TOURISM IN RUSSIA

Text by: Sergey Boltramovich,
Solid Invest Group
September 2001

Russia has enormous potential for the development of foreign tourism. However, the tourism potential is virtually unrealised today. The number of foreign tourists, visiting Russia annually (1 924 000 people in 1999) is far lower than the similar indicator (about 30 million people per year) in Spain, Italy and France - the world's leaders in this sphere.

The majority of foreign tourists arrive in Russia from the neighbouring countries (including Finland - 316 000 people in 1999) and the following "Big Seven" countries:

Germany - 107 000
USA - 66 700
United Kingdom - 45 000
Italy and France - 44 500 each
Japan - 30 300 people in 1999.

The reception of tourists is handled by about 16 000 operators. None of these companies are state-owned, but "Intourist" still retains its leading position amongst them - according to various estimations they have up to 20% of the total volume during the 2000.

Cultural attractions

Russia's extensive cultural and historic heritage goes back 1000 years, predominantly within the frame of the unique Russian civilization bearing the elements of both European and Oriental cultures, plus the traditional hospitality of the population, attract foreign tourists.

The most significant monuments of traditional Russian culture are located in the North-West and central areas of the European part of Russia. These are: Moscow (the Kremlin alone received about 1.7 million visits of foreign tourists in 2000) and its environs, Novgorod, Pskov-Pechory-Izborsk, Tver, Yaroslavl, Rostov, Vladimir-Suzdal, Archangelsk, Smolensk, Vologda, Velikiy Ustyug, Totma, Staraya Ladoga, Torzhok, Pereslavl-Zalessky, Uglich, Danilov, Kirillov-Belozyorsk, Valaam, Kizhi, Solovki and others. These regions are also world famous for their folk handicrafts and trades.

Monuments, reflecting the European component of the Russian civilization, are concentrated in Saint-Petersburg (the largest museum in the country - the State Hermitage - was visited by about 2 million foreign tourists in 2000) and its environs. Saint-Petersburg, which was the Imperial capital for more than two hundred years, is an architectural and artistic ensemble, comparable to European cities like Vienna, Paris and Rome. The abundance and luxury of the palaces and parks in its environs has no comparison.

Besides the above, Russia has important monuments from Moslem (Northern Caucuses, Povolzhiye) and Buddhist (Zabaikailye, Kalmykia) cultures.

Moscow and St. Petersburg are the foci of theatrical and musical activities. Many artistic groups are well known outside the country.

Nature tourism

Russia has the largest land territory in the world, which is characterized by extremely diverse natural conditions and numerous picturesque landscapes. The diversity of the landscape allows a wide range of nature-based tourist services.

The coasts of Russia are washed by thirteen seas. The coast lines of the Black Sea, Azov Sea, Caspian Sea, Baltic Sea, White Sea, Sea of Japan and Sea of Okhotsk are the most favourable for tourism.

There are endless possibilities for organizing water-based tourism. Along with numerous and diverse rivers there are picturesque lakes rich in fish, including the largest fresh water body on the planet - Lake Baikal.

The volcanic landscapes of the Far East - the Kamchatka and Kurile Islands - are unique. There are more than sixty active volcanoes there, one of the few geyser valleys in the world and other remarkable sights.

The vast areas covered with forests in Russia are rich with wild mushrooms and berries. There are also wide possibilities for organizing different kinds of hunting trips for big and small game.

The Caucasus Mountains are famous for their alpine-skiing resorts and spas. The Ural Mountains are a mineralogical treasury of Russia; unique semi-precious stones are mined and appropriate artistic handicrafts are well developed there. The landscapes of Altai, Sayan Mountains, Sikhote Alin and other mountains are extremely picturesque.

Obstacles for the development of tourism

There are several obstacles, hindering the wide development of foreign tourism in the country. First of all, the general instability in the country and regional conflicts have resulted to the formation of a negative image of Russia in the Western mass media. Second, the relatively high crime rate in Russia does not encourage foreign tourists to visit the country. Third, Russia is an unknown country for many due to the long period of the country's "secretiveness", and as a result, it is falling out of the established international structure of tourism (only one port - Saint-Petersburg - is traditionally included in main cruise routes). The insufficient advertising of Russian sights abroad combined with the undeveloped tourism sector in the country and low levels of service do not help in making the country a familiar and attractive tourist target. In addition, the largest cultural institutions implement a double pricing policy, i.e. foreigners pay much higher entrance fees than the domestic customers. And finally, severe climatic conditions in major parts of the country considerably limit the possibilities of developing some highly profitable branches of tourism, e.g. "beach" tourism.

The development of foreign tourism necessitates a good state of service and related sectors: transport, hotels, public catering, entertainment and sports institutions. The tourist infrastructure is comparatively well developed only in Moscow, St. Petersburg and some smaller centres such as Sochi, Novgorod, Suzdal and Vyborg. However, also in these locations there is an acute shortage of medium and top class hotels, and the existing ones do not conform to international standards. Despite a stable growth of the number of foreign tourists during the last 5 years the amount of hotel accommodation has decreased.

The dynamics of certain indicators of the Russian tourism sector in 1995 - 1999

The sphere of entertainment is characterized by a lack of flexibility and orientation not to the tastes of mass western customers, a narrow range of services and a bad crime situation. The catering sector is being modernized more actively than the others are; however, in its quality and diversity this sector is still behind the world's tourist centres.

Generally speaking the tourist infrastructure in Russia needs considerable capital investments and changes in the approach to foreign tourism - to be more capable to respond to consumers demands.