VZCZCXRO7619
RR RUEHCN RUEHDBU RUEHGH RUEHIK RUEHLN RUEHPOD RUEHSK RUEHSL RUEHVC
RUEHYG
DE RUEHVK #0093/01 2600510
ZNR UUUUU ZZH
R 170510Z SEP 09
FM AMCONSUL VLADIVOSTOK
TO RUEHC/SECSTATE WASHDC 1198
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUEHVK/AMCONSUL VLADIVOSTOK 1303

UNCLAS SECTION 01 OF 03 VLADIVOSTOK 000093 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EWWT EIND ECIN EINV PGOV PREL PHSA RS JA KS
SUBJECT: DBS FERRY TO ATTRACT TOURISM TO PRIMORYE? 
 
VLADIVOSTO 00000093  001.2 OF 003 
 
 
UNCLASSIFIED 
PROG 09/17/09 
CG:TARMBRUSTER 
POL/ECON:JFREEMAN 
POL/ECON:NGKATSAKIS 
ECON 
 
AMCONSUL VLADIVOSTOK 
SECSTATE WASHDC 
INFO MOSCOW POLITICAL COLLECTIVE 
CIS COLLECTIVE 
NATO EU COLLECTIVE 
CHINA POSTS COLLECTIVE 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: EWWT EIND ECIN EINV PGOV PREL PHSA RS JA KS
 
SUBJECT: DBS FERRY TO ATTRACT TOURISM TO PRIMORYE? 
 
¶1. (SBU) Summary:  A new, South Korean-owned cruise ferry 
connecting Vladivostok, Donghae, South Koreia, and Sakaiminato, 
Japan began operating on July 7.  Local officials hope it will 
help boost tourism to Primorye Region, as it offers an 
affordable, comfortable, and convenient way to travel between 
the three cities, compared to the airlines and other ferry 
services.  Local officials would also like to see more foreign 
investment to boost Primorye's tourism services.  An 
inconvenient schedule and visa regime may hinder the ferry 
line's success, however.  Primorye officials also plan to 
further develop their relatively poor tourism infrastructure, 
especially during the run-up to the APEC Conference in 2012, 
with emphasis placed on eco-tourism and other areas that make 
the region unique.  End summary. 
 
--------------------------------- 
DBS to Bring Tourism to Primorye? 
--------------------------------- 
 
¶2. (U) With airline tickets between Vladivostok and Seoul 
costing upwards of USD 800, the Donghae (South 
Korea)-Vladivostok (Russia)-Sakaiminato (Japan) (DBS) Cruise 
Ferry, which began operation on July 7, is set to make travel 
between South Korea, Japan, and Russia more comfortable and 
affordable.  Officials in the Primorye Region also hope the 
South Korean-based DBS will increase tourism to their region, as 
the number of foreign tourists to the region has decreased 
dramatically over the course of the last four years. 
 
¶3. (U) The DBS Ferry is not the first international cruise ferry 
service with service to Primorye.  The Dong Chun Ferry runs 
between Zarubino, Primorye and Sokcho, South Korea, while 
BusinessInTourService operates a ferry line between Vladivostok 
and Toyoma, Japan.  The DBS ferry will compete with these lines 
and offer new, upgraded services, which will hopefully boost the 
tourism industry in Primorye. 
 
¶4. (U) Unlike its competitors, the DBS Ferry Line enables 
Primorye Residents to travel to both Japan and South Korea on 
the same vessel.  While the BusinessIntourService's cheapest 
one-way tickets from Vladivostok to Japan run at USD 440, DBS 
offers one way tickets on faster vessels between the two 
countries for USD 210.  With a duty free shop, sauna, night 
club, restaurant, and Jacuzzi, the DBS Line's vessel, the 
Eastern Dream, offers better amenities than the similarly priced 
Dong Chun Ferry.  The Eastern Dream arrives in Vladivostok every 
Tuesday, while Russian passengers usually have to board the Dong 
Chun Ferry at the nearby urban settlement of Zarubino. 
 
¶5. (SBU) Another hope is that the DBS Ferry will encourage South 
Korean, Japanese, and Chinese companies to invest better 
offering services for tourists in Primorye.  South Korean Consul 
Ki Dae Kim explained to Consulate Staff that South Korea, the 
corporate headquarters of the DBS and Dong Chun ferry lines as 
well as the only four star hotel in Vladivostok, has made an 
unprecedented contribution to the development of tourist 
infrastructure in Primorye.  Other regional actors are ready to 
follow South Korea's example:  Deputy Consul-General of Japan in 
Vladivostok Tomonori Hasegawa emphasized his country's interest 
in making similar inroads into the Primorye tourist market.  He 
described the future creation of a Japanese ferry line between 
Japan and Primorye as "very possible."  According to Mikhail 
Lapin, Specialist at the Primorye Regional Department of 
International Relations and Tourism, Chinese businesses may open 
a ferry line between Vladivostok and China if DBS is successful. 
 
