Turkmenistan 2018

Total Page:16

File Type:pdf, Size:1020Kb

Turkmenistan 2018 Turkmenistan 2018 1 Table of Contents Doing Business in Turkmenistan _________________________________________ 5 Market Overview _____________________________________________________________ 5 Market Challenges ___________________________________________________________ 6 Market Opportunities _________________________________________________________ 7 Market Entry Strategy _________________________________________________________ 7 Political Environment _________________________________________________________ 8 Selling US Products & Services __________________________________________ 8 Using an Agent to Sell US Products and Services _________________________________ 8 Establishing an Office ________________________________________________________ 8 Requirements for Establishing a Representative Office: ____________________________ 8 Requirements for Establishing a Branch: ________________________________________ 9 Requirements for Establishing a Joint Venture: ___________________________________ 9 Turkmenistan joint venture participants also must submit: _________________________ 10 Franchising ________________________________________________________________ 10 Direct Marketing ____________________________________________________________ 10 Joint Ventures/Licensing _____________________________________________________ 10 Selling to the Government ____________________________________________________ 11 Distribution & Sales Channels _________________________________________________ 12 Express Delivery ____________________________________________________________ 12 Selling Factors & Techniques _________________________________________________ 12 eCommerce ________________________________________________________________ 12 Trade Promotion & Advertising ________________________________________________ 13 Pricing ____________________________________________________________________ 13 Sales Service/Customer Support ______________________________________________ 13 Protecting Intellectual Property ________________________________________________ 13 Due Diligence ______________________________________________________________ 13 Local Professional Services __________________________________________________ 14 Principal Business Associations ______________________________________________ 15 Limitations on Selling US Products and Services _________________________________ 15 Web Resources _____________________________________________________________ 15 Leading Sectors for US Exports & Investments ____________________________ 16 Oil and Gas ________________________________________________________________ 16 Oil and Natural Gas Refining __________________________________________________ 17 2 Chemical Industry ___________________________________________________________ 18 Transportation______________________________________________________________ 19 Customs, Regulations & Standards ______________________________________ 21 Trade Barriers ______________________________________________________________ 21 Import Tariff ________________________________________________________________ 21 Import Requirements & Documentation _________________________________________ 22 Labeling/Marking Requirements _______________________________________________ 23 U.S. Export Controls _________________________________________________________ 23 Temporary Entry ____________________________________________________________ 23 Prohibited & Restricted Imports _______________________________________________ 23 Customs Regulations ________________________________________________________ 24 Standards for Trade _________________________________________________________ 25 Trade Agreements __________________________________________________________ 26 Licensing Requirements for Professional Services _______________________________ 26 Web Resources _____________________________________________________________ 26 Investment Climate Statement __________________________________________ 27 Executive Summary _________________________________________________________ 27 Openness to and Restrictions upon Foreign Investment ___________________________ 29 Policies Toward Foreign Direct Investment ______________________________________ 29 Bilateral Investment Agreements and Taxation Treaties ___________________________ 33 Legal Regime ______________________________________________________________ 34 Protection of Property Rights _________________________________________________ 40 Financial Sector ____________________________________________________________ 43 State-Owned Enterprises _____________________________________________________ 45 Responsible Business Conduct _______________________________________________ 47 Corruption _________________________________________________________________ 47 Political and Security Environment _____________________________________________ 48 Labor Policies and Practices __________________________________________________ 48 OPIC and Other Investment Insurance Programs _________________________________ 49 Foreign Direct Investment and Foreign Portfolio Investment Statistics _______________ 49 Contact for More Information on the Investment Climate Statement _________________ 50 Trade & Project Financing _____________________________________________ 52 Methods of Payment _________________________________________________________ 52 Banking Systems ___________________________________________________________ 52 Foreign Exchange Controls ___________________________________________________ 52 3 US Banks & Local Correspondent Banks ________________________________________ 52 Project Financing ___________________________________________________________ 52 Multilateral Development Banks: ______________________________________________ 52 Financing Web Resources ____________________________________________________ 53 Business Travel ______________________________________________________ 54 Business Customs __________________________________________________________ 54 Travel Advisory _____________________________________________________________ 54 Visa Requirements __________________________________________________________ 55 Currency __________________________________________________________________ 56 Telecommunications/Electronics ______________________________________________ 56 Transportation______________________________________________________________ 56 Language __________________________________________________________________ 57 Health _____________________________________________________________________ 57 Local Time, Business Hours and Holidays_______________________________________ 59 Temporary Entry of Materials or Personal Belongings _____________________________ 59 Travel Related Web Resources ________________________________________________ 59 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2018. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. 4 Doing Business in Turkmenistan Market Overview Turkmenistan is a physically large country (slightly larger than the state of California) but sparsely inhabited (about 5 million people). It gained independence in 1991 after the breakup of the Soviet Union. Although Turkmenistan’s vast natural gas and its oil resources continue to attract some foreign companies, the Government of Turkmenistan has yet to implement reforms needed to create an inviting business climate where foreign investment and foreign investors are truly welcomed and property rights guaranteed. In addition, the government is centralized and non-transparent, with much information that is readily available in most other countries classified as a “state secret.” Turkmenistan publishes limited national statistics, but its data collection and evaluation methodologies have not been verified by independent third parties and are often not credible. According to the 2017 Statistical Yearbook of Turkmenistan, the country’s 2016 Gross Domestic Product (GDP) was USD 36.18 billion (TMT126.6 billion) while 2015 GDP was USD 35.9 billion (TMT 125 billion), with official GDP figures as yet unavailable for 2017. The conversion from manat was done at the official rate of TMT3.5/USD. The government reported a GDP growth of 6.5 percent in 2017. These GDP figures and growth rate are implausible. Turkmenistan continues to be a major producer of natural gas and, according to the Statistical Yearbook of Turkmenistan, in 2016 produced an estimated 69.4 billion cubic meters. In 2015, Russia bought 4 bcm from Turkmenistan but ceased to import refined natural gas from Turkmenistan in January 2016. Turkmenistan stopped exporting gas to Iran on January 1, 2017. Other key sectors include oil and petroleum products, plastics and textiles. According to Turkmenistan’s State Statistics Committee, Turkmenistan’s exports rose from USD 7.5 billion in 2016 to USD 7.8 billion in 2017 while the country’s imports fell from approximately USD 13 billion in 2016 to USD 10 billion. The trade deficit was USD 2.4 billion. Turkmenistan’s largest importer is Turkey, with consumer goods, food, and construction materials. China is Turkmenistan’s largest export market. According to the U.S. Department of Commerce, in 2017 U.S. exports to Turkmenistan totaled USD 282 million while U.S. imports from Turkmenistan were USD 13.8 million. The highest valued U.S. export caterogy was civilian aircraft and spare parts, with industrial engines the second largest category. The U.S.’s largest import from Turkmenistan was cotton cloth and fabrics. Food
Recommended publications
  • Turkmenistan Oil and Gas
    Pre-Caspian Pipe- Central Turkmenistan Oil and Gas Map line (active) Turkmenistan Oil and Gas Map Asia-Center Pre-Caspian Pipe- Kazakhstan Gas Pipeline line (planned) Legend (to Russia) National Capital Uzbekistan Velayat Capital Population Center Sarygamysh Koli Dashovuz International Boundary Block Velayat Border 1 Garabogaz River or Canal 7 2 Oil/ Gas Pipeline 8 Transcaspian 3 Kara-Bogaz-Gol Pipeline Under Construction 9 Bay Gas Pipeline 4 DASHOVUZ Proposed Pipeline 10 VELAYAT 5 Oil/Gas Field 11 6 Gyzylgaya Protected Area 12 LEBAP Port Ufra BALKAN VELAYAT Turkmenbashi Belek VELAYAT Refinery 13 14 Cheleken Balkanabat Belek-Balkanabat- c 2011 CRUDE ACCOUNTABILITY 15 Serdar Pipeline 16 Aladzha Turkmenistan-China 24 Yerbent 17 Gas Pipeline 25 Gumdag 18 Serdar Turkmenabat 26 AHAL 19 East - West Karakum Canal VELAYAT 27 20 Ogurchinsky Pipeline Amu Darya River Island 28 29 21 22 Okarem Ashgabat 30 23 Magdanli Kerki 31 Mary Esenguly Bayramaly Caspian Tejen Sea Korpeje-Kordkuy Pipeline Iran South Yolotan- Osman Field Saragt This map is a representation of Turkmenistan’s major oil and gas fields and transport infrastructure, including ports and Dovletabat MARY Afghanistan pipeline routes, as of February 2011. As the world turns its attention to Turkmenistan’s vast petroleum reserves, more Field VELAYAT precise details about the fields are sure to become known, and—over time—it will become clear which of the proposed and hotly debated pipelines comes into existence. For now, this map demonstrates where the largest reserves are Dovletabat - located, and their relationship to population centers, environmentally protected areas, key geographical features (the Sarakhs - Caspian Sea, the Kopet Dag Mountain Range, and the Karakum Desert) and neighboring countries.
