Russian Union of Travel Industry compares impact of coronavirus and exchange rate on demand

Yuri Barzykin, Vice President of the Russian Union of Travel Industry (PCT), believes that the situation with the coronavirus is the main factor that affects the decrease in interest in the tourist product. The depreciation of the ruble is an additional cause of delayed demand.

" We have an average sales decline of 25 percent. However, in some areas, such as the United Arab Emirates, there is even a slight increase.”

In his opinion, the collapse of oil and stock markets affected the ruble exchange rate and will be an additional negative factor affecting demand in the tourist market, but the main obstacle, until about June, will remain the coronavirus.

Barzykin believes that for inbound tourism, the ruble depreciation can be positive, since prices in Russia will be profitable against the dollar.

“Already now some tour operators <...> offer to minimize the down payment for the tour package and introduce additional options <...> a new clause is introduced into the contract with the tourist, which states that if the selected country is included in the list of countries for the coronavirus, then the tourist is guaranteed a refund of 100 percent.”

According to Barzykin, the number of tourists who completely canceled their tours and wanted to return the money, in total, less than those who want to postpone the trip. He hopes that during the week there will be certainty in the foreign exchange market and tourist demand will recover.

We need not to waste time, but to actively offer new products, options and destinations, so that the tourist has a choice.

Source: ria