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Opportunities in Travel & Tourism : Russia
Opportunities in Travel & Tourism : Russia

Russia has experienced stable economic growth and financial prosperity for the last eight years under President Putin’s administration. Growth of the domestic market, along with increased export earnings from oil and gas has contributed to yearly improvements in the Russian economy. A major construction boom and continued growth in consumer spending is contributing to overall economic growth. This dramatic growth shows signs of spreading beyond Moscow and St. Petersburg into the vast “regional areas” of Russia – a total of 11 time zones.

According to the International Monetary Fund1, Russia’s GDP grew 7.4% in 2006, and 8.1% in 2007, reaching $1.29 trillion. Per capita GDP is estimated to have reached $9,075 in 2007, as compared to $4,039 in 2004. Real disposable incomes continue to outpace GDP growth. Eight years of economic and political stability, rising revenues from export trade, appreciation of the domestic currency and continuing growth of disposable income at the annual rate of over 10% has stimulated consumer spending.These economic factors are creating a strong market demand for travel – both tourist and business, both domestic and foreign.

The number of Russian tourists traveling abroad grew 22% from 7.75 million in 2006, to 9.37 million in 2007. The strong growth in travel abroad is based on a number of factors:
# Increased disposable income and consumer spending
#Increased prices for domestic travel destinations has dulled their cost advantage
# Increased business, educational and cultural exchanges
# Development of outbound travel services
# Appreciation of the ruble against the dollar

Statistics show that travel to CIS (Commonwealth of Independent States, or the former Soviet Union) countries constitutes 53% of the total travel in 2007. However, the overwhelming majority of Russian tourist travel was to non-CIS destinations. This is explained by the fact that many visits to the former Soviet republics were for reasons other than tourism, i.e. business, personal, emigration, services and military duty.

34.3 million Russians traveled abroad in 2007, 18% more than in 2006.
The growth rate for tourist travel is slightly higher at 21% (9.4 million travelers), while business travel decreased 8%. Turkey has held first place in the total number of Russian tourists for the past several years. Turkish travel operators market their destinations at all trade shows and maintain an overall aggressive marketing campaign in Russia. Because of proximity to Russia and the readily available goods that can be carried back to Russia, China holds second place, and Egypt is third.

The top three markets by growth rate are Thailand (60%), Austria (44%),
and Tunisia and Egypt (39%). These impressive growth rates illustrate a large and growing market for foreign destinations. Outbound traffic statistics indicate that in addition to traditional warm and seaside destinations more Russians choose countries where time on the beach may be supplemented by other activities such as cultural and sporting events, shopping and recreation.
- 12 May 2008, 10:36 pm
Billy Ivy wrote: > Opportunities in Travel & Tourism : Russia > > Russia has experienced stable economic growth and financial > prosperity for the last eight years under President Putin’s > administration. Growth of the domestic market, along with increased > export earnings from oil and gas has contributed to yearly > improvements in the Russian economy. A major construction boom and > continued growth in consumer spending is contributing to overall > economic growth. This dramatic growth shows signs of spreading beyond > Moscow and St. Petersburg into the vast “regional areas” of Russia – > a total of 11 time zones. > > According to the International Monetary Fund1, Russia’s GDP grew 7.4% > in 2006, and 8.1% in 2007, reaching $1.29 trillion. Per capita GDP is > estimated to have reached $9,075 in 2007, as compared to $4,039 in > 2004. Real disposable incomes continue to outpace GDP growth. Eight > years of economic and political stability, rising revenues from > export trade, appreciation of the domestic currency and continuing > growth of disposable income at the annual rate of over 10% has > stimulated consumer spending.These economic factors are creating a > strong market demand for travel – both tourist and business, both > domestic and foreign. > > The number of Russian tourists traveling abroad grew 22% from 7.75 > million in 2006, to 9.37 million in 2007. The strong growth in travel > abroad is based on a number of factors: > # Increased disposable income and consumer spending > #Increased prices for domestic travel destinations has dulled their > cost advantage > # Increased business, educational and cultural exchanges > # Development of outbound travel services > # Appreciation of the ruble against the dollar > > Statistics show that travel to CIS (Commonwealth of Independent > States, or the former Soviet Union) countries constitutes 53% of the > total travel in 2007. However, the overwhelming majority of Russian > tourist travel was to non-CIS destinations. This is explained by the > fact that many visits to the former Soviet republics were for reasons > other than tourism, i.e. business, personal, emigration, services and > military duty. > > 34.3 million Russians traveled abroad in 2007, 18% more than in 2006. > The growth rate for tourist travel is slightly higher at 21% (9.4 > million travelers), while business travel decreased 8%. Turkey has > held first place in the total number of Russian tourists for the past > several years. Turkish travel operators market their destinations at > all trade shows and maintain an overall aggressive marketing campaign > in Russia. Because of proximity to Russia and the readily available > goods that can be carried back to Russia, China holds second place, > and Egypt is third. > > The top three markets by growth rate are Thailand (60%), Austria > (44%), > and Tunisia and Egypt (39%). These impressive growth rates illustrate > a large and growing market for foreign destinations. Outbound traffic > statistics indicate that in addition to traditional warm and seaside > destinations more Russians choose countries where time on the beach > may be supplemented by other activities such as cultural and sporting > events, shopping and recreation.

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Opportunities in Travel & Tourism : Russia