CAREC Tourism Strategy 2030

• Publisher: Asian Development Bank
• Year: 2020
• ISBN:
  9789292625665
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

The Central Asia Regional Economic Cooperation (CAREC) Tourism Strategy 2030 sets out the long-term vision, objectives, programs, and targets to promote sustainable, safe, and inclusive tourism development in the region and enhance its attraction as a competitive tourism destination globally. It builds upon countries' efforts to develop their tourism sectors as well as existing initiatives being implemented by development partners. It adopts a holistic approach, covering five strategic pillars: connectivity and infrastructure, quality and standards, skills development, marketing and branding, and market intelligence. The strategy also mainstreams six cross-cutting themes: health, safety, and security; digitalization; gender equality; environmental sustainability; private sector participation; and universal access to tourism services.

CHAPTER V

Strategic Pillars of the CAREC Tourism Strategy 2030

40. The strengths of CAREC countries as tourism destinations arise from their wide range of unspoiled natural assets; historic cities and United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Sites; diverse ethnic groups and cultures; quality of lodging in capital cities; and strong government support for tourism development. Of particular importance is the countries’ low population density, which allows the promotion of the region as a safe tourism destination and acceleration of post-COVID-19 recovery for each country’s tourism sector. In spite of the slowdown in tourism because of the COVID-19 pandemic, the growing interest of travelers in new experiences and off-the-beaten track destinations, and the use of information technology to access tourism-related information and purchase tourism products and experiences, will continue playing a key role once international travel resumes. CAREC countries can take advantage of these trends while further exploiting the international recognition of the Silk Road by expanding the range of itineraries based on this well-known historical route.

41. Several factors, however, represent a significant barrier to the development of the tourism sector in the region. Access to and between CAREC countries is a fundamental requirement for national and regional tourism to grow. Transport facilities need to be improved to internationally accepted standards, with services on a regular and reliable basis. Border control arrangements and visa requirements should be tourist-friendly and more uniform across countries to facilitate intra-regional tourism and multicountry trips. This is not the case in all CAREC countries. Inconsistent quality of tourism infrastructure and services, skills shortages, and a challenging business environment are also key factors hindering tourism development in the region. Furthermore, market knowledge of CAREC countries is generally low (though growing in some instances) and necessitates promotional actions to create awareness of and interest in the tourist attractions of the countries on a regional basis.

42. To achieve the long-term tourism vision (para. 34), it is necessary to develop a strategic framework that builds on the region’s main tourism strengths, addresses its main weaknesses, captures the main opportunities, and is resilient to the main threats. The strengths, weaknesses, opportunities, and threats analysis is summarized in Table 2.

Table 2: Strengths, Weaknesses, Opportunities, and Threats Analysis

• Outstanding unspoiled natural assets, and unique tangible and intangible cultural heritage and diversity in all CAREC countries • Low population density, even in capital cities, making it a safe tourism destination • Diversity and uniqueness of nomadic and settled cultures across the entire region, as well as ethnic groups and religions • Historic cities, legacy from ancient empires, and UNESCO World Heritage Sites in all countries • Quality of lodging and other tourism facilities in capital cities • Unknown destination suitable for discovery • Internationally recognized common brand: Silk Road • Local populations highly receptive to welcome tourists • Political goodwill and support from governments for tourism development	• High cost and poor air connectivity between CAREC capital cities and with distant markets • Inadequate transport infrastructure, roadside facilities on tourist routes, last-mile access, tourism services, and signage in tourist sites • Cumbersome and time-consuming border crossing and visa procedures (including in airports) • Lack of brand awareness and image resulting in little knowledge of CAREC countries and a weak perception of them as tourism destinations • Limited capacity on social responsibility practices and preservation of tourism assets • Limited multi-seasonal product development and tourism experiences to appeal to the most attractive market segments • Language barriers and shortages of skilled workers, destination managers, and tourism guides
• Growing international interest in and exposure of the Silk Road • Continued expansion of international tourism, particularly among the fast-growing Asian markets, and travelers’ quest for new experiences and off-the-beaten track destinations • Major regional infrastructure projects under development in the region • Continuing rise of information technology enabling prospective travelers to gather information and interact digitally with potential service providers • Tourism as an industry capable of supporting post-pandemic economic recovery • Donor support for bankable tourism projects	• Growing international health risks and geopolitical conflicts, with high potential impacts in the travel and tourism industry • Climate change with global warming and environmental degradation • Safety and security issues and political instability in some CAREC countries • Economic downturns in primary tourist-generating markets • Natural and human-created disasters

CAREC = Central Asia Regional Economic Cooperation; UNESCO = United Nations Educational, Scientific and Cultural Organization.

Source: Consultant team under Asian Development Bank. 2019. Technical Assistance for Sustainable Tourism Development in the Central Asia Regional Economic Cooperation Region. Manila.

43. Based on the strengths, weaknesses, opportunities, and threats analysis, the CAREC Tourism Strategy 2030 identifies five key strategic pillars with regional scope and where the implementation of regional initiatives and projects can help countries reap the socioeconomic benefits of sustainable tourism development (Figure 6). These pillars are (i) connectivity and infrastructure, (ii) quality and standards, (iii) skills development, (iv) marketing and branding, and (v) market intelligence. Cross-cutting themes will be mainstreamed in all interventions under the five strategic pillars, including safety and security, digital technology, gender, environmental sustainability, private sector participation, and universal access to tourism services. In addition, appropriate institutional and governance arrangements need to be in place to ensure effective implementation, monitoring, and evaluation of the CAREC Tourism Strategy 2030.

Figure 6: CAREC Tourism Strategic Pillars

CAREC = Central Asia Regional Economic Cooperation.

Source: Consultant team under Asian Development Bank. 2019. Technical Assistance for Sustainable Tourism Development in the Central Asia Regional Economic Cooperation Region. Manila.

A. Strategic Pillar 1: Connectivity and Infrastructure

44. Key challenges. Air connectivity is key for the development of the tourism sector in CAREC countries given the landlocked nature of the region. High transport costs, limited air connectivity, cumbersome border crossings, and poor road conditions represent major obstacles to the development of intra-regional and international tourism in the CAREC region. The development of the aviation sector in CAREC countries is constrained by high ground costs, limited competition and protectionist aviation policies, and ineffective regulatory frameworks. Difficulties in land connectivity arise from poor last-mile access conditions to tourism sites, and the need to upgrade road and rail infrastructure in terms of quality and the provision of roadside services. Although investments in upgraded rail connections in CAREC countries are taking place with support from international development partners, freight movement has been the priority. In addition, complex border crossing arrangements (e.g., visa requirements and cost, immigration and passport control systems, and time for clearance) act as a significant deterrent to the development of the tourism sector in the region. Furthermore, most tourism assets are focused on the spring and summer months in regions with good potential for year-round activities; these assets therefore require investments in capacity and quality to reduce their seasonality and improve private sector profitability in tourism businesses.

45. Proposed actions. The CAREC Tourism Strategy 2030 will focus on making CAREC countries more accessible by facilitating border crossing procedures, easing visa requirements, and improving air connectivity by reducing ground costs and harmonizing aviation regulatory frameworks. Regional initiatives and projects under this pillar will be implemented in close coordination with the work being conducted under other CAREC operational clusters, such as transport and trade.³⁸ Proposed areas of intervention will include the following:

(i) Improvement of air connectivity to and between CAREC countries, with development of affordable non-European Union-banned³⁹ air services into gateway airports and capital cities in the region.

(ii) Liberalization of visa regimes and automation of entry requirements that are common across CAREC countries.

(iii) Simplification of border crossing procedures for foreign tourists, improvement of technological means of processing people and vehicle crossings, and upgrade of infrastructure and immigration facilities.

(iv) Improvement of ferry crossings for passengers and vehicles between Caspian cities along the coast for the Caspian Sea as well as accessibility from the seaports to the nearest tourist centers.

(v) Improvement of road and rail connectivity to reduce travel time between tourism clusters and key tourism assets in the region.

(vi) Improvement of public transport and last-mile access, signage, information points, roadside services, and quality and availability of sanitary facilities and toilets⁴⁰ in key tourism attractions and rest areas along tourist routes.

(vii) Rehabilitation of existing tourism assets and development of new tourism infrastructure and facilities in areas with potential for year-round activities within the priority tourism clusters. These initiatives could be implemented through private sector investments or through PPP arrangements with means of de-risking the investments.⁴¹

(viii) Improvement of basic services such as water supply, sewage, and solid waste management in urban and rural areas around the most visited tourism assets of the priority tourism clusters.

(ix) Development of a common registry of tourism assets to allow effective and cost-efficient use by public entities, government officials, travelers, guides, and tour operators.

B. Strategic Pillar 2: Quality and Standards

46. Key challenges. Tourism services in the CAREC region are mostly provided by SMEs, except for the presence of some large international hotel chains. SMEs do not have either the resources or the know-how to implement quality standards. Development and implementation of harmonized service quality and environmental standards aligned with international best practices, including those related to health and safety, are key to raising the competitiveness of the region as a global tourism destination, and attracting tourists from high-spending markets.

47. Proposed actions. One of the main features of the CAREC Tourism Strategy 2030 is the establishment of the common “Visit Silk Road” brand, which requires member countries to work in a coordinated and collaborative manner to protect and foster its brand value. This can be achieved, among other actions, through the establishment of effective and harmonized minimum service quality standards. Regional projects and initiatives within this pillar could include the following:

(i) Development of common minimum quality, hygiene, and environmental standards of tourism facilities, attraction sites, hotels, restaurants, means of transport, airports, trains, and bus stations. This could include the implementation of a star system for accommodation, which allows tourists to have an intuitive understanding of the expected quality level prior to booking, as well as the development of a “Si...