Russian Tourism Down … Except for Space Flights

By Amanda Lahan, Account Manager, The PBN Company, Washington, DC

Russia’s tourist industry has enjoyed considerable success in recent years, shedding its image of Soviet-era hospitality and hotels infested with bugs both electronic and crawly. But after a decade in which more and more people visited Russia, the tourism industry has now been hit by the economic crisis.

For the first time since 1999, the number of foreign tourists visiting Moscow has dropped. According to the State Statistics Services, there are 19% fewer tourists in the city compared with this time last year.

St. Petersburg accounts for 80% of all of Russia’s inbound tourism and is expected to experience an even sharper downturn. 30% fewer people are set to visit during the city’s popular summer season. With approximately 18% of the city’s population employed in the industry, the number of tourists staying at home will have significant negative consequences for the city, and job cuts are likely.

In an attempt to aid St. Petersburg and six other port cities, including Sochi, Kaliningrad and Vladivostok, the government issued a decree allowing foreigners who enter Russia via ferry to stay visa-free for three days, an arrangement only currently available for foreigners who arrive by cruise ship.  The decree will come into force on May 20, just in time for the beginning of the summer tourism season.

While the tourist industry is set to experience a fall in revenues, Russia has vowed to continue offering a relatively new destination — space. This week the Russian Space Agency confirmed that it would continue its space tourism program. While the first space tourists paid $20 million, a ticket on a Soyuz launch vehicle will increase to $51 million from 2012 for NASA astronauts who will use the Soyuz craft while NASA’s own space shuttle is being replaced.

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