As the tensions in between Russia and western powers continue, news of another Russian tour operator suspending operation does not ring a positive note for Europe travel in general. According to ITAR-TASS, some 4,000 plus customers of Russia’s bankrupt Yuzny Krest Travel tour operation, who are vacationing overseas, my need assistance returning home.
The report details some 9,000 tourists now abroad, and 4,500 of them at risk of needing help getting home to Russia. Maya Lomidze, Executive Director of the Association of Russian Tour Operators, told ITAR-TASS in total 20,000 more people or more bought tours from Yuzny Krest Travel, and those may not be able to travel abroad now. Of those stranded, the director said, “none so far have been evicted from hotels.” This message appears on the company’s website today:
“Due to the inability to meet its obligations to tourists and customers on contracts for the implementation of the tourism product LTD southern Cross travel” forced to announce the suspension of its activities. The suspension is associated with a strong decline in demand for tourism product on the background of the bankruptcy of a number of major tour operators.”
Yuzny Krest Travel , which went in business back in 1998, is among Russia’s top ten tour operators, operating via Yuzhny Krest Travel and Romanov Club Luxury Travel. The companies offer vacations to places like economically burdened Greece and other EU countries, as well as Asia and Middle East destinations. According to the news, Yuzny Krest Travel is insured by RESO-Garantiya Company, with over 100 million rubles in coverage. Yuzny Krest Travel’s earnings were 1.9 billion roubles last year, but there’s been no forecast of loss or gain for this year thus far. The news indicates insolvency, obviously.
Since the first west sanctions on Russia earlier this year, half a dozen major tour companies in Russia have gone belly up. Despite the obvious impact on the Russian economy, the revenue spent by Russians traveling to places like Greece and Spain, represent an almost staggering negative.