A famous Rudyard Kipling poem begins: “East is East, and West is West, and never the twain shall meet”. He obviously forgot about – or gave no thought to – Central Asia, a common mistake through the centuries. But this vast region, east of the Caspian Sea, west of China, north of the subcontinent and south of Siberia, is far from the empty desert wasteland and endless steppe it’s often perceived to be.
Upon the breakup of the Soviet Union, in December 1991 the independent state of Kazakhstan was born, a melting pot of cultures and resilient peoples who struggled together through the first tough decade of their nationhood. I was being disingenuous about Kipling’s poem, because the third and fourth lines read: “But there is neither East nor West, Border, nor Breed, nor Birth, When two strong men stand face to face, though they come from the ends of the earth!” There lies his true meaning, and Kazakhstanis epitomise this unity and solidarity.
A city view from Koktobe Hill
SOME BACKGROUND
The ninth largest country in the world (you could fit all of Western Europe within its borders with ease), Kazakhstan turned out to be blessed with enormous wealth in natural resources, from oil and natural gas to uranium, coal, copper, zinc and a multitude of rare metals. President Nursultan Nazarbayev, the country’s first and ongoing leader, is a powerful and savvy politician who realised that a strong economy would lead to stability and therefore focused first and foremost on developing the country’s mining industries quickly with help from multinational companies (MNCs), while maintaining good relations with Russia, China, the Middle East, Western Europe and the US – no mean feat.
As a result, Kazakhstan has grown faster than almost any other developing nation, and while the rest of the world struggles to keep recession at bay, here business is booming. The government, wary of overdependence on oil and gas revenues, has implemented a number of diversification programmes in recent years, developing new industries in petrochemicals, technology, R&D in renewable energies, and leveraging its enviable position as the most stable and progressive country in Central Asia to build up its largest city, Almaty, as the financial centre in the region.
To an extent Kazakhstan still labours under the shadow of its Soviet history, but the state-controlled industries of the past are gone, and today the private sector is the backbone of the economy with more than 700,000 small and medium-size businesses. A major boost to trade and business in general will come by the end of this year, when the country gains membership of the World Trade Organization (WTO).
Another fillip came in November 2012 when it was announced that Astana, the capital, will host the EXPO-2017 international exposition. A flood of interest in Kazakhstan’s immense potential followed.
For most businessmen a trip to Kazakhstan requires a visit to both its main cities: Almaty and Astana. This is because Almaty was until 1997 the capital, is the home for most companies’ head offices, is bigger and more cosmopolitan, and has reinvented itself as the country’s financial centre since it lost the governing ministries and state-owned organisations to Astana. The new capital, 1,000km to the north in the midst of the Central Steppe, is where all the offices of governance are now located, and since all business deals must be approved by the relevant ministry, a brief stay is often obligatory as well. The good news is that these metropolises are very different in locale and character, and combined give you a real insight into the burgeoning wealth and modernisation that is propelling Kazakhstan towards a bright future.
The Baiterek Tower
ALMATY: CENTRAL ASIA’S FINANCIAL HUB
Almaty lies hard up against the northern slopes of the Tien Shan mountain range, a line of magnificent, lofty peaks running roughly west-east and forming the border with Kyrgyzstan to the south. Many flights arrive here in the early morning, the views as you land providing an inspirational introduction to what is still to most an exotic and enigmatic country.
Sadly the airport is a rundown, shabby affair that is not in keeping with the modernising intent to be found elsewhere in the city. The drive into town along broad expressways reveals huge car showrooms, from Land Rover and BMW to Toyota and Hyundai. The city itself is very attractive, its broad main streets lined with trees and laid out in a grid pattern, making navigation easy (almost the entire city is on a gentle slope – walk uphill and you’re heading south, towards the mountains). There are plenty of parks, grandiose buildings and statues of famous Kazakhs –
a legacy of the Soviet penchant for such cultural landmarks.
However, look at all the new construction going on and you understand that modernisation is uppermost in the minds of the government. Almaty has for some time been the most cosmopolitan city in Central Asia, but the money flooding in now has resulted in a growing middle class with spending power: coffee shops à la Starbucks are a new trend, the suburban roads into the mountains are lined with fancy villas where once were small wooden dachas, and the city has expanded to the south of the old centre with brand-new glass-and-steel towers mimicking the snowy peaks beyond. This is Almaty’s new business district, Central Asia’s business and financial hub.
Choosing the right hotel is important, as for non-Russian speakers getting around town can be troublesome and time-consuming, so being close to your main point of business is to be desired. There are many business hotels, but relatively few are international brands, and most do not live up to whichever star rating they declare. International properties are beginning to proliferate – Holiday Inn, Best Western and Rixos are new to the market – but maintaining consistently high service standards in this ex-Soviet bloc region can be difficult. Hyatt Regency was the first to try, but it fell by the wayside a few years ago. A JW Marriott was due to open in 2011 in the upper storeys of the city’s highest building, the Esentai Tower in the new financial district, but negotiations went wrong, Marriott retreated, and now Ritz-Carlton plans to open there instead in late 2013.
