Ministry for Sport Tourism and Youth Policy of

Ministry for Sport, Tourism and Youth Policy of the Russian Federation FEDERAL AGENCY FOR TOURISM «ISSUES ON THE APPROXIMATION OF RUSSIA AND EU TRAVEL AND TOURISM LEGISLATION» «NEW CHALLENGES FOR THE TRAVEL INDUSTRY: EFFICIENT CONSUMER PROTECTION) (IFTTA Europe Work-Shop 15 -17 April, 2010 ) Presenter: Pisarevsky E. L. , Dr Deputy head of Rostourism Moscow, April 17, 2010 1

Russia and European Union. Tourism: Facts & Figures Population 141 927 297 499 673 325 2, 5 (6, 3) 5 (10) Tourism in labour force (including related sector) % 5, 7 12 Russia-EU tourism expenditure (bln. US $) 3, 1 8, 9 Contribution of tourism to GDP( including related sector) % WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 2

EU. Russian tourist arrivals 2009 Russian tourists in EU Business 577 803 (-30%); Tourism and leisure 3 120 858 (-12, 6%); Private 5 064 353 (+5%) Tourist arrivals 2008 (%) Finland 2 509 713 - 0, 3 Estonia 1 564 570 + 7, 5 Germany 825 749 -6 Lithuania 617 289 - 10 Italy Total 8 763 014 (-15, 6%, 2008) Largest destination 421 713 -17 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 3

Russia. EU tourist arrivals 2009 EU tourists in Russia Tourism and leisure 1 268 772 (-8, 5%); Private 1 525 109 (+3%) Tourist arrivals 2009 2008 (%) Finland 993 300 +7 Estonia 884 049 +43 Germany 548 596 -6 543 507 -13 Latvia Business 2 148 877 (-4%); - Largest EU tourism donors countries Lithuania Total 4 942 758 (-11% , 2008) 516 838 +38 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 4

The key objective of the international co-operation between Russia and the EU in tourism § is to create a new Europe without borders, to provide the necessary background for comfortable and safe travel for Russian and EU citizens, as well as to allow the free exchange of services, information and finance in the tourism sector within the area between Lisbon and Vladivostok. § This requires an adequate legal groundwork. WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Steps of the Russian Federation, aimed at the improvement and further development of the legal bases for tourism § adopted a Russian Federation Strategy for Tourism Development to 2015. There are ongoing works to prepare a Federal target program for domestic and inbound tourism to 2020 with the total amount of investment coming to about 200 billion rubles; § adopted federal laws that provide for the necessary conditions for stimulating tourism development on a municipal level; § actively stimulates lawmaking in tourism matters in regions of the Russian Federation (regional laws, target programs, tourism development strategies etc. ); § adopted a system of financial security for a tour operator’s responsibility. This is based on transparent accountability of tourist companies and on a differential approach to the size of their financial security, which itself depends on the financial performance of the tour operator; § secured efficient functioning of the uniform federal tour operators register; WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Steps of the Russian Federation aimed at the improvement and further development of the legal bases for tourism § adopted new rules for passenger and luggage airline transportation; § initiated preparation of new regulatory legal acts that concern the classification of objects of the tourism industry (hotels, ski resorts, beaches); § provided legal bases, enabling the operation of self-regulating organizations in the tourism sector; § provided support to small-scale and medium-sized enterprises in the tourism sector (reduce the amount of financial provision required from tour operators, introducing special tax treatment etc. ); § initiated an information system that warns tourists of safety threats in Russia and abroad (“Travel advice”); § simplified visa formalities foreign tourists arriving to Russia by cruise liners and ferries (72 -hour visa-free entry); visa-free entry to Russia foreign citizens of a number of states (Israel, Brazil etc. ); WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Baseline Conditions of Law Enforcement Practice and Legislation Concerning Tourist Activity Primary trends: Implementation and development of legal norms aimed at strengthening of guarantees and efficient protection of rights and legitimate interests of the tourist products consumers, quality and safety of tourism Strengthening of financial responsibility on the side of the tourist companies and, as a consequence, making tourism business more transparent, stable and investment-attractive Occurrence of legal instruments to regulate the issues of classification and standardization in different segments of tourist industry (means of accommodation, beaches, alpine skiing tracks and etc. ) Forming of legal basis for self-regulation on the tourist market, including efficient elaboration of self-regulating organizations (SRO) rulemaking (associations (unions) of tour operators, banks and insurers) Complexity of legal regulation in the sphere of tourism including the availability of large number of «tourist norms» in other fields of legislation closely related to the tourist law Development of regional and local law-making in the sphere of tourism and its unification Harmonization of the RF legislation and the law of the EU, CIS countries legislations and others WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 8

