MINISTRY OF SCIENCE AND EDUCATION REPUBLIC OF KAZAKHSTAN

M.KH. DULATY TARAZ STATE UNIVERSITY

Moldasheva A.B. Aymen A.T. Atasheva D.O.

BUSINESS TOURISM AS A FACTOR OF SUSTAINABLE DEVELOPMENT OF THE TOURISM INDUSTRY

Published in the PPC «BiKA», Nur-Sultan, 2020

1 UDC 379.8 LBC 75.81 М-75

Moldasheva A.B., Aymen A.T., Atasheva D.O. Business tourism as a factor of sustainable development of the tourism industry. Nur-Sultan: Published in the PPC «BiKA», 2020. – 120 p.

ISBN 978-601-7075-17-0

Reviewers: Dzholdasova O.K. – Ph.D., Associate Professor, Vice-rector of educational work at Taraz State Pedagogical University; Chimkentbaeva G.K. – Ph.D., Associate Professor, Department of Economics and Business, M.Kh. Dulaty Taraz State University; Zhakashev B.R. – candidate of economic sciences, Associate Professor, Department of Finance and Auditing, Taraz Innovative Humanitarian University.

The strategy of food servicesin the sphere of public food industry, the problems of restaurant business development in Kazakhstan, and the segmentation strategy for enterprises within the framework of restaurant business, based on the analysis of the current state of restaurant business in the region, were designed in the monograph. The given recommendations will allow the enterprises in the restaurant business quickly adapt to market conditions, identify clearly defined strategic prospects of business, overcome competitive pressure, and survive in an economic crisis.

UDC 379.8 LBC 75.81 М-75

ISBN 978-601-7075-17-0

Recommended for publication by the decisions of the Academic Council of M.Kh. Dulaty Taraz State University (Minutes No. 4 of 24.12. 2020).

© Moldasheva A.B, Aymen А.T.,Atasheva D.O., 2020 © PPC «BiKA», 2020

2 ABBREVIATIONS

WTO – World Tourism Organization SES – State educational standard m / s – meter per second LLP – Limited Liability Partnership A.D. – AnnoDomini RF – Russian Federation KITF – Kazakhstan International Tourism Fair GIS – Geographic Information Systems Tour – touristic (in complex nouns) V – wind speed °С – celsius temperature % – Percent H – Height R – River mln. – Million UNESCO – United Nations Educational, Scientific and Cultural Organization USTTA – American Travel and Tourism Administration NTA – National Tourism Administration MM – Media media TRP – Tourist and recreational potential WTTC – World Travel and Tourism Council NTC – National Travel Company

3 Contents

Introduction ...... 5 1 Theoretical foundations of business tourism development...... 7 1.1 International tourist exchange with business purposes as a kind of foreign economic relations……………………………………………... 7 1.2 World experience in the development of business tourism...... 12 1.3 Main problems of business tourism development in Kazakhstan...... 34

2 Assessment of the current state of business tourism in the Republic of Kazakhstan...... 39 2.1 Analysis of the tourist market development in the Republic of Kazakhstan...... 39 2.2 Assessment of the infrastructure of the tourist market…………...... 50

3 Directions of improvement of business tourism development in Kazakhstan...... 62 3.1 Formation of business tourism development strategy in the country… 62 3.2 Creation of a system for promoting the country's tourism potential in the domestic and international markets...... 64

Conclusion...... 71 Literature...... 74

4 Introduction

Currently, the tourism industry is developing dynamically in terms of revenue.In countries with well-developed economies, the tourism industry accounts for each tenth job and 10% of national and 9% of the money invested. The share of tourism in Kazakhstan's GDP is currently 2,5%, and its multiplier effect is 6,3%. Percentage of travel, over 1 million people work in travel agencies of Kazakhstan, making 2,3% of the country's population. For other successful businesses with no seasonal decline, the rapid economic development of their representatives, the establishment of cultural and scientific relations across the region and countries, business development, modernization of new and existing enterprises in various sectors of the economy determine the importance of industrial development of business tourism. This, in turn, has a significant impact on the national economy and its integration on the world market. The development of the national economy is impossible without an active exchange of information, without mastering new technologies, without finding partners for investment and joint projects, without participation in international congresses, exhibitions, seminars. All this is included in the sphere of business tourism. Thanks to this trend, there is an influx of new ideas into the economy, new markets are conquering - progress is being made. Thus, members of the Association of international trade centers state the fact of direct dependence of economic growth rates of each countryand its investment attractiveness on the level of development of business tourism in it. Effectively organized business tourism contributes to the development of the infrastructure of the host cities, increasing the income of city budgets, employment, expansion of international contacts, creating a favorable investment climate, improving the image of the regions as international cultural and business centers. In addition, business tourism is one of the most profitable types of tourism, which is characterized by high, stable growth and relative resistance to economic, political, climatic, weather and other factors. The structural changes in business tourism that took shape during the 20th century have changed the stable composition of air routes from Europe to America. The most focused development in the 80s confirmed the usefulness of business tourism of the last century. The studies conducted by the author showed that business tourists in the total world tourist flow account for about 25%, but they account for up to 60% of the total turnover of the tourism industry. It is believed that the business meeting industry brings at least 4 times more money to large cities than organizing any other public events. In the economically developed countries, business tourism is the same as the revenue of oil trading business. In spite of the global financial crisis, global meetings totaled around 300 billion dollars annually, according to foreign experts. The global meeting industry continues to evolve in more than 150 countries.By 2020, the number of international business trips will increase three times to 1.8 billion a year; tourism revenues will reach 2.1

5 trillion. The source of income from one tourist should reach $1,50 (now a foreign tourist spends an average of $500 on a business trip). Business tourism is not only a promising and highly profitable type of tourism business, but also characterized by high and stable growth and relative resistance to the effects of economic, political, climatic and other factors. This is the business development of any business tourism as a phenomenon that is not able to influence the economic crisis by referring to the high growth and stability and the fact that relative business tourism growth is a key element of the economy. That is why business tourism is developing rapidly in the future. Business tourism promotes international contacts in international conferences, congresses and forums in Kazakhstan. International events are one of the most important achievements of the economy of Kazakhstan in the field of economy, culture, education, medicine; to support the formation of business tourism. Theoretical and applied problems of tourism development, including business tourism, are investigated in the works of domestic and foreign scientists: S.R.Erdauletov, А.М. Artemyev, Z.M. Abisheva, U.T. Koshkimbaeva, A.A. Jakupova, A.Yu. Alexandrova, V.A. Baburina, Y.I. Blokhin, V.S. Bogoliubova, A.D. Evmenova, G.A. Karpova, V.A. Kvartalnov, E.Yu. Dedovskih, N.V. Moraleva, V.A. Morozov, S.I. Nikitin, G.A. Papiryan, E.E. Sharafanova, V.F. Yanchenko, Ceballos - Lascurain N., Healy R., Norris R., Roe D., Steck V., Western D., etc. The issues of business tourism in Kazakhstan were neglected, and the scope of scientific research is rather narrow and limited to the consideration of individual tasks.

6 1.THEORETICAL FOUNDATIONS OF BUSINESS TOURISM DEVELOPMENT

1.1.International tourist exchange with business purposes as a kind of foreign economic relations

The 21st century brings together changes, global integration, and global market relations. In the process of measuring global development, changing entities in the market, the relationship in the system of centralized management of the financial industry, and the management of powerful and large entities: departmental, transport, and financial businesses is strengthened. Any trade relationship cannot be without business relationship. Business trips to other cities or countries are related to business tourism. The development of the society and the economy of other countries are the reason of the active development of business tourism, the global development. Meetings are characterized by the fact that business tourism, both cultural and scientific, is the world's leading industry. In the future, business tourism will develop in Kazakhstan. Because in geopolitical conditions, as a natural resource, the interest of business tourists in our Kazakhstan may increase. Business tourism is a fairly broad concept. This is business communication, the exchange of information and technology, the search for new partners, markets, PR events, staff training, as well as the development of a corporate culture.The law of the Republic of Kazakhstan on tourism, including business tourism, remained unclear. The expenses of a businessman on business trips far exceed the average expenses of a tourist who is going to rest. And the most important advantage of this market is that no economic crises can affect this business.The number of business trips in the economic crisis may increase. Traveling tourism is the main purpose of tourism: professional and commercial interest (performance of professional and service tasks) on the exchange, exhibition, fair, conferences, congresses. The business exchange of business trips is economically profitable, because at any time of the season there is a rich history of business tourism. In some cities it is well developed, others do not know about it, and in others it is developing rapidly. Kazakhstan most likely belongs to the third group. Business tourism in Kazakhstan began its development in the zero years of the new millennium. As we know, after independence, the country's foreign policy was directed, first of all, to Russia, China, the USA, Arab countries, as well as to developed countries, including Western Europe.A number of diplomatic agreements were concluded, in addition to those indicated above with the countries of Central Asia. The basis of all this is exactly the same thing that lies in business tourism, because groups of diplomats made flights and transfers with specific diplomatic goals. This once again emphasizes the versatility of business tourism, only at the level of history and diplomacy of the state. Regarding the profitability of business tourism, one can say that one of its features is that the business traveler leaves the country more money than the average tourist. As a rule, business tourists stay in hotels of a level of at least three stars and

7 above, in their free time they are not averse to get acquainted with the history of a certain city or country where it resides, that is, excursion services are required here. Business tourists often rent vehicles, use the services of translators, that is, they bring income to many organizations involved in the provision of these types of services. This industry is rapidly developing in the world tourist structure over the past three decades and its revenues have a high share in the structure of international tourist income, and in a number of countries they play a leading role in certain state budget o in some cases.In terms of profitability, business tourism is comparable to the oil business, despite the fact that business tourists in the total tourist flow are only 20- 25%.In recent decades, research has been conducted in foreign economic and geographical science, the development of business tourism, the emergence of statistics of the World Tourism Organization and its key indicators - revenues, receipts, etc.Taking into account the overall business tourism and tourism success, Kazakhstan's policy is tracked for its development and high expectations from alternative tourism. Within the framework of the State Program on Tourism Development in the Republic of Kazakhstan, there will be great assistance in the development of tourism, including domestic tourism.In practice, the main events, such as the organization of the OSCE summit in 2010, make our country popular in many international organizations. EXPO exhibition in 2017, the construction of a part of the Western Europe-Western China route on our territory - all this served to promote the Kazakhstan brand to the world market, therefore we are obliged to prove ourselves from the best side, securing a positive image that will serve as an additional the background for the further development of the country's economy due to business tourism, and indeed tourism in general. Today, the task of developing world business tourism in practice is a priority, as business tourism services are the basis of global trade. In terms of profitability, countries with a developed business economy are not inferior to the oil business.There are a number of distinctive features, thanks to business tourism contributes to the development of state policy, its growth is a priority: ˗ off-season (events with the participation of business travelers are organized throughout the calendar year); ˗ predictability (it is possible to plan a business event in advance); ˗ mass character; ˗ business tourism focus on medium and high quality services. To determine the place of business tourism in the structure of the tourist market, we have clarified the classification of types of tourism for the purposes of travel, resulting in two main objectives of tourists visiting certain destinations: recreation, recovery and development of physical strength; service, professional and business purposes. According to the above objectives, tourism was divided into two main blocks: recreational and business (figure 1). BusinessTravel is the tourism destination that is developing most dynamically today.Business tourism in one form or another has been around for a relatively long time. The independence and high profitability of this type of tourism were confirmed in Europe and the USA in the 70-80s of the 20th century, in the 90s business tourism acquired a particularly wide range of its significance.The USA, Switzerland, and

8 Finland put business programs for developing their economies in leading positions. Judging by their forecasts, world experts say that by 2020 business trips will increase from 564 million to 1.6 billion a year.

Figure 1. Classification of tourism by purpose of travel

Business tourism and hospitality are an important part of tourism. The interest of hotel enterprises in this type of tourism is justified by the fact that business tourism is less volatile than the recreational tourism.The choice of the place of business meeting, business tourism is a big exception. Business tourism leisure is less subject to economic fluctuations than travel, as recent economic fluctuations have a clear dynamics of economic fluctuations.Business trips are made in an independent economic environment: in contrast to the seasonal period of entertainment. Business tourism is active all year round. Today, there is no answer to thequestion "what is business tourism?” Many believe that business tourism is not tourism at all. Until the early 90's.

9 the category of people traveling for business purposes staying at hotels was called "business travelers." In English, the word "tourism" is not used in the field of business tourism, since for this case there is a special term "business travel". Often, instead of the term “business tourism”, the English abbreviation MICE is widely used, which is comprehensively filled with the meaning that reveals the essence of this term: ˗ meetings; ˗ incentives; ˗ conferences; ˗ exibitions. All developed countries create special literature of business tourism, training centers, as well as the organization of exhibitions, the Association of business tourism. For example, the American Association of business tourism includes incentive tours organized by the airline "SITE" (Society of Insensitive and Travel Executives), hotel, cruise network, Congress centers, insurance companies, tour operators. The main tasks of "SITE" are to support marketing of its members, exchange of experience and knowledge, issue of special literature. "BusinessTravel" offers a developed industry, which aims to service business trips. Experts believe that "business travel" is a business system consisting of subsystems. As a rule, this is a quadrangle, each corner of which is occupied by someone: 1. - "customer companies" (they send an employee of their companies on trips for business purposes); - "suppliers" of a particular type of service (airlines, hotels, insurance companies, etc.); - "full service provider companies (tour operators); - MICE industry organizations and firms Business tourism is a visit to foreign countries for participating in the conference, visiting exhibitions, in most cases, business trips give a positive and useful effect. Today many travel agencies are engaged in the organization and activity of fairs, various exhibitions, conferences. Their experience is achieved for the organization of various topics and for large groups (100 or more people), and for each individual client. Organization of business trips has its own specifics. So, take into account the high season in the exhibition business, which falls on February-May and September- November, business tourists plan their trips in advance. It should also be noted that there is a need to find a short flight connection, the hotel closest to the exhibition, a convenient transfer, etc. The basis of business travel is the compliance of meetings and events with the program.An important characteristic of a tour company is competence in matters of a clear vision of business tasks of the client’s trip, knowledge of the specifics of the client’s professional activities, and of course, painstaking work with each client is necessary. Other major business goals, business trips are accompanied by cultural and excursion programs. Standard service includes accommodation, breakfast, transportation and visa. Such a subspecies of business tourism as Congress tourism requires special clarification in connection with the variety of existing forms of this type of tourism. So, Congress tourism is an activity related to the organization of specialized meetings

10 that bring people together to discuss issues of interest. Congress events can take a variety of forms: Congress, Symposium, conference – 12 periodically held events with a limited number of pre-invited participants, a clear program and setting goals in certain areas of human activity.However, the differences between one type of Congress event and another are their social and economic importance, the complexity of the organization and procedure, the number of delegates. The main criterion by which it is possible to segment the Congress tourism market is the nature of the initiator of the convening of a meeting. It is the nature of the initiator that determines the type of business of event organized, as well as the list of necessary services. The study identified two segments: the corporate market of Congress events and the associative market of Congress meetings (figure 2).

Figure 2.Segmentation of the market of Congress tourism

It is of undoubted interest which factors are taken into account when assessing the quality of the congress event. Table 1 presents the results of surveys conducted by the author of the participants in the annual international economic forum held in Astana from 2014 – 2018 (410 delegates participated in the survey).

Table 1 Criteria for assessing the quality of the Congress

№ Quality assessment criteria Share of respondents from the total number of respondents, % 1 Placement quality 75 2 The size of the registration fee 64 3 Quality of food 59

11 4 A transfer 54 5 Content of the forum programme 43 6 Opportunity to meet new faces 37 7 Organization of free time 35 8 The cost of additional services 28 (rental of equipment) 9 Work of the organizing Committee 26

Thus, the main factors influencing the assessment of the quality of the congress are: the quality of accommodation, the size of the organizational fee, the quality of food, the availability of transfer. In accordance with this, in the dissertation, the author singled out features for the accommodation, meals, transportation and servicing of business tourists. Summarizing the above information, it should be noted that the structure of business tourism is multifaceted: business tourism takes a variety of forms. This is a multifunctional type of tourism, combining a complex of various services related to accommodation, meals, transfer organization, technical and information support for business meetings, organization of free time for delegates.

1.2.World experience in the development of business tourism

If we consider each of the Centers of world business tourism, we can see that every year about 108 million international tourists with business purposes visit the Western Europe region and they spend more than 180 billion dollars. The region ranks first in the world in terms of arrivals and expenses for business tourism, 50% and 39% of the world, respectively. The share of business travelers in the total flow of tourists in Europe is 50%. At the same time, intra-regional flows of Western European business tourists make up 80% of all business international tourists in the region [11].

Table 2 Ranking of leading countries for international meetings in 2016

Country Number of meetings USA 288 Germany 272 Spain 267 France 204 Britain 196 Netherlands 181 Italy 170 Austria 145 Japan 132 Australia 129 Note - Compiled according to the source [11]

12 The business travel market in Western Europe has a complex structure. According to the international hotel Association, in 2016, over 3,000 hotels in Western Europe accounted for 52% of business travelers across the client base (figure 3). Data on the share of business tourists in the total tourist flow vary in different cities of Western Europe. For example, in cities such as Oslo and Birmingham, the largest share of business tourists is 66,8% and 64,4% respectively [12]. Also distinguished such cities as: Zurich, Munich, Berlin, Brussels, Copenhagen, Helsinki, Manchester.In these cities, the share of business tourists in the total tourist flow is more than 50%, and in some more than 80%.

