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Belarus: Belarus Tourism Profile

2015/02/28

Minsk, Belarus

Belarus hosts 2014 World Hockey Championship

In order to prepare for the upcoming championship, the government implemented a number of projects targeted at developing tourism infrastructure and increasing the level of service in the country. These included the construction of new hotels, reconstruction of existing accommodation and catering facilities, managing the busiest road networks in Minsk City (the venue for the championship) and the reconstruction of Minsk National Airport. The championship changed the previous unfavourable image of the country and will attract additional foreign tourists in the estimate period.

Initial signs of visa simplification

Strict visa regulation and high visa entrance fees are the major reasons hindering the development of tourism in Belarus. In order to encourage additional hockey fans approaching to Belarus, the government announced visa-free procedure not only for the participants in the World Ice Hockey Championship, but as well for foreign tourists purchasing tickets for the matches. The visa-free procedure lasted from 25 April 2014 to 31 May 2014. No medical insurance was required for this period. This measure attracted 80,000 international tourists during the event.

International hotel chains come to Belarus

Trying to attract new investment , the government announced advantageous conditions for foreign investors. This, along with the World Hockey Championship, attracted the attention of international hotel chains to Belarus and prompted some of the large players approaching to the country. The inventory includes Marriott International, Hilton, Hyatt, Novotel and Kempinski. Most of the investment projects transaction with the construction of four- and five-star hotels, which are expected to open in 2014-2016.

Online services continue to develop

Belarusian Railway made a significant step towards the development of online services in 2013. Launched in 2011, its service was limited to online booking and reservation of railway tickets. At the end of 2013, online payments were available for all domestic destinations, all trains with Belarus-Russia direct connection and the Minsk-Riga train. In December 2013, the initial self-service terminal for printing tickets was installed at the central railway station in Minsk.

Low cost airlines still not present, but non-refundable tickets to be introduced

In the absence of low-cost airlines, air transportation remains expensive in Belarus and the market is dominated by the national carrier, Belavia. In order to decrease the prices and attract additional passengers to air travel, carriers working in the local market will be given the right to introduce the practice of non-refundable tickets for their flights from July 2014. The number of non-refundable tickets will be limited to 30% of tickets on a flight.

Economic recession hits Belarus

The world economic recession hit the economy of Belarus in 2009 and led to a decline in disposable gain, higher unemployment rates and a depreciation in the price of the national currency. The national statistics office reported negligible GDP increase in 2009, which represented a drastic slowdown from the 10% increase seen in 2008. Recession was recorded in all major industries of Belarus, inclunding metal processing, timber processing, paper production, machine building and energy production and supply. Subsequently, the economic recession led to lower spending, delays in investment plans and fewer outbound departures.
 

Financial crisis hampers investment in travel and tourism

 
Belarus has announced a number of investment projects in hotels and other travel and tourism infrastructure. These include projects in the capital Minsk and the reconstruction of the Hotel Belarus. However, a lot of plans have been delayed and some have not from presently on even been started. This suggests that, on the one hand, the financial crisis has affected the investment development. But on the other hand, Belarus does not generally offer favourable conditions to investors. However, in 2014 Belarus will play host to the Ice Hockey World Championships. This event will drive the need for the construction of new hotels and the upgrading of old ones. The Government of Belarus has announced additional travel and tourism infrastructure projects in the pipeline.
 

Domestic tourism grows stronger

 
The world economic crisis which resulted in declines in disposable incomes and reductions in spending had a negative result on outbound departures in Belarus in 2009. This strengthened domestic tourism, as staying at home and holidaying within Belarus represented a cheaper option than outbound travel. In 2009, domestic tourists in Belarus preferred low-budget holidays in rural areas. Trips to Belarus’s national parks such as Braslav Lakes, Belovezhskaya Puscha and the Berezinsky Biosphere Reserve became additional popular. Interest in hunting tours and eco-tourism is growing part both Belarusians and inbound visitors.
 

Good increase potential for air transportation

 
Air transportation recorded a sharp slowdown in price sales between 2007, at the same time as 19% increase was recorded, and 2008, at the same time as increase was just 3%. This continued in 2009, at the same time as price increase stalled at 1%. This slowdown is largely a result of the economic crisis affecting the country and its outbound tourism. However, the potential for development in air transportation in Belarus will remain high over the estimate period. This increase is expected to be fuelled by the increasing use of internet reservations and as well by new air routes to destinations such as Amsterdam and Riga which are set to be opened in 2010. However, investment is as well needed in this category in order to improve airport infrastructure.
 

Tourism image of Belarus

 
At present, Belarus is not a well-known travel and tourism destination part international tourists. Currently, the government of Belarus is considering the cancellation of the existing visa regime for visitors from EU nations. If such a change comes into force, it could be the initial significant step to increasing tourism flows inbound from key Western European tourist source markets. Additionally, there is a lack of basic travel data in Belarus such as data booklets featuring routes and attractions and signs on the streets with directions to tourist sites and tourist data offices. Improvements in these basic tourist services inclunding a culture of better customer service will be necessary during the estimate period in order to aid increase in travel and tourism in Belarus.
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