Russian Inbound Tourism Collapsed Last Year

Russia has been announced as one of the most affected travel destinations in the world amidst the global pandemic. Recent statistics have shown that inbound tourism to Russia has gone down drastically in 2020. It is estimated that in the year of 2020, tourism to the country decreased by about 70%.

The Causes of the Collapse

There are several factors that have caused the collapse of inbound tourism in Russia. Some of the main causes are as follows:

  • Travel Restrictions: As the pandemic spread around the world, most countries implemented travel restrictions to restrict the movement of people from one place to another. This greatly affected Russia‚Äôs inbound tourism as it became harder and more expensive to get to the country.
  • Currency Exchange Rates: As the value of Rubles decreased, the cost of travelling to Russia dramatically increased. This, in turn, harmed the inbound tourism sector of the country.
  • Low Demand: Due to the travel restrictions and higher currency exchange rates, not many people chose to travel to Russia. As a result, inbound tourism dropped and the demand for it became low.

How Is It Impacting the Russian Economy?

The collapse of inbound tourism has had a great impact on the Russian economy. The decrease in tourist numbers has heavily affected the businesses that depend on tourism, leading to massive job losses. According to statistics, over 20 million jobs were lost in the country due to the decrease in inbound tourism.

As the tourism sector of the country is deeply intertwined with other sectors such as the hospitality and aviation industries, the impact has been felt in these industries too. In conclusion, it can be said that the collapse of inbound tourism in the year of 2020 has been greatly detrimental to the Russian economy.

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