Visit-Montenegro.com : Russian “Boom” Not Going to Happen

Budva – Despite predictions that this season was going to be the year of the “Russian Boom”, bad sale of the tourist arrangements on that market, as well as the sudden fall in the booking-rates, has led to nervousness among the domestic tourist workers and, once more, reminded of the old mistake to place all bets to just one number, i.e. to base the development of entire tourist industry to tourists from just one country.

Most of the hoteliers have sold almost half of the tourist packages in the height of the season in the fixed arrangements placed on the Russian market. Most recent information from the tour-operators, working in the cradle of socialism, reads that selling of these arrangements falls much behind from what had been expected. Requests from the partners to lower the bookings have created a complete chaos.

What might have caused sudden fall in popularity of Montenegro at the Russian market remains to be determined. Some of the reasons might be bad correlation between the prices and the quality of services, as well as strong competition with other destinations which offer cheaper arrangements, but also a huge number of apartments which are owned by Russian citizens and now rented to their fellow-countrymen.

President of the Association of Tourists Agencies in Budva and owner of the agency “Talas M”, Snezana Vejnovic says that she used to cooperate with one of the strongest Moscow’s agencies “Kapital”, whose representatives have now requested cancellations of bookings by 30 percent.

“They wanted to cancel a plane which they have from Russia, due to the bad selling. Taking into account that contracts in question are fixed, we did cancel only some arrangements, around 15 to 20 percent.

One-week arrangement for Montenegro is now being sold in Russia for the price of Euro 130, which is lower than the basic price of the accommodation. However, at least some of the losses must be covered.

Reasons for this situation happening are multiple. One of them could be that many Russians had bought flats here. They are now renting these flats. The prices had probably also influenced the situation”, Vejnovic told Vijesti.

She added that some Russian tour-operators have requested lowering of capacities in all of the objects, as well as lowering of the price.

“If the tour-operator requests lowering of capacities, you must give him an opportunity, or risk loosing him.

These situations does not happened with us, as all those who did sign the contract, signed a fixed one and have all rights to ask for its’ provisions to be met.

I wonder what it will be like next year, when we decide what our policy might be in relation to Russians, French, Scandinavians, Germans and we make some sort of ratio in between the tourists”, she wonders.

According to the words of the Director of “Queen of Montenegro” hotel and co-owner of “Adriatic Express” agency, Dragan Purko-Ivancevic, their hotel at Becici notes 40 to 50 percent drop in the number of realized arrangements with Russian tourists.

“The problem with the Russian market is the fact that it differs from other markets.

These fixed contracts have shown to be a bad thing, as we have other types of contracts with other tour-operators that entail much more flexibility when it comes to selling of these arrangements, better communication between hotel’s departments of sales and local agents, with tour-operators.

Time ahead of us will force Russian tour-operators to start acting like all the other European tour-operators.

There are plenty of tour-operators from Russia who are arranging things here on their own, which is not at all common. So, it is high time and this may be a good warning for the Russian operators to find their partners in Montenegro, who will, as local agency, plan their capacity and serve as a good service for their positioning on the market”, Ivancevic maintains.

He adds that equally important warning goes to those who are planning on the strategy for the development of Montenegrin tourism, insisting that we can no longer be oriented to a one-nation-tourism.

“It is obvious that this type of tourism poses a great risk. And, in the planning of the strategy for the development of Montenegrin tourism, we must make sure that capacities are distributed in equal and fair manner, bearing in mind the policy with prices, which had not proven as right this year.

With all the other problems which have, as we have concluded, burdened the beginning of the season – which are the unfinished infrastructure, massive construction works, unprepared beaches and roads - this is something that added up problems to quality realization of the tourist season.

This has to be a warning to adjust our policy of prices to the realistic quality of our services and realistic position of our market on the map of Europe.

It seems to me that we had not adjusted our policy of prices, which are, in many segments, overrated in comparison to the quality which we can provide”, Ivancevic maintains.

That the number of guests from Russia had also decreased in the objects of hotel company “Onogost” is evident from the statement of its’ Executive Director, Lav Lajovic, who emphasizes that exact figures on this particular market will be provided at later stage.

“Although we have had an increase in the number of overnight stays during the first half of 2008, and the praise for that goes to a very good winter season, we are noting a drop in the number of guests at the very beginning of the summer season, most notably from the Russian market.

It is hard to say what the reason for that might be, but we shall most certainly do the most detailed analysis”, Lajovic has warned.

President of Montenegrin Tourist Association and co-owner of “Montenegro Stars” chain of hotels, Zarko Radulovic finds that the months that will follow would provide a more accurate portrayal on the number of guests from Russian market.

“It is July, August and first half of September when Russian tourists go on holidays. In my opinion, we do not have sufficient number of high-quality hotels.

Over the last three to four years, when we have had a huge interest from Russian tourists, we held the position of a beautiful destination which lacks quality accommodation.

I do not think there would be a drop in the number of Russian visitors, we must wait for the end of the season”, Radulovic states.

The estimates from the Moscow Tourist Market from early March, which announced that at least 120,000 guests from Russia would spend their holidays in Montenegro, might turn out to be accurate.

However, the number of registered tourists would be smaller by one third, as most of them would spend their vacations at flats or apartments which would be rented to them – of course, illegally – by some of their countrymen who own real-estate in Montenegro.

Ivancevic: Reception Desk Might Be In Moscow

“What had been happening throughout the ‘90s is the following: the only market we have had – tourists from Serbia – had formed their own holiday capacities.

Same situation is now happening with tourists from Russian market. Citizens of Serbia started buying flats and houses in Montenegro on a massive scale. And, at some point, Belgrade Central Bus Station became the “reception desk” of Montenegrin tourism.

I fear that the same thing might happen with Moscow”, Dragan Ivancevic has warned.

V.LAJOVIĆ