    [Show full text]
  • Transport and Communications
    Chapter 14 TRANSPORT AND COMMUNICATIONS A well functioning Transport and communication I. TRANSPORT system is a critical pre-requisite for a country’s i. Road Transport development. Investment in the infrastructure directly affects economic growth through many Road transport is the backbone of Pakistan’s changes such as allowing producers to find the transport system, accounting for 90 percent of best markets for their goods, reducing national passenger traffic and 96 percent of freight transportation time and cost and generating movement. Over the past ten years, road traffic – employment opportunity. In addition, efficient both passenger and freight – has grown much transport and communication systems also have faster than the country’s economic growth. The network effects and allow adoption of latest 10,849 km long National Highway and Motorway production techniques such as just-in time network contributes 4.2 percent of the total road manufacturing. network. They carry 90 percent of Pakistan’s total traffic. Infrastructure development has been a priority area for Pakistan as evidenced by a number of Pakistan, with about 156 million people, has a projects completed or in progress. Major reasonably developed transport system. However, infrastructure projects completed during the last when compared with other developed and seven years include: Islamabad-Lahore Motorway developing countries, the road density of Pakistan (M-2), Makran Costal Highway, Nauttal-Sibi is low. This fact is documented in Fig-14.1. A section including Sibi Bypass, Dera Allah Yar- commonly used indicator for development of the Nauttal Section, Khajuri-Bewata Section N-70, road system is road density (total length of road / Kohat Tunnel and Access Roads, Mansehar-Naran total area), which is often used as an index of Section, Karachi Northern Bypass, Qazi Ahmed & prosperity, economic activity and development.
    [Show full text]
  • Information Note
    17/11/2016 United Nations Nations Unies Global Sustainable Transport Conference 2016 Information Note I. Introduction 1. Further to General Assembly resolution 70/197 of 22 December 2015, the Secretary-General will convene a Global Sustainable Transport Conference from 26 – 27 November 2016 in Ashgabat, Turkmenistan. The Conference will be held at the highest level and will bring together key stakeholders from Governments, United Nations system and other international organizations, the private sector, and civil society to engage in dialogue that emphasizes the integrated and cross- cutting nature of sustainable transport. All modes of transport—road, rail, aviation and maritime— will be addressed as well as transport both in urban and rural areas, energy and transport, public transport, countries in special situations, road safety, and financing for sustainable transport, while looking at the same time how to find a new paradigm for transport sustainability. 2. The present note outlines the organizational aspects of the Global Sustainable Transport Conference. Information on substantive matters related to the Conference can be found on the conference website: https://sustainabledevelopment.un.org/Global-Sustainable-Transport- Conference-2016 II. Date, venue and programme 3. The Conference will take place at the Complex of the International Forums and Congresses in Ashgabat, Turkmenistan, on Saturday, 26 November and Sunday, 27 November 2016, from 10 a.m. to 6 p.m. on both days. The Complex is comprised of the Chamber of Commerce and Industry Building (address: 143 Chandybil Avenue, Ashgabat, Turkmenistan, 744000), where the main meetings will be held, and the Concert Hall building (address: 144 Archabil Avenue, Ashgabat, Turkmenistan, 744000), where the United Nations Accreditation Centre is located.
