[Federal Register Volume 79, Number 41 (Monday, March 3, 2014)]
[Notices]
[Pages 11764-11766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04506]
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DEPARTMENT OF COMMERCE
International Trade Administration
Travel and Tourism Trade Mission to Russia September 15--19, 2014
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce, International Trade
Administration, including the National Travel and Tourism Office
(http://travel.trade.gov/), with support from Brand USA (http://www.thebrandusa.com/) is organizing an Executive-led trade mission to
Moscow and St. Petersburg, Russia with an optional stop in
Yekaterinburg, Russia, September 15-19, 2014. The purpose of this
mission is to help U.S. firms in the travel and tourism industry find
business partners and sell services in Russia. The targeted sector for
participation in this mission is travel and tourism, including U.S.-
based travel and tourism suppliers, destination marketing organizations
(i.e., convention and visitors bureaus), travel promotion organizations
and other travel and tourism entities promoting and selling travel to
the United States including trade associations.
The mission will include stops in Moscow and St. Petersburg, where
participants will receive market briefings and participate in
customized meetings with key officials and prospective partners. There
will be an optional stop in Yekaterinburg, Russia.
The mission supports President Obama's National Export Initiative
(NEI) to strengthen the U.S. economy and U.S. competitiveness through
meaningful job creation and furthers the National Travel and Tourism
Strategy. The mission will help U.S. companies already doing business
in Russia to increase their footprint and deepen their business
interests.
The mission will help participating firms and associations/
organizations gain market insights, make industry contacts, solidify
business strategies, and advance specific projects, with the goal of
increasing U.S. exports of services to Russia. The mission will include
one-on-one business appointments with pre-screened potential buyers,
agents, distributors and joint venture partners; meetings with state
and local government officials and industry leaders; and networking
events. Participating in an official U.S. industry delegation, rather
than traveling to Russia on their own, will enhance the companies'
ability to secure meetings in Russia.
The mission will be supported by the Brand USA (http://www.thebrandusa.com/). The mission of Brand USA is to encourage
increased international visitation to the United States and to grow
America's share of the global travel and tourism market. In doing so,
Brand USA aims to bring millions of new international visitors who will
spend billions of dollars to the United States, creating tens of
thousands of new American jobs.
All travel and tourism companies, including U.S.-based travel and
tourism suppliers, destination marketing organizations (i.e.,
convention and visitors bureaus), travel promotion organizations and
other travel and tourism entities promoting and selling travel to the
United States including trade associations are encouraged to apply.
Commercial Setting
In 2012, about 260,000 visitors from Russia traveled to the United
States. If current trends continue, more than 300,000 visitors from
Russia will have traveled to the U.S. in 2013, representing an increase
of 30%. Since 2010, the number of visitors from Russia to the United
States has increased by an average of more than 20% each year. The
forecast is for the number of Russians visitors to the United States to
reach nearly 500,000 per year by 2018.
With a population of over 140 million, Russia is the ninth most
populous country in the world and is a huge market for outbound travel.
Sustained economic growth, low unemployment and rising personal income
levels mean that more Russians are able to travel more often and to
long-haul destinations, such as the United States. According to the
United Nation's World Tourism Organization, Russians are among the top
tourism spenders in the world, ranking number five and spending an
estimated $42 billion in 2012. The vast majority of Russians visit the
United States for holidays and to see family and friends. Russians
enjoy shopping, dining out, sightseeing in cities, experiencing
amusement and theme parks, and visiting historical places. It is
noteworthy that nearly 40% of Russians who visited the United States in
2012 were first-time visitors. The average income of Russians visiting
the United States is approximately $60,000, which means they have
disposable income to spend on shopping, dining and leisure activities.
Also, the continued strength of the Euro and British Pound against the
U.S. dollar has helped make travel to the United States more attractive
and affordable for Russian travelers.
