Impact of Declining Russian Tourists on European Countries: Latvia to Spain

In Europe, the days of Russian tourists who flooded into Europe are over. This has forced countries to adapt.

This summer, it's likely that Russian tourists will be more difficult to find than ever.

According to the Association of Tour Operators of Russia, there will be 84 percent fewer Russian tourists in Europe by 2022. This figure is unlikely to change as the summer season heats up.

The region continues to attract the wealthiest Russians, but middle-class tourists are almost nonexistent. They cite mounting costs and logistical problems.

It is the Russian invasion of Ukraine that has caused the West to put up barriers it has not seen since Cold War days in order to support its embattled ally.

What impact is this Russian tourist loss having on Europe today? Find out by looking at two locations bordering Russia and two that used to be flooded with Russian tourists.

Latvia looks to the untapped tourism market to fill in the gap

Latvia has been a popular destination for Russian tourists due to its geographical location and historical links as part of the Soviet Union.

As with many other countries, the COVID pandemic has ravaged the vibrant tourism industry of this tiny Baltic state. But losing Russian visitors only exacerbated it.

In September 2022, in solidarity with Ukraine's tourism, Russians were banned. The country's foreign minister Edgar Rinkevics tweeted "You're not welcome here - you need to end the war against Ukraine and be gone from that beautiful country!"

"Russia was an important market," Vladislavs Korjagins, CEO of the Baltic Travel Group says. "Of course, we are missing it."

"From an economic perspective, this decision may not have helped local businesses. But, on the political level, we support Ukraine."

"It's the right decision," he says. "People understand we cannot welcome Russian tourists, while their soldiers are attacking Ukrainians."

Korjagins explains that the "biggest hit" of the Ukraine war is the perception among many Westerners that the Baltics are unsafe and could be the "next targets" for Russian forces. However, this misconception has now improved.

According to the Latvian tourism industry, 70 percent of group bookings have been cancelled since the invasion of February 2022.

The industry does not accept these losses without protest.

Korjagins says that the company has expanded into untapped markets such as the Gulf and is more efficient due to a reduction in labour costs.

"Truth is: We adapted," he also mentions.

Finland promotes domestic tourism

Official figures reveal that, in the years before the Kremlin invaded, around 1.2 million Russians took day trips by car or bus into eastern Finland.

Most people spent their money at local supermarkets, on average EUR170 a day in Lappeenranta.

The Lakeland District of Finland did not rely solely on Russian tourists despite the large number.

"People who were really catering to cross-border traffic are no longer in business," explains Mirka Rahman, Lappeenranta's Director of Tourism. "There were a lot of mini-buses and bigger buses bringing the daily visitors but they were all Russian and not Finnish companies."

"They bought clothes, detergent, chocolate, fish, the majority of it was food items from the supermarket as Finnish brands are known for high quality. Some of it was to take home for themselves, and some of it was to take home and sell."

The pre-war flood has now been reduced to a trickle of visitors, restricted to dual citizens or those who have a visa that allows them to enter and leave.

Since the beginning of the war, the South Karelia region has lost approximately 100,000 Russian overnight guests. Lappeenranta is its largest city.

It has shifted its marketing to target Finns, as an in-country holiday destination. But, it is also looking at customers from Germany, Italy, and Benelux countries, who, according to Rahman, spend more money per day than Russian tourists.

"The trends have changed," states Rahman. "Nobody here is calculating on the return of the Russians."

Spain no longer accepts Russian tourists with high spending levels

The effects of the Russian border are felt by all.

The Salou Cambrils La Pineda Hotel Association reports that although the Russians have never been a significant source of tourists to Spain, they are one of the fastest growing groups.

According to the National Statistics Institute of Spain, around 1.3 million Russians visited the country in 2019. This represents 1.3 percent of the total.

Their absence is still felt. This is especially true in some areas where Russian tourists were a greater percentage of visitors than others. For example, Costa Dorada was a place where between 10% and 15% of all visitors were Russian.

"Last year, the effects of the lack of tourism were clear and this year it is also noticeable," Albert Save, President of the Costa Dorada Hotel Association, in Cataluna said.

He claims that there were 1,290,000.00 overnight stays in this area in 2019. This number has now dropped to zero, except for "one or two Russians", who came by car through Turkey or Finland or via Turkey.

Saving continues: What sets Russians apart is their high level luxury consumption that supportss local businesses.

"When they were here, [Russians] did spend because they came from afar... They would go on a lot of excursions... [and] buy products from the area... because of the attraction of wine, oil, sausages... clothes," he mentions.

"Their behaviour was different from [the] British, who come for the sun."

Czech Republic struggles with inflation and a decline in tourists

As in Spain, wealthy Russians have been a major drop in spa towns in the Czech Republic.

The towns of Karlovy Vary and Marianske Lazne, as well as Frantiskovy Lazne, saw a glimmer when UNESCO designated them World Heritage Sites in 2021.

Their joy was brief.

As soon as Russian tanks crossed the Ukrainian border, Central Europe joined the European sanctions against the country.

The number of Russians who are their most loyal customers and spend the most money has dropped from 61,000 to a few thousands in 2019.

"The average Czech tourist spends around 700 crowns (EUR30) a day. Russian-speaking guests spend more than 3,500 crowns (EUR150)," says Jan Herget, Czech Tourism Director.

However, losing Russian tourists is only part of the problem.

Staff shortages are also a problem in spa towns, as the Czech unemployment rate has been at 3.5% for the last two years and inflation is only just beginning to decline from its record high of 18.0% in September.

Source: euronews.com