Figure 3. The composition of the customer base in hotels in Western Europein 2016 Note- Compiled according to the source[12]

Among business travelers in Western Europe (figure 3), individual business travelers account for the highest percentage (33%). The second group is represented by business tourists who attend congresses and conferences (10%). According to statistics, over the past 10 years, the Association accounts for more than 60% of the activities of the second group. The corporate business travel sector shrank significantly in the early 1990s, when European companies switched to austerity in the face of the economic downturn. They had reduced the number of trips, combining multiple trips, introduced improved communications systems to solve most issues on the spot, booked a cheap hosting and purchased tickets at a discount [13]. In this regard, an increasing number of hotels and airlines in Western Europe are developing a special system of corporate rates, which allow, on the one hand, attracting and retaining corporate customers, on the other - to reduce the cost of corporate clients in the budget for business events. The main "suppliers" of corporate business tourists in Western Europe are Germany, Great Britain, France, and Italy. The undisputed leader here is Germany. About 5 million Germans go on business trips annually, mainly to other cities in

13 Germany (about 80%). The average duration of such trips is 12-13 days to other continents, within Europe - 5-6 days, in their country - 3-4 days. Among the Western European countries that receive flows of corporate business tourists, the same stand out: Germany, Great Britain, France, Italy, as well as Spain, Sweden, Switzerland, Belgium. The non-corporate business travel sector is also very well represented in the Western European market. The geography of trips to meetings of various associations and government meetings in the main coincides with the flow of corporate business tourists. The main "suppliers" of non-corporate business tourists are also Germany, Great Britain, France and Italy. Among the countries that host business travelers of the non-corporate group, the United Kingdom (London) stands out. In 2001, this country ranked 2nd after the United States in terms of the number of organized events and accepted business travelers of the non-corporate group. In this regard, the cities of Denmark, Austria, Spain, France, and Belgium are noted. The cost structure of corporate and non-corporate business travelers in Western Europe is similar: 47% of the budget is spent on air tickets, 24% - on accommodation, 13% - on food, 7% - on additional transport and 9% - on other expenses. The most dynamically developing segment of the European business travel market is Congress and exhibition tourism (exhibitions, trade fairs, congresses). Of the 108 million business trips in the European region, Congress and exhibition events account for about 10 million annually in the world, more than 8 thousand congresses, exhibitions, conferences and symposiums are held, including more than 3 thousand in Europe, mainly in the West [13]. As a rule, seminars and congresses are timed to the work of exhibitions, so it is difficult to strictly delimit seminars, exhibitions and congresses. Leaders in the organization of various exhibitions and reception of business tourists are Germany, Italy and the UK. In Europe, they stably hold the "palm", and in the world, they are second only to the United States. By specialization, exhibitions in Europe are divided into 17 sectors, each of which is more or less represented in each Western European country. The maximum number of visitors to the exhibition falls on three specializations: exhibitions of automotive subjects, sports and tourism and consumer goods exhibition. Congress and exhibition tourism in Western Europe has a number of distinctive features. Firstly,seasonality. Traditionally, the "hot" exhibition time is September-November and February-May, that is, spring and autumn, when there are peaks in the number of organized exhibitions, the number of exhibitors and visitors. For example, out of 64 annual exhibitions on automobile specialization, more than 30 exhibitions fall in the spring months, and more than 25 exhibitions fall months. Of the 34.5 thousand exhibitors (during the year at all exhibitions in all countries of Western Europe), more than 20 thousand fall in the spring months and about 10 thousand fall. Secondly, the exhibition venues are dedicated to the countries - "leaders in the production" of the advertised products. The leaders in the number of exhibitions of automotive specialization are Germany and France. Out of 64 exhibitions of this specialization, about 21 are held annually in Germany and about 13 exhibitions in France. Thirdly, national exhibitions prevail (about 60%).There are also a number of

14 exhibitions with international status, where the number of foreign exhibitors exceeds the number of national exhibitors. The most significant of them are on automobile, tourist and sports subjects, and computer engineering and information technologies. Some of the exhibitions are purely national in nature. Their visitors and exhibitors are residents of nearby cities in the country. In each specialization, you can name 2-3 most important exhibitions, which are known all over the world and have an international status and can gather up to 300 thousand visitors. A striking example of such an exhibition is the international tourism exhibition FITUR in Madrid, which is held in late January - early February. This exhibition brings together experts from around the world to exchange experiences. Fourth, the frequency of exhibitions is usually annual, due to the emergence of new collections, development trends that require some time to develop and further provide to the consumer. Some exhibitions are held once every two years, for example - on pharmaceutical product development. Along with individual business trips, congresses, exhibitions and all kinds of conferences, in the Western European region there is a special sector of business tourism - incentive tours. The share of such business travelers in hotels in Western Europe is small, which explains the features of this sector. The incentive program is designed so that tourists usually live in “unusual" accommodation facilities. The USA is the main "supplier" of international premium tourists to the Western European region (more than 60%). Nowadays, the reward trip is becoming increasingly common in Western Europe. Practice shows that incentive tours are the best incentive to work, compared with any consumer product. According to European monitoring, in Europe, the first 10 countries generating tourist flows are simultaneously the main European “suppliers” of premium tourists (40% of the total number of premium international tourists). The top ten are Germany, Britain, France, Italy, the Netherlands, Austria, Belgium, Sweden, Switzerland and Italy. Companies in these countries spend more than $ 7 billion annually on the promotion of their employees. Until the end of the 80s, the leadership in the European incentive tourism market belonged to the UK, mainly due to close contacts with the USA and a large number of American firms and branches established in the UK. Although the European market accounts for half of all incentive travel in the world, it is relatively young and less developed than the American market. On the other hand, European customers are more experienced in travel and, accordingly, more demanding when choosing a place and getting services. They would like to get something exceptional that they could not afford during their previous independent travels. Currently, business tourists from 4 leading Western European countries spend more than 63% on business travel (figure 4). The first position in Western Europe is occupied by the German business travel market-both in terms of providing its territory for business events and receiving business tourists, and from the standpoint of the participation of Germans in business trips abroad. Germany ranks second in the world for international events initiated by international associations (conventions). Germans make up about 28% of all business travelers in Western Europe and spend 18% of all Western Europe. At the same time, the share of German tourists with business purposes in the domestic market is 12%.

15 The largest segment of business travelers (figure 4) in Germany (Germans, Europeans and international tourists) is represented by individual business travelers and exhibition visitors (64%). The main destinations of individual business travelers in Germany are Berlin, Munich, Hamburg, Frankfurt, Cologne and Hanover. The largest number of overnight stays made by individual business tourists in Germany was noted in Berlin and Munich, 11 and 7, respectively, while in other cities their average number was 2.

Figure 4. The structure of expenses of business tourists in Western Europe in 2016 Note-Compiled according to the source[11]

Germany is a leader in the world and in Western Europe in holding exhibitions and trade fairs and receiving business tourists. Confirmation is that of the 33 largest exhibition centers in the world, 9 are located in major cities of Germany, and 4 of them have a gross area of more than 200 000 sq. m. the largest exhibition center in the world is located in Hanover (Messegelande, Hanover), its area is 495 255 sq. m. This share of exhibitions and trade fairs (19%) is observed only in Germany, on average in Western Europe it is 6%. Germany occupies the 4th place in the world for conducting congresses and conferences, share in the German market - 15%. 93% of them are held in hotels, 4% - in specialized places and 3% - in scientific institutions. At the same time, 50% of the conference and Congress halls (specialized seats) are located in the airports of large cities. For several years, the international Association ICCA has declared Germany the best in the field of business tourism in Europe. In the world ranking, the country still ranks second after the United States, and the German capital is on the fourth line among the business cities of the world. Germany is the world capital of international exhibitions and fairs. Every year, the average number of international and interregional exhibitions and fairs held in Germany is 150, which is two-thirds of the total number organized in Europe. Among them are the world's largest trade fairs. Exhibitors and visitors, the number of which reaches 10 million, annually spend about 10 billion euros on participation in fairs, and the total 16 economic effect of their holding is close to 25 billion euros (2). Almost 50% of exhibitors and about 20% of visitors come from abroad. There are more than 11 thousand venues for holding MICE events in the country - hotels, congress centers, universities, airports, monasteries, castles, museums and theme parks. Exhibition and congress activities provide about 250 thousand jobs. German exhibition and Congress centres are well equipped. It uses the most modern technology: image screens, integrated video projector, analog connections with direct ISDN phones, automated mobile tables, smartboard equipment, the necessary video equipment, frequent, wireless Wi-Fi technology with Internet access. The schedule of numerous exhibitions in Germany covers mainly the time from the beginning of September to the end of May. In hotels in cities where exhibitions are held, prices increase markedly with a simultaneous increase in demand for accommodation. This is associated with fluctuations in prices and timing of arrivals offered by tour operators. In the summer, business life in Germany abates - the time comes for excursion tourism and leisure. With this in mind, it is worth choosing the time for incentive events - after all, Germany, as one of the largest tourist powers in the world, has the widest cultural and sightseeing opportunities. On average, in Berlin, in hotels of the highest category, a guest pays 130 Euros per room, in Rome - 201, in Paris - 212, in London - 300. Berlin is considered in Europe the leader in the number of hotels of the standard and comfort class. Incentive tours in the German capital are organized by over 30 travel companies. In Germany, an important role is played by the presence of large exhibition and Congress centers, among which the Messe Berlin complex occupies the fifth leading place in terms of volume (covered pavilions with an area of 160 thousand square meters). It includes the largest international Congress center in Europe exhibition ICC Berlin (16 thousand square meters). For most indicators, Messe Berlin is ahead of many exhibition companies in the world. The organization annually attracts more than 25 thousand companies participating in events (70% of them are foreigners) and more than 900 thousand visitors to the capital, due to which about 1.7 billion euros are additionally transferred to the budget of the city and its environs Four of the ten most famous German trade fairs are held in Berlin: international tourism exchange-ITB, green week by Gruene Woche (agriculture, horticulture, food industry, landscape design), international exhibition of consumer electronics-IFA, international aviation salon-ILA Berlin Brandenburg. International exhibition of radio electronics for professionals-IFA, focused directly on domestic consumers in the sector also ranks first in the world in its sector. It gathers 1200 participants and more than 250 thousand visitors from more than 40 countries to these Messe Berlin exhibition halls, about 40% of visitors for business purposes.International exhibition ILA is one of the five leading aerospace salons in the world. A higher status is considered a fair of French Le Bourget and British Farnborough.Traditionally, the main participants are large international concerns of Germany, Great Britain, France, Japan, aerospace firms of North America, Central and Eastern Europe and Asia.

17 Business tourism brings Berlin nearly three million overnight stays and provides 17 thousand jobs in congress centers and hotels. Turnover in the field of business tourism exceeds 810 million euros. Messe München International / München's Messe and the international Congress centre (MMI) are designed for the exhibition centre and the Munich - international Congress centre (ICM). Today Munich is one of the ten leading European cities in the field of Congress and exhibition activities. The MMI annually hosts more than 30 thousand exhibitors from 100 countries and 40 major fairs from around the world, attracting about 2 million people.The main ones are Bauma (construction equipment, building materials and tools), Ispo (sports goods), Systems (information technology and telecommunications), and I. H. M. (small and medium-sized businesses). Hanover hosts the world's largest industrial Hanover fair (Hannover Messe) - the Barometer of the world economy. Each of its thematic sectors offers a specific industry. Hannover exhibition "СeBIT-computer and telecommunications", which has no analogues in the world, is a unique forum of computer B2B-technologies. Frankfurt is the largest territory in the world where IAA gathers up to a million visitors of cars exhibition. The total area of the exhibition is 215 thousand square meters. About a thousand exhibitors present their products here.The Frankfurt Book Fair (Buchmesse) is very attractive, with publishers, booksellers and authors from all over the world gathering every fall. In Frankfurt, the World International Exhibition of MICE Tourism IMEX is held, its exhibitors represent 22 industry sectors in the field of business tourism and the MICE industry. The exhibition is attended by about 6,000 so- called privileged buyers (hosted buyers) from many countries of the world. Major business events in Frankfurt are held at Messe Frankfurt. The area of its closed premises together with the forum, the Congress center, and ten exhibition halls is 320 thousand square meters. It is 1 km from the Central train station, which is a 15- minute drive from the airport. One of the complexes is located next to Maritim 5*, including Messe Frankfurt halls. The first number of the exhibition in Dusseldorf is Drupa (printing business), though it is held every five years. It is visited by about 500 thousand people. Among the most famous exhibitions-Medica (medical equipment), Interpack (packaging technology), as well as the international fashion show. The exhibition is organized in Düsseldorf by Messe Duesseldorf GmbH. The exhibition complex of the city consists of 17 pavilions with a total area of 234 thousand square meters. Of the 45 exhibitions held in Dusseldorf, more than 20 have the status of leading in the world in their industries. Cologne hosts exhibitions in 25 industries. Among them are Photokina (photo and film products), Moebelmesse (furniture), as well as specialized exhibitions of men's fashion, household appliances, hardware and bicycles. A key event in the global food industry is Anuga. Almost 50 guests from 50 countries visit Hamburg every two years. They visit the world's largest exhibition SMM ("ships, cars, marine equipment"). Hanseboot exhibition of ships and boats is held annually.The annual Spielwarenmesse toy fair in Nuremberg and the Equitana world equestrian fair in Essen are also of global importance. Thanks to

18 its airport, a small exhibition center has become a small Friedrichshafen on the shores of Lake Constance. Germany is also an incentive country for tourism. There is a magnificent nature, an amazing city, about 5 thousand palaces and fortresses, four thousand museums, 350 theaters and concert halls. More than 10 thousand festivals and other events are held in Germany every year. In this country there are great opportunities for outdoor activities in winter and summer. The scope of incentive programs offered for management in Germany is very large. It's an extreme sports program, water cruises, hot air ballooning, medieval festivals, gastronomic trip.Thrill-seekers are offered a descent along the professional bobsled track in Berchtesgaden (120 km per hour, 14 bends), a "strength test" in the cable "web" at eight meters height, an alpine triathlon (mountain bike, climbing, rafting), an adventure full of adventure " in the wake of Indiana Jones. " One of the hits of the active programs is the opportunity to rush along the racetrack in Hockenheim (90 km from Frankfurt Airport), where the German Formula I Grand Prix is played. Fans of motor vehicles are interested in visiting the theme Park Autostadt Wolfsburg: here you can take a test drive in the Volkswagen of the last sample, see the auto pavilions (Lamborghini Volkswagen Audi, Skoda, etc.). Unforgettable impressions the participants have from the Baltic coast;the travel on the waters of the river Königssee and Chiemsee, white water rafting on the lakes. Incentive tours can also go underground. During the “Journey to the Center of the Earth” through the silver mines of the Harz mountain region (Saxony-Anhalt, East Germany), the most successful miners receive cash bonuses. At the end - a traditional meal underground at a depth of about 200 m to the music of a mining orchestra. And the “Salt Tour” in Berchtesgaden provides an opportunity not only to visit the famous Salt Mines, but also to take a boat trip along the underground Salt Lake.Once in Berchtesgaden, you can also climb Mount Obersalzberg, which is not far from Lake Königssee. Here is the "Kelsteinhaus" - one of Hitler’s headquarters "Eagle's Nest", a museum, the surviving Fuhrer bunker, where there is an access. A feature of all intensive programs is excellent gastronomy. The German menu is well presented in themed culinary tours. For example, dinner in the Bavarian Alps at an altitude of 1200 m: first a folklore show with national drinks, then a rich buffet, and finally a torchlight procession. For a gala dinner in the palace on the island of Herrenkimsee (Bavaria), the participants of the tour arrive by ship. After a tour of the island, guests are invited to the festively set “royal” table in the spirit of the times of Ludwig II. Music in the classical chamber style makes it possible to more fully experience the atmosphere of those years. Europa-Park, the largest in Germany, offers such a model of incentive programs as Confertainment: Conferences + Entertainment, which provides not only an impressive range of entertainment (various attractions and shows, the highest and fastest roller coasters), but also significant congress opportunities. In the twenty rooms and working rooms of the complex, in rooms for 60–2000 people (including several restaurants), almost 13 thousand guests can accommodate at the same time. Thus, business tourists from the UK make up 15% of all business travelers in Western Europe and spend 17% of the total costs of the entire Western Europe.

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Figure 5. Structure of business trips in Germany (Germans, Europeans and international tourists), 2016 Note-Compiled according to the source [11]

The share of English tourists with business purposes in the domestic market is 14%. Foreigners coming to the UK for business reasons account for 30% and spend about 30,4% on business travel in the UK. 74% of foreign tourists from all over the world come to the UK by air transport (67% of business tourists from Western Europe also use air transport). The UK stands out for the dominance of conferences and congresses in the business travel market. Most of them are held in hotels of cities and hotels at airports (71%), 4% - in specialized places, 8% - in non - traditional places, 3% - in residential centers and 3% - in educational institutions. There is a tendency to increase the number of such events in non-traditional places (for example, the yacht "Britain"). The largest percentages are corporations and governments, 59% and 25% respectively, and associations account for about 14%. The Italian business travel market ranks the 3rd place in Western Europe in terms of expenses (15%). Approximately 10% of Italian business tourists visit Western Europe for business purposes. In Italy, 80% of business trips of Italians - in Italy, 20% - to other regions of the world - despite the fact that in classical tourism it is vice versa. The interest of Italian business tourists to Central and Eastern Europe is noted. The main destinations in Western Europe are Germany, France, Great Britain, Spain and Belgium, as well as outside Europe - the USA and Central America. Classical business trips, trips to congresses and conferences, exhibitions and trade fairs, association meetings dominate among Italian business travelers. (Figure 6). The main share of Italian business travelers by gender is men (69.2%), but middle- level managers (54.5%), directors, and company owners (29.5%) occupy professional status. Tourists from the northern regions (52%), as well as from the center (20%), mainly from Lazio (Rome), lead the region of origin.

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Figure 6. Travel geography of Italian business travelers motivated in Italy and Western Europe, 2016, in % Note-compiled according to the source [11]

In France, the share of business travel in the total share of French travel is only 4%. The average number of days spent on a business trip by the French in 2016 was 4-5. Today, such trips last about 2-3 days. Hotels in the Ile-de-France region with a center in Paris are most dependent on business tourists (they receive about half of the country's business tourists). The most popular business travel segment in France is conferences and congresses. Exhibitions and fairs are less popular, despite the fact that the Paris- Expo and Paris-Nord exhibition centers are part of the 32 largest exhibition centers in the world (gross area of more than 100,000 sq. meters). In Spain, the share of business travel in the outbound tourist flow is only 5,5% of the total. Foreigners coming for business purposes make up about 6,5% of the total mass of tourists from abroad. Spain is of the greatest interest for conferences and congresses (70% of business tourists), as well as for incentive events. Many of the incentive activities are held in the resort area of Spain, that is, in the coastal Mediterranean zone of this state. The main flows of foreign tourists are from the USA, Great Britain, Germany and the Benelux countries. Barcelona is the most popular venue for congresses and conferences. In Austria, the share of business travel in the outbound tourist flow is 25%. The maximum share of business meetings is corporate events (70%), while the maximum number of business travelers is represented by international conferences (52%), while business tourists of corporate events make up only 30%. During the winter and spring months there is maximum activity in business travel. Vienna is one of the main destinations in Austria. In 2016, 1376 conferences, corporate meetings and incentive events were held in Vienna. Vienna ranks the 4th place in the number and quality of international conferences in the world; in 2016, 58 international conferences were held there. In 2012, 11% of the conferences in Vienna were conducted in the three major conference centers: "Vienna", "Hofburg" and "Ried", 26% in hotels, 25% in universities. The main topics of the meetings were: 27% - business and politics, 21% - medicine,

21 10% - other scientific topics. In Switzerland, the share of business travel in the total share of Swiss travel abroad is 45%. 19% of foreigners come to Switzerland for business purposes. Traditionally, the high level of service in Switzerland contributes to the rapid development of business tourism in the country: an accessible airport system, multilingual staff, and the level of hotels - all these characteristics make Switzerland competitive in the world market of business tourism. According to the hotels of Switzerland, the percentage of business travelers is tourists who come for conference and incentive events. 69% are tourists from other European countries, 30% - Swiss, 1% - Americans. The main destinations of Swiss business tourists are Germany (25%), France (17%), Italy (12%), as well as Austria, Spain, Great Britain, about 3% are from the USA and Canada. In 2016, the share of Swedish business tourists traveling for business purposes in the country amounted to 70% of the total number of domestic tourists. Business trips Swedes associated with visits to offices in different countries of major Swedish companies such as Erickson, Electrolux, Volvo, IKEA and Hennes and Maurits. The main modes of transport are plane and car. Business tourism in Poland is one of the main and most promising areas. Recently, it is often called the" brand of Polish tourism", which is very reasonable. Business tourism brings the Polish economy an annual income in excess of $ 1 billion, which is about 31.1% of the income of the entire tourism industry. Business trips account for 24% of annual tourist visits. According to the Institute of Tourism of Poland, more than 4 million tourists visit Poland annually for business purposes, more than 3 million for leisure and sightseeing, and less than 3 million for visiting friends and relatives.Thus, business trips make up a significant part in the structure of the tourist flow to Poland. It is worth noting that 65% of tourists are European communities. The first place is occupied by Germany-1,9 million people, then the Netherlands (130 thousand people), the Austrian state (100 thousand people), the UK (100 thousand people), the Swedish state (85 thousand people), France (75 thousand people), Italy (60 thousand people). The share of European countries that are not related to Eurobonds is 29%, and non- European countries- about 6%. The leader among the latter is the United States about 70 thousand people.

