A SWOT Analysis

January 29th, 2012 Sections: Tourism

The other day I was asked to write a piece about Tourism in Kyrgyzstan as a contribution for a report about the current economic climate in the country.   Basically they wanted a simple SWOT analysis with suggestions about what steps could be recommended to the government which could be easily undertaken in the immediate future and, hopefully, bring about positive results.

In itself that should have been fairly straight forward; after all, I have seen, (and written), a large number of these in the past.

On the other hand, I was somewhat hampered by the timescale, (it had to be delivered almost overnight – and I had to get it translated into Russian); the word limit, (actually, to be honest, it was a page limit), and the fact that it was not necessarily just an academic exercise, (the proposals had to be practical, achievable and cost neutral).

I also had to bear in mind that many of the problems that I might have included are not something that can really be addressed in the short term.  They represent long term, deep seated problems which will require a long time and much effort to overcome.

One of the things that I wanted to emphasize was that many of the issues involved are not specifically limited to the Tourism industry.  Many of the measures that will bring benefits to tourism will also have an impact on the lives of the local population – such as improvements to the road system.   Developing the Kazarman-Djalal Abad road, for example, (or that through the Chatkal valley), could bring considerable benefits to the local population, if not to the country as a whole.  Indeed, I see that the Ministry of Transport is even looking at these two as suitable alternatives for an extra major North-South highway through the country.

In addition, I had to recognize that the situation is rapidly changing – hopefully, for the better – and  I realized that anything I wrote might appear out of date in a week’s time.

Although personally, I am not convinced of the need for either a State Policy document on the Development of Tourism nor for a dedicated Government Department to oversee the industry. However, knowing  the views of other people in the industry I felt the need to give voice to their concerns.

Finally, it struck me that there were many issues that I could have addressed, that I didn’t have the time or space to explore … and some of which would require a lot of time, effort and funding in order to resolve.  Issues like establishing a Crisis Management structure, (or rather strengthening the existing arrangements); strengthening the rescue services; improving the provision of specialist education and training; building new facilities … and so on.

 

Anyway, here’s what I wrote, I hope it was useful:

Tourism

Tourism has long been declared a priority area for the development of the economy of the Kyrgyz Republic.  Rich natural resources and unique culture of local population give potential of a sustainable development of this branch affording employment opportunities and increased revenues to the state.  According to official statistics, however, in the last five years tourism has provided just 4% of the country’s GDP, (ranging from 3.5% in 2006 to 4.4% in 2011).

1. Current Situation (Strengths and Weaknesses)

Strengths:

  • A wide spectrum of tourist products – Recreational (for example on Issyk Kul); Adventure or Active Tourism (Trekking, Cycling, Horse Riding, Rafting, Mountain Climbing etc.); Historical and Cultural Tourism (Silk Road Tours, Thematic Tourism); Health Tourism; “Ecotourism”; Business Tourism and MICE, (Conferences etc.); Hunting
  • Uniqueness of the natural environment;
  • Uniqueness of nomadic traditions, cultures;
  • A culture of hospitality;
  • Historical connections, for example with the Great Silk Road and the Soviet Union

Opportunities:

  • Good support from Donor Organizations;
  • Possibility for promotion of a positive brand or image for the country, for example at international fairs;
  • Attraction of Investments is a government priority;
  • Development of new forms of tourism;
  • Introduction of a visa free regime for selected countries;
  • Introduction of a policy of “open skies”


Weaknesses:

  • Revolutions 2005, 2010 and the ethnic conflict;
  • Lack of a clear Government Policy and State Structure;
  • Absence of a corresponding infrastructure (transport, communication);
  • Poor access to the country – few flights or border crossing points;
  • Inaccessibility of the detailed information on a tourist direction;
  • Low levels of service in many areas;
  • Absence of image of the country;
  • Historical reliance upon countries of the former Soviet Union for most tourists visiting the country.

Threats:

  • Political and social uncertainty
  • «Black public relations» from neighbours
  • Uncertainty/shortage of the information on Kyrgyzstan as a tourist direction
  • Insufficient level of given services

2. Problems

Lack of a clear Government Policy and State Structure:  The Concept for the Development of Tourism expired in 2010.  Although a tender has been announced for the development of a new one, there still is no definite document.  There is no general idea of what areas of tourism the country wishes to develop and so efforts are small scale and piecemeal.

The Ministry of Culture has been designated the State Structure responsible for tourism but this is seen as a social department of government and not an economic ministry, (a “spending” department rather than one concerned with the generation of income) giving those in the industry a feeling that there is not a single body to voice their concerns in government.  A State Agency as used to exist has fundamental problem that many of the issues that affect tourism cut across departmental barriers and responsibilities, but

Marketing: One of the key problems facing the development of tourism country is the lack of marketing of the country as a destination.  Without clients there will be no development of the industry.  Every year, as tourists begin to consider where to spend their vacation, they are exposed to a rising mass of attractive material from destinations around the world.  Those who have heard of Kyrgyzstan may have only negative impressions gained from news reports and may not even consider it as a potential destination.  Hence the Kyrgyz Republic looses ground to competitors.  It is important fro the attraction not just of visitors but also for investors to create a positive image of the country abroad.

