For many decades, Russian people were greatly restricted in their international travel. With the collapse of the Soviet Union, overseas travel has become a popular leisure activity for Russians. Outbound tourism is a developing fast, with sales increasing by 10–12 per cent annually. In 2003, the outbound travel industry was worth approximately US$8–9 billion.

Millions of Russians now take advantage of cheap charter packages to resorts in Egypt, Turkey and the Middle East. Other popular destinations include the Canary Islands, Cyprus, Croatia, the Seychelles, Spain and Tunisia.

Now, however, more and more Russians are looking beyond these cheap and traditional travel destinations in search of more exotic — and more expensive — destinations such as Africa, China, Cuba and South America. As Russian prosperity grows, people's demand for new holiday destinations with concurrent levels of hospitality and service is also increasing.

Australia: a growing fascination

According to some travel specialists, Australia is now leading in popularity as an exotic destination of choice.

Concurrent with the increase in international tourism, Russians have a developing interest in diving and wilderness adventure holidays. Australia has a variety of natural attractions that appeal to a wide-ranging audience. From diving holidays on the Great Barrier Reef to outback adventures and safari tours, travel in Australia has much to offer the Russian tourist.

Russian tourists have strong purchasing power

Travel statistics indicate that Russian tourists buy more organised group tours than their Western European counterparts. They also tend to be distinguished by their high purchasing ability. It is quite common for the Russian tourists to choose packages that include five-star hotels, limousine transfers and other luxuries. This explains why European tourist operators are keen to attract Russian tourists and cooperate with Russian outbound tourism organisations.

Australia's distance from Russia has in the past tended to limit the amount of information about Australia that is available. Many prospective tourists and tourism operators have scant knowledge of what Australia has to offer.

Positive word of mouth from early Russian holidaymakers is starting to raise Australia's profile, but more coordinated marketing is required. Australia is an attractive travel destination and the travel industry needs to market Australia as a country with unique travel opportunities, well-developed eco-tourism and advanced tourism infrastructure. Events like Australia Week in Moscow are helping raise nascent interest in Australia to the benefit of the Australian tourism industry.

Success story: Australian Travel Marketing

Australian Travel Marketing is an Australian-owned inbound tourism operator. It opened an office in Russia in 1996 and now draws more than half of its business from the Russian market. Its business model is predominantly business-to-business, with sales handled through some 2,000 travel agents in Russia and the CIS, including large organisations such as Capital Tour, Intourist, Mondo Tours, Quinta Tour and TransAero Tours.

Australian Travel Marketing now brings approximately 500–600 Russian tourists to Australia each year, with an even split between group travel and individuals. Some 30 per cent of the company's clientele is business travellers. Reflecting the high spending power of Russian tourists, most clients purchase five-star accommodation. The most popular destinations are Sydney and Cairns, with interest in eco-tourism and diving particularly strong. A growing area of business is outback driving tours: Australian Travel Marketing recently organised a 4WD safari from Sydney to Darwin for one group of Russian travellers.

Austrade has assisted Australian Travel Marketing with the supply of maps, travel brochures and information as well as translation of important sales literature for travel agents. Austrade also helps the company identify the best travel expos and trade shows to attend in Russia and the CIS and ensures a steady supply of marketing materials for these events.

Russian office director Igor Bradis said Australian Travel Marketing was excited about the future prospects for the Russian market. "Interest is building and we are receiving a growing number of requests," he said. "Austrade is helping us develop a program to make the visa-application process easier. With two new airlines (Cathay Pacific and Thai Airways) expected to start offering direct connections, the sky is the limit for inbound tourism from Russia to Australia."