Annual growth in hotel property investments surge by 27% in 2025 compared to previous years
Booming Domestic Tourism in Russia: A Year of Growth and Expansion
In 2025, Russian domestic tourism is witnessing a surge, driven by high domestic demand, geopolitical restrictions limiting inbound international tourism, and increased investments in the sector.
The domestic tourist flow in Russia has exceeded 75 million people, reflecting a strong recovery and growth in internal travel despite international complexities. This growth is evident in various aspects of the tourism industry.
Key factors contributing to this growth include:
- Geopolitical context and restricted inbound tourism: Foreign visitor numbers to Russia remain significantly below pre-pandemic levels due to geopolitical tensions and travel restrictions, with inbound tourism only about one-third of 2019 levels. This has shifted focus to boosting domestic tourism.
- Rising domestic demand and outbound shifts: With fewer Russians traveling abroad—due in part to rising costs and stricter foreign visa and residency rules in popular destinations like Turkey—demand for domestic tourism has risen sharply. For instance, tours to niche destinations such as North Korea have also gained in Russian tourist interest but remain limited and exclusive.
- Hotel investments and infrastructure: To accommodate this increase in domestic tourists, investments in hotel infrastructure and air travel capacity have expanded. Russian airlines have increased their fleet buybacks to stabilize air travel internally, and regional hubs like Mineralnye Vody saw passenger flow growth of 21% in late 2023, indicating infrastructure capacity building.
- Industry statistics: The total turnover of hotels in the first half of 2025 in Russia as a whole increased by 15% year-on-year (to 500.2 billion rubles). Additionally, investments in Russian hotel real estate grew by 27% year-on-year to 15 billion rubles in the same period. From January to May 2025, 32 million tourist trips were made in Russia, an increase of 6.5% compared to the previous year.
Programs for the comprehensive development of territories and the growth of domestic tourism are contributing to increased investment interest. Government initiatives, including subsidies and preferential financing for hotel construction, are supporting investment growth. For example, 367 hotels with a total of 78,000 rooms are being created in Russia under a preferential lending program.
The tourism sector is also seeing growth in other areas. The number of registrations of tourist companies increased by 12%, the number of new employees by 4%, and the median salary in the industry by 20% (to 79,300 rubles). The turnover of travel companies grew by 38% in 2024, and in the first half of 2025, the growth accelerated. The volume of hotel deals in the same period increased by 24% compared to 2024, reaching 6.9 billion rubles.
A project titled "What Have I Not Seen Yet?" is being continued by DK.RU, encouraging Russian residents to explore historical, cultural, and natural attractions within the country. A notable development is the construction of a resort for thousands of vacationers near Yekaterinburg.
Overall, 2025 sees Russian domestic tourism supported by stronger internal travel demand, state-supported airline and hotel investments, and a continuing reshaping of travel patterns driven by geopolitical realities and external cost pressures. This dynamic is likely to sustain the sector’s growth and infrastructure development throughout 2025.