Data on quantity of the tour operators included in the Unified federal register of tour operators (on October, 1 st 2009 – on April, 8 th 2010) Domes tic Touris m Tour operato rs The international tourism Kinds of financial security Inbound Tourism Outgoing Tourism The size of financial security, Million, rbl. Total Bank guarantees 0, 5 10 30 60 Civil liability insurance of tour operator 100 08. 04. 2010 3625 1553 546 1455 34 37 31 3594 01. 10. 2009 4248 1811 976 1380 44 37 27 4221 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 9

Structure of the Unified federal register of tour operators depending on sphere of activity WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 10

Structure of the Unified federal register of International tour operators (depending on the size of financial security) WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 11

Things to be done § formulate the legal basis for providing insurance for domestic and outbound tourism; work out a set of standards for providing professional medical assistance to foreign tourists on the territory of the Russian Federation; § develop uniform rules and standards that would regulate the work of travel agents (retailers), tour guides, interpreters and instructors who provide high risk services; § develop new qualification requirements, applied to the tourism industry employees, as well as statutory documents that would regulate organizational issues and the implementation process of professional certification in the tourism industry; § work out a mechanism for the state support of social tourism (taxation and other instruments); WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Other things to be done § improve the rules and standards, applied to services in the retail selling of tourist products and measures of legal liability, incurred by tour operators, travel agents, carriers and other parties of the tourism industry, for the quality and safety of the rendered services, as well as against any breach of deadlines for rendering such services; § develop the legal basis for the information support system in tourism, which include the preparation of legal acts that would regulate the standards of electronic commerce in the tourism sector; § simplify formalities in tourism and liberalize entrepreneurship. WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Russia - Israel Russian tourists in Israel Total 89 098 (+27%) Business 13 336 (-41%); Tourism and leisure 46 451 (+42%); Private 28 358 (+103%); Other 953 (-11%) Tourist arrivals Countr y 2007 г. 2008 г. 2009 г. Israel 64 952 70 289 89 098 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE (+/-)% 2008/200 9 г. +27 14

Russia - Israel tourists in Russia Total 226 414 (+5%) Business 3 675 (-38%); Tourism and leisure 134 684 (+36%); Private 72 468 (-22%); Other 15 587 (-12%) Tourist arrivals Countr y 2007 г. 2008 г. 2009 г. Israel 151 809 215 402 226 414 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE (+/-)% 2008/200 9 г. +5 15

Legal bases of the legal co-operation between Russia and the EU in tourism § International Covenant on Civil and Political Rights (1966) and other UN documents; § THE FINAL ACT OF THE CONFERENCE ON SECURITY AND COOPERATION IN EUROPE (Helsinki, August 1, 1975), § THE CONFERENCE ON SECURITY AND CO-OPERATION IN EUROPE. CHARTER OF PARIS FOR A NEW EUROPE (The final document of the Conference on Security and Co-operation in Europe, held in Paris) (Paris, November 21, 1990) § AGREEMENT ON PARTNERSHIP AND COOPERATION ESTABLISHING A PARTNERSHIP BETWEEN THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES, OF ONE PART, AND THE RUSSIAN FEDERATION, OF THE OTHER PART (Corfu, June 24, 1994) WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Legal bases of the legal co-operation between Russia and the EU in tourism § Common strategy of the European Union on Russia (1999) § AGREEMENT BETWEEN THE RUSSIAN FEDERATION AND THE EUROPEAN COMMUNITY ON THE FACILITATION OF THE ISSUANCE OF VISAS TO THE CITIZENS OF THE RUSSIAN FEDERATION AND THE EUROPEAN UNION (Sochi, May 25, 2006) § “Road maps” for the creation of four common spaces, approved at the Russia-EU summit, Moscow, May 10, 2005. § Documents of the UN World Tourism Organization (UNWTO) WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

