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On December, 25th Government of the Republic of Karelia considered results of implementation of the second republican target program of tourism development in 2003 - 2006. The program purpose was formation of a modern highly effective and competitive tourist complex in the republic providing ample opportunities for satisfaction of needs of the citizens of Karelia, and Russian and foreign citizens in diversified tourist services. As Minister of Economic Development of the RK Mikhail Yurinov has noted, perfection of scientific base of tourism, state regulation and planning of development of this sphere, advertising and information services, professional training, creation of conditions for attraction of domestic and foreign investments into development of material resources of tourism are among the most important parts of the program.

As a result of four years of the program implementation, all forecasted parameters of tourism development in the republic were overfulfilled. General flow of tourists coming to Karelia has grown from 1,4 million people in 2002 up to 1,7 million in 2006. Total amount of tourist, excursion and hotel services has grown 2.3 times from 195 million roubles in 2002 up to 450 million roubles in 2006.

Flow of visitors to main tourist objects of the Republic of Karelia increases annually:

According to the Minister, the main result of the program implementatin is active flow of private investment to objects of tourist infrastructure. Since 2002 it has increased from 155 million roubles up to 470 million in 2006 (three times). In the forthcoming three or four years the investment into tourism in Karelia can make up to 1 billion roubles annually.

From 2003 to 2006 the following investment projects were implemented in the republic: reconstruction of Karelia tourist complex and Neva hotel, putting into operation of Prionezhsky and Metro club hotels, and Belye Nochi (Midnight Sun), Onego, Uiut (Cosiness) (Petrozavodsk) hotels, reconstruction of Kivatchsanatorium and Kalevala country hotel, construction of Dvortsy tourist-improving complex in Marcial waters, Derevnya Aleksandrovka (Aleksandrovka Village) country tourist complex on the coast of Pertozero lake, the first construction stage of Karelia theme park scientific exposition complex in Pryazha region and Alökka holiday centre (Syamozero), construction of Kuzova hotel complex and Prichal (Mooring) (Kem) tourist complex expansion, construction of Fire-Watch floating hotel and Byelomorie mini-hotel (Belomorsk), construction of cottage type tourist complex on Paanajärvi, Päozero and in the settlement of Kalevala, construction of Velt hotel, Lappish Village camping and reconstruction of Sampo hotel (Kalevala region), opening of Polar Circle diving-center (village of Nilmoguba, Louhi region), putting into operation of Gardarika tourist complex on the coast of Jänisjärvi lake, Kaunis and Volna hotels in Sortavala, reconstruction of Winter's summer residence in Sortavala and construction of small tourist cottages on its territory, Koensaari island territory development for construction of a tourist center in Lahdenpohja region. In opinion of the Minister, the most active work is underway in Kalevala, Byelomorsk and Louhi regions of Karelia.

The largest of investment projects being implemented at present in the field of tourism infrastructure in the RK is construction of Black Stones hotel tourist complex on Jänisjärvi lake (more than 150 million rbl. of debt capital). Since 2005 construction of a four-stars hotel complex Onego Palace is underway in Petrozavodsk where it is planned to raise about $20 million of funds. White Sea-Onega Shipping Company Open Society has launched program of major reconstruction of marina and Fregat hotel (with increasing its capacity up to 100-150 places) (Petrozavodsk), Byelomorsk river port development and construction of new means of accommodation (Belomorsk), reconstruction of Kizhi island mooring.

During the navigation period of 2006 Karelia tourist complex, Ltd., with its 5 tourist class boats has started to work on Petrozavodsk - Kizhi line having become one more ferrier. White Sea-Onega Shipping Company is allocated a preferential budgetary credit at the amount of 29,7 million roubles for purchase of two hovercrafts that will give additional opportunities in rendering service on basic tourist lines all-year-round. Also due to preferential budgetary credit at the amount of 6,3 million roubles State Unitary Enterprise Karelavtotrans purchased 2 tourist class buses.

Within the for four years in the republic there ahs been created more than 800 new workplaces in the sphere of tourism. In tourist companies, hotels and the sphere of recfreation today there work 2150 people.

