President: Khorezm’s tourism export potential estimated at US$2 billion
Tashkent, Uzbekistan (UzDaily.com) — A meeting chaired by President Shavkat Mirziyoyev took place, focusing on the key priorities for the socio-economic development of the Khorezm region.
“Khorezm is a crossroads where our glorious history meets new reforms — and that is no exaggeration,” the President stated. “Although distant from major logistics routes and limited in natural resources, the region was named the ‘Year of Small and Medium-Sized Business’ in 2024 — and deservedly so.”
In 2024, more than 7,000 new entrepreneurs launched businesses in Khorezm. Forty-seven companies transitioned from small to medium-sized status, and over ten businesses increased their turnover to more than 200 billion soums. As a result, 290,000 people were employed across the region during the year.
Despite this progress, the region still faces serious challenges: poverty remains at about 12%, 45,000 residents are unemployed, and only one company has surpassed an annual turnover of 1 trillion soums.
In response, the President stressed to regional and district leaders the importance of turning every opportunity into concrete projects, creating new jobs, and working actively in sectors such as industry, services, tourism, agriculture, and exports — while also addressing pressing social and infrastructure issues with commitment and responsibility.
He noted that the country’s overall tourism export potential stands at US$10 billion, with US$2 billion of that attributed to Khorezm. However, this potential remains underutilized: last year, only 1.3 million foreign tourists visited the region, and tourism-related exports failed to reach even US$400 million.
Still, the President emphasized that relevant agencies have all the tools needed to make Khorezm one of Central Asia’s leading tourist destinations.
The region is home to 263 officially registered cultural heritage sites. While many entrepreneurs in the tourism sector are making good use of these assets, the President criticized local leaders in the city of Khiva and the Khiva and Yangiarik districts for failing to tap the potential of 14 heritage sites that could become major tourist attractions.
He also highlighted the need to study and promote lesser-known historical sites in Khorezm, such as Sulaimon Qala in Khazarasp, Kalajik Qala in Bogot, as well as Khon Boghi and Alma Otishgan Qala in Yangiarik, which remain largely undocumented.
To support these initiatives, it was decided that the activities of the Khorezm branch of the Uzbek Historians’ Society would be funded from the state budget.
Officials were tasked with inviting experienced archaeologists from abroad to carry out practical work aimed at identifying and restoring historical monuments.
A four-day tour route titled “Qala Tour” will be developed to connect eight ancient fortresses in Khorezm and Karakalpakstan. Service infrastructure around these sites will be established based on comprehensive master plans.
It was also noted that the region has significant potential for the development of gastronomic tourism.
The importance of involving one restaurateur from each region in the “Arda Khiva” complex was emphasized, along with the need to create two modern food courts composed of several restaurants in the Mevaston and Gazchi mahallas of Khiva.
Restaurateurs who represent Uzbek national cuisine abroad will be supported.
Officials were instructed to arrange partial reimbursement of expenses related to registration, permits, and the launch of Uzbek restaurants abroad.
Khorezm is home to more than 40 different types of traditional crafts, and tourists show great interest in observing the production process.
In response, a Craft Center will be established on six hectares of land in Mevaston.
An annual allocation of 1 billion soums will be provided for training apprentices in crafts.
It was reiterated that the region holds great potential for developing gastronomic tourism.
Additionally, involving one restaurateur from each region in the “Arda Khiva” complex and setting up two modern food courts in Mevaston and Gazchi mahallas was again emphasized.
Restaurateurs promoting Uzbek cuisine internationally will continue to receive support.
Officials were instructed to arrange reimbursement for part of the costs associated with registration, obtaining licenses, and launching operations of Uzbek restaurants abroad.
Khorezm is home to over 40 branches of traditional craftsmanship, with growing tourist interest in observing how such products are made.
To address this, a Craft Center will be developed on six hectares of land in Mevaston.
Each year, 1 billion soums will be allocated for the training of future craftsmen.
To ensure the rapid development of tourism in Khorezm, it was noted that the greatest obstacle is transportation.
As a result, flights to Urgench have been launched from Russia, Türkiye, Italy, Spain, and France. However, due to the lack of flights from Germany, China, and Arab countries, large numbers of potential tourists are being lost.
Officials were instructed to introduce direct flights from Frankfurt, Ürümqi, Beijing, and Abu Dhabi, as well as to arrange daily flights from Istanbul during the tourist season.
The Urgench airport will be transferred into a public-private partnership with Incheon International Airport in South Korea. Under this project, the airport will be reconstructed in accordance with national architectural traditions.