Figure 7.Structure of business visits in Poland

22 The structure of business trips is dominated by trips with individual goals, as well as trips of corporate interest. They account for 33.6% and 30% of all business trips, respectively. The share of trips associated with attending conferences and trade fairs, exhibitions is significantly less - 8% and 2.3%, respectively. In 2018, the Polish Institute of tourism statistics published data on business trips to Poland: ˗ 100 thousand tourists come to Poland annually to visit trade fairs and exhibitions; ˗ the average duration of their stay is 4.3 nights (while the average length of stay of a tourist traveling for business purposes in general is about 2.9 nights for the country in question); ˗ 17.5 tourists go to agencies to organize tours; ˗ 95% visit large cities such as Warsaw, Poznan, Krakow and Leeds; ˗ 13.4% of tourists arriving for business purposes are unhappy with the sanitary conditions in the accommodation facilities provided, ˗ 6.3% - by the level of service, ˗ 11% - the cost of accommodation facilities; ˗ this ratio for all tourists visiting Poland is as follows: 16.8%; 8%; 22.9%, respectively; ˗ 95.4% of tourists arrive by car; ˗ 87.2% of tourists have higher education. In general, the basis of the above examples is business tourism in Poland. The following factors contribute to the development of business tourism in the country: ˗ advantageous geographical position in the center of Europe; ˗ Poland’s entry into the EU, as a result of which the borders were opened in relation to the EU member states, the development of economic relations between the countries, the growth of business activity and the number of business trips; ˗ high quality of services provided; ˗ a highly developed tourism industry, including ample opportunities for conferences and various congresses in large cities (Warsaw, Krakow, Poznan, Gdansk, Wroclaw, etc.), as well as in museums and places of historical value; ˗ attractive accompanying programs, including sightseeing, horseback riding, skiing, etc. Business tourism market in Hungary is developing quite rapidly, and Budapest has already entered the top ten cities-leaders of MICE-industry. According to ICCA estimates, in 2015 the city shared the 8th place with the capital of South Korea – Seoul, and in 2016 – took the 6th place. In Hungary, the share of tourism in the country's GDP is about 14%. Trips to Hungary for business purposes occupy about 30% of the total flow of international tourists. The attractiveness of Hungary as a venue for various business events is determined by its convenient geographical location, outstanding balneological opportunities, numerous cultural and historical monuments and gastronomic traditions. About 79% of all events are held in Budapest. The share of business tourists in the hotel Fund of Budapest is 47,8%, 28% of them are corporations, 23% are visitors and participants of exhibitions and fairs. In Budapest, more than 55 hotels and about 12 business centers are equipped for meetings, exhibitions and

23 presentations. Approximately the same number of accommodation facilities offers similar services in the province. Most MICE events organized outside Budapest are held in the following cities: Pecs, Szeged, Debrecen, and Sopron[34]. About 30 specialized companies organize congress events in Hungary.Within the framework of the Hungarian National Corporation “Hungary - Tourism”, the Hungarian Bureau of Congresses (HCB) operates. His tasks include disseminating information about Hungary as a congress area, as well as the conditions for conducting business events. If necessary, HCB maintains contacts with Hungarian professional and manufacturing partners. In accordance with the data presented in table 2, for the period from 2010 to 2016, the development of the business tourism market can be considered somewhat spasmodic. In 2010-2012, the total number of MICE events held was relatively constant, while the number of conferences increased by 16, and the number of exhibitions decreased by 14.

Table 3 General characteristics of the business tourism market in Hungary in 2012-2016 Indicators Years 2010 2011 2012 2013 2014 2015 2016 All events Among them: 390 392 368 349 364 460 472 conferences 354 370 351 326 340 431 444 fairs and exhibitions 36 22 17 23 24 29 28 The average duration of the conferences 3,5 3,6 3,1 4 4 4,5 4,7

In 2012-2013, there is a sharp decrease in the number of both conferences and exhibitions, in connection with which in 2015 the total number of events amounted to 349, which is 11% less than the result of 2013. Since 2016, the situation in the business travel market has been improving. In 2014-2016, the average annual growth in the number of conferences was 35%, and the number of exhibitions and fairs was 1.6%. In general, the average annual growth rate of MICE events was 36.5%. As for the average duration of the conference, the situation here is different from global trends. The table shows that since 2013 this indicator has been increasing and in 2016 is 4.7 days (versus 3.19 days in the congress tourism market of Vienna). The topics of the conferences are extremely diverse. The main topics of such events are traditionally medicine and economics. The share of medical conferences in average for 2010-2016years is 25%, economic congresses – 24%. The third place belongs to the scientific conferences. Despite the fact that their share has been decreasing recently, an average of about 21% of the conferences held are devoted to various sciences. Since 2013, the proportion of conferences on information technology has increased. On average, over the study period, their share is 9%. In 2016, about 64% of all MICE events in Hungary were held in late spring and autumn, which is in line with global trends: 39% were held in May (57 conferences) and June (60), and 61% - in September (71), October (68) and November (45). Analyzing 24 the distribution of MICE events by months for 2010-2016, it can be noted that the proportion of events held in March and April decreased, and the proportion of events held in November increased significantly. As for the dynamics of conference participants, up to 2012 there was an increase in the number of participants (table 4).

Table 4 Dynamics of the conference participants for 2010-2016years

Indicators Years 2010 2011 2012 2013 2014 2015 2016 Average number of 191 255 230 197 200 238 246 participants Number of participants 61964 92953 79423 63513 66917 96875 102694

However, in 2014-2015 there was a sharp decline (by 32%), which is primarily due to a decrease in the number of MICE events. From 2016 to the present, the trend in the number of participants has been observed in the business tourism market in Hungary. Annual growth is 16.9%. Since 2015, the average number of participants has been increasing annually by an average of 16.3%. In 2016year, the share of events with the number of participants in the range 101-250 was 46%, the second place was occupied by events with the number of participants in the range up to 100 people – 34%. The share of large – scale activities is small-about 2%. It should be noted that from 2012to 2016 events of up to 100 people prevailed. During the study period, the proportion of activities ranging from 251 to 500 people remained relatively constant – an average of 13%. The most numerous are scientific conferences (average number of participants – 302 people), medical conferences (261), MICE-events related to tourism (202). Based on the data presented in table 7,34% of the conferences held in 2016 were 4-5 days long, about 30% - 2-3 days long, 28% - more than 6 days.

Table 5 Classification of conferences according to duration

Indicators Years 2010 2011 2012 2013 2014 2015 2016 1 day 11% 11% 10% 11% 13% 9% 8% 2 - 3 days 51% 42% 54% 37% 35% 33% 30% 4 - 5 days 27% 34% 28% 34% 32% 33% 34% over 6 days 11% 13% 8% 18% 20% 25% 28%

As can be seen from the table, the proportion of activities lasting 2-3 days for the study period has decreased significantly. The average annual growth rate was -3%. In

25 general, over the period from 2010 to 2016, the number of events of a given duration fell by 59%. The share of activities lasting more than 6 days has increased significantly – by 2,5 times. In the venue of MICE events, the first place is occupied by hotels, they account for 71% of all events on average, congress centers (15%) take the second place, and 14% to universities and other venues. In Budapest for meetings, Over 50 hotels of the 3-5 * level and about 10 business centers are equipped with exhibitions and presentations. About the same number of accommodation facilities offer similar services in the province. In the whole country, most events are held in congress hotels. The largest Hungarian hotel groups and foreign chains represented in the country have ample opportunities for holding MICE events. Of the more than twenty hotels located in Hungary, Hungarian Danubius hotels, almost all have Congress facilities. Approximately half of the chain's Congress hotels are located in the capital, the rest in the West of the country, near Lake Balaton and in PECs in the South. About half of the hotels in the group are both thermal and Spa hotels. A special Danubius Quality Conference (DQC) program has been developed for customers coming for business purposes. According to its standards, for example, confirmation comes no later than 12 hours, rooms are released no later than an hour and a half before arrival, and in general, business activities are best combined with cultural entertainment and gastronomic pleasures. The other major Hungarian Hunguest Hotels chain consists of about 30 hotels. MICE-service offers more than 20 hotels, mostly outside the capital. About half of the chain's MICE hotels also have thermal and Spa facilities. Accor Pannonia Hungary hotel group consists of six well-known hotel brands: Sofitel, Novotel, Mercure, Ibis, Etap and Pannonia Club. There are 18 hotels in total. Almost all of them offer MICE-service. Especially notable is the Novotel Budapest Congress with 4*. It is located in one of the best parks in Buda, 27 km from the airport and a 10-minute drive from the city centre. The hotel is connected by a special corridor with the complex Budapest Congress Centre, the largest of the nineteen rooms, which can accommodate 1755 people. The hotel offers 319 comfortable rooms. The hotels of such well-known groups as Kempinski, Inter-Continental, Marriott, Hilton, presented in Hungary also have good Congress opportunities. Among the Congress hotels that have appeared in Hungary in recent years is the Le Meridien Budapest 4*. The recently opened deluxe Four Seansons Hotel Grasham Palace with 179 rooms has quickly become a popular venue for a wide variety of events. The hotel is located in a unique location, exactly opposite the historic Chain Bridge in the Gresham Palace building. The total area of the congress premises is about 600 sq.m. Hotel “Eger & Park” in Eger, after a complete reconstruction, has become the largest and most modern congress center in northern Hungary. A conference hall with 800 seats, with all the necessary technical equipment, can be converted into several rooms, which allows you to easily hold section meetings here. The hotel is particularly attractive for the historic city of Eger with its unique atmosphere of elegant antiquity.

26 Large public centres also specialize in holding business meetings and presentations in Hungary. The ceremonial hall of the Hungarian Academy of Sciences, which seats 1,250 people, is often used for large press conferences and presentations. Near the airport there is a Medical University, business premises that can take from 10 to 1530 people. It constantly hosts conferences, presentations and exhibitions. It offers easy access to the city's business centre and traditional shopping areas. In a special situation are the participants of business events, if they are held in the Budapest ethnographic Museum, which is opposite the Parliament. It can accommodate up to 200 people. The business center REC Conference Centre Szentendre is distinguished by an original architectural solution in the old days. It is located 20 km North of Budapest, in the city-Museum of Szentendre. This place is in constant demand: being in an old provincial town, in nature, participants of business events can, when necessary, quickly reach the capital. Seventeen halls of the Congress and cultural center in Sopron can accommodate from 700 to 1,300 people. Among the congress complexes that have appeared in Hungary in recent years, the Balaton Congress Center in Kestehei and the Congress Center named after Franz Liszt in Sopron. In Debrecen, in the near future, the plenary room in the Congress Center has been expanded to 750 seats, and its capacity can be increased to 1150 seats. The exhibition area will increase to 1,500 square meters. m. It will also accommodate two halls with 350 seats each and one lecture hall with 100 seats. A hotel with 100 rooms, directly connected to the conference center, will also become part of the complex. The building will have a restaurant and cafe, as well as an underground garage and outdoor parking for public transport. The city has an international airport, which contributes to the development of Debrecen as a venue for conferences. The opening of a large business complex Millennium City Center in Budapest in 2007 solved the problem of shortage of places in the country for large-scale Congress and exhibition events. It can take 9760 people, which is almost 2000 thousand more than the largest Convention and exhibition center of Budapest HIT Stadium. Congress facilities are available in Hungary and some restaurants. Among them, for example, Vigado in Miskolc, Magnaskert and Gundel in Budapest. As for incentive tourism, Hungarian experts are developing very original programs, starting from the gastronomic traditions of the country. Among them is Hungarian Incentive Recipes, which offers about 20 options for spending time free from business events. Therefore, for example, “for a snack” we recommend a balloon ride above the Gellert Mountain to a height of 150 m or a visit to the Hungarian open-air museum. As the "main dish" in the menu, you can choose the "Knight's Tournament" in Visegrad or the "Trabant Rally" on the now popular cars in Europe, which were made in the GDR. Well, for a “dessert” an exquisite concert at the State Opera or a trip to the Park of Railway Relics is offered. All menus are contained in a special brochure, “The concise book of Hungarian Incentive recipes”, issued by the Hungarian Bureau of Congress. Many Hungarian hotels are both thermal and Spa hotels, which allows their guests to combine business activities with Wellness programs. In Hungary, festivals, historical games, carnivals, major sporting events, including the famous Formula 1, are constantly held - up to one hundred major events of this kind

27 per year. The annual series of Hungarian art festivals is usually opened by the two-week international “Budapest Spring Festival”. His repertoire includes concerts of classical and light music, theatrical performances. The May Festival at Balaton is very popular. Hungary does not belong to countries where the gambling business is developed. However, there are several casinos where people can try their luck. Three of them are located in the capital: Las Vegas in the Sofitel Atrium 5 * hotel, Tropicana on Vigado Street and Várkert, one of the most elegant European casinos located in a historical building. According to the WTO, the entire region of America (North, South, Central America, the island States and the Caribbean) is currently ranked the second place in the number of international arrivals of business tourists. This percentage is about 13% of the world. About 80% of all arrivals accounted for key destinations in North America-the USA, Canada and Mexico, about 26 million arrivals. Against the background of other states in the region, Canada and Mexico can be attributed to the secondary centers of business tourism. In this regard, the United States should be considered the main and, in fact, the only center in the region, and neighboring Canada and Mexico occupy a semi- peripheral position in the global structure of business tourism. According to WTO forecasts, the region of America in the field of international tourism will soon lose its position and will take the 3rd place by 2020; the same trends are emerging in the field of business tourism. This transformation will take place at the expense of the small role of South and Central America (as at present), as well as capacity building in the field of business tourism in Asia-Pacific countries and possibly Eastern Europe. At the same time, the US and Canada will slightly increase the number of business tourists. As in other regions, North America is dominated by intraregional business flows over Intercontinental business flows. From other regions, Western Europe and Asia-Pacific countries are the most popular. The undisputed leader in the field of business tourism in North America can be called the United States. They are the main "generator "and at the same time" recipient of international tourist flows in the American region in the field of business tourism. About 30% of all us tourists travel for business purposes, with about 50% of them - in their country, about 10% go to Canada, 7% - in the Caribbean, 8% - in Mexico, 10% - in Western Europe and 5% - inAsia-Pacific countries. At the same time, approximately 25- 30% of international tourists come to the United States for business purposes. They are mainly tourists from Western Europe and Asia-Pacific countries. The USA is the most profitable tourist destination in the world. The country's revenues from international tourism amounted to $65,1 billion in 2013. In the field of business tourism, the United States remains the world leader in terms of income. If we talk about their role in international tourism for business purposes, this destination can also be considered the most profitable. The meeting industry is one of the most growing segments of the entire U.S. tourism and hospitality industry. Based on the data of the Association of the Convention Bureau of the United States, in 2016 the number of meetings of different levels was about 1 million; they were attended by about 75 million people. It should be noted that these data take into account both international and domestic arrivals. As already mentioned, is dominated by business tourism in the country. In the United States, as in other countries, the arrival of domestic and

28 international business tourists minimize the "seasonal effect", including the hotel industry. In addition, sometimes the effect (shared revenues) from business travelers at hotels in the off-season exceeds the income from the classical tourists. This applies both to income in general and to income per tourist. International business tourists coming to the United States are concentrated in the North-East, South-East, South-West and southern parts of the country [15]. The Asia-Pacific region (APR) is ranked the 3rd place in the world in terms of arrivals of international business tourists. It accounts for about 15% of all tourist arrivals with business purposes in the world (about 30 million arrivals). The region is characterized by rapid growth of tourist arrivals for business purposes. Asia-Pacific plays a significant role in the world of business tourism. Thus, the entire region of Asia held about 14% of all international meetings (congresses and conferences) in 2013, while 95% of the meetings were held in 2 sub regions of Asia (South-East Asia and East Asia). Compared to the previous year, there was an increase in the number of meetings by 6,61%. This recovery reflects Asia's economic recovery in recent years, which has been accompanied by rapid growth in intraregional business arrivals. The economic turmoil experienced by most Asian countries in 1997-1998 was the cause of sharp declines in international meetings. However, by now the region has already reached the level of the mid-90s. Asia-Pacific region is competitive in the world market of business tourism. This region is constantly growing interest of business tourists in North America, Western Europe, and the active development of business tourism has received almost all the big cities in the region. The greatest interest in the region is the holding of various conventions (congresses, conferences, seminars, including scientific and other creative) of different levels (international, national, regional), as well as exhibitions. Within the region, there is fierce competition between destinations in attracting business tourists, in particular-to international events. Therefore, in 2016, the major organizers of the events held the study on assessment of competitive advantages of major cities of APRP, [18]. They identified 7 criteria (qualitative characteristics) for the selection of venues for international events (in this case in the Asia-Pacific region), then they ranked them by importance and then each destination was ranked according to these criteria. In conclusion, the organizers determined the destination-the leader according to all the criteria. On the totality of the features of the first three places are occupied by Singapore, Hong Kong and Tokyo. Singapore ranks first in terms of infrastructure development, accessibility and image of the region. The only drawback of the organizers considered the pricing policy of Singapore as a destination (6th place). Hong Kong, which occupies the second place in the aggregate, according to certain criteria, occupies mainly the second position, as well as in Singapore, the organizers noted the high prices of Hong Kong as a destination for international meetings (10th place). The third most popular destination – Tokyo, takes the first position in terms of service. However, Tokyo is ranked 11th among other destinations in terms of pricing. It is the most expensive destination of the Asia Pacific region. Other destinations occupy lower positions on a set of factors, but differ in some individual criteria. For example, Bangkok is considered the "cheapest" destination with the most attractive appearance for recreation and entertainment. Shanghai ranks first in terms of climate. Jakarta and Manila occupy the

29 last positions on a set of factors and, in particular, Manila ranks 11th in image and attractiveness for recreation and entertainment. The ranking of Asia-Pacific destinations by quality characteristics is partially confirmed by the data on the share of international events held in the territories. As can be seen from table 6, Singapore, Hong Kong and Tokyo are among the leading destinations in terms of the share of international meetings. The second significant group of the destination is Seoul, Beijing and Bangkok. When considering the share of countries in holding international meetings in their cities, Japan comes first, ahead of Singapore and Hong Kong (as a special region of China). China (without Hong Kong), Korea and Thailand are the second group of countries in terms of the share of international events held on their territory.

