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INVESTMENT INTO TRAVEL INDUSTRY. REGIONAL ASPECT
Д.К. Григорьева
ИНВЕСТИЦИОННЫЕ ПРОЦЕССЫ В ТУРИЗМЕ. РЕГИОНАЛЬНЫЙ АСПЕКТ
For 38% of countries tourism is the main source of revenue and for 83% of them it is one of five basic sources of revenue. Russia is rich in recreation resources and it has broad experience in touristic activities.
Tourism infrastructure plays a key role in tourism development. It is represented by the following key sectors of the economy:
• transport,
• hotel and restaurant services,
• commerce,
• building industry,
• production of consumer goods and many others.
Infrastructure is a socioeconomic development factor. It requires bankroll as well as revision of obsolete rules and economic and financial activities conduct routine.
Owing to the forming infrastructure tourist resources development is occurring, their appeal and availability for tourists are rising, tourist capacity of the territory is growing (without prejudice to the environment), injurious effect of regional natural climatic conditions is offset.
Tourism infrastructure is intended for functioning of all the tourism industry.
Tourism infrastructure can be seen as a system consisting of three levels (Figure 1):
The most important problems that claim close attention and serious approach to solve them are underdevelopment of the tourism infrastructure and lack of practice of favorable investment conditions creating by the subjects of the Russian Federation when constructing accommodation means.
According to the results of analysis carried out previously at the present time in Russia the considerable part of a resource base of tourism needs a renewal, as about 50% of accommodation means are uncategorical.
The importance of an integrated development of tourism infrastructure, which includes a full-scale construction of new accommodation means as well as an accompanying infrastructure (transport, food and beverage outlet, entertainment industry etc.), should be also noted.
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1st level
production infrastructure
2nd level
• organizations which can exist without tourists, but in the touristic places their activities expand
3rd level
infrastructure of tour operating transport infrastructure educational infastructure scientific infrastructure
goods of touristic demand prodaction enterprises trade infrastructure
hospitality industry (consists of enterprises of \accommodation and food services)
Figure 1 - Tourism infrastructure
The principles of financing organization should be oriented to the multiplicity of funding sources and propose fast and efficient innovation with its commercialization that ensures the growth of financial return from innovation.
At present the investment climate in the Russian Federation does not correspond with the potential of tourism development. Today a decreased amount of government financing, a lack of businesses own funds and an absence of a suitable capital formation strategy are not filling in by a private capital inflow.
According to the type of ownership all funding sources can be divided into:
• state investment resources (budgetary funds, government loans, holdings of shares, public property);
• investment resources (including financial) of business units, public organizations, individual persons, etc.
The budgetary funds are very important among all sources of investment activity in tourism. At these funds expense different target comprehensive programs and foreground government projects are realized. The investment resources of collective investors are represented as investments of insurance companies, investment funds and companies, private pension funds as well as businesses own funds, credit resources of commercial banks, other credit organizations, and investment banking firms.
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At the level of the state and subjects of the Russian Federation the funding sources are (Figure 2):
• own resources of budgetary and extra-budgetary funds,
• attracted funds of state insurance and credit and banking systems,
• borrowed resources as external (international borrowings) and internal debt of the state (state bonded and other loans).
At the enterprise level the funding sources are (Figure 3):
• own resources (benefits, depreciation allowances, insurance indemnities, intangible assets, temporarily surplus fixed and floating assets);
• attracted funds provided by sale of shares as well as contributions, categorical revenues, etc.;
• borrowed resources as public budget loans, banking and commercial credits.
Figure 2 - Funding sources at the level of the state and subjects of the Russian Federation
Tourist activity is based on:
own financial resources of tourist activity subjects, cash contributions of individuals and legal entities;
• borrowed resources (bonded loans, banking and public budget credits);
• charitable contributions, donations of different enterprises, establishments, organizations, and citizens;
• extra-budgetary funds;
• resources of the Russian Federation development fund which is based on business entities deductions irrespective of their proprietary forms;
• foreign investments;
• proceeds from tourist lotteries;
• other legal sources.