For Russians, outbound travel is both a vital part of doing
business and a trendy form of leisure holidays. Russians experience a
very cold winter each year, and they are always searching for sunny and
dry destinations for their holiday adventure. A significant development
is that more airlines, both U.S. and international, have launched non-
stop service connecting Moscow with U.S. destinations. Delta Airlines,
Aeroflot Russian Airlines, Transaero, and Singapore Airlines all offer
direct flights to U.S. cities. Aeroflot flies to New York City,
Washington, DC, and Los Angeles; Delta flies to New York; Transaero to
New York and Miami, and Singapore Airlines flies to Houston. Many more
international airlines transport Russian travelers to the U.S. via hubs
such as Frankfurt, Copenhagen, Amsterdam, Madrid, London, and others.
Overall growth in demand for the United States as a tourism
destination has also been driven by an increase in disposable income in
a discrete segment of Russian society. Those travelers have generally
already traveled to Europe and Asia, and the United States is now an
affordable destination. A supporting factor behind the steady growth in
the number of Russian tourism to the United States is the publicity
surrounding the improvements in the visa application process that has
taken place in recent years. The U.S. Embassy has made great progress
in improving the process in the face of a rapidly
[[Page 11765]]
growing number of applications including: increasing staffing; public
speaking and outreach; providing visa information available online in
Russian; allowing application fees and supporting documents to be sent
to the Embassy via a courier service with offices across Russia; and
accepting payments at Russian post offices and online. Because of an
increase in visa reciprocity, Russians now have the opportunity to
secure three-year, multiple entry visas. As part of a worldwide change,
most of those wishing to renew a tourist visa within 47 months
following their previous visa expiration date can obtain their new visa
without an in-person interview. The availability of visa information
online has made it possible to counter the market's impression that
U.S. visas are expensive, difficult to obtain and take a long time to
process. Russian tour operators are also educating their travelers
regarding these improvements.
Based on the results of a recent survey of Russian tour operators
conducted by U.S. Commercial Service Moscow, the most promising
destinations in the United States include:
Cities: New York City, Miami, and Las Vegas;
National Parks;
Ski/Winter Resorts; and
Leisure/Entertainment Complexes.
New York City has been and will likely remain the most popular city
destination for Russian tourists in the near future. Russians will
often combine their business travel to New York City with a pleasure
trip. Their family, historical, and cultural ties to New York City put
it on the top of the list for brand awareness, followed by Miami and
other locations in Florida, famous for their comfort and opportunities
for various forms of leisure. As more Russian tourists reach the U.S.
West Coast, California resorts and attractions are becoming
increasingly popular in this respect as well. Las Vegas, historically
considered by many Russians the gambling and entertainment capital of
the world, has gained in popularity after July 1, 2009, when gambling
was officially banned in Russia. Interest in national parks is growing
as Russian tourists learn more about what they have to offer. Ski and
winter sports resorts have become more popular in recent years as an
alternative to European resorts as they provide a unique travel
experience in terms of variety, beauty and quality of service.
Other Products and Services
The foregoing analysis of the travel and tourism opportunities in
Russia is not intended to be exhaustive, but illustrative of the many
opportunities available to U.S. businesses. Applications from companies
selling products or services within the scope of this mission, but not
specifically identified, will be considered and evaluated by the U.S.
Department of Commerce. Companies whose products or services do not fit
the scope of the mission may contact their local U.S. Export Assistance
Center (USEAC) to learn about other business development missions and
services that may provide more targeted export opportunities. Companies
may call 1-800-872-8723, or go to http://help.export.gov/ to obtain
such information. This information also may be found on the Web site:
http://www.export.gov.
Mission Goals
The goal of this Trade Mission is to help U.S. destinations and
tourism suppliers, including receptive tour operators, to develop their
contacts and generate exports to Russia by providing business-to-
business introductions and market access information so they can
position themselves to enter or expand their presence in Russia.
