May 1999

by Ellen S. House

As the world discovers Kyrgyzstan, dubbed the Switzerland of Central Asia, the country is betting that its natural beauty and friendly atmosphere will attract increasing numbers of visitors. Despite the distinction of having become the first (and only) NIS country to accede to the World Trade Organization (WTO), Kyrgyzstan is struggling to survive and prosper amid the various world financial crises and intense competition for global resources. Promotion of tourism is seen as way to attract attention, investment, and goodwill toward this remote, relatively unknown country. A new government focus on the privatization and improvement of tourism infrastructure aims to bring in foreign investment and attract travelers to Kyrgyzstan's dramatic mountains, lakes and rivers, and Silk Road routes.

Kyrgyzstan's pristine natural beauty including steppes, mountains, desert, glaciers, river valleys, lakes, and forests offers spectacularly varied terrain. Opportunities for adventure and sport run the gamut from mountaineering, mountain biking, and heli-skiing to spelunking, whitewater rafting, horseback riding, and birding. The country boasts two major mountain ranges, the Tien Shan and Ala-Too, and some of the highest peaks in the world Pik Pobeda (7,439 m), Lenin Peak (7,134 m), and the legendary white-and-pink marble pyramid of Khan Tengry (6,995 m). Issyk-Kul in the northeast is the world's second largest alpine lake (after South America's Lake Titicaca). Its shores offer sanatoria, spas, and resorts, which were frequented by the elite in Soviet times.

The resurgence of interest in the old Silk Road trading route, three branches of which passed through Kyrgyzstan linking China with various parts of Central Asia, attracts travelers seeking culture and history. Osh, a stop along the Silk Road route, offers "Suleiman's Mountain," one of the oldest places of worship in Central Asia, along with a stunning bazaar that sells everything from Turkish leather jackets to traditional horse quirts and bridles. A blink of the eyes and the visitor is transported back to an earlier century.

U.S. Tourists Discover Krygyzstan
Adventure travelers from the United States and Europe have begun to discover Kyrgyzstan's potential for adventure holidays and nature tourism, although European visitors outnumber Americans by more than three to one. U.S. tour companies often promote Kyrgyzstan as a unique, exotic experience an untried destination, particularly for seasoned travelers who have exhausted more obvious travel possibilities. These operators say that Kyrgyzstan gets high marks for its charm and natural beauty, as well as for the friendliness and openness of its people. Angela Halonen-Webb, who arranges individual travel to Central Asia for MIR Corporation of Seattle, said that she has heard "raves about the hospitality" from people she has sent to Kyrgyzstan and considers it "the easiest place to travel in Central Asia."

Several U.S. adventure and eco-tour companies send small group tours to Kyrgyzstan on its own or as part of broader Central Asian experience. Companies such as MIR, REI in Sumner, WA, and Mountain Travel Sobek in El Cerrito, CA, offer itineraries for some 10-15 people that focus on nature, trekking, and Silk Road sights and include camping. These trips are led by tour guides with long experience in the region with the help of local partners or personnel.

U.S. tour companies say they prefer to arrange group rather than individual travel to Central Asia because of some obstacles to travel in the region. Specifically, travelers can encounter difficulties with bureaucracy, for instance at border crossings or dealings with the government, that are more easily overcome by a group with an organization and local assistance behind it than by an individual. A more basic drawback to travel in Central Asia is insufficient infrastructure namely, hotels, restaurants, and hospitality services but also including a lack of reliable public transport and communications. One U.S. company representative noted that as the baby boomers take over the U.S. travel market, the importance of tourism infrastructure at a destination has grown, particularly reasonably priced, comfortable hotels and good service.

Kyrgyzstan currently has no Western-class hotel in its capital, Bishkek, although a Hyatt is due to open in September. In addition, the Kyrgyz Government has privatized or plans to sell off a number of existing Soviet-style hotels with the intention of encouraging renovations.

Krygyz Efforts to Promote Tourism
In general, the Kyrgyz Government has targeted the tourism sector, including the upgrading of tourist infrastructure, as a top priority. The government's new program of economic stabilization for 1999 2001 includes a plan to stimulate foreign and domestic tourism and attract foreign investment to the sector by offering tax and customs privileges, granting state guarantees, and providing other means of governmental support. The program also calls for the acceleration of plans to privatize enterprises in the resort and recreation sector. In addition, the government plans to simplify all visa and customs procedures for tourists.

Meanwhile, private sector initiatives in the Kyrgyz tourism sector are also growing along with the number of visitors to the country. Foreign visitors to Kyrgyzstan increased by some 13 percent in 1998 over 1997, and new tour companies have been popping up to assist travelers and work with foreign travel firms. The Kyrgyzstan Association of Tour Operators has grown from 18 member companies with 117 employees in 1996 to 356 employees in 1998. In the last few years, the association has increased its participation in international tourism fairs, and its members have augmented their facilities and services.

Kyrgyzstan, eager to attract foreign investment and visitors, has put new emphasis on the development of its tourism sector and the infrastructure to support it. Given its unspoiled beauty and the welcoming hospitality of its people, tourism is a natural fit for Kyrgyzstan's future.

For a list of contacts for Kyrgyzstan tourism, visit BISNIS Online at www.mac.doc.gov/bisnis/country/cntasia.htm#Kyrgyzstan.

Ellen S. House covers Kyrgyzstan for BISNIS in Washington., D.C.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)