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Growth Forecasts For The Tourist Industry Of Uzbekistan

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  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.
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