From 4,000 in 2004, the number of tourist arrivals from the Russian Federation has tripled to 12,000 last year, and there is no way for the figures to go this year but up.

Credit goes to the aggressive sales and marketing programs that the Philippine tourism department has poured major efforts on - from organizing sales and dive missions, to relaxing visa regulations for Russian tourists, to joining major travel trade fairs – all to make our presence felt in this billion dollar market.

The Philippine booth

Last week, the DoT takes pride in having one of the most colorful and creative booths at the Otdykh-Leisure Moscow, the 13th International Trade Fair for Tourism where international key players find new partners, identify new business opportunities, and set up travel trends for the coming season.

Located right smack in the middle of the huge Crocus Expo exhibition center, the Philippine stand carried the delightful Pahiyas theme, further attracting a long queue of people even before the booth opened (while angling for our colorful buntal hats!)

Simultaneously, the Philippines was also a major participant in Luxury Leisure Moscow exclusively dedicated to luxury travel and destinations, spa, health and wellness sectors.

"This is what we term as participative marketing. By being here, we are making our presence felt and telling them that the Philippines is here for you to explore. This is the third year that we are participating and without even inviting, the people are coming to our booth, showing great interest in our country and our tourism products," said Tourism Secretary Joseph H. Durano, who led the 19-man delegation to Russia composed of representatives from travel companies, resorts and hotels, and media.

Durano attributed the hike in Russian tourism arrivals to a formal marketing program that the DoT has been implementing not only in Russia but in other key markets as well.

At present, Russian tourists rank fifth among overall arrivals from Europe, next to Germany, the United Kingdom, France, and Italy. European tourists account for 15 percent of the 3.2 million total arrivals to the Philippines in 2006.

However, Durano qualified that Russia belongs to the top three in terms of growth.

Hats at the Philippine booth

Durano revealed that the Philippines pitches to get a slice of the Asian pie as far as Russian tourists are concerned first, by assembling more capacity access to Moscow.

"First, we are now visa free for travellers who wish to stay for a maximum of 21 days. Then we are also creating necessary packages that boost short-term travels," Durano said.

Furthermore, the Philippines strives to complement the seasonality of travels to Korea and China. Travels from Russia abound all year round, with peaks reaching in December and in the second week of May when they are afforded a 10-day holiday.

Russia is acknowledged worldwide to be one of the fastest growing outbound travel markets for the past couple of years. According to World Tourism Organization (UNWTO) statistics, Russia rose to the eighth position among world spenders.

Business Monitor International (BMI) in its "Russia Tourism Report" (2006) attributed the growing outbound travel rate to four factors – the Russians’ increasing spending capacity, the growth of price levels in Russia; the increasing business, educational and cultural exchanges, and the development of outbound travel services.

In 2004, the Russians made about 24.5 million trips, mostly to neighboring countries such as China, Finland, Poland, and also to the United States. UNWTO figures also showed that Turkey and Egypt, with their beaches, were particularly attractive to the Russian traveller, while Europe, with its culture and big city highlights, was also a favorite.

It is in this propensity for culture and beaches that the DoT saw an opportunity to package and offer the Philippines.

"They are attracted to our country because of our diversity. While it is all beaches in traditional destinations like Bali and Phuket, the Philippines has a colorful culture to show for," Durano stressed.

At present, local tour operators have developed three–beach packages to cater to the Russians’ love for the sand, sea and the sun. For two weeks for instance, the tourists may hop from Cebu to Boracay to Bohol and there, experience the best of Philippine beaches. Palawan or a side trip to Manila may also be included as needed. These value for money packages all the more make the Philippines attractive.

Tapping into the Russian market will prove to be lucrative to the industry, Durano underscored.

"The typical Russian tourists are families. You will see this in charter flights. They are a higher spending market because they spend a lot on food and beverages, averaging about US$ 150 a day per head. They also spend on the wellness part of their beach holidays. Furthermore, they do not stay in hotels that are below five-star. Their standard is always one level higher than our classification," Durano revealed.

Morevoer, the Russians feel a certain affinity to Philipine culture as ours is "more occidental than oriental."

"We may be different but we have something that they are also familiar with. Like us, they are also religious people and this is part of their comfort zone," the tourism chief stressed.

Worldwide, the high–spending Russian traveller is also attracting airline companies to cater especially to them. UNWTO reported that the likes of Thai Airways, Singapore Airlines and Cathay Pacific have started direct flights from Moscow. Durano sees this as another. opportunity

"The growth of arrival from Russia will create pressure on our air capacity, that’s for sure," he said.

The new Russian elite

Ambassador Ernesto Llamas says this recent efforts by the DoT has given a meaning to his last post.

"There were attempts to promote the Philippines here before, but the efforts were sporadic. But now the consistent promotion has surely helped Russians know more about our country," Llamas said.

Llamas confirmed that the new Russian elite are always on the lookout for new travel destinations, what with their newfound wealth, not to mention, freedom.

"After the Soviet Union, young people began to rediscover life. They started going to church because religion is more tolerated. They started dressing up well and some would even buy luxurious clothes rather than eat. They have become big spenders and (Boris) Yeltsin started all these opportunities. Now, many international companies are here, employing these youngsters and offering them big salaries," Llamas explained.

Indeed, the Institute of Comprehensive Social Studies of the Russian Academy of Sciences estimated at 700,000 families or two million those people who have broken the million–dollar mark in terms of income. From these, a young elite, a brand new generation of millionaires, aged 40-45, has been formed.

The study further revealed that about two-thirds of the current millionaires live in Moscow and St Petersburg, though most of them come from the provinces. Ten percent were born in villages but many of them graduated from universities.

The main source of income in Russia is raw materials and oil and gas for export.