The Government of Uzbekistan adopted a resolution No. 433 “On measures to create favorable conditions for further development of the hotel industry” of May 27, 2019.

As the Deputy Prime Minister Aziz Abdukhakimov states on his Facebook page, this decree regulates the tasks aimed at encouraging the construction of hotels by businesses, speeding up the implementation of investment projects in tourism, actively attracting famous and prestigious global hotel brands to the country, increasing the number of hotel rooms in the republic. In particular, the decree approves the Regulation on procedure for allocating funds from the State Budget to compensate part of investors' expenses for the construction and equipping of new hotels, as well as financing organizations on the basis of franchising agreements.

According to the Regulation, the following amounts of compensation from the State Budget for applicants (entrepreneurs) are established:

a) for construction and equipping of hotels with annual indexation in the process of approving the parameters of the State budget for the next year:

•  40 million soums for each number in hotels with a category of 3 stars;
•  65 million soums for each hotel room with a category of 4 stars.

Financing is carried out until 50,000 new hotel rooms are created in the country.

b) partial financing at the expense of the State Budget of the Republic of Uzbekistan of royalty organizations is carried out annually for three years from the date of entry into force of the franchise agreement with one of the well-known and prestigious global hotel brands (included in the top 50 hotel brands of the “Brand Finance” rating or list of hotels, formed by the Coordination Council for Tourism Development) in the following sizes: 

•  the first 50 hotels with a 3-star category – annually equivalent to $200 per room for each hotel;
•  The first 30 hotels with a 4-star category – annually equivalent to $400 per room for each hotel.

The total amount of financing of royalties of organizations amounts to no more than $10 million in equivalent.

On the basis of the Regulation, approved by the State Tourism Development Committee and the Ministry of Finance of the Republic of Uzbekistan in the prescribed manner, close assistance to business entities will be provided.

To use these benefits, entrepreneurs can appeal to the State Committee for the Development of Tourism with a statement in the prescribed manner.