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Uzbekistan: Uzbekistan Tourism Profile 2012

2012/04/06

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Uzbekistan Tourism Profile 2012

Analyse of the sector 30/11/2010
Uzbek Government Standing In The Way
The potential of Uzbekistan as a tourist destination, as the centrepiece of the Silk Road, has long been recognised. This is potential however that has never been fulfilled, largely due to complicated visa regime that the Uzbek Government has maintained. Although this regime has served to discourage tourists from visiting Uzbekistan, it has guaranteed a vibrant travel retail segment, since their provision of “letters of invitation” means that they are involved in the travel plans of all non-CIS arrivals. Until this regime is lifted however, the Uzbekistan Tourism Industry shall be significantly held back
 
Uzbekistan Government Attempting To Sell Luxury Hotels
 
As Uzbekistan slowly eases itself out of being a command-economy it is attempting to attract foreign investment in its luxury hotels. Despite constant extensions to the deadlines however, buyers do not appear to be interested, due to an oversupply of luxury hotels already, demand shifting to B&Bs, and the specification that the investor also has to spend millions of $US on renovations, above and beyond the asking price. The deal is thus not looking attractive.
 
Visa Free Travel For Kyrgyz Stimulates Arrivals
 
Whilst Uzbekistan’s restrictive visa regime has prevented tourism growth for the nation, and likewise the loosening of these restrictions and the availability of visa-free travel to and from often-rival Kyrgyzstan has fuelled tourist flows between the two countries, although such flows would be even higher if Uzbekistan did not sporadically close the border. Previously Kyrgyz needed to take a long journey to the capital Bishkek, to get a visa, in order to travel to a destination only a couple of miles away. With a large Uzbek population in Kyrgyzstan, VFR travel makes up a large slice of this, although since such travellers stay with their families, the revenue earned from them is not very high.
 
The Silk Road The Centrepiece Of Uzbekistan’s Tourism Marketing
 
The Silk Road has long had an appeal to the global imagination, suggesting exotic adventures and long journeys, and Uzbekistan, with three of the most famous Silk Road cities – Samarkand, Bukhara and Khiva – have been able to position themselves strongly as the epicentre of the Silk Road, a positioning that with a more encouraging visa regime would be far more lucrative. Ultimately, offering the option of visa-free travel along the entire Silk Road could create a new vibrant tourist route, paranoid Governments and feuding nations along the route shall make this unlikely.
 
Uzbekistan Airways and Korea Air Become Friends
 
The future of Uzbekistan Airways is looking solid, due not only to an order for ten A320s over the period until 2014, but also due to a partnership with Korea Air, who are interested not only in “sponsoring” Uzbekistan Airways attempt to join the SkyTeam airline alliance, which in itself shall vastly increase the reach of Uzbekistan Airways and thus the accessibility to Uzbekistan, but also are big investors in Navoi International Airport and Free Industrial Economic Zone, which Uzbekistan is hoping to turn into a hub for flights (particularly for cargo) between Europe and Asia.