Where Russian Tourists Are Missing

The Ukraine invasion’s travel curbs are hurting businesses from Thailand to the Maldives

- By James E. Ellis

Nha Trang, a beach-blessed resort town on Vietnam’s east coast, is often dubbed by travel blogs as “Little Russia”—a tribute to high-spending Russians who used to splurge on vodka and borscht while staying in premium properties overlooking the warm sea. A few weeks ago, staff at the picturesque MerPerle Hon Tam Resort were in full swing, preparing to welcome more Russians in March after receiving virtually no foreign travelers for the past two years because of pandemic restrictions.

“Then the war came,” says Tran Bao Doan, the resort’s general manager.

It was a huge blow. MerPerle Hon Tam, which also offers mud bathing and parasailing, had spent almost 1 billion dong ($44,000) upgrading facilities, buying more mud, planting trees, and expanding its restaurant menu. But as the war in Ukraine disrupted flights and countries imposed sanctions that left Russian-issued credit cards useless, many Russians canceled their trips.

“This is something no tourism manager can anticipate,” says Doan, who estimates about half the resort’s visitors before the pandemic were Russians. “Such a decrease in revenue affects our ability to pay staff and maintenance fees.”

MerPerle Hon Tam’s predicament is being replicated in Russian tourist hot spots from Thailand to the Maldives to Cuba. For many, it’s come as a double whammy. Resorts, hotels, bars, and restaurants were already suffering from a dearth of Chinese tourists, who have effectively been locked in by the nation’s Covid-zero policies. Now Russia’s invasion of Ukraine has destroyed any hopes of a near-term recovery.