Shortage of quality space in Kyiv means conferences move out of the capital.
Recent years have seen a jump in the number of conference halls in Kyiv and other cities in Ukraine, but demand continues to far outstrip supply. As a result, conference managers often find it challenging to balance price and value when organizing big events.
Experts say that the problem exists because conference halls are only available at two extreme ends of the market – expensive luxury halls with high levels of service or cheap, Soviet-era premises. The demand is, by contrast, primarily for quality, middle-range locations.
The opening of several four- and five-star hotels in Kyiv and other major cities has contributed to an increase in the number of upscale conference halls. InterContinental, Hyatt, Radisson SAS, Opera and Riviera in the capital, Donbas Palace in Donetsk and Opera in Lviv all have conference halls.
“In general, the conditions for organizing events do lag behind neighbors, such as Poland and Russia, but the gap is closing,” said Stephen Butler, managing director for Ukraine at Adam Smith Conferences.
The range of conference halls and their levels of service are improving as more conference venues and hotels open and enter the market, added Butler.
But despite the increase, competition among expensive conference halls is still not sufficient to bring the price down significantly, according to conference organizers.
A peek inside InterContinental Kyiv’s Grand Ballroom. (Courtesy photo)
At the same time, middle-class conference halls were hardest hit by the economic downturn as clients’ budgets decreased, forcing service operators, event managers and contractors to drop their prices.
“We, as conference operators, and our contractors try to come to agreement on anything,” said Nataliya Dubovaya, project manager at New Logic Conference Service.
To solve the challenge of a lack of mid-range facilities, conference managers have started to use not only special-purpose halls but also cinemas, galleries, concert halls and conference rooms in exhibition centers.
“Basically, every big hall can be transformed into a conference hall, but additional efforts are necessary to equip it,” said Andriy Tkachenko, marketing director of S&T Global Service.
Specially trained personnel, state-of-the-art equipment, catering and Wi-Fi coverage are a must nowadays, and, of course, convenient locations. Conference halls in newly built hotels and business centers in big cities meet all of these requirements the best. Meanwhile, in small cities there are only Soviet-era leftovers.
Nevertheless, Tkachenko says that a lack of good locations in Kyiv means that more and more conferences are arranged outside the capital. The advantage of such locations is the possibility to combine work with recreation at the seaside or in the mountains.
“In resort areas in western and southern Ukraine, the level of service is constantly improving,” said Tkachenko.
According to experts, real change on the market of conference halls will happen only when separate convention centers are built with a variety of rooms for small and big groups of people. Currently, halls for fewer than 50 people are the easiest to find, and there are also many available halls for up to 100 people. Premises for events with more than 200 participants are the hardest to find, especially when meetings need to be held in several rooms simultaneously.
Adam Smith Conferences’ Butler said that, unlike Poland and Russia, Ukraine isn’t suffering from “conference fatigue,” where businessmen and politicians are tired of attending conferences. This makes the market ripe for development. “More events in the future will increase competition. Conference venues and hotels will raise their game,” he said.
Kyiv Post staff writer Olga Gnativ can be reached at [email protected]
