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.

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