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Without exaggeration, the entire country applauded the idea of hosting the UEFA EURO 2012 football championship along with Poland.
Of course I, like you, would want to see Europe’s national football teams competing in the sports arenas of Kyiv and Donetsk.
I imagine it will be a great month. Summertime. Great football. Friends. Beer. What’s not to like?
Every article I’ve read on the topic predicts an upcoming economic boom in Ukraine supposedly sparked by EURO 2012. Unfortunately, these expectations are unrealistic.
Yes, of course, Ukraine can count on the arrival of thousands of tourists during June 2012. Hotels will be filled to capacity.
Restaurateurs, taxi drivers and many others will make lots of money during the championship month.
But Ukraine will have to work rather hard before that and pay a huge upfront cost.
On Feb. 22, the government approved its program to prepare and host EURO 2012.
The tournament will cost the country $26 billion, according to its figures.
Notwithstanding the Cabinet of Ministers plan to obtain 80 percent of this amount from private investors, it’s still an enormous investment.
It’s not much less than all the direct foreign investment Ukraine has received since achieving independence.
While it’s tempting to envision all the construction spurring economic growth, in reality it could become a dangerous trap for the country.
Investment into a stadium built to host only five games in Lviv, and then lie empty after the tournament, could have gone towards building factories and schools.
A large part of financing for these infrastructure projects will be paid by raising taxes, which means the Ukrainian competitive landscape will be artificially worsened for years to come.
All these projects strengthen the position of big business at a time when Ukraine needs to foster small business development.
To put it another way, even if a million tourists come to the country during the tournament, each would have to spend roughly $25,000 to cover the expense of hosting EURO 2012.
Another popular myth alleges that hosting the Championship will “put Ukraine on the map” and thus create the conditions for a tourism boom long afterwards.
So quick, tell me who hosted EURO 1996? EURO 2000? The Winter Olympics in 2006?
I agree that EURO 2012 has much significance for Ukraine’s national self-esteem. At the same time, that pride will cost every Ukrainian $5,000.
That’s a tough bill to bear.
