UPDATE 2: Putin orders govt to write resort strategy till March

(Adds details in paragraphs 5–6)

BELOKURIKHA, Altai Region, Aug 26 (PRIME) -- Russian President Vladimir Putin has ordered the government to prepare a strategy to develop resorts until March 2017, he said at a meeting of the State Council Presidium, his advisory body, on Friday.

“I am asking you to complete (the preparation of the strategy) in March next year,” Putin said. The strategy must define the financing priorities and ways to attract private investment in the sector.

He said that the repairs of the existing spa facilities will require 37 billion rubles. “The figure is hefty, no doubt, but it is clear that if we do nothing year after year, it will only increase. It is hard to rely only on budget sources there, which is why consolidation of financial resources, a proactive search is one of the top issues.”

According to Putin, about 40% of the area meant for spas is abandoned. “The development of this sector is constrained by a low level of material and technical resources of most resorts.”

Culture Minister Vladimir Medinsky told Putin that the government has no money for tourism because the investment in the target tourism program was constantly reduced.

The 2017 target program spending is envisaged at 3.6 billion rubles and for 2018 at 3.5 billion rubles.

The president warned local authorities that introduction of a spa tax proposed earlier by governors must be made with caution and be justified. He also warned against an overestimation of land prices.

But Finance Minister Anton Siluanov told Putin that a 50–100 ruble spa tax is affordable for customers. “And the money must be spent only on the development of resorts, to the benefit of the vacationers.”

Minister for North Caucasus Lev Kuznetsov said that the decision on the tax will be made after a test in four territories, the Altai Region, the Krasnodar Region, Crimea and the Stavropol Region. “We offer to fix all these peculiarities in the pilot mode and then decide whether to extend the practice or to abolish it.”

He also said that the regional authorities must make the final decision.

Putin said that the Federal Tourism Agency must be granted the right to promote spas both domestically and abroad.

Healthcare Minister Veronika Skvortsova said that inbound healthcare tourism increased by 35% in January–June and the number of Russian customers of spa resorts doubled on the year. Skvortsova did not provide absolute figures.

She said that some of the resorts must remain state property, firstly ones treating tuberculosis and psychiatric diseases. The government must retain its liability to provide free spa care to people in need, the minister said.

End