Officials were directed not to wait for construction to begin, but to immediately start attracting Korean airlines, send local staff to Korea for professional training, and organize workforce development based on Korean expertise through Khorezm’s transportation and service colleges starting from the new academic year.
Currently, 95% of domestic flights are operated by Uzbekistan Airways and Silk Avia. The remaining 14 flights are handled by four local airlines.
This situation is caused by the low attractiveness of domestic routes, prompting private airlines to prioritize international flights. The lack of competition in the domestic market often leads to tickets for the Tashkent–Urgench route selling out a week in advance, with prices remaining high.
“In such a situation, both foreign tourists and local travelers prefer to go abroad,” the President noted.
To address this, officials were tasked with attracting private carriers and doubling the number of flights between Tashkent and Urgench.
A subsidy mechanism for domestic flights will be developed for all resident airlines.
In addition, officials were instructed to add extra carriages to trains on weekends to increase passenger capacity by 1.5 times.
It was noted that due to poor road conditions between Karakalpakstan and Khorezm, the region loses the opportunity to attract an additional 300,000–400,000 tourists annually.
To resolve this, officials were instructed to begin negotiations with the European Bank for Reconstruction and Development for the reconstruction of the Urgench–Gurlan–Mangit route, and to attract US$75 million from the Asian Infrastructure Investment Bank for the repair of internal roads connecting 10 districts.
Deputy khokims from 13 districts and cities of Khorezm will also be sent to Spain, Italy, and France to study advanced experience in tourism and service. This system will later be introduced in other tourism regions across the country.
Overall, this year, Khorezm plans to implement 91 projects worth US$200 million, attract 2 million foreign and 10 million domestic tourists, increase tourism exports to over US$700 million, and create 100,000 new jobs in tourism and related services — these are the key goals set for responsible officials.
The meeting also addressed the economic development agenda for the region.
For 2025, the following targets were set:
ensuring economic growth of no less than 6% and increasing the gross regional product to 60 trillion soums;
increasing industrial output by 6.5%, and trade and services by 15%;
creating 265,000 jobs and lifting 104,000 people out of poverty;
increasing the number of entrepreneurs with an annual turnover exceeding 100 billion soums to 50, and those with over 500 billion soums in turnover to 10.
“The most important thing is that people feel the impact of these actions in their daily lives,” the President emphasized.
As part of the privatization program, 41 state-owned buildings and 350 hectares of land in Khorezm will be put up for sale in 2025.
“This presents a great opportunity for the service, tourism, and manufacturing sectors,” said the Head of State.
For instance, a study in Urgench identified 45 government buildings with a total area of 61,000 square meters and 21 hectares of land. These properties could be redeveloped into hotels, service and shopping centers, and entertainment facilities, potentially creating at least 500 jobs.
In Khiva, it was emphasized that facilities serving only tourists should be separated. Administrative buildings will be constructed on vacant land in the Angarik mahalla, and all government institutions in Khiva will be relocated there.
Officials were tasked with developing a comprehensive program for selling all administrative buildings in Urgench and Khiva.
Over the past eight years, the furniture industry in Khorezm has tripled in size. Last year, 311 enterprises produced furniture worth nearly 300 billion soums. More than 2,000 people are employed in nine mahallas that specialize in furniture production.
A “furniture zone” has been established on 10 hectares of land in Khonka, where furniture makers from five mahallas have relocated. A three-story training facility has also been built in this zone to support practical learning for both masters and students.
It was instructed to attract international experts — including designers, marketers, and engineering technologists — to the furniture school.
To support the furniture industry, a centralized system will be set up for importing wood and wood materials.
Each year, around 16,000 new families emerge in the region, with over 7,000 new homes being built and just as many undergoing renovation. A new system will be created to connect local furniture producers with new homeowners and developers.
The meeting also addressed investment and export issues.
“In today’s global environment, those who lead are those who attract innovation and investment,” the President noted.
This year in Khorezm, the following plans are in place:
implementation of 12 major projects totaling US$900 million and 480 regional projects;
launch of production for 65 types of goods and 5 types of equipment, with an increase in localization by 1.7 trillion soums;
achieving export volumes worth US$510 million;
attracting US$1.5 billion in foreign investment.
Last year, half of the investments were concentrated in Urgench city, Koshkupyr, and Urgench district.
However, dissatisfaction was expressed regarding the low levels of investment in Gurlan (US$40 million despite good infrastructure), Khazarasp (US$30 million despite 250+ hectares of industrial land), and Khonka (US$10 million despite having over 2,000 entrepreneurs). As a result, the heads of these districts were replaced. The coming year will serve as a test for the new leaders.
