06.07.2020-12.07.2020 • No: 267

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IMPACT OF COVID-19 ON UZBEKISTAN’S TOURISM INDUSTRY

The novel coronavirus outbreak affects a significant reduction in comparison period. For example, during June 1-De- almost every area of life in many parts of with 1.38 million in the first quarter of cember 31, 2020, a 50% discount will be the world. With the arrival of summer, the 2019. Looking at the countries where applied to tax payments of tour operators, tourism industry was expected to revive. tourists come from, we see that the major- travel agencies, hotels, and hostels. On However, this tourist season is far from ity of them, or 95.6%, come from the the other hand, it was announced that tour the previous years’ activity due to the Commonwealth of Independent States operators would receive a grant of $982, pandemic. Because of the highly conta- (CIS) countries. Among the CIS coun- while new tourism projects would be pro- gious virus, businesses in tourism, like in tries, Kazakhstan ranks first with 397,600 vided with the financial support of around other sectors, try to gain the trust of tour- tourists, followed by Tajikistan with $14,000. The Central Bank and the State ists by implementing several measures. 332,700 visitors, and Kyrgyzstan with Tax Committee approved the extension of As leaders of many countries of the 298,100 travelers to Uzbekistan. the loan repayment period in the field of world, President of Uzbekistan Shavkat According to the State Committee for tourism to 24 months. Moreover, addi- Mirziyoyev pays special attention to the Tourism Development, the overall num- tional benefits will be provided in cus- country’s tourism industry. Accordingly, ber of tourists that visited Uzbekistan in toms procedures of products imported by Uzbek authorities make efforts to protect 2018 amounted to 5.34 million, while in the tourism industry such as spare parts businesses in the sector from the eco- 2019, it grew by 35% to 6.74 million. This and disinfectants for hotels. nomic impact of the outbreak as much as increase was also reflected in tourism rev- In addition to the tourism industry, the possible. Due to its historical monuments enues, allowing them to increase from pandemic has also adversely affected the and cultural legacy Uzbekistan is among $1.04 billion in 2018 to $1.34 billion in transportation and aviation fields. There- the most popular foreign tourist destina- 2019. It is clear, however, that revenues fore, it is planned to resume the Open tions. Similar to other countries, the Uz- of the country’s tourism industry will sub- Skies regime, which was previously on bek government started to take strict stantially decrease this year. There is also the agenda in October 2019. The regime measures after the first COVID-19 cases a decrease in the number of people travel- will be reintroduced on August 1, 2020, had been detected in Uzbekistan on ing abroad from Uzbekistan due to quar- for two years. The first charter flight from March 15, 2020. The suspension of air, antine measures worldwide. In the first Istanbul to the historical city of Bukhara rail, and road services and the quarantine three months of 2020, the number of Uz- within the Open Skies regime was made regime are among the key measures. bek citizens visiting foreign countries in November 2019. Under this regime, Within the general economic structure, amounted to 1.4 million people, which is foreign airlines can perform international these measures mostly affect the service a 16.7% drop compared to 2019. This passenger and cargo flights to the desig- sector and especially the tourism industry. general trend is also a phenomenon af- nated Uzbek airports in Nukus, Termez, When comparing the data of the State fecting the Uzbek tourism industry. Bukhara, Navoiy, Urgench, Andijan, Fer- Committee for Tourism Development of On May 28, 2020, President Mirziyoyev gana, Namangan, and Samarkand. Thus, Uzbekistan for the first quarters of 2018- signed a decree on urgent measures to Uzbekistan tries to overcome the chal- 2020, we can observe a continuous up- support the tourism sector to reduce the lenges experienced in the tourism, avia- ward trend. Thus, in January 2018, the negative impact of the coronavirus pan- tion, and transportation sectors by facili- number of tourists who visited the coun- demic. According to this decree, the tour- tating passenger travel and cargo trans- try amounted to 266,100. This figure ism industry in the country is planned to portation, via both transit and direct grew by 64.3% to 437,200 in 2019, and resume in three stages. In the first stage, flights. In addition, it is planned to make then to 538,300 in 2020, which represents obstacles to the movement of Uzbek citi- domestic airline transport more attractive a 23.1% increase. The number of tourists zens within the country will be removed by reducing transportation costs to vari- that amounted to 265,000 in February to revive domestic tourism. In the second 2018 rose by 48.5% to 393,500 in the stage, it is envisaged to accept citizens of ous parts of the country. same month of 2019. Then it reached the CIS member countries, and in the In summary, as seen from its decisions, 440,200 with an 11.9% increase in Febru- third stage – nationals of third countries. the government of Uzbekistan focuses on ary 2020. When reviewing the figures for In this context, tourism facilities in Uz- addressing economic and transportation March, we can witness the consequence bekistan carry out preparation works un- problems in the tourism industry and con- of the coronavirus pandemic as the num- der the necessary hygiene and health rules vincing tourists that strict measures are ber of tourists, which grew from 441,100 within the scope of the project “Uzbeki- taken on health and hygiene matters. In in 2018 to 549,400 with a 24.6% increase stan. Safe travel guaranteed”. The eco- the coming period, it will become clear if in 2019, fell to 221,000 in March 2020. nomic support measures provided by the the support measures taken by Uzbeki- As a result, the number of tourists visiting Uzbek government to the tourism indus- stan, which has the best-known tourism the country in the first three months of try includes tax reductions, grant support, centers in Central Asia, have positive ef- 2020 only reached 1.12 million, which is and the extension of the loan repayment fects on its domestic tourism industry.

