Named the worst month in the history of the Russian hotel market

April 2020 was the worst month for the market of hospitality industry in Russia for all history of its existence. About it “Interfax” said the head of the division of the hospitality industry of strategic consulting division at CBRE Tatiana Belova.

In particular, she said, “if in the previous three years the hotel market of Moscow ranged from 73-78% in April 2020, the rate on the market dropped to a critical 8% (a reduction of 70 p. p., or 90%)”.

Moreover, the expert pointed out, the decline in segment varies from 85% to 94%. Least the download in April showcased luxury segment — less than 5%.

Recall that previously, the Federal tourism Agency appealed to the heads of all subjects of the Russian Federation with a request to provide financial support and to provide benefits to regional tourism. According to the letter signed by the head of the Federal tourism Agency Zarina Doguzova, currently turnover decline of tourism has reached 95-100%, and the amount of lost revenue has exceeded 1.5 trillion roubles because of the restrictions imposed in the fight against the pandemic coronavirus infection COVID-19.

the Minister stressed that in the midst of the crisis was the facilities that require regular significant capital investments, including hotels, Congress centres, boarding houses, rest houses, motels, resorts, cruise ships.

prior To this, the Association of tour operators (ATOR) in the framework of joint work on formation of the list of measures on support of tour operators, hotels, resorts and cruise ship industry sent Doguzova their proposals. In particular, experts called for the repeal of the property tax (land and property), and payments for rent of land for resorts and hotels for the period until the end of 2020 and a 50% discount for 2021.

in addition, ATOR is asked to reduce social contributions from 30% to 15% of full wage until the end of 2022 (currently, the decision on decrease of the amount exceeding MMOUTH) and extend the program of grants for payment of salaries (12.3 thousand rubles for April and may) to all actors in the affected sectors (including companies, non-SMEs).

last Friday, the HSE analysts stated that due to pandemic coronavirus infection COVID-19более thirds of the employees of the tourism industry in Russia lost their jobs. According to the survey, about the loss of jobs, said a third of employees in the tourism industry (36.8 per cent), one fifth of hotel employees (21.9 percent) and services (19,8%).

Meanwhile, the President of the Russian Union of travel industry (PCT) Andrey Ignatyev believes that the country’s tourism industry is back on coepidemics amounts for services not earlier than through 1,5-2 years. He stated that tour operators are unable to meet their obligations to provide service to clients in 70 billion roubles on the domestic flights and 112 billion rubles at the exit. Ignatyev pointed out that the industry has suffered because of the pandemic, very much: “This we never had, for 30 years after the Soviet era, when tourism started to work in new conditions”.

let’s Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

21 April the Russian government announced that the value adopted by the Cabinet of Ministers of measures to support the economy already amounted to 2.1 trillion rubles. Prior to that, head of the Ministry of Finance of the Russian Federation Anton Siluanov said that the budget measures for combating coronavirus and its implications in Russia is about 2.8% of GDP. In General, the total volume of fiscal support to citizens and business of all sectors in termss pandemic coronavirus, the Ministry of Finance was estimated at 6.5% of GDP.

may 11, Russian President Vladimir Putin announced the end of may 12, a single period of days off, entered March 30, in the fight against COVID-19. He also announced the beginning of implementation of the third package of anti-crisis measures, under which the state, in particular, will increase targeted support for families with children, small businesses, individual entrepreneurs and self-employed. In addition, Putin instructed the government to prepare a national plan for long-term development of the economy, the recovery in employment and incomes.

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