TOUR OPERATORS LEAVE THE MARKET DUE TO WARRANTY ISSUES

Difficulties in obtaining financial guarantees for Russian travel operators inevitably lead the firms to liquidation and bankruptcy. It became known from the order of the Federal Tourism Agency that the entries in the register were canceled for 21 organizations, only two of which were in a state of reorganization (RnD Tour and Iset Travel). All the rest could not get financial guarantees.

Earlier, Federal Tourism Agency has already sent messages to the Government of the Russian Federation, noting that the existing procedure for issuing financial guarantees and special funds could cause a wave of mass bankruptcies of travel agencies. It was predicted that this could have happen in the first months of 2022. However, as experts note, the latest order of the Federal Tourism Agency allows us to say that the wave has already come.

The department proposes to amend the legislation on tourism activities.

In particular, it is proposed to establish uniform standards for the amount of financial security. It can be 5% of the company's turnover per year, but not less than the established amount. In addition, Federal Tourism Agency is seeking to abolish the personal responsibility of the organizers of tours, the provision of which is more than 7% of the turnover for the year. It is not yet clear to what extent such changes, if they are adopted, will affect the financial burden of travel companies.

Considering that it is December now, and the Christmas holidays are about to begin, such a significant number of tour operators leaving the market makes one think about the fate of the travel business in Russia.