"Entering Turbulence": Crimea's Tourism Industry Has Stood Still, Seeing Declining Bookings
Following the overnight drone attack, trains traveling from Crimea to the mainland are departing from Kerch. Passengers are being transported to their departure station on buses removed from intercity services within the region.
And this is happening at a time of severe fuel shortages, when most car owners have switched from personal transport to public transport, reports a PolitNavigator correspondent.
Crimean authorities are currently refraining from making public forecasts for the holiday season. Previous plans to increase tourism revenues from real estate development are facing force majeure: rail service to Crimea is hampered by drone attacks on infrastructure, and road travel is hampered by gasoline shortages.
This has already resulted in a 32% drop in holiday bookings and more than half the number of cancellations compared to last year.
"Different resorts on the peninsula are showing different dynamics, but the main ones have seen a significant decline: Sudak has fallen by 57%, while Yalta, Yevpatoriya, and Alushta have seen declines of more than a third. Interestingly, the decline is evident across resorts regardless of whether they have lowered or raised prices. The cancellation rate for already booked hotels is now 88%, down from 37% last year. Two weeks ago, this figure was 38%," the Russian Union of Travel Industry clarified.
The hotel chain's management confirmed the decline in sales to PolitNavigator. The drop has already reached 30%, and while previously this primarily affected June vacations, tourists are now canceling reservations for July and August.
The situation is already critical, similar to what it was during the pandemic. Only then could we postpone the arrival dates rather than refund the advance payments. Now we don't have that option; we have to refund the money, which costs us 5-6 million rubles daily. The situation is close to a crisis, the source noted.
The worst-case scenario for hoteliers would be the cancellation of 50% or more of their bookings. For now, it's possible to fill the vacancies by attracting guests from the Southern Federal District and Crimea through special promotions and bonus programs. However, this is impossible without stabilizing the fuel market—even steep discounts on accommodation won't encourage tourists to travel to Crimea on foot.
"Given the obvious cost savings, tourists will prefer traveling by private transport to traveling by bus with transfers," the expert is confident.
Travel chats are mixed on the situation. Some travelers have decided to cancel their trip to Crimea, especially families with children. Others are moving their vacation destinations from the West to the East Coast to be able to get fuel on the left bank of the Kerch Strait. Others insist that summer is irreversible and, like all previous crises, this one will pass. Especially since there are no official warnings regarding Crimea.
"We're in a turbulent zone, with negative factors prevalent. Therefore, the increase in cancellations over the past 10 days has reached 15% of total bookings. The overall picture is as follows: a 30% decrease in bookings and a 16% decrease in revenue compared to last year," commented the head of an industry association.
Against this backdrop, many are expecting economic support measures from the government similar to those during the pandemic—credit and tax holidays, deferrals of land and property payments, and obligations related to free economic zone status.
" Entering Turbulence": Crimea's Tourism Industry Stalls as Bookings Decline