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Figure 3 - Funding sources at the enterprise level
All funding sources are divided into internal and external. The internal financing is effected on account of resources that a tourist enterprise itself owns and money received by its activity:
1. Authorized capital is a sum evidenced in the constituent documentation of tourist enterprise with state registration. The lower-limit dimension of the authorized capital can be1:
• for a limited liability company - 10000 rubles;
• for a nonpublic company - 10000 rubles;
• for a public company - 100000 rubles;
• for a newly registered bank - 300 million rubles.
• The lower-limit dimension of the authorized fund is:
• for a state unitary enterprise - 5000 minimum wages;
• for a municipal unitary enterprise - 1000 minimum wages.
2. Revaluation of noncurrent assets: permanent assets (buildings, constructions, equipment, etc.) and intangible assets (copyrights, know-how, software, etc.).
3. Additional capital (without revaluation). It can be formed of additional paid-in capital, exchange gain or special purpose funding sums got as investment money.
4. Retained earnings. It is a net profit less dividends paid to shareholders. The retained earnings can vary from one reporting period to another, but it is not always the result of a tourist enterprise revenue differentials. The dimension of the retained earnings can be influenced by: dimensional changes of money resources paid as dividends, tax changes, etc.
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The main sources of a tourist enterprise profit generation are:
- profit on rendering of tourist services or sale of a tourist product (it is the fundamental component of the total profit);
- profit on non-sale operations - share holding, granting of property on lease, stock dividends, proceeds of deposits, income from debenture holdings, proceeds of economic sanctions, etc.;
- profit on disposition of property (includes profit on sale of key assets -tangible assets, intangible assets, other enterprises stocks, etc.).
5. Reserves:
• reserves formed in accordance with legislation (companies reserve funds not exceeding 5% of the authorized capital sum). The dimension of the annual deductions must be not less than 5% of the annual net profit. The required reserve fund is meant for cover of loss, retirement of bonds and redemption of stocks. This fund cannot be used for other purposes.
• reserves formed in accordance with constituent documentation (companies reserve funds exceeding 5% of the authorized capital sum, reserve funds of limited liability companies and unitary enterprises).
• valuation reserves. Nowadays, the creation only of tree types of valuation reserves is allowable:
- bad debt reserve, also called an allowance for doubtful accounts, is a reduction in a company’s accounts receivable. The bad debt reserve is the amount of receivables that the company does not expect to actually collect;
- investment depreciation reserve. An organization forms this reserve in case of a stable considerable reduction of investments;
- inventory reserve. The inventory reserve is an asset contra account in which a company retains an estimated charge for inventory that it has not yet specifically identified, but which it expects is present and for which it must write down the value to some amount less than the cost at which it is currently recorded. There may be a variety of causes for such a write down, such as the obsolescence, spoilage, or theft of inventory.
• reserves for future expenses. A tourist organization can create reserves for:
- future vacation compensation;
- annual seniority benefits payments, annualizing award payments;
- repairs of fixed assets;
- production expenses on preparatory works in view of a seasonal nature of production;
- soil recultivation and realization of other environmental protection measures;
- repair of items meant for a lease under the leasing contract;
- warranty repair and service.
The external financing uses resources not connected with an enterprise activity: contributions from owners to the authorized fund, credit, debtors’ obligations, government subsidies, etc.
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In response to the tourism industry problems a federal target program «The development of domestic and inbound tourism in the Russian Federation in 2011 - 2018» has been established. This program implies an intensive growth and development of all the most popular types of tourism in the territory of the Russian Federation3.
During 7 years of this program a wide range of regions of the country as Yaroslavl, the Altai Territory, the Rostov Region must receive money resources.
