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The closure of hostels can lead to higher prices for hotels  20.05.2019 12:09

As reported the executive director of the Association of Tour Operators of Russia (ATOR) Maya Lomidze, the closure of hostels in residential buildings may lead to higher prices for hotels throughout Russia and the decrease in demand for the services of tour operators.

 “Tour operators in most cases do not work with hostels. Nevertheless, the closure of small accommodation facilities, including hostels, will unambiguously lead to an increase in prices in ordinary hotels - especially in St. Petersburg. And this will affect the tour operator prices, and later may also affect the demand,” said M. Lomidze, according to Interfax reports.

She also added that the closure of hostels could lead to a shortage of hotels.

“Independent tourists who previously often chose hostels will now also be forced to stay in hotels. This reduces competition among hotels, which is not good at all. The motivation for adopting this law remained unclear to me,” Maya Lomidze noted.

It should be recalled that the State Duma adopted a law according to which it is forbidden to open hostels in apartment buildings. In other words, it is forbidden to use apartments as hostels and provide hotel services there.

A little later, on April 10, the Federation Council, as amended by the conciliation commission, approved a law banning hostels in residential buildings which will come into force on October 1, 2019.