LETTER TO THE EDITOR (02/12/06)

LETTER TO THE EDITOR

Reacting to reports about Soyuzivka

Dear Editor:

I read the reports submitted by several members of the UNA Executive Committee and, in a nutshell, the Ukrainian National Association's financials need serious shoring up. Some proposed solutions call for hiring more salespeople to sell more insurance policies and to spin off the deficit-ridden Soyuzivka into a non-profit cultural foundation.

As much as I would like both organizations to succeed and prosper, I'm not as optimistic as is Zenon B. Masnyj in his letter to the editor in the February 5 issue of The Ukrainian Weekly. Basically, he suggests that Ukrainians forego the $5,000 life policies with the $400 single premium, the UNA's "bread and butter" product, and "buy policies in real-world amounts," whatever that may be. He suggests that this increase in premiums will enable the UNA to pay a dividend and there will be a sufficient surplus to keep Soyuzivka afloat.

Even if this simplistic solution was valid, it assumes you can convince Ukrainians that the life policy is a better investment than the array of competing financial products being offered by their employers, banks and investment companies, and that the UNA will be around in 30 or 40 years to pay the policy beneficiary. That will be a hard sell.

With regard to Soyuzivka, Mr. Masnyj suggests that if Ukrainians spent a week vacationing at the resort rather than merely being day-trippers, Soyuzivka would turn a profit. Unfortunately, Mr. Masnyj fails to recognize the change in demographics. True, the newer generation of Ukrainians, and older ones as well, "with all their Ph.D's" can afford a week at Soyuzivka. In fact, they can afford better and that's the problem.

Ukrainians are no longer content spending days sitting at poolside discussing President Viktor Yushchenko's policies. Instead they're vacationing in Europe, skiing in Utah and wine-tasting in Napa Valley. In order to be a viable vacation destination, Soyuzivka needs a massive upgrade and I doubt if there are adequate funds to support such a renovation. A new TV in each room isn't going to cut it.

Realistically, day-trippers and weekenders are probably Soyuzivka's salvation. The younger generation of Ukrainians are there to socialize and party. They spend money on parking fees, beverages and food, which are good cash generators. Current management is to be commended for also promoting special events and weddings, and catering to local interests to hold their functions at the resort. Unfortunately, if Soyuzivka is to survive, it can't rely solely on Ukrainians for financial support.

Walter Pitio
Skillman, N.J.

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