Table 6 Share of international meetings by cities and Asia-Pacific countriesin 2016 year

Rank City % of total Rank Country % of total 1 Singapore 10,67 1 Japan 18,13 2 Hong Kong 9,02 2 Singapore 10,67 3 Tokyo 7,08 3 Siangan 9,02 4 Seoul 5,57 4 China 7,92 5 Beijing 5,25 5 Korea 6,59 6 Bangkok 5,20 6 Thailand 6,59 7 Kuala 4,90 7 Malaysia 5,72 lumpur 8 Manila 4,35 8 Philippines 4,08 9 Shanghai 3,29 9 Indonesia 3,15 10 Taipei No data 10 Taiwan No data 11 Jakarta No data Note-Compiled according to the source [16]

Here are typical examples of the most important countries and cities in the region. Therefore, the leading position in the region is Singapore. In the world for international meetings, it occupies the 7th position, in the region the 1st position as a city and the 2nd position as a country. According to the survey of the organizers of international meetings, Singapore is the undisputed leader taken together of the 7 most capacious and important criteria for holding international meetings. The country has gained such popularity in international meetings (congresses, conferences and seminars) due to many factors. Singapore is the most economically developed country in South-East Asia. Singapore is a major international and regional center of trade, finance, marketing, services and development of new technologies, the most important transport and communication hub of Southeast Asia, accessible to most of the capitals of the region (located in a 6-hour flight radius from Tokyo, Seoul, Beijing, Hong Kong, Taipei, 30 Delhi). In air timetable,Singapore involved 61 international airline with weekly flights 3332 from 145 cities of the world. Singapore is a visa-free country. Singapore Changi airport was named the best airport by readers of ten international magazines, including Business Traveler (UK) and Conde Nast Traveler (UK) [8]. The port of Singapore is one of the largest ports in the world. It is the focal point of 250 shipping lines connecting Singapore with 600 ports and 123 cities around the world. High-quality roads and high- speed metro (MRT) connect different parts of the island. Singapore has a well-developed infrastructure for the development of all types of business tourism. Singapore is a leader in the Asia-Pacific region in the number and scope of exhibition and trade fair events, facilitated by the exhibition infrastructure. Many major foreign exhibition organizers have departments and offices in Singapore (Reed Exhibitions, Messe Dusseldorf). Singapore also offers a variety of incentive programs, including a visit to The Singapore Zoological garden, bird Park, as well as a visit to the Asian village on Sentosa Island. All information about all business events in Singapore is accumulated in the Convention Bureau (SECB), which is a non-profit division of the Singapore tourism Department (STB). This Convention Bureau is funded by the state to attract business from other countries. Thus, two factors played a major role in the fact that Singapore was visited by business travelers to the region: a favorable geographical position and high quality of labor. Data on the composition and "origin" of business tourists in Singapore are shown in table 7.

Table 7 Sectoral and territorial structure of inbound tourist flow with business purposes in Singapore, 2016 year

Country of origin Exhibitor Congresses and Congresses and Incentive conferences. conferences. tourists Associations Corporations Malaysia 18,6 13,7 10,0 0,2 Indonesia 12,9 9,5 6,5 2,7 Thailand 9,0 6,7 7,1 3,6 Australia 7,3 7,7 6,3 0,8 Japan 6,3 7,6 9,8 64,7 USA 5,4 6,1 11,4 0,9 Philippines 4,3 4,6 4,9 0,3 Korea 4,0 3,6 3,0 5,9 The Hong 3,9 5,7 8,2 2,3 Kong/China/ India 3,8 2,7 5,8 1,5 China 3,0 3,5 6,0 6,6 Britain 3,0 3,6 4,4 0,3 Taiwan 2,8 8,1 4,5 2,9 Vietnam 1,2 0,8 1,4 0,3 France 1,1 0,9 0,5 3,0 Germany 1,0 1,3 0,8 1,3

31 Asia 74,1 70,5 71,0 91,2 ASEAN 46,9 36,1 30,5 7,1 North and South 6,9 8,0 12,2 1,1 America Europe 9,8 11,5 8,9 6,5 Australia and 8,3 8,7 7,7 0,9 Oceania Africa 0,9 1,2 0,2 0,2 Note-Compiled according to the source [16]

By the number of participants in Singapore are leading exhibitions (50% of the total number of foreign business tourists in Singapore), followed by incentive participants (28%), the participants of conventions and congresses account for 22%, of which 7%-corporations and 15% - associations. By the number of events leading congresses and conferences, followed by exhibitions and incentives. More congresses and conferences are held by corporations. Table 7 shows the dominance of business tourists from Asia, mostly from ASEAN. In the exhibition segment and associations, as well as in the corporate segment, Malaysia is the leader, in incentive - Japan. This is followed by the Europe region with the main flow of business tourists from Germany and France. American tourists occupy the third place, although the undisputed leader in the number of corporate participants is the United States. The distribution of business tourists in Singapore is an indicator of the distribution of business tourists for the entire Asia-Pacific region and especially for the countries of East and South-East Asia. The second most important destination in the region is Hong Kong (by the number of international events). It is included in the list of the main countries of the world for international events. It is an outstanding financial, economic, trade and transport hub of Asia and the world. There is a well-developed infrastructure for the development of all types of business tourism (accommodation and meetings). The third largest and most developed country in the region is Japan. In the ranking table of Asia-Pacific countries by the number of international meetings held, Japan ranks first, ahead of Singapore and Hong Kong. When ranking destinations (cities) of the Asia - Pacific countries according to the same criterion, the Japanese capital Tokyo ranks third, behind Singapore and Hong Kong-when ranking by a set of quality characteristics. This is due to the weak position in the pricing policy. Tokyo is the most expensive of the main destinations in the region (11th place), although it occupies the first position in the region in the field of service and maintenance. In Japan, there are about 250 meeting facilities of different levels (exhibition and Convention centers). The government of Japan provides significant support to attract business tourists to the country. South Korea is also one of the leading countries in terms of business tourism development in the Asia-Pacific region. During 2014, there were about 426,000 business arrivals in Korea. The maximum number of business tourists was in the exhibition segment (about 75%), conferences and congresses were attended by about 10%, incentive events-about 15%. During the same period, 267 congresses and conferences and 93 exhibitions were held in Korea. The country has 71 specialized facilities for business events, 5 of them - the largest-are located in 5 major cities of Korea. The largest percentage of international events is held in the capital of Korea - Seoul. Seoul ranks the

32 4th place in the Asia-Pacific region in their number, behind Singapore, Hong Kong and Tokyo. Seoul ranks the 9th place in the world by this criterion. Here is the largest Congress and exhibition complex SOEH, consisting of 10 elements-buildings. It has all the conditions for living and full-time work. Seoul ranks only the 9th place in the region in terms of its quality characteristics, behind even Bangkok and Kuala Lumpur-due to its insufficiently known image and lack of entertainment. Summing up, we can state that in the functioning of the world Business Travel Centers there are both common features and regional features. Common features: ˗ the dominance of intra-regional trips; ˗ concentration of tourist flows with business purposes in major cities and agglomerations; ˗ the tendency to increase the share of business meetings in non-traditional locations; ˗ in the spring and autumn months, the schedule of exhibitions and conventions smoothes the flow of classic tourists throughout the year; ˗ development of state and public programs for the development of business tourism in the countries and promotion of its subjects. Specifics of Centers: ˗ Western Europe-predominance of international individual “classic business trips”; ˗ USA - the dominance of domestic business and the most significant role of trips to conferences and congresses and incentive events; leadership in the world by number of international meetings of associations (the Convention); the most pronounced dominance in the Centre of one of the state; ˗ a characteristic feature of the Asia-Pacific Center-belonging to it countries with a relatively low level of economic development. In addition, for the Center a distinct profile of business tourism is the organization of conferences, congresses and exhibitions, as well as business meetings in specialized Congress centers. Currently, of the three Centers of world business tourism (Western Europe, the United States, a number of APR countries), Western Europe plays a leading role, and the most dynamically developing center is Asia - Pacific. Undoubtedly, an important component of business tourism is the relationship between business tourists and business tourism professionals, who determine the specific algorithm for its organization. The business tourism market participants include a tour operator / travel agent, typical business tourism intermediaries (hotels, restaurants, transport carriers, etc.), meeting managers, direction managers, MICE organizers, MICE intermediaries and a convention bureau. A similar composition of participants creates a certain specificity of developing a tourism product and organizing trips to MICE events. Moreover, the organization of individual business trips is carried out according to the classical scheme: the client refers to the tour operator/travel agent, i.e. resembles the organization of trips for rest and recreation. As for the organization of trips to congresses and exhibitions, incentive trips, there are two directions abroad: ˗ appeal to the MICE-organizer; ˗ appeal to the tour operator/travel agent. Among the external factors affecting the development of business tourism, it should be called socio-economic (the degree of development of the country's economy, foreign economic activity, raising the level of education); political and legal (the degree

33 of openness of the economy, a stable situation in the country, the security of stay in the country) and technological (development of technology, the introduction of information technology). Among the internal factors, business tourism is more affected by the material and technical (the level of development of transport, catering, means of accommodation of tourists), as well as the qualification of personnel employed in this field. The most instructive experience of organizing business tourism in cities are Berlin and Dubai. These cities occupy a leading position in the world market of business tourism. The impact of business tourism on the economy of these cities is enormous. The importance of business tourism is explained not so much by the number of MICE- events, but by the amount of national income received from one event. Thus, the Congress tourism market of Berlin has a significant impact on the economy of the country: each new conference brings an income of 636850 euros, 181960 euros of tax and 10 new jobs. Analysis of the market of corporate events held in Berlin, using the calculation of elasticity, showed that the increase in the number of corporate events held by 1% leads to an increase in GDP by 1,4%, the amount of tax - by 1,2%, and the number of jobs - by about 1,7% [50].

1.3.Main problems of business tourism development in Kazakhstan

The share of Kazakhstan business tourism in 2017 amounted to $ 560 million: 80% of them were allocated for booking airline tickets, and only 20% - for additional services. 75-80% of the business tourism market falls on Almaty and Astana. Accordingly, the participants in this segment are focused on Almaty and Astana. Of the total number of visitors to Astana from foreign countries, more than half (51%) of all foreign guests indicate a business goal as the main reason for the trip. Sixty percent of world tourism comes from the meeting industry. 55-60% of the world's hotels are in the competence of business meetings. A business tourist - this may be an entrepreneur who runs a business or the holder of his own business. According to the international tourism institution, such tourists spend 3-4 times more than ordinary tourists ($ 1200 instead of $ 300). In general, around the world they show interest in them.In general, all over the world they show interest in them. The issue is a very broad segment of business tourism value. Therefore, the development of business tourism in Kazakhstan is very important. Paying attention to the following historical events, the holding of the International Summit, EXPO 2017, December 1-2, 2010 in Astana, many conferences, congresses, all this takes place throughout the year, all this suggests that Kazakhstan has all the conditions for the development of business tourism . Over the years of independence, Kazakhstan has developed political stability and economic stability. Kazakhstan is in a favorable geographical area and is adjacent to such giants as Russia and China, so it should be active in the highest stage of development and global politics.All conditions for business development are created in Kazakhstan, and we are open for cooperation in the exchange of qualifications and for all other

34 issues. Kazakhstan has great opportunities for the development of the tourism industry. The popularity of Kazakhstan in the Asian market is 80%, and in the European market-45%, in general, the period of stay of foreign guests in Kazakhstan is 1-3 days. The majority of foreign visitors (61%) are professional and holiday-makers (17%). Due to statistical information, the inflow of Kazakh tourists to the CIS countries amounted to 6,3%, and to countries outside the CIS-93,6%.In general, tourists of Kazakhstan make numerous trips to Kyrgyzstan and Russia among the CIS countries. Among the countries outside the CIS, the most popular are China, the second Turkey, the third United Arab Emirates, Germany, the Netherlands, Thailand. In 2015, Kazakh tourists visited 86 countries.The average stay of our tourists in the CIS countries is about 6 days, and in non-CIS countries-7 days. Among them, the share of leisure and walks was 74%, and the share of business trips-7%. Due to the slowdown in tourist flow to Kazakhstan, this indicator (in Europe decreased by 10%), as a result of which this indicator has not changed compared to last 2016, which amounts to 4.5 million tourists. In general, the majority of tourists traveling to Astana are business tourists, they make up 55%. Astana has a great social and economic potential and has all the opportunities to become a center of business tourism. One of the factors that give this breakthrough is the unique architectural forms of Astana, these objects are ready in all respects to the competition of the world level.Astana ranks the 56th place in the world in terms of joining the WTCF, and the 3rd in the CIS. Currently, according to the world tourism Federation, it was announced 55 cities, that are the most convenient for tourism: Amsterdam (Holland), Buenos Aires (Argentina), Hong Kong (China), Dubai (UAE), London (UK), Los Angeles (USA), Moscow (Russia), Minsk (Belarus), Ottawa (Canada), Rome (Italy), Seoul (Korea), Sofia (Bulgaria), Tel Aviv (Israel), etc. Astana fully complies with all conditions corresponding to entering the category of tourist cities. The young capital of Kazakhstan is very attractive for tourists, and this is a distinctive, well-developed infrastructure and unique architectural objects of the main city. It should also be noted that the geographically advantageous location of the main city. The history of Astana is very rich, a very high level of service and widely usage of modern technology. Currently, Astana is of great interest to tourists from all over the world. This is due to the very high rate of dynamics in development, at the moment the introduction of pilot architectural objects has a great impact on the infrastructure of the city and the city residents. Business tourism is very effective for the economy of Kazakhstan, but has several types of factors that have a negative impact on it: it is a problem of organization, economic problems, legal, scientific, technical, industrial and financial. The actual issues are: ˗ the backlog of the legal framework of the tourism sector, the weak involvement of Astana and Almaty in tourist integration, and the incomplete functioning of international tourism organizations. As for the shortcomings, they also are: accommodation, catering, social, transport and other services;

35 ˗ new progressive approach in the field of tourist services; there are significant shortcomings in the introduction of technology; ˗ lack of the necessary level of advertising of the tourism industry; a full-fledged scientific study of the tourism industry; a high level of training of staff serving tourists. The formation of good trends in the tourism industry requires a comprehensive solution to all the above problems. According to experts, the lack of high hotel infrastructure affects Kazakhstan's tourism. As for the placement of tourist facilities in the regions, these are Almaty and Astana, as well as East Kazakhstan, Almaty and Karaganda regions. Almaty and Astana are not only the center of large-scale government events, but also the center of excellent events.The lowest areas for visiting tourists are South Kazakhstan and Kyzylorda oblasts. The reason for this is the lack of high quality service, as well as the lack of hotel rooms. At present, in Kazakhstan there is a problem of rising prices for hotels, but their levels do not correspond to the international level. The dynamic development of the state economy and its integration into the world development is difficult without business tourism. In addition, it should develop in all directions. This circumstance creates very favorable relations, such as cultural and scientific ties. This is very important both locally and globally. In general, analyzing all the problems in the Republic of Kazakhstan there are great opportunities for the development of the tourism industry. In this regard, the first place is the capital of Astana, as well as the business center is the city of Almaty, the financial and economic center of the republic with a population of more than a million people, and the oil capital of Kazakhstan, Atyrau. Kazakhstan is located in the center of China and Russia in a favorable geopolitical zone, and has huge mineral resources; therefore, it has every opportunity to become a giant in business tourism. According to the Law of the Republic of Kazakhstan “On the Tourism Industry”, on July 13, 2001, many strategic projects for the development of the tourism industry were developed. The popularity of Kazakhstan in the World International Organizations is growing: it is the UN, OSCE, SCO, OIC, CSTO, and CES. Political stability, the normal dynamics of the economy, an open look and the desire for globalization are the main factors in mutually beneficial and safe business relations. So, we single out the most important problems and the state of business tourism in Kazakhstan as a whole: 1) lack of competent promotion and PR in the formation of a reliable positive image of the regions of the Republic of Kazakhstan for the development of inbound tourism. It is no coincidence that they say that "image is a lot of money, image is more than money." Need professional image tourism in business tourism. One of the key issues is the cross-cultural competence of businessmen and business tourism professionals, including PR employees, their knowledge of national and linguistic differences, the ability to communicate and negotiate with representatives of different cultures. In our turbulent time, business success depends not only on external factors (economics, politics, etc.), but also on people's understanding of cultural differences; 2) the lack of focused, highly professional, thought-out training at the state and interdepartmental levels. As before, our specialized tourism institutes prefer to

36 graduate "broad-based workers." In Western countries, it has long been understood that business tourism is a specific and delicate work with entrepreneurs; it is professional consulting and management. Therefore, special professional professionals should work in this industry, well-versed not only in the intricacies of organizing business trips, but also in the specifics of doing business, the needs of business travelers, the many nuances of organizing business events, the protocol and much more, the practical absence of institutions training specialists on business tourism in the regions of Kazakhstan; 3) lack of proper attention to participation in international exhibitions of the business tourism industry. An exhibition is a tool for promoting a business. In Kazakhstan, there is a general underestimation of the role of business tourism exhibitions in terms of Russian state policy and entrepreneurship. Moreover, the cost of achieving business contacts and results at such exhibitions is sometimes lower in 4-5 times than when using other types of activities, for example, advertising. Often, no more than 5-10% of the opportunities offered by MICE exhibitions are used; 4) The current procedure for issuing Kazakhstan visas to citizens of foreign countries who are safe in migration terms, not always contributing to the growth of inbound tourism; 5) Inconsistency in price and quality of hotel accommodation. Business tourism in Kazakhstan faces most other problems, has many risks and some corruption at the state level. Professional and business tourism combines elements of educational, professional, and business tourism with visiting objects of scientific and industrial interest. In the course of this, seminars, exchange of experience, business meetings, familiarization with technological innovations and inventions, and, possibly, personal participation of scientists in research and production can be organized. The business tourism market of Kazakhstan is characterized by active, but at the same time spontaneous development. The lack of reliable statistical information makes it impossible to analyze the leading markets of business tourism in Kazakhstan. However, even the available information, which is available today, allows us to draw a conclusion about the significant potential of the business tourism market in our country. The greatest development of this industry has reached in Astana and Almaty, which is explained, firstly, by the presence of the necessary infrastructure for business tourism activities, and secondly-transport accessibility. It is also important that these regions have great financial opportunities for the maintenance and development of this type of tourism. Along with these traditional tourist centers, regions are actively developing, which is certainly connected with the development of the economy outside the megacities. Such cities as Aktobe and Atyrau are in demand for business tourism. To use the potential of business tourism in Kazakhstan, it is necessary to create an appropriate infrastructure, effective state support, reliable statistical information, training of professional staff, as well as the formation of a favorable image of the country. The solution to the problems of business tourism development in Kazakhstan should be based on the support of the state and the initiative of business tourism

37 market entities. The importance and prospects of business tourism development in the economy necessitates state support and include: ˗ legislative; ˗ organizational (creation of the state program of step-by-step development and stimulation of business tourism); ˗ financial (equity financing of material and technical base of business tourism, support of investors investing in the development of business tourism); ˗ information (creation of an automated information system of data on the business tourism market). Especially important is the support of the state in creating an attractive image of Kazakhstan and training of qualified personnel. Without appropriate local initiative, it will be difficult to resolve quickly existing problems. The initiative on the part of business tourism market entities should be aimed at solving such problems as the discrepancy between the price and quality of the services provided the low level of customer service and staff qualifications. Based on the experience of these countries, we must draw the right conclusions, and only after that take confident steps towards achieving the set goal - developed and generating stable income for business tourism.