During the program implementation, Ministry of Economic Development together with Institute of Economy of Karelian Research Center of the Russian Academy of Science developed strategy and programs of dtourism evelopment in Kalevala, Byelomorsk and Louhi metropolian regions, implementation of Scandinavian Ring boating development program, project of historical, cultural, sports and tourist complex in the territory of Zaozerie, concept of republican target program Tourism Development in the Republic of Karelia in 2007-2010, strategy of tourism development till 2020. With Institute of Northen Water Problems of the North of Karelian Research Center of the Russian Academy of Science there has been elabrated strategy and documentation for the project on creation of research composit vessels of Polar Odysseus project for a network of drifting stations of new generation for constant monitoring in Arctic and Subarctic regions and development of high-altitude tourism. Together with Petrozavodsk State University geographical information system Tourism Development in the Republic of Karelia Dataware is developed.

In total from 2003 to 2006 in the republic there has been implemented or launched 15 international projects in the sphere of tourism with the general budget of more than €5 million. The most important of them are Natural tourism as a tool for Medvezhiegorsk region development and nature protection, Four Seasons in Kalevala, Rural Tourism Development on the basis of using Natural and Cultural Resources (Medvezhiegorsk and Pudozh regions), Karelian Vacation Information Museum Network (Kostomuksha, Kem, Petrozavodsk, Olonets, Pitkäranta, Sortavala), Development of Koitajoki-Tolvojärvi National Park Assistance to Local Business (Suojärvi region), Training Hotel Personnel of the Republic of Karelia on the basis of European Standards, National Parks for Common Good, Development of Rural Territories in the south of Karelia (Olonets and Pitkjäranta regions). A large Tacis project Development of Transboundary Tourism in Russian part of the Barents Euro-Arctic Region within the scope of which Information-tourist centres are created in Petrozavodsk, Murmansk and Arkhangelsk is completed successfully in 2003. In 2004 - 2006 there was implemented a large Tacis project Development of Tourism in the Northwest of Russia aimed at support of tourist branch in 10 regions of the northwest federal district, including Karelia.

Tourist companies and enterprises of Karelia take more and more active part in largest international tourist exhibitions: MATKA(Helsinki), MITT, MITF, Intourmarket, Recreation (all in Moscow), INWETEX (St.-Petersburg). For the first time Karelia has taken part in largest in Europe tourist exhibitions ITB (Berlin), WTM (London), Wild Nature of Northern Finland (Oulu) international exhibition.

Exhibitions Karelia Touristskaya, Hunting and Fishing, international conferences and seminars on problems of theory and practice of tourism development in the northwest of Russia and in the Republic of Karelia became traditional for the republic. In November of 2005 in Petrozavodsk there passed International Tourist Forum Northern hospitality in which more than 200 representatives of tourist business, enforcement authorities, scientific and educational establishments from Russia, Finland, Germany have taken part.

In the republic there have been published tourist catalogues Republic of Karelia and Tourism in Karelia: Figures and Facts, a new tourist guidebook on the Republic of Karelia, Karelia and Kizhi booklets, tourist map of the Republic of Karelia, CD on tourist potential of the Republic of Karelia, calendars. Information on tourism in Karelia has been presented on a regular basis in the largest Russian and foreign tourist editions, central electronic mass-media.

By results of interrogation of heads of tourist organizations of Karelia held in November and December of 2006, 100 percent of respondents consider that approaches offered by the Government of Karelia in development of tourist industry have justified hopes and as prime measures of state support to development of tourism name preparation of promotional information about tourist potential of Karelia in Russian and foreign languages, maintenance of consolidated participation in tourist exhibitions, carrying out of PR-companies in Russian and foreign mass-media, simplification of procedures of preferential crediting of tourist organizations, perfection of professional training for the branch, development of accompanying engineering infrastructure.

However, there are also problems unresolved. One of them remains the fact that steam-ships coming to Karelia seldom come to Petrozavodsk to acquaint tourists with its sights. Head of the Republic Sergey Katanandov who presided at the session has charged the Ministry of Economic Development of the RK with understanding thoroughly why it occurs, despite of existing agreements with ferriers.

As a whole the Government has approved activity on development of tourism and results of the program implementation, and has charged the Ministry of Economic Development with developing and submitting the new project providing development of the branch from 2007 to 2010 to the Government.

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