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Uzbekistan tourism: information, attractions, hotels, Tashkent, Bukhara, Khiva

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National normative-legal documents of Uzbekistan on tourism development by BVV Business Report Newspaper.

As well as any branch of economy, tourism is regulated by laws and development programs. The appropriate normative-legal base which impacts the status of tourism was being formulated during 15 years in Uzbekistan.

It is necessary to note, that simple search of documents related to tourism ... brought a result of 160 statutory acts. Those are not only laws and governmental decrees, but also the departmental norms approved by the Ministry of Justice, as well as international contracts and the agreements concluded by the Republic with other states.

The analysis of documents allows to characterize a degree of tourism development by stages:
The first is the organization of tourism as one branch of economy on the basis of enterprises being of different ownership type - the State Committee of the USSR on Foreign Tourism, the Bureau of Youth Tourism Sputnik within the Komsomol, the trade-union organizations, etc. This period covers 1992-1995. Since this moment there started privatization of tourist objects, construction of small private hotels and it was a beginning of international tourist fair in Tashkent.

The second - documents which are directed on the development of tourism infrastructure, creation of nongovernmental corporate tourist associations. Within this period there were programmatic goals set such as the Program of Tourism Development till 2005. The second stage covers 1995-2000. There is a process of large investments into hotel networks, expanding of small hotels network, providing privileges to small and medium businesses.

The third period covers the years since 2001 to the present. There is an on-going privatization process of enterprises from the National Uzbektourism Company. The Company itself is facing reorganization. The interdepartmental agreements are concluded to facilitate tourist procedures. The government attracts foreign investments and management companies into hotel business. National tourist administration has been instructed to develop draft Program of Tourism Development till 2010.

We have to note that legislation related to tourism, on one hand, provides favorable climate for this sector of economy, and on the other, can give privileges according to indirect attributes. For example, there are privileges for joint ventures and if the tourist firm is organized as the joint venture it can expect getting them. On the other hand, there are privileges for investors, and it relates to the sphere of tourism, too. Besides that there are norms to support private business, to develop joint-stock companies, micro firms, small and medium business, i.e. certain types of ownership and management.

Let's make a review of some governmental documents, which have primary importance for tourism.

The Law "On tourism" was approved, by Oliy Majlis on 20 August 1999. It regulates state policy in the sphere of tourism, defines legislative norms for this sector of economy, including norms of relations between subjects and objects of tourism.

The Regulations "On the order of departure and entrance of tourists to the Republic of Uzbekistan". The appropriate provision has been approved in order to regulate the entrance of foreign tourists into the Republic of Uzbekistan and departure of citizens of the Republic of Uzbekistan abroad as tourists, and to secure their safety. The Regulations were registered by the Ministry of Justice on 3 November 2004 No.1421.
It was issued according to the Law of Republic Uzbekistan "On tourism", Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 28 July 2004 No.360 "On further improvement of Uzbektourism national company activities" as well as in accordance with the other legislative acts.

Regulations "On licensing of tourist activity". The Resolution of the Cabinet of Ministers dated 11 November 2003 No.497 stipulates the procedure and rules for receiving the license for tourist activities various subjects of managing.
The Order of certification of tourist services. It was registered within the Ministry of Justice on 18 March 2000 No.911 and approved by Uzgosstandart. It contains general provisions, rules and procedures of carrying out obligatory certification of tourist services rendered by subjects of tourist activities and can be also used in carrying out voluntary certification.

The Resolution "On simplification of visa procedures for Italian citizens" of the Cabinet Of Ministers dated 19 February 2003 No.85. The Ministry for Foreign Affairs of Uzbekistan was entrusted to issue multi-entry visas for one month to citizens of Italian Republic visiting Uzbekistan as tourists within two working days with a waver of presenting tourist vouchers of Uzbektourism or other tourist organizations.
Note: the same procedure covers citizens of France. Latvia, Great Britain, Spain, Austria, Switzerland, Japan, Germany and Belgium.

On granting exemption from customs duties to some tourist organizations. The Ministry of Finance (No.04-02-04/11) and the State Tax Committee (No.09-386 dated 12 January 1996) in order to implement the Decree of the President of the Republic of Uzbekistan dated 2 July 1995 "On measures to facilitate participation of the Republic of Uzbekistan in the revival of the Great Silk Road and to develop international tourism in the republic" consider it possible to support the proposal of Uzbektourism regarding exemption of tourist agencies in Samarkand, Bukhara, Khiva and Tashkent cities from paying customs duties for importing vehicles for their own use.

