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Russian Tourism Industry Turmoil Unlikely To Affect Armenia, Special

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  • Russian Tourism Industry Turmoil Unlikely To Affect Armenia, Special

    RUSSIAN TOURISM INDUSTRY TURMOIL UNLIKELY TO AFFECT ARMENIA, SPECIALIST SAYS

    SOCIETY | 12.09.14 | 10:26
    http://armenianow.com/society/56784/armenia_tourism_sector_travel_agencies_russia

    Armenia is by and large immune to the kind of mass bankruptcies
    of travel agencies that Russia has seen in the past several months
    and weeks.

    Dozens of tour operators involved in providing mainly outgoing tourism
    services have been shutting down in Russia in August and September
    defaulting on their financial obligations, which has left tens of
    thousands of holidaymakers stranded on foreign resorts.

    Russia's Ministry of Emergency Situations has even mulled a special
    plan on the evacuation of Russian tourists who have been evicted from
    their hotels and not allowed to embark on homebound flights because
    of the absence of money transfers from their tour operators.

    In explaining the phenomenon of a wave of bankruptcies of Russian
    travel agencies some experts cite the so-called 'snowball' effect.

    They say that since the first reports about trouble with some tour
    operators many potential holidaymakers have preferred finding their
    travel and hotel options themselves using the internet, which resulted
    in a customer base slump and eventually led to huge losses of the
    agents involved in the tourism market.

    Artur Voskanyan, the head of the Association of Armenian Travel
    Agencies, says, however, that the Armenian market remains largely
    unaffected by the development in Russia and is unlikely to experience
    similar troubles.

    "Armenia has an insurance system for tourists, but we do not have one
    for tour agencies," he says. "Besides our tour agents work directly
    with Turkey, Egypt, Dubai, and I don't think that troubles in Russia
    will affect Armenia."

    Separate problems with tour operators have also happened in Armenia
    before. Thus, in one such case in January 2013 some 130 holidaymakers
    were 'trapped' in Egypt amid a financial dispute between an Armenian
    travel agency and its Egyptian partner. But no mass problems in the
    sphere have been observed.

    Some experts also cite poor management as one of the reasons for
    bankruptcies of tour operators in Russia.

    Rector of the Armenian Tourism Institute Robert Minasyan believes
    that while large investments have been made in the tourism sector of
    Armenia in the past several years, the shortage of trained specialists
    still remains a concern.

    "Liberal policies have resulted in a situation in which anyone can do
    business in the tourism sphere, even those who are mainly involved
    in construction, trade, try to do something in tourism on the side,
    which is unacceptable for me. It is important who represents the
    country, there are many responsible, bright minds, but, unfortunately,
    irresponsible people whose presentation of the country is not ever
    checked work next to them," Minasyan said, adding that specialists
    working in the sphere of tourism should be registered and controlled.

    Minasyan believes that if managed properly, tourism can serve as a
    powerful trigger for developing other sectors of the economy as well.

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