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Up to USD 6 bn could be invested in Kazakhstan tourism development under optimistic scenario

June 16 2014, 17:26

Minister of Industry and New Technologies Asset Issekeshev Minister of Industry and New Technologies Asset Issekeshev Optimistic scenario of the tourism industry development will allow to attract up to 6 billion U.S. dollars in private investment in this sector by 2020, Kazakhstan Deputy Prime Minister - Minister of Industry and New Technologies Asset Issekeshev told a Government Hour in the Majilis.

"Of course, we will strive to the optimistic scenario of the tourism industry. In this scenario, the share of this industry in GDP may reach 3%, private investment - 6 billion U.S. dollars and 300 thousand new jobs will be created. This will require strong support of the state and, of course, funding," Issekeshev said.

He noted that the concept of Kazakhstan tourism industry development till 2020 provides for three scenarios for the development of tourism. According to the pessimistic scenario, it is expected that 2 billion U.S. dollars in private investment will be attracted in the industry by 2020; tourism will account for a 1% share in GDP; about 56 - 60 thousand jobs will be created.

The second scenario is realistic if investors are attracted through the mechanism of public-private partnership and government provides support. In this case, the expected private investment is 4-4.5 billion U.S. dollars, the share of tourism in GDP - 1.5%, and 150 - 170 thousand new jobs.

The minister also said that the planned legislative changes would promote tourism, PM's official website reported.

"Firstly, this is the simplification of the visa regime for foreign tourists, development of domestic and social tourism," the minister noted.

According to him, another important issue is Kazakhstan’s airports and civil aviation. According to the optimistic scenario the number of tourist is expected to reach 8.9 million annually by 2020.

"There are good prospects for Kazakhstan to enter the market of international tourism. Two-thirds of the increase in global tourism is ensured by our neighboring countries. It is about 200 million tourists - China, Russia, the Middle East and Europe. These are our potential markets," Issekeshev concluded. 

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