ЛЬВІВСЬКИЙ МІЖНАРОДНИЙ ЕКОНОМІЧНИЙ ФОРУМ

Review of the main financial and economic characteristics of L’viv (2007 and 2008 years)

The city encompasses over 11354 enterprises – businesses, among which 1454 are big and medium, and 9900 are small.

The total revenue of city budget income for 2008 is 1516 m hryvnias.
The sum total of spending is for 2008 equals 1582 m hryvnias.

The rise of salary occurred in all spheres of employment, most of all in spheres of public and individual services, sport and cultural activities, leisure and entertainment (by 37.4%), financial sphere (by 36.6%), postal services and communication (by 36.4%), hotels and restaurants (by 28.7%) and real estate and rental-related activity, engineering and providing services for entrepreneurs (by 28.5%).

2844.1 m hryvnias was invested for development of economy in L’viv from January to September 2007.

Funds of enterprises and organizations remain the main source for investments (60.4% of total amount).

Outstanding of January 1, 2008, total amount of direct foreign investments in L’viv reached the figure of $ 580.2 m.

The major spheres invested are financial activity – $276.2m (47.6%), remanufacturing industry - $135m (23.3%), trade - $63.5m (10.9%).

A working group was initiated in the city that works on a strategy of the city development for the period till 2027.

The main priorities for investment are manufacturing industry and city infrastructure development, particularly transportation and communication with 27.7% of total volume of investments directed to them.

L’viv City Council is one of the first in Ukraine that launched bidding (auction) for land. 5.94 ha of land were sold with total cost of 41.8 m hryvnias in 2007.

The average price for 1 square meter of land meant for house building equals 243.67 hryvnias in 2007.

Level of unemployment – 7% (in the L’viv district for the first semester of 2008)

L’viv is one of the four cities in Ukraine to host the football championship EURO 2012.

L’viv has the eights place among fifty best cities of Ukraine according to the Focus magazine survey of 2007 and occupies the second place according to an Internet survey.

L’viv occupies third position for tourist attraction according to the Focus magazine (48points out of 50) and goes after Kyiv and Odessa. The seventh place in the survey of investor attraction testifies to its significant investing potential.

L’viv took the 8th place in the survey “The best city to live in” (2007).
According to a Correspondent magazine survey of 2007, L’viv was among 15 best cities for leisure (for the May holidays), alongside with Istanbul, Tbilisi, Saint-Petersburg.

The international rating company «Standard & Poor’s» confirmed the B+ rating of L’viv

On March 3, 2007, the international rating company «Standard & Poor’s» confirmed the B+ rating of L’viv according to international scale and «uaА+» according to national scale, the prognosis of the rating being “stable”.

«Standard & Poor’s» indicates that the level of the rating is supported by the rapid economic growth of the city and the growing budget income.

The “stable” prognosis reflects the agency’s anticipation as to the continuation of the economic growth of the city. The support from the central government is expected. The agency says: “Such measures allow the local government to successfully implement the ambitious investment programme and to stand the pressure of the growing current expenses.”

«Standard & Poor’s» emphasizes that the rating growth is possible if only the city is able to cope with the most pressing problems in the sphere of infrastructure and to prepare to host Euro 2012, gradually increasing its dept but not exceeding the limit of 40% of all income by the end of 2011.

The report states that all economic sectors of the city displayed a stable growth during 2005-2007. Financial indexes of 2005-207 were quite high, and net surplus was on the level of 14% of current income. Even though the pressure of growing income will cause a decrease of this index, most probably it will remain on the moderate level of 7.5% in 2008-2010.

The current expenses of the city in this year, as well as the previous one, are expected exceed 27%. The welfare level remains at its usual position and the average salary will constitute 300$. The deficiency together with fundamental costs will increase and is expected to be less that 10-12% of all income for the period till 2011.

Only 7 Ukrainian regions are included into the «Standard & Poor’s» rating (L’viv, Kyiv, Ivano-Frankivs’k, Luhans’k, Dnipropetrovs’k, Odessa, the Crimean Autonomous Republic. The rating of L’viv alongside with Ivano-Frankivs’k and Odessa is the highest among all Ukrainian cities according to the general criteria.

The L’viv International Airport is located in the southern part of L’viv. One can get there either by car or by trolleybus from any part of the city.

The L’viv International Airport is an important air traffic centre in Western Ukraine. It provides an aerial link between L’viv and other regions of Ukraine and of the world. More than 100 thousand passengers and approximately 40 tons of pricy goods overgo the airport each year.

