Shortage of berthing infrastructure, growing fuel prices hinder cruise tourism in Russia - RUTI

MOSCOW. Nov 15 (Interfax) - Demand for river cruises has been rapidly growing in Russia, yet a shortage of berthing infrastructure all over the country, a shortage of personnel and unpredictable fuel prices are hindering an increase in river cruise routes and broader geography, the Russian Union of Travel Industry (RUTI) said.

"Cruise tours have a traditionally high percentage of repeat customers. Three out of four passengers return to our vessels after their first cruise. Some people take cruises several times a year, and some have been doing it for 20 years. Therefore, cruise companies are constantly updating programs and developing new routes. This is not easy, considering the underdeveloped berthing infrastructure. The problem exists on all rivers, but it is especially acute in Siberia," Vodokhod General Director Rishat Bagautdinov said.

Demand for cruises has been growing by average 15% every year due to the comprehensive nature of such tours, a higher tourist awareness of its opportunities, and better ships, he said.

A Doninturflot representative expressed a similar view.

"We are increasing the traffic and have transported 40,000 tourists in 2024. This is a rather good result, since we have refocused on the domestic market just recently. Further development is slowed by the absence of infrastructure: little has changed since the Soviet era," Doninturflot Executive Director Vladimir Chizhov said.

The growth of fuel prices, which is completely unpredictable, is a major cost borne by cruise operators, Mosturflot Deputy Director Svetlana Goncharova said.

"Truth be told, we were lucky this year, the price did not change, whereas it soared by 40% in 2023, right before the navigation season and after we sold a substantial part of cruise tours. The law on the protection of consumer rights does not allow us to change the price of the sold tour. Heavy financial losses were incurred as a result," she said.

RUTI Expert Council head Nikolai Litarenko said the problem could be solved with non-refundable cruise rates. The RUTI sent a respective letter to the economic development minister at the end of last year.