Alisher Taksanov, Ph.D. (Economics)

OBSERVER TOURISM IN UZBEKISTAN, 2006(Uzbekistan’s international cooperation in the field of tourism)

FISH LOOK FOR DEEPER PLACES, WHILE TOURISTS PREFER BETTER DESTINATIONS

There is no doubt that the tourist industry can hardly develop without involving international-level formalities. Bilateral agreements signed by the Republic of Uzbekistan with foreign countries constitute one of such formalities. Moreover, these agreements not only make up a regulatory and legal framework for entry and departure procedures, but also form the basis of activity carried out by tourist organizations, strengthen partner links and promote the national tourist product to the world marketplace.

China was one of the first states which offered Tashkent to build contacts in the tourist sector. On March 13, 1992, the two countries signed an international agreement on cooperation in culture, education, healthcare, tourism and sport. According to this document, “the sides agree to accelerate and encourage the development of cooperation and exchange of experience in fields such as culture, arts, education, public health, tourism and sport through corresponding organizations operating in both countries on the basis of the principles of equality and mutual benefit”, as well as “to stimulate the development and solidification of linkages between sporting and tourist organizations”.

In 1995, the Uzbek-Indonesian Intergovernmental Memorandum on cooperation in tourism came into effect. The document was designed to address the following objectives:

to augment the number of tourist trains running to both countries from other states through the territory of the Republic of Uzbekistan and/or the Republic of Indonesia;

to stimulate tourist trips to different tourist destinations and sights of both countries;

to encourage visits by Uzbek and Indonesian citizens and permanent inhabitants to both countries;

to back progress in the development of tourist business in Uzbekistan and Indonesia.

Signed in 1994, the Uzbek-Greece intergovernmental agreement stipulated the achievement of the following purposes: “to facilitate an increase in tourist flows in both directions be developing close cooperation between firms and organizations, which specialize in the development of tourist business in Uzbekistan and Greece”. In addition, the document planned to encourage, within the framework of national legislations and on the bilateral basis, the dissemination of tourist editions and advertising materials in Uzbekistan and Greece, including audio and video materials. This Agreement contains references to the additional Protocol to the June 4, 1954 New York Convention on the importation of information documents and materials needed for publication purposes, as well as to the corresponding legislation of the European Union. The latter provides fro exemption of such materials, including those intended for tourist exhibitions, and tourist films designed to promote tourism, from customs duties and import taxes.

Another document – the Agreement on unrestricted freedom to travel signed between the Governments of the Republic of Uzbekistan and Germany on April 11,

1995, deserves mentioning in this context. Under this document and in accordance with Article 26 of the Vienna Convention on Diplomatic Relations, one signatory should ensure that all employees of another signatory’s diplomatic missions enjoy unrestricted freedom to travel on its territory. At the same time, no advance permission or notification of such trips is required. The document, however, contains restrictions imposed on visits to certain organizations or military bases, as well as to other places, where unauthorized persons are not admitted for homeland security reasons.

It should be mentioned in this connection that the document stipulates for the issue of appropriate permits to stay on other signatory’s territory “for other citizens of the Republic of Uzbekistan and Germany, including representatives of political organizations, specialists sent on an official trip to cultural institutions, persons working in the areas of science, culture or education or within the framework of technical cooperation, as well as representatives of public or trade union organizations, businessmen, experts, scholars and other scientific specialists, employees from organizations involved in provision of humanitarian aid, journalists and tourists, residing or traveling on the territory of another signatory”.

Within the framework of an agreement on cooperation in the sphere of tourism signed between the Republic of Uzbekistan and Ukraine in 1995, it was stated that the countries intended “to favor the development and strengthening of business cooperation between organizations specializing in tourism, with a view to acquainting corresponding authorities and citizens from both countries with the experience both states amassed in the course of their socio-economic, scientific and cultural development, as well as with historical and architectural monuments , tourist and natural attractions, cultural and historic traditions of their nations”. To this end, the sides decided to facilitate, in any possible way, the opening of tourist agencies’ representative offices and information and service centers in Uzbekistan and Ukraine. As it was pointed out in the agreement, “prior to the establishment of information and service centers on the territory of one of the signatories, another signatory renders assistance in the reception and servicing of its tourists.”

One also needs to emphasize a growing role of legal regulations in entrenching tourist relations between the Republic of Uzbekistan and the CIS member states. A memorandum on cooperation in the field of tourism signed between Uzbekistan and Georgia in 1995 was subsequently transformed into an agreement signed in 1997, which significantly raised the tourist business’ status in the development of people’s diplomacy. As for the Uzbek-Pakistani Agreement on cooperation in the areas of culture, healthcare, science, technique, personnel training, sport and mass media, signed in Tashkent on June 27, 1992, it developed into a separate document on cooperation in the sphere of tourism that was signed on May 22, 1995.