38 2.ASSESSMENT OF THE CURRENT STATE OF BUSINESS TOURISM IN THE REPUBLIC OF KAZAKHSTAN

2.1. Analysis of the tourist market development in the Republic of Kazakhstan

Kazakhstan is the ninth largest country in the world, which has everything from snow and glaciers to sand dunes and mountain peaks. It is unique in its range of natural landscapes, which are distinguished by an amazing variety, inexhaustible opportunities for recreation. Recently, there has been an increase in the interest of foreign tourists in the tourist attractions of the Republic of Kazakhstan. This phenomenon is caused, first of all, by the geographical location of the republic, great potential in organizing tourist attractive routes, etc. The tourist attractiveness of Kazakhstan is due to the presence of unique natural areas and reserves, historical and cultural attractions of a world level. The competent use of these resources contributes to the development of almost all types of tourism in the republic. Kazakhstan borders on five states, including Russia - 6,467 km in the north of the longest land border in the world. In the south - Turkmenistan - 380 km, Uzbekistan - 2,300 km and Kyrgyzstan - 980 km, in the east - with China - 1,460 km. The total length of land borders is 13,392.6 km. In the West it is washed by the Caspian Sea, in the southwest by the Aral Sea. The territory of Kazakhstan extends for 3000 km from the Caspian lowland in the west to the Altai mountains in the east and 1700 km from the West Siberian plain in the north to the Kyzylkum desert and the Tien Shan mountain system in the south.Based on its geographical location, Kazakhstan is equally distant both from the Pacific and Atlantic, and from the Indian and Northern Oceans. The distance from the oceans and the vast territory of the republic greatly affect its climate. Kazakhstan can go through the Caspian Sea to the countries of Azerbaijan, Iran, through the Volga River and the Volga- Don Canal to the Azov and Black Seas. Among the states that do not have direct access to the ocean, Kazakhstan is the largest. The national composition of Kazakhstan is diverse. Most of the population are Kazakhs (63,5%), Russian, Uzbek, Tatar, 75% of the population are Muslims, Christians, Jews and other Pro-Slavs. Economic indicators are considered as developing in the economy. The country's gross domestic product amounted to 11.8 trillion in 2018. dollars. The main direction of the economy is the extraction of raw materials in the fuel and energy sector, agriculture (husbandry).The main currency of the country is tenge. Kazakhstan declared its sovereignty in connection with the collapse of the USSR in December 16, 1991 and was recognized by the international community as an independent state. Since March 2, 1992 - a full member of the UN. It is also part of the Organization for Security and Cooperation in Europe, the Collective Security Treaty Organization, the Shanghai Cooperation Organization and several other international organizations, such as the Eurasian Economic Association. The first tourist organizations in Kazakhstan appeared in the 20-30s of the 20th century. In 1929, the first tourist trip was organized in Almaty. It was attended by 17

39 school teachers led by G.I. Beloglazov and F.L. Savina. The trip was started from the outskirts of Almaty on Issyk Lake (62 km).In 1930, at the Alma-Ata Museum of Local Lore, the regional division of the Proletarian Tourism and Excursions Society began to function. The first chairman V.G. Gorbunov was elected. This year, a group consisting of employees of the Almaty city telegraph and post office (16 people) (led by F.L. Savin) traveled to the coast of Medeo - Kokzhailau - Big Almaty Lake. A great contribution to this type of tourism was made by V. Zimin, A. Bergrin, D. Litvinov, H. Rakhimov, Beloglazov and others. In January 1931, the first skier trip was organized from Almaty under the leadership of Zimin. Eight riders of the National Horse Regiment joined the 8 skiers who took part in this campaign relay race “labor and defense”. They left Almaty, passing through the Kordai pass, passed the baton to the Kyrgyz team. In the same year, the first family of 10 members of the All-Union Society of Proletarian Tourism and Excursions was organized at the Museum of the Semirechenskaya Province in Almaty. On the initiative of amateur tourists, a mini-house for tourists was built in the Kuygensai (Gorelnik) tract in the Alatau floodplain. In 1936, the first Gorelnik campsite was built here. In 1938, in the Kokzhailau gorge (near Almaty), the first rally of Kazakhstan tourists took place. About 200 tourists took part in it.Since the beginning of 1943, the All-Union School of Trainers for Mountain Riflemen of the Soviet Army has been located at the Gorelnik campsite. After the war, the Gorelnik became the base for training skiers and climbers. For the purpose of active leisure for people, a tourist- excursion department was created in Kazakhstan in 1952 (TED). In 1961, the Republican station for young tourists was opened in Almaty. In 1960, under the Council of Trade Unions of the Republic of Kazakhstan, a republican tourism department was organized. In 1962, the tourist-excursion management was transformed into the Council on Tourism. In 1965, in Kazakhstan, republican and 5 regional (Alma-Ata, Karaganda, East Kazakhstan, Ural, Shymkent) tourist councils and a tour desk in each region were opened. In 1950-60, mountain tourism, mountaineering, and sports tourism began to develop in Alma-Ata. As a result, a group of tourist instructors formed. During these years, specialists S. Kuderin, U. Usenov, N. Dubitsky, V. G. Homullo and others made a great contribution to the development of tourism among schoolchildren and students. In 1958, Zimin was first awarded the title of USSR Master of Sports in Tourism. The Republican Tourism and Travel Council, established in 1970, had an impact on the further development of tourism. In 1971-75, the material base of tourism strengthened in Kazakhstan, the tourist and tourist organization increased, new tourist centers and hotels were put into operation. In 1978, an official presentation of excursions and tourism was held in Kazakhstan. 14 regional councils, 17 tourist bases and hotels, 26 travel agencies, excursions and 3 foreign tourist services bureaus, tourist car bases in the cities of Almaty, Uralsk, and Shymkent were created. The number of places in tourist bases and hotels has reached 7 thousand.

40 In 1988, there were significant changes in the structure of tourism. New tourist excursion associations have been established. During these years, the development of tourism in Kazakhstan is one of the priorities. In these years, N. Samoilenko, S. Abdenbaev, T. Zhezdibaev, A. Chukreev, O. Mazbayev, S. Erdauletov and others made a great contribution to the development of tourism in Kazakhstan. In Kazakhstan, since 1991, the tourism industry has moved to a new stage of development. In 1993, Kazakhstan became a member of the World Tourism Organization. This year, the National Tourism Industry Development Program was adopted. In 1997, a concept was developed to revive the historical centers of the Great Silk Road of the Republic of Kazakhstan, to develop the continuity of the cultural heritage of Turkic-speaking states, and a tourism development strategy as a whole. On June 13, 2001, the Law on Tourism in the Republic of Kazakhstan was adopted. It formulated questions of priority measures for the development of the tourism industry in the republic, licensing of tourism activities, etc. The natural, historical, geopolitical location of Kazakhstan makes it possible to use rationally tourist facilities, and requires development as one of the key points of the economy. In 2002, 430 tourist organizations, firms and various bureaus functioned in the republic. They serve 6 thousand people, including 1,500 professional guides. Travel companies of Kazakhstan cooperate with more than 80 countries of the world. 25 firms in Almaty and 5 regional centers carry out charter flights to India, Turkey, the United Arab Emirates, Pakistan, the Republic of Korea, Greece, Poland, etc. In Kazakhstan, all types of tourism are carried out (cognitive, entertaining, ethnic, ecology, health improvement, children’s, sports, hunting, fishing, horseback riding), etc. For this, more than 700 excursion routes have been established in Kazakhstan. They are served by 372 hotels of different categories with a total capacity of 33 thousand places in Kazakhstan. For example, in Almaty guests were offered to visit “Alatau”, “Kazakhstan”, “Dostyk”, “Esik”, “Otyrar”, “Astana”, “Ankara”, “Hyatt Regency Almaty”, "Intourist" and others. There are 30 travel agencies and 25 hotels in Astana. The largest of them are “Okan-Intercontinental Astana“; ”comfort - Hotel Astana“, ”Tourist“, ”Esil“, ”Zhibek Zholy“, “Altyn Dala”, etc. The tourist resources in Kazakhstan include natural and climatic, historical, socio- cultural, recreational facilities, including forms of tourist services, as well as other facilities that can meet the spiritual needs of tourists, contributing to the restoration of their efforts. They are cultural-cognitive, environmental, sports, social, religious, etc. and other types of tourism. Tourist facilities in Kazakhstan are divided into several groups: ˗ natural and recreational; ˗ historical-archaeological; ˗ religious (pilgrimage). Natural recreational objects include natural objects of the North Kazakhstan zone: Kokshetau, Borovoe, Bayanaul, Yereimentau, Markakol, Kazakhstan Altai, western, northern Tien Shan, Altynomel mountains, Zhetysu, Zaysan in the territory of East Kazakhstan, Ustyurt, Mugalzhar, Caspian basins in Western Kazakhstan, the Urals, Karkaraly, Kyzylarai, Bektauat, Ulytau, etc.

41 In addition, national parks and reserves of Almaty region are important for the development of tourism. They include the Ile-Alatau national Park, the gorge between the Turgen-Shamalgan rivers, settlements Turgen, Esik, Talgar, Almaty, Kaskelen, Shamalgan. The development of tourism in the national parks of Altyn-Emel, Kokshetau, and Burabay is supported by the state.In 9 state reserves in Kazakhstan, prerequisites have been created for the development of scientific and ecological tourism. Historical and archaeological sites have a special place in tourist excursion trips. Any objects of archaeological sites occupy an important place in tourist and excursion work. Among them are the Saki mounds in Semirechye, the settlement Talkhiz, Otrar in southern Kazakhstan, Sairam, Saraishyk in Western Kazakhstan, etc. Among the objects of archaeological and historical monuments that have survived to this day, mounds and mazars are of great importance. The monuments of the Bronze Age include rock petroglyphs. These include unique temples known as Tamgaly of Anirakai Mountain, Eshkiolmes Temple on the Koksu River, as well as drawings on stones in the Sholak, Kendyktas, and Bayanjurek mountains. Tourist sites include the Saki mounds of the 6th-3rd centuries BC, the burial chamber in the Besshatyr necropolis and the “Golden Man” in the clothes of the Saka troops, as well as the archaeological sites of the “Queen of Saki” found in Bergiel (Berel) mound in 2001 - 2002 Katon-Karagai region of the East Kazakhstan region. Modern tourist sites are the medieval cities of Turkestan, Otrar, Turbay, Kulan, Merke, Talhiz, Zharkent and others. Turkestan is the first capital of the Kazakh Khanate. The mausoleum of Khoja Akhmet Yassaui was built in it, Tauke, Tauke, Tauke, Tauekel, Zhangir, Esim, Abylay, Kazybek bi, who founded the Kazakh state, were buried in and around the mausoleum. In Kazakhstan, the medieval ancient cities of Otrar, Saraishyk, Sairam, etc. are attractive for tourists. Objects of religious (pilgrimage) tourism are more common in the territory of the republic. These include the holy city of Turkestan in the Turkic world, the mausoleum of Khoja Ahmed Yasawi, the Abab Arab mosque, the grave of Gaukhar-ana, the grave of Ali-kozh, and others. People come to holy places to repent to Allah. In addition, in the area of Kogam (Otrar district) there is a mausoleum of Arystan Bab, the burial ground of Ibrahim-ata, the mausoleum of Karashash ana, in the Turab region - the mausoleum of Ismail-ata. In Zhambyl region - the mausoleum of Aisha Bibi and the mausoleum of Karakhan, in the Kyzylorda region - the mausoleums of Artyk, Aitman, near Lake Balkhash-Tektau ata, Auez baksa and others. At the memorials and monuments, the Badge of Honor was shown for heroes, commanders on the way to the liberation struggle of Kazakh people. These include the monuments of Raiymbek and Karasai Batyr (Almaty region), Otegen Batyr in Kurgan (Zhambyl region), Eset Batyr in Aktobe, Agyntai and Karasai in Northern Kazakhstan, the monuments of Karakerei Kabanbai in Astana, etc. The mausoleums of Jochi and Alash Khan, the independence monument in Almaty, three dance monuments in Astana will be included as historical places. Among the valuable cultural monuments in the Kazakh history are the mausoleums of Kozy Korpesh – Bayan-Sulu, Enlik-Kebek, Ch.Valikhanov (Munaitpasuly), Sultan Beibarys,

42 Kurmangazy, D. Nurpeisova, Abai, Abylaikhan, Aliya and Manshuk, A. Imanov, I. Zhansugurov, S. Seifullin, M.Auezov etc. There are several tourist centers in beautiful and unique places of the republic. These include the Shymbulak ski base in the Zailiysky Alatau, the Bayanaul base on the shores of Lake Zhasybai in the Pavlodar region, the mountain forest Karkaralinsk in the Karaganda region, the Altai cape on the shore of the Bukhtarma reservoir in the East Kazakhstan region, “Ural ” in the area of Ural river in the city of Uralsk, a forest planting floodplain in the Kostanay region,“Оңтүстік” in the valley of Badam in South Kazakhstan region, the “Golden forest” in the mountains of Kokshetau. In Kazakhstan, there are enough zoological, botanical reserves that have a well- known tourist significance. These include: Almaty Nature Reserve (complex), Or Alatau (zoological), Tarbagatai (zoological), Karakiya-Karakol (zoological), Zerendinsky (zoological) reserves, Charyn Canyon (landscape - paleontological) and Shetenskaya Grove on the Charyn River (Botanical), silver coniferous forest (botanical), Mount Zhamanshyk (hemorphological), Aigaykum, Andikum (geomorphological), Walnut Grove (Botanical), Zaltyrkol (zoological), Ulytau (zoological), Betpakdala (zoological and hydrological) etc. Measures are being taken to form the tourist image of Kazakhstan and promote the national tourism product on the world market. To this end, Kazakhstan's participation in the largest international tourism exhibitions in Madrid, Berlin, Seoul, Tokyo and London is ensured, advertising videos are posted on the world's leading television channels. Along with this, the Kazakhstan International Tourism Exhibition KITF is held in Almaty. Today, Kazakhstan provides almost all types of tourism - educational, entertainment, ethnic, environmental, business. Business tourism in Kazakhstan is developing rapidly. In the region there are 27 tourist firms engaged in external and internal types of tourism. The number of tourist facilities has increased significantly in the region: 27 hotels, 5 sanatoriums, 7 recreation places, 9 children's health camps, 2 environmental clubs-organizers of tourism and 3 public associations. According to the results of 9 months of 2010, the total number of visitors increased in comparison with the same period of 2009 (2009 - 41543 people) by 2.06% and amounted to 42399 people. Including: domestic tourism grew by 10% and amounted to 40564 people (2009 - 36872 people), inbound tourism decreased by 28.1% and amounted to 1304 people (2009 - 1824 people), outbound tourism decreased by 81.35% and amounted to 531 people (2009 - 2847 people). The decline in the main indicators is due to the global economic situation. Tourist opportunities of Zhambyl region will be presented annually at international exhibitions in such cities as Seoul, Beijing, London, Berlin, Tokyo, Madrid. Advertising and information materials reflecting the tourist position of the region are produced annually. Three major investment projects have been developed in order to develop the tourism infrastructure and create a highly developed regional tourism industry, as well as to transform it into a sector of the economy containing milk. It's a ski resort "Koksai", tourist complex "Yurt hotel" and "Tau Samaly". Three investment projects were presented at the international business forum "ZHAMBYL-INVEST-2017". 43 Much attention is paid to the development of youth tourism. Every year, on the eve of World Tourism Day, an autumn tour is held, this year about 100 students from 14 city secondary schools, Zhambyl and Zhualynsky districts took part in it. Also, about 200 children from the Merken, Zhualynsky, Zhambyl districts and the city of Taraz took part in the regional and regional stages of the “My Homeland - Kazakhstan” expedition. These events were held in the Almaly Sai Gorge of the Zhambyl District. Zhambyl region is one of the most attractive regions for tourists, where there are unique monuments of tourist heritage, great opportunities for tourism development. Tourist organizations are growing from year to year in the region, and the quality of advertising and information products is increasing. Currently, all types of tourism are represented in the region. In the region, the priority areas for the development of tourist courses, both ecological, historical and educational, and extreme tourism, have been identified. The Republic of Kazakhstan is currently an active member of the Great Silk Road International Tourism Project. As noted above, the northern branch of the caravan passes from the territory of Kazakhstan. The main cities of that period were the cities of Otrar, Taraz, Turkestan, Ispidzhab. Currently, the regions associated with the Silk Road in Kazakhstan include the South Kazakhstan, Zhambyl, Kyzylorda, Almaty, Mangistau regions. According to its historical, geographical and cultural features, Zhambyl region occupies a special place among the regions. There are many attractive tourism resources in this region that develop tourism. The roads of the Great Silk Road Sairam - Taraz - Aksholak - Akyrtobe - Kulan – Merke- Shu - Aspara - Kordai passed through the Zhambyl region. On these roads are very interesting monuments of history and culture. The region is included in the “State program"the restoration of historical centers on the Great Silk Road, the preservation and development of the cultural heritage of the Turkic-speaking peoples, the creation of tourism infrastructure. Amazing natural resources, historical base, rich cultural heritage, 4 reserves with different flora and fauna, large reservoirs provide great opportunities for the development of cultural and educational, ecological tourism in Zhambyl region. Zhambyl region was founded in 1939 and is located on the territory of South Kazakhstan region. The geographical position is mostly flat. The total area of the region is 144,2 thousand square kilometers. Zhambyl region consists of 10 administrative zones: Zhambyl, Baizak, Zhualy, Talas, Sarysu, Moyinkum, Kordai, Shu, Merke and Ryskulov. The regional center is the city of Taraz, in addition, 3 cities of regional significance are Karatau, Zhanatas, Shu. Since January 1, 2010 1,043.8 thousand people have been living in the region. Amazing natural resources, historical base, rich cultural heritage, 4 reserves with different flora and fauna, large reservoirs provide great opportunities for the development of cultural and educational, ecological tourism in Zhambyl region. To assess the possibility of business tourism development in the country, we will analyze the situation in the Republic of Kazakhstan. The market of tourist services of the Republic of Kazakhstan consists of all spheres of service of rest and tourism. The main work on the creation and maintenance of tourist flows is carried out by the enterprises of the city. Currently, 1777 tourist companies with

44 a state license engage in tour operator and travel agent activities are registered in the Republic of Kazakhstan in 2014. Among them, 895 in Almaty, 231 in Astana, the rest in the regions of the country. Travel agencies in the country cover all types of tourism, 467 travel agencies (26.2%) work with the direction of entry, 1051 (59.1%) with departure, 259 (14.6%) with domestic tourism. Travel companies in the Republic of Kazakhstan provide the following services: ˗ reception and accommodation of tourists from near and far abroad; ˗ shopping tours to UAE, Turkey, China, Malaysia, Germany, etc.; ˗ visa service and other documents; ˗ excursion to the historical places of Kazakhstan; ˗ treatment and rest in boarding houses in Kazakhstan; ˗ sale of tickets. Indicators of tourism development is given in table 8 and showthe general state of tourism in the country.