The unique experience of the EU in forming of the legislation § Council Directive 90/314/EEC of June 13, 1990 on package travels, package holidays and package tours (OJ 1990 L 158/59), § Directive 85/577/EEC of December 20, 1985 to protect consumers in respect of contracts, negotiated away from business premises; § Directive 93/13/EEC of April 5, 1993 on unfair terms in consumer contracts; Directive 97/7/EG of the European Parliament and the Council of May 20, 1997 on the protection of consumers in respect to distance contracts; § Council Directive 86/653/EEC on the coordination of the laws of the Member States relating to self-employed commercial agents (18. 12. 1986), § DIRECTIVE 2006/123/EC of the EUROPEAN PARLIAMENT AND THE COUNCIL ON SERVICES IN THE INTERNAL MARKET (Strasbourg, December 12, 2006), § Regulation (EC) No. 810/2009 OF THE EUROPEAN PARLIAMENT AND COUNCIL of July 13, 2009 establishing a Community Code on visas (Visa code) and others. WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

The directions for the approximation and harmonization of Russian and the EU laws § Studying the possibility of working out an agreement between Russia and the EU in tourism either in the scope of the common partnership and co-operation agreement between Russia and the EU under development, or in the scope of a separate agreement on all aspects of co-operation in tourism development. WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Russia and EU tourism agreement. Legal issues § § § Legal inventory, approximation and harmonization of laws, formation of a uniform law-enforcement practice in tourism activities at the central (federal), regional and local levels, including the harmonization of law regulation principles, identification of stages and joint measures on the development of laws; Assistance in forming best practices, business intercourse and business practices in tourism; Assistance to regional and municipal authorities in the development of tourism on their territories (preparation of model regulatory legal acts and other legal documents that are required for tourism development); Optimization of case trials in economic and consumer disputes that concern tourism issues, assistance in the establishment of joint courts of arbitration and their functioning, development of an institution of mediation that would regulate economic and consumer disputes and disagreements; Consolidation of efforts of the juridical community in tourism issues for its active participation in providing legal support for tourism (establishment of lawyer associations, working on tourism issues, participation in international associations (IFTTA) etc. WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Russia and EU tourism agreement. Public governance and regulation of tourism activities § Coordination of lawmaking, law enforcement and right protection issues in tourism, including participation of the UNWTO and other international governmental and non-governmental organizations; § Creation of a mechanism that would provide for consultancy and dialogue opportunities, transparency, predictability and proportionality of tourism market regulation systems; § Information support in tourism, exchange of statistics and other tourist information of interest; § Development of business contacts between national business associations in the tourism sector, encouraging high standards of business ethics, and joint action in the elimination of business malpractices; § Organization of workshops and other official meetings of state authorities which are in charge of tourism, together with the organization of conferences and consultations on urgent issues for tourism development; WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Russia and EU tourism agreement § Public and private partnership and special economic regulation (tourism and recreation areas, concessions etc. ), promotion of investment into tourism; § Development and implementation of common classification and standardization principles of the tourism industry objects, classification of tourism resources; § Simplification of formal procedures in tourism and the liberalization of entrepreneurship; § § Promotion of co-operation between business associations; Providing support in tourism industry staffing WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Russia and EU tourism agreement § Education and additional training of personnel for the tourism industry, as well as establishing and developing contacts between educational and scientific institutions; § Identification of common principles of labor regulation in the tourism industry, harmonization of qualification requirements applied to positions within the tourism industry, in addition to the organization and implementation of professional certification of personnel in accordance with international standards; § Promotion of tourist destinations and joint tourism products offered by Russian and European entrepreneurs (http: //www. visiteurope. com/home. aspx) WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

Thanks a lot for your attention! WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE

FEDERAL AGENCY FOR TOURISM WWW. RUSSIATOURISM. RU Декабрь 2008 WWW. RUSSIATOURISM. RU – RUSSIAN FEDERAL TOURISM AGENCY OFFICIAL WEBSITE 25