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TOURISM OF KAZAKHSTAN AS A BRANCH OF ECONOMY AND THE WAYS TO OPTIMIZE ITS DEVELOPMENT

 

Zekenova Dilda Abutalipovna

Student of Zhambyl Innovation College, Taraz, Kazakhstan

Scientific director – М. Abeeva

 

Tourism is a branch of the service sector in which the enterprises and organizations satisfy the needs of tourists for tangible and intangible services. Tourism products are complex services containing interrelated elements such as transportation services, hotel management, trade (including catering), accommodation services for visitors, package tour, cultural activities, sports and recreational activities, health and medicine, and other institutions and enterprises [1].

In the present days, tourism is unevenly developed in different countries. As a rule, tourists come from economically-developed countries, which, in the terminology of the WTO (World Tourism Organization), are sources of tourists. These include those states where the proportion of citizens traveling abroad exceeds 10%. There are not many countries like this (approximately 16-20), but their list is systematically increasing. Moreover, aside from the states of Western Europe, North America and Japan, there were some Eastern European and Persian Gulf countries included in the list. Now their place is taken by new leaders who have achieved a good pace of development - China, the Republic of Korea, Singapore and many significant others [2].

From introspect; tourism in Kazakhstan is not a major component of the economy. According to the British newspaper The Guardian, tourism in Kazakhstan is "hugely underdeveloped" despite the attractions of the country's dramatic mountain, lake and desert landscapes. This article defines obvious problems that exist in the field of tourism and offers the steps of optimization.

From a bird’s eye view, The Republic of Kazakhstan has all the prerequisites for the development of tourism: a favorable geographical position (proximity to the main guiding markets - Europe and Asia), a vast territory and diverse landscapes, rich cultural and historical heritage, outstanding hospitality, excellent cuisine and relatively low cost of labor.

According to the WTTC report, domestic travel expenses in 2017 amounted to 3.4 billion dollars. In addition to this, the direct contribution of tourism in Kazakhstan’s GDP as of 2017 was $ 2.8 billion [2].

Tourism was recognized as one of the most important economic clusters and entered the list of seven priority non-primary sectors of the economy of Kazakhstan upon the approval of the concept of development of the tourism industry of the Republic of Kazakhstan until 2023.

The concept of development of the tourism industry of the Republic of Kazakhstan until 2023 was established with the aim of forming a unified institutional, methodological, and organizational basis for the formation of a modern, highly efficient and competitive budget tourism industry of the Republic of Kazakhstan, including basic principles and approaches to its implementation [2].

During the process of research the SWOT and PEST analysis were used to clarify the exact state of tourism in Kazakhstan.

 PEST analysis

Political

Today, citizens of politically developed countries have the right to a visa-free entry into Kazakhstan for tourism and other valid purposes. Until the end of 2018, 72-hour visa-free transit was introduced for citizens of China and India. As a result, the transit flow from China increased by 60%, the check amounted to 350-500 dollars.

Economical

The Republic of Kazakhstan takes 17th place among 20 countries of the CIS in tourism.

Direct contribution to tourism in GDP in 2017 is 2.8 billion tenge.

Domestic tourist expenses in 2017 amounted to 3.4 billion dollars.

Socio-cultural

About 100.9 million people work in this area, corresponding to 11 jobs created in the tourism sector in the world.

Technological

Kazakhstan is slowly but surely advancing virtual tours throughout the country, on the most attractive tourist sites in 3D. Internet sites like 3dtour.kz, virtualtour.kz offers such eye-catching 3D trip to the country.

 

SWOT analysis

Strengths:

- strong state support

- stable political situation

- abundance of recreational resources

- hospitality of the Kazakh people

Weakness:

- low level of service

- high cost and inappropriate service

- low scientific and research potential

- non-compliance with the requirements of tourism

Opportunities:

- build a new mosque in Astana with the largest dome in the world increasing the flow of tourists

- support of small and medium businesses in Kazakhstan

- increase in percentage of purchases of domestic product

- launch the program “Doing Business” that will correct the disadvantages of tourism business

- construct tourist centers, complexes and accommodation facilities in Burabay, Jean-Ile, Kenderli, Alakol.

Threats:

- unprofitable use of resources

- the threat of increased competition when foreign travel companies enter the domestic market

From the SWOT analysis we can conclude that the potential of tourism in RK is really huge, however we still can not fully realize it . Basically, the government pays money to improve large major cities like Almaty and Nur-Sultan (former Astana). From 2016-2017, about 300 billion tenge was invested in the tourism industry. On the contrary, foreign tourists can’t be enticed by this. Instead, a good suggestion is investing in historical sites such as the Bes-Shatyr Mounds, the ancient city of Otrar, Akyrtas, as well as the Charyn Canyon. All these places are incredibly beautiful in their nature [3].