Table 8 Tourism development indicators

Years Indicators Total added The list num- Average month- Number of Number of non - value of ser- ber of emplo- ly nominal wa- residents of resident visitors vices created yees in the ges of workers Kazakhstan arrived in the by tourism, tourism sec- employed in traveling Republic of billion tenge tor (on ave- tourism, tenge abroad Kazakhstan rage for the reporting period, thousand people) 1 2 3 4 5 6 2009 211,8 124,5 156252 4544440 5310582 2010 224,9 126,2 172700 5242643 4721456 2011 229,6 142,4 187358 6413943 4329848 2012 - 157,2 218382 7412300 4712657 2013 - 158,7 251687 8020400 5685132 2014 415,1 171,4 260136 9065579 6 163 204 2015 424,6 183,2 274502 10143710 6 841 085 2016 431,4 188,8 284390 10 449 972 6 332 734 2017 440,2 189,1 296789 10 587660 6 354 129 2018 447,8 191,3 312344 10 670210 6 378 962

As can be seen from the data in table 8, all indicators of tourism development indicators have a tendency to increase in the period under review. Much attention in the Republic of Kazakhstan is paid to the development of the tourism industry. The country has all types of tourism: outbound tourism, inbound tourism [7,8,9,10,11].

45 Table 9 The quantity of the served tourists by types of tourism

Years Total, person Among them inbound tourism outbound tourism domestic tourism 2012 8558181 584303 6 019 171 1954707 2013 10801151 519222 8 020 400 2261529 2014 12158622 586038 9 065 579 2507005 2015 13544442 679018 10 143 710 2721714 2016 14261337 681489 10 449 972 3129876 2017 14989421 690396 10 720 323 3487702 2018 15225189 711354 10 679 324 3834511

Table 9 shows that in 2017-2018 the number of tourists in the Republic of Kazakhstan increased by 1,01%. Outbound tourism is generally well developed from the country.The share of departing tourists accounts for a significant part of the annual number of tourists. Tourists mainly visit the shopping tours of China, Turkey, Malaysia, Thailand, the United Arab Emirates. A small part of tourists in Zhambyl region goes on vacation abroad, including Turkey. Thus, in 2018, the share of inbound tourism accounts for 4,8%, outbound tourism-70,1%, domestic tourism-25,1%. In 2018, this situation is associated with an increase in the share of interest in the civilization and culture of foreign countries. In the tourism industry, it is impossible to distinguish the hotel business, tourism business, as well as the restaurant business. The correct approach to the study of economic phenomena in the tourism industry is a prerequisite for improving the theory necessary to obtain new knowledge used in specific practice.

6,80%

22,80%

70,30%

outbound tourism domestic tourism arrival tourism

Figure 8. Served by travel agencies in 2014

46 4,80%

25,10%

70,10%

outbound tourism domestic tourism arrival tourism Figure 9. Served by travel agencies in 2018

The indicators characterizing the effectiveness of tourism include the total number of tourism companies, the total number of workers in the tourism industry, visitor services, the number of vouchers spent, the cost of vouchers spent, person-day stay in the country, income and expenses from the activities of tourist companies and agencies. Let’s consider the dynamics of each indicator, as well as compare their volume with indicators characterizing tourism at the republic level.

Table 10 Total number of travel companies, units

Years Total number of travel Including Zhambyl region Share of tourism companies in companies in the total Kazakhstan, units number of RK,% 2005 690 22 3,2 2006 605 15 2,5 2007 612 5 0,8 2008 713 13 1,8 2009 751 19 2,5 2010 846 21 2,4 2011 921 21 2,2 2012 1007 19 1,9 2013 1775 24 1,5 2014 1 994 27 1,6 2015 2 189 28 1,3 2016 1 777 30 1,7 2017 1801 41 2,2 2018 1812 39 2,1

From the data of table 10 it can be seen that the total number of firms in Kazakhstan increased from 690 units to 1812 units, or 1122 units.

47 There is an increase in the number of tourist companies in the Zhambyl region from 22 to 39 units, or 1.7 times. The share of tourism companies in the region in the total number in Kazakhstan is much lower, i.e. from 0.8 to 3.2%. The purpose of these travel agencies is to provide services to visitors on a prepared tour, tourist route. If we compare the number of services provided in Kazakhstan and the Zhambyl region as a whole, a low result is observed (table 11).

Table 11 Number of served visitors

Years Servicing visitors to Including Zhambyl Share of visitors to Zhambyl region the Republic of region, person in total number of visitors,% Kazakhstan, person 2005 146915 5630 3,8 2006 154502 6127 3,9 2007 171427 6797 3,96 2008 229014 7578 3,3 2009 292738 12237 4,2 2010 434943 4708 1,1 2011 520972 4286 0,8 2012 584303 1739 0,3 2013 519222 2299 0,4 2014 586038 1308 0,3 2015 679018 1290 0,2 2016 681489 1905 0,3 2017 690396 2347 0,3 2018 711354 2678 0,3

During the period under review, the number of tourists served in Kazakhstan increased by 564439 people, or 4.8 times, in the Zhambyl region in 2018, it fell to 2678 people or by 47.5%. Due to such a decrease in the number of visitors in the region, the number of visitors served varies from a total of 3.96 to 0.3 percent. We can talk about the effectiveness of tourism activities depending on the number of visitors in the region of person-days (table 12).

Table 12 The number of person-days of stay in the region

Years Number of person- Including Zhambyl Specific weight of person-days, days on arrival in region arriving to the oblast in the general of RK person-days of arrival,% 1 2 3 4 2005 429374 17136 3,9 2006 542544 18098 3,3 2007 429501 16191 3,7 2008 629213 18343 2,9 2009 629212 39690 6,3 2010 690688 9917 1,4

48 2011 970959 13749 1,4 2012 1484651 5615 0,3 2013 2437465 21706 0,9 2014 1744489 26972 1,5 2015 1935201 27340 1,4 2016 2064512 28734 1,4 2015 1935201 27340 1,4 2016 2064512 28734 1,4

Thus, during the period under consideration, the person-days in stay increased from 429374 to 2064512 days, i.e. 4.8 times. In the Zhambyl region, person-days in stay increased from 17,136 to 28,734 days, or by 67.7%. The proportion of person- days of stay in the region in the total amount of person-days of stay of the Republic of Kazakhstan is low. It varies from 0.3% to 6.3%. The number of visitors by purpose of outbound tourism is shown in thefollowing figure.

2,60% 16% 1%

80,40%

individually business-professional tourism transit

Figure 10. Number of visitors for outbound tourism purposes

10% 0,90%

19%

70,10%

individually business-professional tourism transit

Figure 11. Number of visitors for inbound tourism purposes

49 So, for general purposes in the structure of the number of visitors to inbound and outbound tourism, the largest weight is occupied by the number of tourists arriving and leaving the country with individual goals. Namely, 70.1% and 80.4%, and 18.6% fall on arrivals for official purposes to the country, and 16.7% leave the country for official purposes. Tourism in the Zhambyl region is very poorly developed compared to other regions. Mostly offered religious tours (to sacred places) and shopping tours to China, Turkey and the United Arab Emirates. The number of employees in the tourism industry of the region is only 156 people. And in 2018, the income from the activities of travel agencies and agencies in the Republic of Kazakhstan is equal to 578,124.0 thousand tenge. In the period under review, a change in such indicators is primarily due to poor advertising of the region’s tourism potential, low quality of services for new arrivals, lack of necessary amenities and appropriate infrastructure, as well as a lack of qualified tourism specialists.

2.2. Assessment of the infrastructure of the tourist market

The main component of the tourism industry is the tourism infrastructure. The tourism infrastructure includes all types of transport that serve tourists. It also includes retailers that offer a wide range of consumer goods to tourists. Public catering places also play a big role in the organization of tourism. The main thing is to accommodate tourists on accommodation facilities.

Table 13 Economic efficiency indicators of tourism

Indicators name Years Rate of 2013 2014 2015 2017 2018 change,% 1 4 5 6 7 8 10 1.Number of 1007 1775 1994 2189 1777 176,4 tourist firms, units 2. Served visitors, 8558181 10801151 12158622 13544442 14261337 166,6 persons 3.Day of departure 1484651 2437465 1744489 1935201 2064512 139,0 4. Average gross 157,2 158,7 171,4 183,2 188,8 120,1 amount of service for the reporting period, thousand people 5.Incomes of 294601,3 333152,2 387445,8 463899,1 542178,3 184,0 Kazakhstani tourism firms and agencies, KZT

50 During the period under review, the number of travel agencies in the country increased by 770 units or 76.4%, including the number of travel agencies in the region increased by 8 units, in 2018 the number of travel agencies amounted to 1.7% of their total in Kazakhstan. At the same time, the number of tourists in the region decreased and amounted to 33.8%. There are 188,8 people employed in the tourism industry. In 2018, income from travel agencies and agencies in the Republic of Kazakhstan was equal to 542178,3 thousand tenge. During the considered period the change of these indicators is primarily due to the poor advertising of the tourist potential of the region, low quality of service to tourists, lack of necessary comfort and adequate infrastructure, as well as lack of qualified tourism specialists. The Republic of Kazakhstan and tourists use different types of transport. Air transport, rail, suburban buses and other dry road transport (table 14)

Table 14 Traffic for visitors from 2018

Indicators Number In particular of By air By rail Intercity Other land Water serviced buses vehicles transport visitors 1.Outbound 10 449 9642788 793383 13801 - - tourism 972 2.Inbound 681489 664700 16734 42 13 - tourism 3.Domestic 3129876 11867 1318456 1799553 10 - tourism

Table 14 shows that in outbound tourism, 92.2% of visitors used air transport, 7.6% in railways, 13801 people used intercity buses, other land means (taxis, cars) were not used in outbound tourism, and inbound tourism by air transport accounted for 97.5%, while in domestic tourism, 0.4% used air transport, 57.5% used intercity buses. Usually, in organizing a tourist cluster, it is necessary to effectively organize the trade sector, which should deal with the sale of consumer goods, especially shoes, clothes, national souvenirs, etc. (table 15).

Table 15 The volume of retail trade for certain groups of goods by regions for 2018, mln. tg.

Include Indicators pharmaceuti clothing shoes leather Total cal products articles 1.Republic of 6 332 253,0 Kazakhstan, mln KZT 128 482 ,7 557 444,4 163 564,1 24 679,2 Akmola 181 754,7 3784,9 27125,9 2670,6 4989,6 51 Aktobe 431 659,3 5906,0 13881,5 5191,8 1804,3 Almaty 329 169,3 3706,2 20057,6 8600,6 3734,0 Atyrau 184 968,2 2340,8 6973,7 2417,6 1,7 West Kazakhstan 201 784,0 3463,3 13360,2 4377,6 287,9 Zhambyl 182 766,7 5777,7 7247,7 2157,9 157,9 Karaganda 561 507,5 11431,6 47328,8 17451,3 4273,0 Kostanai 228 349,8 6908,7 20429,2 6547,2 541,4 Kyzylorda 173 075,0 2277,4 8705,8 3788,8 96,4 Mangistau 145 239,1 972,7 14535,8 607,9 79,7 South Kazakhstan 351 223,4 20234,5 10790,8 5177,7 274,8 Pavlodar 290 268,5 6561,9 28665,0 6083,8 119,7 North Kazakhstan 158 340,3 7138,9 8485,5 3000,9 1069,1 East Kazakhstan 593 226,8 9774,7 104405,3 17091,0 666,5 Astana 677 590,7 15291,0 63823,1 28362,9 1674,0 Almaty 1 641329,6 22911,7 161628,1 50036,5 4909,0

As it is seen from the table 15, which mainly in the total number of retail sales for certain groups of goods in the Republic of Kazakhstan is clothing -8.8% and shoes-2.6%. The largest share of the retail trade in certain groups of goods by regions falls on the city of Almaty, that is 25.9 percent. As can be seen from the same table, the volume of services for the provision of food and drinks in the country for the reviewedperiod increased by 72.6%. The largest share of the volume of food and beverage services in the regions falls on two cities, that is Almaty- 21.1% aand Astana -11.4%.

Table 16 Volume of food and beverage services by regions, mln. tg.

Indicators names Years Rate of 2014 2015 2016 2017 2018 change,% Republic of 156 010,9 185 308,9 220 484,2 238 307,7 269 320,5 172,6 Kazakhstan Akmola 3 385,1 3 630,4 3 987,7 4 723, 5 7 203,4 2,1 есе Aktobe 5 798,4 7 819,6 9 648,7 9 907, 0 11 051,4 1,9 есе Almaty 3 801,8 4 925,9 9227,8 9 997 ,0 11 410,7 3,0 есе Atyrau 19 566,1 20 483,6 21 154,8 21 048 ,3 22 951,1 117,3 West Kazakhstan 10 023,3 14 025,8 15 155,4 11 345, 3 10 734,4 107,1 Zhambyl 3 961,0 4 915,1 4 777,1 5 818 ,9 6 621,4 167,1 Karaganda 7 804,2 10 120,1 11 614,4 13 001 ,9 14 578,1 186,8 Kostanai 4 051,1 4 889,8 4 752,2 5 130 ,2 5 585,1 137,8 Kyzylorda 6 907,8 7 357,4 8 107,1 11 934, 9 12 932,4 187,2 Mangistau 14 744,7 15 494,2 18 913,4 18 843 ,8 23 104,3 156,7 South Kazakhstan 10 973,2 13 695,3 14 242,4 18 671, 4 22 565,9 2,0 есе Pavlodar 2 698,3 3 681,1 8 545,3 7 202 ,8 8 618,9 3,2 есе North Kazakhstan 1 451,8 2 327,1 2 712,9 3 905 ,9 4 487,7 3,09 есе East Kazakhstan 15 744,9 14 071,2 16 861,8 19 652 ,8 19 808,1 125,8 Astana 11 045,5 16 069,7 20 721,3 24 397 ,9 30 673,4 2,7 есе Almaty 34 053,7 41 802,6 50 061,9 52 725, 3 56 994,1 167,3

52 Recently, hotel business has become one of the most profitable businesses in the world. It develops tourism with itself. And tourism, as an intersectoral complex of social and domestic infrastructure, plays a key role in the global economy and provides 1/10 of the world's national output. Therefore, it will become one of the most important factors in the future. International tourism has a great impact on the employment of the population. Currently, every 15th employee is working in the world of hotel business. Tourism accounts for about 7% of global capital, 5% of tax revenues and 11% of consumer costs. These figures, of course, are characterized by the direct economic effect of the tourism industry, particularly in the hotel industry. As the main source of the hotel is a tourist, the quality of hotel services should be different at the world level. Only then the hotel industry will prosper and continue its development. Tourism is one of the fastest growing, largest service sectors among the sectors of the economy. High rates of its development and large volumes of currency inflows have an active impact on various sectors of the economy, which contribute to the formation of a private tourist industry [2]. The modern hotel provides consumers not only services of accommodation and catering, but also the services such as transport, communications, entertainment, excursion services, medical, sports and beauty salons. In fact, hotel facilities are the main functions of the tourism and hospitality industry structure, as they offer composite hotel products prepared for consumers, which involves all elements and units of tourism and hospitality industry in preparing and promoting the product. In this connection, hotel industry or hotel business should be regarded as the major component of the tourism and hospitality industry. Hospitality is a hospitable welcome and respect for visitors, free reception and meals, or, in a word, being hospitable. Being hospitable is to offer visitors warm, calm and comfortable atmosphere. The hospitality industry incorporates a wide range of professional activities such astourism, hotel and restaurant business, catering, leisure and entertainment, conferences, seminars and various exhibitions, sports, museums, excursions, and hospitality related professional education. The hospitality industry is a complex, combined sphere of professional activity, the efforts of which are aimed at fulfilling the various needs of guests, including tourists and the local population In recent years, the hotel market has been characterized by an increase in supply and demand for accommodation. It is clear from the last quarter of the 20th century that hotel managers are increasingly troubled by competition. One of the main directions of the formation of the advantages of strategic competition in the hotel business, in contrast to its competitors, is a higher quality of services. Here, the main focus is to serve targeted customers that far exceed their expectations. Based on this, the consumer first selects the service provider, and then compares the services they provide with their expectations. One of the main components of the hospitality industry is the hotel. A hotel is a house in which there is property intended for receiving and spending the night, which can be taken for one of the following purposes: business, congress, leisure, entertainment, training, trade mission, ethnic, religious, health and sports goals. The main feature of the hotel is availability of rooms and additional services. Let’sconsider thekey performance indicators of the Zhambyl Hotel.

