Occupying Authorities Risk Dealing a Final Blow to Crimea's Tourism Industry with New Restrictions

Russia's State Duma has adopted, in the second and third readings, amendments to the federal law on tourism that significantly expand the grounds for suspending and revoking the classification of accommodation facilities and beaches. The information was reported by the so-called "Ministry of Resorts and Tourism of the Republic of Crimea."

Under the new provisions, the occupying authorities will be able to remove hotels, guesthouses, and other accommodation facilities from the official register if they are found not to exist at their declared address. The amendments also allow the suspension of a beach's classification if dangerous bacteria, harmful substances, or other violations of sanitary standards are detected based on findings by Russia's Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor).

In addition, the law expands the powers of regulatory authorities overseeing the tourism industry. Whereas inspections previously focused mainly on whether advertising information matched the official register, they will now also verify whether accommodation facilities are physically located at the addresses listed in the register. Russian authorities claim that this measure is intended to combat so-called "virtual" accommodation facilities that exist only on paper or online.

The new rules also introduce additional grounds for suspending classifications. In particular, any discrepancy between information submitted by a property owner and data contained in other Russian state information systems — such as the Unified State Register of Real Estate — may become sufficient grounds for suspension.

One of the key innovations is a provision stating that a property's classification will automatically be revoked if inspectors determine that the accommodation facility is not located at its declared address. Furthermore, beginning on September 1, facilities that fail to complete mandatory self-assessment procedures within the established deadline will be automatically removed from the register.

A separate section of the amendments concerns beaches. A beach's classification may now be suspended following a formal submission by officials of Rospotrebnadzor stating that the water quality or beach area does not comply with sanitary regulations. If a beach's classification is suspended, its owners will be prohibited from using the assigned category in advertising materials or in the beach's official name.

The new provisions will enter into force upon the law's official publication.

These legislative changes may become yet another blow to the tourism sector in temporarily occupied Crimea. Over recent years, the peninsula's tourism industry has already suffered a significant decline due to Russia's full-scale war against Ukraine, repeated strikes on Russian military facilities, growing security risks, environmental concerns, and the international community's non-recognition of Russia's attempted annexation of Crimea.

The introduction of additional bureaucratic control mechanisms, expanded inspection powers, and the possibility of rapidly removing accommodation facilities from official registers may further complicate business operations in the tourism sector. Under the conditions of occupation, such instruments also create additional opportunities for administrative pressure on owners of hotels, resorts, and other tourism infrastructure.

Despite Russian authorities' claims that these measures are intended to improve the quality and safety of tourism services, the new regulations may instead lead to a further reduction in the number of officially operating accommodation facilities, increased administrative burdens on businesses, and a continued deterioration of the investment climate in the tourism industry of temporarily occupied Crimea.

Recently, Voice of Crimea reported that Russian tour operators had refunded their customers approximately 1.5 billion rubles for canceled trips to temporarily occupied Crimea.