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Travel and tourism in Russia - statistics & facts

Covid-19 impact on russians' travel destinations, impact of the war in ukraine on tourism in russia, key insights.

Detailed statistics

Travel and tourism's total contribution to GDP in Russia 2019-2023

Travel and tourism's total contribution to employment in Russia 2019-2023

Tourism spending in Russia 2019-2022, by travel purpose

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Destinations

Leading outbound travel destinations in Russia 2021-2022

Number of outbound tourism trips from Russia 2014-2022

Leading source markets for travel to Russia 2020-2022, by arrivals

Related topics

Recommended.

• Inbound tourism in Europe
• Outbound tourism in European countries
• Travel and tourism in Europe
• Domestic tourism in European countries
• COVID-19: impact on the tourism industry worldwide

Recommended statistics

• Premium Statistic Countries with the highest outbound tourism expenditure worldwide 2019-2022
• Premium Statistic Travel industry revenue distribution in Russia 2021, by segment
• Premium Statistic Tourism spending in Russia 2019-2022, by travel purpose
• Basic Statistic Travel and tourism's total contribution to GDP in Russia 2019-2023
• Basic Statistic Travel and tourism's total contribution to employment in Russia 2019-2023

Countries with the highest outbound tourism expenditure worldwide 2019-2022

Countries with the highest outbound tourism expenditure worldwide from 2019 to 2022 (in billion U.S. dollars)

Travel industry revenue distribution in Russia 2021, by segment

Distribution of travel industry revenue in Russia in 2021, by segment

Travel and tourism spending in Russia from 2019 to 2022, by purpose (in billion U.S. dollars)

Travel and tourism's total contribution to GDP in Russia 2019-2023

Total contribution of travel and tourism to gross domestic product (GDP) in Russia from 2019 to 2023 (in billion Russian rubles)

Travel and tourism's total contribution to employment in Russia 2019-2023

Total contribution of travel and tourism to employment in Russia from 2019 to 2023 (in million jobs)

Outbound tourism

• Basic Statistic Outbound travel expenditure in Russia 2011-2022
• Premium Statistic Number of outbound tourism trips from Russia 2014-2022
• Premium Statistic Leading outbound travel destinations in Russia 2021-2022
• Premium Statistic Number of outbound tourists from Russia 2022, by territory
• Premium Statistic Outbound tourist flow growth in Russia 2022, by destination
• Premium Statistic European Union (EU) Schengen visas issued in Russia 2010-2021

Outbound travel expenditure in Russia 2011-2022

Outbound travel expenditure in Russia from 2011 to 2022 (in billion U.S. dollars)

Number of outbound tourism trips from Russia from 2014 to 2022 (in 1,000s)

Number of outbound travel visits from Russia from 2021 to 2022, by destination (in 1,000s)

Number of outbound tourists from Russia 2022, by territory

Number of Russians travelling abroad with tourism purposes in 2022, by territory (in 1,000s)

Outbound tourist flow growth in Russia 2022, by destination

Growth in outbound travelers with tourism purposes from Russia in 2022 compared to 2019, by selected destination

European Union (EU) Schengen visas issued in Russia 2010-2021

Number of Schengen Area visas issued from applications to consulates in Russia from 2010 to 2021*

Inbound and domestic tourism

• Basic Statistic International tourism spending in Russia 2011-2022
• Premium Statistic Leading source markets for travel to Russia 2020-2022, by arrivals
• Basic Statistic Domestic travel spending in Russia 2019-2022
• Basic Statistic Number of nature protected areas in Russia 2015-2022, by type
• Premium Statistic Estimated demand for inbound tourism in Russia Q1 2014-Q3 2023
• Premium Statistic Inbound tourist flow growth in Russia 2020-2023
• Premium Statistic Number of inbound tourist arrivals in Russia 2014-2022

International tourism spending in Russia 2011-2022

Spending of international tourists in Russia from 2011 to 2022 (in billion U.S. dollars)

Leading inbound tourism markets visiting Russia from 2020 to 2022, by number of trips (in 1,000s)

Domestic travel spending in Russia 2019-2022

Domestic tourism expenditure in Russia from 2019 to 2022 (in billion U.S. dollars)

Number of nature protected areas in Russia 2015-2022, by type

Number of nature conservation areas in Russia from 2015 to 2022, by type

Estimated demand for inbound tourism in Russia Q1 2014-Q3 2023

Estimated balance of demand for inbound tourism in Russia from 1st quarter 2014 to 3rd quarter 2023

Inbound tourist flow growth in Russia 2020-2023

Year-over-year growth in inbound tourism trips with tourism purposes in Russia from 2020 to 2023

Number of inbound tourist arrivals in Russia 2014-2022

Number of inbound tourism visits to Russia from 2014 to 2022 (in 1,000s)

Travel companies

• Premium Statistic Travel industry organizations distribution in Russia 2021, by segment
• Premium Statistic Number of tourism companies in Russia 2010-2022
• Premium Statistic Most popular travel websites in Russia 2023, by traffic

Travel industry organizations distribution in Russia 2021, by segment

Distribution of travel industry organizations in Russia in 2021, by segment

Number of tourism companies in Russia 2010-2022

Number of travel agencies and reservation service establishments in Russia from 2010 to 2022

Most popular travel websites in Russia 2023, by traffic

Leading travel and tourism websites in Russia in August 2023, by monthly visits (in millions)

Package tours

• Premium Statistic Number of package tours sold in Russia 2014-2021, by type
• Premium Statistic Value of package tours sold in Russia 2014-2021, by type
• Premium Statistic Package tour cost in Russia 2014-2021, by type
• Premium Statistic Most popular travel destinations on package tours in Russia 2022

Number of package tours sold in Russia 2014-2021, by type

Number of package tours sold in Russia from 2014 to 2021, by tourism type (in 1,000s)

Value of package tours sold in Russia 2014-2021, by type

Total value of package tours sold in Russia from 2014 to 2021, by tourism type (in billion Russian rubles)

Package tour cost in Russia 2014-2021, by type

Average cost of a package tour in Russia from 2014 to 2021, by tourism type (in 1,000 Russian rubles)

Most popular travel destinations on package tours in Russia 2022

Number of outbound tourists sent on tours by travel agencies in Russia in 2022, by destination (in 1,000s)

Transportation

• Premium Statistic Number of domestic airline passengers in Russia monthly 2020-2022
• Premium Statistic Passenger traffic growth of airlines in Russia 2021
• Premium Statistic Travel transportation consumer price in Russia 2021, by type

Number of domestic airline passengers in Russia monthly 2020-2022

Number of passengers boarded by domestic airlines in Russia from January 2020 to May 2022 (in millions)

Passenger traffic growth of airlines in Russia 2021

Year-over-year growth rate in air passengers in Russia in 2021, by carrier

Travel transportation consumer price in Russia 2021, by type

Average consumer price of travel transportation in Russia in 2021, by type (in Russian rubles)

Accommodation

• Basic Statistic Paid travel accommodation services value in Russia 2015-2022
• Premium Statistic Travel accommodation establishments in Russia 2022, by federal district
• Basic Statistic Total room area in travel accommodation in Russia 2013-2022
• Premium Statistic Number of visitors in hotels in Russia 2010-2022
• Basic Statistic Number of hotel visitors in Russia 2022, by travel purpose
• Premium Statistic Overnight accommodation cost in Moscow monthly 2020-2023
• Premium Statistic Hotel occupancy rate in Moscow 2023, by segment
• Premium Statistic Average daily hotel rate in Moscow 2023, by segment

Paid travel accommodation services value in Russia 2015-2022

Value of paid services provided by travel accommodation establishments in Russia from 2015 to 2022 (in billion Russian rubles)

Travel accommodation establishments in Russia 2022, by federal district

Number of collective accommodation establishments in Russia in 2022, by federal district

Total room area in travel accommodation in Russia 2013-2022

Total area of rooms in travel accommodation establishments in Russia from 2013 to 2022 (in 1,000 square meters)

Number of visitors in hotels in Russia 2010-2022

Number of visitors in hotels and similar accommodation establishments in Russia from 2010 to 2022 (in 1,000s)

Number of hotel visitors in Russia 2022, by travel purpose

Number of visitors in hotels and similar accommodation establishments in Russia in 2022, by purpose of travel (in 1,000s)

Overnight accommodation cost in Moscow monthly 2020-2023

Average cost of overnight accommodation in Moscow from May 2020 to September 2023 (in euros)

Hotel occupancy rate in Moscow 2023, by segment

Occupancy rate of quality hotels in Moscow from January to March 2023, by segment

Average daily hotel rate in Moscow 2023, by segment

Average daily rate (ADR) in hotels in Moscow from January to March 2023, by segment (in Russian rubles)

Travel behavior

• Premium Statistic Reasons to not travel long-haul in Russia 2022
• Premium Statistic Intention to travel to Europe in Russia 2019-2022
• Basic Statistic Summer vacation plans of Russians 2012-2023
• Premium Statistic Travel frequency for private purposes in Russia 2023
• Basic Statistic Average holiday spend per person in Russia 2011-2023
• Premium Statistic Attitudes towards traveling in Russia 2023
• Premium Statistic Travel product online bookings in Russia 2023

Reasons to not travel long-haul in Russia 2022

Main reasons for avoiding travel outside the Commonwealth of Independent States (CIS) in Russia from September to December 2022

Intention to travel to Europe in Russia 2019-2022

Index of intention to travel to Europe from Russia from January 2019 to December 2022 (in points)

Summer vacation plans of Russians 2012-2023

Where do you plan to spend your vacation this summer?

