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Hoteliers criticized FAS proposal to regulate prices in hotels

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Hoteliers criticized FAS proposal to regulate prices in hotels

Representatives of Russian hotel industry sent a letter to Prime Minister Mikhail Mishustin, in which they criticized the proposal of the Federal Antimonopoly Service (FAS) to regulate prices in hotels during major international events, writes RBC.

As the newspaper writes, the authors point out that the idea of FAS "contradicts the market nature of the hospitality industry and generally accepted international practices of its development.

The initiators of the appeal note that such proposals are "particularly untimely", as the international, business, congress and other types of tourism are in crisis because of the pandemic. Moreover they explain that the hotel sector does not belong to natural monopolies and introduction of tariffs contradicts to the principles of antimonopoly legislation.

Among other things hoteliers notice that "deficit of high-quality hotels is a direct consequence of lack of favorable investment climate, improvement of which is the main goal of economic forums". And the introduction of direct regulation of prices for hotel services will not improve the investment image of the country and "may become an undesirable precedent for investors to extend this practice to other sectors and types of economic activity".

According to the newspaper, the letter was signed by representatives of 18 business associations, including President of the Russian Union of Travel Industry Andrey Ignatiev, chairman of "Business Russia" Alexey Repik, President of the Russian Hotel Association Gennady Lamshin, vice-president of "Opora Russia" Alexey Kozhevnikov, president of the Federation of Restaurateurs and Hoteliers Igor Bukharov.

Earlier the FAS explained that the need for a bill that would regulate the prices in hotels for major events arose after receiving numerous complaints and appeals from citizens and businesses. The FAS plans to work out such a bill by October 1.

Made in Russia // Made in Russia

Author: Karina Kamalova


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