as  well  as  development  of  essential infrastructure  in  the  chosen  host cities. This is an important opportunity  and  catalyst  for Ukraine  in its  overall  modernization  seeing that over  its 18 years of  independence  little  attention  has  been spent on these important projects by  all  subsequent  governments. Euro  2012  is  also  important  for Ukraine and Poland alike, beyond  the  financial  returns, as  it will allow  both  countries  to  establish even  closer  relations  as  partners in  business  and  international  relations,  allow  them  to  showcase their countries to rest of the world and  secure  a  leap  forward  in  the standards of life for their citizens.

A cure for regional unemployment?   

This  is  good  news  for  Lviv  as the  labour  market  will  be  able to  heave  a  sigh  of  relief with  its promise  of  new  jobs.  According to Mr. Stepan Lukachek  from  the Lviv Oblast Administration, works on a new stadium and  infrastruc- ture will create between 3000 new jobs  and  another  3000  jobs  will be  created  in  building  a  new  airport  in Lviv. Another 3-4000 new jobs will be created in engineering networks, setting up communications  and  building  new  roads.  In total  another  25,  000  jobs  could  be  created  in  Lviv  as  a  result  of the  championships.  Lukachek also  indicated  that  another  5000 new  jobs  will  be  created  in  the service sector.This is an opportunity that Lviv cannot afford to miss out on, but at  the  same  time  the  question of  whether  Lviv  will  be  able  to  respond  with  the  required  personnel  to  complete  the  works required still remains to be seen.  The  unemployment  figures  in western Ukraine hover at around 10% but whether this category of people  will  be  able  to  step  into these  new  positions  is  still  an open question. Lviv has placed a large bet on its citizens currently working  abroad  returning  home and  joining  the  labour  force  (approximately  1 million Ukrainians are  reported  to  be  working  in Russia alone). At  the same  time, Ukraine  will  be  in  stiff  competition with Poland  for workers,  as  Polish wage rates are more competitive. Lviv  will  also  benefit  from  the influx of  tourists  and new  vacancies  will  need  to  be  filled  in  the sectors  of  hospitality  and  services. However, the point here really is  whether  Lviv  will  be  ready  to provide  services  to  international  tourists  in  English, which will  be the  primary  language  of  interaction,  and  will  the  service  standards be on par with international standards.   

Lviv hoping to win UEFA favour   

It must also be noted that  on 13 May 2009 the UEFA Executive Committee made a few key decisions  concerning  the  selection of host cities for Euro 2012. This included not confirming Donetsk,  Lviv  and  Kharkiv  as  host  cities for group matches of Euro 2012 for  the  time  being  as  progress had  fallen  behind  benchmark dates.  However,  a  last  deadline has been granted  to  these  three cities to meet specific conditions by November  30,  2009 with  regard to the stadiums, airport infrastructure,  regional  transport and  accommodation.  In  light  of the overwhelming opportunities, Lviv has no choice but to pull up its socks before November 30  if it wants  to  cash  in  on  the  Euro 2012  football  championships and what it will mean for the region. It must move quickly on its infrastructure  projects  and  find the  necessary  funding  to  finish them  off  before  the  deadline runs out. It will also need to hire and train the right people to host the  influx of tourists who  in fact will  multiply  information  about Ukraine  abroad. Word  of mouth is  known  to  be  stronger  than any  paid-for  advertisement  and is more resilient  than any other. Let  us  hope  that  Lviv  can meet the  challenge,  show  that  it  is  a  word-class  city  and  give  itself the opportunity to move forward despite  all  of  the  challenges  on its way.