MOSCOW, Dec. 9 (UPI) -- The decline in the value of the Russian ruble has affected the country's tourism industry, with fewer outbound Russians traveling to other European countries.
The ruble has fallen 40 percent against the dollar, a combination of the effects of Western economic sanctions against Russia and a steep decline in the value of Russia's major export, oil. It means Russian holiday plans are being downgraded, and trips to London or Paris have been replaced by more budget-conscious tours to places like Prague or Istanbul.
"Travelling abroad is becoming too expensive for many Russians. That's the unfortunate situation. Many Russians who didn't want to travel inside Russia before are now doing it. People from Moscow are now travelling to St Petersburg. That's considered a replacement for a European city," Russian travel booking executive Marina Kolesnik told the British newspaper Financial Times.
The falling ruble means an increase in airline and tour prices. Twenty-four tour companies have closed, including five of Russia's largest tour operators, with more expected after the holiday season. A major airline leasing company, UTair, filed a bankruptcy petition Monday, an indication the airline industry is also suffering.
"The impact on travel demand has been quite negative because hotels and goods abroad for Russians have almost doubled in relative price over the past year, and discretionary income has been reduced due to day-to-day imported goods being more expensive," said Kirill Makharinsky, co-founder of the Russian travel site Ostrovok.
