Business label: business tourism proposed to be prescribed in the legislation
The Union of Business Tourism Agencies, which unites the largest players in this market, proposed to create a separate OKVED (directory of codes indicating business lines) for companies engaged in this segment. The need for the code to appear in the organization is explained by the lack of transparency of the market. This will strengthen the development of a competitive environment in the industry, as well as create uniform standards of work for players. Now, according to business estimates, business trips account for more than 18% of all tourist trips, and the market volume has exceeded 1.5 trillion rubles. The Ministry of Economic Development considered the initiative redundant.
What the business offers
The largest players in the business tourism market have proposed to the Ministry of Economic Development to create a separate OKVED (type of activity code according to the all-Russian classifier) for companies engaged in this segment. Dmitry Gorin, Chairman of the Board of the Union of Business Tourism Agencies (SAD) and Vice President of the Russian Union of Travel Industry (PCT), sent a letter to Dmitry Vakhrukov, Deputy Minister of Economic Development. Izvestia has reviewed the document. The authenticity of the letter was confirmed by three sources in the union, and a representative of the Ministry of Economic Development confirmed its receipt.
Currently, industry participants work under the OKVED 79.90 ("Other booking services and related activities"), 79.11 ("Activities of travel agencies") and 79.12 ("Activities of tour operators"). The union believes that the lack of a separate code in the classifier prevents the creation of uniform standards for the industry. The need for changes in the GARDEN is explained by the lack of transparency of the market due to the "lack of objective data." This, in turn, has a negative impact on the development of the competitive environment, the letter says.
By the end of 2024, the business tourism market amounted to 1.57 trillion rubles, which is 27% more than a year earlier, according to the data from the GARDEN. Its share is more than 18% of all tourist trips, the industry organization estimates. Most of them are in domestic destinations, with Moscow, St. Petersburg and Yekaterinburg among the three most in demand cities, the representative of the Ministry of Economic Development added.
However, the business tourism market in Russia today remains "invisible" to the government and investors, said Lyubov Vasilyeva, head of the Ostrovok Business Trip service. According to her, business cannot assess the volume and contributions of the industry to the economy, because companies involved in organizing such trips formally belong to classical tourism. Although, in fact, their work is "completely different," the top manager added.
The lack of its own "passport" in the form of a separate OKVED is a "systemic problem" for the industry, hindering its development, said Galina Polishchuk, Managing Director of Vipservice corporate business. Companies are forced to adapt to the legislative framework created for mass outbound tourism, she explained. At the same time, the activities of business tourism agencies are radically different in terms of their work model, risks and client requests. Such legal uncertainty creates a field for unfair competition, she believes.
Due to the lack of a separate OKVED, business travel companies face misunderstandings from banks and government agencies in situations related to lending or participation in government support programs, Lyubov Vasilyeva added. According to her, the business tourism industry is forced to work with requirements developed for tour operators that do not take into account the specifics of the work, such as licensing and financial guarantees.
The Ministry of Economic Development considers the allocation of a separate OKVED code for business tourism to be "excessive detail," a representative of the department said. They believe that this will lead to more complicated statistical accounting and administration, as well as to duplication of existing codes.
How an initiative can change the market
The introduction of a separate OKVED for business tourism will allow for a better segmentation of the travel services market, agrees Tatiana Lenshina, Executive director of Trivio's travel management service. It will also allow the government to see the real scale of the industry, take into account its contribution to the development of the economy and plan support measures, Lyubov Vasilyeva added. Companies in this field will be able to attract investments more easily and participate in relevant initiatives, she explained.
Currently, the business tourism industry does not have its own government support programs. But companies are subject to a measure according to which tour operators selling tourist products in the country are exempt from VAT, said a representative of the Ministry of Economic Development. It applies to all market participants and is aimed at reducing the tax burden and stimulating the development of the Russian tourism industry, he recalled.
Business tourism is focused on corporate clients and solving business problems, whereas classical tourism focuses on recreation for individuals, said Yulia Lipatova, Managing Director of the Aero Club. These segments have different requirements, operating models, and regulatory features, she points out. The initiative will help stimulate the growth of the industry, the top manager believes. According to her, a clear definition of the segment can attract new players, contribute to the development of digital services and improve the quality of services in the market.
The new code will also streamline the procurement system, including government procurement, says Tatiana Lenshina. Now, in order to attract a travel service provider, there is a possibility to choose an unscrupulous supplier who does not have the necessary competencies, she noted. The presence of such a code will allow service customers to narrow down the range of likely suppliers and protect them from the possible appearance in the tender of an ordinary travel agency that is unable to perform the stated amount of work efficiently, she concluded.
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