UKRAINE’s luxury market improving and set to recover by end of the year
The recently elected pro-Russia President of Ukraine seems to have had a positive effect on improving relations with Russia not only politically but also economically. Several key industrial investments have been re-started in Ukraine and GDP has seen a slight increase in the first five months of this year.
The upcoming 2012 Europa League Football Championships co-hosted by Ukraine seems to also add to the improvement of the economy. Two large five star hotels (Fairmont, Swissotel), each with approximately 500 rooms are currently under construction and are due to be finalized before the football championship. Luxury hospitality in the capital city of Kiev still boasts highest rates in the entire Eastern European region and average occupancy remains at a good 65%.
A low cost and charter airline with an investment of EUR 300 million is due to be launched mid 2011, the investment being made of a group of Ukrainian and Russian investors.
Luxury auto, perfumery/cosmetics and travel are three of the sectors which have registered an average of 5% increase in sales compared to last year. Sales of fashion, accessories have remained stable, while jewellery and watches are yet to see any recovery of sales.