UZBEKISTAN'S TOURISM SUCCES STORY
ACTING CHAIRMAN OF UZBEK STATE COMMITTEE FOR TOURISM DEVELOPMENT, ABDULAZIZ AKKULOV, PROUDLY EXPLAINS TO THE AZERI OBSERVER IN AN EXCLUSIVE INTERVIEW THE REASONS FOR THE SHARP INCREASE IN NUMBERS OF TRAVELERS TO HIS COUNTRY, SPEAKS ON THE LARGE-SCALE REFORMS IN THE TOURISM INDUSTRY AND THE MEASURES WHICH WILL MAKE UZBEKISTAN EVEN MORE ATTRACTIVE AND ACCESSIBLE FOR FOREIGN VISITORS. HE ALSO GIVES DETAILS OF TOURISM COOPERATION WITH AZERBAIJAN, AND JOINT PROMISING PROJECTS, WHICH COULD BRING THIS COOPERATION TO A HIGHER NEW LEVEL.
Question: The British Telegraph named Uzbekistan the best holiday destination for 2019. Earlier, such respected media as The Financial Times, The Independent and The New York Times repeatedly included your country in their ratings of the best countries to travel. In your opinion, what is the main reason for such a high commendation?
Answer: I would like to note that the development of any industry in any country depends on the attention paid by their government. Therefore, the increasing recognition of Uzbekistan’s tourist brand is primarily owed to the President Shavkat Mirziyoyev, who defined the tourism industry as one of the key sectors of the country’s economy in 2017. It gave an impetus to make drastic reforms in the tourism sector, and was reflected in the decisions by both the head of the state and the government, such as the simplification of visa and registration procedures; development of tourism and transport infrastructure; standardization and certification; international cooperation and attraction of foreign investments; development of human resources; support of entrepreneurial activities; promotion of tourism potential; and other practical measures. As a result, in 2018 we witnessed a stable development of the entire tourism sector.
In particular, the number of foreign tourists to Uzbekistan almost doubled, the volume of tourist services increased, and the tourism infrastructure developed comprehensively and was replenished with new tourism entities. The abovementioned measures opened up new opportunities for promoting the country’s tourism potential, at major international events held both in Uzbekistan and abroad, which is what played a key role in the recognition of the rapidly developing tourism sector, by many international rating agencies and magazines. In particular, Uzbekistan won first place in Gastronomic tourism nomination in the National Geographic Traveler Awards 2018, entered the top five safest countries in the world to visit, according to Gallup’s 2018 Global Law and Order report. Our country ranked first, in the top ten holiday destinations for 2019 by The British
Telegraph, The Independent’s ‘Best of Travel 2019’ and The New York Times’s ‘52 Places to Go in 2019’ listings.
Q.: The tourism development program in Uzbekistan for 2019-2025 envisages the transformation of the tourism industry into a strategic economy sector. What measures will help to achieve this goal?
A.: The development of this sphere, has a defined concept in order to expand it into a strategic industry.
1) Improving the legal framework. As many as 60 documents have been already developed and approved in this area, including 13 in the current year. In particular, a new version of the Law On Tourism – the basic law for the tourism industry - has been passed.
2) Tourist infrastructure development. Uzbekistan pays attention to the creation of a favorable atmosphere for entrepreneurs, through the facilitation of their activities and development of public-private partnerships. For example, 24 benefits and preferences have been introduced to support tourism businesses, including tax and custom duty reliefs for the construction and operation of hotels, theme parks, import of tourist-class vehicles, etc.
3) Transport logistics development. In this area, our main focus is the development of the passenger transportation system and ensuring its competitiveness. Since October 1 the international airports of Qarshi, Urganch, Termiz and Bukhara have pursued an ‘open skies’ policy. The Uzbekistan Airports company has been expanded, and now it can decide on the airport charge rates themselves, as well as modernize and increase the airport’s
capacity for storing aviation fuel, petroleum, oil and lubricants. It has also been allowed to sign agreements with local and foreign companies on the supplies of aviation fuel, petroleum, oil and lubricants, and sell them to local and foreign airlines directly. In addition, a new tourist transport corridor called ‘Uzbekistan Tourist Highway’ is under construction. It will stretch from the city of Khanabad in the Andijan region, to the city of Muinak in Karakalpakstan and envisages the development of roadside infrastructure.
4) Diversification of tourism services. Uzbekistan has a high potential for new kinds of tourism, and we take measures to develop them. The state provides grants for the implementation of innovative business ideas and start-ups in tourism (30% of total cost). Uzbekistan also reimburses up to 20% of costs of foreign films, music videos, cartoons and anime, in case of their shooting in the country. In addition, the state will partially subsidize the costs of tourism entities and air carriers for charter flights from other countries since January 1, 2020. The state will pay $20 per foreign passenger visiting in the summer season, and $50 per foreign passenger in the winter season (from November 20 to February 20), subject to their stay in Uzbekistan for at least five nights. Moreover, so-called ‘tourist villages’ are being created in the regions.
5) Human resources development. The Institute of Tourism Development was established under the State Committee for Tourism. Its main goals are the research in tourism, improvement of the training system for the tourism industry workers, organization of refreshment and advanced training in the area, and issuance of guide’s certificates based on a single testing system. In addition, it is planned to increase the number of tourism faculties and departments in the leading Universities of the country.
Q.: Tell us about cooperation between Azerbaijan and Uzbekistan in tourism. What joint projects and initiatives are under implementation in this area?
A.: Uzbek-Azerbaijani cooperation in tourism is based on an intergovernmental agreement from 1996, and a memorandum
from 2003. The main areas of cooperation are the constant exchange of information and experience, and participation in international tourism events held in each other’s territories. For example, Azerbaijani delegation took part in the 24th Tashkent International Tourism Fair ‘Tourism on the Silk Road’ in October 2018, the meeting of the Tourism Council of the Commonwealth of Independent States, and the first Annual Tourism Fair of the CIS in the city of Samarkand in July 2019. Tourism companies of both countries also work on the creation of a joint tour “Tourism along the Silk Road” for nationals of third countries.
Q.: How has the tourist flow between our countries changed over recent years? What tourist routes and tourism types are popular among Azerbaijanis coming to Uzbekistan? Which routes go undeservedly unnoticed?
A.: The joint measures in the tourism area result in the growth of tourist flow. The number of Azerbaijani tourists in Uzbekistan almost tripled in 2018 compared to 2017, and hit 10,465. In January-September 2019, the tourist flow from Azerbaijan increased by 18% compared to the same period in 2018 to 9,316 people. The tourism services export from Uzbekistan to Azerbaijan rose by 18% in the first 9 months of 2019 compared to the same period of 2018 to $5.9 million. As many as 67% of Azerbaijani visitors in Uzbekistan came to visit their relatives and friends. The second biggest group are travelers coming for leisure, which makes up 28.5% of all Azerbaijani arrivals. The residual 4.5% come for business purposes, treatment and trade. There is still room for growth. The number of Azerbaijani tourists traveling abroad increased from 4.1 million people in 2017 to 4.9 million in 2018, and only 0.2% of them fall on Uzbekistan. Meanwhile, the flow of Uzbek tourists to Azerbaijan shows a downward trend – their number decreased by 28% to 7,120 people in 2018 compared to 2017.
Nevertheless, our export of tourism services to Azerbaijan increased by 175% to $6.6 million in 2018 compared to 2017. There are some measures, which could bring bilateral cooperation in tourism to a higher new level. For instance, we develop twinning
arrangements for the cities of Baku and Khiva, including new combined tours between these cities, and information tours for tour operators from both countries along these routes. Moreover, a new direct flight between Baku and Urganch is under consideration. These measures will allow the increasing number of foreign tourists to the Uzbekistani Khorezm region from the current 180,000 to more than 250,000, as well as increasing tourism services exporting from the region from $36.5 million to $45 million. We also discussed the issue of opening an Uzbek tourism information center in tourism centers of Azerbaijan. B2B meetings between Uzbek and Azerbaijani tour operators are also organized. We offer presentations of joint tourism products at international tourism fairs and the organization of road shows of Uzbekistan’s tourism and investment potential. Cooperation between national TV channels of the two countries and the exchange of airtime for demonstration of tourism attractions of each other, will also contribute to this process.
Q.: In recent years, Uzbekistan has been striving to facilitate and abolish the visa regime. There are many foreigners among our readers. Surely, they will be interested to know more about these measures. Who will not need a visa to visit Uzbekistan? For what countries does Uzbekistan offer a facilitated visa issuance procedure?
