Goods and Services Market
Tourism

Tourism is ranked as the most important branch in the sphere of services. In 2001 the Government of the republic managed to provide escalating of positive tendencies in tourism and to achieve the highest rates of development of branch for the last 10 years.

By the decision of board of the Ministry of Economic Development and Trade of the Russian Federation dated May 29, 2001, the Republic of Karelia together with the Kaliningrad region are recognized as the regions most dynamically developing tourist activity in the European part of Russia. Experience of the Republic of Karelia is used now at elaborating the strategy of development of tourism in the Northwest Federal District. On the estimated data the general number of visitors of the Republic of Karelia in 2001 have exceeded 1 million persons. Thus, the cumulative income of all kinds of entry tourism in the Republic of Karelia is about 1.2-1.3 billion roubles.

Within the past year the flow of tourists to all basic tourist objects of the republic has increased. The number of businessmen and the organizations, which have received the license for the right of realization of international tourist activity, has increased up to 101 (64 in 1999, 75 in 2000). On the preliminary data the tourist firms of the republic have served 270 thousand tourists, what by 33 thousand (13.9%) exceeds the level of 2000. The volume of tourist and excursion services has increased from 73.9 million roubles up to 87 million roubles (17.7% of the gain).

The major factor constraining development of tourism in the Republic of Karelia is the backwardness of the tourist infrastructure, especially hotel facilities. The decision of the given problem in 2001 was carried out basically due to attraction of internal individual investments in the infrastructure of tourism.

On development of sphere of tourism in 2001 it has been involved 236 million roubles total from unappropriated sources.

In the Republic of Karelia the system of state regulation of the tourist activity is created based on the program and target approach. Development of the city and regional programs of development of tourism by local administrations, excepting Kondopozhsky region has been completed, according to which development of tourism on self-administrated territories is carried out.

The Government together with the Center of standardization, metrology and certification carried out the control of activity of tour agencies that promoted improvement of quality of tourist service in the republic.

In 2001 the Information Tourist Center of the Republic of Karelia (ITC of the RK) was open. The technological resource created in Karelia has no analogues in Russia and is called to provide the tourists coming to Karelia with the necessary information, to promote Karelian tourist products and investment projects on the Russian and international markets of tourist services, and to develop information tourist systems. On creation of the center 580 thousand roubles from the republican budget and 80 thousand Euro from the TACIS project was allocated.

The tourist Internet portal is under creation.

In 2001 the work on promotion of Karelia on the international and Russian markets of tourist services was continued. The Karelian tour agencies took part in international tourist exhibitions INWETEX (St.Petersburg, October), MITT (Moscow, March), and МАТКА (Helsinki, January).

The specialized exhibition "Karelia the tourist - 2001" that received the status of the international one was carried out. The problem of preparation of qualified personnel for the branch is solved so that in Petrozavodsk branch of Petrovsky college, in the Center of continuous education "KarelNOK" and in the republican educational center "Expert" 362 persons are trained in tourist specialities.

Under conditions of deficiency of budgetary financing the work on attraction of means of the international funds, programs and projects is actively conducted.

In 2001 construction of the visiting centre in the national park "Paanajarvi" in cost of 1.5 million EURO was begun within the framework of the TACIS SVS-project "Development of parks of Karelia". Production of goods and the commodity and services market require constant inflow of investments.

Within 1999-2001 in the tourist infrastructure it has been allocated about 12 million US dollars of individual investments. It is necessary to recognize as successful the operational experience in the stated sphere of the Open Society "Cellulose factory "Pitkaranta", the Open Society "Kemsky saw-woodworking mill", the Joint-Stock Company "North Inter House", the joint venture "Paanajarvi", the Open Company "Elis-club". The Joint-Stock Company "Alvi" has actively started construction of the cottage complex, the Open Company "Stroiinvestles" conducts works on construction the tourist complex for 150 places in the Spa "Marcial Waters". The Open Company "Promex" finishes construction of the hotel complex "Kuzova" in the town of Kem, and here the expansion of the tourist complex "Prichal" for 70 places is carried out.

The further development of the branch is related to the construction of small hotels and with the complex with the full set of tourist services.

The State Committee of the Republic of Karelia on Physical Culture, Sport and Tourism
Press Photo Report "Karelia the tourist - 2001"