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    Kazakhstan

    Auditors uncover major violations in Kazakhstan tourism

    Auditors uncover major violations in Kazakhstan tourism

    The Supreme Audit Office has uncovered significant violations in the tourism sector, as reported by LS. Specialists have found that prices in this industry do not correspond to the quality of services. This information comes from an inspection conducted by Kazakh Tourism.

    Auditors uncover major violations in Kazakhstan tourism.
    Source: GOV.KZ

    Over the last 20 years, the state's tourism policy has changed hands eight times among various ministries and agencies, leading to a lack of systematic and coherent development in Kazakhstan's tourism industry. According to their data, out of the 22 types of activities outlined in the "Tourism Activity" law, only four are actively developed, accounting for 80% of the sector: ecotourism (34%), cultural and educational tourism (29%), hunting tourism (9%), and medical and health tourism (8%), as reported by the Supreme Audit Office of the Republic of Kazakhstan.

    Specialists point out that the absence of regional coordination between the ministry and local executive bodies hinders the development of Kazakh tourism. In 15 regions of the country, there are no specialized departments, leaving tourism businesses unaware of available government support measures.

    In the previous year, Kazakhstan allocated KZT 402mn ($847,000) for the support of domestic tourism, but only  KZT 85.8mn ($180,000) were utilized. This included subsidies for tour operators for each foreign tourist. Originally, the plan for 2022 was to spend KZT 54.7mn ($115,000), but only  KZT 5.8 mn ($12,000) were actually used.

    Regarding the "100% reimbursement of airline companies' transit fees for children on domestic flights (KIDS GO FREE)" program with a budget plan of KZT 211.1mn ($445,000), only KZT 76.2mn ($160,000) was spent. For targeted current transfers to regional budgets, city budgets of republican significance, and the capital for subsidizing the expenses of business entities and maintaining sanitary facilities, with a budget plan of KZT 136.3mn ($287,000), only KZT 3.7mn ($7,800) was utilized, as stated by auditors.

    Additionally, there is a lack of systematic control over compliance with uniform standards in the tourism sector by government agencies, of which there are more than 90 in the country. This results in a mismatch between the quality of services and expectations, contributing to the outflow of foreign tourists. Auditors also note that Kazakhstan's hotel infrastructure is underdeveloped.

    Last year, out of 4,000 accommodation options, only 130 were categorized, including 52 in resorts, leading to unjustifiably high accommodation prices. Furthermore, the country has a low level of internet connectivity and digitalization of tourism services. Only 76.2% have internet access, and 22.6% are integrated into international internet booking systems. As a result, tourists cannot familiarize themselves with accommodation conditions and plan their travel routes, as highlighted by the Supreme Audit Office of the Republic of Kazakhstan.

    In total, auditors identified violations and deficiencies amounting to KZT 1.5bn ($3.1 million), including:

    1. Inefficient use of assets - $1.9mn.
    2. Ineffective budget planning - $1.1mn.
    3. Overpricing of services - $161,000.
    4. Uncompleted work or services - $23,800.
    5. Unjustifiably paid wages - $9,000.

    During the audit, KZT 88mn ($185,000) were returned to the country's budget, and enterprise income was restored by $2,700. It should be noted that two administrative protocols have been drawn up against the Deputy Minister of Tourism and Sports for inefficient planning and use of budgetary funds.

     

     

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    25.09.2023, 21:02   Comments (0)   510
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