MVA: Russian travelers hit hard by economic crisis

Russia’s economic crisis has made travel to the CNMI 80 percent more expensive than just three months ago, according to Marianas Visitors Authority managing director Perry Tenorio, but he also noted that MVA Russia is working closely with Asiana Airlines for discounts to the CNMI via Seoul, among other things, at this time.

Tenorio

Tenorio said Russia’s economy is currently in crisis as a result of the tensions in Ukraine and the resultant economic sanctions by the United States and the European Union.

These sanctions have led to rapidly rising consumer prices in Russia and has severely eroded consumer confidence, which has impacted outbound travel from the entire nation, he said.

“Coupled with a significant fall in world oil prices which has dramatically reduced Russia’s foreign exchange revenues, the Russian ruble has lost 80 percent of its value against the U.S. dollar since just October, making travel to the CNMI and other dollar-denominated destinations effectively 80 percent more expensive for Russians than it was just three months ago,” he told Saipan Tribune.

He said the economic upheaval has naturally had a massive impact on Russia’s travel market, and all destinations and not just the CNMI have experienced sharp decreases in the number of Russian tourists.

“Many charter flight programs such as those operated by Aviacharter to the CNMI have been suspended due to low demand. As a result, the key is that the CNMI is no less attractive as a world-class resort destination for Russians, particularly in the east of the country, but that the current economic situation is preventing Russians from traveling overseas as they did just six months ago.”

“As soon as Russia’s economy begins to stabilize in 2015, MVA fully expects the numbers of Russian visitors to start to increase once again, in tandem with economic stability,” he said.

According to Tenorio, the MVA Russia team is working closely with Asiana Airlines to provide discounts for air tickets to the CNMI via Seoul, and launching joint CNMI promotions with Asiana throughout the East Russia market.  

He said MVA Russia is also continually working with major travel agents to lay the groundwork for the relaunch of charter flights to the CNMI from East Russia once Russia’s economy has stabilized.