The airport is considered the second geographic zone on the scale of world air transport. The airport has a second ICAO (International Civil Aviation Organization). The average daily airport handing capacity constitutes 5400 passengers and 480 flights.

• runway – 20 operations per hour;
• Providing that the planes are of middle class and carry 120 passengers each, the airport can serve 2400 passengers per hour;
• apron (16 parking loads situated 300 m away from the airport) – 1920 passengers per hour;
• terminal station – 240 passengers per hour;
• surface link traffic to airport arriving and departing at a 10-minute interval – 1100 passengers per hour.

The size of the runway equals 2510 x 45 meters. The artificial runway has a hybrid chemise and is applicable for 24hour exploitation during one year.

The runway as a primary technological object of the airport is equipped with landing systems and devices for landing approach at meteorological conditions regulated for the airport of the second ICAO minimum category. The maximum runway is equipped for receiving aircraft with maximum allowable take-off weight not exceeding 350 tons.

Flights to and from L’viv are provided by Aerosvit, Carpatair, L’viv airlines, Austrian Airlines, LOT, International Ukrainian Airlines, Ukraine and Mediterranean Airlines, Yutair, Donbusaero.

Further information: www.airport.lviv.ua
According to a development plan for Euro-2012, the airport is to be reconstructed, alongside with the construction of a new terminal and nearby infrastructure.

For the L’viv public Electrotrans enterprise trolleybus park renovation 40 new trolleybus items are required. This will provide transportation in volumes necessary during the following 5 years. It is also necessary to affect repairs of trolleybuses already in use.
One of the main ways to solve the problem of transport connection between the Sykhiv residential area with the population of 120 thousand inhabitants and the city centre is to built tram line to the Chervona Kalyna Avenue. The fulfillment of this project will allow to increase the speed of passengers transportation to the city centre and will improve the safety and quality of transportation, it will also relive the negative influence on the environment.

Construction of the road and trolleybus rout to the Ryasne residential area through the Levandivka residential area is planed.

The improvement of city and suburban passenger transport is an important question. One of the first steps is to reduce the routes of intercity transport to the bus stations on outskirts and to ban for intercity routes to enter the city centre.

It is planed to develop the chain of bus stations by means of reconstruction and expansion of already existing ones, as well as building of new bus stations.

L’viv railway is one of the oldest in Ukraine. The first train arrived in L’viv from Vienna on 4 November, 1861. At the beginning of the XX century a need emerged to build a railway station in L’viv. The new building was put in commission on March, 26, 1904. The railway station was considered one of the best in Europe from both architectural and technical viewpoint.

The modern L’viv occupies a key position in the Ukrainian Railway system. Its structure encompasses 354 stations, 252 of which are available for freight operations. Due to its geographical location the L’viv trunk line provides passenger and export-import frights transportations between East and West, South and North, as well as connection to such European capitals as Berlin, Budapest, Bucharest, Warsaw, Vienna, Vilnius, Minsk, Moscow, Prague, Sofia. That is why it is called the gates between Ukraine and Europe. The railway connection with European countries, CIS and Baltic region is provided by 19 boarder crossings equipped with facilities necessary for loading, transportation of freights and changing the sequence of car.

The Mostyska-2 L’viv railway station is equipped with metals diversion devise that receives cars with automatic wheel switching device of SUW2000 type from railway 1520 mm to railway 1435 mm and in reverse order. This enables to reduce the time of the journey, to increase the number of passenger trips of direct connection between Ukraine, CIS and European countries.
Tourist spot

Considering the importance of the tourist industry for the city, the policy of effective tourism development is conducted, the target of which is to promote L’viv as tourist attraction city, to involve tourist routes into the city and funds for the tourist complex development and to create a nice socio-cultural environment.

The main strategic goal of tourism development in L’viv consists in formation and popularization of competitive tourism system of L’viv that will boost its international reputation and consumer demand (from Ukraine, as well as foreign countries), and will also contribute considerably into social, economic and cultural
development of the city as a result of increase in the city budget income, involvement of investments, conservation and efficient exploitation of cultural, historical and natural heritage, the development of scientific and educational potential, folk art and craft, hotel industry, transport system, trade and nurturing enterprises, improvement of health care, introduction of new ways of information circulation, shaping of national dignity, improvement of personality and society, creation of new vacancies in various economic spheres.

Tourism development strategy in L’viv presupposes the following key directions:

Development of effective tourism management system in L’viv.
Professional improvement of tourist sphere stuff.
Boosting L’viv’s tourist image.
Improvement of the L’viv tourism infrastructure.

The implementation of the L’viv city development strategy caused the evolution of L’viv tourism onto Ukrainian-wide and international tourism markets. The tourist flow to L’viv increases every year as well as the volume of hotel services. Tourism acquires a more significant meaning to L’viv.

L’viv became one of the most popular tourist cities in Ukraine. It is visited by tourists from 120 countries yearly, primarily by citizens of Poland, Germany, Russia, the USA, Austria, Italy, Great Britain, Belarus’, Hungary, Canada, France, Israel. Tourist services are provided by 160 L’viv tour operators and tour agents. Excursion routes are supplied by 200 qualified guides. Hotel services are provided by 40 hotel enterprises, with total capacity of 5 000 suites. L’viv gradually becomes a popular tourist market of Europe.

Tourists from other Ukrainian cities with the involvement of tourist agencies.
Tourists from abroad with the involvement of tourist agencies.
Participants of tours that include L’viv.
Tourists on their own.
Foreign tourists from L’viv region resort sites.
Tourists from Poland.
Foreign and native guests and relatives of L’vivites

ANDRIYSADOVYI

City major

tel.: +38 (032) 297-59-00
fax: +38 (032) 297-59-00
e-mail: a.sadovyy(at)city-adm.lviv.ua

79006, Ukraine, L’viv, Rynok Square 1

SERHIYKIRAL’

head of department of International Economic Relations and Investments

tel.: +38 (032) 254-60-06
fax: +38 (032) 274-40-85
email: invest(at)city-adm.lviv.ua

