Privatized Resorts Return to the State. What Will Happen to Tourism?

Tuesday, July 8, 2025, 19:02 "There Must Be Rules for Fair Competition" Illegally privatized resorts are returning to state ownership. For example, the "Columbus" resort and a 2.3-hectare plot at Issyk-Kul have been returned. The "Geolog" resort and the "Orlyonok" camp on a 12.81-hectare plot, along with other properties, are also now under state management. Will this legal justice affect the tourism market and the country's investment appeal? Economist Iskender Sharsheev commented to Vesti.kg: "Everything depends on the circumstances accompanying this process. Around the world, restoring order is normal practice. If there are grounds, properties are returned to the state. Some had gained advantages in the past due to contacts or personal connections. This creates an imbalanced system and raises doubts about fair competition. There must be equal market rules. When these rules are followed, trust in the market increases—including from investors," he believes. Thus, it will be possible to maintain the rules of fair competition and rule of law. "But it is not a fact that the state is an effective owner. Global practice shows that private owners manage property more efficiently. The reason is psychological: if the property is public, it is perceived as belonging to no one. And accordingly, the attitude reflects that. Temporary managers often start looting. Or they are afraid to act and avoid necessary spending. For example, we can look at China—how property is managed in the north versus the south. In the south, land remains state-owned, but enterprises are given freedom to manage it. In the north, everything is under state control. We see that autonomy promotes business development. Plus, proximity to the sea helps. Therefore, if we consider this experience and the state retains ownership as a founder or shareholder, while operational control and profit distribution rights are given to specific people—including full rights to net profits—I believe the enterprise will be highly efficient," says Iskender Sharsheev. Tags: privatization, tourism, Kyrgyzstan, state ownership, economic justice, investment climate, Issyk-Kul, Iskender Sharsheev, resorts, property rights, fair competition, private sector, governance, investor confidence, tourism market, public assets, China model, north vs south China, operational efficiency, legal reform, market regulation, state vs private, fair rules, entrepreneurship, economic development https://vesti.kg/zxc/item/140826-privatizirovannye-pansionaty-vozvrashchayutsya-gosudarstvu-chto-budet-s-turizmom.html