Uzbekistan’s Tourism Industry: Seeking Investment and Sustainable growth

 Iskandar Kamolov, a seventh-generation blacksmith at the 16th-century Toqi Zargaron trading dome in Bukhara, is among those reaping the rewards of Uzbekistan’s efforts to develop its tourism industry.

In recent years, the government has abolished visa requirements, scrapped rules requiring foreign visitors to report their whereabouts and allocated $17.8m to tourism development.

This has led to an increase in international visitors, with most coming from Russia, France and Italy. The influx of people has been beneficial for Kamolov, with his sales of traditional knives and scissors ranging from $20 to $800 each.

Uzbekistan has a rich history as a node of the Silk Road, which connected Europe and China for 1,500 years until the mid-15th century. To capitalise on this heritage, Uzbekistan has made “commendable progress” in preserving its Silk Road heritage, according to UNESCO representative Sara Noshadi.

International hotel chains are also making a presence in the country, with the government offering financial incentives and tax benefits to encourage investment. However, the country still faces challenges in developing a thriving tourism market.

Tourist arrivals remain modest, while infrastructure is a particular challenge. With 1,193 accommodations and only 51 starred hotels, Uzbekistan lacks an adequate number of hotels to increase the number of tourists.

Language barriers and difficulties in acquiring essentials, such as train tickets, have also meant that visitors are mostly confined to group tours. The government lacks a sense of coordination and long-term planning.

There is still a lack of capacity within the government and the private sector, while cultural heritage must be preserved more professionally and sustainably.

Despite these problems, visitors are on the rise as the COVID-19 pandemic recedes, which is a boon for locals who depend on tourism-related businesses for their livelihoods.