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Minimal regional subsidy for tourism development due at $338,000

About half of the funds will go to the Far East and the Arctic, Russia's Minister of Economic Development Maxim Reshetnikov noted

MOSCOW, January 18. /TASS/. A minimal subsidy for development of tourism in Russia may be 30 million rubles ($338,000) per region. This approach will be effective also for the Far East districts, Russia's Minister of Economic Development Maxim Reshetnikov said at the government's meeting chaired by President Vladimir Putin.

"Small regions have received literally a few million rubles - such as Chukotka, the Nenets Autonomous Region, the Jewish Autonomous Region, Magadan and so on. And, correct, with just a few million rubles nothing significant can be done there. Therefore, our suggestion is to set a minimum subsidy amount at least at 30 million rubles per region. This means additional 200 million rubles per year ($2.25 million), which is relevant for 17 regions," he said.

About half of the funds will go to the Far East and the Arctic, the minister noted. The sources could be additional revenues from increased wine import duties from unfriendly countries. "Let me remind you - last year we raised those rates and agreed that half of the funds would be used to support tourism. <...> We have received significantly more money than we had planned. Therefore, from that half, which is due to be used for tourism, we could give 200 million rubles to support these small regions," he said.

Modular hotels

While only pre-fabricated structures can be used to make modular hotels, the Far East has only a few production facilities of the kind, the minister continued. "Thus, the businesses have to transport modules from Novosibirsk or Irkutsk by road, or by rail from almost the Moscow Region. The logistics costs are very high," he said.

The minister said it would be important to adjust the subsidies rules so that this year already the Far East and Arctic regions could determine which remote municipalities would not be subject to the condition, where such structures are pre-fabricated at plants only.

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