Russia Moves to End Tourist Refund Program in 2024 and Focus on Domestic Development
The government in Moscow has signaled that the tourist cash refund initiative will not be renewed in 2024. Officials cited by Interfax, including Deputy Prime Minister Dmitry Chernyshenko, stated that the program was a one-time measure designed to bolster demand and sustain trade during the peak of the pandemic. While the refunds helped revive travel activity in those challenging months, they also contributed to higher inflation and pushed up the overall cost of tours for Russian travelers. With that context in mind, the administration outlined a pivot toward stabilizing inflation and recalibrating consumer prices rather than extending a subsidy that had outlived its original purpose.
Looking ahead, Chernyshenko indicated that all investment efforts planned for 2024 would target strengthening the domestic tourism framework and accommodating the growing appetite for local travel among Russians. Plans include the construction of modular hotels and related facilities as part of a broader effort to expand capacity and improve accessibility inside the country. The tour refunds program ran from 2020 through 2022, and supporters argue it helped spark a revival in domestic tourism amid lockdowns and travel restrictions, while critics say its long-term effects on prices and market dynamics warranted a careful reevaluation. The shift reflects a strategic choice to prioritize infrastructure development, ensure consistent service quality, and sustain momentum without the distortions that temporary subsidies can create.
As September closed, observers weighed how many Russians would take advantage of upcoming holidays. There was speculation about relaxing travel rules to align with National Unity Day, with many anticipating a long weekend. Still, survey data suggested that a relatively small share of the population—about 3.6 percent—expected to take time off for extended travel. The decision to pause a broad-based incentive program and focus on internal capacity may influence whether more residents choose domestic destinations for their leisure time, especially as travel options evolve and new accommodations come online. The conversation around holidays and travel behavior continues to reflect broader economic and social priorities within the federation, including how best to balance consumer incentives with sustainable growth across the tourism sector.
Earlier in the year, the tourism sector highlighted the holiday calendar as a potential driver of activity, noting that certain periods typically attract more footfall from residents. The dynamic underscored a broader pattern: visitor demand can surge during holiday stretches, yet the durability of such bursts depends on consistent pricing, reliable services, and the availability of modern facilities. In this context, the government’s emphasis on domestic infrastructure signals a long-term plan to attract both local travelers and, potentially, visitors from neighboring regions, while ensuring that capacity, accessibility, and quality meet rising expectations. The conversation around policy measures thus moves away from temporary cash-back incentives toward a framework that supports sustained, self-reinforcing growth within Russia’s tourism landscape.