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ISET Economist Blog

Is Winter Tourism in the Kyrgyz Republic Able to Reach the International Level?
Monday, 11 January, 2016

Izat Berenaliev, a research fellow of the National Institute for Strategic Studies of Kyrgyzstan, analyzed whether Kyrgyzstan's winter tourism sector can reach an international level in his article "Is winter tourism in the Kyrgyz Republic able to reach international level? published on the website of the NISS

Current situation

In recent years, winter tourism in Kyrgyzstan develops rapidly and becomes much more popular. There are more than 6 ski resorts with chair lifts and several small bases with regular lifts in Kyrgyzstan. Besides them, there are a lot of building projects for new, modern ski resorts in various regions of Kyrgyzstan. The mountain territory of Kyrgyzstan provides comprehensive opportunities for their development. The country’s landscape enables to reach height level difference from 2000 to 4500 meters under proper and ample planning. At the same time, it is able to build ski resorts with various ski-run alternatives for both beginners and professionals.

Winter tourism, as well as summer tourism, has two features: it depends on weather conditions and has seasonal nature. Due to the vacation period in the wintertime being much shorter, a major part of customers goes to the mountains only at weekends. Ski resorts are loaded on weekends, but freer during the workweek.

Today, the market supply of winter tourism has sufficient domestic demand only at weekends, i.e. if to build more a few large resorts, there is no guarantee of they will be so well attended by domestic tourists. It is required to work in two ways: internal and external directions for the growth of demand. In the internal market, ski resorts have to increase attendance during the workweek (except day-offs). The new product must be designed for youth and students. Group trips should be arranged. Ski resorts can negotiate with universities, departments and give them certain days with the best prices and transportation. Thus, occupancy of bases will increase, young people, will get a familiar new type of sports, learn it and later, they will visit ski bases by themselves. So it is an advertisement in some measure for ski resorts.

One more note the least segment includes school students, because today’s student, who successfully mastered skis, is a potential customer after 10 years. If we want to develop winter tourism for the long term too, now we have to prepare our future customers. Every school is able to organize at least two trips to mountains by all means and negotiate with the ski resort, thus their occupancy will significantly increase. As abovementioned, ski resorts are badly packed during the workweek, so they can offer reduced prices for lifts to train and prepare future customers. The most important thing is the health of the young generation, which will begin to be keen on sports and active rest.

Local population-related troubles (ZiL ski base)

Ski resorts create a lot of job sites. Local residents begin to actively work in touristic business, but this point of contact for private business, tourists, and the local population is able to create some difficulties. Recently, the ZiL ski base has closed, its administration was discontented because of frequent interferences of the local population. Akbar Ryskulov, Director of ZiL ski base: “Local residents don’t allow us to work; they don’t understand it is private territory. They always demand from us to leave this place. They want to freely graze their cattle. They threaten us with blocking the road. They want to always use services of ski base free of charge, demand for themselves all kinds of preferences, money for village development. We met them halfway and handed many of them free ski passes in order for them to use base services free of charge. We rehabilitated the road. But many of them still want more. They resell ski passes, refuse to pay for food and bathroom. Moreover, they placed in our territory unauthorized shop for café and skiing equipment rental”. After the closure of the base, 26 employees from the village lost their jobs.

Similar conflicts have a negative effect on the investment climate of the country. Foreign investors will abandon their plans to invest under such risk of local population’s interferences. Local residents must understand ski base creates jobs, and its operation doesn’t oblige them to pay something or give preferences only because the ski base is located near the place of residence of villagers. But at the same time, tourism is a business sector, where it is not possible to ignore the local population. It should be involved as employees and added into staff. The population should be integrated into touristic business within legal boundaries, in order for all parties to follow generally accepted rules. It should be noted that similar conflicts took place on the shores of Ysyk-Köl Lake too, during the summer touristic season.

Access to international level

Winter recreation on alpine skis is popular amongst Kyrgyzstanis: 80 % of customers of ski resorts are residents of Kyrgyzstan, 20 % - Russia and Kazakhstan. Ski bases should design special touristic products for the foreign markets. Mainly, they have to keep investing in skiing infrastructure, but especially it is required to improve hotel business in ski resorts, this product is virtually not developed inside of ski base territories. It may be said we have to ski bases only for daytime skiing, but no ski resorts allow full value recreation. For example, in France, a tourist goes to a ski base to spend 1 euro on a lift, at the same time he/she spends 7 extra euros on other associated services, like hotel accommodation, meals, entertainment, evening programs, etc. Thus, expenses for lifts are is only 1/8 from all touristic product packages. Today, ski resorts of Kyrgyzstan are investing in the most important component – lifts. With time ski bases has to set a goal to create conditions for tourists will be able to stay at least one week at the ski resort hotels. For this, it is necessary to provide a wide range of services: vast space for skiing domain, comfortable hotel rooms, delicious food, and the main thing – to organize leisure-time and evening entertainment programs. Such service would meet the requirements of foreign tourists, i.e. tourists from Russia and Kazakhstan would be able to come to Kyrgyz ski resorts for one week. There is no sense to arrive only for several days or day-offs when the ski base will be occupied by local tourists, moreover, travel expenses do not worth these costs. Ski bases could sell all services packages for one price, in one package, one all-inclusive price for one week trip.

Let’s compare summer beach tourism. Internal tourists visit the lake at weekends, but foreign tourists are arriving for a longer time and with beforehand bought vouchers. The infrastructure allows them to enjoy summer holidays for a longer time. The number of wintertime tourists should reach the number of summertime tourists. If there will work 30-40 Kyrgyz ski resorts, we would say Kyrgyzstan has risen to the international level.

Besides, there is no way to ignore so promising and close market with growing purchasing power, like Kazakhstan. If the level and quality of services in ski resorts will be improved, it is able to be a competitive destination for winter tourism. Also, it is very necessary to not forget about the environment. National Strategy for Sustainable Development of Kyrgyz Republic provides a caring attitude for the environment. We have to design the Strategy for the development of winter tourism. Nature was and is the first feature, at the same time competitive advantage of Kyrgyzstan in the tourism market. Magnificent mountain landscape, purest alpine air, stable snow cover, and future well-developed touristic infrastructure and effective marketing policy will make Kyrgyzstan a regional center of winter tourism.

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The article was originally produced for and published by the National Institute for Strategic Studies of the Kyrgyz Republic (NISS).

The views and analysis in this article belong solely to the author(s) and do not necessarily reflect the views of the international School of Economics at TSU (ISET) or ISET Policty Institute.
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