Hospitality Sector in St. Petersburg St. Petersburg Government
2012
SaintPetersburg
1,439 4,953.2
Territory:
km
Population: 3,442 people/km
thousand people
59.54
billion dollars GRP: 12.02 thousand dollars per person
Export:
Import:
20,577 32,656
million dollars
million dollars
FDI:
1,074.1
million dollars
Capital investment:
9,118
million dollars
Hospitality Sector in St. Petersburg
Introduction
Contents
St. Petersburg is one of the major tourist destinations Europe combining the rich cultural and historical heritage and the image of the growing conference and exhibition centre.
1. Hospitality Sector in St. Petersburg
6
2. Incoming Foreign Visitors
8
3. Key Hospitality Sector Indicators
12
4. Hotel Market in St. Petersburg
16
5. Hospitality Sector Employees
19
6. Legal Regulation of the Hospitality Sector
20
7. Foreign Hotel Operators in St. Petersburg
21
In 2011, about 5.5 million tourists came to St. Petersburg alone in 2011, which is by 8% more than in 2010. According to a forecast made by the World Tourism Organization, if the Russian Federation offers a well-developed and modern tourist infrastructure, the number of foreign visitors to the country may reach 40 million per year. Potentially, by 2020 Russia can enter the top ten tourist destinations of the world. In 2004 the City of St. Petersburg launched the Hotel Infrastructure Development Programme with the status of a strategic municipal investment project. Each hotel developer is individually supported by the Committee for Investment and Strategic Projects (CISP) of the City Administration at all stages of project implementation, and this effective support greatly contributes to the speed of new hotel completion. As a result of this, the number of hotel rooms available to the visitors grows fast. In 2004 there were 550 hotels in St. Petersburg with the number of rooms and suites totalling 23,000. In 2011, these numbers grew to 687 hotels (a 25% increase) and 33,734 rooms. Additionally, over the last several years St. Petersburg welcomed such major international hotel operators as Kempinski, Corinthia, ACCOR (Novotel and IBIS brands), Rezidor SAS (Radisson SAS and Park Inn brands), Sokos Hotel, Marriott (Courtyard by Marriott brand), Reval Hotelligrupр, Starwood (W brand), Four Seasons Hotels & Resorts and a number of others. The premium quality of the city’s hotels is also confirmed by a number of international organizations. Thus, the major international travel website TripAdvisor included 10 St. Petersburg hotels in the list of 20 top Russian hotels.
Hospitality Sector in St. Petersburg
4 |5
1 Hospitality Sector in St. Petersburg 1.1
1.2
1. 61-63 Ligovsky Prospekt, Crowne Plaza St. Petersburg Ligovsky (206 rooms, 4*), brand – Crown Plaza, operator – Intercontinental Hotels Group, investor – OOO Desna Development
Hotel Capacity in St. Petersburg
2. 6 Voznesensky Prospekt, W St. Petersburg , (137 rooms, 5*), brand – W, operator – Starwood Hotels & Resorts, investor – OOO R.E.D.
The study carried out by the Committee for Investment and Strategic Projects demonstrated that there are 643 hotels in St. Petersburg with the total of 27,931 rooms and suites. With the addition of resorts and spas, this number increases to 33, 734 rooms (687 hospitality facilities).
3. 44 Ulitsa Vosstaniya, Demetra Art House, (60 rooms, 4*), brand – Demetra Art House, operator – Demetra.
Due to the active involvement of the city authorities, the number of hotel rooms grew by about 1,000 per year since 2008: New Hotels (2006–2011) 35
1400
30
6. 6 Pulkovskoye Shosse (294 rooms, 4*), brand - Crown Plaza Pulkovskaya, operator – IHG (opened on 20 December 2011)
20
7. 2A Rasstannaya Ulitsa, Bristol Hotel (120 rooms, 3*), investor – OOO Bolshoy Prospekt (opened on 21 December 2011)
22
1163
800
5. 1 Voznesensky Prospekt, House with Lions, (186 rooms, 5*), operator – Four Seasons Hotels & Resorts
25 1165
1265
1000
1402
1600
1200
4. 37 Bolshoy Prospekt (Petrogradskaya Storona), Vvedensky Hotel, (160 rooms, 4*), brand – Vvedensky, operator – ALROSA Hotels
35
New Hotel Rooms (2006–2011)
15
600
Hotels Commissioned into Operation in 2011
0
2007
7
2006
7
9
5
9
153
200
524
10
400
0 2006
Source: CISP
2007
2008
2009
2010
2011
2008
2009
2010
Source: CISP
The implementation of the Hotel Infrastructure Development Programme facilitated steady annual growth in the number of new hotels and hotel rooms: 153 rooms in 2006, 524 rooms in 2007, 1,295 rooms in 2008, 1402 rooms in 2009, 1165 rooms in 2010, and 1163 rooms in 2011.
