Overview of Tourism in the Russian Far East

June 2006

Prepared by Andrey Vasenev, BISNIS representative in Khabarovsk

Summary

The Russian Far East possesses a range of favorable factors for successful tourism development. The region’s recreation resources are enormous. Its immense territory offers potential for varied tourism types from environmental, hunting, extreme to business and scientific. At the same time, the tourism infrastructure is underdeveloped and the lack of investment and knowledgeable specialists hinders further development of the sector.

Tourism Development in the RFE

The Russian Far East has favorable conditions for tourism development. These include geographic position and the proximity of Asian countries. According to the Russian Far East and Zabaikalye Interregional Association for Economic Cooperation, the geographic, environmental, cultural, historic and social-economic differentiation of the region contributes to tourism development. The landscapes vary from arctic deserts in the north to cedar and broad-leaved forests with subtropical flora and fauna in the south. The ecosystems include arctic, mountainous, forest, river, lake, marine, island, and volcanic. The region’s tourism resources also include nature preserves and parks, rare animal species and plants, and cultural and historic sites. The region possesses some tourism infrastructure, including transportation system and services (hotels, restaurants). In many areas, investments in the tourism sector may be a profitable undertaking.

Tourism Development in the RFE during 1998-2004

Year	1998	1999	2000	2001	2002	2003	2004
Volume of tourism services provided (mln rubles)	13.8	56.1	381	943.5	552	877	1,295
Total tax payments (mln rubles)	12.8	35.4	98.9	235.9	263.4	246	230
Number of tourist companies	392	440	509	635	549	736	715
Number of people employed in the tourism sector	1,776	2,607	2,465	6,319	4,639	6,881	6,909

Source: Russian Far East and Zabaikalye Interregional Association for

Economic Cooperation

At the same time, there are major negative factors hindering further development of the region’s tourism sector. Severe climatic conditions and frequent extreme phenomena are one issue. Also, the region’s transportation, power, environmental, market and social infrastructure, as well as services, sectors are underdeveloped. The tourism services available are often of low quality. The tourism sites (museums, historic, cultural and architecture sites) are frequently underdeveloped. The lack of a federal strategy for tourism sector development is another problem.

Source: Russian Far East and Zabaikalye Interregional Association for

Economic Cooperation

Khabarovsk Krai

Development of inbound and internal tourism is a priority area for the Khabarovsk Krai tourism sector. One of the region’s priorities is environmental tourism. The most promising types of tourism include ecotourism, ethnographic and extreme tourism as well as sports and adventure tours (hunting, fishing, rafting). The Krai’s location creates favorable conditions for inbound tourism from Northeastern Asia (China, Japan, and South Korea), as well as servicing of the transit flow to the western and northern territories of Russia. Krai tourist companies currently offer 45 travel routes.

As of January 1, 2006, more than 150 enterprises were providing licensed tourism services in the Krai. More than 20 companies specialize in inbound tourism. Three tourism associations are currently registered in the region: the Regional Association for Tourism Promotion, Asian-Pacific Representation of the Russian Union of Tourism Industry Enterprises, and the Interregional Association of Independent Tour Operators of the RFE.

During 2005, 29,420 of foreign tourists visited Khabarovsk Krai (a 17.1% increase over 2004). China, Japan, and South Korea traditionally supply the largest number of travelers. Tourists from Germany, USA, and Canada also account for a significant share.

Amurskaya Oblast

Amurskaya Oblast hosts 619 potential tourist sites that include such features as ancient settlements, archeological sites with fossils, cave drawings, and the RFE’s largest museum of natural studies. There are 35 nature reserves, and three federal preserves are located in the Oblast. There are over 20 rivers suitable for rafting and sports fishing. Amurskaya Oblast travel agencies offer tours and visits to Zeyskiy, Khingagnskiy and Noskiy Reserves, Muravyevskiy Park, Zeya and Bureya Hydropower Plants, Amur and Zeya rivers cruses and rafting tours, hunting and fishing tours, etc. Some 47 companies offer tourism services in the Oblast. Nine of them are licensed to conduct group tours to China without visas. The tourism sector employs over 500 people.

