OREANDA-NEWS. April 21, 2009. The International Business Council hold an Open Meeting on the subject of “Components for success in the tourism sector: good laws and state support”, reported the press-centre of International Business Council. 

The discussion was attended by representatives of the State Agency for Tourism, deputies of the Parliament, heads of travel companies and representatives of public and international organizations.

“The resources of tourism sector, as well as mineral, hydro-energetic and other resources, require a very careful treatment,” said Goran Sumkoski, the IBC Acting Executive Director,  while opening the meeting.

Member of Parliament, Narynbek Moldobaev, called for the adoption of the law, which “aims to protect the legal interests of travel agencies, their rights and security”. The MP believes that there should be a legal framework for tourism companies, because “half of the tourism companies work in the shadow economy and do not pay taxes, reaping the benefits from Free Economic Zones”.
 
The State Agency for Tourism, one of the main developers of the draft law, also supports the early adoption of the law, especially in light of the fact that the new tourist season is soon to begin. The draft was sent to 36 tourist firms, and most of them sent their comments and suggestions to the Agency.

Representatives of the business community however criticized the new document, suggesting that the new law does not promote the development of the tourism sector and a significant number of changes need to be made to it.

The draft Law “On Tourism”, which was adopted by the Kyrgyz Parliament at the first reading, differs greatly from the CIS model law which served as the basis for the development of the Kyrgyz version, said Vladimir Komissarov, President of the Silk Road Tourism Association.

According to Komissarov, the draft law in many parts contradicts the law “On basic technical regulations.” The new document also duplicates some of the rules and provisions of the Constitution, Civil Code, and the Law "On Entrepreneurship." Rather than promoting the development of the industry, the draft law establishes new administrative barriers, said Komissarov.
 
Representatives of the Union of Entrepreneurs of Kyrgyzstan (UEK) shared his opinion. Given the world economic crisis, the flow of tourists is expected to decrease and the UEK believes that the adoption of the new law would further complicate doing business in the tourism industry.

Under the law, about 90 percent of tourism resources will be transferred to the local authorities, which will have to develop tourism development programs in the regions. Michael Khalitov, Chairman of the UEK Tourism Council, expressed doubts that local authorities are ready to efficiently and effectively utilize tourism resources. To cope with the problems in tourism, it is not enough to adopt a new law “On Tourism,” it is also necessary to make appropriate amendments to the Civil Code, Tax Codes and the Law "On Entrepreneurship," Khalitov said.

The law does not contain measures that would contribute to the development of tourism in the country, said Emil Umetaliyev, President of both “Kyrgyz Concept” and the Bishkek Business Club. Umetaliyev has suggested the inclusion of some provisions into the law which will help reduce the tax burden for tour operators, increase the flow of tourists from abroad and reduce prices for services.

According to Umetaliyev, Kyrgyzstan could open its airspace to more foreign airlines, introduce a visa-free regime for citizens of the world’s most developed countries and facilitate the procedure of border and customs controls. Moreover, Kyrgyzstan could become a service destination center for a great number of travelers who are going to China. To implement this project, good roads need to be built.

The tourism sector needs a state program developed by economists, financiers and experts, as well as representatives of local authorities and government. Domestic and foreign investors could invest in this program. After taking those measures we can talk about adopting the new Law “On Tourism” concluded entrepreneurs.

The decision was therefore taken to postpone consideration of the law until the autumn.