53 Table17 Key performance indicators of tourist accommodation facilities

Indicators Years Rate of 2014 2015 2016 2017 2018 change, % 1.Number of 1 494 1 642 1 526 1678 2056 137,6 objects, units 2.Number of 34 353 37 368 37 786 41197 49 128 143,0 rooms, units 3.The number of 2 548 868 2 845 832 3 026 227 3 307752 3 808 894 149,4 served visitors

4.Offered beds 5 629 201 7 085 020 7 560 134 7 186444 7 213 295 128,1

5.One-time bed 76 053 81 015 83 103 92053 109 094 143,4 capacity 6.Occupancy % 20,3 24,0 24,9 21,4 22,0 -

From table 17, the number of accommodation facilities increased by 562 units or 37,6%, respectively, the number of hotel rooms increased from 34,353 units to 49,128 units or 43,0%. The number of visitors increased from 2548868 to 3808894 thousand people or 1260026 thousand people. They were given up to 109094 beds. Despite this, the occupancy of all beds is 22,0%.

Table 18 Indicators of tourist location in the region in 2018

Indicators Number of all One-time bed Offered beds Occupancy,% rooms, units capacity 1 2 3 4 5 1. The Republic of 49 128 109 094 7 213 295 22,0 Kazakhstan 2.Zhambyl Oblast 1 154 1 878 127 887 19,5

3.Share in the total 2,3 1,7 1,8 - volume of RK,%

Table 18 shows that the hotel’s tourist accommodation is not very large. the total number of rooms in the total volume of the Republic of Kazakhstan is 2.3%, the proportion of the total number of beds provided in the total volume of the Republic of Kazakhstan is 1.8%, and their occupancy is 22.0%. Table 19 shows the distribution of accommodation facilities by ownership.

54 Table 19 Distribution of accommodation facilities by ownership in 2018

Indicators Total In the form of state In the form of Ownership of other number of ownership private property countries' legal objects, entities and citizens units 1. The Republic of 2 056 53 1 975 70 Kazakhstan 2.Zhambyl Oblast 124 - 128 - 3. Share in the total 6,0 - 6,5 - volume of RK,%

As can be seen from table 19, in Zhambyl region there are no objects of accommodation in the form of state property and property of other states and their legal entities and citizens; all objects have 124 units - in the form of private property. The share of this service in the total volume of Kazakhstan is 6,0%. In the following table, we group accommodation objects into categories.

Table 20 Distribution of objects by category

Indicators Years Rate of 2014 2015 2016 2017 2018 change,% 1.Number of objects, units 1494 1 642 1526 1 678 2056 100 2.5 * (5 star) 13 14 16 17 20 0,9 3.4 * (4 star) 43 53 51 53 61 2,9 4.3 * (3 star) 82 91 98 103 122 5,9 5.2 * (2 Star) 29 28 27 22 20 0,9 6.1 * (1 star) 25 27 24 17 19 0,9 7. No category 806 873 875 955 1184 57,5

As can be seen from table 20, the largest share in the total number of accommodation facilities in the country is occupied by objects without a category. In particular, they make up 57.5%. Table 21 analyzes the number of served visitors at accommodation facilities in 2018.

Table 21 Number of visitors served by category in placements

Indicators Years Rate of 2014 2015 2016 2017 2018 change, % 1.Number of served 2 548 868 2 845 832 3 026 227 3 307752 3 808 894 149,4 visitors, people

55 2.5 * (5 star) 245 378 305 189 349 173 451642 520 149 2,1 есе 3.4 * (4 star) 270 882 393 752 407 685 330808 424 379 156,6 4.3 * (3 star) 443 488 415 973 422 668 479542 524 237 118,2 5.2 * (2 Star) 150 479 131 494 156 705 77806 70 484 46,8 6.1 * (1 star) 37 340 55 874 65 740 54348 52 765 141,3 7. No category 1 058 992 1 204 394 1 283 262 1 464509 1 713 842 161,8 8.Other places of 342 309 339 156 340 994 449097 503 038 146,9 residence

As can be seen from table 21, the number of visitors served in 2018 has increased from 2548868 to 3808894 people, i.e. by 49,4%. The number of visitors of the 5- star hotels increased by 2.1 times while the number of visitors in 2-star hotels decreased by 53,2%. In 2018,424379 people stayed in 4- star hotelsthat is more and increased by 153497 people compared to 2012.

65,00%

29,80%

3,30% 0,20% 0,30% 0,90% 0,30%

Recreation and rest Other goals

Visiting relativesBusiness and... and profes... Shopping in shops Therapeutic and the... Religion and Pilgri...

Figure 12. Distribution of visitors to places of destination

The number of consumers of hotel services without a category is increasing annually. So in 2018, 1713842 people applied for hotel services without a category, which is 44.9% of the number of visitors served. Despite the availability of accommodation facilities, all this indicates the underdevelopment of the industry and the rise in prices of services for hotels. The distribution of visitors by location according to the purpose of the trip can be seen in Figure 12. According to the figure, 65% of visitors consumed location services for business and professional purposes, 29,8% for vacation and recreation purposes, 3,3% for visits to relatives and friends. Thus, the infrastructure of the tourism industry requires further improvement in the Zhambyl region. The country's government and local executive bodies should invest additional funds in its development

56 The structure of business trips is dominated by visits with individual goals and corporate interests. They account for 33,6% and 30% of all trips. The percentage of visits relating to attendance at conferences, exhibitions and trade fairs, considerably less than 8% and 2,3% (Figure13).

8% 2,30%

30% corporate trips private business trips attend conferences visiting exhibitions and trade fairs

33,60%

Figure 13. Business trip structure in Kazakhstan

Business tourism, the business travel industry integrates the meeting industry (MICE). MICE is an abbreviation of several main directions, starting with the first letter of each word: ˗ Meetings (meetings, strategic, cycle meetings, negotiations, presentations); ˗ Incentives - teambuilding and motivational tours for employees. ˗ Conferences / Conventions (conferences, forums, congresses); ˗ Exhibitions / Events (exhibition, event tourism, corporate events). The main tasks in the MICE industry include the organization of sectoral and inter- sectoral relations at the city, regional, interregional, international level. In addition, the industry provides a wide range of different services – dissemination and promotion of information, development of entertainment programs, technical support of the meeting. The structure of the MICE industry is determined by specialists who can be divided into 2 main components: service and content. The first unites companies serving meetings (hotels, tourist, transport companies and places of sale (exhibition complexes and halls). The second contains companies and consultants who develop the content of the meetings.

70% 70%

60%

50% 45% 40% Individual tourism 40% Congress tourism 30% Exhibition tourism 20% 14% Incentive tourism 11% 10% 10% 3% 5% 0% World Tourism Kazakhstan

Figure 14. The structure of the business tourism market

57 When comparing world and Kazakhstan business tourism, it should be noted that of all types of business travel, exhibition tourism in Kazakhstan is becoming the most actively developing. Its share in the domestic market is 40%, and in the world market only 11%. The most popular individual tourism in the world (70%) in Kazakhstan, it ranks first, but its share was only 45%. Incentive tourism is developing rapidly in Kazakhstan, the share of which is 5% and is increasing annually. The number of international business events held in Kazakhstan in 2018 is shown in Figure 15. The largest share of international business events in Kazakhstan comes from forums - 34,6%, conferences – 29,4%, congresses - 12%, exhibitions - 24%. About 57,8% of international events are held in Astana.

24% 34,60% forums congresses conferences exhibitions

29,40% 12%

Figure 15. Number of international business events held in Kazakhstan in 2018

29% 32%

hotels transport goods feed cultural-excursion services

2% business event 9% 3%

25%

Figure 16. The structure of income from business tourism in the provision of services in Kazakhstan, %

As can be seen from figure 16, 32% of income from business tourism is income from hotels, 25% from food, 29% from business events, 2% from transport, 9% from cultural and excursion services, 3% from the sale of goods. The sphere of tourism and the activities of tourist firms is a new industry, so this direction requires its further development and support from the state.In order to

58 develop the tourism industry and support individual entrepreneurs operating in the field of tourism, the resolution of the regional akimat dated April 17, 2007 No. 120, and the decision of the regional maslikhat dated June 16, 2006 No. 17-9 adopted the “Program for the development of the tourism industry in Zhambyl region for 2006 - 2008 ”, Decree of the Government of the Republic of Kazakhstan dated May 31, 2019 No. 360“ State program for the development of the tourism industry of the Republic of Kazakhstan for 2019 - 2025 ” [14]. In order to implement the program for the development of promising areas of the tourism industry of the Republic of Kazakhstan for 2010-2014, approved by Decree of the Government of the Republic of Kazakhstan dated October 11, 2010 No. 1048, a Strategic Plan for the Management of Tourism, Physical Culture and Sports of the Akimat of Zhambyl Region for 2011-2015 has been developed. Due to the realization of the action plan for the implementation of the program at the proper level, in 2017 compared with 2016, there is a positive trend in the development of the tourism industry in all types of tourism, in total 12,278 visitors were served, the volume of which amounted to$ 68.2 million. The number of tourist facilities increased by 3 tourist bases (Zhualynsky district “Tau Samaly”, “Sunny Beach”, “Baiterek”), 17 tourist companies, 2 vacation spots (“Ayu Tropic”, “Esil” in the region of Taraz), sanatorium - preventive institutions, hotels. In total, services are provided by 30 tourist organizations, 5 recreation places, 2 environmental clubs involved in organizing children's tourism and mountaineering, 3 public associations. Conducted seminars, conferences, conferences, contests were covered in the regional media. In the first 9 months of 2015 the number of visitors decreased by 2,1% compared to the same period last year.Most visitors travelled for private purposes (53,8%).The volume of accommodation services compared to the same period last year increased by 28% during the reporting period. Thus, at the end of January - September 2015, the number of non - resident visitors increased by 9% (in January – September 2014 - 1,366 visitors, in January – September 2015-1,489 people), and by residents decreased by 2,3% (in January - September 2014 - 70,343 people, in January – September 2015-68,718 people). The number of accommodation places engaged in the placement of visitors in the region amounted to 122 units, of which accommodation is designed for 1487 rooms, their one-time capacity is 2480 beds. They were served 70207 people and that made 644,5 mln.tenge. Today in the region there are 42 tourist firms, 1 Yurt town, 1 health complex, 5 recreation centers, 10 children's health camps, 5 sanatoriums with unique therapeutic mud and mineral waters and recovery centre. In the Zhambyl region for 9 months of 2017, the total volume of services rendered in the tourism sector amounted to 644.5 million tenge. In order to develop tourism in the region in 2017, the following events were held: ˗ A meeting on the construction of 8 roadside complexes along the international transit corridor “Western Europe-Western China”; ˗ Fair"KITF-2015" participation in the national international tourism in Almaty;

59 ˗ Celebration of the 550th anniversary of the Kazakh khanate; expedition “Kazakh khandygynyn that taken LCEs" together with the students of the college №12 and the newspaper “Zhambyl-Tarazwas organized”; ˗ A seminar on the prevention of parasitic diseases to travel companies (together with the Department of consumer protection of Zhambyl region); ˗ A meeting on the theme "Development of tourism in Zhambyl region"on August 26, 2015 (together with tourist organizations of the region). During the meeting, the points of the national plan "100 concrete steps" related to tourism were analyzed, the potential of the market development was considered; ˗ A meeting, organized by the National chamber of Zhambyl region on September 10, 2015.It attracts the local producers to the celebration of the 550th anniversary of the Kazakh khanate; ˗ An information tour of historical and cultural places "Tugan olkem-kanday korkem"in the framework of the "550th anniversary of the Kazakh khanate" on September 13, 2015 (Baikadam Rural district of Sarysu district of Zhambyl region); ˗ Atourist fair "Silk Road Fair” onSeptember 18-19, 2015 in Shymkent. Here, a Memorandum of cooperation between the tour companies of Zhambyl region and JSC “National company “Astana EXPO – 2017” was signed in order to implement the program“Recommended by EXPO-2017”; ˗ Participation in the first international conference in Kazakhstan "Social tourism: accessibility for all" on September 23, 2015 (Aruzhan Public Foundation in cooperation with the Moscow branch of the Luxembourg Foundation with the participation of the Department of tourism industry); ˗ Participation in the tourist exhibition "Astana Leisure 2015",on September 24-26 2015 in the exhibition complex "Stern" Astana; ˗ Participation in the Republican historical and cultural expedition "ULY DALA ELI" dedicated to the 550th anniversary of the Kazakh khanate (together with the Assembly of people of Kazakhstan of Zhambyl region in the Northern and Central directions of Zhambyl region); ˗ One-day tour of the tourism facilities of Zhambyl region for representatives of 12 Kazakhstan tourist Association, media and travel agencies in Zhambyl region on November 26 2016 in Almaty.; ˗ A presentation on tourism of the Republic of Belarusfor travel agencies of the region on December 10, 2015; ˗ A meeting with producers, tour operators, representatives of the hotel industry of South Kazakhstan, Zhambyl, Kyzylorda regions on December 18, 2015 in Shymkent.Herea Memorandum of cooperation of tourist company "Zhambyl Service" with the national company was signed; ˗ For 11 months of 2015, within the framework of the state program"Business road map 2020", the Regional coordination Council summed up the results of the program" Business road map 2020 " for a total of 1.48 billion tenge. According to the program "Business road map-2020" in Kostanay region 11 investment projects for the construction of hotels were approved , 1-for the purchase of real estate and 2-for the restoration.

60 Tourist routes are developed in Zhambyl region.In particular, with a tourist company"TARAZ TRAVEL"excursion to Museum - reserve" the pearl of ancient Taraz"," mystery of Akyrtas"," underground roads"," Aksu Zhabagly "and routes of the tour" Great silk road".The tour route of the tourist center "Golden Caravan":" Ancient Taraz today"," architectural monuments"," mysteries of Akyrtas","from snowy peaks to sandy ridges". Route "Koksay" of the Kazakh aul of travel Agency "Taraz Damu". Seminars, round tables, conferences are regularly held, where problems that need to be addressed, prospects for the development of tourism are considered. The events and news on the development of tourism in the region are regularly covered in the regional and republican media. Solving the effective tasks of tourism development will undoubtedly contribute to the significant development of domestic tourism, an increase in foreign tourists to our region and foreign exchange earnings in the regional economy and tax payments to the budget of various levels, as well as the development of industries and employment, given the multiplier effect of tourism.

61 3.DIRECTIONS OF IMPROVEMENT OF BUSINESS TOURISM DEVELOPMENT IN KAZAKHSTAN

3.1.Formation of business tourism development strategy in the country

To improve the development of business tourism in Kazakhstan, it is proposed to consider the strategy for the development of integrated tourism as the main component of business tourism in Kazakhstan. Identification of the main areas and directions involved in its implementation for formulation a strategy for developing the business tourism market in Kazakhstan: Economic: ˗ achievement of economic effect from the business tourism market; ˗ attracting investments in the development of business tourism; ˗ improving the country's competitiveness in the world tourism market; ˗ determination and development of additional areas of tourism, taking into account the peculiarities of the country with a joint approach to business tourism. Social: ˗ creation of additional jobs for the population; ˗ improving the quality of life of the population; ˗ expansion of information space, exchange of knowledge and experience. Legal: ˗ effective regulation of the tourism industry; ˗ creation of conditions for safe accommodation of tourists. Scientific and technical: ˗ marketing research in the field of tourism services; ˗ development of research projects for the effective development and promotion of business tourism in the country; ˗ improving the level of professional skills of participants in the tourism market. Organizational and technical: ˗ development of material and technical base; ˗ availability of travel companies. For the development of business tourism in the country, it is necessary to begin the formation of the infrastructure of the industry. For its implementation it is necessary to carry out the following actions: 1. 1.Improving the quality of services and increasing the capacity of hotels, sanatoriums, other accommodation (increasing the number of mini-hotels). 2. Development of roadside infrastructure (cafes, shops, motels). 3. Reconstruction of historical and cultural monuments (to combine business meetings with a cheap excursion program). 4. Development of public catering network (first of all, by increasing and increasing the level of availability of restaurants with a national or other obvious concept, as well as a modern format of fast food). 5. Activation of marketing policy (centralized events, expansion of the list of promotional products, participation of representatives of Kazakhstan in the main tourist forums, conferences, exhibitions, information support).

62 With this purpose, it is necessary to plan and organize the development of the most attractive and profitable investment projects in the country, to build issues of business tourism and infrastructure related industries. The implementation of these measures requires large amounts of investment, in the preparation and support activities (infrastructure, promotion) should be a large role of budgetary funds in financing. The task of the city government is to create favorable conditions for tourists. The contribution of extrabudgetary sources of funding should be a priority. To do this, the government needs: 1. Implementation of an active information policy and bringing the list of effective projects and information on investment opportunities in the country to potential investors. 2. Compilation of a database of unused objects of the tourist complex (sanatoriums, boarding houses, pioneer camps, recreation centers). 3. Consideration of opportunities and creation of conditions for financing the construction of business tourism infrastructure at the expense of budgetary funds. 4. To take measures to strengthen the partnership of institutions with organizations of tourism business and culture in order to ensure an integrated approach to the preservation of cultural heritage, the development of national industry and cultural traditions, addressing the sustainable development of state territories, improving the architectural appearance of the state environment, the development of business tourism. 5. Implementation of ongoing monitoring and evaluation of investment projects. Businessmen and specialists, representatives of various firms and organizations arrive in the country on incentive tourism, it is possible to offer creation of the autonomous non-profit organization "Congress Bureau" for expansion of business contacts with tourism, rest and acquaintance with history and culture of the region. One of the events of business tourism is EXPO-2017, that was held in Astana. EXPO-2017 in Astana was the first international exhibition in the Central Asian region and CIS countries. EXPO exhibition in Astana lasted 3 months - from June 10 to September 10, 2017. It was attended by about 100 countries and about 10 international organizations. More than 5 million people visited the exhibition. This was a big step towards the international movement of Kazakhstan. Expo-2017 served as an additional incentive for the economic and infrastructure development of the capital, as well as the Republic as a whole. A special impetus will be given to the development of small and medium-sized businesses in the capital and adjacent regions, primarily in the field of public services, hotel business and domestic tourism. This measure will significantly attract private investment in the construction of exhibition facilities and infrastructure of the capital, create tens of thousands of jobs to serve them, develop domestic tourism and increase the flow of foreign tourists to the country, accumulate economic and social resources of Kazakhstan. In addition to attracting investment in the construction of exhibition facilities, the expected economic effect is that the facilities that were built within the framework of the

63 EXPO allow Kazakhstan and its capital to be considered as a major international, exhibition and information and presentation platform in the future. The exhibition introduces the world to the multinational culture, ancient history, art, traditions, hospitality of Kazakhstan, increases the tourist attractiveness and popularity of Kazakhstan to the world community. The cultural development of the capital is also of great importance. During the EXPO in Astana, music of different cultures of the world was heard. Concerts, national days and other entertainment events were held daily on the territory of the exhibition. EXPO-2017 is the largest non-profit project that will become a powerful catalyst for the development of the region and the country as a whole. At the same time, the income from investments in construction, tourism infrastructure, and the hotel industry puts the intellectual heritage of the exhibition to a new level, a new impulse to the further progressive growth of the beautiful capital and the realization of even more ambitious goals. In addition, Kazakhstani people can once again be convinced of their strengths and capabilities of their country. During the exhibition EXPO-2017, all states demonstrate their best technological, scientific and cultural achievements. They form a new agenda for global development. Millions of people from dozens of countries come to such events from all over the world. Astana's victory in the competition is not accidental. As the head of state said, firstly, our city has become a worthy center for the adoption of world-class events. Secondly, the choice of capital underlines the high appreciation of our state and the prospects for its development and development of the entire Eurasian region. Thirdly, the relevance of our proposed topic - "Energy of the Future" helped to win. And finally, the main thing - the choice of Astana was the result of the efforts of the whole Kazakh people. The EXPO-2017 exhibition in Astana became one of the best brands in the capital of the Republic of Kazakhstan and the most beautiful object.

