In Elbrus area after introduction of CTO regime tourist business suffers serious losses

In Kabardino-Balkaria, after introduction of the counterterrorist operation (CTO) regime in the Elbrus District region of the republic, tourism facilities in the Elbrus area are idling, namely, more than 30 private hotels and ministerial recreation bases and ski resorts. The losses of entrepreneurs are already in hundreds of millions roubles.

Aslan Tetuev, administrator of a private hotel, complained to the "Caucasian Knot" correspondent of financial difficulties that his hotel faced from absence of tourists. "From February 20 the hotel has been empty. We have no money to pay for gas and electricity. Now, there's not a single person in the gorge. Initially tourists were coming, but when cableways were stopped, all of them left," said the source.

A concern was also expressed by Balkar women, engaged in their traditional craft – knitted wool products. Cheap clothes made from pure wool were in great demand among tourists. "It looks as if they tore away our hands and legs. How should we live on?" said one of the women.

Sakinat Zalikhanova, deputy head of the village administration of Elbrus, told the correspondent that during the two winter months only the losses of the Elbrus area made more than 600 million roubles. According to her story, the budget will not receive taxes in the amount of 15 million roubles, including the land tax, which goes completely into the local budget and helps to address social problems.

In 2009, about 40,000 tourists used the services of tourist facilities in Elbrus region; and in general, the ski resort was visited by around 100,000 thousand tourists and one-day visitors. Usually, during the season more than five thousand persons at once spent their vacations here. The revenues from tourism accounted for about 1.5 billion roubles a year. Up to 23 percent of the 35,000 total population of the Elbrus area were employed in the resort sphere: services and minor businesses related to tourism.