A.: First, I would like to note that the fundamental changes in the visa issuance procedures have occured thanks to the political will of both the head and the government of our country. The number of countries, which enjoy visa-free regimes, has increased drastically. In particular, in 2018 Uzbekistan abolished visas for passport holders of 9 countries, and a further 47 countries in 2019. Therefore, the total number of countries whose citizens do not require visas to travel to Uzbekistan has reached 65. Starting from January 1, 2020 this number will be increased to 86. Moreover, we simplified visa issuance procedures for citizens of 77 countries. After the launch of the E-visa system, visas are issued online within 2 working days without the need of visiting the Uzbek consulate. Travelers have been exempted from the obligation to present tourist vouchers in order to receive a visa, including legal entities and natural persons who invite foreign guests to Uzbekistan, who are not required to receive permission from the country’s Foreign Ministry any more.
Q.: Earlier, Uzbekistan proposed an idea of the Silk Road visa. Tell us more about this initiative. How will it contribute to the development of cooperation between Azerbaijan and Uzbekistan? Has there been any progress in its implementation?
A.: An analysis of tourism potential and development, demonstrates that the countries of Central Asia and Azerbaijan, are not direct competitors, and on the contrary complement each other in the tourism sector. Uzbekistan and Azerbaijan, who did not previously receive sufficient attention from the major players of the global tourism market, are converting into dynamic tourism markets. Uzbekistan proposed an idea of a single Silk Road visa for tourists traveling to the countries along the Ancient Silk Road. In many countries, including Central Asian ones, this initiative has received a positive response. For example, Kazakhstan showed its interest in the prompt introduction of a single tourist visa system in order to promote joint tourism products and tourist potential of Central Asian countries.
Silk Road is a world famous term and it is converting into a modern tourist brand that we must use for our common
purposes. The number of tourists, interested in the ancient caravan routes, which crossed our countries, with their distinctive culture, traditions and architecture, is increasing. The United Nations World Tourism Organization supported the Great Silk Road project back in 1993, and its headquarters were located in Samarkand. The project has a beneficial potential for tourism, based on the unique and extremely rich heritage, cultures and traditions of dozens of different ethnic groups along the eternal route. In our opinion, we should develop this project jointly. The first step could be Azerbaijan’s participation to the project and an accelerated introduction of a single multifunctional regional visa (Silk visa) for foreign citizens visiting the republics of Central Asia and Azerbaijan. It will facilitate travel between the countries, reduce bureaucratic delays and visa processing time, and therefore increase the period of tourists’ stay, in these group of countries.
The project can generate mutually beneficial prospects. Uzbekistan plans a number of activities to promote this route. In particular, in September 2020 we will host the Silk Road Congress, which will bring together leading businesspersons, political leaders and journalists from the countries of the Great Silk Road, and be a platform for discussion of economic and other issues. In September 2020, we will also organize the Silk Road Bazaar festival in Samarkand to demonstrate the traditions of ancient eastern markets. In August 2021, participants from the countries of the Great Silk Road will take part in the Silk Road Carnival in Uzbekistan, and demonstrate national costumes, masks, dances and music. We hope that comprehensive joint measures with Azerbaijan will allow us to further deepen cultural and economical cooperation, as well as increase the tourist flow to our countries, and accordingly increase revenues from the tourism industry.
Q.: As you said, Uzbekistan has decided to subsidize charter tourist flights. What opportunities does it open for airlines and foreign tourists?
A.: The number of foreign tourists in Uzbekistan increased from 2.690 million people in 2017 to 5.346 million people in 2018. In the first 9 months of 2019, the number of foreign tourists amounted to 4.938 million people, compared to 3.915 million people in the same period of 2018 (26% increase). Many tour operators from all over the world send tourists groups to Uzbekistan, thanks to the increased interest in travels to our country resulting from reforms implemented in the tourism industry. According to the Presidential Decree from August 2019 on the measures for the further development of tourism in Uzbekistan, more large-scale and interrelated reforms will be carried out within the transport area, primarily in aviation, to support business entities and develop tourism infrastructure. This law envisages subsidies for charter flights. They will help to increase the number of flights to Uzbek cities from different countries.
We already see interest from other foreign airlines. In particular, the Chinese airline Zhejiang Loong Airlines Co. Ltd launched the first direct charter flight Xi’an-Tashkent-Xi’an in late September. Moreover, the aforementioned Decree envisages support for promoting the country’s tourism potential. In particular, the State Committee for Tourism Development was entrusted to develop a procedure on the selection of tourism entities, for the participation in international tourism fairs and exhibitions at the expense of the extra budgetary Tourism Support Fund. The measures taken in line with the Decree, and subsidizing charter flights in particular, will help to increase the number of flights from foreign countries, the flow of foreign visitors and develop the tourism industry as a whole