Analysis of Cooperation in the Tourism Sector between Uzbekistan and Kyrgyzstan: a Study of Cross-border Value Chains

airlines in the market. Tourists from abroad are less price sensitive, and thus they often fly by 
planes. However, for multi-destination CA trips with many stops in smaller cities, cars and buses 
are a convenient option for foreign travelers too. Customer service at Tamchy airport (private 
airport at Issyk-Kul resort, Kyrgyzstan) was reported to be inconsistent with insufficient foreign 
language knowledge and poor service cases. 
➢ Railway transport 
The main problem with railway transport are the border crossing delays as described in the above sub-
section “Border Posts and Border Crossing Regulations”.  
➢ Auto 
Private cars and buses also face the problem of the border crossing delays. Quality of roads was 
also reported to be unsatisfactory by many respondents. Besides, both Uzbek and Kyrgyz border 
/ customs authorities charge around USD 35 per vehicle passing the border. The fee is reported 
to be related to insurance. Kyrgyz side proposed to remove this fee, and the State Customs 
Committee of Uzbekistan mentioned that they have initiated activities to remove this fee. This 
border-passing fee is applied to all neighboring countries of Uzbekistan, as mentioned by 
officials and travel companies. 
However, despite of that, they remain the most popular transport means. Many travelers and tour 
companies split transport between the borders to reduce the timing at the control points. 
Uzbekistan has initiated installment of the Advance Passenger Information (API)
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for control 
points of all transport types, which is expected to minimize the control timing at such points. 
This system is already applied in air transport, and is expected to be launched for other transport 
in 2020. 
In Uzbekistan, the only road connecting Tashkent with Ferghana Valley – Kamchik pass – does 
not allow buses for over 12 people due to security reasons. There are some projects initiated to 
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Kun.uz (2019), V Uzbekistane Zavershilas Restrukturizatsiya NAC Uzbekiston Havo Yullari, viewed on November 
18, 2019, yullari>; Center for Economic Development (CED) (2019), Zapuschena Administrativnaya Reforma V Sektore 
Aviaperevozok, viewed on November 18, 2019, <
http://ced.uz/sobytiya/zapushhena-administrativnaya-reforma-v-
sektore-aviaperevozok/>
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This system implies sharing passengers’ information in advance of their arrival and is widely used by air transport 
control worldwide.

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tackle this issue, however as of now, larger groups have difficulties to travel between Tashkent 
and Ferghana Valley by bus. 
Additionally, there are some administrative barriers for private transport companies in 
Uzbekistan, such as, for example, tender regulations for a licensed company to start operations. 
A license is not sufficient for a company to start operations. It must also participate in tenders, 
and a stand-by period due to this regulation might stretch to over 3 months. Therefore a licensed 
company might have to skip a whole touristic season. Several interviewed experts expressed 
concerns about necessity of this regulation and its effect on the market competitiveness.