3.2 Creation of a system for promoting the country's tourism potential in the domestic and international markets.

In terms of the effectiveness of marketing and branding, the WEF Travel and Tourism Competitiveness Index, Kazakhstan is only onthe 102nd place. The indicators of digital demand very clearly reflect the low activity of marketing and promoting Kazakhstan as a tourism destination: in terms of the number of online searches for cultural and entertainment tourism, Kazakhstan is onthe 105th place (3 points out of 100), nature tourism - on the 118th place (2 points out of 100). According to Bloom Consulting's Country Brand Ranking 2017 Tourism Edition, the country’s tourist brand ranking, Kazakhstan was on the 98th place in 2017 (-3 positions compared to last year), behindAzerbaijan (the 90th place) and Georgia (the79th place). According to the 2012-2013 Country Brand Index rating, Future Brand Kazakhstan was included in the TOP-15 of the leading country brands of the future. Future Brand notes Kazakhstan’s leadership in the region: “if the government of Kazakhstan continues

64 to implement policies for promoting economic competitiveness, and at the same time promoting national identity and a stable, representative governance system, this rising star could become a very important country.” Among political factors, the factor of political stability has the greatest influence on tourism, which is not a driving force for tourism development, but is a prerequisite for it. Kazakhstan’s internal political stability and security, which is preserved as a result of a targeted state policy, contributes to the formation of a positive international image of the country and to its growth in the international arena. Moreover, it is not necessary to have a long experience in building the image of a particular state. It is quite possible for a country to form its brand in a relatively short time, if there is a clear strategy on how to do this, and the necessary funds are allocated for this purpose. Every year Kazakhstan is becoming more recognizable for new tourists from countries that generate the main tourist flows to the country. The role of the state in ensuring the participation of Kazakhstani tour operators at major international tourism fairs such as ITB Berlin, WTM London, ITE Hong Kong, MITT Moscow and others is important here. Since 2018, Kazakhstan has been participating in 17 international exhibitions (from 2012 to 2017, the number of exhibitions ranged from 5 to 7), while, for example, Russia participates in about 30 international fairs, Turkey in about 50. World-famous tourist destinations such as Spain, France, the USA, Turkey, Egypt, and now our closest neighbors and competitors Georgia and Uzbekistan, are regular participants in all kinds of exhibitions with impressive pavilions ranging in size from 100 sq.m. and more. It is important to note that in addition to major world exhibitions, “niche” and regional exhibitions focused on a specific tourist product (mountain tourism, bird watching, hunting and fishing, etc.) or a border region from the list of target markets are of great importance.Today, the Internet in tourism not only performs the function of transmitting and exchanging information, but also forms a new system of promotion and marketing, which directly connects end consumers with tourism service providers. Kazakhstan currently occupies the 90th place in the WEF ranking on the use of information and communication technologies, which is also associated with the low activity of the business environment in introducing new technologies in its work, including in the tourism sector (innovative business activity 7%). Thus, supporting tourism industry participants in technological development and assisting in the digitalization of the industry can give a significant impetus to the development of domestic and inbound tourism by increasing the awareness of potential tourists about tourist offers and the convenience and simplicity of the booking and tour package purchase processes. World Tourism Barometer - the analytical center of the World Tourism Organization shows that in 2017, more than 1.3 billion international trips were made. This is 7% more than in the previous year. Experts of the Skift information platform agree that 2018 was marked by the personalization of online travel with the help of artificial intelligence, VR and digital assistants. According to the forecast of the international research IDC agency, the revenues from the implementation of cognitive technologies and artificial intelligence systems will exceed $ 46 billion by 2020. For comparison, in 2017 they amounted to $ 12.5

65 billion. In the tourism business, the demand for them is great, and the benefits are undeniable: data arrays increase to alarming proportions and become not a competitive advantage, but a burden. Customers still prefer personal or seemingly appealing treatment. According to InterGlobeTechnologies, the business process management company for the travel industry, personalized offers on online travel agency sites (OTA) are pushing 50% of users to buy. The Concept for the Development of the Tourism Industry of the Republic of Kazakhstan, adopted in 2017, until 2023 formed a unified institutional framework, consolidated the strategic vision and main priorities for the further development of the competitive tourism industry of the Republic of Kazakhstan. Over the past period, significant work has been done to implement the Concept. A separate department for tourism development has been created as part of the Ministry; according to the best practices of developed countries, the national office of JSC “NC Kazakh Tourism” has been established, which is working to increase and promote the national tourist image. The government of the Republic of Kazakhstan has adopted infrastructure development programs for Astana and the Shchuchinsk-Borovskoy resort area, electronic visas are being introduced, citizens of about 65 countries have been granted the right to visa-free travel to Kazakhstan for tourism purposes, a 72-hour visa- free transit has been introduced for citizens of China and India. At the same time, today the tourism industry is at the junction of more than 30 industries that exist independently, and their contribution to the development of tourism is insufficient. In this regard, it is necessary to consolidate the activities of many related industries that have the greatest impact on the formation of the tourism industry, and ensure coordination of financial, human, infrastructural and institutional resources to increase the share of tourism in GDP. As a whole, factors favorable to the development of the tourism industry, other things being equal, should provide a solution to the existing complex of problems in the industry and designate Kazakhstan on the world tourist map. At the same time, the key problems at the level of state administration of the industry are the underdeveloped infrastructure, the lack of an integrated marketing strategy to promote Kazakhstan as a tourist destination. The formation of the country tourism brand of Kazakhstan and the creation of its positive image is a powerful tool to increase the attractiveness of the country's tourism potential. A country with a brand not only attracts tourists, its national business and goods receive strong support in the competition. In this regard, the formation of a positive tourist image of Kazakhstan in the international market is an important element in increasing its competitiveness. Today, 146 countries from 195 countries of the world have their own tourist brand, which characterizes the characteristics of the country, national traditions, historical uniqueness, ideology and others, create a holistic image, on the basis of which a specific country is identified among the entire world community. To increase the aggregate intangible assessment of the country on the international market, a country tourism brand of Kazakhstan and an integrated and centralized system of its promotion will be created. The tourism brand of Kazakhstan will be formed on the

66 basis of national characteristics and original culture, peacefulness and hospitality of the Kazakh people. The single country brand manager will be JSC “NC Kazakh Tourism”, which will carry out advertising campaigns and promotions aimed at promoting the country tourism brand within the country and abroad. At the same time, a number of interested state bodies and organizations will participate in the promotion of the country tourism brand:

1) promotion abroad - Ministry of Culture and Sports, Foreign Affairs, Assembly of the People of Kazakhstan, JSC “Air Astana”, JSC“NCKazakh Invest”, JSC “NCKazakh Export ”, AIFC, JSC“ NC Astana EXPO-2017", the Chamber of Foreign Trade of Kazakhstan, akimats of cities and regions; 2) for promotion within the country - the Ministry of Information and Communication, Education and Science, the National Chamber of Entrepreneurs of the Republic of Kazakhstan Atameken, JSC “NC KTZh ”, JSC“ Qazaq Air ”, JSC “ NC KazMunayGas”, JSC “NC KazAvtoZhol ", akimats of cities and regions. Thus, for the comprehensive promotion of a country tourist brand abroad, it is necessary: ˗ attracting a foreign specialist from among local tourism experts in target foreign markets; ˗ the creation of a tourist corner in foreign institutions with the reflection of key tourism products, printed, photo and video materials as agreed with the authorized body; ˗ carrying out activities to promote the country tourist brand in the target markets of the overseas institutions of the Republic of Kazakhstan in agreement with the authorized body; ˗ attracting Kazakh Diasporas abroad and former compatriots to promote and popularize Kazakh culture; ˗ promotion of a country tourist brand in the framework of promoting investment potential, export brands, AIFC services, services of a national air carrier focused on-the foreign market; ˗ holding the World Kurultay of Kazakhs in picturesque tourist places of Kazakhstan; ˗ increase in the broadcasting countries of Kazakhstan television channels abroad, with an emphasis on target markets and etc. In terms of brand promotion in the domestic market: ˗ increase in tourism content on Kazakhstani television, in print media and on the Internet; ˗ social advertising on domestic tourism on television, print and online media, outdoor media and others; ˗ inclusion in the curriculum of lessons in local history and knowledge of tourist offers of the country; ˗ creation of tourism corners at educational institutions indicating the main tourist attractions; ˗ conducting seminars, open lessons on tourism; ˗ organization of visits to summer camps by children;

67 ˗ promotion of a country tourist brand through students enrolled in the “Bolashak” program; ˗ launch of a student exchange program (within the country); ˗ promotion of a country tourist brand at all airports, railway stations and trains, roadside service facilities, on board aircraft with the same information for tourists; ˗ placement of promotional materials in logbooks and handouts; ˗ promotion of the social significance of tourism; ˗ tourism promotion within the framework of business social responsibility ˗ promotion of a country tourism brand in the framework of cooperation with industry tourism associations; ˗ issue of regular digests, booklets, etc. for business and etc. At the stage of implementation of the state program, a single country tourist brand should be used to promote abroad. In turn, regional brands can be used to promote regions among domestic tourists. Astana-Akmola region, Almaty-Almaty region, Shymkent-Turkestan region can also be promoted abroad as key tourist destinations of Kazakhstan. Moreover, the strategy and plans for promoting cities and regions abroad must be agreed with the authorized state body. In order to create competitive information content that reveals the country's tourism potential, the following measures will be taken: ˗ the formation of a database of relevant and “selling” visual content (photos, videos) for use in advertising purposes and Internet resources; ˗ the formation of unique, relevant, valuable and constantly updated information on tourism resources and products in print and electronic media; ˗ organization and holding of annual national photo and video competitions in the field of tourism among the country's population; ˗ the use of storytelling elements in the formation of information content, including in educational materials and programs of primary and secondary education (geography, history of Kazakhstan); ˗ ensuring the translation of information content into the languages of the countries of the target markets; ˗ creation of authentic branded souvenirs for distribution among potential tourists and partners. JSC "NC Kazakh Tourism"in the role of a single country brand manager annually will form a media plan to promote Kazakhstan in the international tourism market, which will include both key tourism products of the country, target groups, and all methods of marketing communications: 1) PR (image articles, coverage of events, etc.); 2) outdoor advertising; 3) advertising in the media and television; 4) digital marketing; 5) exhibitions, road shows and other events; 6) attracting public figures, industry agents of influence and opinion leaders (celebrities, bloggers, famous athletes, actors, singers, etc.); 7) creating your own unique event in the region or attracting events of an international scale (major sporting events, exhibitions, festivals, etc.).

68 In order to increase the load of hotels (especially out of season), an important measure is the development of an event calendar of destinations. In this regard, the priority regions of the tourist map need to ensure the holding of 2-3 significant events per year. To successfully promote Kazakhstani tourism products, resources will be concentrated on promoting the most attractive national tourism products in promising geographic markets that can provide a significant increase in tourist flows to domestic destinations. The list of international tourism events in which Kazakhstan will be represented annually will be expanded (Moscow MICE Forum, IBTM China, New York Times Travel Show, IBTM World Barcelona, ITB Berlin, MITT, CITM, ITE, MATKA, KOTFA, etc.). The concept of Kazakhstan’s participation in exhibitions will also be changed, combining various entities of the domestic tourism business (hotels, auto and air carriers, tour operators, etc.) under a single stand of Kazakhstan. Along with participation in foreign exhibitions with the participation of foreign partners, annual exhibitions in Kazakhstan will be held for foreign tour operators and travel industry entities, such as ITB Asia or PATA Travel Mart. Years of tourism of Kazakhstan in the countries of target groups and accordingly in Kazakhstan Years of tourism of these countries will be determined and held annually. JSC "NC Kazakh Tourism "on the principle of “one window "will provide a platform for establishing cooperation between the domestic tourism business and tourism operators and agencies of the countries of the target markets, as well as conduct information tours for them across Kazakhstan. In order to systematize and coordinate marketing efforts to develop domestic tourism in Kazakhstan: 1) on one of the republican channels the television program “Tourist Kazakhstan” will be launched, which will be aimed at revealing the country's tourism potential and will become a dialogue platform for discussing current problems and prospects for the development of tourist destinations and facilities; 2) JSC “NC Kazakh Tourism” will be entrusted with the task of coordinating the development, information and methodological support of tourist information centers (TIC) in the regions. This will allow: ˗ standardize the functioning and management models of the TIC; ˗ to ensure constant and centralized filling of TIC with quality content; ˗ ensure the principle of equality in access to the client-touristfor all domestic destinations; ˗ provide digitalization of the TIC; ˗ ensure the promotion (sale) of souvenir products (including artisans) through a single TIC network throughout the country; ˗ receiving feedback from all major domestic destinations. 3) city, museum and sacred tours in Kazakhstan will be digitized as a mobile application in 6 UN languages, which will allow tourists to navigate cities without pointers, translators and guidebooks, solve the problem of multilingual guides, the availability of virtual tours;

69 4) high-quality information support of objects of historical and cultural heritage will be provided through the publication and distribution of information booklets, guides, posters, flyers, thematic catalogs using 3D technologies (for example, under the names“Caravan routes of the Great Silk Road”, “Sacred places of Southern Kazakhstan”, “In the footsteps of Saka warriors", "Bozok - the heart of a nomadic civilization", etc.); 5) downloadable electronic guides on priority destinations will be created, including in national parks; 6) targeted quotas for city advertising banners will be allocated for the purpose of promoting domestic tourism in the country; 7) the presence of outdoor advertising in major cities of the country will be ensured, incl. in crowded places, for example, airports and railway stations, shopping and business centers, central squares, etc., as well as in airports, railway and automobile stations. Particular attention should be paid to cooperation with tourist sites and portals, such as Booking.com, Trip Advisor, Lonely Planet, CTRIP, etc., as well as popular Internet resources in target audiences, primarily for updating content, co-branding and advertising. It is necessary to organize work on the transformation and maintenance of the official tourist site of Kazakhstan as the main tool for attracting foreign tourists and promoting tourism products (currently Kazakhstan.travel). The resource will become a single information and communication platform for the tourism industry, and will also be equipped with all modern tools (maps / directions, photographs, videos, virtual tours, etc.). In order to increase the efficiency of the tourism portal of Kazakhstan, it is also necessary to ensure its multilingualism, taking into account target markets.

70 Conclusion

Much attention in Kazakhstan is paid to the development of modern infrastructure, including tourism. Tourism actively contributes to the economy of entire regions of the country. The creation and functioning of economic entities in the field of tourism is closely related to the development of road transport, trade, cultural services. During the period under review, the number of travel agencies in the country increased by 770 units or 76.4%, including the number of travel agencies in the region increased by 8 units, in 2016 the number of travel agencies amounted to 1.7% of their total number in Kazakhstan. At the same time, the number of tourists in the region decreased and amounted to 33.8%. In 2015-2016 the number of tourists in the Republic of Kazakhstan increased by 5,3%. Mainly from the country's well-developed tourism. The share of departing tourists accounts for a significant part of the annual number of tourists. Tourists mainly visit the shopping tours of China, Turkey, Malaysia, Thailand, the United Arab Emirates. A small part of tourists in Zhambyl region goes on vacation abroad, including in Turkey. Thus, in 2016, the share of inbound tourism accounts for 4,8%, outbound tourism-73,3%, domestic tourism – 21,9%. In 2016, this situation is associated with an increase in the share of interest in the civilization and culture of foreign countries. According to the overall goals in the structure of the number of visitors of inbound and outbound tourism, the largest weight is 70,1% and 80,4% of tourists arriving and leaving the country for individual purposes, and for official purposes in the country account for 18,6%, and 16,7% leave the country for official purposes. The number of employed in the tourism industry in the country is only 188,8 people. And in 2016, the income from the activities of tourist firms and agencies in the Republic of Kazakhstan was 542178,3 thousand tenge. In the period under review, the change in such indicators is primarily due to the weak advertising of the tourism potential of the region, the low quality of services for tourists, the lack of necessary amenities and appropriate infrastructure, as well as the lack of qualified specialists in tourism. Hotel industry plays an important role in tourism as the visitors are offered high- quality services: accommodation, food, leisure, transport, excursions, etc. Hotel classification is a characteristic of the compliance of certain hotels and rooms with criteria or service standards. Hotels have a crown and discharge system, so it depends on the different circumstances in each country.In accordance with its scale and another variety of tourism and travel, the harmonious activities of specialists involved in tourist accommodation, travel is associated with the material nature of various trips of people, the geographical position of the national composition and nature. Classification of hotels - differences between hotels in terms of quality of service. Demand for the hotel will always be higher. The hotel is not located in one place, it is developing every day. It changes with different new ideas and new plans. Each hotel has its own place, its own history, its own expression.

71 In general, the hotel business cannot be considered without a tourist business. After all, the hotel industry provides employment and is a source of profit. Hotel industry is currently one of the trading segments of services with high and dynamically developing incomes. The largest share in the total number of accommodation facilities in the country is occupied by objects without a category. In particular, they make up 57.5%. In 2014, the number of visitors served increased from 2548868 to 3808894 people, that is, by 49.4 percent. In the period under review, the number of visitors using the services of 5 star hotels during the period under review increased 2.1 times, while the number of visitors to 2 star hotels, on the contrary, decreased by 53.2%. In 2014, 424,379 people stayed in 4-star hotels, which is 153,497 more than in 2010. The number of consumers of hotel services without a category is increasing annually. So in 2014, 1713842 people applied for hotel services without a category, which is 44.9% of the number of visitors served. 65% of visitors for business and professional purposes, 29.8% for vacation and leisure purposes, 3.3% for visits from relatives and friends used the services of placements. Despite the availability of accommodation facilities, all this indicates the underdevelopment of the industry and the rise in prices of services for hotels. Thus, the infrastructure of the tourism industry requires further improvement in the Republic of Kazakhstan. The country's government and local executive bodies should invest additional funds in its development. The tourism industry and the activities of tourism companies is a new industry, so this area requires its further development and support from the state.

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Moldasheva A.B. Aymen A.T. Atasheva D.O.

BUSINESS TOURISM AS A FACTOR OF SUSTAINABLE DEVELOPMENT OF THE TOURISM INDUSTRY

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