Travel frequency for private purposes in Russia 2023

Travel frequency for private purposes in Russia as of March 2023

Average holiday spend per person in Russia 2011-2023

How much money did you spend per person on holidays this summer? (in Russian rubles)

Attitudes towards traveling in Russia 2023

Attitudes towards traveling in Russia as of March 2023

Travel product online bookings in Russia 2023

Travel product online bookings in Russia as of March 2023

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Tourism in Russia 

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Tourism in Russia is big business, but why? Why is this industry so important and how should it best be managed? Read on to find out…

Tourism in Russia

Spanning two continents and enveloping a myriad of cultures, landscapes, and histories, Russia stands as a colossal testament to human civilisation’s diverse tapestry. From the historic domes of Moscow to the vast Siberian wilderness, the country beckons with tales as expansive as its geography . This article delves into the multifaceted allure of Russian tourism, offering a glimpse into a nation where age-old traditions intersect with contemporary vibrancy.

Geographical overview of Russia 

Russia is the world’s largest country in terms of land area, covering more than one-eighth of the Earth’s land surface. It is located in northern Eurasia and spans two continents – Europe and Asia. The geography of Russia is diverse and includes a wide range of landscapes, from arctic tundras and deserts to mountains and forests.

In the west, Russia borders Norway, Finland, Estonia, Latvia, Lithuania, Poland, Belarus, and Ukraine. In the south, it borders Georgia, Azerbaijan, Kazakhstan, China, North Korea, and Mongolia. The country has a coastline of more than 37,000 kilometres, which includes the Arctic Ocean, the Pacific Ocean, and the Baltic, Black, and Caspian Seas.

The landscape of Russia is characterised by several major physical features. The Ural Mountains, which run from north to south, separate Europe and Asia. The vast Siberian plains cover most of Russia’s territory east of the Ural Mountains, and they are some of the most extensive and least populated regions in the world. To the east of Siberia lies the mountainous region of the Russian Far East, which includes the Kamchatka Peninsula and the Sikhote-Alin Mountains.

Russia has several major rivers, including the Volga, the longest river in Europe, which flows into the Caspian Sea, and the Ob and Yenisei Rivers, which are among the longest rivers in Asia and flow into the Arctic Ocean.

In terms of climate, Russia experiences a wide range of conditions due to its vast size and diverse landscapes. The Arctic regions of Russia have an extreme polar climate, while the southern regions have a humid subtropical climate. The majority of Russia’s population lives in the western part of the country, where the climate is temperate continental.

Overall, the geography of Russia is vast and varied, with a range of landscapes, climates, and physical features that make it one of the most unique and fascinating countries in the world.

Tourism industry in Russia 

Russia is a country with a rich history, culture, and natural beauty, and its tourism industry is gradually growing in popularity. The country’s diverse geography and climate, along with its numerous historical and cultural attractions, make it an exciting destination for tourists from around the world.

Some of Russia’s most popular tourist destinations include Moscow, the capital city, and St. Petersburg, known for its impressive architecture and art collections. Other popular cities include Kazan, Sochi, and Yekaterinburg, each with its unique attractions and cultural offerings.

Russia is also known for its scenic natural beauty, with vast forests, lakes, and mountain ranges that offer opportunities for hiking, skiing, and other outdoor activities. Some of the country’s most popular natural attractions include Lake Baikal, the world’s largest freshwater lake, and the Kamchatka Peninsula, home to several active volcanoes and hot springs.

In addition to its cultural and natural attractions, Russia also offers a unique experience for tourists interested in history and politics. The country has a complex and fascinating history, with several historical sites and museums that offer insights into the country’s past, including the Kremlin in Moscow, the Hermitage Museum in St. Petersburg, and the WWII Museum in Moscow.

Overall, the tourism industry in Russia is still developing, but it has great potential due to the country’s numerous attractions and unique offerings. However, visitors should be aware that the country has its own unique customs and culture, and it is important to research and plan accordingly to ensure a safe and enjoyable trip.

Statistics about tourism in Russia 

Here are some of the most current statistics available and the time of publication about tourism in Russia:

• In 2019, Russia welcomed approximately 24 million international tourists, generating $11.4 billion in tourism revenue. (Source: World Tourism Organization)
• The top five source countries for international tourists to Russia in 2019 were China, Germany, South Korea, the United States, and Finland. (Source: Federal Agency for Tourism of the Russian Federation)
• Domestic tourism is also significant in Russia, with over 70 million trips taken by Russians within their own country in 2019. (Source: Federal Agency for Tourism of the Russian Federation)
• Moscow and St. Petersburg are the two most popular destinations for both international and domestic tourists in Russia. (Source: Federal Agency for Tourism of the Russian Federation)
• In 2019, tourism accounted for approximately 3.5% of Russia’s GDP. (Source: World Travel and Tourism Council)
• The tourism industry in Russia provides employment for approximately 4 million people. (Source: Federal Agency for Tourism of the Russian Federation)
• Russia has over 57,000 hotels and other accommodation options, with a total of over 1.6 million rooms. (Source: Federal Agency for Tourism of the Russian Federation)
• The majority of international tourists to Russia visit for leisure purposes, with business travel and visiting friends and relatives also common reasons for travel. (Source: Federal Agency for Tourism of the Russian Federation)
• The most popular time to visit Russia is during the summer months of June to August, although winter tourism is also growing in popularity due to the country’s winter sports offerings. (Source: Federal Agency for Tourism of the Russian Federation)

Most popular tourist attractions in Russia

Russia has many popular tourist attractions that offer visitors a glimpse into the country’s rich history, culture, and natural beauty. Here are some of the most popular tourist attractions in Russia:

Red Square and the Kremlin – Located in the heart of Moscow, Red Square and the Kremlin are two of Russia’s most iconic landmarks. The square is home to the colourful St. Basil’s Cathedral and the GUM department store, while the Kremlin is a fortified complex that includes several palaces, churches, and museums.

The Hermitage Museum – Situated in St. Petersburg, the Hermitage Museum is one of the world’s largest and most impressive art museums. It houses a vast collection of over three million artworks and artefacts, including works by Rembrandt, Da Vinci, and Michelangelo.

Lake Baikal – Known as the “Pearl of Siberia,” Lake Baikal is the world’s largest freshwater lake by volume and is home to a unique ecosystem of flora and fauna. Visitors can take a cruise on the lake or explore the surrounding wilderness on foot.

The Golden Ring – The Golden Ring is a collection of historic towns and cities northeast of Moscow that date back to the 12th century. It includes cities such as Vladimir, Suzdal, and Sergiev Posad, each with its unique architecture and cultural attractions.

Catherine Palace – Located just outside St. Petersburg, Catherine Palace is a stunning baroque palace that was once the summer residence of the Russian Tsars. Visitors can explore the palace’s opulent interiors and stroll through the expansive gardens.

Kazan – Located in the republic of Tatarstan, Kazan is a vibrant city that blends Russian and Tatar cultures. Visitors can explore the city’s UNESCO-listed Kremlin, visit the Kul-Sharif Mosque, or enjoy the vibrant nightlife.

Trans-Siberian Railway – The Trans-Siberian Railway is the world’s longest railway, spanning over 9,000 kilometres across Russia from Moscow to Vladivostok. The journey offers stunning views of the country’s diverse landscapes and is a unique way to experience the country.

Peterhof Palace – Also known as the “Russian Versailles,” Peterhof Palace is a grand palace complex located on the Gulf of Finland near St. Petersburg. Visitors can explore the palace’s opulent interiors and enjoy the beautiful gardens and fountains.

Sochi – Located on the Black Sea coast, Sochi is a popular resort town that hosted the 2014 Winter Olympics. Visitors can enjoy the city’s beaches, ski resorts, and subtropical climate.

Baikal-Amur Mainline – The Baikal-Amur Mainline is a railway that spans over 4,000 kilometres through some of Russia’s most remote and beautiful landscapes. The journey is a unique way to experience the country’s natural beauty and is a popular option for adventure travellers.

