Russians Increase Foreign Holiday Spending: Top Destinations Revealed

Russians are significantly increasing their spending on foreign holidays, with the Central Bank reporting a remarkable outlay of $5.46 billion in July 2023 alone. This figure marks the highest monthly expenditure since the Bank of Russia started publishing monthly foreign trade statistics in 2018. The surge in travel spending highlights a shift in consumer preference towards international destinations amidst a slowdown in domestic tourism.

Türkiye has emerged as the most favored destination for Russian travelers, attracting 2.83 million tourists from May to September 2023. This influx represents 58% of all travel company sales, according to the Association of Tour Operators of Russia (ATOR). In contrast, Egypt ranked second, capturing only 15% of the market share during the same period.

The trend of increased foreign travel comes as domestic tourism in Russia has decelerated this summer. The Russian Union of the Tourism Industry (RST) indicated that bookings across the country grew by a mere 1.1% from June to August, a stark contrast to the 15.3% growth experienced in the same months of 2022. RST head Ilya Umansky described this shift as a “correction in demand” following several years of rapid growth.

Factors contributing to this trend include the strengthening of the Russian ruble against foreign currencies, making vacations abroad more appealing. Umansky also pointed to high inflation rates and an “abnormally cold summer” in central and southern Russia as additional reasons for the sluggish domestic tourism.

Another emerging trend is the explosive growth in interest for travel to China’s southern Hainan resort. Following Beijing’s announcement of a visa-free travel program for Russians, which began on September 15, 2023, demand for trips to this destination has surged. The program will operate on a one-year trial basis.

Russian President Vladimir Putin has characterized the visa waiver initiative as “a very significant step,” indicating that Russia intends to reciprocate by offering similar privileges for Chinese visitors. This potential bilateral travel agreement could further enhance tourism flows between the two countries.

As the landscape of international travel shifts, it remains to be seen how these trends will evolve and what impact they will have on both foreign and domestic tourism sectors in Russia.