2011
1.3 Hotel Market Segmentation by Hotel Class The majority of hotel rooms in St. Petersburg in 2011 were provided in 3-star and 4-star hotels (61% or 159 facilities), then follow 2-star hotels (17% or 130 facilities), mini hotels (9% or 271 facilities) and 5-star hotels (9% or 13 facilities).
The new hotels comply with the highest international standards, and some of them are managed by major international operators, including Kempinski, Corinthia, ACCOR, Rezidor SAS, Sokos Hotel and others. Hotel Market Segmentation by Hotel Class
271 130 116 70 43 13 Source: CISP
42% 20% 18% 11% 7% 2%
Mini Hotels Two stars Three stars One star Four stars Five stars
Hotel Room Distribution by Hotel Class
9159 8128 4887 2407 2374 976
33% 29% 17% 9% 9% 3%
Three stars Four stars Two stars Mini Hotels Five stars One star
Source: CISP
Hospitality Sector in St. Petersburg
6 |7
It should be noted that there are certain disproportions in the distribution of hotels by city district. Most hotels, including five-star and four-star hotels, are located in the Central District of St. Petersburg . Following the Central District in 2011 were Kurortny, Admiralteisky, Vasileostrovsky and Moskovsky districts. Distribution of Hotel Rooms by City Districts in 2011 (%) Central 25.7 Kurortny 18.1 Admiralteisky 10.4 Vasileostrovsky 9.1
2
Incoming Foreign Visitors (Air, Road and Sea Transport) In order to provide for success, the development of the hotel infrastructure must be accompanied by the improvement of tourist services, including easy and comfortable transport access to the city. One of the key entry gates to the city is Pulkovo Airport. In 2010, the project was launched with the aim of establishing it as a major international air hub. By 2039, its passenger throughput capacity will grow to 35 million passengers per year, which will provide for accommodating new visitors and opening new domestic and international air destinations. Additionally, this project envisages the development of divers support infrastructure, including business and commercial facilities. The total cost of the project will be over 47 billion rubles.
Moskovsky 8.7 Vyborgsky 4.3 Petrodvortsovy 3.8 Petrogradsky 2.9
Passenger Turnover of Pulkovo Airport (million) 10
Kirovsky 1.5 Kolpinsky 0.4 Kronshtadsky 0.1
8.4 6.8
Pushkinsky 1.6
7.1
4 4.3
Nevsky 1.9 Krasnoselsky 1.7
2008
2009
6.1
Frunzensky 2.1
6
5.1
Kalininsky 2.3
8
4.7
Primorsky 2.6
9.6
Krasnogvardeisky 2.8
2 0 2004
2005
2006
2007
2010
2011
Source: OOO Air Gates of the Northern Capital
During the first half of 2012, the number of passengers in Pulkovo Airport grew by 18.5% compared to the same period of 2011 to 4,898,182 people. During the same period, the number of international passengers (including CIS countries) grew by 23.4% to 2,607,944 people. The number of domestic passengers grew by 13.3% to 2,290,238 people. The number of landings/takeoffs increased by 11.2% and reached 58,915. The total takeoff weight reached 1, 934,469 tons, which is 12.8% more than in the same period of 2011. The main increase of passenger flows was to such international designations as UAE, Egypt and France. Among domestic and CIS destinations the most popular were Moscow, Rostov-on-Don, Ufa and Krasnoyarsk, as well as Minsk, Urgench and Samarkand. During the 2012 St. Petersburg International Economic Forum, Pulkovo Airport serviced 766 flights, which is 41.3% more than in 2011 (542 flights).
Hospitality Sector in St. Petersburg
8 |9
The development of the new sea passenger terminal with the total capacity of 1.5 million passengers per year facilitated a significant increase in the number of incoming tourists, as well as provided for inclusion of Northwest Russia into the sea cruise system of the Baltic Sea. The new port comprises four terminals for cruise liners and ferries (317 meters long and 9 deep). The total volume of investment in the project was 26.88 billion rubles. In 2009 in Hamburg the new port won the Seatrade Europe prize as the Best Transit Port of the Year, and in March 2011 received the Dream World Cruise Destination 2010 prize for the best port facilities. On 27 May 2011 the port was commissioned into full operation and handed over to the City of St. Petersburg .