Visas: Not every visitor to the country is required to obtain a visa.  For those that do, it presents a barrier or hurdle that they have to overcome including cost, time and organizational matters.  The Kyrgyz Republic has relatively few consular offices abroad.  There are several measures that have been introduced to help ease the problem, such as the Simplified Visa Regime which does not require the citizens of certain countries to obtain an invitation and “visa support”; the mutual recognition of Kazakh Tourist visas in the Chui, Issyk Kul and Talas oblasts, the possibility of applying at Kazakh embassies in countries where there is no Kyrgyz diplomatic presence and the possibility of obtaining a visa on arrival at Manas Airport.  Although welcome, each of these has their own problems associated with them.

Access to the country: There are relatively few points of access to the country for foreigners and few international flights, although the development of Tamchi, Karakol and Osh as international airports, the development of the of the China-Kyrgyzstan-Uzbekistan railway and the redevelopment of the roads to Torugart and Irkeshtam are to be welcomed.

Infrastructure and levels of service: Although there have been some considerable improvements to the resources available around Lake Issyk Kul, there is limited suitable accommodation and services elsewhere in the country.  These should be provided in general through attracting private investments, perhaps by offering suitable appropriate incentives.

There are often comments about the poor levels of service offered in Kyrgyzstan.  Although this can be a problem, the country’s human resources can be effectively utilized given appropriate training and experience to develop the knowledge skills and experience necessary to rectify this impression.

 

3. Recommendations on ways to solve these problems

Lack of a clear Government Policy and State Structure:

  1. Establish a government policy which defines areas for attention in the short, medium and long term; target sectors for development, (recreational tourism and/or activity tourism) and potential markets, (traditional markets such as the countries of the former Soviet Union – Recreational Tourism; “Western Tourists” – Activity tourism and tour along the Great Silk Road; New markets – India and China; Internal Tourism – Residents of Kyrgyzstan);
  2. Establish a Government Department with specialist staff to administer the policy, monitor the situation;

Attracting tourists to Kyrgyzstan – Marketing: There are already a number of organizations in the country working independently, with some donor support, on this issue.  The government should offer further support, (in some cases financial and in others organizational – for example, through the embassies)

  1. Establish a brand for the country.  I understand that work is already being undertaken on this issue.  Short Term.
  2. Develop and distribute publicity materials.  Short Term.
  3. Conduct a publicity campaign in the foreign press utilising, for example: advertisements, articles, press releases, “infotours” for journalists.  Short Term and Medium Term.
  4. Encourage the development and marketing of international festivals and events, (such as Film Festivals, the Bishkek Jazz Festival and Fashion Weeks). Short Term and Medium Term.
  5. Work through Diplomatic representations to support marketing activities, such as attendance at International Trade Fairs.  Short Term and Medium Term.
  6. Conduct Market Research in the target markets from where Kyrgyzstan hopes to attract tourists to determine their aspirations and the most effective method of marketing. Long Term.

Easing the entry of tourists to the country – Visas:

  1. Establish a “visa free regime” for selected target countries from which Kyrgyzstan hopes to receive tourists.  The experience of Georgia and the Ukraine suggests that the abolition of the requirement to obtain a visa for citizens of selected has a beneficial effect on the number of tourists choosing those destinations, without increasing the risks to their national security.  Although this measure on its own would not automatically mean an increase in the number of tourists from the selected countries it would send a strong psychological signal about Kyrgyz hospitality as a “welcoming” country as well as removing financial and other barriers.  Short Term.
  2. Establish a regime for a “visa free” transit, (in, say 5, days – for those travelling the Great Silk Road), through Kyrgyzstan for citizens of those countries selected countries who are required to obtain a visa.  Short/Medium Term.
  3. Work with neighbouring countries and the UNWTO on trying to establish a “Silk Road Visa” which would enable travellers to visit several countries upon reception of a single visa.  Long Term.

Easing the entry of tourists to the country – Access to the country from abroad:

  1. Increase the number of ways it is possible to arrive at Kyrgyzstan, for example by declaring an “open skies” policy to encourage an increase in the number of flights to the country. Short/Medium Term
  2. Increase the number of points at which foreigners can cross the state border – in particular in the Talas and Batken oblasts. Long Term.
  3. Develop the China-Kyrgyzstan-Uzbekistan rail link. Long term
  4. Continue and extend the roadworks improving the access to Torugart and Irkeshtam. Long Term.
  5. Work with neighbouring countries to ease access across the border at designated border crossing points, (КПП), for example, at Ak Jol, Doslik, Torugart and Irkeshtam. Short Term.
  6. Undertake training for customs and other officials at points of entry. Short Term.
  7. Establish and maintain “Green Corridors” at points of entry. Short Term.

Infrastructure and levels of service:

  1. Attract investments to develop the infrastructure. (This will benefit the local population as well as tourists.) Long Term.
  2. Support education and training initiatives, for those working in the industry. Short/Medium Term.
  3. Conduct publicity campaign in the local press to explore issues connected with tourism.  Short Term.
  4. Develop improvements to the road network within the country, especially to more “remote” regions such as Batken and Chatkal, thus opening them up for tourism. Long Term.
  5. Develop road signing.  Short term.
  6. Encourage Museums to develop materials and signs in different languages, not just Kyrgyz and Russian. Short Term.
  7. Remove or simplify administrative barriers where they exist and are not required for safety reasons, for example the permits required to visit certain areas of the country such as the Aksai valley in Naryn oblast.   Short Term.
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