The Ministry of Economy estimated the growth of tourist flow in the first quarter of 2023 at 19%

According to the results of the first quarter of 2023, the tourist flow increased by 19% compared to the same period last year, Economic Development Minister Maxim Reshetnikov said at a meeting of government members with President Vladimir Putin. Business investment in the industry also increased — in 2022, entrepreneurs invested 14% more than a year earlier. The Ministry of Economy, together with airlines, monitors the demand for tickets in order to promptly adjust flight schedules, the minister added.

Despite the restrictions of airports in the southern regions of the country, the number of tourist trips increased by 4 million year-on-year, the minister said. In general, for the year, the Ministry of Economy expects an increase in the tourist flow by 5.5%, that is, by 7 million people more than last year.

In the first quarter of 2023, hotel accommodation increased by 20% compared to the same period in 2022. However, the booking period has decreased – now Russians plan their trips 2-3 weeks before departure, Reshetnikov noted. On average, the increase in the cost of living is from 7-15% per season, depending on the destinations and class of hotels, he added. The average cost of living in a three-star hotel in July will be 4,700 rubles, which is 8% more expensive than a year ago.

However, the dynamics of prices varies greatly by region, Reshetnikov stressed. In the 3-star segment, year-on-year growth in the Krasnodar Territory for the season was 19%, in Moscow – 17%, and a hotel in the Crimea, for example, can be booked 8% cheaper than last summer.

“Accommodation prices have been kept down by the decision to abolish VAT for hotels, taken last year. The next step should be exemption from value added tax for tour operators,” Reshetnikov said.

From July 1, 2022, a zero VAT rate applies to hotels and hotels. This year, it was also decided to reset the VAT for tour operators. Now the Ministry of Finance is preparing a corresponding bill.

In the total cost of the trip, up to 60% of the costs are for transport, Reshetnikov noted. In addition to interaction with air carriers, the Ministry of Economic Development, together with Russian Railways is considering the issue of arranging a checkpoint at the Imeretinsky Kurort railway station in order to reduce the congestion of the border crossing during the peak season, he added. This is due to the popularity of Abkhazia among Russian tourists.

Reshetnikov also said that within the framework of the national project “Tourism and Hospitality Industry”, the Ministry of Economic Development has allocated more than 13 billion rubles to 64 regions. for the arrangement of walking routes, the creation of modular hotels, the purchase of tourist equipment, and support for event events. The agency will also send 2.7 billion rubles. to support the Crimean tourism industry to compensate for the decline in tourist flow.

Short trips by car are becoming a trend among Russian travelers, the minister added. In this regard, the ministry intends to prepare proposals to support large children’s amusement parks and water parks within the transport accessibility of large cities.

The growth in demand for domestic tourism is due to several factors, explained Yury Barzykin, Vice President of the Russian Union of Tourism Industry (PCT). Firstly, holidays within the country are cheaper and do not involve paperwork with visas. Secondly, in connection with the sanctions, there are a number of restrictions on visiting abroad today. “According to our forecasts, this year domestic tourism will reach the pre-Covid level and amount to 65 million people,” Barzykin said.