The July 9, 1995 Agreement on simplification of visa registration procedures signed between the Republic of Uzbekistan and Turkey contained the following provisions:

to inform, within 3 working days, about the results of consideration of visa applications submitted by diplomatic, administrative and technical employees of their

embassies and members of their families to diplomatic and consular missions of both states;

to inform, no later than 5 working days, about the results of consideration of visa applications submitted by deputy ministers, members of governmental delegations and commissions, members of chambers of trade and industry, entrepreneurs, employees of banks and organizations, members of sports competitions and participants in cultural, festival and concert programs;

to inform, no later than 7 working days, about the results of consideration of applications requesting entry visas for a term not exceeding 30 days, as well as transit visas for a term not exceeding 15 days;

to inform about the results of consideration of visa applications submitted by visitors arriving on the invitation of public organizations for a period exceeding 30 days – within 5 working days, and by visitors invited by private organizations fro a period exceeding 30 days – at the earliest possible date.

Visas to those arriving to both signatories to work or study, as well as visas valid for several occasions will be considered separately and issued only in case of expediency. Annual visas valid for several occasions will be issued to aircraft crews and drivers of trucks and buses, who work in organizations involved in international communication, at the earliest possible date.

The number of multilateral contacts in the sphere of tourism shows a healthy upward trend. In 2000, Uzbekistan, Kirgizstan, Tajikistan and Kazakhstan signed a joint document, which is vital to the expansion of cooperation in the development of sanatoria, health centers, resorts, tourist organizations and agencies, in a move to create the most auspicious conditions for the citizens of these states arriving to improve their health, to familiarize themselves with culture, nature, sights, historical monuments and national traditions of these neighboring countries”. The Agreement also helps organizations and enterprises to set up joint ventures and to implement investment projects in the area of tourism, recreation and provision of facilities in sanatoria and health resorts.

Cooperation in this sphere envisages the exchange of citizens on the principles of equality and mutual advantage. The signatories to this Agreement will, therefore, realize measures designed to simplify customs procedures, to exchange the lists of tourist firms, sanatoria and health resorts functioning on their territories, to facilitate the exchange of experience gathered in the field of organization and running of rest and recreation facilities, cooperation between sanatoria, rest houses, health resorts, children’s health-improvement centers and tourist organizations. Particular attention is paid to the dissemination of information by publishing advertising materials, exchanging relevant data, periodicals, films and exhibitions, as well as by conducting a variety of symposia and seminars.

Efforts are made to establish cooperative links between departments. In the tear 2000, the Uzbektourism National Company and Italy’s Association of Tour Operators (Assoziazione Tour Operator Italiani – ASTOI) signed an agreement, where the sides confirmed the necessity to make for a mutual increase in the volume of tourist flows in both directions by encouraging cooperation between enterprises and organizations under all types of ownership, which specialize in tourism, and by creating appropriate

conditions that are essential for developing this sector at a fast clip. The sides intend top to disseminate tourist information by different means, including the exchange of periodicals, specialist editions and films, as well as to organize conferences, symposia and seminars of every description, Beyond this, the signatories will study the opportunities for expanding bilateral cooperation:

in the field of tourism – between enterprises and organizations involved in construction, outfitting and management of hotels and other tourist installations, since they are regarded as the key aspect in the development of tourism in both countries;

in the field of investments to the tourist sector – the sides will exchange experience and consult together on various issues, including privileges granted to investors under both countries’ laws and great opportunities for investment that exist in Uzbekistan and Italy;

in the field of education and training of personnel for the tourist business.In 2000, the Governments of the Republic of Uzbekistan and the Russian

Federation signed an agreement regulating the issues of reciprocal visits by their citizens. In particular, Article 1 of this document stated that “citizens of one of the sides may enter, depart, transit, move and stay on the territory of another side without appropriate visas, only upon presentation of one of the documents designed to prove the identity and certify citizenship of their holders. Citizens of the signatories, who reside in third countries, may enter, depart, move, stay and transit through the signatories’ territories without any visas”. Article 5 of the Agreement regulates a range of issues, surrounding the stay on the territory of one of the signatories: “Citizens of one of the sides, when staying on the territory of another side, should observe its laws and rules, including those regulating the stay in this country.” In cases where they infringe thee rules, they are subject to deportation to the country of their citizenship or permanent residence as required under the law. In addition, the Governments retain the right to introduce certain restrictions on visa-free entry, departure, stay, movement and transit of Russian citizens, on condition that diplomatic channels are informed 72 hours prior to their introduction, with a view to ensuring homeland security, public order and health of their citizens.

The April 24, 2001 Resolution of the Cabinet of Ministers of the Republic of Uzbekistan, “On measures to intensify economic and trade cooperation with the Federal Republic of Germany” stipulated the signing of several documents, includi8ng those in the field of tourism. The Uzbektourism National Company planned to sign agreements, contracts and memoranda of intentions with the following organizations:

Germany’s Association of Tour Operators – on cooperation aimed at ensuring the exchange of tourists;

The Turingia Entrepreneurs’ Union in Central Asia – on cooperation in the field of tourism, designed to ensure the exchange of tourists, as well as on the application of advanced experience to the development of tourist infrastructure;

Hanzer Excursion International GmbH – on the exchange of tourists; IVS Bau-Konsal GmbH – on reconstruction of Bukhara Hotel (development of

a joint action plan, preparation of a business-plan, determination of sources of funding etc.).

