KAZAKHSTAN
A giant at the heart of the Central Asia





Mr. von Knobloch


Interview with Mr. von Knobloch,
Owner, Central Asia Tourism Corporation
July 26, 2002

 
Could you give our readers an overview of the tourism industry in Kazakhstan, and the future of this sector?

At present, we do not have a Ministry of Tourism. We just have the Agency of Tourism and Sport, which has existed for many years and was part of the former Ministry of Tourism. It is a government body that deals with tourism. Tourism itself has not been very much promoted. Kazakhstan Tourism Association (KTA), which consists of about 20 travel agencies, tries to promote tourism to Kazakhstan and private sector travel agencies work on their own. To my knowledge the Government has no real policy. There is the will to make a master plan but it has not started yet.

Do you think that in a near future the sector will change?

The sector is definitely going to be developed. The former Prime Minister Tokayev has worked on promoting tourism. He still does it as "Minister of Foreign Affairs". The main problem is that there is no real policy on tourism, so that nobody knows what should be developed and what should be done. The policy of transport to Kazakhstan is also underdeveloped. As the Prime Minister, Mr. Tokayev had developed strict rules to issue tourist visa, but local authorities, do not follow these rules, so it is still quite expensive and cumbersome to get a tourist visa to Kazakhstan.

Could you give our readers a brief historical background of Central Asian Tourism Corporation?

Central Asian Tourism Corporation was founded in 1993. It was created as a joint venture with Sputnik Kazakhstan, which was one of the two top tourism agencies during the Soviet time.
The aim of this joint venture was to promote tourism in Kazakhstan. Today, our policy has changed. We sell airline tickets, we also organize tourism within Kazakhstan on demand, we do sell tourism outside Kazakhstan, and we work with foreigners living in Kazakhstan.
We have two main offices in Almaty. One is at the airport, which is the only office that works for 24 hours. We also have offices in Astana, Atyrau, Aktau, and Aksai. We just opened a office in Dushanbe, Tajikistan, which is the first travel agency there. We also have a partnership with an agency, which has the same name, in Bishkek, Kyrgyzstan.

Do you work in all CIS countries?

No, we are just interested in Central Asia and Xinjiang, China.

Could you elaborate more on your activities?

Our main activity is the sale of domestic and international airline tickets. We also apply for visas. We are one of nine travel agencies that have the right to apply for tourist visas. We also apply for business visas. We have our own cars, so we can organize trips around Kazakhstan.
In other countries we collaborate with their local travel agencies.

So, the presence of Central Asian Tourism is very important. Do you look for any new partnerships?

As I already said that we work with other local travel agencies. We train their staff. We are specializing on what a foreign company could do better than local ones.

Do you have partnerships with foreign companies?

We are agents of most international airlines, such as the Austrian airlines, and Swiss International airlines. We are also agents of domestic airlines. Examples Air Kazakstan and Air Astana the two National Carriers of Kazakhstan and about 10 private local airlines. W3 are members of WATA, (World Association f ravel Agents) Geneva and ASTA, (American Association of ravel Agents) Washington. We represent American Express. Travel Service it is like a franchise.

Are you the only foreign company that works with tourism in Kazakhstan?

No, there is BTI, which is a British company with a representation office here. American. I am the only owner and I came here to help to promote the tourism industry. I was a travel agent all my life. German education in travel is more professional than in most other countries.
So, there is no real competition for you.
Yes, there is no real competition for us. Of course there are some travel agencies that are very good. However, in general we do not have competitors.

How do you see the future of tourism in Kazakhstan?

As I already said, the Government is slowly getting interested in it. It is obvious that something should be done because the tourism industry is one of the biggest in the world. The geographical position of Kazakhstan could facilitate this being on the bridge between Europe and Asia. There is practically no investment in tourism from abroad. We have three deluxe hotels in Almaty, and two of them are too big and expensive. Hyatt and Regency are very good hotels. However, if we talk about tourists, they are not likely to stay there. For businessmen they are fine, but not for tourists.
There is a desperate need of investment in Kazakhstan; TACIS is financing a report on investment opportunities in Kazakhstan tourism. They will invite a person that will study the geographical possibilities. Geography is nice in Kazakhstan; however, people need not only mountains but also infrastructure. Transportation is very limited in Kazakhstan. There are no real tourist buses and trained staff.
So, there are some projects coming soon.
I hope so. However, Kazakhstan needs infrastructure. Oil industry and agriculture are two priorities in the development of Kazakhstan economy. I think that tourism should be the third priority.

What has been your biggest challenge here?

I think that bureaucracy is the main problem, especially when getting visa. Otherwise, we do not have any serious problems. What is really bad is OVIR the foreign police, which is not interested in tourism. We had several conferences, where all travel agencies complained that changes were moving very slowly. For example, in theory to get a tourist visa takes 5 days. However, in reality it takes at least 15 days. For investment, this is very important if there are obstacles like this, and then investors will go to a different place.

I know that in Russia there is a problem with transit visas. What is the situation in Kazakhstan?

Kazakhstan does not have problems with transit visas. The only problem we have is that there is no written rule about getting a visa. It takes about 1 week to get one. So, bureaucracy is the primary problem for us. Recently, exit visa for Kazakh nationals were cancelled this will make tourism from Kazakhstan easier to promote.
Could you tell us a little bit about airlines? For example, there are very often problems to get tickets on some airlines.
No, it is not a real problem. Lufthansa replaced a big aircraft with a smaller one. So, sometimes, there are not enough seats during summer but in winter the number of seats is appropriate. Domestic flights though are very often full especially to Astana.

Could you tell us about your partnerships?

At this moment, no foreign airline is interested in coming to Kazakhstan. I talked to Cathay Pacific to fly to Hong Kong, as there is no flight. Air Kazakhstan flies to Korea. In winter to Bangkok. Otherwise, there are flights to Asia. The best way to get to Hong Kong is to fly via Urumqi. Cathay Pacific was here a year ago. They wanted to fly to Moscow. I asked them to have two flights to Hong Kong via Almaty. We could provide them with sufficient business. Today, if you want to go somewhere to the East, it is a big problem.
It is amazing because Kazakhstan is in Asia and it does not have any airline flying to Eastern Asia.
Yes, we are in Asia. However, Air Kazakhstan has a flight to Delhi.

Are Kazakhstani airlines going to open new routes?

Air Kazakhstan or Air Astana may open new routes but they first need new airplanes and second they need new management. Air Kazakhstan does not use its geographical location. The market of Kazakhstan is too small; I mean that there are just 14 million inhabitants here. So, not many people travel. That is why; it is not a big market for a big international airline. If they fly Hong Kong - Almaty - London or Moscow they could make money. Moreover, Kazakh airlines cannot compete with the European ones. They could compete in Asia but they do not have the Interline agreements needed.

Do you deal more with foreigners or with locals?

We work mainly with foreigners. I am a foreigner and I know basically every foreigner living here. We work with foreign companies because they are the ones who spend the most on traveling. We do also have now a number of Kazakh companies as clients. The number of traveling individuals is increasing. A Middle class is developing, which did not exist five years ago. Tourism to Turkey and Bangkok is developed because when you go there you do not need a visa. Malaysia is another country but there are no flights.

Could you give our readers a final message?

I think that the tourism market is waiting for investments. I think that the possibilities of investment in Kazakhstan tourism are quite interesting. It is a very big country with wonderful geography. Kazakhstan has mountains, steppes, around 20 National parks; however, it does not have a proper infrastructure. There are many possibilities for investments. Even though the Government has not yet developed a clear plan yet, it would assist those who would be interested in developing tourism in Kazakhstan.
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