Ongoing Political Unrest to Cast Shadows over the CIS Hospitality Industry
Hotel chains from all over the world has been kicking off aggressive expansion plans into Russia & CIS over the course of last year projecting the development of new multiple properties as well as franchising agreements. The accelerated expansion plans were driven by the growth of region's economy, increase in spending power and the regions strategic business role on the international business landscape. 2014 Sochi Olympics, 2014 Sochi Paralympics Games and future 2018 FIFA World Cup fueled the interest in the region, opened numerous profitable investment & business not only in Russia but in neighboring countries. However, the recent Russian Ukrainian crisis could put all the ambitious plans in jeopardy. Unstable political and economic situation in Ukraine, potential sanctions & visa restrictions against Russia from European Countries & USA has imposed threats to long term health of the tourism and hospitality sector.
– 15th of May, 2014 in Warsaw, Poland will focus on investigation the future on the CIS Hospitality industry and will explore ways of mitigating risks in the region as well as provide elaborated plan of how to find new ways of attracting investments and increasing profits despite the political uncertainty.
"In global context, the CIS is not a commonly understood or very well-known region.Russia is often taken as the main influencer, but not necessarily a member of the CIS, which of course is not the case. In many respects, this confusion might be beneficial for some of the members, as Russia's foreign policy concerning Ukraine has put a strain on investment considerations going into or within Russia, and the hotel real estate industry has not been immune to this. The recent successful world-stage events, such as the 2014 Winter Olympic Games in Sochi have quickly been over shadowed, and much- needed hotel developments have severely, but only temporarily slowed down in Russia. Ukraine has understandably been affected, but other parts of the CIS, such as Kazakhstan, Azerbaijan, and the only former CIS member state, Georgia, appear to stay on course with their growths objectives, which have reenergized over the last few years. The panel of experts during the conference will highlight the diversities, the differing hotel industry drivers for each member state, and draw attention to the opportunities this vast region holds for investors, lending institutions, hotel operators, and shed light to some commonly made misperceptions." says Marius Gomola, Managing Director of Horwath HTL Hungary and Horwath HTL Russia, the world's largest global hotel, tourism and leisure industry consultancy network, and the pre-eminent expert in the region for 25 years.
While some remain upbeat about the industry future development, other remains quiteconcerned. Reuters report that tensions between Ukraine and Russia could delay hotel projects, and some development deals have been shelved.
"A very timely event. Russia and CIS have gone through political upheavals,institutional changes and economic troubles over the last 20 years, yet international businesses, hoteliers and otherwise, continued to pursue opportunities in this vast market. The recent events may put an end to our "business as usual" approach. We will need to take a hard look at the new realities and ask many questions - Who will finance deals? How will we deal with government funded projects? What will happen to demand? Which markets will emerge winners and which ones losers" said Takuya Ayamo, Vice President Acquisitions & Development, Hyatt International EMEA LLC
Leaders in Hospitality CEE & CIS Summit 2014 will investigate whether or not hospitalityindustry is at risk due to the political unrest in the region by encouraging the debate between regional experts who will tackle the obstacles the industry faces. Together the attendees of the summit will be given a unique opportunity not only to see what their next business move will be but also find ways to mitigate potential risks they may face when doing business in the region.
About Leaders in Hospitality CEE & CIS: Leaders in HospitalityCEE & CIS Summit is the only premier event for the industry that brings together leading hoteliers, key experts, real estate developers, investors, government officials and solution providers across the region. It provides invaluable opportunity to gain new market information, make new business contacts and network with the who's who of industry.
For more information or registration, please visit www.hotelcee.com
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