Travel and Tourism Sector in Russia Contributed 5.9% to National GDP in 2011, Reports Timetric12 Feb 2013 • by Natalie Aster
The travel and tourism sector in Russia contributed 5.9% to the national GDP and 5.3% of the country’s total employment in 2011. Investments in Russia’s travel and tourism sector accounted for 3.0% of the total investments in 2011. The growth in tourist volume can be attributed to factors such as the country’s strong economy, rising disposable income levels and government initiatives to promote the country as an attractive tourist destination.
Outbound tourism to register strong growth over the forecast period
Russian outbound tourist volumes recorded a consistent annual increase between 2007 and 2011 and grew at a CAGR of 6.75% to reach 44.5 million in 2011. However, outbound trips declined by 6.2% in 2009 as a result of the global financial crisis. In 2010 and 2011, outbound tourism recovered from the recessionary deflation and registered healthy annual growths of 14.7% and 13.2% respectively.
Inbound tourism to register healthy growth over the forecast period
According to the report “The Future of Travel and Tourism in Russia to 2016” by Timetric, inbound tourism in Russia registered significant growth following the end of the Soviet Union. In 2011, 27.14 million foreign tourists from 225 countries visited Russia, with 64% coming from CIS countries. Inbound tourism registered a CAGR of 4.34% during the review period. The number of inbound tourist arrivals declined from 23.6 million in 2008 to 21.3 million in 2009 as a result of the global financial crisis but the growth rate became positive again in 2010. The key factors that attracted international tourists during the review period include the country’s strong economic growth, travel and tourism infrastructure improvements and initiatives to promote tourism by the government. Inbound tourism is expected to continue growing at a CAGR of 8.77% over the forecast period, resulting in 41.33 million arrivals by 2016. The main growth drivers include the government’s continued efforts to increase inbound tourism and the country’s tourism infrastructure improvements.
The Future of Travel and Tourism in Russia to 2016
Published: November, 2012
Price: US$ 1,950.00
Russia registers high tourism spending
Russia was ranked seventh in the world in terms of travel expenditure by the United Nations World Tourism Organization (UNWTO) in 2011. Spending by domestic tourists increased from RUB0.8 trillion in 2007 to RUB1.3 trillion in 2011, at a CAGR of 12.28% during the review period. Overall spending by domestic tourists increased by 15.3% in 2011. With good prospects for the economy and rising disposable income levels expected, domestic tourist spending is anticipated to reach RUB2.32 trillion in 2016, after increasing at a CAGR of 11.56% during the forecast period. Inbound tourist spending is expected to achieve a CAGR of 9.69% over the forecast period, to reach RUB762.36 billion in 2016.
Russian hotel market expanding rapidly due to hosting of international sporting events
The hotel market in Russia is highly developed in major cities such as Moscow and St. Petersburg, as well as in Black Sea resort towns such as Sochi. One of the major forces driving hotel development in the country is the upcoming international sporting events taking place in the country. The upcoming 2014 Winter Olympics has attracted many foreign hotel companies to Sochi. Furthermore, the country’s hosting of the 2018 Football World Cup also offers significant opportunities for the construction of a number of quality hotels in the country.
More information can be found in the report “The Future of Travel and Tourism in Russia to 2016” by Timetric.
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