RUSSIA needs to ensure it has the right policies in place to make the most of the travel and tourism legacy presented by the Sochi Olympic Games, says David Scowsill, the CEO and president of the World Travel & Tourism Council (WTTC), the authority on the economic and social impact of the global travel and tourism industry.
Scowsill says Russia needs to have a high quality product to appeal to the international visitor. 'There is no point hosting a prestige event, at a cost of $50 billion, if the standard of hotels and ease of travel around the country aren't in step. In Sochi, for example, some of the feedback has been that hotels have not been fully ready, hotel rates have been steep and there have been problems with services such as internet access. They need to get the product right, going forward.”
Scowsill says it's also important that Russia makes it as easy as possible for international visitors to come to the country for a short amount of time; 'Russia has been making some strides at improving its visa processes recently. But its visa application processes can still be lengthy and burdensome; for example, group applications are not considered. To get to the Games, Russia's security agencies have issued special passports to all spectators to filter out potential terrorists. We hope that these policies have not put potential tourists off visiting Russia or restricted the number of spectators at the Games.'
WTTC's latest research shows that travel and tourism currently generates 4.1 million jobs in Russia (5.7 per cent of all employment) and was responsible for 6 per cent of Russia's economy in 2012 – a larger contribution than many industries including automotive manufacturing, communication services, education, chemicals manufacturing and higher education.
The new research also shows that travel and tourism is a significant source of revenue for Russia. In 2013, visitor spending in the country totalled $20.9 billion, representing 30 per cent of all service exports. Travel and tourism's contribution to the economy is expected to grow at an annual average of 4 per cent over the next decade. In comparison, the total economy is expected to expand 3.5 per cent per annum, while mining is only expected to grow by 1.2 per cent and higher education and communication services by 3.6 per cent and 2.8 per cent per annum respectively.
This makes the economic potential of travel and tourism in Russia too big to ignore. Mining has historically been a mainstay of Russia's economy but is losing significance and travel and tourism offers an excellent alternative.
In 2011, Russia's new federal tourism development programme was created to improve the image of Russia as a tourism destination, promote the national tourism product, stimulate foreign investment in the Russian tourism infrastructure and increase the competitiveness of the Russian tourism industry. In 2009, a law was passed that made it possible for visitors arriving by cruise ship or ferry to stay in Russia for up to three days without a visa. Russia has also recently cancelled visa requirements between itself and South Korea.