Dear Subscriber,
Although the Russian economy is not looking as healthy as everyone had hoped, many international players are using this opportunity to make large investments in the Russian market. Both Thomas Cook and TUI are in negotiations to buy leading Russian tour operators, in order to position themselves in what should be Europe's 3rd largest travel market by 2012. Whilst the mass market is likely to contract or suffer from a lack of growth in the short term, in reality the Russian market is still growing and the present economic situation is only temporary. Many national tourism boards are actually increasing their budgets for Russia, as they understand that the returns are more wisely spent in Russia than in many other places in Europe. Moreover the Russian market is more robust than other European markets, as the population has experienced several defaults in the last 15 years, making the present downturn less difficult psychologically than for their Western European neighbours, who have experienced a pro-longer period of stability and growth.
Best regards,
Helene Lloyd
Director
TMI Consultancy
News Flash
Russian Economy: Positive Future
Russia's Finance Minister Alexey Kudrin says Russia's GDP may grow again in 2010 by 2-3%.
The Russian government has postponed the creation of a new state-owned airline called Rossavia for at least a year.
Budget for Sochi-2014 Olympic Games is 70% Down
Hotel News
European Hotels Experience a revPAR Reduction
Hotels in Europe have suffered a substantial year-on-year drop in occupancy according to the latest figures from STR Global, the hotel benchmarking company.
Aviation News
United Airlines Finally Launches Moscow-Washington Flight
After the collapse of the Air Union alliance, which united several regional Russian airlines companies, the situation in the Russian aviation industry became a matter of concern for the government and under their guidance, 11 domestic carriers merged in October 2008 to create the newly formed airline called "Russian Airlines".
TAP Portugal Starts Flying Lisbon - Moscow
As of June 10, 2009, the Portuguese carrier TAP Portugal will start direct flights between Moscow and Lisbon.
Russian Aviation: Up in 2008, Down in 2009
The Russian Federal Agency for Air Transportation reports that in 2009 11.6 million passengers traveled abroad.
Market News
Where Russians Can Afford to Travel in 2009?
One of the most popular Russian travel sites, www.tourdaily.ru, held a survey asking its users which destinations they can afford to visit in 2009 taking into consideration the current economic downturn.
TMI Focus Groups Confirm Russians with Jobs Will Continue to Travel
In some recently organized focus groups by TMI Consultancy, which aimed to assess the affect of the economic down turn on the upper middle class travel habits, the following information was obtained.
Cruise and Yachting Market: No Drop in Demand
In a recent interview with the heads of leading Russian cruise companies, all companies selling cruises, confirmed the information received by TMI during a series of focus groups about travel amongst the upper middle class.
Economics
The GDP in 2009 Will Reduce by 2%
While Russia's Finance Ministry had made an optimistic forecast for 2010, GDP in January 2009 showed an 8.8% decline on a year-on-year basis.
Government Aims to Boost Banking Through Capitalization
The Russian government has allocating $15 billion to boost the capitalization of the banks, with the aim of supporting and stabilizing the banking sector.
Inflation Will Reach 15% in 2009
In January-February 2009, consumer prices in Russia have risen by 4.1%, the inflation rate reached 1.7% in February along.
Imports 34% Down, but Retail Still Afloat
According to the Russia's Central Bank, even though prices are increasing and the value of the Rouble is down almost 30% since the beginning of the crisis, consumers, nevertheless went on a spending spree in January, which results in a spending increase of 5.8% compared to last year.