Research and Development Center of the Carpathian Region “Karpathy—USA” 2002-2003

Today, tourism is one of the most developed and most dynamic industries of the world economy which engages approximately 10% of the entire workforce and produces approximately 10% of the world’s gross national product (GDP). According to leading experts, tourism industry will grow by 5% in the next five-year period creating additional two million new jobs.

Annual revenues of the world’s tourism industry equal to five hundred (500) billion U.S. dollars and expect to reach one (1) trillion U.S. dollars in 2010.

Ukraine needs to use these opportunities for its own growth.
   
Tourism in Ukraine is a sector of economy that certainly deserves more attention. This industry could significantly benefit country’s economy by creating new jobs, expanding the infrastructure, attracting foreign direct investments hence bringing additional revenues to the state budget. Research studies on the influence of tourism on the state’s economy done in many countries produced amazing results. In many cases, because of the low level of exports and intensive use of the natural resources, tourism’s influence on the national economy exceeds the influence of the rest of the industries.

ВIndeed, when visiting other countries, tourists spend considerable amounts of money and pay local and state taxes like the locals, including excise tax and value added tax (VAT). These expenditures are further being used to cover such expenses as: revenue tax, small business, and corporate taxes which are required to pay by all engaged in tourism industry. Hence, budget revenues produced by these direct and indirect taxes in some cases could equal to 55% from the rest of the revenues collected from tourism. So, tourism has the main goal to attract additional consumers and tax payers with large amounts of financial resources.

Tourism is an export industry which differs from the rest exports by one important aspect. In most export industries goods are being exported from a country to an importer. In tourism, consumer comes to the country to acquire and consumer produced goods and services. Tourism industry is highly competitive. More than one hundred (100) countries compete on world’s tourist market which constantly changes. Modern tourist prefers to travel to environmentally safe places with vast opportunities for active recreational activities and cultural experiences.
ТThe Carpathian region of Ukraine meets these demands. Carpathian Mountains feature clean air, pure rivers and lakes, picturesque landscapes along with the architectural wonders and unique folklore heritage. People of this region are famous for preserving their national traditions and customs.

The Carpathian region could attract significant numbers of modern tourists by satisfying their growing demand for safe and better standards. Unfortunately, this is not happening for the following reasons: (1) lack of government budget resources directed at carrying out marketing and promoting activities which leads to little or no information available for foreign tourists; (2) visa requirements which reflects poorly on attraction of potential tourists from abroad.

Many if not all of the Central and Eastern European countries have already cancelled visa requirements for the United States, Canadian, and European Union members. Moreover, they actively support carrying out direct marketing activities to attract as many Western tourists as possible. For example, trains in Czech Republic or Croatia are fast and comfortable, their law-enforcement officials don’t spend most of their day stopping cars or buses, airport services in their airports are getting better every day because their immigration officers began to realize the value of each tourist coming to their countries. In order to compete at such level, Ukraine needs to address and solve its problems as soon as possible.

Tourism is a service industry frequently referred as “the industry of human communications.” This is an industry where new technologies cannot diminish the quantity of newly created jobs. It is also an industry which helps remove barriers between people of different cultural backgrounds and nationalities, it creates atmosphere of peace and mutual understanding between the nations. It can be used to improve the environmental needs, preserving cultural heritage creating new jobs and bringing additional revenues to the state’s budget at the same time.

Latest International Tourist Organization (ITO) research studies on topics of influence of global economic processes on population’s recreational preferences show existing tendencies to shorten duration and increase frequency of vacation opportunities because people lack free time and job demands have intensified over the last decade. Despite the facts that some countries labor legislation and work environment tend to allow people to have more free time, in most cases the circumstances make people work overtime or take their work home. Another aspect is a possibility to “work from home” as a product of rapid development of new office information technologies leads people to use a few short-term vacations during a year.

21st century tourists will be “rich in money but poor in time.” As a result, it will lead to an increasing demand for high quality products for tourists, such as benefits packages which imply getting maximum pleasure in a short period of time. That is why nowadays people prefer thematic cruises or tourist guides with multiple options to visit great number of places in a relatively short time intervals.
Over the next decade, tourism will remain a primary source for job creation in most European countries and many tourist centers in the world. It is expected to have further diversification of available benefit option packages for tourists to attract meet growing demands of a wide variety of people. It is expected to have further concentration of financial resources which will lead to creation of powerful transnational companies and corporations. Integration processes in tourism industry will be preserved.