    [Show full text]
  • THE LOST INDUSTRY: the TURKMEN MARINE FISHERY the Report
    THE LOST INDUSTRY: THE TURKMEN MARINE FISHERY The report DEMOCRATIC CIVIL UNION OF TURKMENISTAN With the support of The National Endowment for Democracy (NED), USA 2015 [email protected] THE LOST INDUSTRY: THE TURKMEN MARINE FISHERY Contents HISTORICAL BACKGROUND ................................................................................................................. 2 MARINE FISHERY IN THE SOVIET ERA ................................................................................................. 4 MARINE FISHERY OF TURKMENISTAN IN THE POST-SOVIET PERIOD ................................................. 7 ORGANIZATIONAL AND TECHNICAL CAUSES OF THE DEGRADATION OF THE MARINE FISHERY ..... 12 NATURAL AND ANTHROPOGENIC PROBLEMS OF THE CASPIAN SEA ............................................... 19 PROSPECTS OF MARINE FISHERY IN TURKMENISTAN ...................................................................... 20 1 THE LOST INDUSTRY: THE TURKMEN MARINE FISHERY THE LOST INDUSTRY: the Turkmen marine fishery HISTORICAL BACKGROUND Turkmens living in the South-Eastern shore of the Caspian sea – in the current cities Turkmenbashi, Khazar, Garabogaz 1and etraps Turkmenbashi and Esenguly2 – consider themselves the indigenous inhabitants of these places who settled in seaside thousands of years ago. According to the main occupation of their ancestors they call themselves hereditary fishermen and are proud of their fishing origins, especially in the coastal towns. It is confirmed by their way of life, daily graft, houses, cuisine, crafts,
    [Show full text]
  • Accomodation & Travel Services Manual
    Oil & Gas Conference – Ashgabat ACCOMODATION & TRAVEL SERVICES MANUAL XXV INTERNATIONAL CONFERENCE “OIL AND GAS OF TURKMENISTAN” 28-29 October, 2020 Ashgabat, Turkmenistan ORGANIZERS CO-ORGANIZER For futher information please contact Turkmen Forum: Tel.: +(993 12) 92-35-52 / 92-03-99 Mob: +(993 62) 11-00-69 E-mail: [email protected] Website: www.turkmen-forum.com www.ogt-turkmenistan.com Oil & Gas Conference – Ashgabat DEAR PARTICIPANT Welcome to the 25th International Conference "Oil and Gas of Turkmenistan 2020"! This Travel Guide includes all necessary information to make your visit to Turkmenistan smooth and enjoyable. PAGE DETAILS Important visa information 3 Hotels in Ashgabat 4-9 Travel tours 10-13 Once you are in Turkmenistan 14 2 Oil & Gas Conference – Ashgabat IMPORTANT VISA INFORMATION Before travelling to Turkmenistan, all visitors must obtain a visa. The process of getting visa consists of two steps : First you have to obtain a Letter of Invitation (LOI) which may take up to 7-10 working days, and then you need to get a visa stamped in your passport. Please note, that you will not be able to obtain a visa without a valid LOI. As soon as we receive your completed application and documents, we will submit them to the State Concern “Turkmengas” so they can start processing your documents and forward them to the State Migration Service of Turkmenistan. Once your application is approved, you will be issued with an LOI and we will email you your LOI and outline further steps. APPLYING FOR LETTER OF INVITATION The Organizing Committee is providing LOI support for all registered Conference participants.
    [Show full text]
  • Itinerary Outline
    TURKMENISTAN MAY TOUR TOUR May 14 th – 21 st 2022 7 nights OVERVIEW Join experts in Turkmenistan travel, Koryo Tours, on this epic journey to Central Asia's most enigmatic and least-visited country; Turkmenistan. We will see history unfold as we travel from ruined ancient cities to gleaming modern marble-clad towers. From flaming pits deep in the desert to deep subterranean pools of health-infusing water. We will make sure to visit the main sites during our time in Turkmenistan such as Ashgabat and the Darvaza Gas Crater (Gates of Hell) and take you off the beaten path to experience and understand Turkmenistan. Meet local people, learn about their lives and history, their differences and commonalities. We look forward to sharing it with you in Turkmenistan! This tour will be led by our general manager and travel specialist Simon Cockerell, who first travelled to Turkmenistan in 2004 — on the very first flight from Beijing! He has been to the country over 25 times since. Over the years, he has made close friends there, explored widely, and maintained a deep fascination since first visiting 15 years ago. You can rest assured that you will be in safe hands during your Turkmenistan tour and that you will get the most out of your trip into this unexplored land! HIGHLIGHTS • Ashgabat - All the highlights and local colour • Darvaza Gas Crater – the 'Mouth of Hell' • Kow-Ata Underground Lake – Natural Hot Spring, 80m below the ground • Nisa Fortress – UNESCO-listed archaeological site • The Ancient ruins on Konye-Urgench Please note that the itinerary may differ slightly to what is below, but your tour leader will do their best to ensure that as much is covered as possible and add in extras when there is time such as a visit to a local bar or a funfair.