Given the obvious challenges, it seems that when a hotel does get it right, a loyal clientele is the result, and as economic growth brings more visitors, it reaps the rewards first. The perfect example of this is Intercontinental Almaty, which opened in 2006.
“The growth in business travel was continuous from 2003 to 2008, but after the global financial crisis it dropped. However, it levelled off and has remained stable since then,” says Maira Amangaliyeva, assistant director of sales and marketing at Intercontinental Almaty. This is despite the entrance into the market of both luxury properties such as Rixos and mid-range hotels like Holiday Inn, which implies that numbers of business travellers are rising and filling all the new properties.
“We have 95 per cent business guests, with only 5 per cent leisure,” Amangaliyeva says, echoing the views of other major hotels – which is a shame, because the tourism potential of both the city and the nearby mountains is huge.
For now though, despite its pretty setting, pleasant atmosphere and buzzing nightlife, Almaty remains very much a business town. Traditionally Russian and European companies were most involved here, as well as Turkish construction companies in the early years of independence. But the rise of Asia, and in particular neighbouring China with its hunger for energy, has seen Kazakhstan looking east as much as west for business partners. Companies from South Korea, China, Malaysia and India are all showing much interest, and the state-owned airline Air Astana has reacted by opening new routes as part of an aggressive expansion plan.
Olga Pak, the airline’s international media coordinator, says: “Air Astana is 11 years old this month, but in that short space of time it has grown from 16 to 676 weekly flights operating on 19 domestic and 38 international routes, prompting the Centre for Asia Pacific Aviation (CAPA) to state that it has ‘performed better in its first decade than just about any start-up carrier’”. Direct flights from Hong Kong began last year, and Ho Chi Minh City came online in January 2013, complementing existing routes to Beijing, Seoul, Bangkok, Kuala Lumpur and New Delhi. The pendulum may slowly be swinging from west to east. Intercontinental’s Amangaliyeva says, “Our guest demographic is, in order, Kazakhstani, Russian, US, UK, Chinese and Korean visitors.”
One thing that was needed in Almaty was good mid-range accommodation as an alternative to the many Soviet-style options. April 2011 saw the opening of Worldhotel Saltanat, by far the most modern property in terms of design style and technology offerings. Originally a Soviet hotel built in 1969, it was completely refurbished and now boasts minimalist rooms with grey and orange accented décor, innovative use of space, touch lighting and free wifi throughout.
Almaty has a lot going for it – a stunning location, relatively mild climate (for this region), plenty of greenery along with the construction, and a bustling, typically Central Asian atmosphere. It must have come as a shock, therefore, when thousands of workers were suddenly told they must relocate to a small town in the middle of the Central Steppe 1,000km away.
ASTANA: CENTRE OF POWER
When in 1997 President Nazarbayev declared that a small, innocuous riverside town in the middle of Kazakhstan’s northern Central Steppe region would become the nation’s new capital, and would be developed into a gleaming metropolis, people thought he was committing political suicide. But sure enough, 16 years on Astana has indeed materialised from the empty steppe as a futuristic city of astounding buildings that could stand up against Dubai or Hong Kong in the post-modernist
skyline stakes.
Constructed from scratch on the left bank of the Esil River (the old town is on the right bank), the nation’s political and administrative centre is brash but undoubtedly impressive. Edifices like the modernist headquarters of the state energy corporation KazMunaiGaz, the blue-domed and marbled splendour of the Presidential Palace, and the gold orb-topped tower known as Baiterek, or the “Tree of Life”, are both awe-inspiring and aesthetically pleasing. The Pyramid of Peace and Accord, a huge structure created by UK architect Norman Foster, has been so well received that Foster’s company was employed to work on the world’s largest “tent”, the Khan Shatyr leisure and shopping complex. Over the top it may all be, but it serves as a none-too-subtle testament to the country’s enormous reserves of cash.
The entire government was relocated from Almaty to Astana, and inevitably any company with a major stake in Kazakhstan was forced to open an office here too. As its infrastructure has grown and a thriving restaurant and nightlife scene has developed, the city has come of age, and it now has its own identity as a powerful, exciting engine of growth.
For the business traveller, location is once again important. The majority of hotels are on the right bank in the old part of town or the new Akbulak district to the east. The Okan Intercontinental was once the top hotel, but it closed down and in 2007 the Radisson Hotel, Astana opened on the right bank of the Esil River. Around the same time the top-end Rixos President Hotel also opened in the centre of the new city, but the Radisson has become the most popular business hotel.
“Our location is a big advantage, and being adjacent to a major business centre is another strong feature,” says general manager Jesper Francl. Equidistant from the new city government offices and the old downtown area (which itself has grown impressively), the Rezidor Group that operates Radisson has just opened a brand-new property next to the hotel. The 248-room Park Inn by Radisson will also be under the eye of Francl, who is excited by its potential. “It’s a new product, and will allow us to get a good share of the mid-market sector because there are no other international hotels in this mid-range sector in Astana.”