In 2002, the Republic of Uzbekistan and Iran signed the memorandum on simplification of visa registration procedures for drivers of motor vehicles. According to this document, diplomatic and consular missions of the two countries issue entry-departure visas valid for several occasions for a term not exceeding 3 months (with the right to stay on their territories within up to 20 days) to drivers involved in international road freightage. Such visas should be issued within 5 working days from the date of receipt of an appropriate application. To obtain a transit visa, the drivers should present all the documents stipulated in the national legislation of both countries. What’s more, the signatories undertake to issue transit visas to drivers of trucks transiting through their territories, within 3 working days. At the same time, the signatories may refuse an entry visa or limit the term of stay for citizens, whose presence on their territories is undesirable.

In the course of 2003, the Republic of Uzbekistan simplified a procedure for registering entry visas for a number of European states. This unilateral measure has boosted the inflow of tourists from countries, such as the UK, Belgium, Switzerland, Italy, Spain and Austria.

In 2003, within the framework of note exchange between the Republic of Uzbekistan and Romania, the two countries signed an intergovernmental agreement, which released the holders of diplomatic passports from registration of visas for entry and stay on their territories during a period not exceeding 90 days from the date of entry. In the event their stay exceeds the indicated term, appropriate visas should be obtained in advance. However, if they perform official duties as diplomatic personnel, they may enter and stay in both countries within the entire period of their work without any visas required. This rule also applies to their family members. The same norm is specified in the 1997 Uzbek-Slovak Intergovernmental Agreement, “On visa-free trips of citizens – holders of diplomatic and official passports”. It was specified in the document that the citizens of one of the signatories must comply with the laws and rules of another signatory when staying on its territory, including the procedures for registration, stay and movement prescribed for foreigners”. The Uzbek-Hungarian Agreement, “On the procedure for visa-free trips of citizens with diplomatic passports” dated October 30, 1997, specifies that “the period , during which citizens from both countries may stay on their territories without any visas should not exceed 30 days from the date of entry”. However, at the written request of a diplomatic or consular mission of the signatory, whose citizens are solicited for, another signatory’s Ministry of Foreign Affairs may extend the term of stay up to 90 days.

It seems directly relevant to cite the example of Uzbek-American cooperation in the introduction of a passport system. Within the framework of note exchange between the Republic of Uzbekistan and the US, the countries signed an appropriate agreement, which stated that “the persons applying for non-immigrant visas should be refused the right of entry to the US, if at the date of application for such an entry visa, he (she) lacks a passport valid for a period of six months at the minimum, which allows its holder to return to the country, from which he (she) arrived, or moved to a third country”. This requirement is an outgrowth of policy pursued by the US Government, which permits most individuals entering the country with non-

immigration visas on hand, to stay on its territory within 6 months. Governments of many countries have signed agreements with the US Government on the extended period of passport validity. Such a passport is recognized as valid for its holder’s return to the country, where the document was issued, within 6 months after the expiry of the latter’s period of validity. This provision makes it possible to issue an US non-immigration visa to its holder at any time during the entire period of the passport’s validity.

A word or two should be said about peculiarities of international collaboration on tourist projects and programs. During the official visit by the President V. Klaus of the Czech Republic to Uzbekistan on September 12-15, 2004, the sides talked over a a whole spectrum of issues surrounding the expansion of bilateral cooperation in political, trade-economic and cultural-humanitarian areas, including tourism. Following the visit, the Uzbek Government passed the Resolution, “On measures to further develop cooperation with the Czech Republic”, which commissioned the Uzbektourism National Company to set up a working group specializing in the development of tourism in this country, establishment of joint venture tourist agencies and training of personnel for this sector.

TOURISTS ARE COUNTED IN AUTUMN: RESULTS OF THEN TOURIST FORUM IN TASHKENT

The 11th International Tourist Fair, Tourism on the Silk Road, which was traditionally held in the Uzbek capital city in autumn, has made an appreciable contribution to the development of the hospitality industry not only in the Republic itself, but also in a number of countries exploiting this brand in their activity. The event’s outcome summed up by the Uzbektourism National Company at the press conference for domestic and foreign journalists is indicative of this statement.

As the head of the National Tourist Administration, Rustam Kurbanov pointed out, certain shifts, both quantitative and qualitative, took place in the organization and conduct of this year’s fair, whose significance for the tourist sector can hardly be overestimated. In particular, compared with 2004, when the exposition occupied 436 sq. m. and was attended by some 5,000 visitors during the fair’s three-day work, the 2005 fair covered up to 505.5 sq. m., including the floor space within the limits of Uzkurgazmasavdo of some 444 sq. m., with the number of visitors exceeding 7,000 during the 2 days of its work.

In addition, Rustam Kurbanov drew the journalists’ attention to the following figures: over 100 companies exhibited their products at the fair, of which 73 were national/local firms, 7 – international companies and 20 – foreign partners of Uzbek tourist agencies. In the course of the fair, 1,054 negotiations were held, and 733 agreements signed, with 151 contracts covering tourist services and 389 ones involving regional sub-divisions of Uzbektourism.

