Russia travels: new ASI and the B1 Group study uncovers main trends of Russian domestic tourism

Russia travels: new ASI and the B1 Group study uncovers main trends of Russian domestic tourism

13 July 2024
Image

The Agency for Strategic Initiatives (ASI) hosted ‘Sustainable Urban Economy and Tourism’ day on 13 July, with the results of a study on Russian domestic tourism carried out annually in conjunction with the B1 Group presented as part of the Archipelago 2024 educational retreat. The presentation was made by ASI Urban Economy Division Director Olga Zakharova. Check out the study in more detail here: asi.ru/library/vnutrenniy-turizm/200454/.

The new analytical report was prepared with the support of the Ministry of Economic Development of the Russian Federation and the Roscongress Foundation and evaluates domestic Russian tourism, comparing the situation this year with last year’s.

“The ‘Tourism and Hospitality’ national project needs feedback if it’s going to be effective. This is something President Vladimir Putin is constantly talking about. For example, this year the government approved a concept for the development of auto tourism in Russia until 2035 in light of growing interest on the part of Russians in being able to take the whole family out on a road trip. Studies of this kind make it possible to tweak national project measures right away or implement entirely new ones to create even more opportunities for travel and the development of domestic tourism,” Deputy Chairman of the Government of the Russian Federation Dmitry Chernyshenko said.

Director General of the Agency for Strategic Initiatives Svetlana Chupsheva noted how the study pointed to a growing interest in exploring our own country: “77% of those surveyed responded that they were satisfied with their travels in Russia. This national project has done much to create new infrastructure and support measures for the tourism industry, which is currently driving regional development. The results of the study will help us find better solutions and opportunities for the businesses and authorities responsible for developing tourism.”

The first joint study, Russian Domestic Tourism Barometer, took place in 2023 and captured the sentiments and expectations of travellers and industry representatives. Russia’s tourism industry is growing fast.

The study was extended into 2024 to identify trends, preferences among Russians, and the impact of support measures on business development.

According to B1 Group Head of Real Estate, Hospitality and Construction, Government and Transport Services Olga Arkhangelskaya: “Our study has shown clearly that domestic tourism continues to grow strongly. Russians are increasingly seeking new regions to explore on holiday. Demand for special services is growing, and quality of service is becoming more important. Businesses are welcoming more clients and revenue. If we are to continue to develop, there must be more investment from business and the government must work on infrastructure and make entrepreneurs more aware of existing support measures.”

Tourism continues to be a priority for state support. In 2023–2024, the industry has already received roughly RUB 100 billion in support, with more than RUB 28 billion proposed as part of a single subsidy for 2025–2027 for the regional development of tourism.

So far this year, attractions within Russian are proving the most popular holiday option, with 40% of respondents expressing an intention to spend their holidays this way, 36% looking instead to a country house or village, 80% considering a ‘weekend tour’ of the surrounding region, and 30% intending to visit a seaside resort. There has been a significant increase in interest in the Arctic, Siberia, and the Far East. In 2023, 17% of Russians planned to visit the Far East, with this figure increasing to 29% in 2024. Similarly, interest in Siberia has increased from 9% to 19% and interest in the Arctic from 9% to 21%. There is continued interest in travel abroad, especially for beach holidays, with Turkey and Egypt the most popular destinations at 23%, Transcaucasia at 19%, and the Republic of Belarus at 15%.

Service in Russia has improved, a fact reflected in rising tourist satisfaction: 62% of respondents felt that their 2023 holiday met or exceeded expectations. It should be noted that 52% of respondents expressed a belief that accommodations should be included in the Register of Classified Facilities of the Russian Federation.

The cost of travel continues to grow, a fact survey participants confirmed in the belief more standard and cheap rooms must be made available for hotels to develop (61% and 35%, respectively). 32% believed the hotel booking system needed improving and staff better training (47%). 26% of young travelers (18–24 years old) spoke of a shortage of pet-friendly rooms. Pets are an integral part of their families and often a key factor in the choice of accommodation.

The Russian President decreed 2024 the Year of the Family, and discounts and special offers have been made available for families with children in hotels across the country. Only 3% of respondents, however, planned to take advantage of these opportunities, indicating a simple lack of awareness on the part of the target audience.

There have also been positive changes in the availability of transport, with a significant increase in plane travel, from 28% in 2023 to 47% in 2024. Cars remain a popular option, with 53% of survey participants expressing satisfaction with this kind of travel. Unexpectedly, 61% of Russians showed no interest in ski holidays, highlighting a lack of awareness of the resorts and different opportunities they present to holidaymakers.

Guests and revenue have grown. According to the Ministry of Economic Development of the Russian Federation, Russian hotels enjoyed revenue increases exceeding 20% in 2023. Government support measures have contributed to the development of the industry, although awareness of programmes remains low.

Deputy Minister of Economic Development of the Russian Federation Dmitry Vakhrukov spoke of how the data from the study contributed to future planning: “The study you are holding in your hands is the work of dozens of experts combining data from two large surveys, one conducted among tourists and the other among industry professionals. The Ministry of Economic Development of Russia is creating an updated version of the ‘Tourism and Hospitality’ national project, which sets out measures of state support for the industry for the next 6 years. The study here will make it easier to draw vital conclusions and determine the next steps we need to take if domestic tourism is to continue developing.”

Representatives of the tourism industry have expressed the clear opinion that transport infrastructure needs improving. High-speed motorways, rolling stock, more modern airports, and interregional links must all be improved right now in every possible way to make travel faster and more convenient and increase tourist flows.

Roscongress Foundation Chairman and CEO Alexander Stuglev noted how many different stakeholders would benefit from the results of the study: “What you see is a study on domestic tourism in Russia. It paints an accurate picture of the Russian traveller for businesses, identifies growth points, and helps the authorities better understand how to support the industry. More people are travelling domestically every year, and business has benefited from the government’s support measures.”

The Russia EXPO at VDNH in Moscow sparked a definite interest in the country’s many and varied regions: 58% of respondents mentioned the event as something useful and interesting and expressed a desire to discover new regions within Russia, pointing to a pent-up demand for regional tourist routes.

Russia’s tourism industry is on the cusp of significant change and development. Government support and growing interest in domestic tourism are creating conditions that favour upgrades to tourism infrastructure and service. Russians are increasingly choosing to explore their own country, and we must continue to make these journeys even more attractive and accessible.