Uzbekistan’s tourism sector to grow by 6% per year until 2028

Uzbekistan’s tourism industry is experiencing strong growth compared to other countries in the Central Asia region, according to a report by Horwath HTL.

Under the leadership of President Shavkat Mirziyoyev, Uzbekistan is working to modernize its tourism sector and attract more international visitors, echoing its historic role as a key Central Asia stop on the ancient Silk Road.

Recent government efforts have made it easier for tourists to visit the country, including simpler visa procedures and more frequent flights to the capital, Tashkent.

“For nearly 30 years, travelling to the country was difficult but with an easier visa process and regular flights to the capital, tourists are able to experience Uzbek history, architecture and cuisine,” said Horwath HTL, a firm specializing in hotel, tourism, and leisure consulting services.

Year on year growth of the tourism sector and modernization of infrastructure such as hotels and leisure facilities has seen Uzbekistan lift its position in the Travel & Tourism Development Index over the past years. The index is created by the World Economic Forum and covers more than 100 countries.

Horwath HTL’s report said that between 2020 and 2028, the sector is expected to see annual growth rates of around 6%, further expanding its economic contribution to gross domestic product.

To further boost tourism, the Uzbek government is offering several incentives to attract investors. These include:

• Hotel construction subsidies: The government covers part of the construction and equipment costs for new hotels. For instance, investors in 3-star hotels receive around $4,820 per room, while 4-star hotels are eligible for approximately $7,832 per room.
• Franchise support: If local investors sign franchise agreements with one of the top 50 global hotel brands, the state may finance the franchise fees for the first three years.
• Land incentives: Land for hotel construction can be purchased after completion or rented for periods of 10 to 30 years.
• Simplified regulations: Certain licenses and certificates, such as those required to sell food and beverages at hotels, are no longer necessary.
• Customs exemptions: Imported equipment for tourism-related facilities, including cultural heritage sites, museums, and theatres, could be exempted from customs duties until 1 January 2022.
• Privacy protections: New laws ensure that hotel services are offered without infringing on individuals' privacy or personal relationships, removing past restrictions related to citizenship and residency.

International hotel brands

International hotel chains are showing interest in entering Uzbekistan, particularly in cities like Samarkand, Bukhara, Khiva, Fergana, and Andijan. These cities are considered promising locations for economy and midscale hotel segments.