In terms of location, the bulk of the agreements signed were associated with the Samarkand Province (161). A breakdown of the remaining agreements signed at the fair is as follows: Bukhara (50), Khorezm (43), Navoi (32), Ferghana (37), Surkhandarya and Andijan (10 each), Kashkadarya (17), Namaghan (16) and Djizak (13). Tashkent-Sugurta, an insurance company based in the Uzbek capital, signed 12

agreements with partners and clients on the provision of insurance services in the field of tourism. Of the foreign firms exhibiting their products at the fair, India-Tourism was an undisputable leader by the number of contracts signed (more than 50). Among the fair participants from Uzbekistan, the health centers of Aktash and Beldersay bore the palm on this front – each of them signed more than 20 agreements. The Uzbekiston Khavo Yullary National Air Company carried on 5 negotiations, which resulted in the signing of 20 agreements. As for the Uzzhildortrans Rail Company, its achievements in this area look as follows: 30 and 18, respectively. The official support in the organization and conduct of the fair was provided by the World Tourist Organization (WTO) and Dedeman Hotel. Periodicals such as Argumenty I Fakty, Tasvir, Discovery, TTG-Russia etc. were among the most active providers of information support.

The head of Uzbektourism accentuated the active participation in this annual event of foreign governmental delegations, a fact testifying to an unremitting interest taken by some foreign states for projects that deal with the development of tourism on the Great Silk Road. For example, ministries of tourism from Turkey, Azerbaijan and Cyprus were broadly represented at the fair. Apart from big Tashkent-based hotels (the former Sheraton and Inter Continental etc.), hotel products were displayed by a number of licensed facilities, including those incorporated in national and international networks. As well as that, the small sector in tourist business was represented by private hotels and guest houses operating in the Republic’s Khorezm, Bukhara and Samarkand Provinces.

In the course of the rewarding ceremony , several fair participants were decorated with diplomas and certificates in the following nominations: “Best Tour Operator in External Tourism” (Yasmina-Tour), “Best Tour Operator in Internal Tourism” (Uzintour), “Best Private Hotel” (Silk Road), “Leader of the Season” (Orient-Voyage), “Best Tourist Company Leader” (Rustam Mirzaev, who heads Sairam-Tourism), “Best stand at the fair” (Tashkent-based Grand-Mir Hotel), and “Most active Foreign Participant” (Enda-Tour, Turkey). According to experts, upwards of 100 professionals were registered at the presentation ceremony of the National Tourist Company’s website. The presentation of a Malika Hotel network was attended by 50 specialists, a fashion show and an exhibition of national crafts – by 100 professional visitors, while a total of 140 specialists and businessmen interested in the development of tourism took part in a number of “round-table: discussions held within the fair’s framework.

“This year, we noted that the number of overseas participants was smaller than that registered at the previous events, - admitted Rustam Kurbanov. – This can be explained by several factors, including the recent holding of similar fairs in France, China, Malayisa and Poland, which, naturally, distracted certain resources from the Tashkent Tourist Fair. Furthermore, as the tourist season continues, most our partners are still busy. However, next year, we plan to coordinate the schedule of the 12th International Tourist Fair, “tourism on the Silk Road” with the World Tourist Organization, thereby optimizing its activity by taking account of world tendencies that exist in the travel and recreation industry.”

Those in attendance at the press conference were also informed that the National Tourist Company of the Republic of Uzbekistan intends to continue its close cooperation with private structures, including the Association of Private Tourist Organizations. Besides, their attention was attracted to the heightened activity of many foreign diplomatic missions in Uzbekistan. For instance, one of the “round-table” meetings convened with the framework of the fair, was attended by diplomats from Italy, Israel, the Czech Republic, Japan and Turkmenistan, representatives of the US Chamber of Trade and Industry, several international foundations and organizations, and the mass media accredited in Uzbekistan. Some of them read reports, while others took active part in extensive discussion of the problems facing Uzbek tourism and prospects for its further development.

“On the eve of the fair, the Cabinet of Ministers of the Republic of Uzbekistan passed a resolution on measures to develop tourism in the Khorezm Province and Karakalpakstan – added R. Kurbanov. – This fact is indicative of the importance the Uzbek Government attaches to this sector. Undoubtedly, the Resolution will influence many programs and investment projects, which are presently in the making in our country”.

Answering the questions put by the journalists, the head of Uzbektourism stressed that work in now under way on a draft state program for tourism development for the period of up to 2010. The document will encompass a range of measures aimed at a substantial expansion of infrastructure in the travel and recreation industry, strengthening of the role played by the private sector, further improvement of the regulatory and legislative framework for running tourist business and intensification of partner relations with international tourist centers. Today, the Uzbektourism National Company runs its representative offices in many foreign countries worldwide. A special part in the development of tourism in Uzbekistan is assigned to the mass media as a serious and influential instrument for promoting both the image of our Republic as the center of the Great Silk Road, and a specific model of tourism, which combines Oriental hospitality and Western quality standards/technologies and management practices.

