FOCUS ON….. RUSSIA & UKRAINE

The phrase “the Russians are coming” was used to justify all kinds of things during the Cold War, but now the Russians are welcome and a major source of tourism revenue for a growing number of countries.
Ukraine too is an expanding market, but small in comparison. When these countries were among the 15 republics making up the Soviet Union tourism operated at a very low level, mainly for escorted groups both outbound and inbound. Fifteen years since the Soviet Union’s break-up, tourism has been transformed like the rest of the economy.
ITTFA members the Moscow International Travel & Tourism Exhibition (MITT) and the Ukraine International Travel & Tourism Exhibition (UITT) share in that growth. The lessons that destinations are learning from the growth in Russian visitors can be put to good use as Ukraine becomes a major growth market.

Last year’s MITT, the 13th, attracted a total attendance of nearly 97,000, making it one of the top five tourism fairs worldwide. Trade visitors totalled nearly 70,000 and of the 2500 exhibitors, 64 countries took pavilions, totalling a representation of 111 countries & regions worldwide. The 16 Russian regions represented showed a growing focus on the inbound market too.
MITT and UITT are organised by ITE Travel Exhibitions, and senior event and sales manager Frédérique Maurell is also the new president of ITTFA.
“The Russian outbound market has always been the strength of MITT, as Russia has created a high spending class of traveller as well as a growing middle class,” says Maurell. “The market started to develop with sun and beach holidays mainly to the Mediterranean, but the Middle East and long-haul destinations are now growing rapidly.”
Figures from the UN World Tourism Organisation show that the Russian outbound market grew by over 18% in 2005 after spectacular 66% growth in 2004, making it the third fastest growing market in the world after China and India. Russians were also rated the ninth biggest spenders in the world, and even higher for retail (duty-free) purchases.
A major talking point at MITT is the reciprocal visa requirement which exists between Russia and most other countries, including the EU. This holds back both the outbound and inbound markets, and as it can take several weeks to get a visa to visit Russia, late bookings are virtually impossible.
“The countries that have gained most from the outbound market are those that have reduced or abolished the visa requirement, including Dubai, Morocco and Egypt among others,” says Maurell.
“The Russian inbound market has a tremendous potential but to achieve its high returns, Russia needs flexibility with visas, a better choice of tourist class hotels, and stronger worldwide promotion.”
Ukraine, in contrast, has abolished visas for many countries including the EU, and is starting to feel the benefits. UITT attracted 25,000 visitors to Kiev last year with 850 companies exhibiting from 54 countries.
Russians make over 28 million outbound trips a year, but Ukraine is not far behind with 15 million. Although many of these are to neighbouring countries, the potential is clear.
“As with Russia, the Ukraine market has started with sunshine trips,” says Maurell. “But niche markets are now developing in both countries – including meetings, spa, and tourism for medical reasons or cosmetic surgery.”