Challenges and prospects in the introduction of ERE in tourism: informing, state support, and new finance products
27-07-2021

On 9, 10 and 11 of February the PERETO Project’s team held a series of online discussions during which the participants discussed challenges and prospects of the introduction of energy and resource efficiency technologies in the tourism sector of Kyrgyzstan.

The virtual platform gathered all stakeholders: state bodies, banks, tourism associations, suppliers of energy and resource efficiency technologies, representatives of international organizations and, naturally, the very HoReCa sector – owners of hotels, cafes, restaurants, yurt (nomad house) camps, hostels, vacation retreats, and resorts.

The activity’s goal was to arrange an active opinion sharing among participants and identify problems in the HoReCa sector of Kyrgyzstan, then seek joint solutions, and draft an action plan for sustainable development of tourism in Kyrgyzstan.

Each day of the online discussion was dedicated to a distinct discussion topic:

Day 1 – creation of an enabling environment for the introduction of ERE and SCP practices and discussion of environmental policies in Kyrgyzstan;

Day 2 – support of the tourism sector businesses and consumers in ERE and SCP;

Day 3 – access to green financing for the introduction of ERE and SCP practices.

The HoReCa sector representatives took active part in the discussions, asked a lot of questions, demonstrated their desire to undergo training and their interest in the introduction of ERE and SCP in their businesses. Yet, they noted that without a clear-cut comprehensive state and financial support, achieving such goals would seem impossible. One of the barriers as seen by businesses is the high loan interest rates in banks.

Representatives of banks that participated in the discussions underscored that they viewed the tourism sector as one of the priority ones and expressed their willingness to support the tourism sector and development of green technologies.

Kanat Karagulov, Head of Loan Directorate of the Keremet Bank stated: “If we wish for the population to have access to green technologies, we need support from the state. For instance, under the Financing of Agriculture Project, the government subsidizes interest rates for loans offered to farmers. We will be happy to jointly work on the introduction of green economy in our country. Invest in marketing and advertising, public and business community awareness raising. We are willing to develop new green finance products. If we see that the funds invested are justified and benefit the national economy.”

The PERETO Project plans to run several similar discussion meetings that should result in the development of new finance products and green financing schemes that reflect specificity of the HoReCa sector and support investments in ERE/SCP. They would then be tested as part of appropriate projects developed in collaboration with the HoReCa sector.