Hotel and hospitality industry services
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Hotels and hospitality are an expanding industry in Russia. Hotel buildings, equipment, accessories, consumables, support services, staff recruitment & training and promotional services such as brand franchising are all in demand. High end restaurants have been hit hard by the decline in the Rouble and the reduced number of foreign business visitors to Moscow. This business is in decline.
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The hotel business outside Moscow is in a much healthier state. There is a shortage of three star and higher accommodation throughout the provinces. It is also creating a demand for services to train and support hotel managers. When exploring opportunities for clients, the first question we are usually asked is, "How can I find skilled staff and resources to train the others?"
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Leisure destinations
The low value of the rouble will lead to a surge in leisure visitors to Russia and thus a further stimulus to the hotel business. There are opportunities for inbound tour operators to develop new destinations based on existing Russian tourist flights to Western Europe.
Summer tourismRussian summers are hot and long, with temperatures routinely in the mid 30's. To serve local summer tourism, Russia has an infrastructure of spas and holiday bases, particularly at good fishing sites near large rivers.
As the world's largest country, Russia offers many outdoor sports. As destinations, these locally focused facilities are suitable for specialist tour operators. Subtropical Sochi features. The new high speed train makes it possible to travel from the sea to the ski slopes within 30 minutes. It boasts attractions, events and tens of thousands of hotel rooms. |
City tourism gives rise to opportunities in the travel industry. The capital cities, Moscow and Saint Petersburg, are already well established international tourist destinations with a great depth of culture. Other places are also attractive as tourist destinations. Volgograd (previously named Stalingrad), was where the battle that marked the turning of the Second War War in Europe, took place. The twin city Saratov and Engels has a major aerospace museum and was the place where Yuri Gagarin (the first man in space), trained and landed. |
Winter sports
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The new international airport, high speed train links (connecting with the subtropical coastline in 20 minutes), greater ski lift capacity and vast new residential complexes have created a major new destination which was very popular in 2015.
Other new ski resorts are being developed on the Northern side of the Caucasus mountains. |
The long Russian winter has lead to the development of winter sports facilities across the country.
The highest mountains in Europe are the Caucasus Mountains in southern Russia. Krasnaya Polyana, in the Caucasus Mountains, was the site for the 2014 Winter Olympics. |
EventsThe Russian tourist ministry is developing event tourism, and recognises that it will take time for the natural and cultural attractions of Russia to became internationally recognised.
The Winter Olympics was held in Sochi, which has now been chosen to host the Russian Formula One events up to the year 2025. The Rugby World Sevens were held in Russia and the FIFA Soccer World Cup will be in 2018. FIFA requires a series of new 4 star hotels to be built for the many host cities. |
Kazan, the oil-rich capital of one of the Republics within the Russian Federation, is making a major effort to attract event tourism by building new sports stadiums, and some of Russia's first multi-story car parks, to manage congestion. The world Student Games were held in Kazan.
The White Nights in St Petersburg has long held many artistic, musical and creative events. A new production at the Marinsky Ballet company always attracts a world audience, who book flights and reliable branded hotels, and dine out. The Russian marriage boom is continuing. |
Business travel
Business travel within Russia is booming. Occupancy rates in the major provincial cities are at almost 90%. The switch from importing to local manufacture will not alter this trend although local hotel brands will probably gain share at the expense of international brands. New conferences centres are developing in attractive locations outside Moscow, like St Petersburg, Samara, Ekatrinburg and some Spa Towns. |
To serve the demand, new hotels are being built by international brands and small, single, city-based Russian hotel groups, and many older hotels are refurbishing. In 2011, 450 new hotels were built, offering a total of 70,000 new rooms.
At Volga Trader, we help clients develop their hospitality industry portfolios. We help our clients with investment, acquisition and import in the Russian tourism market, especially outside Moscow where the majority of the local industry is based. |