It was also observed at the press conference that the terrorist acts that had occurred in Uzbekist6an in the last few years couldn’t but produce their contagion effects on the current situation in the nation’s tourist sector. After the events in Andijan in May 2005, some 30 per cent of applications for entry visas from foreign tourists were annulled. The US and European states plan to include the Republic of Uzbekistan in the third category in a list of countries with a high level of corruption and political instability. Downgrading Uzbekistan to the level of such countries as Afghanistan in terms of their danger to other states may strike a hard blow to the national tourist industry.

GROWTH FORECASTS FOR THE TOURIST INDUSTRY OF UZBEKISTAN

By 2010, the volume of tourist-excursion services rendered in the Republic is forecast to increase 2.5 times as much, hotel services – 2.7 times, trade and public catering services – 2.2 times and transport services – 1.7 times. These parameters are prescribed in the April 17, 2006 Presidential Decree No ПП-325, “On measures to accelerate the development of the services sector in the Republic of Uzbekistan for the period 2006-2010”.

The document has been issued in a move to create a favorable environment for accelerated development of the services sector in the Republic, to augment its share in the national economy, to enlarge the number of people involved in this sector, while ensuring, on this basis, an improvement of their living standards, as well as to expand the home market for modern diverse tourist services of high quality.

It is necessary to emphasize the fact that in developed countries, the services sector makes up some 60-80 per cent of GDP. Up to 70 per cent of people involved in their economies as a whole are employed in the services sector. What’s more, in the consumer expenditure structure, expenses spent on all sorts of services vary from 50 per cent to 60 per cent. In Uzbekistan, to compare, this indicator doesn’t exceed 10-15 per cent. The program under discussion stipulates a 49 per cent increase in the services sector’s share in the national GDP by then year 2010, with the number of employees within the sector rising 1.6-fold.

Regarding the tourist industry in particular, the program covers a variety of directions. For instance, much prominence is given to sanatoria, health resorts and sports centers. By the 4th quarter of the current year, reconstruction will be brought to completion at AO Kumyshkan’s tourist center located in the Tashkent Province, making it possible to earn annual receipts of 180 million Soum. By 2010, the number of sanatoria and health resorts, which are in the province of the Trade Unions Federation, is expected to reach 20. The incidence of people, who will have access to such services, will increase from 3.240 to 3,650. In particular, it is planned to build a new sanatorium for 100 patients in the Navoi Province. Construction and putting into operation of some 2,000 sports structures, as well as the development of a network of sports clubs and production of 2 million items of sports goods and equipment will make a strong impetus to this sector.

A 6 per cent increase in the volume of inbound and domestic tourism will become possible thanks to the expansion of existing tourist-excursion routes and development of new ones, organization of cognitive, cultural, entertaining and sports programs, including alternative types of tourism, such as fishing, hunting, mountaineering etc.

Much attention is being devoted to infrastructure of tourism. By 2010, 100 units of tourist-class means of transport, specialized hotel equipment and implements will be bought for the home tourist industry in an attempt to improve the quality of services offered to foreign and domestic travelers. As a result, their volume of profit earned by the sector is expected to run into 5.5 billion Soum a year. Furthermore, the formation of an efficient network of road haulage routes will allow, on the one hand, to introduce elements of competition among freight carriers, while doubling the volume of transport services, on the other hand. In 2006, 9 maintenance centers for motor vehicles will be put into operation countrywide. The period 2007-2009 will see

the commissioning of another 30 such centers, thus ensuring the expansion of a range of paid services by 2.1 times as much. By the by, it is also planned to build a network of filling stations, maintenance centers, public catering outlets, means of communication, motels and campings along the international, intra-republican and inter-province motorways, which will result in a 2-fold rise in the volume of services rendered within the tourist sector.

With a new railway line Tashguzar – Boisun – Kumkurgan coming on stream, a number of other tourist centers, hitherto inaccessible due to their remoteness, will, at last, be indicated on the tourist map of Uzbekistan. The cost of passenger transportation on the Tashkent – Termez route will decline by 30 per cent, whereas its volume will experience 1.2-fold increase. The acquisition within the next four years of 9 IL-114-100 airliners to service domestic routes will allow to reach a 1.2-fold rise in air transportation volumes. As regards international flights, a 17 per cent growth is forecast there, thanks to an increased economic efficiency of cargo aircraft use.

Till the year 2010, some 30 historical monuments scattered all over the Republic will be restored. Their inclusion in tourist routes may well augment the amount of receipts by 20 million Soum a year. Reconstruction of existing parks of culture and rest and commissioning of new ones will make it possible to provide recreation-related services to another 150,000 Uzbek citizens.

During a 5-year period, 1,001 retail trade outlets will come on stream, of which 674 are located in rural areas, plus 589 enterprises of public catering, including 300 – in the countryside. While traveling throughout Uzbekistan, home and foreign tourists will have access to delicious national and European dishes.

The banking sector, as an important component of tourist infrastructure, is another focus of the government’s attention. By 2010, the number of mini-banks will grow by 60 per cent, to reach a total of 2,343. An increase in the number of both plastic cards in circulation up to 5 million and terminals installed all over the place will lead to a 25 per cent (31 billion Soum) rise in the volume of bank transactions.