A “Uzbekistan-China Technopark” is being established on 175 hectares in Koshkupyr, where 16 investment projects worth US$1 billion will be implemented.
In the Khazarasp Free Economic Zone, land is already prepared with the necessary infrastructure. It was emphasized that this zone should host projects that generate high value-added products.
Copper production in Uzbekistan is expected to double in the coming years. Therefore, preparations must begin now for developing new capacities to manufacture copper products for export. Khorezm’s strategic location provides favorable logistics for entering the European market.
A copper-processing cluster, similar to the one in Akhangaran, will be established in the region.
Large projects in the chemical industry are planned in Khorezm, and their implementation will transform this sector into the main “driver” of the region’s economy.
This year, the first stage of the construction of a gas-chemical complex in Tuprokkal’a, valued at US$10 billion, will begin. Within the framework of the project, 2 million tons of basic polymer products with high added value will be produced annually in 14 different categories.
Additionally, a chemical technopark will be established in Khazarasp on 10 hectares, where polymer product manufacturing projects worth US$100 million will be implemented.
In Khorezm, 663 building material enterprises produced products worth 1.1 trillion soums last year, making the sector one of the region’s leading economic “drivers.”
A task has been set to significantly increase production volumes by launching 40 projects with a total value of US$100 million, aiming to boost production to 1.5 trillion soums by the end of this year.
A Slovak company has invested US$10 million in the development of 500 hectares of sandy land in Tuprokkal’a. The investor also plans to bring another 4,500 hectares of sandy land into use, investing US$170 million to grow rapeseed and produce bioethanol from it.
Responsible authorities have been instructed to provide necessary assistance in implementing this project.
The President also shared important news regarding the “Damas” factory in Tuprokkal’a: the plant will begin producing an affordable car in demand on the market, with an investment of US$100 million.
The vehicle will meet the Euro-5 environmental standard and will accommodate seven passengers.
It was instructed to complete negotiations with partners this year, begin large-scale assembly production next year, and transition to full-cycle production by 2027, achieving a 50% localization level.
Agricultural development issues were also discussed.
It was noted that this year, 56 projects worth US$60 million will be implemented in the region, including the reuse of 3,400 hectares of land, concreting 31 kilometers of main canals and 1,600 kilometers of internal irrigation channels, as well as planting 1,200 hectares of industrial orchards.
It was acknowledged that Khorezm has developed its own experience in water conservation when planting agricultural crops. For instance, 93,000 hectares of land have been leveled using laser technology, and water-saving technologies have been implemented on 196,000 hectares.
These measures result in an annual saving of 1 billion cubic meters of water.
Starting this year, subsidies of 1 million soums per hectare are being issued for rice fields that have undergone laser leveling. It was decided to extend this support to cotton and wheat crops as well.
An agreement has been reached with the Austrian company Bauer to implement sprinkler irrigation technology on 7,500 hectares in Khorezm.
Pilot use of this technology on 2,500 hectares for 24 farmers in different regions of the country has resulted in a 40% reduction in water consumption, a 35% reduction in fertilizer use, and a 90% reduction in manual labor, while crop yields have increased by 25%.
Farmers will be provided with irrigation equipment worth 15 million euros in the form of ready-to-use leasing installations for a period of 10 years, with an annual interest rate of 2.5% in soums.
The Austrian equipment will come with a 10-year warranty, and specialists will undergo free training.
Relevant authorities have been tasked with implementing a pilot project this year on 1,500 hectares worth 2 million euros, with plans to scale it to 7,500 hectares next year.
It was noted that farmers in Khorezm actively seek ways to reduce production costs and implement innovative solutions. For example, more than 10 farmers in the region have spent 100 million soums on installing modern autopilots on their tractors. A preferential credit line will be opened for the installation of autopilots on machinery.
21% of the country’s pumping stations are located in Khorezm.
A farmer from Khonkada installed solar panels with a capacity of 200 kilowatts to power a pumping station, allowing him to save 120 million soums annually on electricity costs, as well as sell surplus electricity worth 53 million soums to the grid.
The importance of transitioning all 2,138 pumping stations to this system was emphasized, with Khorezm’s experience being seen as a model for the entire country.
In Koskkepir, where 165 hectares of land remain unused due to a lack of water, entrepreneurs have proposed using water from collectors for fish farming. This proposal was approved, and relevant authorities were given corresponding instructions.
The meeting also discussed construction and infrastructure tasks for the current year in Khorezm. Specifically, it is planned to:
Carry out contract works worth 12 trillion soums and ensure employment for 20,000 people in construction;
Build 200 multi-apartment buildings with 7,000 apartments;
Reconstruct and repair 1,500 kilometers of roads and 20 bridges;
Purchase 80 buses and open 6 new routes.
