In Moscow this year, about 700 hotels were closed for the period of restrictions. This is about 30% of the total, most of which are small and medium-sized businesses, said Sergei Ryabokobylko, CEO of Cushman & Wakefield, at a conference in the Kommersant press center on October 6.

Most of them will return to work, he said, but some will no longer open. According to Rosstat, this year the number of hotels throughout the country has decreased by 6.3 thousand units. As added Alexis Delaroff, Executive Regional Director of AccorHotels in Russia, in April-May, his company closed 75% of more than 1,000 hotels across Europe. This is because the higher the class of the hotel, the greater the proportion of foreign tourists and the lower the occupancy.

The objects that were used to accommodate the medical staff survived this period a little easier – this gave them the opportunity to even earn a little. In the segment 2-3 * The price cut, which is still 30% below last year, helped slightly increase the load, but even so it did not exceed 15%. In the middle of summer, with the return of the Russian tourist, as well as business travelers, which became the main driver of demand, the load recovered to 40% (50% less than the load in August 2019).

As gloomily noted Konstantin Goryainov, Vice President for Operations in Russia and the CIS, Interstate Hotels & Resorts, even during World War II, hotels in the countries where the fighting was taking place were better occupied.

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As for the further recovery of the Moscow hotel market, it is seriously complicated by the closed borders – in the capital, foreigners traditionally accounted for up to 40% of overnight stays.

According to Olga Arkhangelskaya, Ernst & Young representative, the hotel investment market slowed down significantly. So, this year it was planned to commission from 4 to 6 hotels, but only two were launched. At the moment there are more than 80 thousand rooms in the capital, but the potential of Moscow allows getting at least the same number of rooms.

“In the medium term, we will face a restructuring of the market, and in the coming year we must rely primarily on local tourism. This implies an increased demand for hotels in the middle price segment, ”Arkhangelskaya believes.

Ryabokobylko added that the hotel market in Moscow has been growing at an active pace over the past 5 years – 20% per year. This means that Moscow is a very promising market for new investors, and in a successful scenario, doubling the number of rooms is a matter of the following 5-7 years old, if new taxes are not introduced in Moscow. A crisis is a good time to invest. “Now we are selling one of the best hotels in Sochi and we see a very high demand, including from foreign investors from Asia,” he said.

At the same time, the recovery to last year’s level, according to experts, will not occur until 2023. The main constraint, in their opinion, is the presence of a gray market zone. And to stimulate growth, it is much more important to put players on a level playing field than, for example, subsidies.

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In particular, more accurate measures of accounting and control of guests and rooms are needed, as well as the introduction of mechanisms for tracking sales volumes. For example, the nominal charge for the sale of a room-night or a separate VAT rate. This will help form a clearer vector for the development of the hotel business and determine which facilities need support.

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My name is Anastasia Shevtsova. I live in Kazan, I like to travel to foreign countries and Russia. Travelling inspires me, helps me to know this boundless world and myself, gives me interesting acquaintances and opens new horizons. I can combine travel with my work, because to work I need only a laptop and the Internet.

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