BUSINESS

Cabinet Says Yes to Long-Term Tourist Plan

By Alla Startseva

Staff Writer

MOSCOW - The cabinet has approved a three-year concept for tourism development aimed at boosting the number of foreign visitors, partly by easing the visa process and halting the loathsome practice of seizing undeclared foreign currency at customs upon leaving the country.

Tourism could attract billions of dollars in revenue while requiring less capital investment than other industries, Prime Minister Mikhail Kasyanov said Thursday.

"It is time to look closely at how the government can encourage the development of tourism, what is to be done by regional authorities and what kind of signal we could send to private business," Prime-Tass quoted Kasyanov as saying. Unlike other countries, Russia has neglected this industry, he added.

Some 18 million Russians visited foreign countries and eight million foreigners visited Russia last year, according to government estimates, which Kasyanov said amounts to just 1 percent of the tourism industry worldwide.

Russia spent only $140,000 last year on promoting tourism, while other countries spend upward of $40 million, Interfax reported Kasyanov as saying.

The Economic Development and Trade Ministry drew up the concept, with the Labor Ministry, Culture Ministry, Foreign Affairs Ministry and other state bodies contributing.

"It's great that the government finally recognized tourism," said Helene Lloyd, marketing director of the Tourism, Marketing & Intelligence consulting company.

The first hurdle to be jumped to develop the industry is the issue of visas, Lloyd said, adding that "complicated procedures and general lack of coordination" are the biggest problems.

According to the concept, visas will be easier to obtain for residents of countries whose citizens are unlikely to stay illegally. Furthermore, the cost of entry visas will be reduced.

"The state must earn not on the cost of visas, but on additional services given to tourists while in Russia," Interfax quoted Deputy Economic Development and Trade Minister Vladimir Strzhalkovsky as saying.

Furthermore, the cabinet ordered the State Customs Committee to stop seizing undeclared hard currency at customs when visitors leave the country, with Strzhalkovsky calling this one of the worst problems for the Russia's tourism climate.

The concept names Moscow and the Moscow region, St. Petersburg and northwest Russia, Kaliningrad and the Golden Ring as major tourism centers and priorities for development.

Development could start in Moscow and St. Petersburg as soon as visa problems are solved and a public-relations campaign is implemented, said Lloyd of Tourism, Marketing & Intelligence. But the rest of the country must start from scratch by building tourism facilities.

Russia is now the 13th most popular tourist destination in Europe, the Economic Development and Trade Ministry said. Experts have noted a gradual growth in tourism, saying that by 2020 Russia will be fifth in Europe after France, Spain, Britain and Italy.

Poles visit Russia in the largest numbers, followed by Finns, Germans, Chinese, Americans, Italians and Latvians. According to money spent, Japanese tourists are the highest spenders at $300 a day, followed by the Spanish, French, British, Canadians and Americans.

More stories by this section:

Report: Finances Clearer But Still Not Perfect | High-Speed Rail Link Faces Court Action | IN BRIEF

Or take part in the discussion below.