A great deal of attention is also being devoted to the state of hotel networks in the country. By the end of the current year, the second stage of Shakhriston Hotel will be put into operation in the town of Bukhara. According to experts’ tallies, this hotel will be able to accommodate up to 4,000 tourists, earn US $300,000 in receipts and create 100 new jobs. Furthermore, in 2007, reconstruction works will be completed at one more hotel facility – three-star Bukhara Hotel. Being in a position to attract up to 6,000 foreign tourists, this hotel may generate about US $400,000 in annual profit.

In 2007, Shakhrisabz Hotel based in the town of Shakhrisabz will be commissioned. This hotel facility will be able to accommodate 5,000 tourists, earn US $350,000 in annual receipts and create 120 new jobs. Another hotel, Ziyorat, will come on stream in Bukhara in 2008 after a corresponding refurbishment. Capable of accommodating up to 3,000 visitors, it may generate US $200,000 of profit annually.

BIG RESULTS OF THEN TOURIST FORUM IN TASHKENT

The 11th International Tourist Fair, Tourism on the Silk Road, which was traditionally held in the Uzbek capital city in autumn, has made an appreciable contribution to the development of the hospitality industry not only in the Republic itself, but also in a number of countries exploiting this brand in their activity. The event’s outcome summed up by the Uzbektourism National Company at the press conference for domestic and foreign journalists is indicative of this statement.

As the head of the National Tourist Administration, Rustam Kurbanov pointed out, certain shifts, both quantitative and qualitative, took place in the organization and conduct of this year’s fair, whose significance for the tourist sector can hardly be overestimated. In particular, compared with 2004, when the exposition occupied 436 sq. m. and was attended by some 5,000 visitors during the fair’s three-day work, the 2005 fair covered up to 505.5 sq. m., including the floor space within the limits of Uzkurgazmasavdo of some 444 sq. m., with the number of visitors exceeding 7,000 during the 2 days of its work.

In addition, Rustam Kurbanov drew the journalists’ attention to the following figures: over 100 companies exhibited their products at the fair, of which 73 were national/local firms, 7 – international companies and 20 – foreign partners of Uzbek tourist agencies. In the course of the fair, 1,054 negotiations were held, and 733 agreements signed, with 151 contracts covering tourist services and 389 ones involving regional sub-divisions of Uzbektourism.

In terms of location, the bulk of the agreements signed were associated with the Samarkand Province (161). A breakdown of the remaining agreements signed at the fair is as follows: Bukhara (50), Khorezm (43), Navoi (32), Ferghana (37), Surkhandarya and Andijan (10 each), Kashkadarya (17), Namaghan (16) and Djizak (13). Tashkent-Sugurta, an insurance company based in the Uzbek capital, signed 12 agreements with partners and clients on the provision of insurance services in the field of tourism. Of the foreign firms exhibiting their products at the fair, India-Tourism was an undisputable leader by the number of contracts signed (more than 50). Among the fair participants from Uzbekistan, the health centers of Aktash and Beldersay bore the palm on this front – each of them signed more than 20 agreements. The Uzbekiston Khavo Yullary National Air Company carried on 5 negotiations, which resulted in the signing of 20 agreements. As for the Uzzhildortrans Rail Company, its achievements in this area look as follows: 30 and 18, respectively. The official support in the organization and conduct of the fair was provided by the World Tourist Organization (WTO) and Dedeman Hotel. Periodicals such as Argumenty I Fakty, Tasvir, Discovery, TTG-Russia etc. were among the most active providers of information support.

The head of Uzbektourism accentuated the active participation in this annual event of foreign governmental delegations, a fact testifying to an unremitting interest taken by some foreign states for projects that deal with the development of tourism on the Great Silk Road. For example, ministries of tourism from Turkey, Azerbaijan and Cyprus were broadly represented at the fair. Apart from big Tashkent-based hotels (the former Sheraton and Inter Continental etc.), hotel products were displayed by a number of licensed facilities, including those incorporated in national and international networks. As well as that, the small sector in tourist business was

represented by private hotels and guest houses operating in the Republic’s Khorezm, Bukhara and Samarkand Provinces.

In the course of the rewarding ceremony , several fair participants were decorated with diplomas and certificates in the following nominations: “Best Tour Operator in External Tourism” (Yasmina-Tour), “Best Tour Operator in Internal Tourism” (Uzintour), “Best Private Hotel” (Silk Road), “Leader of the Season” (Orient-Voyage), “Best Tourist Company Leader” (Rustam Mirzaev, who heads Sairam-Tourism), “Best stand at the fair” (Tashkent-based Grand-Mir Hotel), and “Most active Foreign Participant” (Enda-Tour, Turkey). According to experts, upwards of 100 professionals were registered at the presentation ceremony of the National Tourist Company’s website. The presentation of a Malika Hotel network was attended by 50 specialists, a fashion show and an exhibition of national crafts – by 100 professional visitors, while a total of 140 specialists and businessmen interested in the development of tourism took part in a number of “round-table: discussions held within the fair’s framework.

