Kyrgyzstan Aims to Attract Up to $150 Million Annually in Tourism Without Sacrificing Nature Reserves

The authorities of Kyrgyzstan have submitted two documents for public discussion that should determine the future development of tourism in the country. One provides for the creation of special tourist zones with broad benefits for investors, the second introduces a 20-year moratorium on reducing the area of specially protected natural territories.

Preferential tourist zones

The draft law “On Special Tourist Zones” proposes to create territories with a special legal regime in Kyrgyzstan where investors can implement large projects in tourism, sports and recreation on preferential terms.

It is assumed that special tourist zones can be created on state, municipal and private lands. These may include mountainous areas, areas near rivers and lakes, as well as some lands of specially protected natural territories — subject to compliance with environmental requirements. The decision to create each zone will be made by the Cabinet of Ministers.

Residents are offered a wide package of preferences. Land plots are proposed to be provided free of charge for up to five years with subsequent transition to a lease model. In addition, the Cabinet can establish special tax regimes, benefits on insurance contributions and other state support measures.

Companies that submit a business plan, pass a competitive selection and sign an investment agreement will be able to obtain resident status. One of the mandatory conditions will be the creation of jobs: at least half of the employees must be citizens of Kyrgyzstan.

The authors of the draft law expect to create from three to five tourist zones, annually attract $100–150 million in investments and ensure the creation of 5–10 thousand new jobs. According to the developers’ calculations, by 2030 the contribution of tourism to the country’s economy should increase from the current 336 million soms (about $3.8 million) to 1.5–2 billion soms (approximately $17–23 million). At the same time, today foreign direct investment in the tourism sector is only about $11 million per year.

It is emphasized that development is planned according to a single master plan. This, according to the developers, will avoid chaotic development of popular tourist areas and provide in advance for roads, engineering networks and necessary infrastructure.

Ban on reducing nature reserves

At the same time, the Cabinet of Ministers submitted for public discussion a draft resolution on introducing a 20-year moratorium on reducing the area of specially protected natural territories.

The document prohibits reducing the area of state nature reserves, national parks and other protected areas, as well as lowering their environmental protection status. Exceptions are proposed only in cases of expanding such territories, eliminating the consequences of natural disasters, as well as decisions related to state security and defense.

In addition, the Ministry of Natural Resources will continue constant monitoring of the boundaries of protected areas, and state bodies and local governments will be prohibited from independently making decisions on their reduction.

According to the developers, the need for a moratorium arose due to an increase in proposals to change the boundaries of specially protected areas for the construction of infrastructure, development of deposits and other economic projects.

The authorities believe that such changes could lead to the degradation of natural ecosystems and a reduction in biodiversity. At the same time, the preservation of natural areas is seen as one of the factors for the long-term development of ecological tourism and the fulfillment of Kyrgyzstan’s international environmental obligations.

Both projects are still at the stage of public discussion. After the discussion is completed, the documents must undergo further consideration in accordance with the established legal procedure.