Euromonitor International Ltd

Euromonitor International Ltd

April 09, 2014 02:30 ET

Russia Tourism Struggles Between Mega Events and Political Crisis

LONDON, UNITED KINGDOM--(Marketwired - April 9, 2014) - Market Research Company Euromonitor International revealed today the latest trends for the travel and tourism industry globally and in Russia at the WTM Vision Moscow conference.

In his presentation, 'Consumer Trends and Forces Driving Change in the Travel Industry', Vitalij Vladykin, Senior Research Analyst at Euromonitor International, explained that arrivals grew again in 2013 at a rate of 4% globally, reaching record numbers of over one billion world-wide.

Russia's arrivals grew above average at a rate of 13% in both 2012 and 2013. However, Russia's outbound tourism continues to show a stronger performance than inbound with the hope the Winter Olympics in Sochi and the FIFA World Cup in 2018 will raise the country's profile to boost visitor arrivals. The dominating source markets for inbound arrivals remain the country's neighbours and the CIS states, which have close historical ties.

Ukraine represents the primary inbound market for Russia, with 6.6 thousand arrivals from Ukraine in 2013. However, the political situation in Ukraine has the potential to slow future tourism performance as tensions rise with arrivals expected to fall by over 15% over 2014.

Russia's domestic tourism is growing and is expected to show strong compound annual growth rate of over 10% for many regions during 2013 to 2018. The Volgograd Region is one of the top destinations for expected growth due to rail connections from Moscow and St Petersburg, but this may change after two suicide bombings in December 2013. Terrorist attacks and the revolution in Ukraine have the potential to inhibit the positive growth experience by Russian domestic and international demand.

Positive signs for the travel industry in Russia are coming from the accommodation sector with international luxury hotel chains investing in Moscow, St Petersburg, Kazan and Sochi. New outlets also have opened in second-tier Russian cities, aiming to entice growing numbers of business travellers. Online travel also represents a success story for Russian tourism, poised to expand significantly at a 13% CAGR rate over 2013 to 2018.

About Euromonitor International

Euromonitor International is the world's leading provider for global business intelligence and strategic market analysis. We have over 40 years of experience publishing international market reports, business reference books and online databases on consumer markets.

We deliver market research solutions to support strategic planning for today's increasingly international business environment. Our research offers in-depth market analysis on consumer goods and services industries worldwide, as well as economic, demographic and socio-economic data and insight on countries and consumers.

Euromonitor International is headquartered in London, with regional offices in Chicago, Singapore, Shanghai, Vilnius, Sao Paulo, Santiago, Dubai, Cape Town, Tokyo, Sydney and Bangalore, and has a network of over 800 analysts worldwide.

Contact Information