Travel and Tourism in Russia to 2018
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Travel and Tourism in Russia to 2018 Report Code: TT0174MR Publication Date: November2014 www.tourism-ic.com John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0)20 7936 6400 Fax: +44 (0)20 7336 6813 Travel and Tourism in Russia to 2018 Page 1 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 SUMMARY 1 SUMMARY The Travel and Tourism sector in Russia is still in the initial stages of development, especially for leisure purposes. Due to the high cost of tours in the country, many Russians prefer outbound trips over domestic ones. This is also a key reason behind the small size of the inbound tourism market, with a total of XX.XX million trips in 2013. Both the inbound and outbound tourism markets are largely dependent on neighboring countries such as Ukraine and Kazakhstan. As these countries are well connected to Russia through roads, land is the preferred mode of transport for tourists. The number of domestic trips increased from XX.XX million in 2009 to XX.XX million in 2013, at a CAGR of XX.XX %. This growth is attributed to the increase in disposable income due to economic growth; leisure trips accounted for XX.XX % of the total domestic trips in 2013. Currently, the inbound tourism market is largely driven by visiting friends and relatives (VFR) along with a growing role for business trips. VFR accounted for XX.XX of the inbound trips in 2013, while business trips represented XX.XX %. The Ukrainian crisis had a significant adverse impact on the inbound and outbound tourism markets in Russia, which is expected to remain throughout the forecast period. Inbound trips are estimated to decline at a rate of XX.XX % in 2014 while outbound trips will fall by XX.XX %, from XX.XX million in 2013 to XX.XX in 2014. The decline in outbound trips is expected to encourage the growth of domestic tourism over the forecast period; domestic trips are expected to increase from an estimated XX.XX million in 2014 to XX.XX million in 2018. 2 SYNOPSIS The report provides detailed market analysis, information and insights, including: Historic and forecast tourist volumes covering the entire Russian travel and tourism sector Detailed analysis of tourist spending patterns in Russia for various categories in the travel and tourism sector, such as accommodation, sightseeing and entertainment, foodservice, transportation, retail, travel intermediaries and others Detailed market classification across each category, with analysis using similar metrics Detailed analysis of the airline, hotel, car rental and travel intermediaries industries 3 REASONS TO BUY Take strategic business decisions using historic and forecast market data related to Russian travel and tourism sector Understand the demand-side dynamics within Russian travel and tourism sector, along with key market trends and growth opportunities Travel and Tourism in Russia to 2018 Page 2 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 TOURISM FLOWS 4 TOURISM FLOWS 4.1 The Market 4.1.1 Domestic tourism The Russian domestic tourism market is significantly smaller in comparison to other European countries such as France, the UK, Germany, and Spain. Despite a decline in 2009 due to the global financial crisis, the market has demonstrated healthy growth on the whole during the historic period both in terms of tourist volume and expenditure. Figure 1: Russia – Domestic Tourism Expenditure (RUB Million), 2009–2018 Accommodation Entertainment and sightseeing Foodservice Retail Transportation Travel intermediation 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Travel and Tourism IC analysis, Company information, UNWTO, National statistics © Travel and Tourism Intelligence Center Travel and Tourism in Russia to 2018 Page 3 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 TOURISM FLOWS 4.1.2 Inbound tourism Russia’s inbound tourism market registered strong growth during the historic period. Tourist volume increased at a CAGR of XX.XX%, from XX.XX million in 2009 to XX.XX million in 2013, while inbound tourist expenditure expanded at a CAGR of XX.XX % from RUB XX.XX billion (US$ XX.XX billion) in 2009 to RUB XX.XX billion (US$ XX.XX billion) in 2013. Figure 2: Russia– International Arrivals by Mode of Transport (%), 2009 and 2013 19.2% Air 28.2% 28.9% 23.8% 5.0% Land Sea 6.2% 41.1% Rail 47.7% Inner circle – 2009 Outer circle – 2013 Source: Travel and Tourism IC analysis, Company information, Federal Agency for Tourism, Ministry of Culture, © Travel and Tourism Intelligence Center Trade Press, UNWTO Travel and Tourism in Russia to 2018 Page 4 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 TOURISM FLOWS