    [Show full text]
  • 3. Analysis of Collected Basic Data of Turkmenbashi Port and Review of Port Development Projects
    JICA Study on the Turkmenistan March 2010 3. Analysis of Collected Basic Data of Turkmenbashi Port and Review of Port Development Projects 3.1 Outline of Long Term Port Development Plans In this section port development plans proposed by following studies and TMRL’s revision of these plans are summarized. (1) Feasibility Study and Basic Data Survey on the Modernization Project of Turkmenbashi International Seaport, MTLM Korea, 2009 (hereinafter referred as “Modernization Study”) (2) TRACECA Navigation Channel for Turkmenbashi Port, EU/TACIS, 2007 (hereinafter referred as “Channel Study”) 3.1.1 Modernization Study The study was carried out by the consortium headed by Hyein Engineering and Construction (Korea) based on the MOU concluded between the Government of Turkmenistan and Government of Korea. The study was funded by the Ministry of Land Transport and Maritime Affairs of Korea. The final report was submitted to TMRL in July 2009. The objective of the study was to conduct a feasibility study for the modernization project of Turkmenbashi Port, which includes the construction of a cargo terminal, passenger terminal and shipyard, by analyzing and reviewing the basic data such as soil, bathymetry, wave climate, coastal topography. The study included analysis of socio-economic circumstances and review of environmental conditions. The basic port development policies proposed by the Modernization Study are; Creation of international logistics hub, Creation of high efficiency port, Construction of multifunctional port, Improvement of the quality of waterfront and Promotion of ship building industry. In the Modernization Study, cargo traffic forecast was not carried out, and instead, growth scenarios of cargo volume were developed.
    [Show full text]
  • Figure 2.1.20 Bird's-Eye View of Turkmenbashi Port
    JICA Study on the Turkmenistan March 2010 Source TMRL Figure 2.1.20 Bird’s-eye View of Turkmenbashi Port 2 - 75 JICA Study on the Turkmenistan March 2010 Source: Google Figure 2.1.21 Location of the Port ii) Natural conditions It is reported that fog is not frequent and mostly of short duration. In general, currents are limited in the bay (inside the spit) and they do not hamper the navigation of vessels in the channel. It should be noted that these currents do not refer to the channel cut through the Turkmenbashi spit. In the area of the cut through the Turkmenbashi spit, currents run parallel to the axis of the channel and can reach values up to 1 – 2.5 knots. The following tables present the distribution of the wind and wave in Turkmenbashi per sector and per speed class. Although the wind in Turkmenbashi is not so strong, the access channel of the port is closed very frequently due to wind because the width and depth of the channel are not 2 - 76 JICA Study on the Turkmenistan March 2010 sufficient under windy condition. Regarding channel closure, details will be described later in this section. The feasibility study on the modernization of Turkmenbashi Port (MLTM 2009) describes that the maximum wave height in the Caspian Sea outside the spit is 2.6m and wave height may reach 2.0m in the cut through section of the channel. The annual maximum wave height in the area of the port is 0.5m on average and at maximum 0.7m.
    [Show full text]
  • Central Asia's Oil and Gas Reserves
    JANUARY 23-25, 2010 THUN, SWITZERLAND EURASIA EMERGING MARKETS FORUM Central Asia’s Oil and Gas The Emerging Markets Forum was created by the Centennial Group as a not-for-prot Reserves: initiative to bring together high-level government and corporate leaders from around the To Whom Do world to engage in dialogue on the key economic, nancial and social issues facing They Matter? emerging market countries. Martha Brill Olcott The Forum is focused on some 70 emerging market economies in East and South Asia, Eurasia, Latin America and Africa that share prospects of superior economic performance, already have or seek to create a conducive business environment and are of near-term interest to private investors, both domestic and international. Our current list of EMCs is shown on the back cover. We expect this list to eveolve over time, as countries’ policies and prospects change. Further details on the Forum and its meetings may be seen on our website at http://www.emergingmarketsforum.org Emerging The Watergate Oce Building, 2600 Virginia Avenue, NW, Suite 201 Markets Forum Washington, DC 20037, USA. Tel:(1) 202 393 6663 Fax: (1) 202 393 6556 A nonprofit initiative of the Centennial Group Email: [email protected] Bringing people together to accelerate growth and well-being in emerging markets Central Asia’s Oil and Gas Reserves: To Whom Do They Matter? Martha Brill Olcott¹ Summary Iolathan-Osman gas field, a field confirmed as one of the world’s top five deposits in an independent audit It seems like anytime one opens the business section by Gaffney, Cline and Associates.