Written by Erkinbek Turgunov, Eurasian Research Institute, Kazakhstan

Politics, Foreign Affairs, and Security Economy, Finance, and Energy Society and Culture  SCO Secretary-General Vladimir Norov  The Council of the Eurasian Economic  The Health Scientific Group of the Turkic attended the opening of the Virtual Coun- Commission (EEC) held a meeting via Council held its first videoconference ter-Terrorism Week organized at the UN videoconference to discuss urgent issues meeting to follow up on the decisions of as part of the webinar “Post COVID-19 of the Eurasian Economic Union (EAEU). the council’s Health Coordination Com- World: Contours, Pivot Points and Bene- In particular, the council ordered to create mittee. High-ranking health officials and fits of Multilateral Collaboration”. In his a committee for settling disputes related to practitioners of the Turkic Council mem- speech, Norov stated that the current so- moving goods in the EAEU. It also or- ber and observer states discussed coopera- cio-economic crisis, combined with con- dered to send a draft agreement on simpli- tion opportunities in developing new tactless communication technologies, fying the existing system of transit of methods for the prevention, diagnosis and forms fertile soil for the spread of destruc- goods for review by the member states. In treatment of COVID-19. The Turkish tive ideas among young people. He also addition, amendments were made to the Ministry of Health agreed to provide epi- noted that sleeping terrorist cells can take EAEU’s regulations on safety of milk and demiological training to medical workers advantage of the political and economic dairy products and phytosanitary control from other member states (Turkic Council, chaos caused by the pandemic (SCO, procedures (EEC, 10.07.2020). 08.07.2020). 07.07.2020).  According to Kazakhstan’s Ministry of  The Turkish Language Association for-  The 15th meeting of the Council of Heads Agriculture, in 2019, the country’s agri- merly known as Turkish Linguistic Soci- of Financial Intelligence Units of the CIS cultural sector attracted $1.1 billion of in- ety, founded at the initiative of Ataturk on member states was held via video confer- July 12, 1932, held an online meeting ded- vestments, which was a 41% increase th ence. The parties discussed the council’s compared to 2018. In Kazakhstan, about icated to its 88 anniversary. The event work in assessing risks and threats in the 20% of the workforce is employed in agri- was attended by Turkish officials and field of preventing money laundering and culture, and 80% of the land area is suita- scholars, representatives of the Yunus terrorist financing, including through the ble for agricultural purposes. The COVID- Emre Institute, TURKSOY and implementation of the international opera- 19 pandemic revealed the importance of TWESCO, as well as prominent tion “Barrier”. They also addressed the or- food security, and, taking into account the Turkologists from Turkic speaking coun- ganization of an information exchange tries. Participants were introduced to the increase in foreign demand for domestic work done by the Turkish Language Asso- system between their agencies and the agricultural products, the crop area was in- monitoring of criminogenic behavior in ciation and its future plans (TWESCO, creased to 22.5 million hectares (The 12.07.2020). the cryptocurrency market (CIS Executive Astana Times, 10.07.2020). Committee, 08.07.2020).  The Council of Muslim Religious Com-  The World Bank will provide a $500 mil- munities of Lithuania held an event “Bow  OSCE Project Coordinator in Uzbekistan lion loan to Uzbekistan for the implemen- John MacGregor hosted two online and Arrow of the Golden Horde” in the tation of an agricultural modernization Lithuanian city of Trakai. The event was roundtable discussions that focused on project. Agriculture is an important sector rule of law and foreign policy. Both fields organized with support of the Turkish Co- of the Uzbek economy as it employs 27% operation and Coordination Agency are among the main priority areas of the of the working-age population (3.6 million country’s state program for 2020, which is (TIKA) as part of the project to back cul- people), contributes 28% of the GDP and tural activities of ethnic Crimean Tatars part of the 2017-2021 national action strat- accounts for 10% of the country’s exports. egy. Participants of the first event dis- who reside in Lithuania for centuries. This The project is expected is improve access year, TIKA will also organize the seventh cussed policy reforms concerning the judi- of Uzbek farmers to modern technologies, ciary and areas that need further improve- summer school for Lithuanian Crimean technical consultations, support