Impact of Sanctions on the Dynamics of the Russian Tourist Market

Daniil A. Sitkevich – Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Sofia E. Kuek – Junior Researcher of the Gaidar Institute for Economic Policy; Master’s Student in Economics of the EUSP (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The article analyzes the consequences of the sanctions imposed in 2022 for the Russian hospitality industry. Based on official statistics, we conclude that before the sanctions were imposed, the Russian tourism industry demonstrated growth, which accelerated during the post-pandemic recovery. Data from a series of semi-structured interviews with the representatives of the hospitality industry showed that apart from the positive effects (associated with the reduced availability of outbound tourism), there are also negative effects of the sanctions and the ongoing military conflict. Current evidence suggests that, at this point, the positive effects of the sanctions outweigh the negative ones. However, some regions have already experienced a decrease in tourist traffic due to transportation restrictions, and the decline in industry productivity associated with the sanctions poses long-term risks to the hospitality industry.

The article reflects the results of research carried out as part of the research work of the state task of the RANEPA.

Key words: internal tourism, hospitality industry, sanctions, tourism product.

JEL-codes: R12, Z30, Z32.