About 30 percent of the Oblast tourism companies specialize in inbound tourism offering over 50 travel routes. Two-three day long tours for Chinese visitors constitute 50 percent of inbound tourism. Proximity to China determines the Oblast’s focus on tourism exchange with the country. During 2005, the number of Oblast residents traveling to China grew 1.8 times compared to 2004 and totaled 68,000 people. At the same time, the number of Chinese visitors fell 60 percent due to cancellation of the one-time international passport procedure.

During 2005, the volume of tourism services provided by the Oblast grew two times and totaled $7.6 million. In order to promote tourism development in the region, Amurskaya Oblast Administration designed a target program for development of tourism and tourism-recreation areas in the Oblast up to 2010.

The underdeveloped tourism infrastructure—limited number of hotel rooms, poor hotel service, and high transportation costs—is a restraining factor for the increase of the inflow of foreign tourists in the Oblast. Poor road network limits access to the Oblast’s tourism resources.

Source: Russian Far East and Zabaikalye Interregional Association for

Economic Cooperation

Jewish Autonomous Region

Jewish Autonomous Region (JAR) possesses large ecotourism resources. The most valued sites include Kuldur Natural Park, Bastak National Preserve, lotus lakes, caves, archeological sites, and more. Fourteen tourism companies operate in the region. People’s Republic of China is the JAR’s primary tourism partner. The number of JAR residents traveling to China increases annually, rising from 4,351 people in 2003 to 16,796 people in 2005. However the number of Chinese traveling to JAR fell considerably from 12,166 in 2004 to 7,247 in 2005. Chinese tourists fancy information and business tours to develop foreign economic activities.

JAR tourist companies seek to expand the number of travel routes offered, as well as the quality of services provided. According the travel companies evaluation, the opportunities for inbound tourism are becoming greater. During 2005, the region’s enterprises provided $370,000 worth of tourism services (1.7 times increase).

Sakha Republic (Yakutia)

The most popular tourist routes in the Sakha Republic (Yakutia) include cruises to the Lenskiye Poles, hunting and fishing tours, “Cold Pole” (Oimyakon and Verkhoyansk) visit, deer relay tours, rafting, etc. Some 50 percent of tourists come to Yakutia during summer months, 20 percent – during spring, 20 percent – fall, and the remaining 10 percent during winter. The primary share of tourists comes from Germany, Japan, USA, France, China, Finland, Switzerland, and Spain.

Yakutia Government launched a program for tourism development for 2003-2006. The overall volume of investment for the program implementation is 43 million rubles ($1.6 million), including 33 million ($1.2 million) from the Republic budget and 10 million ($0.4 million) from the federal budget. In 2006, Yakutiya plans to expand the flow of inbound tourists to 8,000 and increase profits to 332.8 million rubles ($12.3 million).

Primorsky Krai

Recreation resources of the Primorsky Krai begin with exotic nature sites. Variety of the animal species provides opportunity to develop hunting and fishing tourism. The Krai possesses immense capabilities for sanatorium-type and health-focused tourism. Further development of the sector in the Krai requires establishment of a larger tourism infrastructure. Today, a number of large complexes for active recreation and world-class health centers are being created in the region.

As of January 1, 2006, nearly 270 tourist agencies and companies operated in the Krai. During 2005, Primorskiy Krai tourism companies provided 280 million rubles worth of services. The Krai has a relatively well-developed hotel and restaurant infrastructure. Approximately 80 hotels operate in the Krai, over 20 of them in Vladivostok; there are 233 catering enterprises and over 130 recreation centers. The tourism sector is recognized as the priority sector in the Krai economy. The share of the tourism industry in the gross regional product is 3 percent. Development of international tourism is stimulated by expansion of the international flights, cruises, and establishment of the new crossing points at the Russian-Chinese border.

