Crimea tourism hit as hotel bookings fall 70%

Crimea's tourism industry has slumped as Ukrainian drone strikes have caused power cuts and fuel shortages on the Russian-annexed peninsula, with hotel bookings down more than 70 percent from last July.

In Simeiz, a resort town on Crimea's southern coast, ice cream vendor Anatoli said his shop used to sell up to 400 ice creams a day but the season was now “practically non-existent”. A luxury hotel in the town said it was offering 30 percent discounts to attract guests, while restaurants, terraces and swimming pools were empty.

Ukrainian attacks have killed more than a dozen people on the peninsula since the beginning of June, including a child, Russian-installed authorities said. Officials said a Ukrainian drone crashed into a block of flats a few kilometres from Simeiz the night before, wounding 17 people.

Drone strikes on electrical substations have caused power outages, including in Sevastopol. Russian-installed authorities also suspended fuel sales last month amid strikes on oil depots, and some visitors said they were travelling with extra petrol.

The Russian government has pledged more than 4.3 billion rubles, or $54 million, in one-time payments to tourism workers, including travel agents, tour operators and restaurateurs. The aid is equivalent to three months' salary but is based on the minimum wage.

Ukraine says its strikes are intended to pressure Moscow into peace talks and describes them as retaliation for Russian attacks on Ukrainian towns and cities. Russia seized Crimea from Ukraine in 2014 and launched its full-scale offensive against Ukraine in February 2022.