- Title: RUSSIA: Russian holidaymakers blame politics for tourist firm's collapse
- Date: 5th August 2014
- Summary: MOSCOW, RUSSIA (AUGUST 5, 2014) (REUTERS) EXTERIOR OF BANKRUPT TOURIST FIRM 'LABIRINT' / PEOPLE QUEUING OUTSIDE 'LABIRINT' FIRM SIGN VARIOUS OF PEOPLE OUTSIDE BANKRUPT TOURIST FIRM WOMAN DRAGGING SUITCASE ALONG ROAD (SOUNDBITE) (Russian) TOURISM MANAGER, OLGA, SAYING: "It's the political situation in the country and probably somebody's big personal material interests (tha
- Embargoed: 20th August 2014 13:00
- Keywords:
- Location: Russian Federation
- Country: Russia
- Topics: Business,Industry,Politics
- Reuters ID: LVABBO9FGU7KHYLDTPUD4HASGXZE
- Story Text: Russian holidaymakers blame country's internal and external politics for tourist firms collapse.
Russian holidaymakers on Tuesday (August 5) blamed the country's internal and external politics for tourist firms collapse, citing situation around Ukraine as one of the reasons.
Itar-Tass reported on Tuesday that the IntAer travel operator had become the latest to fold, stranding about 500 holidaymakers abroad. The company blamed "a sharp fall in demand and purchasing power and the rise in the exchange rates of foreign currencies and the negative political situation".
Around 15,000 tourists are stuck abroad following the collapse of a larger Labirint holiday firm. Industry officials have promised customers will be compensated from insurance policies which the companies had to take out.
For tourism firms' directors and managers this is no solution, however, to a wider problem in the industry and in the economy.
"It's the political situation in the country and probably somebody's big personal material interests (that caused the collapse). Nothing depends on us, ordinary people, as in (tourism) agency directors, managers, or just people who were dreaming of a holiday," Olga, a manager of a firm that has been affected by the collapse, said.
"Economy and what is going on in our country and in Ukraine (is to blame), it is the economic situation in our country," a director of another affected firm, Yelena, said.
"This is either done so that people forget about places like Turkey, Italy and (spend time) at our resorts and in Crimea, or this is done by somebody who wants to take over the market, these are the two options," tourism manager Vasily said.
Russians have been increasingly taking holidays in countries such as Greece, Croatia, Bulgaria, Turkey and Egypt. However, the rouble has fallen about 9 percent this year against the dollar due to the slowing economy and the effects of the crisis in relations with the West, forcing up the cost of foreign trips.
The head of the Russian Culture and Tourism ministry Vladimir Medinsky said that the reasons for the collapse were purely economic, shrugging off suggestions that this could be the effect of the economic sanctions imposed by the West.
"There are simple economic reasons, such as competition, dumping, the absence of insurance, and greediness. Greediness. You know, experience shows there is no such thing as worldwide conspiracy, there's only greediness and stupidity," Medinsky said at the news conference on Tuesday.
Minister of resorts and tourism of Russia's Krasnodar region Evgeny Kudelya, who also participated in the conference, said that the government was offering all the affected tourists to spend a week in Sochi for free.
"Krasnodar region is ready to host all those who were affected (by tourist firms collapse). The accommodation including breakfast is free for up to seven days. To answer the question of how we are going to compensate for that, it is very simple, the answer is on the surface: every tourist, apart from just living (in a hotel), spends money on excursions, in cafes, restaurants. We will be able to easily compensate for these expenses and Sochi will accept many more tourists. The city has big potential after the Olympics," Kudelya said.
While Russia's tourism industry has struggled since the fall of the Soviet Union, Russian government has saw the Olympic Games, that took place in Sochi in February, as a chance not only to refurbish its image in the eyes of Western visitors but also to breathe new life into an industry with huge potential, turning it into a destination for tourists all year around, offering sea and snow, new hotels and a theme park. - Copyright Holder: REUTERS
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