The Russian travel intermediaries industry is set to grow from RUR733.5bn ($24.62m) in 2012 to RUB1.10tr ($37bn) in 2016, increasing at a compound annual growth rate (CAGR) of 13.7%, according to a BRICdata report.

The study found Russian tourist volumes have increased from 152.8 million in 2007 to 170.6 million in 2011, registering a CAGR of 2.8% during the 2007-11 period.

Factors such as the country’s strong economy, rising disposable income levels and government initiatives to promote the country as a tourist destination have contributed to the growth, the report observed.

Travel and tourism in the country is expected to contribute 1.4% to Russia’s national gross domestic product (GDP) as well as 1.4% of the country’s total employment in 2011, the United Nations World Tourism Organization said.

According to the World Travel and Tourism Council (WTTC), investments in Russia’s travel and tourism industry are expected to account for 2.1% of the total investments in the country in 2011 and increase by 6.4% in 2012.

Growing internet penetration is expected to drive demand for online travel sites and the rapid development of e-commerce offers potential for the underpenetrated online travel market, the report said.

The full report ‘Emerging Opportunities and Growth Prospects in the Russian Travel Intermediaries Industry’ is available from BRICdata. Click here for more details.