79006, Ukraine, L’viv, Rynok Square 1

		VIII LVIV INTERNATIONAL ECONOMIC FORUM Українська версія English version

Main Program Press center Sponsors Sponsor Media partners For sponsors Accomodation Dnister Leopolis Grand Hotel Hotel Suputnik Registration For investor City of Lion Contact		The economic L’viv The economic L’viv Review of the main financial and economic characteristics of L’viv (2007 and 2008 years) The city encompasses over 11354 enterprises – businesses, among which 1454 are big and medium, and 9900 are small. The total revenue of city budget income for 2008 is 1516 m hryvnias. The sum total of spending is for 2008 equals 1582 m hryvnias. The foreign trade turnover of goods constitutes $1141.8 m The rise of salary occurred in all spheres of employment, most of all in spheres of public and individual services, sport and cultural activities, leisure and entertainment (by 37.4%), financial sphere (by 36.6%), postal services and communication (by 36.4%), hotels and restaurants (by 28.7%) and real estate and rental-related activity, engineering and providing services for entrepreneurs (by 28.5%). 2844.1 m hryvnias was invested for development of economy in L’viv from January to September 2007. 3362 hryvnias of investments were directed per each citizen. Funds of enterprises and organizations remain the main source for investments (60.4% of total amount). Outstanding of January 1, 2008, total amount of direct foreign investments in L’viv reached the figure of $ 580.2 m. $273 m were invested into economy of the city during 2007. The major spheres invested are financial activity – $276.2m (47.6%), remanufacturing industry - $135m (23.3%), trade - $63.5m (10.9%). The volume of investments per citizen reached the figure of $768 in 2007. 34 countries of the world are represented by the investors who fund L’viv. A working group was initiated in the city that works on a strategy of the city development for the period till 2027. The main priorities for investment are manufacturing industry and city infrastructure development, particularly transportation and communication with 27.7% of total volume of investments directed to them. L’viv City Council is one of the first in Ukraine that launched bidding (auction) for land. 5.94 ha of land were sold with total cost of 41.8 m hryvnias in 2007. The average price for 1 square meter of land meant for house building equals 243.67 hryvnias in 2007. Ukraine’s seventh largest city Population: 856 600 citizens Total area: 171 square kilometers L’viv is a centre of the L’viv district (population 2.5m) Level of unemployment – 7% (in the L’viv district for the first semester of 2008) Average remuneration $251 23 universities 158 000 students L’viv is one of the four cities in Ukraine to host the football championship EURO 2012. The historical centre of the city is a UNESCO heritage site. L’viv has the eights place among fifty best cities of Ukraine according to the Focus magazine survey of 2007 and occupies the second place according to an Internet survey. L’viv occupies third position for tourist attraction according to the Focus magazine (48points out of 50) and goes after Kyiv and Odessa. The seventh place in the survey of investor attraction testifies to its significant investing potential. L’viv took the 8th place in the survey “The best city to live in” (2007). According to a Correspondent magazine survey of 2007, L’viv was among 15 best cities for leisure (for the May holidays), alongside with Istanbul, Tbilisi, Saint-Petersburg. Credit rating of the city The international rating company «Standard & Poor’s» confirmed the B+ rating of L’viv On March 3, 2007, the international rating company «Standard & Poor’s» confirmed the B+ rating of L’viv according to international scale and «uaА+» according to national scale, the prognosis of the rating being “stable”. «Standard & Poor’s» indicates that the level of the rating is supported by the rapid economic growth of the city and the growing budget income. The “stable” prognosis reflects the agency’s anticipation as to the continuation of the economic growth of the city. The support from the central government is expected. The agency says: “Such measures allow the local government to successfully implement the ambitious investment programme and to stand the pressure of the growing current expenses.” «Standard & Poor’s» emphasizes that the rating growth is possible if only the city is able to cope with the most pressing problems in the sphere of infrastructure and to prepare to host Euro 2012, gradually increasing its dept but not exceeding the limit of 40% of all income by the end of 2011. The report states that all economic sectors of the city displayed a stable growth during 2005-2007. Financial indexes of 2005-207 were quite high, and net surplus was on the level of 14% of current income. Even though the pressure of growing income will cause a decrease of this index, most probably it will remain on the moderate level of 7.5% in 2008-2010. The current expenses of the city in this year, as well as the previous one, are expected exceed 27%. The welfare level remains at its usual position and the average salary will constitute 300$. The deficiency together with fundamental costs will increase and is expected to be less that 10-12% of all income for the period till 2011. Reference Only 7 Ukrainian regions are included into the «Standard & Poor’s» rating (L’viv, Kyiv, Ivano-Frankivs’k, Luhans’k, Dnipropetrovs’k, Odessa, the Crimean Autonomous Republic. The rating of L’viv alongside with Ivano-Frankivs’k and Odessa is the highest among all Ukrainian cities according to the general criteria. The L’viv International airport The L’viv International Airport is located in the southern part of L’viv. One can get there either by car or by trolleybus from any part of the city. The L’viv International Airport is an important air traffic centre in Western Ukraine. It provides an aerial link between L’viv and other regions of Ukraine and of the world. More than 100 thousand passengers and approximately 40 tons of pricy goods overgo the airport each year. The airport is considered the second geographic zone on the scale of world air transport. The airport has a second ICAO (International Civil Aviation Organization). The average daily airport handing capacity constitutes 5400 passengers and 480 flights. Estimated airport handing capacity parameters: • runway – 20 operations per hour; • Providing that the planes are of middle class and carry 120 passengers each, the airport can serve 2400 passengers per hour; • apron (16 parking loads situated 300 m away from the airport) – 1920 passengers per hour; • terminal station – 240 passengers per hour; • surface link traffic to airport arriving and departing at a 10-minute interval – 1100 passengers per hour. The size of the runway equals 2510 x 45 meters. The artificial runway