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Central Asia’s Hospitality Market Showing Significant Growth

In 2023, the hospitality industry in the countries of Central Asia, Belarus and parts of the Caucasus seemed to rise to the challenge of the times following Russia’s full-scale invasion of Ukraine, as they experienced a wave of change leading to astonishing growth.

According to news portal infoline.spb.ru, all of the above countries’ hospitality sectors recorded double-digit growth in their local currencies. For example, Kazakhstan (25%), Uzbekistan (12.6%), and Kyrgyzstan (24.9%), as well as Armenia (25.4%) and Azerbaijan (12%), showed steady growth both due to the natural evolution of the industry and the increasing share of legal business. Armenia and Kyrgyzstan, in particular, attributed their dynamics to a sheer increase in the number of customers — the inflow was provided by both tourists and migrants from Russia.

The hospitality industry in Central Asia is still in its formative stages, but the prospects for its development look extremely promising. This is due to several factors:
–The demographic factor. The population of Kazakhstan, for example, has grown by 18% over the last 13 years, which is the main driver of demand for catering services;
–New players in the market: the emergence of new chain restaurants from different countries provides an additional impetus;
–Growth in tourism. Inbound tourism to Central Asia is growing strongly, with Uzbekistan and Kyrgyzstan attracting significant flows of foreign tourists, creating a huge demand for catering services;
–Transformation of the Russian market. The Russian hospitality market — due to the war in Ukraine and international sanctions — is undergoing a period of significant transformation despite its size and maturity. Since the beginning of 2022, major international chains such as McDonald’s, KFC and Starbucks have ceased operations in the country, creating ruptures and opportunities in the industry.

In this context, Russian restaurant chains are showing increased interest in the Central Asian market, recognizing its potential for growth and development. Brands such as Shokoladnitsa, Yakitoria, Osteria Mario, Shvili and others have announced plans to expand into Kazakhstan, Uzbekistan, as well as Azerbaijan and Armenia. They are targeting increased revenue and profits due to low rent, material costs and the lower level of competition in these countries.

The revolution in the world of hospitality that’s sweeping Central Asian countries is opening new horizons for the industry. Rapid growth and transformation is creating unique opportunities for investors and entrepreneurs in the sector.

Former Minister of the Economy, Kuandyk Bishimbayev, a suspect in the death of his wife, Saltanat Nukenova. Image from court session, March 27, 2024

Trial of Former Minister Bishimbayev Charged with Murdering Wife Begins

On March 27, the trial of former Minister of the Economy, Kuandyk Bishimbayev, who is accused of murdering his wife, Saltanat Nukenova, began in Astana. A live broadcast of the trial was available on the YouTube channel of the Supreme Court.

Preliminary hearings in the case against former Minister, Kuandyk Bishimbayev had begun on March 11, with the indictment being read out and the defense filing a motion asking for a jury trial.

In court yesterday, the prosecutor, Aizhan Aimaganova read out a long list of injuries sustained by Nukenova as revealed during her autopsy: “Closed craniocerebral trauma, multiple abrasions, facial bruising, splinter fracture of the nasal bones, wounds to the chin area, hemorrhage in the soft tissues of the face, head, and occipital area, and acute subdural hematoma. When analyzing Nukenova’s internal organs, no narcotic, medicinal or psychotropic substances were found,” Aimaganova added.

“Kuandyk Bishimbayev is accused of causing physical and mental suffering by means of systematic beatings or other violent actions committed against a person who was financially dependent on the perpetrator,” the prosecution stated.

Following the prosecutor’s speech, the judge asked the defendant for his plea, to which Bishimbayev replied “not guilty” before explaining the reasons for his response.

“I didn’t have a chance to tell my story at the pre-trial investigation, not anywhere. At all. Everything read out by the prosecutor are largely fabrications, for which there is no confirmation or evidence. According to Article 110, I have not committed such a crime at all. Therefore, I do not admit my guilt,” Bishimbayev stated, adding that he hoped for an opportunity to express himself thoroughly.

To the next count, namely article 99, part 2, paragraph 5, “Murder committed with particular cruelty,” Beshimbayev also pled not guilty, stating that “I did not commit the premeditated murder of a human being with particular cruelty.”

Also in court accused of concealing a serious crime, Bakhytzhan Baizhanov, the director of BAU’s Gastro-center where the crime allegedly took place, said he was not sure if he had committed this crime.

“I confess that I asked to delete the video recordings [from the surveillance cameras] and asked to take Saltanat’s phone home [to hide the geolocation]. I don’t know if I committed a crime. At that time, I didn’t know whether Saltanat was dying or dead,” Baizhanov said.

The next session in the case is scheduled for March 29.

 

What Bishimbayev is accused of:

Article 110, part 2, paragraph 1, item 1 of the Criminal Code: “Causing physical and mental suffering by systematic beatings with violent actions committed against a person who is materially dependent on the perpetrator”;

Article 99, part 2, paragraph 5: “Murder committed with particular cruelty”;

Article 14, paragraph 2 – according to the prosecution’s version, Bishimbayev’s actions are considered a dangerous recidivism of this crime. The law states that “Dangerous repetition of crimes shall be recognized as commission by person.”

@akorda.kz

Tokayev Celebrates Kazakh-Chinese Economic Ties at Boao Forum

Kazakh President Kasym-Jomart Tokayev was feted as guest of honour at the 23rd Boao Asian Forum (BFA) : “Asia and the World: Common Challenges, Common Responsibility.”

He was joined at the opening ceremony of the plenary session in the Chinese province of Hainan by: Chairman of the BFA Board of Directors Ban Ki-moon, Chairman of the Standing Committee of the National People’s Congress Zhao Leji, President of Nauru David Adang, Prime Minister of Sri Lanka Dinesh Gunawardena, Prime Minister of the Commonwealth of Dominica Roosevelt Skerrit, Chairman of the international non-governmental organization “Council of Elders” Mary Robinson, Secretary General of the OECD Matthias Kormann, and Director General of the UN’s World Intellectual Property Organization (WIPO) Daren Tang.

In his address to the forum, Tokayev made reference to the fact that against the backdrop of escalating world conflicts, there is tension in international trade and an assumption that the growth rate of global GDP will be the lowest in the past 30 years. However, Asia’s role in this sphere is increasing, and the region is projected to provide 60 percent of global GDP growth this year. Global trade giants located in Asia are now attracting more and more foreign investment on account of Asia being home to the world’s leading technology centres, responsible for 70 percent of patent developments.

“Of the expected $30 trillion growth in middle-class consumption by 2030, only $1 trillion is expected to come from Western economies. Collectively, all these factors point to the so-called ‘Asian Renaissance,” stated Tokayev.

He then emphasized the role of the current forum to demonstrate the advanced achievements of the region: “Kazakh-Chinese relations are based on an effective partnership that has made Kazakhstan China’s main trade and economic partner in Central Asia. Kazakhstan accounts for half of Chinese trade and investment in the region. Last year, trade turnover between Kazakhstan and China reached a historic record of $41 billion. In 2023, the volume of cargo traffic between our countries increased by 22% to almost 30 million tons.”

The Kazakh president also mentioned that 80 percent of all land transportation between China and Europe is carried out through Kazakhstan, noting the role of the “One Belt, One Road” project in the creation of modern multimodal, environmentally safe and sustainable infrastructure in the region.

With regard to the economic success of the Kazakh Republic, he drew attention to the fact that the country’s economic growth of 5.1 percent last year almost exceeds the projected growth rate of the world economy twofold. Plans were outlined for further developments in the field with reference to an open-door policy, abundant resources, and liberal market reforms, aimed to create a favourable ground for mutually beneficial cooperation with China.

Tokayev reported that his country is becoming increasingly attractive to investors due to measures to improve the fiscal and monetary system, market reforms, and a price-competitive economy. He also called on the world community to ensure equal opportunities for all countries: “The huge Asian bond market with its huge market capitalization has high potential to support many development projects. The Eurasian Development Bank is planning to carry out the first issue of panda bonds as a new financial investment instrument. It may become critical for financing global infrastructure projects.”

On the issue of expanding transit and transportation cooperation between Asian countries, based on both the expansion of existing routes and the creation of new alternative ones, he opined, ” The Trans-Caspian International Transport Route (TITR) plays a special role here, as the volume of cargo transported along the TITR doubled last year, amounting to three million tons.”

Noting the important role of information technologies for the development of the world economy, Tokayev voiced his support of the Global Initiative on Artificial Intelligence Management put forward by China.

Furthermore, the President cited the extraction of critical raw materials as another promising area of cooperation, saying, “Rare earth metals have become a critical component for a wide range of technologies. They are essential for achieving a zero-emissions balance, as well as in strategic sectors such as industry, digital technology, space and defense. We continue to work with international partners on the most efficient ways to develop our large deposits of uranium, lithium, titanium and other rare-earth elements.”

Concluding his speech, Tokayev once again emphasized the role of Asia in the global economy and hailing the Boao Forum for Asia and the Astana International Forum (AIF) key platforms for fruitful dialogue, invited those present to a gathering of the latter scheduled for 13-14 June 13-14 this year.