    [Show full text]
  • 49370-002: National Power Grid Strengthening Project
    Initial Environmental Examination Final Report Project No.: 49370-002 October 2020 Turkmenistan: National Power Grid Strengthening Project Volume 4 Prepared by the Ministry of Energy, Government of Turkmenistan for the Asian Development Bank. The Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. 49370-002: TKM TKM Power Sector Development Project 81. Out of these IBAs, eight IBAs are located close to phase I Transmission line alignments. Four IBAs are located close to proposed Gurtly (Ashgabat) to Balkanabat Transmission line. And four falls close to existing Sardar (West) to Dashoguz Transmission line. No IBA falls close to Dashoguz-Balkan Transmission line. The view of these IBAs with respect to transmission alignment of phase I are shown at Figure 4.17. 82. There are 8 IBAs along phase II alignment. Two IBAs, i.e. Lotfatabad & Darregaz and IBA Mergen is located at approx 6.0 km &approx 9.10 km from alignment respectively. The view of these IBAs with respect to transmission alignment of phase II is shown at Figure 4.18. : Presence of Important Bird Areas close to Proposed/existing
    [Show full text]
  • Asendia USA COVID-19 Update September 25 2020.Xlsx
    Status Key On Schedule Expect Delays Service Suspended Inbound Transportation to Asendia USA Facilities: Facility Transportation Status Date Updated Daily Updates/Comments New York - Hauppauge On Schedule 9/25/2020 Pennsylvania - Folcroft On Schedule 9/25/2020 Florida - Miami On Schedule 9/25/2020 Illinois - Elk Grove Village On Schedule 9/25/2020 California - Bell On Schedule 9/25/2020 California - Hayward On Schedule 9/25/2020 Operational Processing @ Asendia USA Facilities: Facility Processing Status Date Updated Daily Updates/Comments New York - Hauppauge On Schedule 9/25/2020 Pennsylvania - Folcroft On Schedule 9/25/2020 Florida - Miami On Schedule 9/25/2020 Illinois - Elk Grove Village On Schedule 9/25/2020 California - Bell On Schedule 9/25/2020 California - Hayward On Schedule 9/25/2020 USPS International Service Centers: Facility Processing Status Date Updated Daily Updates/Comments The USPS reported that the ISCs are in good condition and delayed volumes are down to one-quarter of what they had been. JFK has about 27,000 on hand and most of that is letter volume. In addition to air lift, the USPS was using surface for parcels destined to Austria, Denmark, Hungary, Poland, Sweden, Czech Republic, Finland, Netherlands, Spain, and Switzerland. Volume is from the JFK, MIA and ORD ISC's. The USPS has no additional surface trips planned but will use as needed. Ocean JFK-RTM since August: ISC New York (JFK) Expect Delays 9/25/2020 - Shipment (9) 7/21 - Arrived 8/11 – containers picked up by Post NL - Shipment (10) 8/4 - Departed 8/5 arrived 8/26 – 1 container - Shipment (11) 8/18 - Departed 8/18 scheduled arrival 9/8 – 2 containers Australia and NZ - USPS reporting delays with air lift from all ISC's.
    [Show full text]
  • Silk Road Air Pass: a CAREC Proposal
    Silk Road Air Pass: A CAREC proposal Revised Draft, 1 August 2020 This proposal/study was prepared for ADB by Brendan Sobie, Senior Aviation Specialist and Consultant for CAREC Table of Contents: Concept Introduction ……………………………………………………………. Page 2 Summary of Opportunities and Challenges …………………………… Page 3 Historic Examples of Air Passes and Lessons Learned ……………. Page 4 Silk Road Air Pass: The Objective …………………………………………… Page 9 Silk Road Air Pass: Regional International Flights …….…………… Page 11 Silk Road Air Pass: Domestic Flights ………………….…………………. Page 14 Silk Road Air Pass: Domestic Train Travel ..…………………………… Page 18 Silk Road Air Pass: the Two CAREC Regions of China ………….. Page 19 Silk Road Air Pass: Promoting Flights to/from CAREC …………… Page 21 Silk Road Air Pass: Sample Itineraries and Fares…. ………………. Page 23 Conclusion: Why Now? ……………………………………………………….. Page 26 Conclusion: Possible Conditions to Facilitate Success …………. Page 27 Addendum: Embracing New Technology ..………………………….. Page 28 Concept Introduction: Air passes have been used for over three decades by the airline and travel industries to facilitate travel within regions by offering a block of several one-way flights at a discount compared to buying the same flights separately. They are typically sold to tourists from outside the region planning a multi-stop itinerary. By selling a package of flights, often on several airlines, air passes can make travel within a region easier and more affordable, enabling tourists to visit more countries. While their overall track record is mixed, air passes have succeeded in the past at stimulating tourism in several regions, particularly regions that were suffering from high one-way air fares. In recent years one-way air fares have declined significantly in most regions, limiting the appeal of air passes.
    [Show full text]