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    Improving Education, Skills, and Employment in Tourism: Almaty–Bishkek Economic Corridor
    Improving Education, Skills, and Employment in Tourism: Almaty–Bishkek Economic Corridor
    Improving Education, Skills, and Employment in Tourism: Almaty–Bishkek Economic Corridor
    Ebook119 pages1 hour

    Improving Education, Skills, and Employment in Tourism: Almaty–Bishkek Economic Corridor

    By Asian Development Bank

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    About this ebook

    This report measures the skills gap among tourism industry workers and the resulting opportunity costs along the Almaty–Bishkek Economic Corridor in Central Asia. The skills gap analysis identifies an annual lack of about 8,500 trained professionals in the tourism industry along the region which is causing opportunity costs of more than $30 million per year. The Almaty–Bishkek Economic Corridor has an exceptional heritage and wealth of culture and nature. This combination results in a high potential for tourism development that is largely untapped.
    LanguageEnglish
    PublisherAsian Development Bank
    Release dateMay 1, 2019
    ISBN9789292615710
    Improving Education, Skills, and Employment in Tourism: Almaty–Bishkek Economic Corridor

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      Book preview

      Improving Education, Skills, and Employment in Tourism - Asian Development Bank

      1

      Skills for Tourism Sector Overview

      We are looking for potential rather than skills.

      - General manager of five-star hotel in the Almaty–Bishkek Economic Corridor

      The Almaty–Bishkek Economic Corridor (ABEC) has an exceptional heritage and wealth of culture and nature. This combination results in a high potential for tourism development, which is largely untapped. Only the historically developed mainstream beach and health tourism at Lake Issyk-Kul may to some degree be considered as a more intensive form of developed tourism in ABEC.

      Limitations and delimitations of this report—additional sector overview with focus on skills for tourism (S4T). Even though tourism data and methodology are patchy in Kazakhstan and the Kyrgyz Republic, various reports and publications, mostly by bilateral and multilateral development partners, exist and are listed in the references section of this report. The focus of this research is on skills and, to some extent, jobs. Therefore, those components, data, and reports of the tourism sector will be primarily highlighted insofar as they are relevant for skills development and employment. In addition, new employment and skills data, and data on the tourism industry in general, will be offered if respective data were not available in existing reports.

      On the importance of skills for sector development. Skills development is an important binding constraint for almost any sector development. The more labor-intensive and complex a given sector, the more important skills of the respective workforce become. Put into context, for tourism sector development in ABEC, a greater in quantity and better skilled workforce is paramount. Tourism products in ABEC are presently suffering from a low quality-of-service reputation while perceived as relatively expensive. Improved skills will be essential to develop the sector, improve client satisfaction, develop niche markets, and attract more regional and international tourists. Marketing communication and branding is another key activity for sector development, especially for regional tourism. However, if the quality of the tourism products is not improving, it would be difficult to build up and sustain the sector’s image.

      1.1 Structure of Tourism Market in Almaty–Bishkek Economic Corridor

      Generally, the tourism industry has had a robust 4% long-term growth over the last decades. In recent years, the industry grew worldwide at about 6% (ITB 2016). According to the World Economic Forum (WEF), the Kyrgyz Republic recorded 3,051,000 international tourist arrivals, which accounted for the tourism industry’s about $100 million gross domestic product (GDP). On the other hand, Kazakhstan received reportedly 4,559,500 international tourist arrivals, leading to the tourism industry’s $3,077 million GDP. For the Kyrgyz Republic, the data suggest only about $33 spent per tourist arrival, while in Kazakhstan, each tourist spent about $667, about 20 times as much. Given economic disparities, this difference still appears to be very high indeed. It seems more realistic to assume that the Kyrgyz Republic’s tourism GDP is about $1 billion, when comparing the arrivals of both countries.

      For ABEC, but also for both countries individually, by far, the biggest existing tourism markets are the domestic ones. Domestic tourists in Kazakhstan account in 2015 for 83% of tourist arrivals. In the Kyrgyz Republic, this figure is estimated at 73% (Choi 2016; and UNWTO 2017a, 2017b, 2017c, 2018). Another high concentration is revealed when unpacking the international tourist arrivals. The following regional breakdown applies according to United Nations World Tourism Organization (UNWTO) data (UNWTO 2017a, 2017b, 2017c, 2018) and is illustrated in Tables 1 and 2. International leisure tourists account only for about 50,000 tourists a year in Kazakhstan. The vast majority of international arrivals are business tourists who also consume leisure tourist offers to some extent.

      Table 1: Overview of Incoming Tourists to Kazakhstan by Country

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