MOSCOW, January 31 (RIA Novosti) – A decline in the value of the Russian ruble will be good for domestic holiday resorts, the state tourism agency said Thursday.
The ruble has depreciated by more than 6 percent this year against the euro-dollar currency basket used by the Central Bank. It is now at a historic low against the euro and is at its weakest level against the dollar for five years.
The head of the Federal Tourism Agency said that the currency’s weakness could boost bookings at Russia’s own holiday resorts from people unable to afford to travel abroad.
“Foreign trips will inevitably get more expensive. A lot will depend on how long-lasting this [weakening ruble] trend is, but in general it will have a positive effect on domestic manufacturing and service provision,” Alexander Radkov told reporters.
A weaker ruble means larger profits for Russian exporters and a windfall for the state budget, but officials have also warned that it could lead to a rise in inflation as imported goods become more expensive.