Mirziyoyev urges to smoothly restart tourism

President of Uzbekistan Shavkat Mirziyoyev on Wednesday observed the presentation of the progress in restarting tourism and the privatization of state assets. According to the World Tourism Organization, international tourism would reduce by 89% by the end of 2020. The effects of the pandemic have already resulted in a suspension of 1.5 thousand tour operators and 1.2 thousand hotels. President Mirziyoyev discussed in detail on governments plans to mitigate the effects of Covid-19 on the tourism industry.

Post-COVID will have resulted in a loss of 74 million jobs, and the total financial losses in the industry are expected to rise of more than $800 billion.

Since March 16 this year, Uzbekistan has closed its borders to foreign and local tourists. This has seriously affected the income of more than 250 thousand people, including guides, artisans, workers of architectural monuments and spa, catering facilities, transport and others.

To mitigate the effects of the pandemic 1,750 entities were granted exemptions on property, land and social taxes amounting to more than $5.9 million. These exemptions are temporary to help businesses survive.

In study for re-establishment of tourism foreign experiences has been studied and sanitary and epidemiological safety for tourists “Uzbekistan, Safe travel guaranteed” project has been initiated.

The President got acquainted with the presentation of this project and he also provided on plans for the restoration and development of domestic tourism.

Shavkat Mirziyoyev emphasized on the importance of allowing domestic tourism between regions with a “green” status. Instructions were given for organizing recreation centers in mountainous areas and on the coast of lakes using lightweight structures. Together with the mayors, the deployment of recreation centers will be determined, and the relevant data will be posted on the electronic portal.

At the second stage, it is necessary to create a list of countries with a stable situation on the coronavirus and gradually restore tourist relations with them, the meeting indicated.

For the tourism industry to recover, Exemption from tourist fees will be extended until the end of the year. Also, enterprises of the industry, when calculating income tax, will be allowed to deduct losses incurred in 2020-2021 from the profit of subsequent years.
Hotels will be given subsidies in the amount of 10 percent of the cost of the services they provide. In addition, they will subsidize up to 10 percent of payments on loans allocated to working capital.

During the presentation, information was provided on plans for the privatization of state assets, the identification and effective use of vacant land and the implementation of corporate governance in state enterprises.