[Federal Register Volume 79, Number 41 (Monday, March 3, 2014)]
[Notices]
[Pages 11764-11766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04506]


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DEPARTMENT OF COMMERCE

International Trade Administration


Travel and Tourism Trade Mission to Russia September 15--19, 2014

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration, including the National Travel and Tourism Office 
(http://travel.trade.gov/), with support from Brand USA (http://www.thebrandusa.com/) is organizing an Executive-led trade mission to 
Moscow and St. Petersburg, Russia with an optional stop in 
Yekaterinburg, Russia, September 15-19, 2014. The purpose of this 
mission is to help U.S. firms in the travel and tourism industry find 
business partners and sell services in Russia. The targeted sector for 
participation in this mission is travel and tourism, including U.S.-
based travel and tourism suppliers, destination marketing organizations 
(i.e., convention and visitors bureaus), travel promotion organizations 
and other travel and tourism entities promoting and selling travel to 
the United States including trade associations.
    The mission will include stops in Moscow and St. Petersburg, where 
participants will receive market briefings and participate in 
customized meetings with key officials and prospective partners. There 
will be an optional stop in Yekaterinburg, Russia.
    The mission supports President Obama's National Export Initiative 
(NEI) to strengthen the U.S. economy and U.S. competitiveness through 
meaningful job creation and furthers the National Travel and Tourism 
Strategy. The mission will help U.S. companies already doing business 
in Russia to increase their footprint and deepen their business 
interests.
    The mission will help participating firms and associations/
organizations gain market insights, make industry contacts, solidify 
business strategies, and advance specific projects, with the goal of 
increasing U.S. exports of services to Russia. The mission will include 
one-on-one business appointments with pre-screened potential buyers, 
agents, distributors and joint venture partners; meetings with state 
and local government officials and industry leaders; and networking 
events. Participating in an official U.S. industry delegation, rather 
than traveling to Russia on their own, will enhance the companies' 
ability to secure meetings in Russia.
    The mission will be supported by the Brand USA (http://www.thebrandusa.com/). The mission of Brand USA is to encourage 
increased international visitation to the United States and to grow 
America's share of the global travel and tourism market. In doing so, 
Brand USA aims to bring millions of new international visitors who will 
spend billions of dollars to the United States, creating tens of 
thousands of new American jobs.
    All travel and tourism companies, including U.S.-based travel and 
tourism suppliers, destination marketing organizations (i.e., 
convention and visitors bureaus), travel promotion organizations and 
other travel and tourism entities promoting and selling travel to the 
United States including trade associations are encouraged to apply.

Commercial Setting

    In 2012, about 260,000 visitors from Russia traveled to the United 
States. If current trends continue, more than 300,000 visitors from 
Russia will have traveled to the U.S. in 2013, representing an increase 
of 30%. Since 2010, the number of visitors from Russia to the United 
States has increased by an average of more than 20% each year. The 
forecast is for the number of Russians visitors to the United States to 
reach nearly 500,000 per year by 2018.
    With a population of over 140 million, Russia is the ninth most 
populous country in the world and is a huge market for outbound travel. 
Sustained economic growth, low unemployment and rising personal income 
levels mean that more Russians are able to travel more often and to 
long-haul destinations, such as the United States. According to the 
United Nation's World Tourism Organization, Russians are among the top 
tourism spenders in the world, ranking number five and spending an 
estimated $42 billion in 2012. The vast majority of Russians visit the 
United States for holidays and to see family and friends. Russians 
enjoy shopping, dining out, sightseeing in cities, experiencing 
amusement and theme parks, and visiting historical places. It is 
noteworthy that nearly 40% of Russians who visited the United States in 
2012 were first-time visitors. The average income of Russians visiting 
the United States is approximately $60,000, which means they have 
disposable income to spend on shopping, dining and leisure activities. 
Also, the continued strength of the Euro and British Pound against the 
U.S. dollar has helped make travel to the United States more attractive 
and affordable for Russian travelers.
    For Russians, outbound travel is both a vital part of doing 
business and a trendy form of leisure holidays. Russians experience a 
very cold winter each year, and they are always searching for sunny and 
dry destinations for their holiday adventure. A significant development 
is that more airlines, both U.S. and international, have launched non-
stop service connecting Moscow with U.S. destinations. Delta Airlines, 
Aeroflot Russian Airlines, Transaero, and Singapore Airlines all offer 
direct flights to U.S. cities. Aeroflot flies to New York City, 
Washington, DC, and Los Angeles; Delta flies to New York; Transaero to 
New York and Miami, and Singapore Airlines flies to Houston. Many more 
international airlines transport Russian travelers to the U.S. via hubs 
such as Frankfurt, Copenhagen, Amsterdam, Madrid, London, and others.
    Overall growth in demand for the United States as a tourism 
destination has also been driven by an increase in disposable income in 
a discrete segment of Russian society. Those travelers have generally 
already traveled to Europe and Asia, and the United States is now an 
affordable destination. A supporting factor behind the steady growth in 
the number of Russian tourism to the United States is the publicity 
surrounding the improvements in the visa application process that has 
taken place in recent years. The U.S. Embassy has made great progress 
in improving the process in the face of a rapidly

