Archive for March 10th, 2012

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English FA moaning about hotel prices for fans in Ukraine

March 10, 2012

Well here is an interesting dilemma.  The English FA and UEFA are moaning about hotel prices for English football fans in Kyiv and Donetsk and asking the Government of Ukraine to do something about it.

What does it have to do with the Government of Ukraine?  Does it have the ability to tell an international hotel chain like Ibis what it can and cannot charge, unless we are advocating it overtly and directly interfere with an international investor and that FDI in Ukraine.

Is it not the argument that FDI is scared away from Ukraine by governmental interference?

The same can be said for the private entrepreneurs being interfered with, whether it is their spare rooms, privately owned hotels or hostels.

Should the Ukrainian government interfere in the free market very publicly for an international tournament or shouldn’t it?

When prices rocket in London for the Olympics, will the UK Government step in regarding private businesses?  Definitely not.

If the Ukrainian government does step in, all those who say FDI is a bad idea in Ukraine because the government interferes will be wandering around saying “told you so” as will all those who claims it stifles free market economy.

What power does the Government of Ukraine have to tell Ibis or any other hotel, B&B, hostel etc (that it doesn’t own) what to charge without making a very public faux pas via interference in the free market when the free market is once again going to have its attention briefly focused on Ukraine?

The tournament is still 3 months away. Prices may come down or demand may yet go up, or both, simply through the natural forces of the market.

If the English FA wanted more English fans to come to Ukraine, maybe they should have based the English team in Ukraine rather than Poland?

Are the English FA not forgetting there is a major tournament being held in the UK at the same time and many England fans may well prefer to go to the Olympics rather than spend thousands watching England get dumped out of the tournament before even qualifying for the knockout stages?

Let the markets do what markets do and allow supply and demand to attempt to come to a balance – but do not ask the Government of Ukraine to interfere, for if they do, somewhere in the “Business Section” of the Telegraph, the Ukrainian government will be lambasted for doing exactly what the FA are asking for.

Leave it alone.  Not every issue in society requires a government to do something.  Governments already interfere in far too much because they feel they need to be seen to do something!

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