During 2004, 195,000 people from over 50 countries (China, South Korea, Japan, USA, Canada) visited Primorsky Krai on tourist visas. Comfortable cruise vessels from Japan, Norway, and other countries call on Vladivostok seaport annually. The Krai’s tourism sector currently enjoys 4th or 5th place among Russia regions for the number of tourists.

Prospects for RFE Tourism Development

According to research conducted by the Russian Far East and Zabaikalye Interregional Association for Economic Cooperation, development of RFE tourism is likely if a competitive and highly effective tourist complex can be formed. The tourist complex would involve various tour operators along with associated services such as transportation, services, trade, advertisement and printing, etc. Such a complex would need to provide quality services to 5 million Russian and foreign tourists. Some RFE regions would be able to host from 500,000 to 1 million tourists annually ensuring a 10-15 billion rubles input in the gross regional product. Assuming the improvement of infrastructure and services, the volume of tourist services in the Russian Far East may increase 4-5 times by 2010 and 8-10 times by 2020 transforming the sector into one of the leading sectors for selected regions. The Association emphasizes the need to promote improvements in tourism-related legislation, create tax remissions for companies engaged in development of the priority tourism areas, and offer benefits for investors in the sector. Another important issue is development of the unified RFE tourism information base and promotion materials.

Contacts:

BISNIS in Khabarovsk

18 Muravyeva-Amurskiy Street, office 401

Khabarovsk 680000, Russia

Tel./Fax: (7-4212) 306-421 or cellular: 650-690

Email: bisnis@vasandr.kht.ru

Contact: Andrey Vasenev, BISNIS representative

Khabarovsk Krai Ministry of Economic Development and Foreign Affairs

19 Muravyov-Amurskiy Street.,

Khabarovsk, 680002, Russia

Tel.: (7-4212) 329 739 or 325-544

Fax: (7-4212) 322-253 or 328 397

Email: econ@adm.khv.ru

www.adm.khv.ru

Contact: Alexander B. Levintal, Minister

Tourism Department of Ministry of Economic Development and Foreign Affairs of the Khabarovsk Krai

72 Frunze Street, Khabarovsk, 680002 Russia

Tel.: (7-4212) 32-71-65, 32-85-97, 32-72-80

Fax: (7-4212) 32-72-80

E-mail: tur@adm.khv.ru

www.travel.khv.ru

Asian-Pacific representative office of Russian Union of Travel Industry Enterprises (RUTI)
15 M.Amurski St., Khabarovsk, 680000,Russia
Tel. (7-4212) 42-04-50
E-mail: dvtkt@mail.ru

Regional Association for Promoting Tourism Development
134 Tikhookeanskaya Street, office 431, Khabarovsk, 680042, Russia
Tel. (4212) 35-80-71
E-mail: tourism@del.ru

Interregional Association of Independent Tourist Operators of the Far East (IAITO)
1-а Sovetskaya street, Khabarovsk, 680000 Russia
Tel./fax (4212) 34-10-92, 32-88-95, 34-69-66
E-mail: fareast@safari.khv.ru
www.iaito.com
www.mant-dv.ru

Voyage Ltd.

123 Volochayevskaya St., Khabarovsk, 680000 Russia

Tel./Fax: (7-4212) 32-39-12, 32-57-98 / (4212) 30-47-15

E-mail: postmaster@voyage.khv.ru

http://www.ru-voyage.com/

JSC “WELCOME”

82 Dzerzhinski St., office 73, Khabarovsk, 680000 Russia

Tel./Fax: (4212) 78-33-44 / (4212) 78-33-44

E-mail: welcome@gin.global-one.ru

http://www.welcome.khv.ru/

World Wise Ecotourism Network - http://www.traveleastrussia.com/

A good web site about travel to Yakutia is at http://www.yakutiatravel.com/eng/main.htm

For more information on the Russian Far East, visit BISNIS online at http://bisnis.doc.gov/bisnis/country/fareast.cfm

BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov).