Starting May 1st, the minimum financial security required to protect the liabilities of tour operators in Russia has been raised from 10 million to 25 million rubles. This increment, mandated by regulatory changes, mandates that tour companies deposit these funds into a designated account, where they are effectively frozen and can be accessed if the operator goes bankrupt. Industry experts suggest that this increase in financial guarantees may lead to higher tour prices.
This adjustment applies both to the minimum safeguard level for operators in outbound tourism and to those who have previously engaged in such activities. During the coronavirus pandemic, the financial guarantee level was reduced to 10 million rubles to alleviate the financial burden on businesses. This concession has now been revoked, leading to an increase in the minimum financial guarantee, as explained by Dmitry Gorin, Vice President of the Russian Union of the Tourism Industry (RST), in an interview with “RG”.
According to Gorin, the total amount of the deposit depends on the volume of overseas tours sold: the more tours sold, the higher the required deposit. For example, companies might contribute amounts ranging from 300 to 400 million rubles, while the total financial security for the liability of outbound tourism operators could reach up to 700 million rubles.
Typically, a tour operator’s liability is insured, but insurance is not free of cost. The companies will have to pay insurance premiums that may exceed one million rubles annually. These costs will ultimately be factored into the pricing of the travel products.
Currently, about 23 million rubles are held in personal liability funds, excluding insurance coverage, Gorin added.
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