Russia’s economy has been dealt another devastating blow with hotels quickly becoming another casualty of Vladimir Putin’s bloody war in Ukraine, as labour shortages reach “close to catastrophic” levels.
Meanwhile, inflation continues to spiral and is now running at 9.9%, as the rubles in Russians’ pockets continue to be worth less and less.
Olga Kiseleva, General Director of Admiralteyskaya Hotel, warned: “The labour shortage in the industry is close to catastrophic.”
Marianna Neumann, General Director of the Dom Boutique Hotel, echoed those fears, saying: “The personnel shortage is the key challenge. Salary demands are increasing exponentially.”
Explaining the lack of hotel staff, she believes the war’s demand on human resources is to blame.
Russians can earn vastly more working towads the war effort than they can working in hotels.
According to Russian recruitment service Superjob, military couriers in Moscow can earn 200,000 Russian rubles (£1700) a month. Hoteliers can’t offer even half that, according to reports.
Ms Neumann said: “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.”
The shortage of labour isn’t exclusive to the Russian hotel industry.
In December 2023, Russia was short nearly five million workers across all industries, according to the Russian Academy of Science’s Institute of Economics.
Separately, in another blow to Russia’s economy, the country’s fishing industry is facing massive cumulative debts of more than £8 billion.
A senior industry official told Interfax more than 40% of Russia’s seafood businesses were operating at a loss.
German Zverev, president of the All-Russian Fishery Association (VARPE), warned the industry is preparing for a further slump in profits this year due to rising costs.
According to data from Russia’s statistical agency Rosstat, the fishing sector ranked as among the worst financial performers in 2024.