St. Petersburg Port: Incoming Passengers and Vessels
521.8
364.5
273
428.5 323
317
299
396
100
274
306
299
200
300
300
364
400
324
500
0 2005
Incoming vessels
2006
2007
2008
2009
2010
2011
Passengers (thousand)
Source: OOO Sea Facade
In 2010, the new ferry line connecting St. Petersburg and Helsinki contributed greatly to the number of cruise tourists coming to the city. During the first eight months of 2012, the port welcomed 390,599 passengers (of which 116,243 passengers in August) from 206 sea vessels (including 58 in August). This was partly due to the active cooperation with the federal bodies of state power resulting in the introduction of the new visa regime: now cruise passengers may stay in the city for 72 hours without a visa. St. Petersburg is the biggest railway hub in Northwest Russia, and on the national scale is second only to Moscow. It connects Russian Northwest, East and South with Finland and Estonia, and is well connected to the sea routes to Western Europe. On the total, it serves 10 major railway routes serviced by 5 stations. All railways in St. Petersburg are operated by Oktyabrskaya Railways (branch of OAO Russian Railways). Sapsan, a high-speed train service, carries passengers between St. Petersburg and Moscow in only 3 hours 45 minutes. In December 2010, another high-speed railway service, Allegro, was launched between St. Petersburg and Helsinki with the average travel time of about 3 hours 30 minutes. The Sapsan and Allegro high-speed trains now carry over 7 thousand passengers daily.
Hospitality Sector in St. Petersburg
10 | 11
Key Hospitality Sector Indicators
In 2011 the majority of Russian visitors to St. Petersburg (884,700 people, or 59%) came to the city for “leisure activities.” There were also 440,400 Russian nationals coming to the city for business and professional reasons, and 4,500 came here for medical or rehabilitation services (steady growth since 2009).
Over the recent six years, the number of Russian and foreign hotel guests in St. Petersburg increased in proportion to the growing number of tourists.
According to the municipal statistics (Petrostat), the majority of foreign nationals (626,900 people, or 68%) came to St. Petersburg as pure tourists, while businessmen and professionals accounted for 25.5% of the total (235,300 people).
Incoming Tourists (million) 3,0
2.6
Russian Nationals
2.3
2.5
2.3
2.3
2.2
2.1
2.0
2.5
2.8
1,0
1.9
1,5
1.9
2,0
2.9
Distribution of Visitors Staying in St. Petersburg Hotels by Purpose of Visit (thousand)
2,5
1.8
3
2011
0,5
884.7
2010
632.0
0 2005
2006
2007
2008
2009
2010
Foreign Nationals
Source: CISP
2011
Russian Nationals
2009
2010
920.4
1234.4
2009
788.0
1012.4
2008
738.2
2024.4 1750.6
16478
2007
1292.2
2006
962.8 793.4
1017.9 0
Total guests
500
2540.2
892.4
1000
1500
2255.0 1811.3 2000
200
400
Russian nationals Foreign nationals
372.8 334.2 600
3.3
800
7.2
5.8 1.0 66.9
1000
0.0 94.8 1647.8
0.6 54.8 1292.2 1017.9
1200
1400
Religious
Leisure
Medical and rehabilitation
Other
1600
Source: Petrostat
Foreign Nationals 626.9
2010
467.5
2009
451.8
2008
235.3 298.7 208.4
517.0
2007
The number of Russian nationals staying in St. Petersburg hotels is traditionally higher than the number of foreign guests.
0.0 52.3 1012.4
Business and professional
Source: Petrostat
The decline in the numbers in 2009–2011 can be explained by the monitoring methodology (starting from 2009, small mini hotels have not been included in the statistics).