services Tatars (Haberler.com, 10.07.2020). ment. The second event addressed the im- for various stages of production, agrology, plementation of a balanced, mutually ben-  The Ministry of Higher and Secondary phytosanitary, and sales (UzDaily, Specialized Education of Uzbekistan, the eficial and constructive foreign policy by 12.07.2020). Uzbekistan (OSCE, 10.07.2020). Delegation of the European Union (EU) to  The heads of the government transport  The State Security Service and the Minis- Uzbekistan and the United Nations Devel- agencies of Turkmenistan and Turkey held opment Program (UNDP) launched a try of Internal Affairs of Uzbekistan de- negotiations via videoconference to dis- tained 38 young people on charges of in- cross-border initiative aimed at supporting cuss ways of developing bilateral cooper- the economic rights of young Afghan volvement in terrorist and extremist organ- ation in the transport sector, in particular, women. The project envisages providing izations. 15 members of an underground the effective use of transport corridors and them with educational grants to study in group of the extremist movement “Ji- air routes. The parties also focused on the Uzbekistan and Kazakhstan. The EU pro- hadists” were apprehended in the Boysun role of logistics companies in the develop- vided a grant of €2 million for this initia- district of the Surkhandarya region. In the ment of cargo transportation and the im- tive, which will be implemented by the city of Jizzakh and the Sharof Rashidov UNDP until 2025 (UNDP, 10.07.2020). district of the Jizzakh region, authorities plementation of the Lapis Lazuli interna- arrested 23 members of another radical tional transit route (MFA of Turkmeni-  Tajikistan’s Ministry of Labor held an group (Uzbekistan 24, 08.07.2020). stan, 08.07.2020). online meeting with the Russian Ministry of Internal Affairs to discuss the current  The Russian Federal Security Service  According to the Ministry of Energy and Water Resources of Tajikistan, the mod- situation of Tajik labor migrants in Russia. (FSB) detained recruiters of the interna- The Tajik side called on the Russian au- tional terrorist organization “Katiba al- ernization of one of the generating units of the Nurek hydropower plant will be com- thorities to support Tajik citizens during Tawhid wal-Jihad” in the city of Kalinin- this difficult period related to the COVID- grad. According to the FSB, four nationals pleted by December 2020, as part of the first phase of the plant’s reconstruction, 19 pandemic. According to the Russian of unnamed Central Asian countries re- side, under the current epidemiological sit- cruited labor migrants from Central Asia which began in March 2019. The project is implemented by the Austria-based interna- uation, Russia provides a number of bene- for a subsequent transfer to combat zones. fits for foreign citizens staying in the coun- During the searches, the FSB discovered tional technology group Andritz. After its modernization, the capacity of the plant is try. In particular, residence and work per- extremist literature, flags and attributes of mits of Tajik nationals were extended until the terrorist organization (TASS, expected to increase by 10% and reach September 15, 2020 (Sputnik, 08.07.2020). 3,300 MW (Avesta, 10.07.2020). 08.07.2020).  According to the Ministry of Defense of  The supervisory board of the Belarus Hi-  The UN World Food Program and Tajiki- Azerbaijan, the Armenian armed forces Tech Park registered 71 companies as its stan’s Committee for Environmental Pro- committed a provocation on the Azerbai- new residents. Apart from Belarus, these tection signed an agreement to launch a jani-Armenian state border in the Tovuz companies, specializing in healthcare, lo- climate change adaptation project, which district. The Armenian side reportedly vi- gistics, financial technologies, digital will be funded by the Green Climate Fund. olated the ceasefire and attacked positions commerce, consulting, gaming, and soft- Over the next four years, nearly 115,000 of the Azerbaijani army using artillery ware development for agribusiness, repre- vulnerable people in rural Tajik communi- mounts. The ministry stated that there sent Germany, Israel, Switzerland, the ties will receive climate information and were losses on both sides and that the Ar- United Kingdom, and the United States. weather alerts and learn how to improve menian units had been defeated and driven At present, the park is home to 886 com- their food security through sustainable use back (Ministry of Defense of Azerbaijan, panies that employ about 63,000 people of land and natural resources (Asia-Plus, 12.07.2020). (BelTA, 10.07.2020). 08.07.2020).

Prepared by Dauren Aben and Kanat Makhanov