[[Page 11765]]

growing number of applications including: increasing staffing; public 
speaking and outreach; providing visa information available online in 
Russian; allowing application fees and supporting documents to be sent 
to the Embassy via a courier service with offices across Russia; and 
accepting payments at Russian post offices and online. Because of an 
increase in visa reciprocity, Russians now have the opportunity to 
secure three-year, multiple entry visas. As part of a worldwide change, 
most of those wishing to renew a tourist visa within 47 months 
following their previous visa expiration date can obtain their new visa 
without an in-person interview. The availability of visa information 
online has made it possible to counter the market's impression that 
U.S. visas are expensive, difficult to obtain and take a long time to 
process. Russian tour operators are also educating their travelers 
regarding these improvements.
    Based on the results of a recent survey of Russian tour operators 
conducted by U.S. Commercial Service Moscow, the most promising 
destinations in the United States include:
     Cities: New York City, Miami, and Las Vegas;
     National Parks;
     Ski/Winter Resorts; and
     Leisure/Entertainment Complexes.
    New York City has been and will likely remain the most popular city 
destination for Russian tourists in the near future. Russians will 
often combine their business travel to New York City with a pleasure 
trip. Their family, historical, and cultural ties to New York City put 
it on the top of the list for brand awareness, followed by Miami and 
other locations in Florida, famous for their comfort and opportunities 
for various forms of leisure. As more Russian tourists reach the U.S. 
West Coast, California resorts and attractions are becoming 
increasingly popular in this respect as well. Las Vegas, historically 
considered by many Russians the gambling and entertainment capital of 
the world, has gained in popularity after July 1, 2009, when gambling 
was officially banned in Russia. Interest in national parks is growing 
as Russian tourists learn more about what they have to offer. Ski and 
winter sports resorts have become more popular in recent years as an 
alternative to European resorts as they provide a unique travel 
experience in terms of variety, beauty and quality of service.

Other Products and Services

    The foregoing analysis of the travel and tourism opportunities in 
Russia is not intended to be exhaustive, but illustrative of the many 
opportunities available to U.S. businesses. Applications from companies 
selling products or services within the scope of this mission, but not 
specifically identified, will be considered and evaluated by the U.S. 
Department of Commerce. Companies whose products or services do not fit 
the scope of the mission may contact their local U.S. Export Assistance 
Center (USEAC) to learn about other business development missions and 
services that may provide more targeted export opportunities. Companies 
may call 1-800-872-8723, or go to http://help.export.gov/ to obtain 
such information. This information also may be found on the Web site: 
http://www.export.gov.

Mission Goals

    The goal of this Trade Mission is to help U.S. destinations and 
tourism suppliers, including receptive tour operators, to develop their 
contacts and generate exports to Russia by providing business-to-
business introductions and market access information so they can 
position themselves to enter or expand their presence in Russia.

Mission Scenario

    The Russia Travel and Tourism Trade Mission will visit Moscow and 
St. Petersburg with an optional stop in Yekaterinburg, allowing 
participants to access the largest markets and business centers in 
Russia. In each city, participants will meet with potential business 
contacts.

