"We are observing the renaissance of Russian resorts": executive director of ATOR Maya Lomidze on measures to restore tourism

- How are the participants of the Russian travel market experiencing the

pandemic

- It is obvious that the Russian travel industry is in a different reality compared to the previous year: most of the destinations are still closed, and some travelers, against the background of a difficult epidemiological situation, still find themselves from long and distant trips.

These factors negatively affect the profit of this segment.

At the same time, during the pandemic, all resources of the industry were mobilized, which allowed many of its participants to survive the crisis without significant losses.

Since the beginning of March, several niche companies have left the market that were engaged in certain local areas.

At the same time, more than 4 thousand legal entities continue to work and plan to continue to engage in tourism activities.

It should be noted that private travel agencies, which were intermediaries of tour operators, turned out to be less resistant to the crisis.

After the abolition of quarantine, from 3 to 6 thousand points of sale did not open throughout the country.

This was an independent decision of the companies in view of the general decrease in demand for travel tickets.

However, their withdrawal from the market did not lead to negative consequences for tourists.

They fulfilled all their obligations to clients.

- During the pandemic, the Russian government launched a number of programs aimed at supporting key sectors of the economy, including tourism.

Which of these tools have become the most in demand among businesses?

- The decree on the postponement of obligations to tourists has become a key instrument.

We are talking about contracts that were concluded before March 31, 2020.

These slackenings gave the industry the needed breathing space to keep market players afloat.

The government's initiatives aimed at popularizing recreation in Russia and direct subsidies to market participants also helped.

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• © Vitaly Timkiv

- On October 15, the second stage of the cashback program for trips across Russia started in Russia.

Why, in your opinion, did the authorities decide to extend the initiative?

Do you expect more demand for tours?

- The first stage of the program showed itself well and to a certain extent allowed the operators to make up for the losses that arose against the background of restrictive measures.

At the same time, the action lasted only a week, so the economic effect of the program was limited.

Now the authorities met us halfway and increased the term of the right to cashback until December 5.

At the same time, Russians will be able to travel on New Year's holidays.

These conditions are expected to significantly boost demand for domestic tours during the low season.

In the first days of the start of the second wave of cashback, operators recorded that the demand for tickets increased by 68% compared to the same dates last year.

Such dynamics signals that Russians are ready to travel within their country, and a 20% discount allows them to do so on a profitable basis.

- According to your forecasts, should we expect the extension of the program in 2021?

- We are in favor of continuing the action at least for the next year.

Its action has a multiplier effect: on the one hand, it helps the industry, which employs millions of people, to recover faster from the effects of the pandemic, and on the other hand, it allows Russians to indulge in travel, despite the decline in real income during the crisis.

For these reasons, tourist cashback promotions, in our opinion, should become one of the permanent measures to support domestic tourism.

- What are the preferences of Russians now?

Where do citizens most often travel within the country?

- On average in the market, the depth of bookings (the period between the date of booking and the date of arrival) is currently small and amounts to 2-2.5 weeks.

Firstly, now is traditionally a low season for the market, and, secondly, clients are afraid of introducing new restrictive measures in their place of residence or in the chosen resort.

At the same time, the demand for package tours for New Year's dates is growing significantly.

Most of the properties in Krasnaya Polyana, Crimea and Altai Territory have already been purchased.

Of the new destinations, Veliky Ustyug and Baikal are popular, which by the end of the year may for the first time enter the top 10 most visited places in the country.

This is largely due to the current charter programs, which allow keeping reasonable prices for the flight.

Thus, this year we are witnessing the rebirth or renaissance of Russian resorts.

- Since August 2020, Russia has begun to restore international air traffic with some countries.

How does the market react to the gradual opening of some destinations?

- Market players welcome the opening of any new external directions with enthusiasm, as this leads to an increase in bookings and sales.

Even Serbia, previously unpopular with Russians, has become in demand after the resumption of flights.

Of course, the sales volume is not comparable with the last year, but still at least partial opening of the borders brings profit to the tourism industry.

Moreover, the resumption of international flights has a positive psychological effect on consumers: they stop refusing to travel both outside the country and within it.

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• © Konstantin Mikhalchevsky

- What other countries can become available to Russians already this winter season?

- To open an external direction, it is important to fulfill two criteria.

The first is the number of cases in dynamics per 100 thousand people of the population.

The second is the principle of reciprocity, that is, the state must declare its readiness to receive foreign tourists.

Thus, the principle of reciprocity is already working in relation to the Dominican Republic, whose authorities are waiting for Russian citizens.

We hope that if the epidemiological situation stabilizes, the country will appear on the list of states allowed for Russians to enter this winter.

At the same time, according to polls, citizens are very much looking forward to the opening of resorts in Southeast Asia, but the prospect there is still not so clear-cut.

- When can we talk about the resumption of inbound tourism to Russia?

- From January 2021, citizens of 52 countries will have the opportunity to visit Russia with an electronic visa.

The list includes the key "suppliers" of tourists to Russian resorts - China and European countries.

This is an unprecedented step that the tourism market has been waiting for over the years.

Although the growth rate of inbound tourism is still limited by the difficult epidemiological situation in the world, we expect that the gradual opening of Russia to foreign travelers will begin in March-April 2021.

In this case, the industry's recovery from the effects of the pandemic may accelerate significantly.

- When, in your opinion, will the Russian tourism market return to pre-crisis indicators?

- Further market recovery will largely depend on the dynamics of the incidence of COVID-19.

With a positive option, a return to pre-crisis indicators will be possible in the second half of 2021.

At the same time, closed borders remain a negative factor for the market, which impede the full development of the segment.

Therefore, in such an unstable situation, the industry would not be hurt by government support in the form of cutting rental costs and reducing the tax burden.