Russian Travel Market

 

 

 

 

 

 

 

 

 

 

 

The Russian government allocated 3.5 billion rubles to compensate canceled tours

The Russian government has allocated 3.5 billion rubles (47.7 million USD) from the reserve fund to pay compensation to tourists for canceled tours and to cover expenses of tour operators and airline companies on the transportation of Russian tourists from abroad.

Besides, the government adopted the order stating that the compensations for the tours planned till June 1 can be covered from the funds of the tour operators' personal responsibility fund which is raised by the contributions from Russian tour operators working on the outbound tourism market. Now the fund has accumulated about 1.6 billion rubles (22 million USD).

The Federal Tourism Agency recommends changing dates of tours with fixed exchange rate

The Federal Tourism Agency finds it reasonable to make a consensus between tour operators and customers regarding the postponement of tours at an exchange rate fixed at the time of purchase, said Zarina Doguzova, the Head of the Federal Tourism Agency.

Prime Minister instructed to provide tax deferral for tourism and air travel companies

Prime Minister Mikhail Mishustin gave instructions aimed at granting a deferment of taxes and insurance fees for tourism and air transportation industries, as well as providing the possibility of introducing a moratorium on filing bankruptcy petitions. So, the Federal Tax Service will send claims for tax payment not earlier than May 1.

Travel companies are temporarily exempted from paying contributions to the tourism reserve fund and personal liability funds until the end of 2020. The tourism reserve fund provides emergency assistance to Russian tourists stuck abroad due to the bankruptcy of a tour operator.

Earlier, Central Bank temporarily loosened regulatory measures for credit organizations issuing loans to travel and transportation companies regarding their risk assessment and the financial condition of borrowers.

The Association of Russian Tour Operators (ATOR) requested the government to consider the possibility of freezing payments to tourists for cancelled trips until 2022

On April 6, ATOR appealed to Prime Minister Mikhail Mishustin and Deputy Minister of Economic Development Sergey Galkin with a request to consider a new set of measures to support both outbound and domestic tourism.

ATOR drew the attention of the Government to the German practice, where the country's authorities granted German tour operators and airlines the right to defer payments until January 1, 2022 for package tours and flights canceled due to the coronavirus pandemic. The association suggests issuing a certificate of deposit to tourists, so that during this period tourists have an unconditional and confirmed right to choose any tour or service offered by a tour operator or an airline at the amount of the initial payment.

Russian travel industry is expected to lose up to 30% of travel companies

According to the Executive Director of Association of the Russian Tour Operators, about 30% of Russian tour operators and travel agencies will not be able to survive the current crisis and will stop to exist by summer. Moreover, based on the most negative scenario, outbound travel can only be restored by autumn. In the best-case scenario the outbound tourism is predicted to revive by early July.

ATOR also estimated losses of the Russian tourism sector. The travel industry is expected to lose about 25 billion rubles which is 340 million dollars.

Russian Airlines will receive a 50% discount for air navigation on domestic flights until October

The Federal Aviation Administration has approved lowering rates for air navigation services due to spread of COVID-19. Since March 17, the charge for the flights on domestic routes will be decreased by 50%. The discount will be valid for six months - until October 2020 that can stimulate domestic travel.

As for the regular and charter international flights from the Russian airports, they were stopped on March 27. The exception is made for return flights that deliver Russians located abroad after the start of the COVID-19 pandemic and foreigners who want to leave Russia for their home countries, as well as cargo, mail, medical and humanitarian flights. Now, most of the tourists have already returned home. However, the Russian authorities keep on organising evacuation of the Russian citizens from several countries.

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