The current WTO Great Silk Road revival project seeks to create a regional tourism infrastructure response for all countries which belonged to the original Silk Road route, of which Uzbekistan was an integral part. Increasing tourist length of stays (from 3-4 to 7-8 days), developing tourism centers (architectural, historical and sporting) and business fairs are part of its remit. This provides additional support for potential investors. Despite that, it is important that visa registration procedures etc. are simplified from the current difficult process.
The tourist flow collapsed at the end of the Soviet Union. In 1989, the reported figure was 1 million (foreigners). In 1993, between 40,000 and 100,000 (more accurate information is unavailable.) In 1996, it was up to approximately 120,000, mostly from Europe, Turkey, Japan, the USA and India. Total revenue in 1994 was almost US$7.5 million.
Foreign investment can be via joint venture, 100% foreign ownership, or part ownership with Uzbektourism.
Hotel Ownership
The ex-Soviet hotels' facilities and services are very low standard with prices in central hotels well in excess of that expected by foreigners for the price charged. Business facilities in particular are in noticeable abeyance. Rooms in Tashkent city and region number over 2,000 (a new Intercontinental has just opened in the city), Samarkand 600, and Bukhara around 900. Major hotels in Tashkent have already been privatized and have foreign partners (e.g. Hotel Uzbekistan, Uzbekitourism and a Malaysian company, Cristal Mist Sdn Berhard.) Uzbektourism is keen to promote joint ventures as the form of ownership, or privatization via tender, with local raw materials available for reconstruction.
Tour Agencies
The tour agency business is largely represented by Uzintour, a joint stock company since early 1995, a member of PATA and a close cooperator with Uzbekitourism as its key investor. It has contracts with firms from Japan, Germany, the UAE, Holland, Israel, the UK and others.
Private tour agencies are growing, but from a difficult position given the existing large domestic organizations. Contracts between the two parts exist and private businesses look for cooperation with foreign companies. Financing is poor and adequate staffing problematic. Nevertheless, specialized trips to mountain locations and other sporting events exist and the potential for growth here is significant.
Other Facilities Required.
Hotels and tour agencies form a key part of the government's drive to promote tourism. However, other tourism infrastructure areas such as camp sites, villages, rest stations, sporting equipment sale/hire, and food and beverage products are all necessary. The opportunities for these will become clearer as tourist numbers increase and demand for specific services emerges as a result of particular marketing strategies encouraged by the government and the major tourist players. These strategies are critical: Uzbekistan's location and continued low-profile in many tourist-exporting countries may well have a self-filtering effect on the type and numbers of visitors to the country for the medium term.
