When the Crimea peninsula was reunified with Russia over what they saw as a deteriorating situation in Ukraine, one of the Black Sea’s most vibrant vacation destinations took a huge hit. Then several months later the ruble crashed making travel inside Russia dirt cheap. For hospitality related businesses there, it’s fair to say great blessings come in mysterious surprise packages.
If you’re a hotel owner in Yalta, the news of a new nationality probably came as less of a stunning surprise than a brand new currency. Given how weak the Ukrainian hryvnia was compared to the ruble before the latter’s free fall, those owners can really be heard wheezing a sigh of angst. However, a rock bottom ruble value also gives business on that peninsula a silver lining all around currency storm clouds. The value of Crimea vacation land just got introduced to millions more paying Russians. Yes, Germans and Brits may not be flocking to catch a glimpse of the famous Swallow’s Nest near Yalta, but inter-Russia visits have already skyrocketed.
The phenomenon is actually fairly simple to describe. Before the Ukraine crisis Russians were one of the fastest growing segments of the inbound European travel market. Since the east-west divide, outbound tourism to the greater Europe and worldwide from Russia has dropped dramatically. Where once Egypt and Turkey may have been ideal touristic destinations, now it is simply more affordable to go to Crimea, and this is true even though road access there from mainland Russia is negated. Oleg Safonov, head of the Federal Tourism Agency there, reported recently:
