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Wednesday, August 23, 2017

Hotel business in Russia strengthens its position

For the first time in many years our compatriots EN masse refused to rest abroad during the may holidays. And not sure that it will be possible to save money on summer vacation in his beloved Italy or Spain. Thus the civil servants can and would be happy to travel outside of the country, some of them do not make laws.

photo: Gennady Cherkasov

In the end, the people went to their homes. More recently unoccupied, the hotels were filled with travellers from all over the country. Markedly increased and foreign tourists, whose stay in Russia due to the weakening of the ruble significantly depreciated.

In 2016 most of the resorts, regional recreational complexes are discussing and expect the growth rates, — says CEO of Hospitality Income Consulting Elena Lysenkova. — The demand for trips to domestic resorts grew by 37%.

— The number of Russians going on holiday abroad, for two years has been cut in half. Now, even those who spend their vacation in foreign countries up to four times a year, plan a vacation out this calculation: 3 times “here” and if there will be money, once “there”, — says a leading analyst CYANOGEN Alexander Pypin. But the leave has not been canceled, so in great demand began to use domestic tourist routes and destinations in Russia and countries of Commonwealth of independent States: St. Petersburg, Nizhny Novgorod, Yaroslavl, Altai, gold ring, Minsk, Belarus, Georgia, Armenia, Astrakhan, Kaliningrad.

As for the popularity of hotel spas of the may holidays, according to Elena Lysenkova, the clear leader is Krasnodar Krai with the Big Sochi. In second place — the Crimea (especially the southern coast). Third position — from Saint-Petersburg. “The occupancy of hotels in the top 3 varies depending on activity of service of sales from 60 to 90%, — says the expert. — At the last moment sales and tariffs were the highest and the rooms were very expensive. Interest is focused on family hotels or the hotels for the company of friends. They are in high demand. Callous as it may sound, to have a rest a family with children became fashionable. Preferences in level of stardom, as before, depend on the wallet. The top 3 areas the may popular 3, 4 and 5 stars. However, and the requirements of “premium” tourists overpriced and ambitious. In other countries their pretentiousness inhibits bad language, or they are just too lazy to speak a foreign. But in the home country they do not limit”.

Experts say that the resorts popular hotels specific, not specific locations. Relatively speaking, one of two equally sought after hotels can be located in Adler, and the other in Dagomys (the distance between these points is more than 30 kilometers in a straight line).

No wonder the occupancy rate of halfway decent hotels for the holidays has reached almost 100% and formed in advance. Therefore, actively began to develop as an alternative to hotels rent segment. “Hand over the apartment to tourists, you can start faster than to build or reconstruct the building into a hotel. It is difficult to predict whether the increased demand of tourists at places of temporary stay for 2-3 years (so much need for construction of big hotels). But a small business, opening a mini-hotel for a few months could catch a wave of domestic tourism. In the summer you should expect high demand for hotel rooms, hostels, apartments in the Central part of the city in that position for a short time”, — said Alexander Pypin.

— On the background of weak ruble, administrative restrictions and falling incomes of the population decline in outbound tourist flow from Russia for the year by 20-30% looks quite realistic scenario, — said financial analyst “FINAM” Timur Nigmatullin. — However, this negative trend somewhat negates the 10-15% annual growth of inbound and domestic tourist traffic (as well as tourism in the CIS countries). The situation looks stable in the long term, barring a significant strengthening of the ruble.

Along with decreasing real income, there are other reasons of reorientation in domestic tourism: “firstly, the closure of the most popular to visit countries such as Turkey and Egypt, which during the crisis has remained affordable for most Russians. Another reason for insecurity in several European countries related to potential terrorist acts. And the third reason is the difficulty in obtaining a Schengen visa for residents of many regions of Russia in connection with introduction of mandatory procedures of fingerprinting for all travelers older than 12 years. For the first time since the Soviet Union this summer season hotels black sea coast of Russia will work with 100 percent load,”- says the owner of the travel Agency Anna Bulgakova.

— By the end of 2015, we recorded an increase in the number of compatriots who stayed in our hotels, at 27 per cent, cites marketing Director of the group of companies AZIMUT Hotels Company Elena Palchunov. But, despite the growth of domestic and inbound tourism from some countries, for example China, I would not began to speak about the growth of profitability of the hotel business. In connection with the devaluation of the ruble against the major currencies, the cost of operators has grown, and from-for falling of incomes of Russians and competition in the market hotels not can dramatically increase the rate. In this situation, hotel operators are forced to optimize their own costs, find new suppliers, to find internal reserves”.

Despite the difficult economic conditions and instability in the financial market, the hotel business in Russia continues to demonstrate sustainable development, sums up Timur Nigmatullin: “the Market of branded hotels (quality hotel rooms, typically constructed by foreign investors) in Russia in 2015 has increased by 5.1 thousand rooms. The market has changed significantly “growth points”. So, if in 2014 a driver was the Olympics (in Sochi had entered three-quarters of high-quality room stock), now those were the preparation for the world football championship-2018, and the weakening of the ruble with the corresponding reorientation of tourist flows on domestic tourism. In General, the Russian hotel market remains attractive for investment. I expect quality accommodation stock will grow steadily in the coming years. However, the difficult economic conditions still affect its growth rate: it is unlikely we will see such high rates of input as in 2014″.

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