has a hybrid chemise and is applicable for 24hour exploitation during one year. The runway as a primary technological object of the airport is equipped with landing systems and devices for landing approach at meteorological conditions regulated for the airport of the second ICAO minimum category. The maximum runway is equipped for receiving aircraft with maximum allowable take-off weight not exceeding 350 tons. Flights to and from L’viv are provided by Aerosvit, Carpatair, L’viv airlines, Austrian Airlines, LOT, International Ukrainian Airlines, Ukraine and Mediterranean Airlines, Yutair, Donbusaero. Further information: www.airport.lviv.ua According to a development plan for Euro-2012, the airport is to be reconstructed, alongside with the construction of a new terminal and nearby infrastructure. City Development Transport System For the L’viv public Electrotrans enterprise trolleybus park renovation 40 new trolleybus items are required. This will provide transportation in volumes necessary during the following 5 years. It is also necessary to affect repairs of trolleybuses already in use. One of the main ways to solve the problem of transport connection between the Sykhiv residential area with the population of 120 thousand inhabitants and the city centre is to built tram line to the Chervona Kalyna Avenue. The fulfillment of this project will allow to increase the speed of passengers transportation to the city centre and will improve the safety and quality of transportation, it will also relive the negative influence on the environment. Construction of the road and trolleybus rout to the Ryasne residential area through the Levandivka residential area is planed. The improvement of city and suburban passenger transport is an important question. One of the first steps is to reduce the routes of intercity transport to the bus stations on outskirts and to ban for intercity routes to enter the city centre. It is planed to develop the chain of bus stations by means of reconstruction and expansion of already existing ones, as well as building of new bus stations. Railway to numerous European cities L’viv railway is one of the oldest in Ukraine. The first train arrived in L’viv from Vienna on 4 November, 1861. At the beginning of the XX century a need emerged to build a railway station in L’viv. The new building was put in commission on March, 26, 1904. The railway station was considered one of the best in Europe from both architectural and technical viewpoint. The modern L’viv occupies a key position in the Ukrainian Railway system. Its structure encompasses 354 stations, 252 of which are available for freight operations. Due to its geographical location the L’viv trunk line provides passenger and export-import frights transportations between East and West, South and North, as well as connection to such European capitals as Berlin, Budapest, Bucharest, Warsaw, Vienna, Vilnius, Minsk, Moscow, Prague, Sofia. That is why it is called the gates between Ukraine and Europe. The railway connection with European countries, CIS and Baltic region is provided by 19 boarder crossings equipped with facilities necessary for loading, transportation of freights and changing the sequence of car. The Mostyska-2 L’viv railway station is equipped with metals diversion devise that receives cars with automatic wheel switching device of SUW2000 type from railway 1520 mm to railway 1435 mm and in reverse order. This enables to reduce the time of the journey, to increase the number of passenger trips of direct connection between Ukraine, CIS and European countries. Tourist spot L’viv as a tourist attraction Considering the importance of the tourist industry for the city, the policy of effective tourism development is conducted, the target of which is to promote L’viv as tourist attraction city, to involve tourist routes into the city and funds for the tourist complex development and to create a nice socio-cultural environment. The main strategic goal of tourism development in L’viv consists in formation and popularization of competitive tourism system of L’viv that will boost its international reputation and consumer demand (from Ukraine, as well as foreign countries), and will also contribute considerably into social, economic and cultural development of the city as a result of increase in the city budget income, involvement of investments, conservation and efficient exploitation of cultural, historical and natural heritage, the development of scientific and educational potential, folk art and craft, hotel industry, transport system, trade and nurturing enterprises, improvement of health care, introduction of new ways of information circulation, shaping of national dignity, improvement of personality and society, creation of new vacancies in various economic spheres. Tourism development strategy in L’viv presupposes the following key directions: Development of effective tourism management system in L’viv. Professional improvement of tourist sphere stuff. Boosting L’viv’s tourist image. Improvement of the L’viv tourism infrastructure. The implementation of the L’viv city development strategy caused the evolution of L’viv tourism onto Ukrainian-wide and international tourism markets. The tourist flow to L’viv increases every year as well as the volume of hotel services. Tourism acquires a more significant meaning to L’viv. L’viv became one of the most popular tourist cities in Ukraine. It is visited by tourists from 120 countries yearly, primarily by citizens of Poland, Germany, Russia, the USA, Austria, Italy, Great Britain, Belarus’, Hungary, Canada, France, Israel. Tourist services are provided by 160 L’viv tour operators and tour agents. Excursion routes are supplied by 200 qualified guides. Hotel services are provided by 40 hotel enterprises, with total capacity of 5 000 suites. L’viv gradually becomes a popular tourist market of Europe. The L’viv Celebration Week (April, 27-May, 4) testifies to this statement. During the week the city hosted around 95 thousand tourists and guests. Those were: Tourists from other Ukrainian cities with the involvement of tourist agencies. Tourists from abroad with the involvement of tourist agencies. Participants of tours that include L’viv. Tourists on their own. Foreign tourists from L’viv region resort sites. Tourists from Poland. Foreign and native guests and relatives of L’vivites L’viv tourist organizations hosted almost 10 000 people. ANDRIYSADOVYI City major tel.: +38 (032) 297-59-00 fax: +38 (032) 297-59-00 e-mail: a.sadovyy(at)city-adm.lviv.ua 79006, Ukraine, L’viv, Rynok Square 1 SERHIYKIRAL’ head of department of International Economic Relations and Investments tel.: +38 (032) 254-60-06 fax: +38 (032) 274-40-85 email: invest(at)city-adm.lviv.ua 79006, Ukraine, L’viv, Rynok Square 1


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VIII LVIV INTERNATIONAL ECONOMIC FORUM