It may be the end of the era of cheap hostels in Russia, with Duma passing a law prohibiting such mini-hotels in residential buildings, where many of them are currently located in popular cities like Moscow or St. Petersburg.
Russian hostels may soon become expensive
If Duma’s new legislation is passed, cheap hostels in Russia may become a thing of the past. Currently, many such mini-hotels are located in residential buildings, Forbes.ru reported.
The legislators of the House of Representatives approved the draft law in the final third reading, but the Senate sent it back and suggested to chang the date from being enacted immediately (within 10 days) to 1 January 2020. The delay is to “allow people to close the business in a civilized manner”, Valentina Matvienko, the Senate speaker, pointed out.
The new law prohibits hostels in apartment buildings, unless the mini-hotel is localed on the ground floor and has a separate entrance, with the property modified and properly registered as a commercial space.
At the present moment, such cheap hotels in Russia may be located in a residential building on any level, thus creating nuisance for residents.
Central location is the key
Owners of cheap hostels set them in residential buildings because of the location. There are plenty of commercial buildings suitable for a hotel in outskirts of the major cities, but that’s not where tourists want to find cheap accommodation when visiting Moscow or St. Petersburg.
Available commercial spaces in the centers of popular Russian cities are too expensive to set up a cheap accommodation for budget tourists.
In Moscow, it’s impossible to run a profitable hostel unless the space is rented for less than USD 230/m2 per year. But such commercial premises suitable for a hotel are impossible to find in central locations.
Currently the price for a bed in a hostel in Moscow is about 700 rubles (just over USD 10): Cheaper for 12-bed rooms and more expensive for 4-bed units.
The average occupancy rate is around 60% annually: 95% during summer months from June to August and much lower in winter, excluding holidays.
“Practically all hostels are located in apartments,” Anton Basin reports. Thus, the new law creates a major problem for prospective budget tourists to Moscow or St. Petersburg, Russia. Starting from 1 January 2020, they will have to ride subway for an hour and a half, to get to outskirts of the city where hotels and motels are more affordable.
There are some hostels that are located in premises that are already rated as commercial, they will benefit tremendously from the new law. The cheaper 2-3 star hotels will also get some extra clientele.
The experts predict that the flow of tourists to Russia may drop as the result, with some mini-hotels choosing to move to “shadow operations” flying under the radar.
Russians against hostels
According to the recent poll by WCIOM.ru, most Russians don’t approve opening of hostels in residential buildings and would never grant their approval, no matter what: 77% of respondents stated they would not sign a permission to open a cheap accommodation point in the location where they live. 70% of respondents believe such places located in apartment buildings create inconvenience for residents.
Data: WCIOM
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Bad for tourists, good for locals. Seems like the government try to serve they people, and not strangers. And not only “inconvenience for residents”, also to find suitable rents for locals. I know a girl in St. Petersburg, she is not a happy landlord, but one of the main reason why she became one was: people hardly find suitable rents, because of this “hostel” industry. The same stands in our capital, with a difference: here the government and city council serve the tourists/ “hostels” and not the local population. So they say: better to make locals homeless than budget tourist… Read more »
This is the wrong decision, because it again directed against ordinary people. People from Russian regions often come to Moscow for obtaining qualified medical care. Medicine is very expensive and people live in hostels trying to cut down expenses. Now they will be forced to pay a lot for hotels.
Or you and who have similar difficulties ask advise (what to do, or ask their help to put the problem on a table) from representatives of: city council, department of health, or Ministry of Health, or a (or more) representative from State Duma.
Probably there are a limited option already exist, or if some people try it with some representatives they able to put the problem to the right table and in next year local councils or government start to do something to solve it.
Or find a corrupt nurse and “rent” a hospital bed.
It’s a pity that hostels are going to be closed. I know there is a lot of THIS type of hostel with bad service and unsanitary conditions – government did not pay attention to such problems so these hostels successfully existed for decades. On the other side, there are plenty good places for stay where everything is clear and fire safety is perfect. As an example, I know one hostel in the center of Moscow that is good – my friend stayed there for few nights and did not complain at all. Staying in the hostel is a good option… Read more »
There are some good cheap hostels in St. Petersburg. Their central situation is attractive and usually they are clean. It is sad if there is no more a possibility to get a low-priced accommodation and to be obliged to pay for expensive hotels.
This surprised me. Most hostels in Russia are populated with Russians. Particularly at the Russian hostels, you’ll find young Russians and Europeans and Russian mothers with their children. Doing this is going to cut a lot of Russians out of being able to travel. Then there’s so many other people who want more out of their visit than riding a tour bus and looking at the sights though the window. The cultural exchange that comes from hostelers is enormous. The energy hostelers bring into the city is enormous. The clubs have hostelers in them. They are there to have fun… Read more »