ISSN 0798 1015

Vol. 39 (Nº22) Year 2018. Page 10

The main directions of stimulating the development of inbound tourism in the Russian Federation

Las direcciones básicas de la estimulacióndel de sarrollodel turismo de entrada en la Federación Rusa

Ivan P. KULGACHEV 1; Natalia A. ZAITSEVA 2; Anna A. LARIONOVA 3; Elena V. IVANOVA 4; Vladimir A. GLADILIN 5; Viacheslav N. ZHENZHEBIR 6

Received: 02/02/2018 • Approved: 05/03/2018

Contents

1. Introduction

2. Methods and Materials

3. Literature Review

4. Results and Discussions

5. Discussion

6. Conclusion

Bibliographic references

1. Introduction

All countries of the world are making great efforts to attract foreign citizens as tourists. This gives an additional impetus to the development of the economy, the creation of new jobs, the inflow of foreign currency, the increase in incomes and, as a consequence, the improvement of the living standard of the tourist destination, the protection and restoration of monuments, and the development of the hospitality industry.

Revenues from international tourism grew threefold from $ 415 billion in 1995 to $ 1 trillion. 220 billion US dollars in 2016. As before, the share of the United States in revenues from international tourism (17.2% in 2016, in 1995 - 18.9%) remains high today. Seven-mile steps to develop inbound tourism and as a result of income from international tourism have made the countries of the North-East (China, Hong Kong, Macau, Taiwan), Southeast Asia (Thailand, Vietnam, Singapore) and Oceania (Australia, New Zealand). However, in the last three years (2014 - 2016), the growth in revenues from international tourism remains generally on the same level. The stagnation of world economic development, foreign policy factors in the form of the "Arab Spring" and, as a consequence, the flow of refugees into the developed countries of Europe, a series of terrorist acts (France, Belgium, Germany) are affecting.

Established at one level, the total amount of income from international tourism does not mean its stability in a number of regions of the world. Thus, in the last three years (2014 - 2016), there has been a significant decline in revenues from international tourism in France (by 27.3%, minus $ 15.866 billion), Italy (by 11.5%, minus $ 5.242 billion, United Kingdom (by 14.9%, minus $ 6.924 billion), Turkey (by 36.6%, minus $ 10.809 billion) and a number of other countries in the European continent and North Africa (in Egypt, the drop in revenues from international tourism is 2.6 times).

At the same time, in the countries of the South-East and Oceania, revenues from international tourism are growing. The leader in revenue growth is Thailand. From 2014 to 2016, the growth of revenues from international tourism in this country amounted to more than 29.8% (+ $ 11.453 billion). Significantly added income from international tourism India, Australia, Vietnam, New Zealand, Sri Lanka (UNWTO, 2017).

Preferred earlier by the Russians, the tourist countries of Turkey and Egypt lost significantly in revenues from those factors, conditions and circumstances that occurred in 2014. The Russian Federation also did not escape losses from the current economic crisis, sanctions from the US and a number of its allies, as well as fierce competition for the international visitor from competitors.

In the framework of this study, methods of economic-statistical and factor analysis, expert assessments, economic-mathematical modeling, and others were used.

The study of key issues in the development and adaptation of quantitative and qualitative indicators of the competitiveness of the hospitality industry is based on the use of the following sources of information: Tourism Market Trends UNWTO, UNWTO World Tourism Barometer, The Travel & Tourism Competitiveness Report 2007 and 2017, The Federal Service of State Statistics of Russia, statistical yearbooks from 1996 to 2016, materials of scientific conferences, other scientific publications on the problems of the development of inbound tourism in the Russian Federation.

In the current conditions of intensive development of tourism in the whole world, a clearer definition of the concept of "inbound tourism" becomes more relevant. Let's consider the basic scientific and theoretical approaches to the definition of the concept of "inbound tourism" (Table 1).

Table 1
Basic scientific and theoretical approaches to the definition of the concept of "inbound tourism"

Thus, according to Table 1, it can be seen that basically these scientists consider outbound tourism as travel of people permanently residing in one country, but traveling with some purpose to another country, for example, in the Russian Federation "outbound tourism" is a journey on the Russian Federation of people permanently residing outside the territory of that country.

4. Results and Discussions

4.1. The role of Russia in the development of world tourism

It should be noted that, according to UNWTO, the share of inbound tourism to Russia in the global tourist flow is decreasing. If in 2000 it was 2.48%, then in 2016, respectively, 1.99% (Table 2).

Table 2
The statistics of inbound tourism to the Russian Federation according to UNWTO,
Rosstat on the basis of data from the Federal Border Service and calculated in
accordance with the Official Statistical Methodology for estimating the number
of entry and exit tourist trips [7]

Note: * The number of foreigners arriving in Russia, total;
** number of foreigners who arrived from abroad;
*** number of foreign nationals from CIS countries (near abroad)

Based on the simplified UNWTO calculation methodology, which is based on the assumption that each incoming international tourist spends $ 1,000 in the host country, the income of $ 7 billion 788 thousand for 2016 is quite consistent with the number of arrivals in Russia's international visitors from non-CIS countries 7 million 862 thousand (Rosturizm, 2017). Summary data on income from international tourism according to UNWTO data for several countries, including the Russian Federation, are presented in Table 3.

Table 3
Income from international tourism according to UNWTO
(world, individual countries and the Russian Federation) (UNWTO, 2000-2017)

The data of Table 3 show that in recent years, Russia is losing its position in the international tourism market, which results in a decrease in the country's income from this type of tourism.

4.2. Evaluation of the development of inbound tourism in the Russian Federation

The state is actively trying to influence the development of domestic tourism, including inbound tourism. The evidence of its positive steps are: the adoption of the federal target program "Development of domestic and incoming tourism in the Russian Federation (2011-2018)" and the allocation of 96 billion rubles from the federal budget (the amount of allocated funds will ultimately be significantly lower than those announced in connection with annual sequestration); strategies for the development of tourism in the Russian Federation (2013-2020); a number of instructions of the President of the Russian Federation on the development of tourism. Currently, the new federal target program "Development of domestic and incoming tourism to the Russian Federation (2019 - 2025 years") is under preparation.

Table 4
The number of foreign citizens: who entered Russia, arrived in Russia for tourism,
served by Russian tour operators, placed in hotels and similar accommodation
facilities in the period 2010 - 2015

The declared priorities and their practical implementation at the state level played a positive role. The number of incoming citizens from both the far-abroad countries and the CIS countries to the Russian Federation has grown significantly (an increase of about two million). The dynamics of international arrivals with tourist purposes also had a growth trend (+ 506 thousand arrivals in 2013 compared to 2000).

4.3. The main directions of development of inbound tourism in the Russian Federation

On the basis of the conducted research, it can be concluded that for the development of inbound tourism and as a consequence of increasing income from it, solving social problems of employment and increasing the income of the population, it is necessary to implement a number of basic measures (Figure 1.)

Figure 1
The main measures for the development of
inbound tourism in the Russian Federation

As can be seen from the Figure 1, the first set of measures for the development of inbound tourism in the Russian Federation is the development of motivation for visits to Russian tourist destinations, above all, by their compatriots. Therefore, it is necessary to create conditions for its domestic tourists (Kulgachev and Romanov, 2016), then foreign ones too. For example, the park "Patriot" appeared without any federal program to support the development of tourism. And already become a center of tourist interest not only for our citizens, but also for tourists from China, Mongolia, the CIS countries.

Secondly, it is necessary to reorient the priorities for the distribution of financial flows at the federal and regional levels to hold mass sport events for the organization of Russian leisure. Russia in the lead-up to the football mundialya in 2018 builds football stadiums and DAC, which in some cities after its holding will not be fully in demand. Not all adult citizens are sports fans. Children prefer to watch cartoons about fairy-tale characters. But adults and children, and the absolute majority of parents are guided by the desires of their descendants, want to spend their free time in places that bring them joy and satisfaction, and so that this visit can be repeated. Business embodies children's dreams in the construction of theme parks. Economically developed countries "yesterday" built modern "Disney lands", which are an invariable success for family holidays and not only on weekends. Will there be something to prevent Russia from building after the World Cup soccer theme parks for recreation of Russians, using, including the administrative resource of power, the issue of the near future.