Another analytical study done by the ITO bases on the results of a research called “Tourism: 2020 Vision” defines the most popular kinds of tourism up to 2020: (1) adventurous; (2) ecological; (3) cultural-exploratory; (4) thematic; (5) cruise; (6) extreme. 21st century opens new powerful markets for tourism and identifies some new players. But it will also define new priorities for the world’s tourist industry.

Ukraine has an opportunity to present its own tourist product in the world market. It is called the Carpathian region, especially Ivano-Frankivsk oblast.

Ivano-Frankivsk oblast, also called Precarpathia, is located in the western part of Ukraine on the south-east foothills of the Carpathian Mountains. Overall territory of this region is 13.9 thousands square miles with the population of 1.4 million people. Carpathian Mountains are frequently referred as the “Ukrainian Alps” for its beautiful landscapes, salubrious microclimate, and comfortable geographical location. Climate here is moderately continental with a short spring, not hot summer, warm fall and mild winter. Summer in the mountains is approximately 1-2.5 months. Winters in Carpathians are perfect for skiing, snowboarding and other activities.
Most famous recreational areas in the region are: Yaremche, Morshyn, Cherche, Berkut, Verkhovyna, Osmoloda which produces mineral water brands called “Borzhomi” and “Myrgorodska”; health resorts in Vorokhta, Tatariv, Kosiv where rarefied mountainous air in ensemble with the right amount of ultra-violet rays, high content of ozone and photons produces a very good environment for active treatment of respiratory illnesses and cardiovascular diseases.

Precarpathia is an attractive and wonderful landmark to interested tourists. The Carpathian national natural park with its highest peak called “Goverla” (2061 meters, highest mountain in Ukraine), Manyava Skit, Dovbush museum, Dovbush rocks and caves is visited by thousands of people from different parts of the world annually. Natural habitat here is very favorable for active tourism as one of the ways of recreational therapy.

The evergreen Carpathians is a kingdom of unique views surrounded by coniferous and mixed forests. They are regarded as the pearl of our land. Picturesque landscapes change like in kaleidoscope. For a traveling tourist, there is an every day chance to see our beautiful villages and meet our hospitable and wonderful people. Unique nature, places of historic and cultural interest, peculiar features of mountaineers’ lifestyle will always attract tourists to the Carpathians. These mountains are equally beautiful during winter and summer seasons.
However, let me identify some of the problems we think are the most important disappointments first-timers have to face when coming to our region. No tourist agency in the region offers a full benefit recreational package for tourists in the region. Moreover, almost all tourist agencies work towards Ukrainian tourists wishing to spend vacations or week-ends abroad. Example countries these agencies serve are: Turkey, Bulgaria, Egypt, Hungary, Cyprus, Malta, and many others. Most revenues of these tourist agencies are generated from the services they offer to assist in getting visas into the countries of Western Europe or North America and also by offering tour guides through the European Union countries. With a great deal of regret, we have to say that our tour operator guides do not yet understand that hosting foreign tourists in the Carpathian region could be much more beneficial.

So, first-time tourist end up getting help from the owners of the recreational facilities who sometimes publish tour guide brochures, etc. about our region. Our center has come to a conclusion that we need to help the owners to market and promote their tourist products by not only publishing it but distributing the information via Internet.

Having researched latest ITO studies about the tendencies of tourism development in the 21st century and conducted our own scientific and research exhibition in this area taking into account tourists’ demands in the Carpathian region, we have concluded that most of incoming tourists wish to go places of alive nature, learn the surrounding environment, try traditional meals cooked from fresh and environmentally safe products. They can have all of that when they come to Carpathian villages.

Since 1996 it has been a developing phenomenon called “village green tourism.” Every year it is becoming more popular amongst the tourists which results in the growing numbers of interested people. Local village owners could provide: overnight stay, free parking, bath and shower (still rare commodity in most of Ukrainian villages), TV and laundry machine; fresh and ecologically safe groceries from the market place; fresh and clean water; free fishing, horseback riding, swimming, hunting, sunbathing, therapy messages, etc. There are also plenty of local bars, restaurants, souvenir shops, and dance clubs. These and many more features could be afforded for a very cheap price comparing to most of the Western standards.
Best places for the “village green tourism” are:

• Yaremche—a small town located on the left bank of the river Prut, 665 meters above the sea level in a uniquely picturesque vicinity, surrounded by Carpathian Mountains.
• Mykulychyn—one of the most beautiful and picturesque villages on so called “Hutshulschyna” (highland side). It is located between Yaremche and Yablunyckyy Gorge on the river Prut and has a status of mountainous recreational zone.
• Tatariv—famous for excellent and healthy climate, near Goverla, highest mountain in Ukraine (2061 meters).
• Yiablunycia—located 100 kilometers from Ivano-Frankivsk city, 960 meters above the sea level. You can find 11 ski funiculars there.
• Yiasinia—a small village 30 kilometers from Rahiv (known geographical center of Europe). You could climb Goverla Mountain from here or snow ski down a beautiful mountain called Dragobat.
• Verhovyna—a small town located 150 kilometers from Ivano-Frankivsk city and is perfect for hunting, camping, and fishing.
• Kosiv—located on a very picturesque Carpathian plateau down a mountainous river Rybnycia, 415 meters above the sea level.