These are just a few of the many popular tourist attractions in Russia, and there are many more to discover in this fascinating and diverse country.

Most popular types of tourism in Russia 

Russia offers a wide variety of tourism experiences, from historic cities and cultural attractions to stunning natural landscapes and adventure sports. Here are some of the most popular types of tourism in Russia:

• Cultural tourism – Russia’s rich cultural heritage and fascinating history make it a popular destination for cultural tourism. Visitors can explore historic cities like Moscow and St. Petersburg, visit museums and art galleries, and attend cultural events such as ballets and operas.
• Heritage tourism – With its long and complex history, Russia is home to numerous UNESCO World Heritage sites, including the Kremlin and Red Square in Moscow, the historic city of St. Petersburg, and the Golden Ring of ancient towns.
• Adventure tourism – Russia’s vast and diverse landscape offers many opportunities for adventure tourism, including hiking, skiing, and mountain climbing. Popular destinations include the Altai Mountains, Lake Baikal, and the Caucasus Mountains.
• Ecotourism – Russia is home to some of the world’s most unique and unspoiled natural landscapes, making it an excellent destination for ecotourism. Visitors can explore national parks and nature reserves, observe wildlife, and engage in sustainable tourism practices.
• Cruise tourism – Russia’s major cities, including Moscow, St. Petersburg, and Volgograd, are all located on major rivers or coastal waterways, making it a popular destination for river and ocean cruises. Visitors can enjoy scenic views of the countryside while stopping at historic ports and cultural attractions along the way.
• Medical tourism – Russia has a reputation for its world-class medical facilities and expertise in specialised medical treatments. Visitors can take advantage of medical tourism to access high-quality healthcare and wellness services.
• Sports tourism – Russia has hosted many international sporting events, including the 2018 FIFA World Cup and the 2014 Winter Olympics. Visitors can participate in sports activities or attend sporting events, such as soccer matches, ice hockey games, and skiing competitions.

These are just a few of the many types of tourism available in Russia, and the country’s diverse attractions and activities make it an ideal destination for all types of travellers.

Economic Impacts of tourism in Russia

Tourism has become an increasingly important contributor to Russia’s economy, generating significant economic impacts at both national and regional levels. Here are some of the key economic impacts of tourism in Russia:

• Job creation – Tourism is a major employer in Russia, with the industry providing direct and indirect employment opportunities for millions of people. This includes jobs in hotels, restaurants, transportation, retail, and other tourism-related sectors.
• Economic growth – Tourism generates significant economic growth in Russia, contributing to the country’s GDP and generating tax revenues for the government. In 2019, tourism contributed 3.7% to Russia’s GDP and supported 5.5 million jobs.
• Foreign exchange earnings – Tourism is an important source of foreign exchange earnings for Russia, as international visitors spend money on accommodation, food, transportation, and other tourism-related activities. In 2019, tourism generated over $11 billion in foreign exchange earnings for Russia.
• Regional development – Tourism can have a significant impact on regional development, particularly in less developed areas of the country. By attracting tourists to these areas, tourism can stimulate investment in infrastructure and support local businesses, creating new opportunities for economic growth and job creation.
• Stimulating other sectors – The tourism industry also stimulates other sectors of the economy, such as agriculture, handicrafts, and cultural industries. This can help to diversify the economy and create new opportunities for local communities.
• Improved quality of life – Tourism in Russia can also improve the quality of life for local residents by creating new job opportunities, generating tax revenues for public services, and supporting the development of new infrastructure and facilities.

Overall, tourism plays an important role in Russia’s economy, generating significant economic impacts at both national and regional levels. As the tourism industry continues to grow, it is expected to become an even more important contributor to Russia’s economic development.

Social impacts of tourism in Russia

Tourism can have both positive and negative social impacts on a destination, including impacts on local communities, cultural heritage, and social structures. Here are some of the key social impacts of tourism in Russia:

• Cultural exchange – Tourism can promote cultural exchange and understanding between visitors and local communities, helping to preserve and promote cultural heritage. This can include cultural events, traditional music, dance, and crafts.
• Employment opportunities – Tourism in Russia can create new job opportunities for local residents, particularly in rural areas where other employment opportunities may be limited. This can help to improve the standard of living and reduce poverty.
• Community development – Tourism can contribute to community development by supporting the development of local infrastructure and services, such as roads, healthcare facilities, and schools. This can improve the quality of life for local residents.
• Preservation of cultural heritage – Tourism can support the preservation of cultural heritage sites, traditions, and customs. This can include the restoration of historic buildings, preservation of traditional crafts, and promotion of local cultural events.
• Environmental impact – Tourism can have negative environmental impacts, including pollution and degradation of natural habitats. This can harm local communities and wildlife.
• Social disruption – Tourism can also cause social disruption in local communities, particularly in areas with high levels of tourism activity. This can include overcrowding, noise pollution, and loss of privacy.
• Pressure on resources – Tourism in Russia can place pressure on local resources, such as water and energy, which can create conflict with local residents and affect the sustainability of the destination.

Overall, tourism can have both positive and negative social impacts on a destination. To maximise the positive impacts and minimise the negative impacts, it is important to develop sustainable tourism practices that prioritise the well-being of local communities and the preservation of cultural and natural heritage.

Environmental impacts of tourism in Russia

Tourism can have significant environmental impacts on a destination, both positive and negative. Here are some of the key environmental impacts of tourism in Russia:

• Carbon emissions – Tourism in Russia can contribute to greenhouse gas emissions, particularly through air travel and transportation. This can contribute to climate change and impact local ecosystems.
• Water usage – Tourism can increase demand for water, particularly in areas where water resources are already limited. This can lead to water scarcity and impact local ecosystems.
• Waste generation – Tourism can generate significant amounts of waste, particularly in areas with high levels of tourism activity. This can lead to pollution of local waterways and harm local wildlife.
• Land use – Tourism in Russia can lead to increased development and land use, particularly in areas with high levels of tourism activity. This can lead to habitat destruction and loss of biodiversity.
• Natural resource depletion – Tourism can increase demand for natural resources, such as timber, food, and water. This can lead to depletion of these resources and harm local ecosystems.
• Wildlife disturbance – Tourism in Russia can cause disturbance to local wildlife, particularly in areas where wildlife is a key attraction for tourists. This can lead to habitat destruction and impact the ecological balance of the area.

Overall, tourism in Russia can have significant environmental impacts on a destination, particularly in areas with high levels of tourism activity. To minimise the negative impacts and promote sustainable tourism practices, it is important to prioritise environmental protection and conservation in tourism planning and management. This can include promoting eco-friendly accommodation, encouraging responsible behaviour among tourists, and implementing policies to reduce carbon emissions and waste generation.

FAQ’s about tourism in Russia 

Now that we know a bit more about tourism in Russia, lets answer some of the most frequently asked questions on this topic:

Do I need a visa to visit Russia?

Most foreign visitors to Russia require a visa. However, some countries have visa-free agreements with Russia, and citizens of those countries can visit without a visa for a limited period.

What is the best time of year to visit Russia?

The best time to visit Russia depends on your preferences and the activities you plan to do. The summer months of June to August are the most popular for tourism, but the winter months can also be a magical time to visit.

What is the currency used in Russia?

The official currency of Russia is the Russian ruble (RUB).

Is it safe to travel to Russia?

Overall, Russia is a safe country for tourists, but like any other country, it is not completely immune to crime. Tourists should take common-sense precautions and stay aware of their surroundings.

What language do people speak in Russia?

The official language of Russia is Russian. English is also widely spoken in major tourist destinations, but it is still a good idea to learn some basic Russian phrases before visiting.

What are the most popular tourist destinations in Russia?

Some of the most popular tourist destinations in Russia include Moscow, St. Petersburg, the Golden Ring, Lake Baikal, the Trans-Siberian Railway, and the Caucasus Mountains.

What is the cost of living in Russia?

The cost of living in Russia can vary depending on the city and the type of lifestyle you lead. In general, major cities like Moscow and St. Petersburg can be quite expensive, while smaller cities and rural areas are more affordable.

Can I use my credit card in Russia?

Credit cards are widely accepted in major tourist destinations in Russia, but it is still a good idea to carry cash as a backup.

What is the public transportation system like in Russia?

Russia has an extensive public transportation system, including metros, buses, trams, and trains. The metro systems in Moscow and St. Petersburg are particularly efficient and affordable.

What are some unique cultural experiences to have in Russia?

Some unique cultural experiences to have in Russia include attending a ballet or opera performance, visiting a traditional Russian bathhouse (banya), sampling local cuisine, and learning about Russian art and history at museums and galleries.

To conclude- Tourism in Russia

So, that sums up this article about tourism in Russia. In the vast expanse of Russia, every corner narrates tales of history, culture, and natural splendour. From imperial cities to sprawling tundras, the country’s diverse tapestry invites travellers to explore and rediscover. As the curtain falls on our exploration of Russian tourism, one truth remains evident: Russia’s allure, both timeless and ever-evolving, ensures it remains an unforgettable destination on the world’s travel map.