The world and national economic troubles force the government to reduce expenses on the priority federal programs. The Decree of the Government of the Russian Federation of 2 August 2011 №644 «About the federal target program «The development of domestic and inbound tourism in the Russian Federation in 2011 - 2018» was modified by the Decree of the Government of the Russian Federation of 18 December 2014 №1407. As a result of these modifications the amount of financing of the program that had to raise the appeal of tourism in Russia to a new level was cut from 338,9 milliard rubles to 139,5 milliard rubles. Performance targets as the number of Russian and foreign tourists, the volume of touristic and hotel services are less ambitious now and they have reduced by half. The aggregate budget investment in the program will amount to 41808,3 million rubles and the financing of the program from the investments of private investors will amount to 97740,6 milliard rubles.
The capital investments in the program are decreasing according to the planned targets: in 2015 - 25,4 milliard rubles (37% reduction), in 2016 - 22,8 milliard rubles (66,6%), in 2017 - 18,6 milliard rubles (81%), in 2018 - 21,3 milliard rubles (74,7%). Initially the program implied that by 2018 the number of Russians accommodated in hotels in the home country would increase by 55% to 45 million people per year on the year 2010, and the number of the foreigners -by 538%, to 23 million people per year. According to the last amendments to the program the number of Russians reduced to 35 million people and the number of foreigners - to 8,7 million people. Thus 2010 targets increase will be 20,3% and 140,3%, respectively.
State investment money has to be spent first of all for the construction of civil engineering infrastructure complexes and the traffic development in the areas the most attractive for private investors. It will let private travel companies to reduce service costs that will make the travel business more profitable. It will also attract private businessmen into the tourist business to be engaged in its further development.
By the end of program realization the increase of inbound tourist flow more than in six times is expected. It will number 23 million people. And according to the statistics of 2013 the total inbound tourist flow of foreigners in Russia numbered 2,67 million people that is only 3.67% higher than in 2012.
These numbers are very low especially against the background of outbound tourism numbers. It is also expected that by the end of realization of the program «The development of domestic and inbound tourism in the Russian Federation»
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the situation will change and the tourism in Russia will become more profitable for the Russian economy and more attractive for foreign tourists at the same time.
Table 1. Performance of the federal target program «The development of domestic and inbound tourism in the Russian Federation in 2011 - 2018»
Financing sources Sum, milliard rubles Relative share, %
Federal budget resources 32844,5 23,5
the subjects of the Russian Federation and municipalities budget resources 8963,8 6,5
Extra-budgetary resources 97740,6 70
Total 139548,9 100
It is also planned to increase the popularity of domestic tourism: according to the plan the number of persons who want to take a rest and to improve their health will grow by half and will reach 45 million people. The relative weight of tourism as part of GDP (gross domestic product) can increase in 4-5 times2,3.
The government program «Culture and tourism development» (2013-2020) has been established in the Russian Federation. This program includes following subprograms: «Heritage», «Art», «Tourism», «Providing with necessary conditions for government program realization». The federal target programs as «The culture of Russia in 2012-2018» and «The development of domestic and inbound tourism in the Russian Federation in 2011-2018» are integrated in the government program. The «Domestic tourism development» in one of the development lines of the subprogram «Tourism ». The realization of this development line includes [2]:
• development of tourism and recreation complex of the Russian Federation;
• promotion of tourist products of the Russian Federation in the domestic tourism market.
There are three stages of this program realization: 2013-2014, 2015-2018, 2019-2020. The total funding of the subprogram is a little bit over 363 milliard rubles. However, 0,25% of this sum are from the federal budget resources, 18,3% - from consolidated budgets of subjects of the Russian Federation and 81,45% - from juridical persons resources2.
According to this subprogram Russians’ satisfaction level with the quality of tourism services has to grow from 72% to 90% by 2020.
The mentioned goals achievement can be realized by solving of following problems:
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• cultural and historical heritage preservation, providing access to cultural values and participation in a cultural life, realization of creative potential of the nation;
• improvement of quality and accessibility of domestic and international tourism services;
• creation of favorable conditions for a sustainable culture and tourism development.
