THE SEA OF TRAVEL

The ambitious plans to modernise the port infrastructure of Makhachkala and Derbent, along with the construction of new liners, open up broad prospects for the development of international cruises on the Caspian Sea. The Russian Ministry of Transport has unveiled a comprehensive program to modernize ports along the Caspian coast. The objective of this initiative is to establish the requisite infrastructure and establish international shipping routes connecting Russia with Azerbaijan, Iran, Turkmenistan, and Kazakhstan. The initiative encompasses the establishment of state border crossing points at the ports and the negotiation of intergovernmental agreements, with the objective of streamlining formalities for passengers and crews of cruise ships.

New Routes

A notable highlight of this initiative will be the introduction of a new cruise ship, scheduled to commence operations on the Caspian Sea in the early stages of next year. This new route will connect the seaports of Makhachkala and Astrakhan with the river cities of Rostov-on-Don and Volgograd, thereby allowing tourists to explore the beauty of the Caspian coast and visit Russia's historic cities. Furthermore, the Karelia project is set to introduce three additional river-sea class cruise liners by the years 2025 and 2026, which will be capable of traversing Russia's inland waterways as well as the Caspian, Black, Azov, and White Seas. This initiative is expected to stimulate tourism development and increase cruise traffic not only in the countries of the Caspian region but also in the lower reaches of the Volga River. A particularly ambitious project is the cruise liner Peter the Great, which is currently under construction at the Lotos plant in Astrakhan. It is anticipated that this vessel will be utilized for cruises as part of the Great Volga Way route, which traverses Russia, Azerbaijan, Kazakhstan, Iran, and Turkmenistan. The Peter the Great is designed to function as a five-star hotel on water, offering passengers a range of amenities, including a swimming pool, spa area, theater, outdoor restaurants, and spacious cabins with balconies. Although construction of the liner has faced delays, it is scheduled for delivery in 2025.

Specialists have identified a considerable potential in the development of cruise routes on the Caspian Sea. Thus, expert Jeyhun Ashurov notes that the conceptualization of such initiatives has been delineated in the Strategic Roadmap for the Development of Specialized Tourism Industry in Azerbaijan, a document that was formally endorsed in 2016. Ashurov further elaborates on the potential benefits of these initiatives, underscoring the prospects for enhanced tourism exchange among the Caspian littoral countries. Azerbaijan, for instance, has already established a visa-free regime with numerous Caspian littoral countries. Consequently, Ashurov et al. posit that the implementation of such cruise itineraries will precipitate an augmentation in the number of tourists from these states travelling to Azerbaijan. This phenomenon is of particular interest to the country, as it will serve to further develop the tourism industry in Azerbaijan. Furthermore, cruises offer a unique opportunity for travellers, as they allow for the exploration of multiple countries in the region simultaneously, rendering such itineraries particularly attractive.

According to the State Tourism Agency, Azerbaijan received 2.4 million foreign visitors and stateless persons from January to November of this year. Of these, 1 million 663.3 thousand people hailed from Caspian countries: The Russian Federation accounted for the highest number of visitors at 679,900, followed by Iran with 193,900, Kazakhstan with 79,700, and Turkmenistan with 29,900. It is noteworthy that due to the ongoing implementation of a stringent quarantine regime for entry and exit, excluding air travel, sea transportation of passengers necessitates a permit from the Operational Headquarters under the Cabinet of Ministers. At the beginning of December, Azerbaijan Caspian Shipping Company CJSC announced ticket prices for passenger transport by ferries and Ro-Ro vessels.

Tariffs for one-way transport of one passenger on ferries and Ro-Ro vessels

Benefits and Challenges

Cruise tourism offers several significant advantages. Primarily, it is characterized by its convenience and comfort. The all-inclusive nature of this travel modality enables tourists to unwind and savoir their vacations without the encumbrance of travel planning. Moreover, cruise tourism facilitates the exploration of multiple countries in a relatively brief period, offering travellers the opportunity to acquaint themselves with the unique cultural heritage and historical traditions of each visited locale. Initiatives in cruise tourism within the Caspian region will not only strengthen cooperation among coastal countries in tourism but will also contribute to their economic development.

The impact of this growth is particularly evident in coastal cities, where cruise tourism has emerged as a significant driver of economic growth, particularly for small and medium-sized enterprises. Notably, employment opportunities will be generated, contributing to the economic well-being of the region. The construction of cruise terminals and supporting infrastructure demands the expertise of professionals from diverse fields, including port workers, ship service staff, guides, and customs officers. Secondly, the cruise tourism sector stimulates the development of related industries, such as hotels, catering services, transport services, and souvenir production. Thirdly, an increase in demand for local goods and services is to be expected, as tourists will actively patronize local cafes, restaurants, and souvenir shops, thereby supporting small businesses.

In addition, the development of cruise tourism has the potential to enhance urban infrastructure. Improvements in roads, public transportation systems, parks, embankments, and historical centres can increase regional attractiveness. As with most recreational industries, cruise tourism is subject to certain risks. These include traditional seasonality, which can lead to income volatility. Deteriorating weather conditions and shifting climate zones can impact cruise itineraries and increase the risk of natural disasters.

To ensure sustainable growth in this sector, a comprehensive strategy is needed that considers the interests of the local population, supports small businesses, and prioritizes environmental sustainability. The introduction of innovative solutions and collaboration with major market players will help maximize the potential of this sector. Strict environmental standards must be implemented, including the use of environmentally friendly fuels, modern wastewater treatment systems, and efficient waste disposal both on ships and in ports.

The cruise industry in the Caspian region and globally shows promising outlooks, with significant interest anticipated from individuals in our country seeking new sea routes. Achieving these goals will require the successful execution of all plans.