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Russia Tourism Revenue Growth

• Russia Tourism Revenue dropped 71.2 % YoY in Dec 2020, compared with a decrease of -8.0 % YoY in the previous year
• Russia Tourism Revenue Growth rate data is updated yearly, available from Dec 2002 to Dec 2020
• The data reached an all-time high of 28.1 % in Dec 2011 and a record low of -71.2 % in Dec 2020

View Russia's Tourism Revenue Growth from 2002 to 2020 in the chart:

What was Russia's Tourism Revenue Growth in 2020?

Russia Tourism Revenue dropped 71.2 % YoY in Dec 2020, compared with a decrease of -8.0 % YoY in the previous year See the table below for more data.

Tourism Revenue Growth by Country Comparison

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Russia Travel and Tourism Market Summary, Competitive Analysis and Forecast to 2027

• Region: Russia
• ID: 5781892
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Key Highlights

• The travel and tourism industry consists of revenues generated by passenger airlines, passenger rail, foodservice, hotels and motels, travel intermediaries and casinos and gaming market.
• The Russian travel and tourism industry had total revenues of $42.1 billion in 2022, representing a negative compound annual rate of change (CARC) of 9.5% between 2017 and 2022.
• Hotels and motels was the industry's largest segment in 2022, with total revenues of $17.8 billion, equivalent to 42.2% of the industry's overall value.
• Russia has become one of the fastest-growing MICE (meetings, incentives, conferences, and exhibitions) markets. These tourists are an important source of revenue and have driven growth in the business segment.
• Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the travel & tourism market in Russia
• Use the Five Forces analysis to determine the competitive intensity and therefore attractiveness of the travel & tourism market in Russia
• Leading company profiles reveal details of key travel & tourism market players’ global operations and financial performance
• Add weight to presentations and pitches by understanding the future growth prospects of the Russia travel & tourism market with five year forecasts

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• What are the main segments that make up Russia's travel & tourism market?

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

• Rosinter Restaurants Holding OJSC
• Dodo Franchising LLC
• AZIMUT Hotels Company, LLC
• AMAKS Hotels & Resorts
• Radisson Hotel Group
• Aeroflot OAO
• Siberia Airlines
• International Consolidated Airlines Group SA
• UTair Aviation

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Tourism in Russia

Development of the tourism sector in russia from 1995 to 2020.

Revenues from tourism

Russia: International tourism revenue

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Some 8.5 mln foreign tourists visit Russia in 2023 - Economic Development Ministry

MOSCOW. Feb 2 (Interfax) - Around 8.5 million foreign tourists visited Russia in 2023, which is 3.5% more than in 2022, director of the Russian Economic Development Ministry's multilateral economic cooperation and special projects department Nikita Kondratyev said.

"The first statistics for inbound tourism came out yesterday. We had 8.5 million foreign tourists. Compared to 2022, the growth is insignificant, 3.5%, but it is growth nonetheless," Kondratyev said at a strategic session of the Russian Union of Travel Industry.

"Our target was to secure a 1.5-fold rise in inbound tourism, up to 16 million tourists [annually], by 2030. And we see that thanks to a number of measures, foreign tourists' interest in trips to Russia is returning. It is also confirmed by information that the number of bookings at Russian hotels doubled," he said.

Seventeen countries, mainly countries of the Middle East and Asia, have been chosen as priority destinations for outbound tourism, he said.

"This year, we plan to resolve a number of systemic tasks, which include improving conditions for entry to Russia by simplifying the visa rules for countries of the Middle East and Asia, expanding the list of countries enjoying full visa-free entry, and updating the mechanism for electronic visas and visa-free group travel," Kondratyev said.

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Countries brace for hit to tourism from Russia-Ukraine war

A clothes shop keeper waits for clients in a deserted tourist shopping area in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

A shop clerk carries mannequins at a soccer jerseys stand at a tourist shopping area, in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

Maya Ozen works in her cafeteria in a tourist shopping area, in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

Textile store clerk Devrim Akcay pushes a clothes rack as he waits for clients, in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

Spices are displayed with boards in English and Russian at a street market in a tourist shopping area, in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

Spice shop owner, Nurullah Ekinciler, works in his shop, in a tourist shopping area in Belek, Antalya, Turkey, Saturday, March 12, 2022. After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat. But Russia’s war in Ukraine is fast dampening their spirits. (AP Photo/Riza Ozel)

Agricultural farm workers collect red bell peppers in a greenhouse in Aksu, Antalya, Turkey, Sunday, March 13, 2022. The Antalya region is haunted by the memory of 2016, when Russia inflicted a serious blow to Turkey’s economy by barring the import of some agricultural produce and stopping charter flights there after the Turkish military shot down a Russian fighter plane in 2015. (AP Photo/Riza Ozel)

Agricultural farm worker Mahmut Gezgin pushes a cart with red bell peppers in a greenhouse in Aksu, Antalya, Turkey, Sunday, March 13, 2022. The Antalya region is haunted by the memory of 2016, when Russia inflicted a serious blow to Turkey’s economy by barring the import of some agricultural produce and stopping charter flights there after the Turkish military shot down a Russian fighter plane in 2015. (AP Photo/Riza Ozel)

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BELEK, Turkey (AP) — After losing two years to the COVID-19 pandemic, shopkeepers in the heart of the Turkish Riviera had hoped for a strong tourism season this year to help keep their businesses afloat . But Russia’s war in Ukraine is fast dampening their spirits.

“We’re trying to earn our bread through tourism, but it looks like the war has finished off this (tourism) season, too,” Devrim Akcay said outside his clothing shop in the resort town of Belek, along the Mediterranean coast’s Antalya province.

Nowhere is the threat of just one ripple effect of the war — lost tourism — felt more strongly than in Antalya, a region dotted with shimmering beaches and archeological sites where visitors from Russia and Ukraine, along with Germany, make up the top contributors to tourism revenue.

Countries from Turkey to Thailand, Egypt and Cuba are bracing for the loss of Russian and Ukrainian visitors just as their travel sectors were looking to rebound from the pandemic. With many tourist-dependent economies also struggling with surging inflation and other woes , hotel workers, guides and others who serve visitors from the two warring nations expect more pain.

The turquoise waters and white sand beaches of the Cuban resort of Varadero, which until recently received a significant number of tourists — mainly Russians — are now almost empty.

Russians accounted for almost a third of Cuba’s visitors last year — more than 146,000 — and some saw them as the way to get some oxygen to an industry ailing from the pandemic and tighter sanctions imposed by former U.S. President Donald Trump.

“Now, we also have to get by without the Russian tourism,” said José Luis Perelló Cabrera, a Cuban economist and tourism expert.

The Association of Tour Operators of Russia estimated that between 6,000 and 8,000 Russian tourists were on the island when the war in Ukraine broke out. Several flights left from Varadero in early March to bring them home.

“Losing that market is a strong blow to Cuba,” said Natasha Strelkova, Russian-Cuban tour operator and guide on the island.

Across the Atlantic, Russians and Ukrainians can represent up to 35% of Egypt’s tourists annually, said Hisham el-Demiry, former head of the government-run Tourism Development Authority.

He worries the economic crisis brought on by the war could mean fewer guests overall.

“It’s a huge impact, a domino effect. ... The war has changed people’s priorities, and tourism, which is a very sensitive industry, will be the first victim,” he said.

Rania Ali, a reception manager at a four-star hotel in Hurghada, said they “were over 75% occupied early before the war, now we are just 35%.”

Russians were just among the top 10 groups of visitors to Thailand until late last year, when the country began to reopen to international tourists. Russia restarted charter flights relatively early and in winter, when Thailand’s balmy temperatures make it a highly desirable destination, helping its people become the top visitors among the modest numbers that Thailand started welcoming back.

The November-to-March season when Russians usually visit is drawing to an end, and the plunge in the ruble’s value makes travel to Thailand and anywhere else far more costly now, said Chattan Kunjira Na Ayudhya, deputy governor for International Marketing for the Tourism Authority of Thailand.

“This probably will lead Russian tourists to shift to destinations that offer them all-inclusive packages with better prices,” he said.

In Turkey, officials had hoped that with pandemic restrictions easing, tourism could replicate or exceed the numbers from 2019, when some 52 million visitors — including about 7 million Russians and 1.6 million Ukrainians — brought $34 billion in revenue. The overall number of visitors dropped to 15 million in 2020 but recovered to around 29 million last year.

President Recep Tayyip Erdogan had strategized that opening up the economy and delivering big growth this year could help him get reelected next year, experts say. It’s a tall order for a country with a currency crisis and inflation exceeding 54%, making it difficult for consumers to purchase even basic goods.

