Page 91 - RusRPTAug19

9.1.9 Tourism sector news
The Russian government has ambitious plans to invest around $1.6bn in the next few years to attract more tourists and become one of the world’s top 10 travel destinations. The latest incentives include eased visa restrictions and tours off the beaten track, AFP writes. Nearly 25mn tourists visited Russia last year, making it the world’s 16th most popular destination, according to the World Tourism Organization. They largely came from the ex- Soviet bloc and China and mostly visited Moscow and St Petersburg. A year after the country successfully hosted the soccer World Cup, Russia is looking for new ways to attract international visitors with the goal of more than doubling tourism revenues to $25bn by 2035. “Young people will now be able to see Russia in a way their parents could not,” Maya Lomidze, executive director of the Association of Russian Tour Operators (ATOR), told the French news agency. Russia’s rich cultural heritage and its spectacular scenery ranging from subtropical Black Sea resorts to Siberia’s Lake Baikal and the volcanoes of Kamchatka make the country an obvious draw for visitors. But the difficulty of obtaining visas, a lack of contemporary-style accommodation and transport links outside the main cities still put off many visitors.
Prague was one of the three most popular foreign destinations in the first half of 2019 for Russian tourists, according to the bookings of major online ticket sales service Biletix. In January-June, Prague (5% of all international Biletix international bookings) was second only to Tbilisi (the capital of Georgia in the first place from 7.8%) and the Armenian capital Yerevan (5.4%) in terms of bookings.
Ironically Russia has recently banned flights to both Prague and Tbilisi. In the summer of 2019, the volume of bookings of air tickets to Prague increased by 85% compared to the same period last year, Biletix notes. The company explained this by the fact that the average round-trip check from Russian cities to Prague decreased by 20%: from almost 16,000 rubles to 12,700 rubles.
The average depth of booking air tickets to the Czech Republic in 2019 was 49 days, the average length of stay was 9 days. Russians are not only using direct flights, but are also ready to fly to Prague with transfers, Biletix notes. The most frequent transit points are the airports of Helsinki, Riga and Istanbul. Most often, tickets to the Czech Republic are booked by people in the age group of 30–35 years (16%), living in Moscow (38%) and St. Petersburg (13%).
9.1.10 Utilities sector news
The Russian government extends support for renewable energy until 2035. Kommersant reports, quoting minutes from the government meeting chaired by Deputy Prime Minister Dmitry Kozak, that the government has decided to prolong the support scheme for renewable energy for 2025-35. According to the paper, the projects are to receive 15 years of guaranteed return, with project selection taking place via auctions (due over 2020-30), while the main selection criteria would move away from the minimum capex bid to a minimum lifetime cost of electricity (LCOE), for, which the government would provide a ceiling. The maximum LCOE curve would be such that it would reach net grid parity with the then-prevailing wholesale electricity price by 2036. Among additional requirements, the government notes demand for strict enforcement of the requirement for 100% localisation of equipment used
91 RUSSIA Country Report August 2019 www.intellinews.com