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November 19, 2019

Russia subsidize tour operators for domestic travel

subsidize tour operatorsRussian Ministry of Transport and culture developed a new mechanism to subsidize the travel of tourists to the popular Russian resorts. It will enter into force next year. The subsidies from the state budget are proposed to be directed to tour operators, who will buy seats for tourist groups for regular and charter flights, as well as rail transport. As a result, the price of the package may fall by about 10%.

In the first stage, subsidies are planned to be introduced for holidays in the seaside resorts of Krasnodar and Crimea.

For the purpose the Russian government allocated about 1 billion rubles.

The mechanism was negotiated at a meeting of the two Ministries with the participation of the State Agency for Tourism of the Ministry of Culture, representatives of the sector’s business, air carriers and public organizations.

Instead of the initial idea of ‚Äč‚Äčsubsidizing airlines, it has been decided to focus the aid on tour operators offering a package including transport, stay and logistics, a transport ministry official notes. According to him, the cost of the package will be lowered and domestic tourism will be stimulated.

Such a mechanism exists, for example, in Turkey and Israel, where tour operators receive funding for each shipped tourist.

Since 2014, a state subsidy program for air transport to Simferopol (Crimea) is also working in Russia.

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