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1PROBLEMS OF ASSESSING THE DEVELOPMENT TRENDS OF TOURISM IN THE REPUBLIC OF UZBEKISTAN AND THE MECHANISM OF ITS SUPPORT
Master's degree student in Economics Khakimova Dildora Rustam kizi ALFRAGANUS UNIVERSITY e-mail: egambersiyevash@mail.ru
Abstract. The main purpose of writing the present scientific article is to research the development trends of tourism in Uzbekistan and the evaluation of its support mechanism. Based on this goal, the following tasks were solved: analysis of the geographical composition of tourists entering Uzbekistan and their grouping; grouping and systematization of incoming tourists according to their purpose of arrival; clarification of tourist organizations operating in the country and the services they provide; clarifying the position of tourism in international trade and determining directions for increasing its share in the Gross Domestic Product (GDP). The analysis of materials demonstrates the significant role of tourism firms and organizations in the development of tourism. Their number and scope of service in the country is increasing year by year. Today, in the territory of the republic, great attention is paid to the development of the service sector in order to achieve the effectiveness of increasing the investment potential of the tourism sector. As a result of the research, we would like to emphasize the need to implement the following activities in the field of tourism development in the country: improvement of the regulatory base of the tourist network is required; it is necessary to develop and approve the rules for the provision of tourist and hotel services; standards for the classification of food and transport facilities have not been developed; passenger transportation rates are high and not competitive; the number of air connections is insufficient, passenger transportation tariffs are high and not competitive; the level of diversification of tourism services such as pilgrimage, medical, gastronomic, rural (farming); the national tourist brand has not been formed; domestic tourism is developing slowly; there is a lack of qualified personnel in the field of tourism, which is explained by the lack of a complex multi-level system of continuous education in the field of tourism, the use of outdated curricula and programs, the level of methodological provision of training lags behind world standards.
Keywords: tourism, tourism services, travel purposes, tourist organizations.
INTRODUCTION.
In the context of modernizing the economy, the impact of the tourism sector on the improvement of the innovative economy on the assessment of practice and the problems of its improvement based on scientific and practical significance, as well as insufficient research in the economic literature, became the basis for choosing this topic as an object of study.
LITERATURE REVIEW.
Much research has been accomplished on the development of the tourism sector and its importance. For example, theoretical and methodological foundations of tourism development and the factors affecting it are highlighted in the studies of Toraev B.Kh.( Toraev, 2008), Safarov B.Sh. (Safarov,
2015), Muminov N.G. (Muminov, 2022; Muminov, 2022), Wiesiaw Alejziak, Ryszard Winiarski (Alejziak & Winiarski, 2005), Julio Aramberri, Richard Butler (Aramberri & Butler, 2004). Development features of ecological tourism are deeply analyzed in the research by such scientists as Andrew Holden (Holden,
2016), Hoshimov M. (Hoshimov, 2009), Tukhliev N., Abdullaeva T. (Tukhliev & Abdullaeva, 2006), Kholmatjonov B.M., Petrov Yu.V. (Kholmatjonov et al., 2020), AYGUN OGUR, Aysun; HAZAR KALONYA, Dalya; GULHAN, Gorkem (OGUR et al., 2021), KO£, Uyesi Canan; KEJANLI, Turkan (Uyesi & Turkan, 2022). The research on the issues of the formation and sale of tourist products is worked by several outstanding scientists such as Durovich A.P. (Durovich, 2008), Hristov T.T. (Hristov, 2007), Fedtsov V.G. (Fedtsov, 2008), Ludnikova V.V. (Ludnikova, 2013), Voloshinova M.V., Zagorskaya V.V. (Voloshinova & Zagorskaya, 2021), Usmanova D.K. (Usmanova, 2009), Egamberdiev F., Makhmudov M. (Egamberdiev & Makhmudov, 2022; Egamberdiev F., 2022), and others. Pardaev M.Q., Atabaev R., Pardaev B.R. (Pardaev et al., 2007), Tukhliev I.S., Kudratov G.H. (Tukhliev et al., 2010), Kim T.V. (Kim, 2019), Douglas
G. Pearce (Pearce, 1992), Stanciulescu, G., State, O. (Stanciulescu & State, 2008) researches have studied the potential of tourism development, tourism planning and the role of tourist organizations in its development. In these studies, the activities of the tourism sector in the conditions of the coronavirus pandemic in different countries of the world are also covered. The analysis of materials related to tourism includes the analysis of the features of the modern development of this industry in our country and the problems of evaluating the mechanism of tourism support.
