In russia, the Tourist Season Has Effectively Ended Without Ever Really Beginning

The tourism market in the rf is plummeting. russians are cutting back more and more on vacations, entertainment, and even trips to visit relatives. Those who can still afford to travel are shortening the length of their vacations, opting for budget options, and foregoing the services of travel agencies. In the first half of this year, approximately 2,700 travel companies in russia ceased operations, which is by 52.3% more than during the same period last year.

At the same time, the tourism industry in the rf is suffering not only from a drop in demand. Internal problems are also putting significant pressure on tour operators: rising operating costs, difficulties with air travel, disruptions at airports, and the fuel crisis. According to booking services, demand for package tours in russia has fallen by 22–31% over the past year. Many companies could not withstand this decline and were forced to cease operations.

Domestic tourism could not offset the losses either. Hotel room sales within russia fell by 12–15% compared to last year. Expectations for a busy tourist season in the temporarily occupied territories of Ukraine in Crimea also failed to materialize. The kremlin has been forced to allocate 4.3 billion rubles in subsidies and compensation to employees of 4,600 enterprises on the Peninsula due to Ukraine’s “sanctions policy”. For most local vacation resorts, the tourist season has effectively ended before it even began.

In general, tourism and travel are not currently among russians’ top spending priorities. The average russian family spends nearly half of its household budget on food. Next on the list are medicines, clothing, utilities, and other essential needs.