Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Airline capacity and utilisation; Arrivals by country of origin; Arrivals by
mode of transport; Arrivals by purpose of visit; Car rental services by
sector; Demand factors; Departures by destination; Departures by mode of
transport; Departures by purpose of visit; Domestic tourism by destination;
Domestic tourism by mode of transport; Tourism receipts and expenditure;
Tourist attractions; Transportation; Travel accommodation; Travel retail
services
Executive summary
1. EXECUTIVE SUMMARY
Poor infrastructures hamper growth
The incoming tourist market in Russia was stagnant in 2005 mainly because of a
lack of a network of high-quality and middle-class hotels, as well as of other
key infrastructures, in the country.
First travel, then pay
Tour operators offered a new service in the country: trips on credit. Consumer
credit has fuelled tourism demand. Expansion of credit in the economy is also
encouraging the development of small travel and tourism companies.
More people prefer to stay at home
Domestic tourism has been developing rapidly. Although tourism represents a
small portion of the Russian economy as a whole, it became a strong generator
for growth for some regional economies.
Tourist companies need more capital
Many large tourist companies strive for increasing their capitalisation on
their own or with the help of foreign investors, which is considered necessary
in order to boost their business activities.
Russia is going to establish special tourist and recreation economic areas
It has been announced that tourist enterprises in some regions might be
exempted from some taxes. If this measure is adopted it will be an important
tool to stimulate tourism development in the country.
Some media state that Russia is a dangerous destination
Forbes included Russia in its 2006 list of countries where it is considered
dangerous to work and travel. Russia was not included in this list in 2005.
This type of statement by the media is to be considered one of the negative
factors which can affect tourism to Russia over the next years.
Tourism prospects are tremendous
However, Russia is considered able to generate substantial income from tourism
in the long term, provided that the problems concerning the lack of the
necessary infrastructures will be resolved. A catalyst is needed to encourage
the cooperation between the tourism industry players and the Russian
government in order to create the conditions necessary to realise the
industry's promise.
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