Lithuania entices Russian tourists

Lithuania has taken new initiatives to boost its tourism industry, including vast infrastructure improvements and a major promotion campaign in Russia, which promises to be the largest potential market.

Despite a reduction in numbers in recent years, Russian tourists are returning en masse to Lithuania again. This year Palanga saw an almost 50 percent increase in the amount of guests, most of whom came from Russia.

To capitalize on this trend, Lithuania has started holding meetings with Russian tourist industry and press representatives more than twice a year.

At a meeting last week at the Baltusaitis House in Moscow, Lithuanian government and tourism officials shared development perspectives in the industry and clarified visa-related issues.

Justinas Karosad, president of the resorts and tourism development commission and a member of Seima (Lithuania's parliament), said, "Three years ago the government accepted a development scheme for the resorts for the next 10 to 15 years. Two years ago we passed a law whereby the main resorts now have advantages in terms of infrastructure development."

Karosad said that the Seima this month enacted a law facilitating financing and development of various tourist sites and infrastructure, one of which reduces VAT tax on accommodations from 8 percent to 5 percent.

Better still, tourism officials have a concept for vacationing in Lithuania. "We want to turn Lithuania into a mobile, bicycle tourism country – our climate and countryside certainly allow it. In addition to bike trails, renovation is also taking place Lithuania's numerous nature parks, where the trend is toward Western-style campgrounds," said Alvitis Luksevicius, director of Lithuania's State Tourism Department.

"The first segment will be 42 kilometers of trails near the coastline."

Druskininkai, Lithuania's largest resort, is taking the lead in becoming more attractive to prospective guests, with a number of improvements - such as new bike trails around the surrounding countryside - that should appeal to Western travelers.

"After Lithuania became independent, the resort ran into difficulties," said Kristina Miskiniene, deputy mayor of Druskininkai.

"The amount of visitors fell from 100,000 to 86,000. In 1999 it reached a critical low of 40,000. In 2000, a new strategy was introduced, and part of the plan was to make the resort more family-oriented. Investments have increased around tenfold over the past three years. About $41 million have been invested from various sources in the city's infrastructure, including things that make it more attractive to entire families."

Though Palanga is booming, overall tourism statistics in the country paint a mixed picture. According to data provided by the Lithuanian border control, 3.14 million foreigners visited Lithuania in the third quarter of this year, slightly less than last year.

However, according to the Bank of Lithuania, profits from tourism from January to September totaled more than 1.28 billion lits (376 million euros), or 9.4 percent more than last year for the same period.

The hospitality industry is expanding rapidly, with new hotels scheduled to open up every month in early 2003, which will double the amount of rooms available from 2,500 to 5,000. This includes two new luxury class hotels in Vilnius from the Crown Plaza and Kempinski hotel conglomerates.

Existing Vilnius hotels, such as the Villon Le Merdien, are expanding their facilities with such amenities as conference centers to keep up with the competition. The Reval Hotel is being fully renovated and will open in May. In addition to the high-end accommodations, two new economy-class hotels with room rates of about $25 will open next year.

Russian tour operators are concerned about rising prices in Lithuania, fueled by all the new development, which may not be amenable to Russian vacation budgets. Luksevicius said that some price increases were inevitable, but the increased competition between growing numbers of tour operators and hotels would help keep prices reasonably low.

Also, the Kaliningrad visa issue and Lithuania's eventual EU and NATO accession have also raised apprehensions among potential Russian travelers.

Lithuanian Ambassador to Russia Rimantas Sidlauskas said, "Tourism is a priority for us because we don't have any considerable riches apart from our landscapes and countryside."

Sidlauskas added that the Russian and Lithuanian economies are both improving, which most likely means that people will have more money and may travel more, rediscovering those places to which they were used to visiting before."

According to Antanans Muralis, consul at the Lithuanian Embassy, the visa regime is not expected to change in the near future.

"Immaterial of whether someone wants to spend one day, 10 days or a month, we issue the same single-entry visa for the same price," said Muralis. "No changes are expected until we become a Schengen nation."

Lithuania is expected to join the EU on May 1, 2004.

Currently, a visa for a Russian citizen costs 15 euros, while children and senior citizens over 65 may receive visas for free. Visas are obtained by showing receipt of a purchased tour program, an application and a photograph.

Though normally issued within five working days, visas can be issued in one day for the cost of 25 euros. For further convenience, a Lithuanian Consulate will open next year in the Belarusian city of Grodna which will issue visas to Belarusian and Russian tourists.