In the process of research work the following problems were identified:

- Weak legislative base;

- The high price of air tickets;

- Low competitiveness;

- Poor quality service;

- Poor quality auto tour;

- The poor condition of transportation;

- Incorrect program provision;

- Wrong price policy. Sometimes, prices for some services do not correspond to its quality at all.

Another problem is having no distinctive object – giving a striking identity to Kazakhstan. For instance, UAE has the Burj Khalifa, the tallest building in the world whilst this country has vast unique natures which are not ideally utilized. This doesn’t mean the need to come up with something big. It’s just the right time to learn how to use some remarkable places as recreational resources like building a roller coaster or Ferris wheel in Burabay. Imagine how picturesque it will be to see all this nature from a height.

The marketing structure of our country is not developed. During the survey, only 2 out of 12 foreigners could know about Kazakhstan. Therefore, a competent advertising policy is one of the key aspects of tourism development for our country [3].

Another country to consider is Turkey. A well-thought-out personnel policy has become a characteristic feature of the development of the tourism business in Turkey. In a short span of time, highly qualified guides were trained with knowledge of the main European languages. Foreign languages were obliged to study everyone who was involved in the tourist business, in particular, bus drivers, taxi drivers, sellers in supermarkets, and even policemen. According to the plans for the development of tourism, more attention was paid to various sights and tourist centers. An example of this is the aforementioned Antalya. In the late 1970s, it was a small town that did not even have a rail link with other cities in Turkey. Previously, there was only a small fishing port. With the advent of foreign and public investment, the situation has changed tremendously. In the late 1980s, an international airport was built in Antalya, a network of five-star hotels appeared, the port was modernized, and tourist liners began to receive them. Today, Antalya ranks first in attendance among Turkish tourists [4].

In connection to this, it is a must to develop sparsely populated areas, not just big cities. The infrastructure also needs to be developed. The construction of huge hills, which can show from the height of the wealth and beauty of our beautiful country. As well as on the basis of statistics, foreign workers visiting Kazakhstan, and returning to their country cannot tell anything about the country itself. They themselves have not been to anywhere else, except for cities and offices. Therefore, there are proposes to promote travel and sightseeing for foreign workers together with families.

For Kazakhstan, it is important to develop both inbound and domestic tourism: inbound provides foreign exchange earnings to the country's economy while domestic allows the population of the state to recuperate.

The Deputy Chairman of the Board of the National Palace of Directors noted that when developing a program in the section of systemic measures, it is necessary to pay attention to the development of infrastructure, improving the quality of service through the introduction of a rating system, measures to the development of the artisanal cluster. 73% of those entering Kazakhstan make trips with business and professional purposes. Many people come and leave without having time to consider Kazakhstan. Therefore, having arrived in their homeland, they cannot tell anything about it. So why not to make free tours or expeditions for them? This is also a separate, very effective form of marketing.

Since the citizens of Kazakhstan are very hospitable and friendly people by their nature, it is good to show this hospitality outside the country. There is a system in Japan that allows the Japanese to find a family that can shelter a guest during his trip. In this case, all the data of the participants in this system are checked and this is an absolutely safe operation. The family who sheltered the tourist, receives the stars for their hospitality. By this evaluation system, the family that sheltered a tourist can itself go to foreign countries with a greater likelihood of finding housing and people who shelter them [5]. The same way, it is very timely to introduce this hosting system into our country.

In Kazakhstan, there is a disproportion in the development of various types of tourism mostly in the outbound tourism, which makes it difficult for the import of capital.

From the research we can conclude the sectors that need to be improved in Kazakhstan: the roads, the infrastructures of sparsely populated areas, conditions, and other sectors like these. Moreover tourism field needs a global promotion. That is to say, the marketing system should be updated due the to modern innovational marketing strategies.

Following this work, we propose to start developing domestic tourism among the citizens of our country, to attract foreign guests, and to focus more on natural wealth and attractions.

List of used sources

  1. Chudnovskiy A.D. Management of informational technology in tourism.  Training manual./ A.D. Chudnovskiy, M. A. Zhukova. M.,2007.-104 p.
  2. Analysis of tourism in Kazakhstan -2017. http.articlekz.com
  3. Tourism of Kazakhstan – 2017-2018: Statistic compilation on kazakh and russian languages:- Astana,  Statistic Agency of Republic of Kazakhstan, 2017-2018 - 133p. http://www.stat.gov.kz
  4. Tourism of Turkey, development of tourism in Republic of Turkey - 2016. http://www.worldluxrealty.com
  5. http://tourlib.net/books_tourism/senin06.htm 

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