It was also noted that 16% of the water supply system and 27% of the sewage system in the region were built fifty years ago and require reconstruction. The modernization of sewage systems in the cities of Urgench, Khiva, and Pitnak is necessary.
1.1 trillion soums have been allocated for these works in the current year, and the reconstruction of the sewage system in Urgench, Khiva, Pitnak, and the center of Gurlan district will begin shortly.
Responsible authorities have been tasked with completing the construction of 101 kilometers of water supply and sewage systems and 6 water facilities by the end of the year, as well as attracting an additional US$85 million from international financial organizations to update the sewage system in all areas of Khorezm.
It was pointed out that there is a need for 100 modern buses in Urgench. This year, 80 such buses are planned to be purchased, with an additional 20 expected next year, as well as 50 minibuses. Four new bus stations will be built in Koskkepir, Khonka, Yangiozor, and Khiva. By the end of the year, 10 new modern trolleybuses are expected to be acquired.
The electrification of the Bukhara-Khiva railway has been completed. As a result, passenger traffic will increase from 500,000 to 3.3 million people, and freight transportation will rise from 1.1 million tons to 5.8 million tons.
Relevant authorities have been instructed to purchase 6 high-speed electric trains next year. This will reduce travel times: from Tashkent to Urgench from 14 to 7 hours, and from Bukhara to Khiva from 6 to 3 hours.
In 2025, a new railway station will be built in Gurlan, and the station in Khazarasp will be reconstructed.
International financial organizations will allocate US$61 million to improve the infrastructure of 49 local communities in Bogote, Gurlan, Khanka, Yangiozor, Khazarasp, and Urgench districts.
In addition, 233 billion soums have been allocated this year for entrepreneurship infrastructure in 70 difficult local communities. Another 10 such communities will be selected, with 15 billion soums allocated for them.
The importance of increasing the number of bees in Khorezm was emphasized.
In Uzbekistan, a three-year program will be launched to plant 10 million bushes of “guzhumi.” The greening efforts will cover areas such as mahallas, streets, agricultural fields, road shoulders, as well as canal and collector banks. Additionally, there are plans to increase the planting of mulberry trees and jida (a type of plant).
The President particularly emphasized the importance of social sectors.
This year, the goal is to increase the share of high-tech surgical operations to 35%, provide employment for 6,000 technical school graduates, offer dual education to 7,000 students from technical schools and universities, and achieve international accreditation for 7 educational programs in engineering, medicine, economics, and agricultural sciences.
The Medical University in Urgench trains 1,600 doctors annually, and there are 500 private clinics operating. However, the share of medical services in the service sector remains below 2%.
In this regard, it was instructed that health services be organized in Shavot and Yangiarik by the end of the year.
It was noted that the schools in the mahallas of Adolat in Urgench district, Iftikhore in Koskkepir district, and Yangiozor in Khazarasp district have a coefficient of more than 2, indicating a high level of activity. The responsible authorities were tasked with suggesting the opening of private schools or the construction of additional buildings in these areas.
This year, it is planned to equip the heating systems of 359 kindergartens in the region with solar collectors, as well as update more than 1,000 outdated heating boilers in 420 social facilities.
“Shakarjon Khujaniyozova, one of the well-known women leaders who gained the respect of the people of Khorezm, passed away 8 years ago. I knew Shakarjon opa for many years. Every time I visited Khorezm, we communicated sincerely. This person lived with care for the people and devotion to her profession. She never stopped her honest and selfless work,” said the President.
The President proposed to widely celebrate Sh. Khujaniyozova’s 70th anniversary in Khorezm on June 12 this year.
One of the streets in Bagat and the rhythmic gymnastics school founded by her will bear the name of Shakarjon Khujaniyozova.
A competition for the best leadership among active women in the region will be held in her name. The life of Sh. Khujaniyozova will be widely highlighted as an example of courage and hard work.
“Today, we have outlined great plans and goals for the further development of Khorezm and the restoration of its ancient glory.
To achieve these heights, the people of Khorezm have the strength, capabilities, desire, and will.
Indeed, in this era of rapid changes, despite any difficulties, we will never deviate from the chosen path and our goals.
We are not looking for just one, but dozens of ways for the comprehensive development of Khorezm, to elevate its great historical, civilizational, and cultural heritage and glorify its greatness before the world.
I am confident that with your selfless work, we will certainly achieve success in fulfilling these tasks,” said the President at the conclusion of the meeting.
Reports from regional and national representatives were heard at the meeting, along with proposals from entrepreneurs and farmers.
