Amendments have been introduced to the State Duma that increase mandatory financial guarantees for tour operators tenfold, and this has already met sharp opposition from the Siberian Baikal Tourism Association. Market participants warn that the new requirements could seriously hit the regions tourism industry, especially companies working with international tourism and inbound tourists. Why travel firms believe such financial guarantees will protect neither business nor tourists, and what the bill threatens for the Baikal and Transbaikal regions, in the report.

Two amendments to the federal law “On the Basics of Tourist Activity” have been introduced to the State Duma, which imply a tenfold increase in the mandatory financial guarantee for tour operators. The Siberian Baikal Tourism Association has opposed the planned innovations.
The first amendment to the federal law “On the Basics of Tourist Activity in the Russian Federation” was adopted in September of this year. Tour operators are being offered an increase in mandatory financial insurance to one hundred million rubles. This means that the annual amount of insurance paid, which is one percent, will rise from one hundred thousand rubles to one million, and for many companies this is almost half of their annual income.
Igor Kovalenko, chairman of the Siberian Baikal Tourism Association: “Unfortunately, over the past two years we have observed a situation in which these financial guarantees do not work in full and do not protect, do not help tour operators and travel companies in Russia, and also do not protect the interests of tourists themselves.”
An increase in the amount of financial guarantees for tour operators could seriously undermine the tourism industry in the region. Only those who can secure the necessary financial guarantee will remain. There are no more than five such companies in Irkutsk.
According to tour operators, demand for trips in all directions is currently declining. Recently, sales for the coming days and for the New Year have fallen. However, as the operators themselves assure, the New Year holidays will proceed as usual
Real problems for tour operators will begin on June 1, when the new amendments come into force. Many travel companies across Russia have opposed the bills; letters have been sent by regional associations from the Northwest, the Urals, Siberia, and the Far East.
Vadim Kopylov, director of a travel company: “There will be no point in doing business under such conditions. What remains for us, since for now this concerns only international tourism, is to change our guarantee to domestic tourism and deal only with that. In this case, we will not attract foreigners, and we will not have the right to serve foreigners. Accordingly, we can say goodbye to their arrival in our region.”
The amendments to the law will be considered by the State Duma of Russia in the first reading on November 12. At present, members of the Baikal Tourism Association have planned to hold an emergency congress of tour operators from the Baikal region and the Trans-Baikal Territory. Regional authorities are on the side of the travel companies — according to the head of the regional tourism agency of the Irkutsk Region, Irina Ryutina, the law cannot be supported in its current form. The regional tourism agency is preparing a corresponding letter to the State Duma of the Russian Federation.