Dual rate system is common in fSU and EE

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Posted by siania on August 16, 2002 at 12:43:31:

In Reply to: Price Discrimination Against Foreigners posted by David on August 13, 2002 at 23:15:44:


The Czech republic maintains a dual rate system also which can be interpreted as discrination against foreigners. Even books at a Prague museum are priced differently for citizens.

I experienced the same thing in central Asia. It may be more severe in Ukraine, but it is not uncommon in this part of the world.

The citizens of these countries pay a hefty tax because their economies are still in a socialist/communist mode. Despite the fact that the system works extremely inefficiently (and the taxes are largely wasted or stolen by bureaucrats), the general population is earning small wages relative to the West, and is in part compensated by having "discounted" rates for services, including tourist services.

Ukraine will have to resolve the corruption so that the tax system works more efficiently, and will eventually move to a truer market economy. Until that happens, I expect that tourists will be paying more simply because someone has to shell out some dough.


: My wife is Ukrainian and is currently in Ukraine. I am an American and was considering going to meet her and take a Dnipro cruise.

: Yesterday she priced a cruise on Chervona Ruta's Marshall Rybalko. The price for her is $370. Not bad. The price for me staying in the same cabin is $1178 -- more than three times as expensive! The sum of these two amounts is not in our budget. Moreover, even if it was close, I find this price discrimination policy so extreme (318%!) I would not be inclined to find a way to make it work.

: I would like to see tourism in Ukraine flourish. However, I think there is an attitude of "let's milk the foreigners." I fear that until this attitude is replaced by something closer to the "Golden Rule", tourism in Ukraine will remain moribund.




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