                           Proposed Time Table
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             Date                      Day                Activity
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September 14..................  Sunday--Yekaterin  Arrive in
                                 burg.              Yekaterinburg
                                                    (optional).
September 15..................  Monday--Yekaterin  Mission Meetings
                                 burg.              Officially Start;
                                                    Seminar
                                                    presentation; One-
                                                    one-one business
                                                    appointments;
                                                    Business/Media
                                                    Breakfast.
                                Monday--Moscow...  Arrive/Travel to
                                                    Moscow.
September 16/17...............  Tuesday/           Breakfast briefing
                                 Wednesday--Mosco   with U.S. Embassy
                                 w.                 staff; Seminar
                                                    presentation; One-on-
                                                    one business
                                                    appointments; Media
                                                    events; Evening
                                                    business reception.
September 18..................  Thursday Travel
                                 to St.
                                 Petersburg.
September 18/19...............  Thursday/Friday--  Seminar presentation;
                                 St. Petersburg.    Trade Fair; One-on-
                                                    one business
                                                    appointments;
                                                    Evening business
                                                    reception; Mission
                                                    ends.
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Participation Requirements

    All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. 
The mission is designed for a minimum of 15 and a maximum of 20 
participants. U.S. companies already doing business in the target 
markets as well as U.S. companies seeking to enter these markets for 
the first time are encouraged to apply.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
participation fee to the U.S. Department of Commerce is required. The 
participation fee for one representative is $1900 for a small or 
medium-sized enterprise (SME) \1\ and $2250 for large firms. The fee 
for each additional firm representative (SME or large) is $500. For the 
Yekaterinburg option, there is an additional fee of $750 for SMEs and 
$850 for large companies, and $200 for each additional firm 
representative (SME or large). Expenses for travel, lodging, some 
meals, and incidentals will be the responsibility of each mission 
participant.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations. 
See http://www.sba.gov/contractingopportunities/owners/basics/whatismallbusiness/index.html. Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008. See http://www.export.gov/newsletter/march2008/initiatives.html.
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Conditions for Participation

    An applicant must submit a completed and signed mission application 
and supplemental application materials, including adequate information 
on the company's products and/or services, primary

[[Page 11766]]

market objectives, and goals for participation. If the U.S. Department 
of Commerce receives an incomplete application, the Department may 
reject the application, request additional information, or take the 
lack of information into account when evaluating the applications. Each 
applicant must also certify that the products and services it seeks to 
export through the mission are either produced in the United States, 
or, if not, marketed under the name of a U.S. firm and have at least 51 
percent U.S. content of the value of the finished product or service.

Selection Criteria for Participation

    Suitability of the company's products or services to the mission 
goals. Applicant's potential for business in Russia, including 
likelihood of exports resulting from the mission.
    Consistency of the applicant's goals and objectives with the stated 
scope of the mission. Diversity of company size, sector or subsector, 
and location may also be considered during the review process.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar--www.ita.doc.gov/doctm/tmcal.html--
and other Internet Web sites, press releases to general and trade 
media, direct mail, broadcast fax, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately, and conclude 
July 15, 2014. The U.S. Department of Commerce will review applications 
and make selection decisions on May 7, 2014 and again on July 28, 2014 
until the maximum of 20 participants is selected. Applications received 
after July 15, 2014, will be considered only if space and scheduling 
constraints permit.

Contacts

Frank Spector,
Trade Missions Office,
U.S. Department of Commerce,
Washington, DC 20230,
Tel: 202-482-2054,
Fax: 202-482-9000, [email protected].
Scott Pozil,
Deputy Senior Commercial Officer,
U.S. Embassy,
Moscow, Russia,
Tel: 7-495-728-5364,
Fax: +7-495-728-5585, [email protected].
Frank Spector,
Senior International Trade Specialist,
Trade Missions Office.
202-482-2054.

[FR Doc. 2014-04506 Filed 2-28-14; 8:45 am]
BILLING CODE 3510-DR-P