Thursday, January 22, 2015

The Russians aren"t coming

BY STEVEN JACKSON Business reporter jacksons@jamaicaobserver.com

Wednesday, December 31, 2014    

THE fallout in the Russian economy has halted the rise of the fastest-growing tourism market for Jamaica.

So significant is the fallout that Russia now accounts for the market with the largest drop in tourist arrivals, according to latest data from the Jamaica Tourist Board (JTB).

“We are concerned because we started to see growth in that market,” Jamaica Hotel and Tourist Association President Nicola Madden- Greig told the Jamaica Observer. “The reasons for its decline are beyond our control at the moment. What we can hope for is that once things settle back in Russia, that they will resume flights.”

The Russian ruble lost more than 60 per cent of its value since January, due to rapidly falling oil prices and the impact of Western-imposed sanctions over Russia’s alleged involvement in the Ukraine conflict.

“The company operating the charter was not able to put the charter through to Jamaica because of the economic issues that Russia is going through,” Madden-Greig added.

Earlier this year, Transaero Airlines stopped chartering flights to the island, which dramatically reduced available seats from Russia. As such, Russian arrivals dipped by two-thirds year-on-year to some 3,300 visitors over 11 months ending November. It’s the largest drop from any tourism market this year.

Just a year ago, Russian arrivals grew by 622 per cent to over 12,200, which represented the fastest growth market. It surpassed arrivals from France and was on track to usurp Germany (currently at 19,000 year to date) as the main market from continental Europe.

“During 2013, Russia became the second main visitor-producing country from continental Europe (which excludes the UK…). This performance occurred mainly due to the year-round airline operations of Transaero out of Moscow,” stated the Jamaica Tourist Board annual travel 2013 publication.

Sweden now accounts for the fastest growth in stopover arrivals to Jamaica, up 224 per cent year-on-year to 5,900 visitors between January and November. Overall, Jamaica recorded 1.86 million stopover arrivals over 11 months ending November 2014 or 3.3 per cent higher than a year earlier. Some 62 per cent of those visitors came from the US. Over the same period, cruise arrivals totalled 1.2 million or 12 per cent higher than a year earlier.

Last year, in anticipation of further growth from Eastern Europe, the industry started offering Russian tours that focused on art, coffee and adventure. Stores posted Russian signage and hotels employed translators. Additionally, the Ministry of Tourism and Entertainment and its agency, the Tourism Product Development Company (TPDCo), launched a Russian and Spanish Language Skills Training Programme for tourism workers. The $3-million programme was aimed at front-line workers in the tourism sector, including immigration and customs officers; red cap porters; taxi and bus operators; craft vendors and workers in hotels and attractions, and Jamaica Tourist Board personnel.


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The Russians aren"t coming