Kazakhstan Begins Tourism Reform and Opens New Resorts

In the second decade of June, Tokayev held an extended meeting on tourism. He reminded that 2024 was named the year of tourism, emphasized the importance of the moment and the event. Global-Relocate experts noted the scale of the event and the interest of participants in the project. Before the members of the cambine, heads of regions, large companies, NPP "Atameke" the President set tasks for the dynamic development of the industry.

Internal Problems of the Tourism Industry

The meeting began with summarizing the results for the reporting period. The President immediately pointed out the underutilization of regional potential and low results. He emphasized that to understand the scale of internal problems, an objective assessment is needed, since the industry provides 11% of jobs and 6% of taxes. It also accounts for up to 7% of investments.

Important

The decrease in the sector's share in the economy from 3.7% to 3.2%, which is 2.9 times lower than global values, demonstrates the true state of affairs and necessitates a change in strategy.

In the World Economic Forum's ranking of business tourism environments among 119 countries, Kazakhstan ranks 70th. According to these figures, the country lags behind even neighboring countries with similar climates and approximate levels of tourist infrastructure.

Experts from Global-Relocate believe that the main issue is related to the ineffective collaboration of authorities with sponsors capable of materializing projects using their capital, even amidst stiff competition. Notably, the president criticized plans regarding the development of 20 zones, suggesting that it would lead to budget dispersion and minimal outcomes. It would be more prudent to refurbish the facilities that have become the country's tourism landmarks.

Opinions and Comments

The president of the tourism association discussed industry reorganization and securing top-level support. Previously, he confirmed that the following issues are known:

• Problems with roads and accommodation facilities.
• Absence of helicopter tours due to an incomplete fleet of small aircraft.
  
• Wear and tear of transport and the inability to organize routes in mountainous areas.
  
• Failure of advertising/marketing strategies to attract foreign tourists.
  
• Inadequate cooperation of immigration authorities with visa countries.
  
• Lack of industry support from regional leaders.
  

Shaykenov emphasized the shortage of qualified personnel. According to the report from the Institute of Economics for the years 2022-2023, the number of students in relevant faculties amounted to 32 individuals. However, the number of graduates with bachelor's degrees did not exceed 1.1%.

The importance of shaping the country's image in tourism remains unquestioned. Qualified professionals capable of comprehensive business process management are needed for this purpose. Currently, disunity complicates regional management and control. These tasks are addressed through professional management, consideration of guests' interests, and the organization of high-quality leisure activities.

Important

The chairman of the board voiced another key issue – lack of competition.

Due to high demand, prices are constantly rising while the level of service remains unchanged. The government has also addressed this issue. In the Mangystau region, they are now opening hotel and restaurant businesses under franchise agreements.

Tourism Development Vectors

According to GR, changing the industry's situation is likely with a fundamental approach to logistics, hotel and restaurant business, trade, and security. Achieving ambitious plans is realistic with government support and significant financial influence.

Investors are hesitant to risk their capital until the government, in collaboration with relevant ministries and local administrations, establishes modern logistics, tourism/restaurant infrastructure, and a business ecosystem.

Assignments for construction and improvement

GR analysts note that the primary task has become changes in projects. Government assignments include:

1. Creating databases with records of land plots for potential investors.
2. Digitization of resort zone projects under the guidance of regional leaders.
   
3. Revision and refinement of the Aktau plan, focusing on developing the coastline perimeter similar to Dubai and Baku.
   
4. Completion of work on the "Warm Beach" project, shifting resources and equipment to the construction of the Kendery resort.
   
5. Improvement of the "Burabay", "Akbura" zones, shores of lakes Zhukei, Katarcol, and other water bodies under the guidance of local administrations.
   
6. Development of border regions for tourist comfort.
   
7. Completion of the modernization of border locations Bahta and Kolzha.
   

Engineering Infrastructure

The Government of Kazakhstan, in collaboration with local authorities, is recommended to conduct a review of the engineering communications of resort zones. Additionally, they are tasked with developing a targeted program to ensure resources for these locations, including electricity and clean water.

Transport

Builders are tasked with completing road repairs by the end of the year. Airlines are now required to increase the number of budget carriers on routes. Currently, their share in passenger transportation does not exceed 21%. Compared to Georgia and Azerbaijan, this figure is nearly half as much. The share of low-cost carriers in these countries is 56% and 37%, respectively. It is also necessary to increase the number of flights from Almaty and regional cities.

Special attention is given to railway transportation. According to the president's remarks, the condition of worn-out railcars is unacceptable. The government has been tasked with:

• Completely renewing the fleet within 5 years.
• Immediately launching the digital platform Burabay Travel.
  
• Introducing express trains to major cities such as Pavlodar and Ust-Kamenogorsk.
  

Statistics show that 90% of travelers come from the CIS countries, with only 10% from distant countries. Moreover, 70% of travelers opt for short flights not exceeding 4 hours.

Additional options

The country's favorable geographical location, coupled with effective promotion and a modern aviation fleet, will attract travelers from Asia and the East. Law enforcement agencies are also advised to take appropriate measures to ensure the safety of the country's guests.

Information Technology

The head of state for global popularization of tourism Kazakhstan's tourism and investment attractiveness calls for a more successful use of information space, cooperate with international media companies.

The President emphasized the importance of attracting foreign IT specialists to launch startups, collaborate with major companies across various sectors, and increase digital product exports to $1 billion. He expects the country to become a hub for digital nomads in the near future.

To achieve this, the relevant ministry has prepared the Neo Nomad Visa, a program for obtaining residency under special conditions (Digital Nomad Residency). It is anticipated to include a category for "In-Demand Professions." Requirements for nomads are published on the official website. The government plans to launch the program in the fall of 2024. The effectiveness of the adopted development plan will be revealed over time.