Postcard from Bishkek

Prices are a very important element of any package, and can be the source of much misunderstanding.

For a few specific, individual, services, which do not make up part of a package, we have set fees, e.g.  –

• Invitations where required – depending on the circumstances … for group visas this may vary depending on the size of the group.
• Help with OVIR registration where required
• Liaison
  • booking accommodation, tickets,
  • arrangements for visa invitations
• Transport
  • Manas Airport transfers

However, most of our work as a tour company involves customising tours to meet individual requirements (itineraries, activities, number of tourists etc.) it is not easy to quote prices – which are fixed for each tour separately and can vary from group to group even if the itinerary looks (superficially) the same.  (If you want a price for a specific itinerary – please contact us and we will be happy to reply.)

For your information – the way we work out our prices is as follows:

1. we work out what it will cost us to provide the service
2. we add a service charge
3. we calculate and add the taxes due

CONCERNING THE COST OF SERVICES:

We obviously have to pay the service providers we use in delivering a tour to you.

Kyrgyzstan has a mixed reputation concerning prices.  Some think of it as being a “cheap” destination. There could be several reasons for this, such as :

• It is possible to find cheap accommodation, transport etc. – if you have the time and are willing to search it out.
• Many travelers who have come here in the past have been seeking “rock bottom” prices and willing to put up with the difficulties and discomforts that cheap accommodation and transport provide – it is all part of the adventure;

However, in many instances it is a case of “you get what you pay for”.  For example: in Bishkek it is possible to find very cheap accommodation – but in a dormitory, without a lock on the door and with few, if any, services or comfort; or “local taxis” can cover great distances at a very cheap rate – and you may be lucky with both driver and vehicle, but you could be stuck three to the back seat of small Moskvitch, with a driver you don’t know; whose driving skills might be questionable; who is unwilling to stop to let you take photographs or stretch you legs; in an uninsured vehicle which is traveling to Bishkek in order to get some vital part fixed.  Also, outside the major centres, and even sometimes in them, there may be difficulties with electricity supply, hot water and so on.  If you want service and comfort – you tend to have to pay extra.

Others think of it as “overpriced” for the level of infrastructure and services offered.  There could be several reasons for this, such as :

• Many establishments and firms have lacked facilities – but have charged international prices.
• Experienced trekkers etc. compare services and infrastructure with other places like Nepal, which have a longer history and more developed infrastructure and where prices are similar – or, in some cases, lower.
• There used to be a widespread system of double or even triple pricing – one price, very low, for Kyrgyz citizens; another, higher, for citizens of CIS countries and one for citizens of other countries.

However, the infrastructure and levels of service are improving – investment is taking place – and the people are both welcoming and adaptable. Although the system of tiered pricing is still found in some places – it is becoming less common – and we think it is against the constitution.

CONCERNING THE SERVICE CHARGE:

We also need to levy a service charge – you are using our services: local knowledge, contacts, communications and experience.   Not only do we hope to make a profit – but we also have to cover our overheads, such as : our office expenses; publications (including the website); communications (post, telephones, fax and email); payroll for our staff; insurance and bank fees (in the West we might be able to receive interest on a credit bank balance – but here we are charged a fee for keeping money in some of our bank accounts and  another every time we seek to remove money from the bank).

Also, we are often faced with requests for “sponsorship” by worthy causes, and as responsible members of the community we try to respond positively and contribute to as many of these as possible.

CONCERNING TAXES :

At the moment there are three main taxes which affect our prices: VAT; sales tax and of course Profits tax.  There are other taxes levied by the government – but these are the main ones which directly affect our prices.  Although it may be tempting to ask: “Is there anything we can do to reduce these taxes”, please remember that we have to pay taxes by law and that these are part of your “social” contribution to the economy of the country you are visiting.

Basically, (as a rough guide), when pricing tour services, for every dollar that we charge:

• USD0.76 goes directly to pay for the service;
• USD0.11 goes to us to meet our general overheads and (hopefully) provide a profit; and
• USD0.13 goes in taxes.

Tags: Celestial_Mountains, For_the_Record, Tourism