In summary it may be said that tourism development is a very important problem that can provide a great benefit for our country. Tourism plays a key role in social problems solving because it ensures employment creation, job growth and growth in human wellbeing in the country. Tourism influences the economic growth and the development of different fields of economic activity like tourist company services, collective accommodation facilities, transport, communication, commerce, souvenir gifts production, food, agriculture, construction, etc., so tourism acts as a catalyst of the socio-economic development of regions of the Russian Federation.
In addition about 50 regional target programs of tourism development are realizing today in the subjects of the Russian Federation.
The tourism development program division and the sequence of its elements:
I. General provisions
II. Main content
1) Estimate of a tourism current state in the subject of the Russian Federation;
2) essential goals and tasks of the program, time-frame and phases of its realization;
3) system of program activities;
4) resources provision of the program;
5) mechanism of program realization;
6) organization of program management and control of its realization.
III. Annex to a basic structure of the regional program:
• passport of the program and additional tables (business plan with socioeconomic and techno-economic substantiations);
• preliminary budget request for allocations from the municipal budget for financing of the extra-budgetary sources program.
Certain subjects of Volga Federal District have been working out tourism development programs for the last ten years: in the Republic of Bashkortostan three tourism development programs have been worked out for this period; in the Samara Region - 3 programs (2004-2008, 2009-2010 and regional target program «Tourism and recreation cluster development in the Samara Region in 2011-2014»); in the Ulyanovsk Region - 2 programs (2005-2010, 2011-2015); in the Chuvash Republic - 2 programs (20052010, 2011-2016), etc.
Certain subjects have articulate areas development programs (the program «Tourism development in the region of Cheboksary in 2006-2010»; the program
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«Tourism development in the Yadrinsky region of the Chuvash Republic in 2005-2010», etc.). The example of financing of certain target programs is shown in the Table 2.
Table 2. The amount of financing of certain tourism development target programs in the subjects of the Russian Federation
№ Region Program name Total funding of program
1. The Republic of Bashkortostan Long-term target program «The development of domestic and inbound tourism in the Republic of Bashkortostan in 2012-2016» 123 312,00 million rubles
2. The Mari El Republic Republican target program «The tourism development in the Mari El Republic in 2011-2016» 3 826 522 thousand rubles
3. The Republic of Tatarstan Long-term target program «The development of tourism in the Republic Tatarstan in 20132016» 22 956,53 million rubles
4. The Udmurt Republic Republican target program «The development of domestic and inbound tourism in the Udmurt Republic in 2012-2018» 70 000,00 thousand rubles
5. The Chuvash Republic Republican target program «The tourism development in the Chuvash Republic in 2011-2016» 6373,47 million rubles
6. The Kirov Region Regional target program «The development of a modern tourist complex in the Kirov Region in 2009-2013» 16360 thousand rubles
7. The Nizhni Novgorod Region Regional target program «The development of domestic and inbound tourism in the Nizhni Novgorod Region in 2012-2016» 2 250 585,32 thousand rubles
8. The Orenburg Region Regional target program «The tourism development in the Orenburg Region in 2011-2016» 27 504,00 thousand rubles
9. The Samara Region Regional target program «The development of the tourism and recreation cluster in the Samara Region in 2011-2014» 204 897 thousand rubles
10. The Ulyanovsk Region Regional target program «The tourism development in the Ulyanovsk Region in 2011-2015» 654,0 million rubles
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It should be noted that in many regions of the Russian Federation there is a clear investment orientation of the tourism policy and the analysis of regional programs brings us to the conclusion that the tourism development in the regions is comprehensive. It means that almost in every target program it is possible to mark out forming and development of tourist complexes, clusters and centers, construction projects of tourist objects and infrastructure among the investment mechanisms. It is important that the comprehensive orientation of the functioning let develop existing tourist objects as well as create the new ones. The correlation of investment and financial mechanisms is shown in the table 4.
Table 4. Instruments combinations of investment and financial tourism development mechanisms in certain regions of the Russian Federation
№ Region Investment mechanisms Financial mechanisms
1. The Republic of Bashkortostan Construction of tourist clusters infrastructure facilities: collective accommodation facilities, roadside service enterprises, tourist amusement rides, etc. Subsidization of construction of the supporting infrastructure complex: highways, power and heat supply systems, communication system, etc. - in conjunction with created objects of tourism infrastructure.
2. The Mari El Republic Reconstruction of the existing health resort of the Republic. Creation of the regional tourism and recreation clusters system. Development of the restaurant chain specialized in the ethnic foods. -
3. The Republic of Tatarstan Creation of the basic investment offers package and tourism infrastructure development projects of the Republic. Capital construction and modernization of the supporting infrastructure objects of the priority tourism and recreation clusters and tourist centers. Use of the opportunity of budgetary and investors’ resources co-financing (budgetary resources - into the supporting infrastructure, investors’ resources - into the tourism and recreation objects).
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4. The Udmurt Republic - -
5. The Chuvash Republic - -
6. The Kirov Region Creation of the investment offers base in tourism. Infrastructure and tourism material base development assistance. -
7. The Nizhni Novgorod Region Construction of the museum and tourist complexes and museums proper. Subsidies to the partial reimbursement of credits interest rate of commercial banks for the tourist activity subjects support (subjects of the tourist activity - organizations and private entrepreneurs realizing different tourism projects). Grants for the rural tourism development.
8. The Orenburg Region 1. Creation of the tourist and recreation cluster «Salt lakes». 2. Development of the tourism project «Orenburg Tarpania». Partial reimbursement of expenses on interest payments on loans obtained in Russian credit organizations for infrastructure development of tourism objects.
9. The Samara Region 1. Development of the material base of the tourist branch and creation of favorable conditions for tourism and recreation cluster forming in the region. 2. Creation of the tourism investment projects presentation. -
That’s why it is important to emphasize that the regional tourism development programs do not contradict the federal target program but specify and define particular tourist objects, itineraries, destinations and resources in many respects. With the aid of regional tourism development strategies ways of solution of the local level problems can be detected with regard for tourist and recreation, economic and social specifics of regions of the country. It is important because
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the problems of separate regions of the Russian Federation cannot be estimated and solved in an effective way at the federal level, therefore the primary function of the federal level is determination of priority lines of tourism and recreation clusters development on the basis of key regional resources.
References:
1 Federal’niy zakon ot 5 Maya 2014 №99-FZ “O vnesenii izmenenii v glau 4 chasti pervoi Grazhdanskogo kodeksa Rossiiskoi Federacii i o priznanii utrativshim silu otdel’niyh polozhenii zakonodatel’niyh aktov Rossiiskoi Federacii”.
2 Postanovlenie Pravitelstva RF ot 15 aprelya 2014 №317 Ob utveijdenii gosudarstven-noi programmi Rossiiskoi Federacii “Razvitie kul’turi i turizma” na 2013-2020 godi.
3 Postanovlenie Pravitelstva RF ot 2 avgusta 2011 №644 “O federal’noi celevoi programme “Razvitie vnutrennego I v’ezdnogo turizma v Rossiqskoi Federacii (20112018 godi)”.
Литература
1. Федеральный закон от 5 мая 2014 г. № 99-ФЗ «О внесении изменений в главу 4 части первой Гражданского кодекса Российской Федерации и о признании утратившими силу отдельных положений законодательных актов Российской Федерации».
2. Постановление Правительства РФ от 15 апреля 2014 года № 317 Об утверждении государственной программы Российской Федерации «Развитие культуры и туризма» на 2013-2020 годы.
3. Постановление Правительства РФ от 2 августа 2011 г. № 644 “О федеральной целевой программе «Развитие внутреннего и въездного туризма в Российской Федерации (2011 - 2018 годы)».
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