0.2 128.1 1234.4
Total Russian nationals
2011 2500
0.4 171.6 1501.6
542.9
612.5 0
2422.0
2.6
819.4
2006
1501.6
309.9
4.5
3.9
1002.9
2007
2011
470.2
566.6
2008
Hotel Accommodation Dynamics (thousand guests)
440.4
206.3
0
200
400
185.9
600
78.0
0.2
189.6
563.0
0.4
3.9 0.0 21.8 2.6 0.0
643.1
2006
0.0
920.4
788.0
738.2
0.0
3.4
58.2
3.2
168.9
892.4
40.6
962.8
7.4 7.3 26.1 793.4 800
1000
1200
1400
Total foreign nationals
Business and professional
Religious
Leisure
Medical and rehabilitation
Other
1600
Source: Petrostat
Hospitality Sector in St. Petersburg
12 | 13
In 2011, the majority of foreign visitors stayed in St. Petersburg hotels for 1–3 nights (1,162,000 people, or 77.4%), while 271,500 (18%) visitors stayed for 4–7 nights, and 54,600 visitors (4,3%) – for over a week. According to Petrostat, in 2011 about 751,000 foreign nationals staying in St. Petersburg hotels spent in the city less than 3 days 3 (95% of the total), 140,300 (17,8%) – 4–7 days, and 27,200 (3.5%) – over a week.
Distribution of Guests Staying in St. Petersburg Hotels by Length of Stay (thousand) Russian Nationals 2011
1162.0
2010
271.5
967.4
2009
208.2
709.2
2008
249.8
34.2 16.8 4.7 0.1 1.2
36.9 13.5 1.1 0.0 1.8
1202.6
2007
359.1
968.1
2006
240.0
807.3 0
200
400
39.5 12.3 7.8 0.4 5.6
167.4 600
800
70.3 9.7 5.5 0.2 0.4
43.0 7.7 2.5 0.2 1.9
30.7 9.4 2.5 0.1 0.2 1000
1200
1400
1600
1-3 nights
15-28 nights
92–182 nights
4-7 nights
29–91 nights
183 nights and above
8-14 nights Source: Petrostat
Foreign Nationals 2011
751.2
2010
140.3
661.5
2009
581.8
2008
567.2
2007
100.7 141.1
200
11.0 2.3 1.5 0.1 0.4
400
32.0 2.4 2.9 3.5 0.6 29.1 2.1 1.9 0.5 0.5
182.4
622.1 0
20.7 2.7 1.4 0.0 0.7
283.7
659.8
2006
24.0 1.7 1.0 0.2 0.3
138.1 600
25.3 5.0 2.0 0.6 0.3 800
1000
1200
1400
1600
1-3 nights
15–28 nights
92–182 nights
4-7 nights
29–91 nights
183 nights and above
8-14 nights Source: Petrostat
Hospitality Sector in St. Petersburg
14 | 15
Hotel Market in St. Petersburg
4 000
6343.0
2780.0
6 000
5647.0
8 000
3036.0
10 000
3843.0
12204.0
12 000
11599.0
14 000
5918.0
In 2006–2007 the St. Petersburg hotels had comparatively high average annual occupancy rates due to the deficit of hotel capacity and the growing number of visitors. The economic crisis first influenced the market by the end of 2008, and was felt by all types of hotels during 2009. In 2010 the best results in this respect were demonstrated by three-star hotels. During the next year the 3–4-star segment was the obvious leader, partly due to the increasing gap in the rates.
14491.0
Average Cost of Hotel Accommodation (rubles per night)
16 000
2 000
Average Annual Occupancy Rate in St. Petersburg Hotels by Hotel Type (%)
0 2009
2010
5*
Source: CISP
100
2011
4*
3*
80
In 2011, the typical level of profitability of operating hotels was 10–15%, while the hotel development projects were more profitable at 15-25%. The construction cost per 1 square meter (excluding the land plot) was 40-60 thousand rubles depending on the building type and characteristics.
69.0
46
49
56.0 52.0
58.7
42 20
39.0
32
Profitability of Hotels Development Projects (%)
0
3*
9
2004
2005
6
2007
2008
15.0
12
4*
15.0
5*
Source: CISP
14.0
2011
13.0
2010
11.1
2009
12.5
15 2008
13.8
40
60
14.0
60
68
2010
2011
3
The most expensive accommodation was demonstrated by five-star hotels (10,600 rubles per night for a standard two-piece suite in the low season and 18,400 rubles per night in the high season).