METHODOLOGY.
The purpose of this scientific paper is to research the issues of assessing the development trends of tourism in Uzbekistan and the mechanism of its support. Based on this goal, the following tasks were solved: analysis of the geographical composition of tourists entering Uzbekistan and their grouping; grouping and systematization of incoming tourists according to their purpose of arrival; clarification of tourist organizations operating in the country and the services they provide; clarifying the position of tourism in international trade and determining directions for increasing its share in GDP.
The methodology of scientific research is based on the tasks set and the development of concepts for solving problems and the sequence of their implementation. The present work included in itself such methods, as completely serving as a basis of the study, selective and comprehensive research, structural analysis, intersectoral balance, systematic approach to the research of tourism complex problems, and target forecasting methods (Blaug, 1993). The current research analyzes the role and development prospects of the tourism complex in the field of services. A deep analysis was effectuated of the geographical composition of tourists entering the country, the composition following the purpose of arrival, and the effectiveness of tourist organizations and hotels serving them.
RESULTS.
During 2010-2017, tourism services exports doubled to us $ 546.9 million in 2017 and US $ 1,041 million in 2018. The growth rate of the number of foreign visitors until 2016 exceeded 2.69 million people, with an average annual rate of 8%, in 2017-7%. 5.2 million foreign tourists visited Uzbekistan in 2022. As a result of measures aimed at supporting and protecting the private sector, the number of tourism organizations, which amounted to 398 in 2015, decreased to 337 at the end of 2020, while the number of hotel farms increased from 661 to 1056. In 2018, 133 vehicles (48 buses and 85 minibusses) of the tourist level were purchased. The terms of consideration of documents for the issuance of a license for tourist activities are reduced from 15 to 10 days.
To further develop the investment potential of the network, French companies were involved in the development of the free tourist zone "Chorvok". Contracts for the establishment of three clusters worth $295,000 were signed with the Turkish IdeallST company in Khorezm, Namangan, and Surkhandarya regions. The total cost with foreign and domestic investors is 600 million dollars investment proposals have been developed. As a result of the practical measures taken, the flow of tourists in 2022 amounted to almost 5.2 million. the population was more than twice the figure for such a period in 2017 (2.69 million.). The influx of young tourists aged 31-55 years increased. The number of trips on domestic tourism exceeded 1 million, including 0.3 million by the Council of the Federation of trade unions., 0.2 million by the Youth Alliance., The "Mahalla" fund has raised $ 0.1 million., 0.1 million by public and religious organizations., and 0.2 million trips were organized by business entities.
In 2020, the number of foreign citizens who came to the Republic of Uzbekistan for tourist purposes amounted to 1504.1 thousand people. This indicator was 6748.5 thousand people in the same period of 2019. At the same time, in 2020, citizens of the Republic of Uzbekistan who went for tourist purposes amounted to 2001.5 thousand people, and in 2019 this figure was 8437.8 thousand people (see Table 1).