The Decree "On measures to facilitate participation of the Republic of Uzbekistan in the revival of the Great Silk Road and to develop international tourism in the republic". The decree of the President of Republic Uzbekistan dated 2 June 1995. The document stipulates the following:
- To organize special open economic zones on international tourism in the cities of the Great Silk Route - Samarkand, Bukhara, Khiva, and Tashkent;
- At the airports and the railway stations of the specified cities introduce simplified order of customs clearance for foreign tourists, which corresponds to international norms, and also special
customs areas for transit tourists;
- To exempt from all kinds of taxes newly formed tourist agencies and the enterprises of these cities for the period from the data of their establishment till the date of receiving the first profit, but no more than three years from the date of registration;
- The specified organizations and enterprises in the first year of receiving the profit shall pay 50% of the profit tax, in the second year - 75%, starting from the third year - 100%;
- To exempt foreign investors which set up joint ventures in the sphere of tourism in Samarkand, Bukhara, Khiva and Tashkent from the payment of exported profit tax for the period of 5 years in addition to the privileges granted.
- To the Ministry of Foreign Affairs and the Ministry of Internal Affairs in two months term to identify common visa to foreign tourists, which is valid for the whole territory of the Republic, except for the objects defined by the legislation of the Republic of Uzbekistan.
- To recommend commercial banks to provide credits to businessmen for construction of private hotels and hotel infrastructure with the term of repayment not less than five years;
- To establish Interdepartmental Tourism Council within the Cabinet of Ministers, having defined its primary goals as: deepening of economic reforms in the sphere of tourism; coordination of the development of the network of small and medium hotels, motel and camping at a level of world standards; assistance to the development of modern entertainment business, cultural and fitness centers; organization of wide publicity and preservation of unique tourist potential and historical and cultural heritage; carrying out coordinated scientific, technical and investment policy in tourism; providing training and retraining of tourism personnel.

The Order of interaction of Uzbektourism and the State Customs Committee of the Republic of Uzbekistan on customs clearance of tourists crossing the border of the Republic of Uzbekistan. It was approved by Uzbektourism and the State Customs Committee of the Republic of. Uzbekistan on 20 July 1993. The State Customs Committee on a regular basis informs Uzbektourism on the following:
- change of effective standards of permitting the goods, currencies, currency values, jewellery and other household goods from precious metals and stones across the border;
- change of the norm of duty-free goods;
- change in the rates of customs duties used in noncommercial circulation;
- inventory of goods forbidden to export from Uzbekistan;
- change about the customs control and registration of citizens crossing the border of Uzbekistan;
- revealed facts of smuggling and infringement of customs rules by citizens of Uzbekistan, crossing border as tourists and processed by Uzbektourism.
Upon written applications from the agencies under Uzbektourism and on compensatory basis Customs Committee can carry out consultations of tourist groups on rules of customs control and imported goods.

Uzbektourism on a regular basis is obliged to inform Customs Committee on:
- setting new foreign tourist routes, planned places of crossing and customs registration of citizens;
- organization of certain tourist groups departure with presentation of lists of persons to tore;
- licenses given to republican and foreign organizations to conduct tourist activities in the territory of Uzbekistan;
- long-term plans of tourism development in the territory of the Republic and estimated number of tourists,

Upon the agreement with the heads of territorial managements of the State Customs Committee the representatives of Uzbektourism can stay in customs control zones during the time of customs registration of tourist groups.

Instruction on the Order of calculation and payment of VAT on the goods (works and services) produced and sold (with amendments). Inured on 9 May 2003. It was registered by the Ministry of Justice of the Republic of Uzbekistan on 29 April 2003 No. 1238. The services of sanatoriums and health resorts rendered above the price of a voucher to these organizations are exempted from the VAT.
To tourist-excursion services include services of guide organizations included in the cost of the voucher for tourist services. Tourist services include transport service, accommodation, meals, excursion service, cultural, sports programs and other services recorded in the Contract on Providing Tourist Services.
The given privilege is also applied to additional tourist-excursion services rendered by the specified organizations to tourists over the services included in the contract..
National program of tourism development in Uzbekistan for the period till 2005. The decree of the President of the Republic of Uzbekistan dated 15 April 1999 No.UP-2286. The document stipulates:
- To exempt for the period of 3 years tourist organizations, irrespective of the form of ownership, from the payment of customs duties for hotel equipment and vehicles for the purposes of tourism.
- Umid foundation to provide annual sending of students to leading foreign countries for training in tourist industry specialties.
- To the Ministry of Foreign Affairs, Ministry of Finance. Ministry of Culture of the Republic of Uzbekistan and Uzbektourism to introduce a position of Cultural and Tourism Adviser in the embassies of the Republic of Uzbekistan in the USA, Japan, Great Britain, Germany, France and Italy. To take into account, that 50% of Adviser's salary will be paid from the funds of Uzbektourism.
The Decree of the President of the Republic of Uzbekistan dated 15 April 1999 No.UP-2286 "On the state program of development of tourism in Uzbekistan for the period till 2005", have approved basic directions of activities in tourism. Part of these activities are already carried out, in particular, the Law on Tourism, entry-exit regulations for foreign citizens, simplification of customs and other procedures for tourists are approved, investment programs of Uzbektourism have been implemented.
However marketing researches in tourism, standardization and certification of tourist services, publishing of specialized periodicals are weak. The Institute of the World Tourism Organization on improvement of professional skills of industry personnel has not been created, organization of vehicles rent to tourists has also not been implemented by Uzbek-tourism, and the introduction of the statistics, allowing estimating economic value of tourism, is one of stumbling-blocks in the government system.
This year it is planned to approve the Program of Tourism Development till 2010, which should become a new stage of Uzbek tourism industry.