“This year, we noted that the number of overseas participants was smaller than that registered at the previous events, - admitted Rustam Kurbanov. – This can be explained by several factors, including the recent holding of similar fairs in France, China, Malayisa and Poland, which, naturally, distracted certain resources from the Tashkent Tourist Fair. Furthermore, as the tourist season continues, most our partners are still busy. However, next year, we plan to coordinate the schedule of the 12th International Tourist Fair, “tourism on the Silk Road” with the World Tourist Organization, thereby optimizing its activity by taking account of world tendencies that exist in the travel and recreation industry.”

Those in attendance at the press conference were also informed that the National Tourist Company of the Republic of Uzbekistan intends to continue its close cooperation with private structures, including the Association of Private Tourist Organizations. Besides, their attention was attracted to the heightened activity of many foreign diplomatic missions in Uzbekistan. For instance, one of the “round-table” meetings convened with the framework of the fair, was attended by diplomats from Italy, Israel, the Czech Republic, Japan and Turkmenistan, representatives of the US Chamber of Trade and Industry, several international foundations and organizations, and the mass media accredited in Uzbekistan. Some of them read reports, while others took active part in extensive discussion of the problems facing Uzbek tourism and prospects for its further development.

“On the eve of the fair, the Cabinet of Ministers of the Republic of Uzbekistan passed a resolution on measures to develop tourism in the Khorezm Province and Karakalpakstan – added R. Kurbanov. – This fact is indicative of the importance the Uzbek Government attaches to this sector. Undoubtedly, the Resolution will influence many programs and investment projects, which are presently in the making in our country”.

Answering the questions put by the journalists, the head of Uzbektourism stressed that work in now under way on a draft state program for tourism development for the period of up to 2010. The document will encompass a range of measures aimed at a substantial expansion of infrastructure in the travel and

recreation industry, strengthening of the role played by the private sector, further improvement of the regulatory and legislative framework for running tourist business and intensification of partner relations with international tourist centers. Today, the Uzbektourism National Company runs its representative offices in many foreign countries worldwide. A special part in the development of tourism in Uzbekistan is assigned to the mass media as a serious and influential instrument for promoting both the image of our Republic as the center of the Great Silk Road, and a specific model of tourism, which combines Oriental hospitality and Western quality standards/technologies and management practices.

It was also observed at the press conference that the terrorist acts that had occurred in Uzbekist6an in the last few years couldn’t but produce their contagion effects on the current situation in the nation’s tourist sector. After the events in Andijan in May 2005, some 30 per cent of applications for entry visas from foreign tourists were annulled. The US and European states plan to include the Republic of Uzbekistan in the third category in a list of countries with a high level of corruption and political instability. Downgrading Uzbekistan to the level of such countries as Afghanistan in terms of their danger to other states may strike a hard blow to the national tourist industry.

MAKING AN ECOLOGICAL TOURIST PRODUCT

Tashkent recently hosted a meeting concerning the UNDP project on tourism development in the Nuratau-Kyzylkum biosphere reserve. The meeting summed up the positive local and European experience in the development of ecological tourism, and it developed a common approach to the creation of a tourist product in the Nuratau-Kyzylkum biosphere reserve.

According to Sergey Zagrebin, the project director, the reserve is located in three Uzbek provinces (Dzhizak, Samarkand, and Navoi), with rivers and lakes, and has rich flora and fauna as well as natural landscapes that attract many visitors from other regions of Uzbekistan and abroad. It is necessary to balance the demands of the tourists and the recreational possibilities of the reserve, preserving the biological diversity of this area and providing local residents with means of existence.

German experts involved in the project said that ecological tourism pursues five goals: to preserve natural resources, restore local culture and traditions, finance environmental protection measures, support local economy, and improve the lives of local residents. These tasks have been successfully fulfilled in neighboring Kyrgyzstan where many tourist firms specialize in eco-tourism. The German experts said the Nuratau-Kyzylkum reserve should specialize in hunting and fishing, which would attract foreign visitors.

Boris Karpov of EuropeAid's project to preserve the biological diversity of the Western Tien Shan talked about the results of the first year of the project implementation. In his words, they have focused on ecological tourism in the Ugam-Chatkal natural park and the development of community-based tourism here. "We have questioned visitors and tourist firms and revealed priorities," said Karpov.

"Ninety percent of all visitors to this area are unorganized tourists, 80% of which are residents of Tashkent. Foreign tourists make up less than 1%."

Tourists here are offered mounted tours near Humsan and Chimgan, and mountain trekking near Brichmulla. Starting this year the project will be training local communities to make their services meet international standards. This year, in cooperation with interested tourist firms, the project will develop a tourist product to be offered at the domestic and international tourist market.

"UNDP can use the experience of the EuropeAid project as a model for creating a tourist product based on local communities," Karpov said.

GROWTH FORECASTS FOR THE TOURIST INDUSTRY OF UZBEKISTAN

By 2010, the volume of tourist-excursion services rendered in the Republic is forecast to increase 2.5 times as much, hotel services – 2.7 times, trade and public catering services – 2.2 times and transport services – 1.7 times. These parameters are prescribed in the April 17, 2006 Presidential Decree No ПП-325, “On measures to accelerate the development of the services sector in the Republic of Uzbekistan for the period 2006-2010”.