@iStock

Turkmenistan to Host Another Exhibition of Afghan Goods

Afghanistan’s Ministry of Industry and Trade has announced that it intends to hold an exhibition of its export goods in Turkmenistan, according to a bulletin from Turkmenistan’s Union of Industrialists and Entrepreneurs.

To increase exports and international trade, the Afghan ministry intends to host over 30 exhibitions both domestically and internationally in the coming months.

After the previous exhibition of their products held on March 4-6 of this year, Afghan manufacturers signed a number of contracts with Turkmen companies. Gurbanguly Berdimuhamedov, chairman of the Halk Maslahaty (People’s Council) of Turkmenistan, ordered 100,000 cubic meters of marble from Afghanistan, to be used in the construction of buildings in the city of Arkadag. Turkmenistan also will buy 50,000 tons of iron and 6,000 tons of steel beams.

Photos gknb.gov.kg

Kyrgyzstan Assassination Plot: Suspected Crime Boss Raimbek Matraimov Held in Pretrial Detention

The corrupt Kyrgyz oligarch Raimbek Matraimov will spend the next month in pretrial detention in Bishkek, after the former deputy head of Kyrgyzstan’s customs service was extradited from Azerbaijan on Tuesday.

Matraimov, once known as the country’s “kingmaker” for the influence his clan held over the Kyrgyz Government, was found to have profited from corrupt schemes he ran at the customs service, laundering at least $700 million for himself by allowing companies to evade import fees.

In October 2020, upon the formation of a new government led by President Sadyr Japarov, Matraimov was ordered to repay $22.3 million in damages and restitution back to the state.

However, rather than fall in line with Kyrgyzstan’s crackdown on organized crime, in recent years Raimbek Matraimov appears to have remained outside the law. The former official is now suspected of orchestrating a recent plot to assassinate members of Kyrgyzstan’s current leadership in retribution for the government’s fight against organized crime. It is the discovery of this plot that led Kyrgyz law enforcement to request Matraimov’s extradition this week from Baku, Azerbaijan’s capital, along with his three brothers, Tilek, Islambek, and Ruslan.

Of the Matraimov brothers’ seizure in Azerbaijan, the Kyrgyz State Committee for National Security (CNSK) commented: “In this regard, on March 22, employees of the CNSK carried out operational and investigative measures, as a result of which all the above-mentioned persons were detained [in Baku]. Currently, investigative measures are being carried out to bring them to justice, according to the laws of Kyrgyzstan.”

On Wednesday, March 27, the Birinchi Mai district court in Bishkek ruled that Raimbek Matraimov must stay in pretrial detention at the CNSK’s detention center until at least April 26. Officially, he is suspected of “money laundering and the abduction and illegal incarceration of unnamed individuals”.

Matraimov had already been placed on the U.S. Treasury Department’s sanctions list, and the Global Magnitsky Human Rights Accountability Act (the ‘Magnitsky Act’), for his previous crimes at the customs service.

@gov.kg

Kyrgyz Surgeons Performed Unique Heart Surgery in One Minute

The National Centre of Cardiology and Therapy in Bishkek has announced its implementation of an Emergency Cardiology program to provide emergency care to patients with acute myocardial infarction.

The authorities’ purchase of new heart surgery equipment including a machine to create ultra-precise 3D reconstructions of the heart on a monitor and the importation of U.S.-made Azurion-7 devices for diagnosing and treating cardiovascular diseases was made possible by the allocation of $1.5 million from the World Bank. In his address at the presentation ceremony, Kyrgyz Prime Minister Akylbek Zhaparov welcomed the much needed acquisition of the state -of -the- art, high-tech equipment which will greatly reduce the number of patients dying from heart disease each year.

Today, the centre reported that with the aid of new high-tech X-ray surgical equipment and Chinese colleagues’ specialised knowledge of its intricacies, doctors performed a successful heart operation in a record time of just one minute and eight seconds.

According to Kyrgyz doctors, the patient had been admitted ‘with an open oval window’; a particularly dangerous symptom of cardiovascular disease because the presence of holes between the valves of the heart can cause air to eventually enter the brain and lead to a stroke. “We are monitoring the patient’s condition and she is doing very well. She was only given a local anaesthetic and in 12 hours, can go home and slowly return to her everyday life,” stated Chinese professor Shang Xiaaoqe after the operation.

Almost half the patients attending the National Centre of Cardiology for strokes suffer from this type of disease but thanks to the new equipment and adoption of methods used by Chinese medics, its treatment will no longer pose a problem for Kyrgyz doctors.

In addition to advice from their Chinese counterparts, Kyrgyz medics have arranged visits from Russian and Kazakh doctors to share their experience and best practices.