Table 1
The number of foreign citizens who came to the Republic of Uzbekistan for tourist purposes
and citizens of Uzbekistan who le ft for tourist purposes thousand people) (O'zbekiston, 2021)
Number of tourists 2018 y 2019 y 2020 y
The total number of foreign citizens who came to the Republic of Uzbekistan for tourist 5346,2 6748,5 1504,1
purposes
Including those from CIS countries 5620,4 6260,1 1420,3
from other foreign countries 325,8 488,4 83.8
Total number of citizens of the Republic of Uzbekistan who left for tourist purposes 8594,8 8437,8 2001,5
Including those who went to the CIS countries 8228,5 7977,7 1843,3
those who went to other countries 306,6 460,1 158,2
According to the data in this table, 94.4% of the total number of visitors in 2020 were from CIS countries, and 83.8 thousand people (5.6%) came from distant foreign countries. In 2020, Uzbek citizens who went to the CIS countries made up 92.1% of the total number of people who left, and 7.9% went to other countries.
The majority of foreign citizens who came to the Republic of Uzbekistan were 508,000 people from the Kyrgyz Republic (33.8% of all visitors), 424,100 people from the Republic of Kazakhstan (28.2%), 337,500 people from Tajikistan (22.4 %), 81.6 thousand people from Russia (5.4 %), 60.6 thousand people from Turkmenistan (4.0 %), 2.2 thousand people from Azerbaijan (0.1 %) and 1.6 thousand people from Belarus (0. 1 %) visited.
Most of the foreign citizens who came to our country from distant foreign countries are 21,000 people from Turkey (1.4%), 7.2 thousand people from China (0.5%), 6.7 thousand people from South Korea (0.4%), India 4.7 thousand people (0.3%), 2.1 thousand people from Germany (0.1%), 1.8 thousand people from the USA (0.1%), 1.4 thousand people from Japan (0.1%) ) and 1.1 thousand people (0.1%) visited from France.
The main part of the citizens of the Republic of Uzbekistan who went abroad - 947.7 thousand people (26.0% of all people who went abroad), to the Republic of Kazakhstan 520.3 thousand people (15.0%), to Tajikistan 299.3 thousand people (2.7% ), 53,200 people went to Russia (0.8%), 16,600 people went to Turkmenistan (0.2%), 1,400 people went to Azerbaijan and 3,200 people went to Belarus (0.1%).
Most of the citizens of the Republic of Uzbekistan who went abroad went to Turkey (62.7 thousand people), Saudi Arabia (29.5 thousand people), UAE (27.8 thousand people), South Korea (9.8 thousand people), India (5 4,000 people), Egypt (4,900 people), Thailand (4,700 people), USA (3,100 people), Germany (1,700 people) and Singapore (1,300 people) organized.
From the distribution of foreign citizens who came to the Republic of Uzbekistan for tourist purposes in 2020, it can be seen that 4.7 thousand of them (50.1% men, 49.9% women) were for study, 15.0 thousand people (46.5% men, 53.5% women) for medical purposes, 16.3 thousand people (85.2% men, 14.8% women) for commercial purposes, 17.4 thousand people (87.2% men, 12.8% women) for service 129.3 thousand people (54.4% men, 45.6% women) came for leisure and recreation, 1321.4 thousand people (49.7% men, 50.3% women) came to see their relatives (see Table 2).
Table 2
Travel goals of foreign citizens who came to the Republic of Uzbekistan ( 2020, thousand people)
(O'zbekiston, 2021)
total Travel purpose
Work Study leisure and recreation visit relatives treatment commerce
Total 1504,1 17,4 4,7 129,3 1321,4 15,0 16,3
from the CIS 1420,3 7,2 3,4 87,9 1304,9 15,0 1,9
countries
From other countries 83,8 10,2 1,3 41,4 16,5 0,0 14,4
The main purpose of the trip of foreign citizens who came to the Republic of Uzbekistan for tourist purposes was to visit relatives, which made up 87.8%. In turn, 8.6% of foreign citizens visited for leisure and recreation, 1.2% for service, 1.1% for business, 1.0% for medical treatment, and 0.3% for study.
The statistical analysis of the distribution of the citizens of the Republic of Uzbekistan who went abroad in 2020 according to the purpose of the trip showed that 16.5 thousand of them (47.6% of them were men, 52.4% were women) for treatment, 24.4 thousand (91.9%) men, 8.1% women) for work, 107.6 thousand people (57.6% men, 42.4% women) for study, 158.6 thousand people (52.8% men, 47.2% women) 1694.4 thousand people (53.7% men, 46.3% women) left for the purpose of leisure and recreation (Table 3).