The document has been issued in a move to create a favorable environment for accelerated development of the services sector in the Republic, to augment its share in the national economy, to enlarge the number of people involved in this sector, while ensuring, on this basis, an improvement of their living standards, as well as to expand the home market for modern diverse tourist services of high quality.

It is necessary to emphasize the fact that in developed countries, the services sector makes up some 60-80 per cent of GDP. Up to 70 per cent of people involved in their economies as a whole are employed in the services sector. What’s more, in the consumer expenditure structure, expenses spent on all sorts of services vary from 50 per cent to 60 per cent. In Uzbekistan, to compare, this indicator doesn’t exceed 10-15 per cent. The program under discussion stipulates a 49 per cent increase in the services sector’s share in the national GDP by then year 2010, with the number of employees within the sector rising 1.6-fold.

Regarding the tourist industry in particular, the program covers a variety of directions. For instance, much prominence is given to sanatoria, health resorts and sports centers. By the 4th quarter of the current year, reconstruction will be brought to completion at AO Kumyshkan’s tourist center located in the Tashkent Province, making it possible to earn annual receipts of 180 million Soum. By 2010, the number of sanatoria and health resorts, which are in the province of the Trade Unions Federation, is expected to reach 20. The incidence of people, who will have access to such services, will increase from 3.240 to 3,650. In particular, it is planned to build a new sanatorium for 100 patients in the Navoi Province. Construction and putting into operation of some 2,000 sports structures, as well as the development of a network of sports clubs and production of 2 million items of sports goods and equipment will make a strong impetus to this sector.

A 6 per cent increase in the volume of inbound and domestic tourism will become possible thanks to the expansion of existing tourist-excursion routes and development of new ones, organization of cognitive, cultural, entertaining and sports programs, including alternative types of tourism, such as fishing, hunting, mountaineering etc.

Much attention is being devoted to infrastructure of tourism. By 2010, 100 units of tourist-class means of transport, specialized hotel equipment and implements will be bought for the home tourist industry in an attempt to improve the quality of services offered to foreign and domestic travelers. As a result, their volume of profit earned by the sector is expected to run into 5.5 billion Soum a year. Furthermore, the formation of an efficient network of road haulage routes will allow, on the one hand, to introduce elements of competition among freight carriers, while doubling the volume of transport services, on the other hand. In 2006, 9 maintenance centers for motor vehicles will be put into operation countrywide. The period 2007-2009 will see the commissioning of another 30 such centers, thus ensuring the expansion of a range of paid services by 2.1 times as much. By the by, it is also planned to build a network of filling stations, maintenance centers, public catering outlets, means of communication, motels and campings along the international, intra-republican and inter-province motorways, which will result in a 2-fold rise in the volume of services rendered within the tourist sector.

With a new railway line Tashguzar – Boisun – Kumkurgan coming on stream, a number of other tourist centers, hitherto inaccessible due to their remoteness, will, at last, be indicated on the tourist map of Uzbekistan. The cost of passenger transportation on the Tashkent – Termez route will decline by 30 per cent, whereas its volume will experience 1.2-fold increase. The acquisition within the next four years of 9 IL-114-100 airliners to service domestic routes will allow to reach a 1.2-fold rise in air transportation volumes. As regards international flights, a 17 per cent growth is forecast there, thanks to an increased economic efficiency of cargo aircraft use.

Till the year 2010, some 30 historical monuments scattered all over the Republic will be restored. Their inclusion in tourist routes may well augment the amount of receipts by 20 million Soum a year. Reconstruction of existing parks of culture and rest and commissioning of new ones will make it possible to provide recreation-related services to another 150,000 Uzbek citizens.

During a 5-year period, 1,001 retail trade outlets will come on stream, of which 674 are located in rural areas, plus 589 enterprises of public catering, including 300 – in the countryside. While traveling throughout Uzbekistan, home and foreign tourists will have access to delicious national and European dishes.

The banking sector, as an important component of tourist infrastructure, is another focus of the government’s attention. By 2010, the number of mini-banks will grow by 60 per cent, to reach a total of 2,343. An increase in the number of both plastic cards in circulation up to 5 million and terminals installed all over the place will lead to a 25 per cent (31 billion Soum) rise in the volume of bank transactions.

A great deal of attention is also being devoted to the state of hotel networks in the country. By the end of the current year, the second stage of Shakhriston Hotel will

be put into operation in the town of Bukhara. According to experts’ tallies, this hotel will be able to accommodate up to 4,000 tourists, earn US $300,000 in receipts and create 100 new jobs. Furthermore, in 2007, reconstruction works will be completed at one more hotel facility – three-star Bukhara Hotel. Being in a position to attract up to 6,000 foreign tourists, this hotel may generate about US $400,000 in annual profit.

In 2007, Shakhrisabz Hotel based in the town of Shakhrisabz will be commissioned. This hotel facility will be able to accommodate 5,000 tourists, earn US $350,000 in annual receipts and create 120 new jobs. Another hotel, Ziyorat, will come on stream in Bukhara in 2008 after a corresponding refurbishment. Capable of accommodating up to 3,000 visitors, it may generate US $200,000 of profit annually.