Russia attracts international tourists thanks to cheap ruble

Despite geopolitical tensions that have pushed Russia-Western diplomatic relations to a low, the number of foreign tourists to Russia this year has hit a record high since 2008.

Red Square in Moscow

According to CNBC, the weak ruble (RUB) helped the Russian tourism industry "jump", increasing 13% in the first 9 months of this year, although geopolitical tensions have affected diplomatic and trade relations between this country and the West.

According to the Russian Tourism Industry Association, 2.53 million international tourists visited Russia from January to September 2015. This is an unprecedented number since 2008. This year, the Chinese have surpassed the Germans to become the most frequent visitors to Russia. The number of Chinese tourists visiting Russia increased by 63% compared to a year ago.

Vladimir Kantorovich, first vice president of the Russian Association of Travel Agents, told Russian news site Kommersant that the ruble’s depreciation has helped boost international tourism to the country. “For many people, Russia has become a very cheap destination,” he said.

Notably, the number of Iranian tourists has also exploded, increasing by 111% in the first nine months of this year. Iran is now among the top 15 countries with the most tourists visiting Russia.

Americans were the third-largest group of visitors to Russia last year, followed by Turks, despite both countries having strained diplomatic relations with Russia. Washington has been impatient with Russia’s alleged influence on separatists in Ukraine, while Ankara has been snubbed by Moscow after Türkiye shot down a Russian warplane last month.

However, the real impact of the event will not be clear when the full-year figures are released. The Russian Tourism Industry Association also said that the country will not see such positive figures next year. Russia has ended the visa-free regime for Turks, which had been in place since 2011.

The USD has risen 20% against the RUB since January, and has risen 113% against the RUB over the past two years as tensions in Ukraine began in early 2014. The report from the tourism association also indicates that international arrivals can be expected to increase until around 2017, as Russia prepares for the 2018 World Cup.

In contrast, Dutch tourists to Russia fell sharply by 23% to 19,200 after the MH17 tragedy, which many believe was shot down by pro-Russian separatists.

The good news for Russia's tourism industry comes as Russians are cutting back on foreign travel due to a weak currency. Inflation in Russia is running at 15%. The Federal Tourism Agency said in June that the worsening economic crisis had caused a 30% drop in foreign trips in the first quarter of this year alone as many Russians opted for stay-at-home holidays.

According to thanhnien.vn