Prices for St. Petersburg Hotels Are Close to European Levels
Research conducted by Jones Lang LaSalle Hotels shows that after a two-year decline the number of people visiting St. Petersburg is recovering faster than expected. The significant decline in hotel room prices, which was caused by greater competition, encouraged more tourists to visit the Northern Capital.
In 2009, the St. Petersburg hotel market suffered a difficult period with the average room price dropping 47.6% (in US dollar terms), while the number of rented rooms dropped 20.5%. This happened amid the background of two factors - the number of modern hotel rooms nearly doubled, which in large part was precipitated by the previously-established favourable conditions for entry onto the market by new players; and also due to a decrease in demand for hotel rooms. The changes wrought by the economic crisis in 2009 led hotel room prices in St. Petersburg to stabilise to the level of other European tourist capitals. In turn, this precipitated a rise in demand in 2010. The winners in 2010 were 3-star and 4-star hotels, which saw increases of 20%, while overall the market rose 17.7%.
''The decrease in the price of hotel rooms, and the increase in the quality of rooms will help to develop convention tourism,'' said ExpoForum JSC general director, Anatoly Erkulov. ''High hotel room prices are often named by our partners as among the main reason why the Northern Capital is not so favourable for international events. The market is developing, however, and as we now see the prices are dropping to more favourable levels. We believe that this is a result of the city government's well-planned investment policies that stimulated construction of new hotels.''
Russia's Justice Minister and Foreign Affairs Minister will meet with their European Commission colleagues in St. Petersburg on May 19 to discuss the possibility of abolishing travel visas, reported Interfax, citing a source in the Euro Commission.
GUP Vodokanal St Petersburg approved plans to modernise the water and sewer infrastructure on the territory of the new ExpoForum Convention and Exhibition Centre.
The German company, K3 Planungsgeselschaft mbH & Co. KG, completed the concept and zoning system for dining facilities at a 225 room 4-star hotel that will be built on the territory of the future ExpoForum Convention and Exhibition Centre.
The Inter-regional Department for Air Transport and Rescue in Northwest Russia signed off on ExpoForum's plans to build a convention and exhibition centre.
ExpoForum JSC joined the non-commercial organization, the Green Building Council, which seeks to foster and implement rules for ecologically-sound construction.
Gallup International canvassed St. Petersburg residents, asking them how they think the city should develop. Nearly two-thirds said the city should combine and utilise its opportunities as a tourism and business centre.