Adding to an already testosterone-fuelled construction industry is the news that World EXPO-2017 will be held in Astana. Business opportunities will proliferate as plans for the Expo kick into gear, and hotel groups are already jostling for position. A Marriott will open next year in the new town area, a 60-storey Ritz-Carlton is planned, and the old Okan Intercontinental building has been taken over by Ramada Plaza. Meanwhile locally owned hotels are opening all the time, and they are learning fast that foreign guests expect more than the Soviet-era shenanigans of old.
The view south from the Intercontinental Almaty
ASPIRATIONS AND CHALLENGES
In his 2012 State-of-the-Nation address, President Nursultan Nazarbayev outlined a new 2050 Strategy for Kazakhstan’s development, announcing a series of milestone reforms aimed at improving governance, the welfare and tax systems, providing support for SMEs and developing infrastructure. Currently ranked as the 51st most competitive country in the world, Kazakhstan, according to Nazarbayev, should be ranked among the 30 most advanced nations by 2050.
It’s a grand scheme, and they have the money to do it. However, of primary concern for businessmen is the red tape involved in doing business here – a Soviet legacy that remains in both government and private sectors. Also an issue is the general level of English – even in the hospitality industry this has been a problem in the past.
According to Radisson’s Francl, “the issue of finding English-speaking staff is certainly improving, but it is not easy. There is a definite need to develop education in the hospitality sector; it would be good to have franchised hospitality schools within Kazakhstan, along the lines of the very good systems in Europe.”
Simon Williams, cultural attaché at the British Embassy and director of the British Council in Almaty, says: “We will be opening teaching centres in Almaty and Astana later this year, but right now we work with the state system to give assistance in developing English courses in schools and universities. We also have big plans for the services and vocational sectors.”
There are also issues around the ageing and insufficient airport infrastructure. This is especially true of Almaty, which has the greatest volume of traffic but has not seen
any noticeable upgrading or improvement in at least eight years.
This must be a source of frustration for Air Astana, which is busy developing at a rapid pace. Between now and 2017 the airline will be upgrading its fleet to help meet demand. This process has already begun, with the delivery of two new A321 aircraft and four new A320s this year. Also in 2013 the first of three new B767-300ER widebody aircraft will join the fleet, and by 2017 the first long-range B787 “Dreamliner” is scheduled for delivery.
Air Astana is thinking big, but why not? Kazakhstan is a big country, with phenomenal resources and massive potential. The heart of Eurasia is beating stronger than ever.
WHERE TO STAY
Accommodation in Kazakhstan is expensive – it’s possible to find budget hotel rooms for around US$80 but these, while acceptable, do not offer much in the way of facilities. To get anything approaching high service standards you are looking at US$180-200 per night, with up to double that for the top luxury hotels.
Almaty
Intercontinental Almaty – www.intercontinental.com
Rixos Almaty – www.rixos.com
Rahat Palace Hotel, Almaty – www.rahatpalace.com
Grand Hotel Tien Shan – http://tienshan-hotels.com
Worldhotel Saltanat – www.worldhotelsaltanat.com
Holiday Inn – www.holiday-inn.com
City Hotel Tien Shan – http://tienshan-hotels.com
Astana
Radisson Hotel, Astana – www.radissonblu.com/hotel-astana
Rixos President Hotel – www.rixos.com
Beijing Palace Soluxe Hotel Astana – www.soluxe-astana.kz
Grand Park Esil – www.grandparkesil.kz
Park Inn Astana by Radisson – www.parkinn.com/hotel-astana
ESSENTIAL INFO
Visas Citizens of 47 countries – including most of the EU member states, those of the Middle East region, many East and Southeast Asian countries and the US – are eligible for a simplified visa procedure which does away with the old Letter of Invitation (LOI) requirement. Now all you need is a completed application form, passport, photograph and letter of explanation of the purpose of your trip, along with the fee.
Processing of tourist and business visas usually takes 2–8 working days. You can apply for a single, double, triple or multiple entry visa (an LOI is required for multiple entry visas from all nationalities). For more information and updates on visas/other entry conditions, visit www.mfa.kz
Language Russian is the lingua franca in Kazakhstan, although Kazakh is the official state language. If you do not speak Russian, then you will need a guide or interpreter. This is changing, slowly, as the government has declared that all Kazakhstanis must learn Kazakh and English to a reasonable level of competence within the coming decade.
Getting around Both Almaty and Astana are well laid out and relatively easy to navigate, though distances can make walking an undertaking. The local transport networks for both cities are extensive but confusing, with no English signage, so the only practical option is taxis. Your hotel can call one of the private taxi companies for you (they speak no English), or simply stand by the side of the road with your arm out and forefinger down and you’ll find that every third private car acts as an unofficial taxi. You’ll need to know where you are going (in Russian) but in general a trip across either city will cost around 1,000-2,000 tenge (approx US$7-14) for a foreigner (double the local price).
A recent boon for Almaty has been the opening of its 8km Metro subway line. Cutting in an L shape across the city, it costs only 80 tenge (US$0.53) and is fast and efficient. Extension lines are planned that will cover a wider area and hopefully ease traffic congestion. Astana is also planning a light-rail network that will span the old and new city areas, as well as connecting to the EXPO-2017 site.