“For that to happen, Turkey needs to have its robust tourism and trade ties with Russia unhindered,” said Soner Cagaptay, a Turkey analyst at the Washington Institute for Near East Policy.

The expectation before the war was “maybe 10, 15 million Russians would be visiting Turkey this summer that will be spending 10 billion dollars, a shot in the arm for Turkey’s ailing economy,” Cagaptay said.

Now, business groups say they’re seeing erosion in trade both ways, including a fall in demand for Turkish produce because Russian buyers are struggling to make payments. That’s despite Turkey not joining in sanctions against Moscow.

Agricultural grower and exporter Nevzat Akcan worries he may not be able to ship the red bell peppers he grows in greenhouses in the district of Aksu solely for Russian and Ukrainian markets.

“May God protect us if we join the sanctions against Russia. This would be a disaster for Turkish agriculture. We would be ruined and finished,” Akcan said. “I don’t even want to think about it.”

NATO-member Turkey, which has cultivated close ties with both Russia and Ukraine, is trying to balance those relations and has positioned itself as a neutral party trying to mediate. Turkey has criticized Russia’s military actions in Ukraine as “unacceptable” but also said it would not give up on either side.

The Antalya region is haunted by the memory of 2016, when Russia inflicted a serious blow to Turkey’s economy by barring the import of some agricultural produce and stopping charter flights there after the Turkish military shot down a Russian fighter plane in 2015.

Agriculture has already started to suffer from the effects of the war, said Davut Cetin, head of the Antalya Chamber of Commerce and Industry.

“The Ukrainian market has been shut down. No fresh fruit or vegetable is leaving for Ukraine now,” Cetin said.

Associated Press journalists Mehmet Guzel in Belek, Turkey; Samy Magdy in Cairo; Juan Zamorano in Havana and Chalida Ekvitthayavechnukul in Bangkok contributed.

The war and tourism: security issues and business opportunities in shadow of Russian war against Ukraine

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• Published: 13 October 2023

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• Artur Roland Kozlowski   ORCID: orcid.org/0000-0002-5359-192X 1 , 2  

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The effects of war have far-reaching consequences. They bring numerous victims—also civilians, destruction of infrastructure, enterprises, and citizens’ property. They cause political instability and lead to great security concerns, especially in tourist destinations. Experience with various wars indicates a minimum three-year negative effect of warfare on the tourism industry. The terrorist industry is also negatively affected by terrorism, which can occur regardless of the duration of the war itself. Terrorist attacks are deliberately organized in such a way as to evoke images of human victims, which affects the fear of tourist arrivals to such heavily burdened places. The paper discusses potential scenarios for the continuation of the war and its impact on the operational activity of international business with Russia. Russia’s unprovoked war against Ukraine brings closer the threat of war itself and shock to various industries, including the tourism industry. The paper presents the effects of the war on tourist trips from Russia but also Ukraine and its effects on traditional touristic destinations. Issues of threats to business are raised but also opportunities appearing on the horizon. The visa ban for Russians introduced by the EU with the simultaneous escalating and ruthless Russian attacks on Ukrainian civilians does not inspire optimism. It should be expected that the 2023 tourist season will remain burdened with the stigma of war and the limited movement of Russians around Europe.

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1 Introduction

The effects of war have far-reaching consequences. They bring with them numerous casualties—including civilian casualties, destruction of infrastructure, businesses, property of citizens. Cause political instability, lead to high security concerns, especially in tourist destinations. Omer and Yeşiltaş study for Iraqi Kurdistan Region for the period January 2003 to September 2018 indicate a minimum of three years of negative effects of hostilities on the tourism industry (Omer and Yeşiltaş 2020 ).

The tourism industry is also negatively affected by terrorism, which can occur regardless of the duration of the war itself. Terrorist attacks are deliberately orchestrated in such a way as to echo images of human casualties, influencing fears of tourist arrivals towards such high-pressure locations. The negative impact of terrorism on tourism itself has been written about by many (Fleischer and Buccola 2002 ; Buigut et al. 2017 ; Poprawe 2015 ), although it is worth to stress it has not always a long-term negative impact (Rittichainuwat and Chakraborty 2009 ; Yaya 2009 ).

Diana Ojeda points the way for Columbia to restore its territory to tourism. She draws attention to the role of imaginative geographies and the need to outline, secure and promote “imaginative counter-geographies”. In the conclusion to her study, she raises the role of feminist geopolitics as the need to create alternatives to the hegemonic order, which enables the creation of new geographies of imagination that deal with the production of everyday experiences of security across physical and symbolic boundaries. On a practical level, the Colombian government undertook a series of measures oriented towards securitisation process and touristification, which resulted in a new cartography: an archipelago of tourist trenches linked by militarised routes. From the perspective of both public finances and the labour market it was the reactivation of tourism that provided a constructive impetus for the country’s internal safety (Ojeda 2013 ).

To a lesser extent than Columbia two decades ago, terrorism has posed a challenge to the tourism industry in Turkey. Not only the Kurdistan Workers’ Party (PKK) but also other organisations carried out armed actions inside Turkey bringing threat to tourists. Although terrorism may be a major bane for Turkey’s tourism industry, as the results of research conducted in the pre-covid period from January 2012 to December 2018 indicate, it did not, from a short-term perspective, have a determinant effect on the volume of tourism to the country. However, when the longevity of the challenge in question is summed up, there is already a noticeable impact on the industry’s revenue and so it is estimated that 1% increase in terrorist attacks resulted in a serious number of casualties (injuries) and led to a decrease of approximately 0.1% in long-term tourism revenues (Kaya et al. 2022 ). The findings confirm the need for continued support to guarantee the safety of this country thereby increasing foreign tourists’ sense of confidence in future holiday arrivals. This also ties in with the edu-tourism sector, which, even more than traditional tourism, requires a safe environment for sustainable development (Hong et al. 2023 ).

As Russia’s war against Ukraine continues, in order to draw conclusions on its consequences in terms of security and international business, it is important to approximate possible scenarios for its end.

Russia began military action against Ukraine in 2014, annexing Crimea and occupying part of eastern Ukraine—the Donbass region, creating the so-called Lugansk and Donetsk republics there. Since then, unoccupied Ukrainian territory free of Russian troops has been continuously shelled from alleged separatists in eastern Ukraine, resulting in some 15,000 human casualties by the end of 2021.

Following President Joe Biden’s rise to power in the United States, Moscow-Washington talks have intensified. It can be assumed that the talks were linked to an influx of information about Russia’s intensifying preparations for further interference in Ukrainian affairs. For the Kremlin, the annexation of Crimea and parts of the Donbass, in the absence of formal acceptance of these acts by the international community, was a motivating factor to take more radical action, with the aim of exerting pressure on Ukraine itself and, incidentally, on the wider West.

President Putin explained his current (24. 02. 2022) attack on Ukraine by saying “the denazification of Ukraine, the liberation from the undemocratic Zelenskii government and the need to demilitarise this state, which threatens Russia’s security”. In doing so, he added the need to block the country’s aspirations to join NATO and the EU. While the first two arguments are an example of defamatory accusations without substance, but intended to carry an emotionally negative message to the Russian and Russian-speaking public, the arguments about aspirations to join NATO and the EU are as true as possible and reflect the efforts of the Ukrainian authorities and the majority public support to integrate with Western organisations, trusting that this is the only way to ensure the economic and state security of Ukraine in general vis-à-vis its aggressive eastern neighbour.

In 2007, Putin announced at the Munich conference that the greatest tragedy of contemporary Russia was the collapse of the USSR and that he sees it as his mission to restore the ruled state’s due standing and respect on the international stage (Speech and Q&A February 10, 2007 ). It treats its mission as a historical obligation, in keeping, moreover, with the imperial continuity of the Russian state, and the structures of the state in all areas of its activity were to be subordinated to the chief aim of restoring Russia’s power. Thus, it can be assumed that aggression against Ukraine does not exhaust the aspirations of Putin’s power camp and that even the complete occupation of Ukraine would not determine the final delimitation of the Russian space of territorial aspirations which can be describe (Johnson 2022 ; Kozłowski 2016 ; Nygren 2008 ) as following:

geographical dimension —to establish direct Kremlin control over neighbouring states, particularly the so-called ‘near abroad' states’:

Belarus—already subordinated,

Ukraine—in process with Putin's hopes of imminent subjugation,

Moldova—here the Russians have occupied part of the territory since Soviet times—Transnistria,

Georgia—the 2008 war was aborted and the successful attempt to install a pro-Russian president did not produce the desired reorientation of the state anyway, so it can be expected that Moldova or Georgia will be Putin's next targets, provided he manages to conquer Ukraine fairly quickly,

Central Asian states, particularly Kazakhstan.

influencing, albeit temporarily or by sector, the control of other countries in order to consolidate their presence there and influence the decisions of governments, companies, etc.

