Regional hospitality sector bolstered by local travel, surrounding attractions
In the Volga-Vyatka regions under the purview of the Bank of Russia's local branch, economic activity showed a noticeable pickup between December 2021 and January 2022. The report entitled "Regional Economy: Comments of the GU" attributes this to the interplay of counteracting factors: stringent anti-COVID measures on one hand and positive tourism trends on the other, impacting retail sales and the services sector.
Retail sales experienced a slight recovery pre-New Year following a decline in November; however, restrictions on movement and gatherings kept foot traffic in shopping centers low. Fitness clubs and cinemas in some regions witnesses a fall in patronage. The charm of corporate New Year events failed to reach the levels of 2019, with restaurant owners attributing this to both cost management and implemented anti-epidemic measures.
However, some regions in the Volga region have witnessed a more positive impact on the restaurant and hotel business due to increased tourist demand. This is seen in Nizhny Novgorod where hoteliers noted high demand due to the "New Year's Capital of Russia" festival. Additionally, tourist cities in the region have witnessed an uptick in demands for short-term rentals and winter recreational activities, including ski resorts.
While there was a spike in November for New Year tours, demand for international trips to Turkey and the UAE decreased afterwards. On the whole, considering the impact of anti-COVID measures and the positive dynamics in tourism on economic activity in these regions, there seems to be a subtle recovery as restrictions eased.
For a more precise analysis, specific regional data would be necessary. Yet, the general trends indicate that while stringent anti-COVID measures might have dampened economic activity, positive dynamics in tourism and easing of restrictions could have supported recovery in these regions. More detailed information can be found in the "Analytics" section on NTI-Privolzhye's various platforms.
The uptick in tourism demand, particularly in regions like Nizhny Novgorod and tourist cities, has positively influenced the restaurant and hotel business, boosting short-term rentals and winter recreational activities. Conversely, international trips to Turkey and the UAE saw a decrease following the New Year spike, hinting at a shift in lifestyle preferences towards domestic travel. In the realm of finance, this tourism recovery, along with easing restrictions, might have contributed to the noticeable economic upturn in the Volga-Vyatka regions, despite counteracting factors like stringent anti-COVID measures affecting other sectors such as retail and services.
