Uzbekistan becomes touristic destination

Uzbekistan has a great historical, cultural and architectural heritage. Samarkand, Bukhara, Khiva are the brands of the ancient culture of the East. The landscapes of mountains and deserts of Uzbekistan attract attention and admiration of the Internet community. Therefore, the tourism potential of this country can hardly be overestimated and the government is making significant efforts to develop it, writes Khasanjon Majidov, Leading Researcher at the Centre for Economic Research and Reforms, in the article for EU Reporter.

Explosive development of tourism

At the beginning of 2016, a process of radical reform of the tourism industry was launched in Uzbekistan. More than 60 regulations were adopted related to the development of tourism industry during the 2016-2020. The visa regime between the countries was simplified. In 2018, Uzbekistan introduced a visa-free regime for citizens of 9 countries, in 2019 for citizens of 47 countries, in 2020 - 2021 another 5 countries. As of May 10, 2021, the number of countries for citizens of which a visa-free regime is granted in the Republic of Uzbekistan is 90 countries.

In addition, citizens of about 80 countries have the opportunity to apply for an electronic visa in a simplified manner. Five new types of visas have been introduced for foreigners: "Compatriot", "Student", "Academic", "Medicine" and "Pilgrimage". According to the Ministry of Tourism and Sports of the Republic of Uzbekistan, the simplification of the visa regime has yielded positive results. In particular, in 2019, if the average growth in the number of foreign tourists was 26%, then the growth rate among the countries where the visa-free regime was introduced reached 58%.

The government took comprehensive measures to develop tourism infrastructure. Firstly, 22 types of requirements regulating the activities of hostels related to the type of budget housing have been canceled. In particular, the procedure for mandatory certification of hotel services provided by hostels has been canceled and the practice of working with a unified register of guest houses and hostels has been introduced. Secondly, in order to increase the number of small hotels, entrepreneurs were provided with 8 standard projects of small hotels up to 50 rooms free of charge and this measure is developed based on the experience of Turkey and South Korea.

As a result, the number of placements in the country has increased dramatically. In particular, from 2016 to 2020, accommodation places increased from 750 to 1308 and the number of guest houses increased 13 times to 1386. Their number is planned to be increased to 2 thousand. As a result of the reforms in the tourism sector from 2016 to 2019, the number of tourists increased from 2.0 million to 6.7 million. The dynamics of the increase in the number of foreign tourists in 2019 compare to 2010 amounted to a record 592% (an increase of more than 6 times).

It is noteworthy that the growth in the number of tourists from different regions occurred in different ways. For example, the number of visitors from Central Asian countries increased by an average of 22-25% per year, while the annual growth among tourists from non-CIS countries was 50%. At the same time, positive results were noted in domestic tourism. Compared to 2016, the number of domestic tourists in 2019 almost doubled and amounted to 14.7 million.

Impact of the pandemic

It should be noted that due to the restrictions imposed against the backdrop of the coronavirus pandemic and the consequences of the global crisis, the tourism industry has suffered serious losses. In particular, the number of foreign tourists visiting Uzbekistan decreased by more than 4.5 times, to 1.5 million, and the volume of tourist services fell to $261 million in 2020.

Taking into account the current situation, the “Uzbekistan project” was developed. Safe travel guaranteed ("Uzbekistan. Safe travel guaranteed"), which is a new system of sanitary and epidemiological safety for tourists based on world standards. Certification of tourism objects and related infrastructure, tourism services based on new sanitary and hygienic requirements for all state border posts; air, railway and bus stations; objects of tangible cultural heritage, museums, theaters, etc. To mitigate the consequences of the pandemic for the tourism industry, the Safe Tourism Fund was formed at the expense of an initial contribution from the Anti-Crisis Fund, as well as payments for passing voluntary certification implemented within the framework of the “Uzbekistan. Safe travel GUARANTEED ".

Tourism players received a number of benefits and preferences to mitigate the impact of the coronavirus pandemic. The income tax rate was reduced by 50% of the established rates, they were exempted from paying land tax and property tax of legal entities and the social tax was set at a reduced rate of 1%. They also partially reimbursed interest expenses on previously issued loans from commercial banks for the construction of accommodation facilities and expenses for renovation, reconstruction and expansion of the material and technical base. Subsidizing accommodation facilities is provided in the amount of 10% of the cost of hotel services from June 1, 2020 to December 31, 2021. In total, 1,750 tourism entities received benefits on property tax, land and social taxes in the amount of about 60 billion soums.

Diversification of directions

In recent years, Uzbekistan has been focusing on the diversification of tourism services and the development of new types of tourism. In particular, much attention is paid to increase the flow of tourists through MICE tourism, which is organizing various tournaments, meetings, conferences and exhibitions in Uzbekistan. The traditional sports tournament "Game of Heroes" in Khorezm, the "Art of Bakhchichilik" festival in Surkhandarya, the "Muynak-2019" rally in Karakalpakstan and others have been held. The government approved the Action Plan for the development of MICE tourism in Uzbekistan.

Film tourism is an important tool for shaping the country's image, providing information to potential tourists. For the development of film tourism in Uzbekistan, a regulation has been developed on the procedure for reimbursing part of the costs ("rebate") of foreign film companies when creating audiovisual products on the territory of Uzbekistan. Moreover, foreign film companies have released films such as Basilik, Khuda Hafiz and Al Safar. Last year, foreign film companies shot 6 feature films in Uzbekistan.

Pilgrimage tourism. In order to create special convenience for those visiting Uzbekistan for the purpose of pilgrim tourism, new requirements have been introduced for hotels, a map of the country's mosques has been developed and posted in the mobile application. The first Pilgrimage Tourism Forum was held in Bukhara and 120 foreign guests from 34 countries took part.

Medical tourism. In Uzbekistan, measures are being taken to develop medical tourism and attract more tourists to medical organizations. In 2019, the number of foreign citizens visiting Uzbekistan for medical purposes exceeded 50 thousand. In fact, this number can be higher, since determining the number of tourists visiting private medical clinics is still a difficult task.

Conclusion

In recent years, Uzbekistan has been recognized as the best travel destination in the world by The Guardian, the fastest growing country in the eyes of Wanderlust and the best growing tourism destination according to Grand voyage. As a result of consistently implemented measures, Uzbekistan has climbed 10 positions (22 places) in the Global Muslim Tourism Index, compiled by Crescent Rating. In addition, the World Tourism Organization ranked Uzbekistan 4th in the list of the fastest growing countries in the tourism sector. In conclusion, it should be noted that the tourism of Uzbekistan needs to transform its business models through innovation and digitalization. It is necessary to develop such market segments as agro and ethno tourism.