This is a specialized legislative research report published by the National Diet Library in the "Foreign Legislation" series in August 2025, dealing with legal analysis of Russia's federal law on guesthouse legalization.
Background of Guesthouse Legalization
In Russia, accommodation industry was traditionally centered on large hotel chains and state-operated facilities, with individually-operated small accommodation facilities (guesthouses, bed & breakfasts, etc.) having legally ambiguous status. With recent domestic tourism promotion policies, regional economic vitalization needs, and travel style changes due to COVID-19 impact, demand for small, home-like accommodation facilities increased, creating problems with many guesthouses operating unlicensed. Additionally, with proliferation of private accommodation platforms like Airbnb, individual home accommodation service provision increased, leading to this law's enactment as legal framework needs were recognized from tax collection, safety standard assurance, and consumer protection perspectives.
Main Legal Provisions and Classification System
The Guesthouse Legalization Law creates simplified permit systems for small-scale accommodation businesses separate from conventional hotel operating permits. Accommodation facilities are classified into four categories by capacity and operating format: "Mini Hotels" (10-50 rooms), "Guesthouses" (5-9 rooms), "Homestays" (2-4 rooms), and "Private Lodging" (1 room or part of residence), with different regulatory standards and tax incentive measures applied to each. Each category has operating permit acquisition procedures, safety standards, sanitation standards, and tax declaration obligations set gradually according to scale.
Simplified Permit System
Simplified permit systems obtainable even by individual business operators are introduced, significantly reducing complex procedures, expensive equipment investment, and strict building standards required for conventional hotel operating permits. Online application system construction, one-stop service provision, permit review period shortening (maximum 30 days), and renewal procedure simplification significantly lower business entry barriers. Additionally, one-year transition grace periods for existing unlicensed operators, fee reduction measures, and technical support programs are prepared.
Rationalized Safety and Sanitation Standards
Since applying strict safety and sanitation standards equivalent to large hotels to small facilities is unrealistic, rational standard setting according to facility scale and usage patterns is implemented. Fire equipment requirements focus on minimum requirements including simple fire extinguishers and fire alarm installation, evacuation route assurance, and regular inspection implementation. Sanitation standards set achievable requirements including basic cleanliness maintenance, appropriate linen washing, and sanitation management during food provision.
Tax Incentives and Regional Economic Development
Guesthouse operators receive graduated tax incentive measures including income tax reduction for three years from opening, simplified tax system application for small business operators, reduced value-added tax rates, and local tax reduction measures, supporting business initial burden reduction and continued operation. Particularly for guesthouse opening in regional and depopulated areas, additional preferential measures are applied, with expected regional development effects including tourist attraction from urban to regional areas, local employment creation, and traditional culture preservation.
Relationship with Digital Platforms
Through collaboration with online accommodation reservation platforms including Airbnb, Booking.com, and Yandex.Travel, guesthouse customer attraction improvement and efficient operation are supported. Platform operators have obligations including listing only legal guesthouses, providing tax information to administrative agencies, and implementing consumer protection measures. Additionally, digital payment system introduction promotion, online evaluation system utilization, and multilingual support service provision support are institutionalized.
Integration with Tourism Policy
This law is positioned as part of Russian government tourism industry promotion policy, coordinating with policy objectives including domestic tourism promotion, foreign tourist attraction, and tourism infrastructure diversification. Particularly positioned as extension of tourism industry infrastructure development following international events including 2018 FIFA World Cup and 2019 Winter Universiade, contributions to sustainable tourism development are expected.
Domestic Tourism Promotion Under International Sanctions
With foreign tourist numbers significantly decreasing due to international sanctions from 2022, domestic tourism promotion and national domestic travel promotion have become important policy issues. Through guesthouse legalization, providing diverse price range and service format accommodation options is expected to bring effects including domestic tourism vitalization, tourism consumption expansion, and regional economy support.
The article provides multifaceted analysis from tourism policy, deregulation theory, and regional economics perspectives of what insights Russia's guesthouse legalization law provides as a policy model balancing deregulation and tourism promotion to other former socialist countries and developing countries' tourism policies, and what role it plays in domestic economy independence strengthening under international sanctions.