This group of countries may include governments generally sympathetic to pre-war Russia: Austria, Germany, Hungary, Italy,

Poland and the Baltic states are considered Russophobic, but this does not prevent the Kremlin from supporting anti-system parties;

political dimension

destabilisation of liberal democracies

by supporting parties and their leaders who represent a high potential for anti-system action,

the disintegration of western structures, especially the EU

support for social polarisation and direct (financial) support for separatist organisations and those critical towards the EU,

supporting pro-Russian politicians on their way to take over and exercise power in their countries: Trump, Salvini, Le Pen, Farage et al.

corruption of western politicians—by embedding them in the management or supervisory boards of Russian state-owned enterprises,

through direct funding of their political activities,

by engaging in the election campaigns of “their” pro-Russian candidates and supporting them with activities such as disinformation and manipulation in all types of media in favour of their own candidates;

economic dimension —the dependence of key Western countries on natural resources from Russian territory, especially energy resources

eg. Nord Stream, gas critical infrastructure (storage facilities), refineries (in a sense also located in Poland the Gdansk Refinery),

in subservient states, taking over key sectors of the economy (Armenia, Belarus).

In the face of Russia’s incomplete realisation of the dimension of its political goals of destabilising the West, with the progressive cultural westernization of Ukraine in terms of aspirations and optics, and, strange though it may seem, Putin’s age influencing his impatience with the lack of progress in subjugating Ukraine, he made a personal decision to initiate military action against the neighbouring state. The military action was initiated by Russia communicating to its own population that it was solely a ‘special operation’ aimed at the alleged liberation of Ukraine. Assumed to be a quick military attack, a so-called blitzkrieg, the aggression of Russian troops from the territories of not only Russia and annexed Crimea, but also Belarus, in the face of unexpected armed resistance from the Ukrainians by Russian intelligence, turned into a full-scale war with all the consequences for the attacked state: destruction of infrastructure, economy, loss of life, wave of refugees.

2 What are the effects of Russia’s war against Ukraine so far from a general and tourism business perspective?

Russia’s violation of Ukraine’s state integrity has been met with unequivocal condemnation from the West and progressively more sanctions introduced. Their arsenal and scope covered wide areas of activity of the Russian state and its elected representatives—especially representatives of the Russian government and those representatives of the administrative authorities, the media and the oligarchs who openly support the armed attack against the Ukrainian state.

From a strategic perspective, the most significant sanctions are those of the financial, energy, consumer or high-tech sectors. The freezing of $630bn of Russian financial reserves in foreign currencies contributed to Russia’s first inability since 1998 to meet financial obligations for its $100 m of bonds. What undermines Russia’s credibility as a debtor for future bonds. Financial transactions severely restricted after Russian banks were excluded from Western interbank systems.

The sanctions imposed on the energy sector are taking on an ever-increasing dimension with the effect of raising the prices of these raw materials and energy in general and thus increasing the inflation felt in many countries, including the West. Here, in the short term, Russia has secured its 2022 revenues by selling less at a higher price but the effects of the loss of confidence of Western customers could seriously reduce financial revenues for the Russian budget and thus severely limit its investment opportunities as well as perpetuate the recession. The arrangements of the European Union countries and the United Kingdom in the dimension of trade in Russian energy resources assume a near total ban on all imports of oil brought in by sea from Russia by the end of 2022 (BBC 27 June 2022 ). A ban on imports of this raw material has also already been introduced by the United States. The EU has also banned coal imports since August, and Putin’s closure of the Nord Stream pipeline marks a new dimension in the trade war with the West European unity in this regard is undermined by Hungary, which does not alter the fact that Russia has lost its credibility as a partner in securing raw materials for its contractors.

The arsenal of sanctions against Russia is further expanded by a ban on trade in Russian gold, Western luxury goods, and finally sanctions on individuals, including the confiscation of their movable property such as luxury superyachts (BBC 06 April 2022 ). To date, more than 1000 Russian citizens and the businesses they run are subject to sanctions announced by the EU, UK, US and Canada, and the list is growing with further Russian attacks on civilians. In addition, a ban has been imposed on direct Russian flights in the airspace of the listed Western states. These other sanctions introduced are affecting mutual business relations, but by the end of the 2022 summer season, they have not eliminated the tourist traffic of Russians to Western countries, especially Mediterranean destinations. The visas for Russians introduced from September 2022 changed this situation Footnote 1 (Council of the EU 09 September 2022 ).

The dimension of international business relations with Russia is completed by the mass exodus of large foreign companies from the Russian market. The list opens with global and popular brands such as McDonalds, Coca-Cola, Starbucks, and Marks & Spencer, but also with the likes of BP, Exxon, Shell and many others. These companies have written off huge investments in this previously very promising market and only a few have decided to continue working together like business as usual. One of the last one to announce its losses is German BASF which takes for 2022 a $7.9 billion writedown as its Wintershall Dea energy business pulls out of Russia (Reuters 18 January 2023 ).

The largest presence on the Russian market had US companies as on 24th of February 2022 they numbered 409 companies, of which only 6% continue to operate or cooperate with Russia until January 2023. Another big investor was German companies, of which 19 out of 127 remained on the Russian market, i.e. 15%. This is a reduction of its number from 23 in September 2022 (18% accordingly). British companies have sharply reduced their activities with Russia among which with 95 per day of invasion cooperation continues one only. From a business ethics perspective it is puzzling to note the high proportion of some European companies continuing to operate on the territory of the aggressor state (Table 1 ). For September 2022 these included Austrian companies (50%—no pulls out until 19th January 2023), French (over 30%—one pull out in September’22 till January’23), Italian (over 30%—one additional pull only till 19th January 2023), Spanish (over 20%—one additional pull only till 19th January 2023). More than 20 per cent of multinational companies from leading economies still operate in Russia having more than 20 large businesses there before 24 February 2022.

The trend of multinational companies leaving the Russian market between September 2022 and January 2023 is presented in Fig.  1 . A slowdown in the exit of multinational corporations from the Russian market is evident but the trend has not been reversed and still successive decisions by the managements of these companies result no longer in mass, but in individual decisions to leave the market of the aggressor state.

Top 16 countries with more than 20 companies operating in Russia before 24. 02. 2022 which totally halting Russian engagements or completely exiting Russia—state as of the day 03.09.2022 and 19.01.2023

Analogous to the exit of multinational corporations from the Russian market is the behaviour of the boards of multinational corporations continuing business operations in Russia. While 2.1 percentage points of multinationals exited Russia between September 2022 and January 2023, 1.1 percentage points fewer companies continued their ‘normal’ operations over the same period, bringing the ‘continuing business-as-usual’ indicator down to 14.9% of companies not modifying their operations in Russia as a result of the country’s war against Ukraine from the 24th of February 2022 (Fig.  2 ).

Top 16 countries with more than 20 companies operating in Russia before 24. 02. 2022 which are just continuing business-as-usual in Russia—state as of the day 03. 09. 2022 and 19. 01. 2023

Although the war is still ongoing the economic impact on Russia is already evident. Inflation of nearly 18%, a drop in retail trade of around 9%, including a large drop in automotive trade of over 80%, is indicated. (BBC 27 June 2022 ). Even though the Russian GDP for 2022 was expected to fall significantly, with estimates varying from 7.8% to as much as 30% Footnote 2 it ultimately ended with negative growth of -2.1% (IFS 2023 ). Undoubtedly, Russia owes this to the Asian markets where it can still count on significant revenues from energy raw materials. Sakhalin 2 liquefied natural gas (LNG) is estimated to bring double the value of revenues in 2023 compared to the previous year (Reuters 26 January 2023 ) Footnote 3 . The Russian economy has been experiencing perturbations in the tourism business since the first stage of aggression against Ukraine with consequences for its own citizens as well as tourist destinations.

The annexation of Crimea by Russia in March 2014 brought enormous changes to the functioning of this hitherto Ukrainian territory. The local population was overwhelmed with consternation after the Russians held an illegal referendum and incorporated the Crimean peninsula into the Russian state which is still not recognised by the overwhelming majority of countries in the world today. The consequences of such Russian action were the international sanctions imposed on Russia and annexed Crimea resulting in the blocking of financial transactions and international cross-border traffic with the region. This clearly had a negative impact on Crimean tourism business which was restricted to receiving tourists mainly from Russia (Godwin 2014 ; Shishkin 2014 ). In the first period the Russians themselves were cautious about visiting this annexed territory and this despite the subsidies for air transport and holidays offered to their citizens by the Russian government (MacFarquhar 2014 ). Places in some resorts managed to be filled with wounded veterans, but even so the negative effect of Western sanctions could not be avoided (Economist 2015 ).