Table 3
The number of citizens of the Republic of Uzbekistan who left for the purposes of travel (2020,
thousand people) (O'zbekiston, 2021)
total Travel purpose
Work Study leisure and recreation visit relatives Treatment commerce
Total 2001,1 24,4 107,6 158,5 1694,5 16,5 -
from the 1843,3 22,7 101,7 30,3 1679,1 9,5 -
CIS
countries
From 158,2 1,7 5,9 128,2 14,4 7,0 -
other
countries
The statistical analysis of the distribution of the citizens of the Republic of Uzbekistan who went abroad in 2020 according to the purpose of the trip showed that 84.7% of them went to see relatives, 7.9% went for leisure and recreation, 5.4% went to study, and 1.2% went to work. and 0.8% went for treatment.
Tourist firms and organizations have a great place and role in the development of tourism. In our country, the number and the scope of services are increasing year by year, the number of tourist companies and organizations was 313 in 2010 and reached 517 in 2019. In 2020, as a result of the negative impact of the coronavirus pandemic and the global financial and economic crisis, their number slightly decreased to 337. The number of visitors served by them increased from 332.4 thousand people in 2010 to 942.0 thousand people in 2019, i.e. more than 2.8 times (see Table 4).
Table 4
Organizations that accomplish tourist activities (Turistik, 2023)
2010y 2016y 2017y 2018y 2019y 2020y
Number of tourist companies and 313 433 449 502 517 337
organizations, unit
visitors served by them, thousands 363,3 411,7 670,0 713,2 942,0 212,3
of people
including:
accepted 332,4 351,0 558,0 613,4 788,8 186,2
sent 30,9 80,1 72,5 84,9 128,5 18,6
provided only visa and foreign 34,3 38,8 14,9 24,7 7,5
passport processing, hotel and
other accommodation reservation services
From 2010-2019, the number of people received by tourist companies and organizations increased from 332,400 to 788,800 (237.3%), and the number of sent people increased from 30,900 to 128,500 (415.8%). Due to the impact of the coronavirus pandemic and the global financial and economic crisis, the number of admissions in 2020 compared to 2019 decreased by more than 4 times, and the number of departures decreased by 6.9 times.
Hotel infrastructure plays an important role in the development of tourism in our country. The number of hotels and similar means of accommodation (facilities) increased from 434 in 2010 to 1056 in 2020, i.e. by 2.5 times. During this period, the number of places in them increased from 22,600 in 2010 to 50,408 by 2020, that is, by 2.2 times. The number of visitors accommodated in hotels and similar accommodation facilities (facilities) increased from 946.8 thousand people to 2193.4 thousand people in 2010-2019, i.e. by 2.3 times. It decreased by 3.1 times in 2020 compared to 2019 due to the impact of the coronavirus pandemic and the global financial and economic crisis (see Table 5).
Table 5
Indicators of hotels (Mehmonxonalar, 2023)_
2010y 2016y 2017y 2018y 2019y 2020y
A number of hotels and similar 434 750 816 916 1051 1056
accommodation facilities (objects)
including
number of places, unit 22600 37795 39833 40788 46671 50408
hosted visitors, thousands of people 946,8 1714,2 1714,2 2125,9 2193,4 702,8
Today, in the territory of our country, great attention is paid to the development of the service sector to achieve the effectiveness of increasing the investment potential of the tourism sector. Currently, the development of the service sector is ahead of the growth of material production. In 2021, the share of services in the gross domestic product (GDP) was 47.3 percent. In 2021, the production volume of services amounted to 116,795.7 billion som and increased by 8.9%.
The impact of international tourism on the country's foreign trade is significant in developed countries, and a positive balance has been achieved even in the conditions of the coronavirus pandemic. Differences between the shares of international tourism in foreign trade in Uzbekistan and other Central Asian countries are presented in Table 6 below.