 The Resolution "On further improvement of Uzbektourism". This is a resolution of the Cabinet of Ministers dated 28 July 2004 No.360. The primary goals of Uzbek-tourism are determined as the following:
- to ensure common state policy in tourism" assistance in development of tourist services infrastructure;
- realization of the state programs of tourism development, programs of protection and safety of tourists, inter-depart mental and interregional coordination of tourist activities;
- certification of tourist services;
- realization of public awareness policy in tourism;
- attraction of foreign credits and investments into
The sphere of tourism development, development of long-term cooperation programs with foreign countries, and foreign companies;
- realization of a complex of measures on training and retraining of professional skill of the staff for tourism
- assistance to development of the knowledge of different branches of tourism.
Financing of costs of central administration and regional branches of Uzbektourism is made from the receipts from licensing, certification, own economic activities and other sources, which have been not forbidden by the legislation,
  The off-budget fund for tourism development is being created; the source for its establishment is tourist fee from travel companies and hotel facilities. Tourist fee is collected from:
- travel companies for each tourist leaving the Republic of Uzbekistan;
- hotel facilities one time for each tourist irrespectively of the period of residing;
- travel companies for each tourist not being the citizen of the Republic of Uzbekistan and entering the territory of the Republic of Uzbekistan.
  Payers of tourist fee pay tourist fee in national currency "soum" in fee size equivalent to US$1 for each tourist at the rate of the Central Bank of the Republic of Uzbekistan on the day of payment.

Procedure of simplified registration of transit visas for foreign air passengers of Uzbekistan Havo Yollari national airline. The order of the Minister for Foreign Affairs dated 11 July 2001 No.639. The Instruction on one working day transit visas (till 72 hours) processing to foreign air passengers-clients of Uzbekistan Havo Yollari who transit through international airports of Uzbekistan to the third countries was approved.

The Order on entrance to and departure from the Republic of Uzbekistan of foreign citzens and persons without citizenship. The Resolution of the Cabinet of Ministers dated 21 November 1996, No.408. Foreign citizens, including citizens from CIS countries and without citizenship can enter Uzbekistan and leave on the reasons of private and business affairs, as tourists, for rest, study, work, treatment and on a permanent residence.

  Entry, entry-exit and transit visas are issued by the consular officers. Multi-entry visas for the period of one year are issued by the Ministry of Foreign Affairs.

The Resolution "On measures to develop modern international tourism infrastructure in the Republic of Uzbekistan". The resolution of the Cabinet of Ministers dated 3 June 1995, No.210. According to the document:
- Uzbekistan Havo Yollari, Uzbekistan Temir Yollari, State Tax Committee together with Uzbektourism jointly wish other related ministries (a) in one month are to develop and approve the order on granting privileges on air - and railway transportation of tourists and fare discounts for tourist groups for national and international lines; (b) in three-month term are to organize at the airports, railway stations of Tashkent, Bukhara, Samarkand, and Urgench, and at the frontier railway stations special customs areas to services tourists, and equip them with modern customs technical equipment;
- Uzavtodor, Uzavtotrans, Uzbektourism, Uzbeksavdo, Uzbekbirlashuv, the Ministry of Communications, Ministry of Health of the Republic of Uzbekistan, Uzgosnefteprodukt, regional and Tashkent city administration have one month to develop the comprehensive programme for 1995-1998 on improvement, qualitative operation of roads and creation of services along the automobile route Tashkent-Samarkand-Bukhara -Urgench-Khiva to serve tourists;
- The Ministry of Health together with Uzbektourism shall ensure on a contractual basis provision of high quality medical service to tourists; together with fee Ministry of Finance and Uzbektourism in one month to introduce proposals on medical insurance of national and international tourists;
- The University of World Economy and Diplomacy together with Uzbektourism shall open educational industrial centre "International Tourism" for training on a contractual basis highly qualified staff m international tourism;
Uzbektourism shall open representation offices in the countries with which the Republic of Uzbekistan has direct air communications.

Tax Code of the Republic of Uzbekistan. According to the document:
  Article 92. Privileges under the property tax of legal persons. The tax is not imposed of the property of legal persons:

- newly created, engaged in tourist activities in the cities of Samarkand, Bukhara, Khiva and Tashkent, for the period from the moment Of creation before receiving first profit, but for the term of not more than three years from the moment of their registration. In case of liquidation of these legal persons before the expiration of one year after establishment of a grace period, the amount of tax is withdrawn in full size for the whole period of their activities.
  Article 102. The tax bearers exempted from the payment of land tax. Legal persons are exempted from the payment of land tax:
- newly created, engaged in tourist activities in Samarkand, Bukhara, Khiva and Tashkent cities, for the period from the moment of creation before receiving first profit, but for the term of not more than three years from the moment of their registration. In case of liquidation of these legal persons before the expiration of one year after establishment of a grace period, the amount of tax is withdrawn in full size for the whole period of their activities.

Zulfla Rakhimova, researcher of Traveler's Association Rabat Malik. Nadira Ishanova, student of Tashkent State Economical University.
BVV Business Report, Newspaper.
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