0 2006
2009
Source: CISP
Cost of Hotel Accommodation – High Season (rubles per night)
Cost of Hotel Accommodation – Low Season (rubles per night)
20 000
20 000 18 000
2 000
0
0 2009
Source: CISP
2010
5*
2011
4*
3*
Source: CISP
10591.0
8783.0 2009
2010
5*
3127.0
4 000
2 000
2187.0
6 000
4275.0
8 000
10121.0
7793.0
15624.0
12 000 10 000
2615.0
4 000
14 000
5013.0
6 000
3374.1
8 000
7020.0
10 000
3625.0
12 000
13667.0
14 000
16 000
4560.0
16 000
4893.0
18391.0
18 000
7186.0
4
2011
4*
3*
Hospitality Sector in St. Petersburg
16 | 17
5
Hospitality Sector Employees
5.1
Hospitality Sector Employees Average number of employees (excluding part-time employees) 2011
988
2010
1182
799 802
2009
701
858
2008
708
833
2007
704
654
2006 550 636 0
1383
1000
2409
1554
2394
1528
9822
2883
1980 1713
10220
3040
11555
2395
1818 2000
9658
10156
2827 3000
4000
998 5000
Average number of employees
6000
7000
8000
9000
Administrative
Hospitality
Managerial
Catering
10000
Source: Petrostat
According to Petrostat, the average monthly salary of the hospitality and catering sector employees grew by 40% since 2008 and in October 2011 reached 23,720 rubles.
5.2
Training of Hospitality Sector Specialists in St. Petersburg University degree in hospitality management: St. Petersburg State University of Engineering and Economics; Baltic Academy of Tourism and Business (non-governmental). Vocational diploma in hotel service: Petrovsky College; St. Petersburg Technical College for Management and Commerce; Tourist and Hospitality College of St. Petersburg ; Russian Traditional Culture College of St. Petersburg ; St. Petersburg Technical College; Vocational Department, St. Petersburg State University of Service and Economics; Vocational Department, St. Petersburg State University of Technology and Design; Nutrition Economics and Technology College, St. Petersburg Institute of Trade and Economics; Pushkin Leningrad State University College; St. Petersburg College of Tourism and Business (non-governmental). Source: The Committee on science and higher school of St.Petersburg
Hospitality Sector in St. Petersburg
18 | 19
Regulation of the Hospitality 6 Legal Sector of St. Petersburg
Hotel Operators 7 Foreign in St. Petersburg Hotel chains operating in St. Petersburg
6.1
List of Federal Regulatory Documents Concerning the Hospitality Sector
The following major international operators work in St. Petersburg : Kempinski Corinthia ACCOR Group (Novotel and IBIS brands)
1. Civil Code of the Russian Federation
Rezidor Hotel Group (Radisson SAS and Park Inn brands)
2. Law of the Russian Federation of 07 February 1992 No. 2300-1 «On protection of consumer rights»
Sokos Hotel
3. Federal Law of 24 November 1996 No. 132-FZ «On tourist activities in the Russian Federation» 4. Federal Law of 25.07.2002 No. 115 «On the legal status of foreign nationals in the Russian Federation» 5. Rules for Provision of Hotel Accommodation Services in the Russian Federation (approved by Resolution of the Government of the Russian Federation of 25 April 1997 No. 490) 6. GOST R 50645-94. Tourist Services. Hotel Classification 7. GOST R 51185-98. Tourist Services. Accommodation. General Requirements»
Marriott (Courtyard by Marriott and Renaissance brands) Reval Hotelligrupр Starwood Hotels & Resorts (W brand) Orient Express Hotels LLP Best Western International Rocco Forte Hotels InterContinental Hotels Group (IHG)
6.2
List of Municipal Regulations Concerning the Hospitality Sector in St. Petersburg
Top International Cronwell Hotels & Resorts Source: CISP
1. Resolution of the Government of St. Petersburg of 30 December 2010 No. 1813 (as amended on 02 August 2012) «On approval of the regulation on the procedure for cooperation of St. Petersburg bodies of executive power in preparation and taking decisions on allocation of real estate objects for construction, reconstruction and preparation for operation» 2. Resolution of the Government of St. Petersburg of 06 July 2004 No. 1268 (as amended on 16 December 2009) «On the Hotel Infrastructure Development Programme»
Hospitality Sector in St. Petersburg
20 | 21
Contacts: Š Committee for Investment and strategic projects
Entrance 6, Smolny 191060, St.Petersburg, Russia
Fax:
+7 (812) 576 6988 +7 (812) 576 6041 +7 (812) 576 6081
E-mail:
info@cisp.gov.spb.ru
Phone:
http://www.cisp-spb.ru/
St. Petersburg Government
www.st-petersburg.ru