Table 6.
The share of tourism in foreign trade, (in %) (Svspb, 2021)_
Export (billion dollars) Import (billion d ollars) Balance (billion dollars)
2018y 2019y 2020y 2018y 2019y 2020y 2018y 2019y 2020y
USA 200,7 199,4 72,8 126,1 133,3 35,8 74,6 66,1 +37
Spain 81,7 79,7 18,5 26,4 27,9 8,8 55,2 51,8 9,7
France 66 63,8 32,8 48,9 51,6 27,9 17,1 12,1 +4,8
Thailand 56,4 59,8 14,2 12,1 12,4 2,8 44,3 47,5 +11,4
Great Britain 50 52,7 18,9 70,9 71,9 21,6 -20,8 -19,1 -2,7
Italy 49.3 49,6 19,9 30,1 30,3 10,9 19,2 19,3 +9,9
China 39,5 34,5 17,1 276,9 250.7 131,2 -237,4 -216,3 -114,1
Kazakhstan 2,2 2,5 0,4 2,7 2,8 0,8 -0,5 -0,3 -0,5
Uzbekistan 1,1 1,5 0,3 2,2 2,3 0,0 -1,1 -0,8 -0,6
Kyrgyzstan 0,4 0,6 0,01 0,3 0,4 0,01 0,1 0,2 +0,05
Tajikistan 0,009 0,001 0,006 0,01 0,005 0,004 -0,001 -0.04 +0,002
Due to the pandemic, the balance of tourism in our country was negative in 2020. Tourism imports amounted to 888.2 million US dollars, and exports amounted to 345 million US dollars, with a negative balance of 543.1 million US dollars.
In 2020, 62 million jobs were lost in the tourism sector, according to the World Tourism Organization, due to restrictions imposed in the context of the coronavirus pandemic and the global financial and economic crisis. Its share in the world GDP fell to 5.5% (4671 billion US dollars) (see Table 7).
Table 7.
Share of income from international tourism in exports and GDP (2020y) (Svspb, 2021)
Countries Tourism Total export Share of GDP billion Share of
income billion tourism in dollars income from
billions of dollars total export tourism at
dollars % GDP %
USA 72,8 2116 3,4 20893,8 0,3
France 32,8 733 4,5 2624,4 1,2
Australia 25,5 298 8,6 1359,4 1,9
Germany 22,1 1685 1,3 3843,3 0,6
Italy 19,9 583 3,4 1884,9 1,1
England 18,9 742 2,5 2709,7 0,7
Spain 18,5 397 4,7 1280,5 1,4
China 17,1 2869 0,6 14866,7 0,1
Thailand 14.2 262 5,4 501,7 2,8
Japan 10,6 797 1,3 5045.1 0,2
Uzbekistan 0,3 15 2.0 59,9 0,5
In order to reduce the negative impact of the coronavirus pandemic, the participants in the tourism sector of Uzbekistan received the following benefits and privileges:
- the fixed tax rate on the income of tour operators, travel agents, and accommodation facilities has been reduced by 50%;
- tour operators, travel agents, and accommodation facilities were exempted from payment of land tax and property tax levied on legal entities;
- the social tax rate was set at 1%;
- calculation and payment of tourist activity fees for tour operators, travel agents, as well as accommodation facilities, was temporarily suspended;
- the interest costs of tourist organizations on previously granted loans from commercial banks for the construction of accommodation facilities were partially reimbursed;
- the costs of upgrading, reconstruction, and strengthening of the material and technical base for the classification or modernization of hotels were partially covered.
The decree of the president of the Republic of Uzbekistan dated May 28, 2020 "on measures that cannot be delayed in supporting the tourism sector to reduce the negative impact of the coronavirus pandemic" provides for the subsidization of accommodation facilities in the amount of 10% of the cost of accommodation services (hotel services) from June 1, 2020 to March 1, 2021.