We think it is very important to further develop this branch of tourism by providing the locals with necessary finances to equip or renovate their houses to meet the standards required.

Dniester area is another famous zone for tourism. Its summer climate is perfect for all kinds of tourism activities. Villages here are not just used to attract people who want relaxation but also because of their historical importance. These villages still carry architectural monuments dated back to 13th century where Duke Danylo Galychkyy used to rule there. First Ukrainian trade routes from the west to the east used to run through this region. Its magnificent landscapes, fast current of the Dniester River, mysterious caves, beautiful waterfalls continue to attract adventurous people seeking extreme tourism.

For these people we could organize three-day river tours down the Dniester River with scheduled or unscheduled stops at historical wonders and overnight camping at the local villages. We could also have rafting, canoeing or boating there.

For people who like skydiving, Isakiv and Odaiv villages is the perfect place. Located at the Dniester canyon, it attracts skydivers not only from Ukraine but also from Belarus, Russia, Poland, Germany and many other countries. Twice a year it hosts All-Ukrainian and international ? competition.

We could further advertise these activities in the media and also provide necessary living conditions for the contestants and their fans.

There is a new kind of tourism one could also try here called “bird watching tourism.” This branch of tourism in not yet popular in Ukraine but is a very profitable source for entrepreneurs. Bird watching tourism involves groups of people who like to find rare birds and observe their behavior. Dniester area has plenty of such birds that tourists might be very interesting for tourists. In some cases, tourists are willing to pay anywhere from 5,000 to 20,000 dollars for one professionally guided tour. If you subtract all the expenses, your net profit could range anywhere from 1,000 to 12,000 dollars. All that is needed is to train bi-lingual orientologysts and provide visiting tourists with room and board, meals and other living necessities.

Dniester River is also famous for the biggest regional water reservoir called ‘Burshynske vodosxovysche.’ Using conditions it has to offer, we could launch a fishing tourism there. In order to do that, we need to have an agreement with the local fisheries about seasonal guidelines and also promote it in the media. Eventually, we could build small cottages down the river banks which will give the fishermen and opportunity to come in there for a few days. If it goes well, we could have a contest for the biggest caught fish, for example.

Overall, Ivano-Frankivsk oblast has a very deep history. First people of Trypilsk culture (dated 3,5-4 thousand years ago) settled down the Dniester River banks, particularly in a village of Nezvysko in Gorodenka region. It is also an area where Galytsko-Volynske magistrate was formed with Duke Danylo Galytskyy ruling, where legendary Dovbush carried out his rebellion against rich landowners. Finally, this is the land where the first idea to have an independent Ukraine was born.
Looking down the history of Prycarpathia region, we have discovered an interesting fact. It turns out that during the times of Austro-Hungarian empire when they were building first railroads in our area, they also built another railroad from Stanislav (old name for Ivano-Frankivsk city) to Dora (near town of Yaremche), approximately 150 kilometers. Every day this narrow railroad carried one little tour train for interested visitors across towns of Bogorodchany and Nadvirna to the final destination—Dora. In Dora tourists had time to walk around the hills and some were horseback riding to the famous recreational resort in a village of Tatariv. In the late afternoon, this little train would come back to Stanislav. During the first and second world wars, this railroad was destroyed. Having tracked down the old route, we have concluded that with proper finances it could be restored again. Today, it could always host a tour guided train ride to the Carpathian Mountains and its beautiful resorts.
In addition, we could organize horseback riding tours down the Dniester canyon. Now we are working on a project to breed the horses for this purpose in one of the local villages. We could promote and advertise these activities and arrange for the logistics if proper interest is demonstrated.
In conclusion, having analyzed all of these findings, we can state that search for the new kinds of tourism and its implementation will further push the overall tourism development in the Carpathian region. It will increase the flow of tourists in the near future and in turn will improve the living standards of the people who live there by creating new jobs.