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Ban on State Employee Travel Sinks Another Tour Operator

Published: August 5, 2014 (Issue # 1822)



  • "Over the first half of the year our revenues slumped 25 percent, among other reasons due to the regulation put on state employees traveling abroad," Pirogov told news agency RIA Novosti.
    Photo: Dave Heuts Photography / Flickr

The fourth Russian tour operator in just over one month went bust this weekend, said to have been toppled by, among other causes, a drastic slump in demand after the government recommended that security and law enforcement officers do not travel abroad.

This stricture, together with geopolitical tensions over Ukraine, an economic slump and a fast-weakening ruble, has resulted in a 20 to 50 percent decline in the flow of Russian tourists abroad compared to last year, depending on the destination, said Irina Tyurina, a spokeswoman for Russia's Tourism Industry Union, citing industry estimates.

On Monday, the tourism industry's troubles had drawn the attention of Prime Minister Dmitry Medvedev, who ordered his deputy Dmitry Kozak to take the situation under personal control.

"This is some kind of a breakdown, I do not remember anything like this happening before," Medvedev said, commenting on the state of affairs in the industry, the RBC news agency reported.

In July, Neva, one of Russia's oldest tour agencies, declared it was unable to meet its obligations, resulting in the abrupt cancellation of more than 6,000 active tours abroad. Two smaller companies halted operations at the end of July. And on Saturday, the biggest yet, tour operator Labyrinth, said it was suspending operations, leaving an estimated 25,000 customers stranded overseas.

Labyrinth said in a statement that the reasons for its shutdown included the falling value of the ruble against foreign currencies, and an overall negative political and economic situation. The ruble has fallen by 9 percent against the dollar since the start of the year, and by 7 percent against the euro, while the economy fights to avoid slipping into recession.

Labyrinth also blamed the recommended ban on travel abroad by employees of the state's law and order apparatus, such as prosecutors, police, tax enforcers and military personnel called in the vernacular siloviki, or strongmen.

In April, amid the mounting standoff between Russia and the West over Ukraine, Russian media reported that the government had strongly recommended these state employees to reconsider traveling abroad due to the political uncertainty.

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ALL ABOUT TOWN

Wednesday, Sept. 24


AmChams Human Resources Committee meets this morning to discuss Labor Market Trends in their office in the New St. Isaac Office Center on Ulitsa Yakubovicha. The meeting begins at 9 a.m.



Thursday, Sept. 25


Learn more about tax controls on prices at AmChams Taxation Committee Round Table Meeting this morning at 9 a.m. Vladimir I Golishevsky, Acting Head of the Transfer Pricing Department of the Federal Tax Service of Russia, will be in attendance to discuss amendments to the Russian Tax Code. Register in advance if you wish to attend by emailing all@spb.amcham.ru.


Today is the last day to check out Inventing Everyday Life. Part III: Street exhibition one of Manifestas parallel programs on at 36 Morisa Toreza Prospekt until 8 p.m.



Friday, Sept. 26


Feel yourself Spanish for a little bit at Spain Day, a celebration of all things Iberian this evening at the Derzhavin Mansion in the city center. Speak Spanish during the open classes, practice your footwork on the dance floor to the sounds of flamenco music or chow down on paella while learning more about the countrys culture.



Saturday, Sept. 27


Local KHL team SKA St. Petersburg welcomes Vityaz from the Moscow region this afternoon at 5 p.m. in a Western Conference showdown. Tickets are still available to the match and can be purchased on the teams website, at the arena or in their merchandise shop on Nevsky Prospekt.


Let Biblioteka restaurant on Nevsky Prospekt teach your children how to be proper gentlemen and ladies during Etiquette for Children, a class for children five to 11 years of age that promises to help them become the cream of society. The class starts at 5 p.m. and costs 600 rubles ($15.60). Call 322 2526 to reserve a spot for your child.



Sunday, Sept. 28


For something different, head to the African Pride Event being held by Nicks Walkabout Tours, who have also helped bring African tribal leaders for the celebration. Check Vkontakte for more information.



Monday, Sept. 29


Experience Baltic culture through the medium of drama during the Baltic House Theater Festival, which starts on Sept. 25 and continues through Oct. 13. Not only are some of the regions most famous dramatic works planned for production but the event acts as a creative laboratory for a future generation of dramatists. Check the events website for more details about the festival.



Tuesday, Sept. 30


Local neo-pagans invite all worshipers to the dedication of a new Heart Tree in Sosnovka Park, Gods Wood. 4 p.m.


The second MIFIC Expo begins today at Lenexpo, providing an interactive platform for industry experts and manufacturers. Accessories, surfaces and interior decoration materials are just some of the things that will be available for perusal at the expo, which runs through Oct. 2.



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