Residents of the Republic of Uzbekistan at the expense of funds — the total number of foreign tourists brought by them from the date of the resumption of tourism to tour operators and tour agents until reaching 500,000 people were brought to Uzbekistan in accordance with the decree of the president of the Republic of Uzbekistan "On measures for the further development of the tourism sector in the Republic of Uzbekistan" dated August 13, 2019 PF-5781, allocating incentive subsidies on the condition that they have at least five days on the territory of the Republic of Uzbekistan.
From the date of the resumption of inbound tourism at the expense of the fund, until December 31, 2021, for foreign tourist groups consisting of at least 10 people, the expenses of tour operators for air and railway tickets will be covered by the ticket price, provided that they organize a tour in the
Republic of Uzbekistan and spend at least five nights in their accommodation facilities. Partial subsidization in the amount of 30 percent was established.
According to estimates, the total cost of distributed projects is 60 billion is more than som. Thirdly, in order to attract foreign investments in the field of tourism, a number of incentives were introduced for the construction of hotels based on the conditions of public-private partnerships. According to this document, for each room of the built 3-star hotels, 30 mln., 40 mln. for 4-star hotels will be allocated from the state budget. It was decided to allocate compensation of soms. At the same time, the practice of partially compensating royalty costs of hotels that have attracted world-famous hotel brands has been introduced. According to it, 200 US dollars were allocated for each room of 3-star hotels, and 400 dollars for 4-star hotels. As a result, the number of deployment tools has increased dramatically. In particular, between 2016 and 2020, their number increased from 750 to 1,308, and the number of available places increased from 34,000 to 62,000. Also, during 2018-2020, the number of guest houses increased 13 times to 1386.
Analysis of the profit from tourism leads to interesting comparisons. Compared to Russians, there are twice as many tourists in the US population, while the profit from this network is five times more. This contributes to the development of the state economy.
The share of the tourism sector in the gross domestic product of Uzbekistan is only 2.3 percent. In foreign countries, this figure reaches up to 10 percent. It is necessary to increase the importance and role of tourism in Uzbekistan. All the efforts being made justify the fact that in the coming years there is a chance to raise this figure to 5 percent. The main sources of tourism growth in Uzbekistan are not only in attracting tourists from abroad but also in the development of domestic tourism, which is a powerful development factor. Entrepreneurs who want to invest in this area are having problems with the fact that assets focused on the tourist sector work on average in 4-5 months. Consequently, the active implementation of the program for the development of domestic tourism creates the opportunity to make tourism all year round, and entrepreneurs to receive income all year round.
It can be shown, that Uzbekistan is still far behind in the field of tourism. In particular, according to the assessment given by the World Tourism and Travel Council (WTC), Uzbekistan ranks 150th among the countries of the world in terms of tourist visits. In the ranking of competitive countries in tourism, the 140 most attractive tourist destinations in the world (in terms of cultural resources, cheap infrastructure, price of tourist products, level of security, and international transparency) were recorded and Uzbekistan is in the last place among the countries of Central Asia and is not included in this rating.
In CONCLUSION, we can say that there are enough unsolved problems in the network, which are as follows:
1. It is necessary to improve the normative base of the tourist network, it is necessary to develop and approve the rules for the provision of tourist services, including hotel services, standards for the classification of food and transport facilities have not been developed;
2. passenger transportation tariffs are high and not competitive;
3. The number of hotel rooms in the republic is insufficient;
4. The number of air connections is insufficient; passenger transportation tariffs are high and not competitive;
5. The level of diversification of tourism services such as pilgrimage, medical, gastronomic, and rural (farm) is low;
6. The national tourist brand has not been formed;
7. There is insufficient information for foreign tourists about the tourist potential, the conditions for the stay of foreign tourists in the republic;
8. Domestic tourism is developing slowly;
9. There is a lack of qualified personnel in the field of tourism, which is explained by the lack of a complex multi-level system of continuous education in the field of tourism, the use of outdated curricula and programs, and the level of methodological provision of training lags behind world standards.
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