Opportunities for Foreign Investors in Russia’s Tourism Industry
The Russian government has just allocated US$320 million for the development of tourist infrastructure for 2019 until 2022, according to Prime Minister Dmitry Medvedev.
Medvedev was quoted as saying: “I signed a government decree, whereby we will allocate subsidies for establishment of supporting infrastructure of tourism clusters in 22 regions. The federal budget provides in total for these purposes about 21 billion rubles (US$320.1 million) for this year and the next two years. Russia has very good opportunities for development of tourism but normal conditions have not been established everywhere. Appropriate programs for various national projects have been provided to improve the situation.”
In particular, Russia is targeting ecological tourism, to be developed under the Ecology national project. “New comfortable hotels, camping areas, restaurants and car hire should appear in 24 clusters at the expense of the government support – that is, normal and full-fledged tourist infrastructure should appear,” Medvedev said. “Regional authorities need to repair existing facilities, bring communications into order, provide transport access to sights of interest for tourists and make them normal and civilized, so that our people and foreign citizens have a desire to come and spend time there. All that should be done with attention paid, proper prioritization and efficiency money management.”
Russia receives about 25 million foreign tourists a year; however, in light of the success of last year’s World Cup Football Finals, this is expected to grow. Much of the required tourism infrastructure was upgraded for that event, with growth expected in all areas. Foreign businesses interested in exploring the potential for provision of services in Russia’s tourism industry may contact us at russia@dezshira.com.
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Russia Briefing is produced by Dezan Shira & Associates. The firm advises international businesses on investing, setting up businesses and administering them throughout the Eurasian region, including Russia, China, India & ASEAN, and maintains offices and partners in each of these countries and regions. For assistance with investing in Russia, or for Russian businesses wishing to invest in Asia, please contact Maria Kotova at maria.kotova@dezshira.com or visit us at www.dezshira.com.
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