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Diving into the Russian market

By Rowena C. Burgos
Philippine Daily Inquirer

Last updated 14:12:00 03/04/2008

MANILA, Philippines—Scuba diving is now one of the world’s fastest-growing and most accessible adventure sports activities. This was evident during the Moscow International Diving Festival Golden Dolphin, recently held at Gostiny Dvor in Moscow, Russia.

Participants from 33 countries included manufacturers and distributors of diving and spear fishing equipment, underwater photo and video shops, scuba training schools, dive tourism companies, travel representatives, filmmakers and photographers and writers from global diving publications.

Photo and video competitions featuring old wrecks and underwater scenery were also held during the festival. Last year's five winning entries from Russia showcased Philippine marine life.

"The Philippine islands have the widest variety of marine life in the world. The smallest and the biggest fish can be found in our waters. Besides, diving in the Philippines gives you so many options that every dive will be different and mind-blowing, even if it is at the same dive site," says Cynthia Carrion, Department of Tourism Assistant Secretary for Sports and Wellness Tourism.

The best Philippine dive sites, Carrion says, are in Donsol, Sorsogon; Anilao, Batangas; Puerto Galera, Oriental Mindoro; Busuanga and Coron Bay in Palawan; Boracay Island, Aklan; Apo Reef, Mindoro; Moalboal, Mactan Island, Malapascua Island, Balicasag in Cebu; and Tubbataha Reefs, Sulu Sea.

The Philippines has had its fair share of dynamite fishing and cyanide poisoning. But, Carrion says, this is now a thing of the past.

"Such practices are being addressed by Philippine authorities, who are training local fisherman in the use of ecological net catching of small fish. They are also teaching good husbandry techniques for the sustainability of this industry. More Filipinos recognize a better future in tourism."

Campaign in Russia

The Philippine participation in the Golden Dolphin Festival since last year, and in the Spa and Health Moscow and Leisure Fair Moscow in 2005, has certainly generated a lot of interest in the country.

"We would like to make sure this interest is sustained by coming up with new marketing strategies that will keep the country in equal footing, if not better, with its Southeast Asian neighbors, especially now that Southeast Asian countries are making quite an impression among the Russians," Carrion says.

Russia's opening up to the world, its booming economy, political stability, as well as its people's fascination with Asia as an exotic destination, are the key factors that have made the DOT add Russia to its expanding list of relatively new target markets. Russian travelers have also been ranked by the World Tourism Organization as the 10th biggest spenders in the world.

With a population of 278 million, the Russian Federation and the Commonwealth of Independent States (CIS) are among the most promising markets in Europe. Tourism is its fastest growing sector, mainly due to the 70 years of travel restrictions under the old USSR that have now been removed.

Based on a recent WTO survey, the significant increase in the number of Russians traveling abroad is expected to place the country in the 10th rank with respect to tourism-producing countries in the year 2020.

This is why Edward Grigoriev, DOT market representative of Russia and the CIS, has been urging the country's tourism officials to aggressively market the Philippines in Russia and get more Russian tourists to visit the country.

Grigoriev says outbound tourists from Russia reached 6.4 million in 2006. The number of Russian tourists is projected to grow more as the Russian economy continues to register growth, boosted by high oil prices and the relatively cheap ruble (Russian currency), he adds.

"Russia faces its next straight year of growth, averaging 6.5 percent. Since 2000, investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10 percent over the last four years, and real personal incomes have averaged increases of 12 percent," he says.

Grigoriev says Russian tourists in the Philippines in 2006 numbered 12,000, a 30-percent increase over the 2005 figure. He estimated that the earnings from these tourists could reach $9.45 million.

Aggressive marketing

However, Grigoriev says little is known about the Philippines in Russia and the CIS.

In Southeast Asia, Thailand remains the most popular destination for Russian and CIS tourists, he points out. In 2006, over 130,000 tourists from Russia and CIS visited Thailand, with Pattaya getting the budget travelers. Two other destinations in Thailand-Phuket and Samui-also enjoyed brisk business from Russians, Grigoriev adds.

Indonesia came in a far second as a Southeast Asia destination for the Russian market with 23,000 arrivals in 2006, while Malaysia had 9,000 arrivals.

Aside from these three countries, the Philippines also competes with Goa in India, the Caribbean islands, Maldives and Vietnam, Grigoriev says.

He urges the Philippines to capitalize on its dry season up to the middle of June, since tourists from Russia and CIS prefer traveling during the winter season.

"The Russian tourists spend about $2,000 on airfare and would be willing to spend the same amount during their stay in the Philippines," Grigoriev says.

The DOT has reported that from January to August 2007, tourist arrivals from Russia and the CIS grew by 7.2 percent compared to the same period in 2006. They are currently the Philippines' seventh biggest source of tourists from the European region.

"The Philippines has all the necessary things for Russian divers. It has a lot of dive sites which are different from one another. They have marvelous underwater world and resorts. The country is an oasis of good Filipino dive shops. There are qualified instructors and delicious food. That's why when we're in the Philippines, we try to maximize our fun there. The country is a perfect blend of nature and people," Grigoriev says.

     


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