------------------------------------------- 
 
VLADIVOSTO 00000093  002.2 OF 003 
 
 
Visa Regime and Schedule May Hinder Success 
------------------------------------------- 
 
¶6. (U) Obstacles to the DBS's success remain, however.  The 
Eastern Dream arrives at port on Vladivostok only on Tuesdays. 
This means that South Korean and Japanese passengers have only 
4-6 hours to spend in the city unless they obtain a Russian visa 
(and remain in Russia for at least one week).  Russian 
passengers likewise are unable to return home via the Eastern 
Dream until a week after departing from Vladivostok.  Russians 
who are planning shorter trips therefore cannot utilize DBS's 
ferry line. 
 
¶7. (U) While tourists who travel by ferry to Russia do not need 
a visa if their trip will be shorter than 72 hours, Russians 
need visas in order to travel to Japan or South Korea.  In a bid 
to increase the popularity of the DBS ferry, the Primorye 
Regional Government has been holding talks to convince Tokyo and 
Seoul to institute a visa waiver program for Russian tourists 
who will be in Japan or South Korea for a short period of time. 
Director of the Primorye Regional Transportation Department Igor 
Khruschev has repeatedly travelled to Seoul in order to discuss 
both visa waivers and the possibility of altering the Eastern 
Dream's timetable. 
 
¶8. (SBU) Deputy Director of the Vladivostok Office of South 
Korea's National Organization of Tourism Hae Ja Park and South 
Korean Consul Ki Dae Kim, however, believe that visa regulations 
and inconvenient scheduling will not preclude the DBS's success. 
 While Park emphasized that Russians enjoy long vacations, Mr. 
Kim argued that Russian tourists can easily obtain South Korean 
visas.  Kim reminded Consulate staff that the DBS ferry line is 
in its initial stage; DBS may change its timetable if the ferry 
becomes popular. 
 
--------------------------------------------- -------- 
Poor Infrastructure and High Costs Discourage Tourism 
--------------------------------------------- -------- 
 
¶9. (SBU) DBS alone will not transform Primorye into a popular 
tourist destination, however.  General Director of Vladivostok's 
"Gavan-Tourcenter" Natalie Kalachinskaya told us services for 
tourists have deteriorated in Primorye and hotels have become 
more expensive in the region.  There are no information centers 
for tourists in Vladivostok other than in hotels, she added. 
Vladivostok has no five star hotels and only one four star 
hotel, the Hyundai Hotel, which charges approximately USD 200 
per night for its cheapest rooms.  Infrastructure and hotel 
service are even less developed in other regions of Primorye 
where prospective tourists could find natural wonders and exotic 
animals like the Amur Tiger.  Asian tourists find better 
services, infrastructure, and prices in Southeast Asia and China 
than in Primorye. 
 
¶10. (U) In preparation for the 2012 APEC Conference, however, 
Vladivostok has planned numerous infrastructure projects, 
including the construction of new hotels.  Lotte, Marriot 
International, and Accor have signed declarations of intent to 
build hotels in the city.  The GOR is also funding the 
construction of a USD 1 billion bridge between Vladivostok and 
Russkiy Island, the summit's beautiful locale. 
 
----------------------- 
Accentuate the Positive 
----------------------- 
 
¶11. (SBU) According to Park, infrastructure alone will not 
transform Primorye into a tourist destination.  She pointed out 
the region lacks the stadiums, hotels, and tourist 
infrastructure found in South Korea and Southeast Asia. 
According to Park, Primorye officials need to highlight the 
region's distinctive attractions in order to distinguish it from 
other tourist destinations.  As Hasegawa informed us, Japan 
"lacks natural havens that the hands of man have never touched." 
 According to Hasegawa, Russian tourist companies have failed to 
research the needs and tastes of Japanese tourists and therefore 
have underestimated Japanese interest in eco-tourism. 
 
¶12. (U) Primorye officials have, however, approved a plan to 
open a "Safari Park" that will feature the wild animals of the 
Ussuriysk Taiga.  In addition, Kalachinskaya, discussed creating 
a "Russian Village" for tourists in Primorye in order to teach 
foreigners about life in the Russian countryside.  Although this 
plan has not yet materialized, analysts support such plans that 
promote "eco-tourism" in Primorye. 
 
------- 
Comment 
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VLADIVOSTO 00000093  003.2 OF 003 
 
 
 
¶13. (SBU) The DBS Ferry Line's low prices and amenities could 
promote tourism between the Russian Far East, South Korea, and 
Japan.  If successful, the DBS may also force other ferry lines 
to improve their services.  The launching of the DBS ferry is 
only one step in a broader effort, however.  Primorye officials 
must do more to improve tourist infrastructure and further 
promote eco-tourism if the region is to be transformed into a 
popular tourist destination. 
ARMBRUSTER