Doing tourism business in Russia

• •    Travel & Tourism investment spending – an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels;

• •    Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on behalf of the ‘community at large’ – e.g. tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc.;

• •    Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents.

(excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.

It is forecast to rise by 3.7% pa to RUB6,042.6bn by 2024 (6.4% of GDP).

Positive performance is a result of efforts put into improving the image of the country as a destination for traveling in the global arena as well as improvement in tourism infrastructure.

Russia has put a lot of effort into improving the image of the country as a destination for traveling in the global arena as well as to improve tourism infrastructure. Russia has held a number of global events such as the World University Games in Kazan during 2013 and the Winter Olympic Games in Sochi in 2014 and it should be continuing to do more of this in future.

At present, Russian authorities strongly motivate Russian regions toward attracting investors to the hotel industry. In Moscow, for example, it is planned to double the number of hotels by 2025. Special emphasis is being placed on the so-called tourist clusters. Specifically, Russia heavily focuses on the development of tourism in the North Caucasus, with its rich natural potential and a terrain suitable for the development of mountain skiing tourism. The Altai and Baikal areas are intensely promoting themselves as tourist regions. Very promising are the Golden Ring cities, because most foreign tourists who visit Moscow and Saint Petersburg continue their travels in Vladimir, Suzdal, Pskov, Nizhni Novgorod, and other cities located in the vicinity of the Russian capital. A bright future can be expected for the Russian Far East, where an APEC forum will be held*. According to Nadezhda Makatrova, Russian regions are gradually learning how to position themselves correctly in the tourist market, which contributes to the development of tourism. Russian authorities are sure that nearly all Russian regions can to some or other degree become tourist destinations.

Russian tourism business is a promising industry for potential investors. From year to year, the market is gradually approaching international standards. Its potential for development and growth is still very high.