2. Tourism in modern Russia

Tourism in Russia has seen rapid growth since the late Soviet times, first inner tourism and then international tourism as well. Rich cultural heritage and great natural variety place Russia among the most popular tourist destinations in the world. The country contains 23 UNESCO World Heritage Sites, while many more are on UNESCO's tentative lists. Major tourist routes in Russia include a travel around the Golden Ring of ancient cities, cruises on the big rivers like Volga, and long journeys on the famous Trans-Siberian Railway. Diverse regions and ethnic cultures of Russia offer many different food and souvenirs, and show a great variety of traditions, like Russian sauna,Tatar Sabantuy, or Siberian shamanist rituals.

Unless exempt, tourists to Russia are required to purchase a visa, in addition to having a valid passport. Visas cannot be purchased at the border, and once at the border must be presented with other relevant documents.

Tourist volumes increased in Russia during the period from 2008 to 2012, driven by rising disposable incomes and tourism promotion initiatives by the Russian government. Inbound tourist volumes expanded at a review-period CAGR of 4.45%, and are expected to increase further over the forecast period (2013–2017) at a CAGR of 8.86%.

Russia’s economy is expected to grow by 1.8% and 2.9% in 2013 and 2014 respectively. Private consumption growth, supported by rising real wage gains and low unemployment rates, is anticipated to remain the nation’s key economic driver. Moreover, the high prices charged for crude oil and gas – Russia’s main exports – will also support economic growth. 

With a land mass of 17 million km2, Russia is the largest country in the world. Its territory extends from the Baltic Sea in the west to the Sea of Japan in the east and comprises 11 time zones. Russia’s vast geographical expanse includes snow-covered mountains, vast rivers and lakes, Siberian wilderness, popular sea resorts around the Black Sea coast, and 23 UNESCO World Heritage Sites. Russia’s rich cultural heritage, borne out of a mixture of Vikings, ancient Slavs, Mongols, Tatars, Scythians, Swedish, Greeks, Genoese and others, is a big draw for tourists.

In May 2013, the Russian Federation Federal Agency for Tourism (Rosturizm) held seven international forums devoted to various aspects of domestic tourism development in Yaroslavl, Kirov, Belgorod, Sverdlovsk, and the Republics of Khakassia, Komi and Tatarstan. Topics covered included the government’s participation in the development of the tourism industry, development of children’s tourism, inter-regional and cross-border cooperation, development of agriculture and eco-tourism, directions for the formation and promotion of national and regional tourism products, improvements to the quality of tourism services and an increase in competitiveness. 

The 2014 Winter Olympic Games in Sochi and the 2018 FIFA World Cup are expected to improve the country’s image and encourage growth in inbound tourism over the forecast period. Preparation for these events will include improvements in transportation and accommodation infrastructure, which will also help to develop tourism in these regions in the long term.

According to the Federal Tourism Agency, in the first quarter of 2013, outbound tourism in Russia increased by 19%, adding 3.3 million tourists, when compared to the corresponding period in 2012. The most popular destinations were Egypt, Thailand, Finland, China, the UAE and Germany. 

The Russian government is aiming to increase the capacity of domestic and international LCCs. Changes to legislation, such as refundable tickets, inclusion of checked luggage and in-flight food and beverages are expected to encourage LCC activity; the carrier type’s market share is projected to reach 35% by 2023.  

As of 2012, 55% of all the international brand hotels in Russia were located in Moscow and Saint Petersburg, while Sochi, one of the sites of the 2014 Winter Olympic Games, has only 10%. Leading companies in the Russian hotel market are Rezidor Hotel Group with 21 hotels and 6,357 rooms, InterContinental Hotel Group with 14 hotels and 3,888 rooms, Marriott International with 14 hotels and 3,482 rooms, and Accor Hotels with 10 hotels and 2,149 rooms.

Demand for rental cars primarily originates from inbound travelers. With the majority of inbound tourism originating from neighboring countries such as Finland, Ukraine, Kazakhstan and Uzbekistan, road travel is the preferred mode of transport. Other Commonwealth of Independent States (CIS) countries also share road links with Russia.

Russians still prefer travel agencies when making their travel plans. However, this is expected to change over time as an increasing number of people are making use of the internet to book their trips instead of going to travel agencies. According to a special evaluation of IPK International’s from 2008 to 2012 the market share of internet travel bookings in Russia has nearly quadrupled, rising from nine to 42%.