Russia’s tourist traffic to Crimea has managed to recover over the years but by the time of the new escalation of the war against Ukraine in February 2022 foreign tourism had not returned to pre-annexation levels. And while Western sanctions against Russia after the annexation of Crimea did not block Russians from travelling to Western countries for holidays the destination of the Russian-controlled part of the Black Sea basin was the very first choice for many. Yuri Barzykin, Vice President of the Russian Union of the Tourism Industry, in an interview with the trade press, concluded as follows: Most Russians prefer a beach holiday and unable to go abroad people go to Crimea and Krasnodar Territory. In doing so, he expressed the hope that in time Crimea too would attract investments such as in Sochi where international hotel chains such as Hyatt, Swissotel and Rixos have invested (kudamoskvazovet.ru 2022 ).

In domestic travel Russian tourist traffic to Crimea has gained ground already reaching more than 17% in 2020 (Table 2 ). The argument in favour of this was the opening of the road link via the Kerch Bridge in 2018 which connects the Crimean Peninsula with the Russian Taman Peninsula (Krasnodar Krai). In the current war this bridge represents a potential strategic target for Ukrainian troops as it already had been shelled ones. The situation may repeat as cutting off Russian supplies of military supplies to occupied Crimea is a strategic goal when there are plans to reconquer these territory from Russia. The annexed territory ceased to be free of military action after the Ukrainian army successfully attacked Russian military targets in Crimea. The 2022 July and August explosions caused some Russian tourists to flee Crimea but also resulted in a slight reduction in interest in holidaying in the region. From a tourism perspective year 2022 comparing to year 2021 saw a 32% drop in Russian trips to Crimea (ATOR 27 December 2022 ).

The impact of Russia’s war against Ukraine in relation to Crimea also has an additional and rather unanticipated economic effect on Russia. Well, since the effective summer (2022) Ukrainian offensive pushing the Russian army out of the occupied eastern and southern lands of Ukraine, there has been a noticeable decline in property values on the Crimean peninsula (Radio Free Europe Radio Liberty 07 January 2023 ). This is linked to both the warfare effects itself and declarations by the Ukrainian President to seek the liberation of the entire pre-2014 territory of the state. The front-line defeats suffered by the Russian army in the second half of 2022 introduce far-reaching uncertainty as to the final Crimea statehood.

In international terms tourist trips from Russia have been declining since 2014 with a bump recorded in 2015 when tourist traffic fell by 31% the largest decline since 1998. Only 2016 and beyond proved to be better. Growth dynamics were shown by destinations such as the United Arab Emirates, Vietnam, Thailand, but also the Czech Republic and Italy (btet.ru. 2022 ).

Russia’s war phase against Ukraine so far has not eliminated outbound tourism to Western countries. For many operators, hoteliers and restaurateurs they were a desirable recipient of their services especially when considering the average level of spending by Russian tourists when travelling abroad (Table 3 ).

In years Pre-covid 19, Russian tourists were keen to choose holidays in Turkey and European countries with their activity not indifferent to the political activity of the Russian authorities, as reflected among other things, in the collapse of tourism to Turkey in 2016 and its recovery after the normalisation of mutual relations between the two countries (Table 4 ). A similar effect is expected from the Autumn 2022 final suspension of the visa agreement between the EU and the Russian Federation.

The last pre-covid year (2019) reflected directional trends in Russians’ overseas tourism. Turkey’s popularity has increased significantly, with a smaller increase but still a significant increase in tourist traffic to Italy but also after five years since the annexation of Crimea tourist travel to the Ukraine has increased. The trend of post Crimea annexation and pre-covid tourism destinations presents Fig.  3 . Among the top tourist destinations, the largest percentage increase in tourist trips was recorded to Tunisia, Georgia, Cuba, Turkey, Abkhazia, China, the Dominican Republic and the only European country in this group, Italy (which is the only one of this group to lose out as a result of the war on edu-tourism). It is worth to add that in 2019 two more destination were popular which are UEA 968,000 and Cyprus 860,000 tourists visiting from Russia (Table 5 ).

Trend of tourist trips of Russian citizens abroad in thousands, 2014–2019—with a reference point to the year 2014

Turkey, Cyprus, Egypt, Italy, Greece were favourite Russian tourist destinations. Turkey alone received 6.7 million Russian tourists in 2019. Expectation of continues growth to around 10 million Russians tourists in 2022 had not been met. Taking the war situation into account 5, 3 million Russians tourists still was a significant gift to Turkish economy and reflect its policy towards war itself. Russians also have a taste for far-flung travel, so recent exceptional increases have been recorded in countries such as Thailand, Sri Lanka, Bahrain, Cuba, the Maldives, Japan. Today, Russian foreign tourism also puts a question mark over these destinations. Rubel depreciation, money transfer problems and airline blockade paralyse travel agencies.

The war against Ukraine and the sanctions introduced for the 2022 summer season have not closed off tourism opportunities for Russians in the EU. A Russian industry analyst firm posted encouraging information for clients on its website. Despite the sanctions, the demand for travel to Europe among Russian tourists has grown. Such data was provided by the insurance company Rosgosstrakh. According to the company’s report, the demand for insurance policies to the Schengen countries grew by 7% this summer (Russtd.com 2022 ). The lack of reliable data on tourist trips of Russians to Europe for 2022 makes it impossible to show the impact of the war on this direction of tourist traffic. Although it is apparent that the EU Mediterranean countries were the destination of many Russians here Italy, Spain and Greece in particular are pointed out. Association of tour operators of Russia omits European destinations in the publicly available report, concluding ‘vacation bookings in Europe have moved into the category of "exotic". There is still a very small demand for these countries—tour operators receive applications for booking hotels and tours to Italy, France, Greece, Montenegro, Cyprus and Bulgaria’ (ATOR 27 December 2022 ).

The above statistics for 2022 do not include Russians travelling without Russian passports. The practice of acquiring so-called ‘golden visas’ for foreign investment has only intensified in 2022. A particular increase in transactions in property purchases entitling to such visas was observed in 2022 in Turkey and the AUE. In the former of these countries, $250,000 had to be invested in a property, while in the case of UAE, only $205,000 was required. This trend is bound to continue in 2023, especially when we consider the number of Russians who have left their country permanently in protest against the war, forced mobilisation and Putin’s policies Footnote 4 .

3 Tourism business in Ukraine during war period and still hope for better future

Due to Russia’s war against Ukraine, Ukrainian business has suffered greatly. The tourism industry which has been almost non-existent for the last three years is no exception although it is struggling to survive—first because of the Covid-19 pandemic, now because of the war. Flights are grounded to a halt, the sea is mined and only bus routes remain, meaning the journey to foreign resorts takes more than 24 h. Part of the territory of Ukraine is occupied or in a war zone and tourism activities are not possible there. The western and central regions act mainly as a refuge area for those Ukrainians who were forced to leave their homes as a result of the aggression of the Russian Federation.

The huge loss of Ukrainian infrastructure including from a tourism perspective especially in the Black Sea basin points to the urgent need to rebuild it after the war ended. The Ukrainian authorities are aware of this, but Western leaders are also discussing it. President Zelensky at a meeting with US business representatives called for a further exodus of Western companies from Russia while encouraging them to locate in Ukraine. Presenting proposals for international investors he pointed out concrete steps businesses can take: Hiring highly trained Ukraine-based tech workers for remote jobs; hiring Ukrainian refugees, with 5 million having fled Ukraine since the beginning of the invasion; investment in strategic growth sectors such as digitalization and green renewable energy; continuing purchases of Ukrainian exports; and aiding the rebuilding of the country’s decimated infrastructure and industrial capabilities (Sonnenfeld and Tian 2022 ).

President Zelensky realises that business needs to protect the security of investments and a stable legal system but rules out peace at any price “Ukraine is willing to put an end to this war-but not at the price of our independence”—he says. He sees the stay of Western companies in Russia as an endorsement of the Russian financial system, which prolongs the ongoing war and although he did not say so explicitly, investment preferences can be expected for those companies or their countries of registration that have passed from Ukrainian point of view the ethical test during the ordeal. With the words ‘We need to work on rebuilding Ukraine’ he indicates that he will create the conditions for the international reconstruction of the Ukrainian state.

Due to the war and the sanctions imposed on Russia tourist travel to eastern destinations has been frozen and previously popular weekend trips to Lviv, Kiev or Moscow have disappeared from the market. In the past some Ukrainians used to fly to Russia for weekends. Today this does not exist because traffic is simply frozen and all tourism in that direction is virtually non-existent. For today tourism towards Ukraine has also ceased to exist. In turn, the closure of airspace over Ukraine and Russia means that planes flying to popular eastern destinations such as Bali today have to circumnavigate the arc of these territories and make up their journey. However this is not reflected in the volume of tourist traffic in that direction. It is still believed that once the war is over and the troops are gone, tourism in Ukraine will certainly recover quite quickly. Tourists will return as soon as it is completely safe to do so.

