Investment needed to support continued growth of Uzbekistan’s high-flying tourism industry
Bakhtiyor Fazilov is a leading Uzbek business entrepreneur, investor and philanthropist. In three decades he has established a diverse business and investment portfolio in his historic home city of Samarkand, across Uzbekistan and internationally.
He has business interests stretching across a diverse range of industries: the international oilfield services group Eriell, Uzbekistan’s largest construction company Enter Engineering, the world-class multi-purpose resort Silk Road Samarkand, state-of-the-art Samarkand International Airport, as well as investments in various sectors, including aviation, banking, hospitality, leisure, logistics terminals, renewable energy and others. He spoke with Real FDI about Uzbekistan’s burgeoning tourism industry and the opportunities it offers.
What significant trends do you observe in the tourism sector of Uzbekistan?
In recent years, thanks to the Uzbek government initiatives, there has been a noticeable increase in the flow of tourist visitors to Uzbekistan, especially from neighboring countries, plus Turkey, Kazakhstan, China and from further afield. This has been supported by the launch and expansion of Air Samarkand flights from various countries, while a flow of guests from European markets including Italy, Germany and France has increased significantly. Also, Uzbekistan has introduced a visa-free regime with many countries, allowing people to visit for up to 30 days.
Official tourism figures recently released showed 6.5 million foreign visitors to Uzbekistan in the first 10 months of 2024 – up by more than 17% on 2024, with the biggest growth coming from China.
We are seeing growing interest of guests from other countries wishing to experience the cultural heritage and historical sites of Uzbekistan, such as Samarkand, Khiva and Bukhara, which are centres of ancient culture and architecture. Among them, a special place is occupied by Samarkand, which in recent years has become a popular destination for travellers from all over the world. Our Silk Road Samarkand Tourist Complex has also become one of the key reasons for the increase in the number of tourists to the beautiful city of Samarkand.
In addition to classic cultural and historical tourism, Uzbekistan is also developing such areas as industrial, geological, scientific, medical and eco tourism – areas that are all driving growing visitor numbers. As part of the development of medical tourism, the MESCA Foundation team is implementing a project for the construction of the National Institute of Eye Diseases in Tashkent. In addition, a new spa center is being created in Silk Road Samarkand, the concept of which includes a unique BIO lake project, which promises to become another pearl of the region.
How important is the tourism industry for the economy of Uzbekistan? Has its contribution to the development of the economy increased?
In my opinion, tourism has become one of the key drivers for the economy of Uzbekistan under President Shavkat Mirziyoyev’s reforms. According to the Government’s ‘New Development Strategy of Uzbekistan for 2022-2026’, our country seeks to triple the volume of services in tourism, creating about 3.5 million new jobs. In particular, the number of domestic tourists is expected to reach 12 million by 2025, while it is anticipated there will be more than 9 million foreign tourists.
This means not only an increase in tourist flows, but also a significant expansion of infrastructure, improvement of the quality of service and the creation of additional jobs in various tourism-related industries. Much of this infrastructure is now actually in place – with the new international airport in Samarkand, alongside high speed rail and other modern route infrastructure, and tourism and visitor-related amenities. One of the striking examples of such progress is the development of air traffic: for example, Air Samarkand is actively working to expand its route network across geographies, improve transport accessibility and create comfortable conditions for tourists visiting Uzbekistan.
The tourism sector has a huge potential for developing the country’s economy and improving the quality of life for the citizens of Uzbekistan.
Which segments or types of tourism do you prefer as an investor?
Not only as an investor but also as a proud Uzbek who grew up in Samarkand, I prefer eco tourism, cultural tourism, as well as medical and MICE tourism. Pilgrimage tourism is also a growing area of tourism in Uzbekistan, with visitors from Turkey, Pakistan, Malaysia, Iran, Indonesia and the United Arab Emirates. In my opinion, these areas contribute to the preservation of Uzbekistan’s values and support sustainable development, which is also important for long-term economic growth.
These types of tourism allow you to take care of nature, preserve cultural traditions and strengthen ties with other countries, some of which have existed for many centuries along our historic Silk Road. In addition, they open up prospects for sustainable economic growth by promoting infrastructure development, attracting foreign investment and creating new jobs for local residents.
What are your main investment projects in the tourism sector? Are they under development?
Our team’s key investment projects in the field of tourism are the Silk Road Samarkand Tourist Complex, Samarkand International Airport (which is operated by Air Marakanda), Air Samarkand, and the MESCA Foundation. All are in place, provide first-class support for visitors and continue to develop.
Silk Road Samarkand is a project that combines the rich historical and cultural heritage of Samarkand with the modernity that is now demanded by international visitors. Comfortable conditions have been created for tourists here for living, recreation, acquaintance with culture and national cuisine, as well as leisure and health procedures.
Samarkand International Airport plays an important role in improving the transport accessibility of the region and its air infrastructure. Air Samarkand provides direct and comfortable flights, and is now contributing significantly to the growth of tourist flow to Samarkand.
In addition, medical tourism is actively developing in the country, and the MESCA Foundation plays an important role in this direction, contributing to the improvement of the quality of medical services. For example, the new National Institute of Eye Diseases in Tashkent will become a significant way of attracting international patients and strengthening Uzbekistan as a medical tourism destination.
These projects are aimed at providing essential care for patients, alongside economic growth, job creation and improvement of the health infrastructure in our country.
What are the main features or attractions of Uzbekistan as a tourist destination?
Uzbekistan is a tourist destination with a rich culture, incredible landscapes and history that dates back many generations. Cities such as Samarkand, Bukhara and Khiva are symbols of the Great Silk Road, which have preserved monuments of world historical significance, highlighted by the UNESCO protected status of five cultural and two natural sites that are named on the World Heritage List, alongside 32 other properties on its tentative list.
The culture of Uzbekistan also impresses through its national cuisine, crafts and hospitality, the variety of natural landscapes, from mountains to deserts, as well as the temperate climate which is ideal for ecotourism.
What investments are needed to support the future growth of the tourism industry in Uzbekistan? What opportunities are there for investors?
In my opinion, for the continued growth of the tourism industry in Uzbekistan, investments are needed in key areas such as the development of further hotel infrastructure, namely through the construction of modern hotels and the improvement of living conditions. As a continuation of this topic, the development of transport and logistics through airports, trains, and other domestic transfers, are also necessary as we improve access through more international and local flights. It is vitally important that we carefully develop tourist facilities that marry together and combine historical heritage with modern services for tourists. And, understanding modern trends, it is important to note the contribution of digitalization, with the introduction of technologies for online booking and management of tourist flows.
I would like to note that our projects related to the development of transport and tourism infrastructure, such as Silk Road Samarkand, Air Marakanda and Air Samarkand, have already shown the effectiveness of private investment involvement with the state in public-private partnerships. These initiatives provide investors with opportunities to participate in large-scale and promising projects with the essential backing of our state government.