Leaving rouble trouble behind

As the rouble stabilises, Russian holidaymakers are starting to return to Asian shores again, reigniting industry expectations for the comeback of a significant source market.

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After Russia’s outbound tourism industry took a tumble following the economic and political crises in recent years, the trade is finally seeing the first shoots of recovery from the bruised market.

Pointing to the stabilising Russian rouble, Artem Alekseev, CEO of Ros Business Travel in Russia, said he saw at least a 10 per cent recovery in his business this year compared with 2015.

He explained: “There are still a lot of people who want to spend time and money travelling out of the country, and we see that the economic situation is becoming more stable now, which gives Russians confidence to travel again.”

Likewise, Viacheslav Akaevich, director of Russia-based Samolet, who observed outbound business picking up in the past six months, said: “There are signs that our people want to travel again and of course we hope the situation will get better. It is already a good sign to see the currency becoming stable.”

Akaevich shared that 30 per cent of his bestselling destinations are in Asia, with a majority in Thailand and Indonesia – especially beach destinations like Phuket and Bali. He is also looking to discover new beach spots in the region to raise greater interest among Russian travellers.

A more favourable outlook of the Russian travel market is also spurring optimism among Asian tour operators and hoteliers on the ground.

Diethelm Travel Thailand general manager Victor Mogilev is hopeful of closing the year with 12 to 15 per cent growth in the high-end Russian market which the company had traditionally focused on.

“We believe it is mainly due to the Russians accepting and adjusting to a new economy back in Russia,” Mogliev said, adding that the rouble has risen to about 65-70 to the US dollar compared with 35 two years ago.

“And of course another factor is the continuous growth and promotion of Asia as a region in light of (Russia’s) ongoing tension with Europe and the US,” he added.

Also witnessing a “slight bounce back of the Russian market” is Catherine Racsko, general manager of Sheraton Nha Trang Hotel & Spa.

“Compared with Russian arrivals in 2015, which were down, this year we received an increase in the figures for the same period (in 1Q2016),” she said. “The increase in charter flights to Vietnam also saw Russian guests rise 13.5 per cent in 1Q2016 (according to the Association of Tour Operators of Russia).”

Likewise, Do Thu, director of sales and marketing for Evason Ana Mandara, Six Senses Ninh Van Bay & Six Senses Con Dao, stated: “Russia has rebounded strongly to reclaim its place as (Vietnam’s) biggest source of European visitors. Nha Trang shows an increase of Russians year on year, however, the majority are on charters with package accommodation, which normally use bigger branded hotels and resorts.”

C9 Hotelworks’ managing director Bill Barnett said Thailand has seen a “modulated recovery” after the Russian market bottomed out in 2013, but the numbers are still “nowhere close” to what they once were.

However, he expects the number of charter flights into the country to rise through the peak season starting from November. And with Russian charter flight passengers spending an average of 12 nights in Thailand, they are much more valuable than Chinese tourists who stay for an average of just over two, Barnett opined.

Although not in the clear yet, industry players are positive that Russia will rebound and thrive again as a major source market for the region, and are seeing signs of a silver lining emerging from the crisis – particularly in the form of well-heeled Russian holidaymakers choosing Asian destinations again.

Julia Lukyanova, director of sales in Corona Travel Russia, said: “It was the middle-class travel segment that was killed the most (by currency slide). The upper premium class are still travelling and in fact this market even grew by five per cent, while the middle class one dipped by 35 per cent in 2014.

“Of course there have been some cost considerations so these luxury clients have reduced their accommodation from five- to four-star hotels, and reduced their length of stay from 14 to 10 days,” she continued, noting the changes in travel preferences within the high-end segment.

Svetlana Kamenkova, leading specialist of corporate and business travel department in Luxe Travel Russia, said cost remains the top priority for her clients, and exotic experiences in Asia like Bali and Lombok are products she is keen to promote again.

As well, rising from the Russian economic turmoil is a new travel class, one that is showing signs of maturing sophistication.

Andrew Carroll, global head of sales and marketing, Exotic Voyages, remarked: “We have noticed a rise in returning Russians. However, this is different to recent years and more in line with the ‘original’ Russian guests 10 years or more ago – those who are willing to spend more and who are demanding luxury, quality and service.”

Providing further reminder of the importance of Russian tourists, Corona Travel’s Lukyanova said: “Russians are good clients because they spend a lot of money and they are still travelling – they should not be forgotten.”

The Tourism Authority of Thailand is projecting a turnaround in the Russian visitor market in 2016. Following a record 1.7 million arrivals in 2013, the number of Russian visitors to Thailand plunged to 884,000 last year. This year, Thailand is expecting one million tourist arrivals from Russia, a 13 per cent rise from 2015.

Additional reporting by Marissa Carruthers and Michael Sanderson

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