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Russia to lose £100m in cruise revenue by 2022: report

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The war in Ukraine has led to a boom in tourism to Eastern European seaports as cruise ships seek alternative destinations instead of visiting Russian ports, a report said.

That means the Russian economy could lose as much as £100m in 2022 as tourists spend their money in Estonia and Latvia, according to analysis by luxury cruise retailer Panache Cruises.

Baltic cruises with a stopover in St Petersburg have long been popular with British holidaymakers, but operators are now choosing alternative routes for their cruise trips instead of taking tourists to Russia.

Instead, they added overnight stops at a number of Baltic ports, with Tallinn in Estonia and Riga in Latvia being the big winners. In 2022, thousands of British tourists will visit these cities on cruise ships for the first time.

Before the pandemic, about 650,000 cruise ship tourists visited Tallinn each year, and a similar number stopped in Riga. Experts estimate they spend around £50m in each country.

But in the past 12 months, experts at Panache Cruises believe those figures have roughly doubled to 1.3 million, estimating that cruise tourists alone spend around £100m per destination.

If accurate, the analysis would mean that around £100m that should have been spent in Russia instead found its way into the coffers of neighboring countries.

Experts believe the trend is likely to continue for a long time, as cruise operators report very positive customer feedback on new destinations.

A spokesman for Panache Cruises said: “The war in Ukraine has had some unintended consequences for Russia, one of which is the loss of tourism revenue as far north as St Petersburg.

“The Russian city has long enjoyed a reputation as one of the Baltic cruise highlights, but since the situation in Ukraine started to deteriorate, cruise lines have been looking for other destinations to host holidaymakers.

“Estonia and Latvia are the main beneficiaries, roughly doubling the number of cruise ships in 2022 compared to pre-pandemic.

“Our analysis estimates that the number of cruise ships and therefore tourists going to Estonia and Latvia rather than Russia has doubled, so it is safe to assume that spending has roughly doubled as well.

“Industry estimates have seen cruise tourists spend about £50m per location from 2018, so if they double this year it would mean Russia misses out by around £100m.

“The feedback we’ve had from our clients in Tallinn and Riga has been excellent. They’re both beautiful capital cities and largely unspoiled compared to more touristy destinations.

“British tourists report that they spend significantly more than expected when visiting these cities, as costs remain relatively low compared to St Petersburg, so they are good value for money for tourists.

“As long as the war in Ukraine continues, we will see this trend continue, and even continue. In terms of lost tourism revenue, it may take many years for St. Petersburg to recover.” – trade arab news agency

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