The third direction of the development of inbound tourism in the Russian Federation is the formation and promotion of exclusive and unique tourist routes. An exclusive tourist itineraries: religious tourism programs - SergievPosad (Holy Trinity St. SergiusLavra); Kazan (the "Kul Sharif" mosque), etc.); medical tourism (the resorts of the Stavropol Territory may well be competitors to the world-famous resorts of Baden-Baden and Vichy), which may not give huge tourist flows, but they should and will give stable tourist arrivals (stable incomes) are necessary, as well as unique ones that are not under the power of anyone in the world to repeat. Currently, the project of the theme park "Russia" and "wanders" around Moscow, and another project "Ussuriysky Tiger" is still sleeping and no one wakes it, and Chinese investors are ready to invest money as in a promising "start-up".

The fourth direction in the development of inbound tourism in the Russian Federation can be indicated the change in understanding by authorities, business structures and public organizations in the tourism sector that tourism "does not go by itself alone" and is not a systemic element in the system of market services. The complex of exclusive and unique (and (or) other) services provided in the tourist destination is often not enough to form a sustainable motivation and stable tourist flows due to the lack of a world-class tourism infrastructure. Therefore, it is advisable for the authorities to use the opportunities to attract capital of companies with state property for the development of high-speed rail services, a network of highways that provide comfortable delivery of air passengers to places of tourist attraction, bypassing cities of many millions.

The fifth direction of the development of inbound tourism in the Russian Federation, according to the authors of the article, is the formation of the country's image as safe for all arriving guests. The Russian Federation is ranked 109thin the rating "The Travel & Tourism Competitiveness Index" by the criterion "Safety" at the present time (The Travel & Tourism Competitiveness Report, 2017). In fact, it is not easy to convince a foreign initiative organizer of consumer tourism that Russia is safer for travel than Brazil or South Africa, let alone France or Spain. Mass media of foreign countries do not stint on news, showing both terrorist acts and ongoing operations to eliminate militants in the North Caucasus, and environmental problems (annual forest fires in Russia). Simultaneously, the Russian media, in their work to raise the ratings, tend to focus their efforts on coverage of accidents, crimes, on what will be discussed first. All this does not contribute to the formation of the image of the country's attractiveness, which is ready to receive annually more than forty million of foreign guests.

The issues of supporting the development of tourism are widely studied all over the world. In particular, they are considered in the works of A. Bull (2010) and R.N. Kaul (2009). However, in these works little attention is paid to the problems of tourism development in countries against which international sanctions are imposed, which always negatively affects the image of the country.

The authors of this article have already considered the problems of the development of domestic and outbound tourism (Kulgachev et al., 2017a; Kulgachev et al., 2017b; Kulgachev et al., 2016; Zaitseva, Goncharova & Androsenko, 2016; Vinogradova et al., 2016; Saenko et al., 2017; Larionova et al., 2017, Semenova et al., 2017) after 2014, when the Russian Federation was introduced various political and economic sanctions.

However, the issues of developing inbound tourism and the importance of developing this direction for the Russian Federation have not been systematically examined so far. The importance of the results of this study also lies in the fact that measures are reasonably and comprehensively described, the implementation of which at the federal or regional level will contribute to the development of inbound tourism in Russia.

6. Conclusion

As a result of the study, the following conclusions can be drawn:

1. Inbound tourism to the Russian Federation throughout the post-Soviet period has not undergone significant changes and remains at a relatively low level. The main regions that host foreign tourists are the cities of federal significance Moscow and St. Petersburg. The main motivation for visiting foreign international visitors is cognitive and business tourism and participation in mass events of world level.

2. When considering the growth algorithms of arrivals of international tourist arrivals around the world and international visitors to Russia, one has to state the following:
- according to UNWTO statistics, the number of international tourist arrivals worldwide increased from 1,880 to 1,8 times (from 674 million to 1 billion 235 million) between the years 2000 and 2016, and to Russia by 1,45 times (from 22 million to 32 million);
- Russian official statistical information on the previous methodology of counting the incoming tourist flow shows the stagnation of international tourist arrivals in the period from 2000 to 2014 (ranging from 2 to slightly more than 2.5 million arrivals). The number of foreigners arriving from non-CIS countries tends to increase from 7.4 million arrivals in 2000 to 7.88 million arrivals in 2016 (the peak value of arrivals of foreign citizens was observed in 2010 - 10.8 million arrivals) which is also lower than the global rates of increase in the dynamics of arrivals;
- The newly adopted system for calculating international arrivals  for tourism in the new methodology marks their growth to 24.55 million (10 times compared with 2014 when calculated using the previous system of counting). 16.69 million tourist arrivals fall to the countries of the near abroad, which does not correspond to the actual state of affairs, since mainly these are citizens arriving in Russia to visit relatives (more than 8 million tourists from Ukraine ) and employment. According to the official statistical information, up to 2015, the tourist interest towards Russia from citizens of the CIS countries remained at a consistently low level. The dynamics of the arrival of compatriots with tourist purposes in the recent past, as a percentage of the total number of entry of international tourist visitors, ranged from 14.7% in 2000 to 6.8% in 2014.

