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Exploring the Far East: New Business Opportunities in Tourism
4 September 2019
17:15—18:45
KEY CONCLUSIONS
Tourism is one of the leading industries in the Far East economy

Tourism in the Far East is growing rapidly. <…> Growth rate in the past year amounted to 22.6% <…> Making the Far East more accessible for both Russians and foreign guests is a primary task we set for ourselves. We need the tour flow to grow at least fivefold — Olga Golodets, Deputy Prime Minister of the Russian Federation.

International tourism takes the third place after chemicals and petroleum. <…> In terms of growth rates, the Far East is number one, outperforming such successful regions as Moscow, St. Petersburg, or Sochi — Olga Arkhangelskaya, Partner, Head of Real Estate, Hospitality, and Construction Services, Head of the Transportation, Infrastructure and Government, and Public Group in the CIS, EY.

The Far East is becoming more attractive for foreign carriers and tour operators

Vladivostok is the nearest foreign city to Tokyo <…> Our company becomes a locomotive <…> for the transport development of the Far East — Yoshiharu Ueki, Chairman of the Board of Directors, Japan Airlines.

The economic sector we approached last year is cruising <…> Vladivostok should be a part of it too — Choi SeungHwan, Chief Executive Officer, Hanchang Co., Ltd .

ISSUES
Lack of infrastructural development

What matters most is that we increase accessibility of the national parks, reserves, and historical points of interest so that the tourism becomes substantial — Olga Golodets, Deputy Prime Minister of the Russian Federation.

Lack of ports of call in Asia <…> is a problem that starts affecting the market dynamics — Valeriy Nagorny, General Director, Vladivostok Sea Terminal .

Airports should welcome long range flights <…> cruise ships have to get serviced somewhere <…> We need to untangle customs and military issues <…> reasonable compromise between safety and tourism development still hasn’t been found — Sergey Bachin, Rosa Khutor General Director.

Checkpoints at peak hours are (overloaded – Ed.) far beyond their planned capacity. On-land is our priority for quite some time now — Konstantin Shestakov, Director of Tourism Department, Administration of the Primorsky Krai .

Low quality of service

Rich tourists want to come here but there’s no places for them to spend money at <…> That’s a problem — Choi SeungHwan, Chief Executive Officer, Hanchang Co., Ltd .

There are common problems, like launching individual training programmes for interpreters in Kamchatka and Sakhalin — Evgeniy Chudnovskiy, Director General, Airports of Regions .

Lack of organized promotion for the Far East as a brand

There’s no centralized promo campaign, no content, no strategy (for the Far East – Ed.) apart from typical clichés — Taras Demura, General Director, TUI Russia.

The problem is that the Russian Far East brand is completely unknown in North America — Mark Dudley, Regional Director, InterPacific Aviation and Marketing, Inc..

Environmental tourism is one of our priorities <…> This potential is evidently underused — Zarina Doguzova, Head, Russian Federal Agency for Tourism.

Imperfection of state support

State support matters. Right now, it’s very convoluted, there’s too many aspects that don’t help but rather get in the way — Olga Tkacheva, Deputy General Director for Strategic Development and Marketing, Flotiliya.

Expensive air travel for Russian tourists

Without additional state support we can’t provide access because it’s just too far away. The price of a plane ticket matters, we need to support and subsidize that. Many airports (of the Far East – Ed.) are closed tonight <…> and that primarily hits the charter flight operators. They need coverage <…> to briung the costs down <…> One of our more focused tasks is to take off this edge — Evgeniy Chudnovskiy, Director General, Airports of Regions .

SOLUTIONS
Optimizing state support

We’re coming up with a new business development strategy, where the Far East plays a special role. We’re going to allocate federal funding to support a whole number of projects in the Far East — Olga Golodets, Deputy Prime Minister of the Russian Federation.

Our brand-new approach is to send as much federal funding as possible to the investment project that are supposed to directly influence the development of tourism in our country — Zarina Doguzova, Head, Russian Federal Agency for Tourism.

There’s an entire array of support measures <…> that influence tourism. They include simplified visa procedures for citizens of 19 countries, subsidizing flights to the Far East, nulled profit tax for hotels, advanced social economic zones and the free port regimens, package tours to the Far East — Olga Arkhangelskaya, Partner, Head of Real Estate, Hospitality, and Construction Services, Head of the Transportation, Infrastructure and Government, and Public Group in the CIS, EY.

Pretty much every region has an export centre <…> on the local level to support small companies together with tourist ministries — Roman Glushak, Head, Representative Office in the Far East Federal District, Russian Export Centre.

Update the infrastructure

General country-wide development plans include reconstruction for nearly all airports in the Far East <…> In the next 2 to 3 years the Far East will see its airport infrastructure increase dramatically — Evgeniy Chudnovskiy, Director General, Airports of Regions .

It’s important to build in clusters in the Far East. <…> As an infrastructure company that also builds, we are ready to invest but only in public-private partnership — Alexander Romanov, Executive Director, Infrastructure Financing Division, VTB Capital .

Apart from being a tourism commodity, the infrastructure protects the ecosystem <…> We’re trying to create an infrastructure that can accommodate countless number of tourists without damaging the environment — Sergey Aramilev, General Director, Amur Tiger Centre Autonomous Non-Profit Organization.

Using digital technology to promote the region

We have very particular plans to transform the industry digitally based on the available resources <…> Before we create convenient quality digital content about the country everything is going to be very difficult — Zarina Doguzova, Head, Russian Federal Agency for Tourism.

Digital technologies in tourism is an area where Russia can win very quickly. It’s a continuous work with the society and there are competences and resources for it — Alexander Idrisov, President, Strategy Partners Group.

The material was prepared by the Russian news agency TASS