Ukraine was the country’s leading source of tourists, accounting for XX.XX % of the total international arrivals in 2013, followed by Kazakhstan and Uzbekistan with shares of XX.XX % and XX.XX % respectively. According to a publication from Universidad Politécnica de Cartagena, an estimated XX.XX million Russians lived overseas in neighboring countries of former Soviet States in 2013 such as Ukraine, Kazakhstan, and in Eastern and Northern EU countries such as Poland and Finland. These people largely visit Russia on VFR purposes and constitute a significant portion of inbound tourists. Table 1: Russia – Tourist Arrivals from Top 10 Countries (Thousand), 2009–2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Travel and Tourism IC analysis, Company information, Federal Agency for Tourism, Ministry of Culture, Trade Press, UNWTO © Travel and Tourism Intelligence Center Figure 3: Visa Policy Source: Travel and Tourism IC analysis © Travel and Tourism Intelligence Center Travel and Tourism in Russia to 2018 Page 5 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 TOURISM FLOWS 4.1.3 Outbound tourism The Russian outbound tourism market registered significant growth during the historic period. Outbound tourist volume increased from XX.XX million in 2009 to XX.XX million in 2013, at a CAGR of XX.XX %, while expenditure grew at a CAGR of XX.XX %, from RUB XX.XX billion (US$ XX.XX billion) in 2009 to RUB XX.XX trillion (US$ XX.XX billion) in 2013. Figure 4: Russia – International Departures by Purpose of Visit (Thousands), 2009–2018 Business Leisure VFR Other Personal 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Travel and Tourism IC analysis, Company information, Federal Agency for Tourism, Ministry of Culture, Trade Press, UNWTO © Travel and Tourism Intelligence Center Travel and Tourism in Russia to 2018 Page 6 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 TOURISM FLOWS Table 2: Russia – Tourist Departures to Top10 Countries (Thousand), 2009–2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Travel and Tourism IC analysis, Company information, Federal Agency for Tourism, Ministry of Culture, Trade Press, UNWTO © Travel and Tourism Intelligence Center Figure 5: Visa Requirements for Russian Citizens Source: Travel and Tourism IC analysis © Travel and Tourism Intelligence Center Travel and Tourism in Russia to 2018 Page 7 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 METHODOLOGY 4.2 Methodology TTIC’s dedicated research and analysis teams consist of experienced professionals with industry backgrounds in marketing, market research, consulting, and advanced statistical expertise. TTIC adheres to the Codes of Practice of the Market Research Society (www.mrs.org.uk) and the Society of Competitive Intelligence Professionals (www.scip.org). All TTIC databases are continuously updated and revised. All Travel and Tourism reports are created by following a comprehensive, four-stage methodology. This includes market study, research, analysis, and quality control. 1) Market Study A. Standardization Definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are used for the latest completed year. These are then applied across both historical and forecast data to remove exchange rate fluctuations. B. Internal Audit Review of in-house databases to gather existing data: o Historic market databases and reports o Company database C. Trend monitoring Review of the latest Travel and Tourism companies, and industry trends 2) Research A. Sources Collection of the latest market-specific data from a wide variety of industry sources: o Government statistics o Industry associations o Company filings o International organizations o Travel and tourism agencies B. Expert opinion Collation of opinions taken from leading Travel and Tourism industry experts Analysis of third-party opinion and forecasts: o Broker reports o Media o Official government sources C. Data consolidation and verification Consolidation of data and opinions to create historical datasets Creation of models to benchmark data across categories and geographies Travel and Tourism in Russia to 2018 Page 8 © Travel &Tourism Intelligence Center. This product is licensed and is not to be photocopied Published: November 2014 METHODOLOGY 3) Analysis A. Market forecasts Feeding forecast data in to market models: o Macroeconomic indicators o Industry-specific drivers Analysis of Travel and Tourism industry database to identify trends: o Latest Travel and Tourism trends o Key drivers of the Travel and Tourism industry B. Report writing Analysis of market data Discussion of company and industry trends and issues Review of financial deals, and Travel and Tourism trends 4) Quality Control A.