3. There is a paradoxical phenomenon: in spite of the sanctions imposed by the experts of the World Economic Forum in 2017 (The Travel & Tourism Competitiveness Report 2017), the Travel & Tourism Competitiveness Index has been determined by the United States and its partners on the 43rd place (2007 - 69th place (The Travel & Tourism Competitiveness Report 2007), the high purchasing power of foreign currencies contributes to the formation by the initiative tour operators of foreign countries of a competitive entry tourist product to Russia; States to ensure freedom of movement in most of the country, including such promising tourist areas as the Far East, Sakhalin, the Kuril Islands, the Urals, and the North of Russia should ensure the progressive growth of arrivals of international visitors, where in the Soviet era, the way was closed for foreigners - However, revenues from international tourism in Russia are not added. Revenues from international tourism in relative prices (excluding the deflator) throughout the world increased in the period under review from $ 445 billion (1999) to $ 1 trillion. 220 billion US dollars (2016), i.e. almost three times. Russia stopped at the turn of about 8 billion (7.8 billion US dollars in 1999, which corresponded to 11 places in the world and 7.788 billion US dollars in 2016 - 33 places in the world).

4. The experience of holding the Winter Olympics in the city of Sochi shows that the forthcoming football mundial of 2018 will only short-term increase the number of international arrivals from far-abroad countries. To increase the inbound tourist flows to Russia, it is necessary to form the motivation for visits to domestic tourist destinations, first of all, its citizens, creating unique and exclusive routes, improving the tourist infrastructure. When there is something to look at, where to restore physical and spiritual forces on condition of comfortable arrival and departure to a place of rest and a tourist show, then international tourist arrivals and incomes from international tourism will grow.

5. The cardinal change in the counting of incoming international visitors, introduced by the central executive body in the field of statistics, led to this official statistical information being used by UNWTO in its annual official reports. However, this did not add transparency in analyzing the real state of incoming tourism to Russia. The new methodology (Order of the Federal State Statistics Service of August 12, 2014 No. 510), taking into account the specifics of traveling citizens from the countries of the near abroad (in the vast majority it is trips to work) to Russia, does not disclose the actual provision on the status of inbound tourism. This unsolved problem shows the need to optimize the statistical recording of international tourist arrivals in Russia.

6. The tendency that entry tourist flows are largely dependent on foreign policy factors has been found. Sanctions from the United States, Western countries and other allies, Russia's retaliatory measures, and the russophobic company conducted by the mass media under its control, do not contribute to the growth of traveling citizens of these countries across Russia. This makes Russia turn its eyes to travelers from Asian countries, as potential consumers of the Russian tourist product.

It can be concluded that the results of the study can be used by both Russian and foreign organizations that are considering the prospects for the development of inbound tourism to Russia as a country favorable for tourism and travel, as well as by the initiative tour operators of foreign countries oriented to outbound tourism of their citizens and receptive domestic travel agencies.

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1. Department of Hospitality, Tourism and Sports Industry, Plekhanov Russian University of Economics, Moscow, Russia. Contact e-mail: kulg-ivan@yandex.ru

2. Department of Hospitality, Tourism and Sports Industry, Plekhanov Russian University of Economics, Moscow, Russia.

3. Department of Economic Security, Audit and Controlling, The Kosygin State University of Russia, RUSSIA (Technology. Design. Art) Moscow, Russia.

4. Department of Service, Tourism and Hospitality Industry, Don State Technical University (DSTU), Rostov-on-Don, Russia.

5. Department of Economics, Management, Finance and Information Technology of the Stavropol Branch of the Moscow State Pedagogical University, Stavropol, Russia.

6. Department of Management, State and Municipal Management, Moscow State University of Technologies and Management named after K. G. Razumovsky (First Cossack University), Moscow, Russia.