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Sales to Russian & Brazilian tourists decline 21%

Sales to Russian & Brazilian tourists decline 21%


Why did sales to Russian and Brazilian tourists decline in March 2018, with only Italy as the exception to the declines seen across all major destination markets?


17th April, 2018

Sales to Russian tourists registered a decline of 21% in March, which followed the 15% decline seen in February 2018, with all major destination markets registering double-digit declines, with the exception of Italy, which nevertheless posted a decline in sales of 9% to these tourists.

 

The downward pressure on the Ruble is reported to have been exacerbated by concerns around the pace of recovery in the Russian economy.

 

Where the economic stimulus of the 20 Trillion Ruble defense program has served to prop up the economy through the worst of the recession in recent years, this outlay is now past its peak.

 

In addition, the political tensions with the UK and the EU’s expression of solidarity with the UK, and the subsequent sanctions levied against Russian companies and oligarchs, has subsequently served to apply further downward pressure on the currency.

 

Furthermore, it is also reported to have resulted in a reverse capital flight from the West to Russia, and this repatriation of capital is likely also resulting in a repatriation of spend.

 

Following the triple-digit gains to Brazilian tourists in March 2017, sales to these tourists declined by 41% in March 2018.

 

The corruption allegations against former President Lula Da Silva has recently applied downward pressure on the Brazilian Real, and whilst this had subsided somewhat following the conviction charges, the rally has been short-lived as the decision has injected more uncertainty on the outcome of the October Presidential election.

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