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Deep Crisis Of Tourist Market
September 27, 2014 01:08


The demand for tourist trips dropped to 30-50% after a series of bankruptcies. Russian tourist market is going through a deep crisis due to economic and political factors. 14 tour operators have announced their financial insolvency since mid-July, at least 130 thousand Russians have suffered due to the bankruptcy of companies, according to the calculation of the Russian Union of Tourism Industry (RUTI).

About 50 thousand of them are those who had to quickly escape from resorts because of the problems with hotels or return tickets. The negative situation at the market has influenced the amount of purchased vouchers - the demand has sharply decreased.

“2014 turned out to be much worse for the travel industry than even the crisis year of 2009, when the decline in outbound tourist flow made up 15-20%. This year the drop of the demand for tours reached 30-50%, and the sale of tours virtually stopped after the first four or five bankruptcies”- the spokesman for the RUTI Irina Turina reported. According to her, the lack of funds accompanied by fierce market competition (when supply substantially exceeds demand) caused the so-called domino effect: as a result of it ten firms went bankrupt.

There are about 4 thousand tourism organizations registered in Russia currently, and only 1.7 thousand of them conduct business efficiently, according to the All-Russian Union of Insurers (ARUI). According to the director general of ARUI Igor Jurgens, up to 1 thousand players may leave the market.

The initiative of the Ministry of Culture to increase the voucher prices due to additional contribution to insurers was deemed unsatisfactory. “These are evasive proposals which strengthen the control over tour operators: the way they act, the way they conduct financial activity, but the measures are so far evasive and inconsistent, so we do not expect recovery in this industry. The situation will be very difficult, especially during crisis” – Jurgens noted. More than a dozen Russian travel agencies have quit the tourism market over the past two months.

Earlier the suspension of activities in connection with the financial insolvency was announced by such tourism agencies as “Neva”, “Labyrinth”, “Ideal Tour”, “Yuzhnyi Krest” (“Southern Cross”) and many others. The last tour operator that announced its financial insolvency at the moment is the St. Petersburg company “Versa”. According to the preliminary estimates, about 9 thousand customers of the company are abroad currently. The company was founded in 1999 and was listed among largest tour operators of St. Petersburg.

Author: Anna Dorozhkina

Tags: Russian tourism tourist crisis    

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