The State Duma has passed the first reading of a bill that revises and clarifies the concept of a ‘tour product’ and introduces distinctions in its formation for outbound, inbound, and domestic tourism. The new article, which is being added to the law ‘On the Fundamentals of Tourism Activities in the Russian Federation,’ stipulates that for outbound tourism, a tourism product will consist of transportation services from Russia and accommodation abroad, while for inbound and domestic tourism, it will consist of accommodation in the Russian Federation plus at least one additional service (transfer, transport rental, excursion services, meals, assistance with visa support, etc.).

Sergey Krivonosov, Deputy Chairman of the State Duma Committee on Tourism, pointed out in his speech that “against the backdrop of growing demand for domestic travel ... the number of “unofficial” players who do not consider it necessary to register as tour operators and insure their liability to tourists is growing rapidly, creating risks to the safety and security of tourists.” He stressed that the lack of a clear legal definition of a tourism product prevents official companies from taking advantage of benefits and imposes restrictions on the development of the industry.

The Russian Union of Travel Industry (RST) responded positively to the adoption of the bill. RST President Ilya Umansky noted: “The bill is extremely important and long-awaited. So far, it has only been adopted in the first reading and needs further refinement. There is a lot of work ahead.” The new wording of the legislation will expand the list of services that can be included in the tour package and will provide financial guarantees and tax incentives in the domestic and inbound tourism segment.

The clarification of the concept introduces a clear list of additional services that may be included in a tourism product: transport services of any kind, transfer to and from accommodation, car rental, assistance in obtaining a visa, catering services, excursion services, guide-interpreter and instructor-guide services. At the same time, the law prohibits the recognition of a package of services that includes hotel accommodation in the Russian Federation as a tourist product if such a product is formed by the accommodation facility itself, as the provider of accommodation services.

Industry experts note that the innovation could significantly ‘clean up’ the grey area of the tourism services market and protect consumers. In particular, many author-led tours, which are currently sold without registration as tour operators, will be required under the new rules to operate under the same conditions as large players: with registration, financial guarantees, and transparency.

The document will still be refined before the second and third readings, and the final version may be amended to take into account suggestions from businesses and regional specifics. If it is adopted without significant changes, the law could come into force as early as next year.