RussianFederationHotelSectorThrivingDespiteEconomic.pdfVIP

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 12/7/2015 GAIN Report Number: RFATO027 Russian Federation Post: Moscow ATO Hotel Sector Thriving Despite Economic Slowdown Report Categories: Agricultural Situation Agriculture in the News Agriculture in the Economy Approved By: Erik W. Hansen Prepared By: ATO Moscow Staff Report Highlights: The devaluation of the Russian ruble in 2015 has had a positive impact on hotels in Russia. Foreign visitors have benefited from the ruble depreciation and domestic travel has served as a main driver of growth in the industry. In the first three quarters of 2015, Russia experienced double-digit growth in hotel occupancy and in Revenue per Available Room. The current geopolitical situation has led to a decrease in tourists from Europe and the United States but the tourist flow from Asia, particularly from China, has been growing. General Information: Executive Summary The devaluation of the Russian ruble in 2015 has had a positive impact on hotels in Russia. Foreign visitors have benefited from the ruble depreciation and domestic travel has served as a main driver of growth in the industry. In the first three quarters of 2015, Russia experienced double-digit growth in hotel occupancy (+16.5 percent to 69.7 percent) and Revenue per Available Room (RevPAR) (+27.9 percent to 3,574.12 Russian rubles). Average Daily Rates (ADR) in the country was up 9.8 percent to 5,128.55 rubles. In addition, Sochi, a holiday destination, reported increases of 25 percent in occupancy and 40.9 percent in ADR. During the first nine months of 2015, 13 new hotels operating under international brands opened in Russia. A difficult economic situatio