Controversial guesthouses in Leningrad gain legal status
Breaking the 'Gray Zone': Legalizing Guesthouses in Select Russian Regions
On June 7th, 20xx, Vladimir Putin signed a groundbreaking lawaimed at legalizing guesthouses on individual housing construction (IHC) lands. The three-year experiment targets 17 regions of the country, including Leningrad, Arkhangelsk, and Kaliningrad, with the goal of bringing the rental of individual residential houses out of the shadows.
The proposal, born from the State Duma Committee on Tourism and Development of Tourism Infrastructure, hopes to ease restrictions on residential house owners offering hotel services. Prior to this law, such activities were limited to the infamous "gray zone."
Stepping Out from the Shadows
The experimental law requires owners to register in a special registry, obtaining a unique number to officially earn money from hotel services. The registry includes classified hotels, ski slopes, and beaches. The guesthouse is defined as an individual residential house or part of it where temporary accommodation and related services are provided.
Technical requirements for guesthouses stipulate a total area not exceeding 1,000 sq.m., 15 rooms or less, and adherence to hotel standards in the "no-star" category. The house must be located on IHC lands in populated areas and lack demolition orders. From 2026, operating as a guesthouse without being in the registry and indicating the assigned number will be considered illegal business.
Regional Impact
The experimental zones initially included Crimea, Sevastopol, and Krasnodar Territory, but ultimately, 17 regions were chosen to test the waters. Legislators believe this move will stimulate domestic tourism, safeguard tourists' rights, and open opportunities for owners to legally accommodate travelers, contributing to regional budgets.
As reported by rbc.group, Leningrad Oblast, which has entered the top tier of national tourist ratings for 2024, could greatly benefit from the legalization of "gray" guest accommodations in popular areas like Vyborg, Priozersk, and Vsevolozhsky districts. With over 10,000 residential houses with Individual Housing Construction (IHC) status built in 2024 alone, the stage seems set for a mass transformation of the segment.
Kaliningrad and Arkhangelsk Oblasts, selected for their tourism potential, are also anticipated to reap benefits from the law, most notably in terms of developing tourism infrastructure and meeting the rising demand for accommodations. Both regions, being a Russian exclave and an Arctic region, respectively, offer unique attractions that bring in tourists.
Controversy and Critique
The bill received harsh criticism from the Communist Party faction and other deputies, who find the approach illogical. Deputy Artem Prokofyev (CPRF) opines, "If you can work with different taxes, different communal tariffs, and different control, why work legally?" The concerns revolve around creating an unfair playing field for those who acted legally and the potential impacts on local infrastructure.
The law is set to take effect on September 1, 2025, with homeowners in eligible regions able to apply for inclusion in the registry. From January 2026, monitoring and enforcement of the law will commence. The experiment will continue until December 31, 2027, allowing for adjustments as needed.
Sources:1. rbc.group2. hotelier.pro
Insights:
- The rental housing market is evolving, with potential changes to short-term rental regulations in Russia.
- Legalizing guesthouses could improve the diversity of accommodation options for tourists, boost local economies, and contribute to regional budgets.
- Proper compliance with health, safety, environmental, and local community regulations should be ensured to ensure the success of guesthouses and maintain good relations with residents.
In light of the legalization of guesthouses, discussions around sports and weather-related activities could potentially be held at these accommodations in the future. The new law not only offers an opportunity for tourists but also presents a platform for hosting various events or gatherings.
With an increase in legal hotels and guesthouses, it is expected that weather-permitting outdoor sports activities, such as skiing or hiking, will become more accessible for travelers in regions like Kaliningrad and Arkhangelsk, contributing to a more diverse tourist experience.