Mission Scenario
The Russia Travel and Tourism Trade Mission will visit Moscow and
St. Petersburg with an optional stop in Yekaterinburg, allowing
participants to access the largest markets and business centers in
Russia. In each city, participants will meet with potential business
contacts.
Proposed Time Table
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Date Day Activity
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September 14.................. Sunday--Yekaterin Arrive in
burg. Yekaterinburg
(optional).
September 15.................. Monday--Yekaterin Mission Meetings
burg. Officially Start;
Seminar
presentation; One-
one-one business
appointments;
Business/Media
Breakfast.
Monday--Moscow... Arrive/Travel to
Moscow.
September 16/17............... Tuesday/ Breakfast briefing
Wednesday--Mosco with U.S. Embassy
w. staff; Seminar
presentation; One-on-
one business
appointments; Media
events; Evening
business reception.
September 18.................. Thursday Travel
to St.
Petersburg.
September 18/19............... Thursday/Friday-- Seminar presentation;
St. Petersburg. Trade Fair; One-on-
one business
appointments;
Evening business
reception; Mission
ends.
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Participation Requirements
All applicants will be evaluated on their ability to meet certain
conditions and best satisfy the selection criteria as outlined below.
The mission is designed for a minimum of 15 and a maximum of 20
participants. U.S. companies already doing business in the target
markets as well as U.S. companies seeking to enter these markets for
the first time are encouraged to apply.
Fees and Expenses
After a company has been selected to participate on the mission, a
participation fee to the U.S. Department of Commerce is required. The
participation fee for one representative is $1900 for a small or
medium-sized enterprise (SME) \1\ and $2250 for large firms. The fee
for each additional firm representative (SME or large) is $500. For the
Yekaterinburg option, there is an additional fee of $750 for SMEs and
$850 for large companies, and $200 for each additional firm
representative (SME or large). Expenses for travel, lodging, some
meals, and incidentals will be the responsibility of each mission
participant.
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\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations.
See http://www.sba.gov/contractingopportunities/owners/basics/whatismallbusiness/index.html. Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008. See http://www.export.gov/newsletter/march2008/initiatives.html.
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Conditions for Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary
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market objectives, and goals for participation. If the U.S. Department
of Commerce receives an incomplete application, the Department may
reject the application, request additional information, or take the
lack of information into account when evaluating the applications. Each
applicant must also certify that the products and services it seeks to
export through the mission are either produced in the United States,
or, if not, marketed under the name of a U.S. firm and have at least 51
percent U.S. content of the value of the finished product or service.
Selection Criteria for Participation
Suitability of the company's products or services to the mission
goals. Applicant's potential for business in Russia, including
likelihood of exports resulting from the mission.
Consistency of the applicant's goals and objectives with the stated
scope of the mission. Diversity of company size, sector or subsector,
and location may also be considered during the review process.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar--www.ita.doc.gov/doctm/tmcal.html--
and other Internet Web sites, press releases to general and trade
media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows.
Recruitment for the mission will begin immediately, and conclude
July 15, 2014. The U.S. Department of Commerce will review applications
and make selection decisions on May 7, 2014 and again on July 28, 2014
until the maximum of 20 participants is selected. Applications received
after July 15, 2014, will be considered only if space and scheduling
constraints permit.
Contacts
Frank Spector,
Trade Missions Office,
U.S. Department of Commerce,
Washington, DC 20230,
Tel: 202-482-2054,
Fax: 202-482-9000, [email protected].
Scott Pozil,
Deputy Senior Commercial Officer,
U.S. Embassy,
Moscow, Russia,
Tel: 7-495-728-5364,
Fax: +7-495-728-5585, [email protected].
Frank Spector,
Senior International Trade Specialist,
Trade Missions Office.
202-482-2054.
[FR Doc. 2014-04506 Filed 2-28-14; 8:45 am]
BILLING CODE 3510-DR-P