The reconstruction of the infrastructure destroyed by the war will be a challenge of enormous proportions, which the Ukrainian state alone will not be able to cope with. The creation of an international fund for the reconstruction of the Ukrainian state should be envisaged and the selection of the beneficiaries of the contracts, assuming the defence of Ukrainian state sovereignty will be influenced by the authorities of the Ukrainian state and key donors. At the same time, there will be an opportunity to rebuild industrial infrastructure including the tourism industry. It is to be expected that leisure and tourism related industries will need capital injections in the first period of their return to the market and may offer to sell shares at an attractive price. From the perspective of a country emerging from war the invitation to foreign entrepreneurs to invest provides an incentive to engage external capital not only in the return to the market of companies located in Ukraine but also provides an element of credibility to the security of investments located here.

4 Conclusions

The consequences of Russia’s war against Ukraine have already had far-reaching consequences. At the level of the invaded state it is a huge blow to the Ukrainian population (casualties—soldiers and civilians, migration) but also to the infrastructure (massive destruction) and the accompanying consequences. For the attacking Russia it has consequences that reflect the scale of violence and repression it has used and therefore also the loss of life (soldiers not civilians), the withdrawal of numerous investors and the cutting off of the inflow of Western technology (directly as some sanctions are still being circumvented).

The perpetuation of the state of war will result in a further gradual dewestarnization of the Russian economy, as well as a continued reduction in the economic activity of Western companies on Russian territory, including their further withdrawal. However, some western companies will certainly remain in this market, hoping to develop a competitive advantage for the post-war period. With a further prolongation of the war, these companies will be under pressure to choose cooperation or exit from the aggressor state with image and perhaps capital consequences.

In the dimension of tourism business a visible effect is the immediate deturistification of both countries although in different dimensions. Many Ukrainian citizens in particular have been forced to migrate leaving all their belongings behind. Some of them have fed into the European tourism business but often as low-paid workers. For Russians the war mean limitation to domestic tourism only or a shift in international tourism geographical destinations as Europe is becoming perceived as ‘exotic’. The visa suspension for Russians will limit European direction trips. Taking into account Russian brutality of military action against Ukrainians including civvies this reduction in tourist traffic can reduce the social unrest associated with ignoring the war tragedies in pro-European Ukraine.

It is unlikely that 2023 will lead to the end of hostilities, so the changes already taking place in both geopolitics and business, including tourism, may become entrenched. Russian and Western business will loosen ties and those severed will not soon recover. Russia will orient itself more towards Asian and African countries while it will withdraw economically from Europe. For the West and Europe in particular this means reorienting economies towards greater economic independence—not yet deglobalisation but certainly seeking its alternatives. The European tourism industry will follow this trend and the reduced number of tourists from Russia and its allies will likely be replaced by higher price margins for the recipients of tourist services. On the other hand the new directions of Russia’s economic activity will be linked to the search for new tourist destinations, while their direction is currently being tested and may not necessarily mean a permanent change in the tourist preferences of Russians.

It is too early to set a date for the end of war especially for the elimination of all threats to the security of the region but huge investments are expected for the reconstruction of Ukraine. The beneficiaries will obviously be the Ukrainians themselves but also to some extent the Western countries which nowadays support Ukraine financially and with equipment in its struggle for sovereignty. What shape and condition Ukraine emerges from the war may guide business investment in the region’s tourism. These will need to be accompanied by investments in ensuring the security of the Ukrainian state itself as well as individual industries and regions.

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Russian tourism to GCC worth USD 1.22 billion by 2023

Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly

Russian tourists travelling to the GCC are expected to generate an estimated USD 1.22 billion in travel and tourism revenue by 2023, an increase of 19% when compared with figures from 2018.

According to data published by Reed Travel Exhibitions ahead of Arabian Travel Market 2020 , the UAE will witness the highest growth, with total tourism spend by Russian visitors projected to reach USD 1.153 billion by 2023 and tourism spend per trip increasing 5% from USD 1,600 to USD 1,750.

“A significant growth area for travel and tourism revenue”

Danielle Curtis, exhibition director ME, Arabian Travel Market, said: “With the oil price recovery, stabling of the financial markets and increased disposable incomes, Russia, once again, represents a significant growth area for travel and tourism revenue across the GCC as Russian nationals turn to the region for its year-round sunshine, world-class hotels and resorts and fast-paced leisure facilities and amenities.”

Building on this, Saudi Arabia is expected to witness the second-largest increase closely followed by Oman, with total Russian tourism spend estimated to reach USD 28,659,600 and USD 21,788,000 respectively, by 2023.

Following recent reforms in the Kingdom, the introduction of tourism e-visas and the on-going development of Giga projects including The Red Sea Project and Amaala, Saudi Arabia is looking to capitalise on Russia’s growing tourism spend.

“Saudi Arabia’s Giga Projects, in particular, are aimed to cater to the luxury segment of the tourism market targeting high-net-worth individuals and Russia is currently ranked fourth in the world in terms of the number of billionaires residing in the country, with 303 Russians representing a total billionaire wealth of USD 355 billion,” Curtis said.

Looking at Russian outbound tourism figures, the country continues to be one of the top 10 source markets for the UAE, with 578,000 Russian visitors entering the UAE in 2018 and this number is predicted to increase at a Compound Annual Growth Rate (CAGR) of 4.2% to 688,300 by 2023, according to Colliers International.

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Three-day holiday bolsters China’s domestic tourism market

Tuesday, 09 Apr 2024

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Economy on track for firmer growth in 1Q

Cambodia ranks first in asean and third among the 20 fastest growing economies in asia with a growth rate of 6.1% in 2024, aidilfitri holiday tradition spurs indonesia's economy as tens millions of muslims travel home.

Dragon boats are seen during the Taizhou Jiangyan Qintong Boat Festival at the Qinhu National Wetland Park in Taizhou, in the eastern province of Jiangsu. Traditionally held around the Qingming Festival in April, the centuries-old tradition includes theatrical performances, as well as dragon and lion dances, with folk dances taking place directly on the boats. — AFP

Beijing: The just-concluded Qingming Festival holiday proved to be a boon for the tourism industry in the country with both the number of travellers and tourism revenue soaring as people made the most of the short break.

Figures from the Culture and Tourism Ministry last Saturday showed that domestic destinations witnessed about 119 million visits during the three-day holiday, which started last Thursday, the Tomb Sweeping Day, up 11.5% compared with 2019. There was only one day off for the occasion last year, and it resulted in 23.77 million domestic visits.

The travel boom during the holiday generated revenue of about 54 billion yuan, up 12.7% compared with 2019, the ministry said.

Reports and figures from travel agencies and local government departments also paint a positive picture. Travel portal Trip.com said that over the holiday, bookings for short-distance tours to destinations within cities customers live in grew 211% year-on-year (y-o-y), and bookings to neighbouring destinations located outside the cities they live in skyrocketed 350% y-o-y.

The top attractions among users of the travel portal were places well known for flower blossoms at this time of the year. Ticket bookings for such attractions surged 391% y-o-y.

Luoyang, a city famous for peony flowers in Central China’s Henan province, Nyingchi in the Xizang autonomous region with its peach blossom-covered mountains and Nanjing with plum blossoms in the eastern province of Jiangsu, were among the popular destinations for nature lovers during the holiday.

“People have shown a strong desire to travel this holiday, and the tourism market is in continuous recovery,” said Qi Chunguang, vice-president of online travel agency Tuniu.

He said the platform saw hotel bookings grow 68% y-o-y, and the number of self-driving travellers using Tuniu’s services increased 61% y-o-y. “The results meet our expectations,” he added.

In addition to traditionally popular destinations such as Beijing and Shanghai, lesser-known places also saw huge tourist influx after local food and unique folk activities found viral online fame.

Quanzhou, a city in the southeastern province of Fujian, welcomed a huge number of travellers attracted by its traditional “head-pinned flowers”. Qunar, an online travel agency, said that hotel bookings to Quanzhou grew 3.3-fold during the holiday.

Xiao Peng, a researcher from Qunar, said that young people, who are the main drivers of tourism consumption, prefer diverse or unique travelling experiences. “An ancient street or a delicious cuisine may attract a large number of travellers to a place,” he said.

The inbound and outbound tourism market also showed good performance over the holiday.

According to the National Immigration Administration, the Chinese mainland saw about 5.19 million entries and exits, up 69.6% y-o-y.

Qi Chunguang, vice-president of Tuniu, said: “Thailand, Japan, the Maldives, Egypt and New Zealand were popular among our customers.

“Some tailored tour products to South-East Asian destinations including Singapore, Malaysia and Thailand were also popular, especially among young people, aged 25 to 35, as the three countries are visa-free for Chinese citizens.” — China Daily/ANN

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