Finland fears number of Russian tourists may decline

New customs rules at heart of problem

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Russia’s new customs regulations may sharply decrease the number of Russians making shopping trips to Finland.
      Since the beginning of February, travellers have been allowed to bring into Russia a total of only 35 kilos of goods without duty. Previously the limit was 50 kilos.
      Before February, Russian travellers could visit Finland once a week, whereas today it is possible to pay a tax-free visit to Finland only once a month.
      The Lappeenranta-based Research and Analysis Centre TAK, which conducts surveys among Russian tourists, estimates that the number of Russian travellers could decrease by 10 to 50 percent. TAK’s Managing Director Pasi Nurkka notes that the time restriction of visits can cut down travelling to Finland.
     
In 2005, Russians made 1.6 million trips to Finland. Almost half of the travel was in the form of short shopping hops.
      However, when the window of opportunity for bringing goods back into Russia without duty is narrowed, the attraction of Finland as a shopping destination is bound to weaken.
      "The most important reason why Russians visit Finland is the possibility to buy goods cheaper. When the prices of goods rise, as a result of import customs duties, tourism's attraction wanes”, Nurkka observes.
      On the other hand, the changes in the customs regulations are not believed to have any effect on Russian vacationers. Last year, one in four Russian travellers named "holiday" as the reason for their trip.
     
The restrictions of the customs regulations may cause noticeable losses to some of the Russians’ favourite shops in Southern and Eastern Finland. After all, Russian visitors spend some EUR 400 million in Finland annually. Cities like Lappeenranta, close to the border, have benefited considerably from cross-border shopping.
      ”The law may cut down on shopping trips to Finland even radically”, notes Arto Asikainen, the head of the Moscow office of the Finnish Tourist Board.
      The changes appear to have made a difference at the border already. While the number of trips suggested an increase of 15 percent still during the first weeks of the current year, it fell last week compared with the corresponding period in 2005.
     
However, the situation at the Finnish consulates is quite the opposite. The Finnish consulate in St. Petersburg granted Russian travellers a total of 45,000 visas to Finland over January through February, which is 60 percent more than the corresponding figure in 2005.
      Asikainen estimates that the growth is a result of Finland’s increased attraction as a tourist destination. An earlier article pointed to the rising numbers choosing to spend Christmas and the New Year on this side of the border.


Previously in HS International Edition:
  Christmas and New Year in Finland again attract Russian tourists (12.12.2005)
  Visa backlog hits Finnish consulate in St. Petersburg (1.12.2005)

Links:
  Research and Analysis Center TAK
  Finnish Tourist Board MEK

Helsingin Sanomat