Russia Tourism Struggles Between Mega Events and Political Crisis

2014-04-09
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  • Travel Industry Wire Market Research Company Euromonitor International revealed today the latest trends for the travel and tourism industry globally and in Russia at the WTM Vision Moscow conference.

    Market Research Company Euromonitor International revealed today the latest trends for the travel and tourism industry globally and in Russia at the WTM Vision Moscow conference.

    In his presentation, 'Consumer Trends and Forces Driving Change in the Travel Industry', Vitalij Vladykin, Senior Research Analyst at Euromonitor International, explained that arrivals grew again in 2013 at a rate of 4% globally, reaching record numbers of over one billion world-wide.

    Euromonitor International LogoRussia's arrivals grew above average at a rate of 13% in both 2012 and 2013. However, Russia's outbound tourism continues to show a stronger performance than inbound with the hope the Winter Olympics in Sochi and the FIFA World Cup in 2018 will raise the country's profile to boost visitor arrivals. The dominating source markets for inbound arrivals remain the country's neighbours and the CIS states, which have close historical ties.

    Ukraine represents the primary inbound market for Russia, with 6.6 thousand arrivals from Ukraine in 2013. However, the political situation in Ukraine has the potential to slow future tourism performance as tensions rise with arrivals expected to fall by over 15% over 2014.

    Russia's domestic tourism is growing and is expected to show strong compound annual growth rate of over 10% for many regions during 2013 to 2018. The Volgograd Region is one of the top destinations for expected growth due to rail connections from Moscow and St Petersburg, but this may change after two suicide bombings in December 2013. Terrorist attacks and the revolution in Ukraine have the potential to inhibit the positive growth experience by Russian domestic and international demand.

    Positive signs for the travel industry in Russia are coming from the accommodation sector with international luxury hotel chains investing in Moscow, St Petersburg, Kazan and Sochi. New outlets also have opened in second-tier Russian cities, aiming to entice growing numbers of business travellers. Online travel also represents a success story for Russian tourism, poised to expand significantly at a 13% CAGR rate over 2013 to 2018.


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