Ukrainian to English translation

President of Ukraine
VF Yanukovich

Chairman of the Verkhovna Rada of Ukraine
MN Tomenko

Chairman of the Verkhovna Rada of Ukraine
of Family, Youth, Sports and Tourism
PI Kostenko


OPEN LETTER

Since early 2000 in Ukraine is developing a system of cheap
accommodation for young people - hostels, which are popular throughout the world. First
hostel was opened in 2003 in Uzhgorod, and today in Ukraine
There are about 80 hostels and similar accommodation.
Despite the economic crisis, the industry progresses, showing
annual growth of 25-30%. Availability of hostels in the country is one of
most important factors to facilitate the process of European integration and increase
international authority of Ukraine as a tourist state. Research
Our experts have proven that one job in a hostel or
it means the same location creates additional five working
for related industries.

We are very concerned about the situation after making the members
Parliament in first reading the draft Law of Ukraine No.7293 of
26/10/2010 amending the Law of Ukraine "On Tourism" on
mandatory establishment of tourist categories
infrastructure. The problem is that the hostels as a means
accommodation is not mentioned in any document existing
legislation of Ukraine. Introduction of mandatory installation categories
for accommodation facilities could adversely affect the development of youth
Tourism and the hostel movement in Ukraine, lead to abuse, facts
extortion, monopolizing the industry, other negative consequences.

Issues include hostels as accommodation facilities in the legislation
our state representatives have repeatedly discussed
Ukrainian Youth Tourist Association (UYTA) at all levels.
Today the question or cover the required installation
categories for this hostel accommodation facilities and similar facilities
position, what standards will be based in the category of
etc. International experience from EU countries shows that none of the existing
standards are not ideal, particularly Standard Association HOTREC, which
now actively lobbied in Ukraine, introduced only in seven countries
EU member states, and countries such as Britain, France, Spain, that
have a great experience and tradition in the organization of hotel business, not
members of the Association HOTREC.

Our experts believe that the Law of Ukraine No.7293 of
26/10/2010 he will have negative implications for the field of accommodation
economy class, namely:

* Increase the price of accommodation, which in turn lead to
reduce the number of tourists who stay in the mass accommodation
economy class. Also, price increases may contribute to an outflow of foreign
tourists from Ukraine;
* Reduce the number of hostels and similar accommodation,
lead to loss of citizens of Ukraine of their jobs, and -
to a reduction of revenue. In our assessment, may stop
its activities to 60% of economy class accommodation;
* The possibility of abuse, the availability of evidence of extortion and corruption
by government auditors.

The vast majority of owners of hostels and similar
position your business as a registered private entrepreneurs that
pay taxes under the simplified scheme. That is why their business,
accounting and reporting is fundamentally different from driving
business hotels. Moreover, our Association has developed their own
standards of hostels and similar accommodation which
the experiences of World Youth Hostels Federation (VHF) and adapted
to the current legislation of Ukraine (Annex No.1). According to the standard VHF,
Hostels have little or no division into categories, so our
view, it is inappropriate to enter certified hostels and similar
accommodation facilities in Ukraine.

So, based on the above, we consider it appropriate to ask you
contribute:

* Rejected adoption on second reading the Draft Law of Ukraine No.7293
of 10/26/2010 amending the Law of Ukraine "On Tourism"
mandatory installation of tourist categories
infrastructure as something that is impractical;
* Revision of the draft Law of Ukraine No.7293, including separation
accommodation facilities that operate under the simplified taxation system,
in a separate category from terminating them for mandatory
certification;
* Discuss issues of hostels and similar
place in Ukraine, to the consideration of the Project
Standards for the hostel and the introduction of appropriate standards
HOTREC Hotelstars Union Association in Ukraine.


Sincerely,

Alexander Faynin
President UYTA