Vladimir Putin‘s war in Ukraine has struck yet another blow to Russia’s economy, with the hotel sector now suffering from severe labour shortages described as “close to catastrophic”.
Inflation is also wreaking havoc, soaring to 9.9%, diminishing the value of the ruble and the purchasing power of Russian citizens.
Olga Kiseleva, General Director of Admiralteyskaya Hotel, issued a stark warning: “The labour shortage in the industry is close to catastrophic.”
Marianna Neumann, General Director of Dom Boutique Hotel, added: “The personnel shortage is the key challenge. Salary demands are increasing exponentially.”
She attributes the scarcity of hotel staff to the war’s drain on human resources, with Russians able to earn significantly more by contributing to the war effort than by working in hotels.
A report from Russian recruitment service Superjob reveals that military couriers in Moscow can command salaries of 200,000 Russian rubles (£1700) per month, a figure hoteliers cannot hope to match, often offering less than half.
Neumann added: “Many young people, instead of going to work in the hospitality and service industries as maids, waiters or cooks, where you need to make both moral and physical efforts, opt for a courier job.”
This labour shortfall is not confined to the hotel industry alone; as of December 2023, Russia faced a deficit of nearly five million workers across various sectors, as reported by the Institute of Economics at the Russian Academy of Science.
In a separate development, Russia‘s economy has taken another hit with the country’s fishing industry grappling with enormous cumulative debts exceeding £8 billion.
A high-ranking industry official informed Interfax that over 40% of Russia‘s seafood businesses are operating at a loss.
German Zverev, president of the All-Russian Fishery Association (VARPE), cautioned that the industry is bracing for a further dip in profits this year due to escalating costs.
As per data from Russia‘s statistical agency Rosstat, the fishing sector was among the poorest financial performers in 2024.