19:00, 9 April 2011

Pakhomov: Sochi competitiveness as resort is degraded by high cost of services

The cost and quality of services will be the determining factors in the competitive struggle of city-resort Sochi, Krasnodar Territory, with foreign resorts, said Anatoly Pakhomov, Mayor of Sochi.

First of all, according to his version, it is necessary to reduce the cost of transport services, which "many times exceeds all reasonable limits," while prices for accommodation in hotels and sanatoriums are acceptable.

According to Mr Pakhomov, the 2011 tourist season will see a little surplus. He expects to receive about 2.8 million tourists; and 3.6 billion roubles as revenues to the municipal budget. "The growth is small, just 102 percent against 2010," the Mayor told reporters.

The Sochi city administration has brought its initiative to the Legislative Assembly of the Krasnodar Territory, offering to regulate the accommodation rates. It is proposed to reduce the tax on land and property for those resorts, which will undertake reconstruction of their fixed assets at their own expense.

Author: Ivan Fadeev

Source: CK correspondent