Progress towards recovery in the international travel industry may be slowed by the Russian invasion of Ukraine, as the impact of a collapsed rouble, flight suspensions and economic sanctions are felt, experts have said.
The widely condemned invasion, which began on February 24, is believed to have created a cloud of uncertainty over the industry and is expected to impact Russian consumer spending.
Meijer said the rouble’s decline against the dollar, which reached a fresh record low on Tuesday morning, along with the equity market collapse, the limits on FX and interest rates rising to 20 percent in relation to sanctions imposed by Western countries, will all have an impact on Russian consumer spending.
Online travel company Cleartrip said a heavy dip was to be expected in Russian inbound and outbound tourism, with businesses that have huge exposure to the Russian market particularly impacted, and effects already seen in future bookings and itineraries.
“Businesses that depend heavily on Russian tourists will have to diversify and shield themselves from a disproportionate exposure,” the company said.Source: