Nowadays, distances seem shorter, and borders are more open, so travelling has become an essential part of the lifestyle. It opens up world destinations for exploring different cultures, promoting tolerance and creating opportunities for international cooperation.
In May 2024, Mastercard released its fifth annual report, Travel Trends 2024: Breaking Boundaries, identifying current travel industry trends. For example, the report revealed that travellers spend one more day on holiday than before the COVID-19 pandemic.
Kursiv interviewed Suleyman Sozeri, the company’s vice president for the CIS countries, about how Mastercard turns tourism into a world economic development driver by hard numbers only.
Payments are fuelling tourism
— Mr Sozeri, you frequently visit Uzbekistan and can see changes in different sectors, including tourism. Please explain why Mastercard is involved in developing this sector.
— Uzbekistan is becoming a significant tourist destination that is opening up to the world. We cannot ignore notable changes in tourism and the overall economy. I want to outline a few key reasons why Mastercard is interested in developing tourism.
First, tourism drives economic growth globally. The industry creates numerous job opportunities for people with different education levels and contributes to the development of small and medium businesses.
Secondly, because Mastercard cards work in more than 200 countries worldwide, we have access to a wealth of data while maintaining the complete confidentiality of cardholders. We cannot access user names or card numbers—all personal information is encrypted. But we do have insight into our clients’ consumer preferences: where they stay when travelling, how much they spend, and their preferences for entertainment and restaurants. This provides a vast amount of anonymous information in numbers that helps drive industry development.
— Who do you cooperate with to develop the tourism industry?
— We cooperate with tourism organisations, restaurants, hotels and associations. In partnership, we develop exclusive offers and provide valid discounts when paying with Mastercard cards. Most importantly, we create a unique experience for cardholders so they can enjoy their journey with just a Mastercard and a mobile phone.
On a different note, we also focus on social responsibility. We are sure that we can contribute to economic growth, inclusion and sustainable tourism development. By providing our assets, platforms, technologies and solutions, we invest in countries’ infrastructures and help them develop and implement effective marketing strategies.Due to this involvement, we keep our focus on the global industry.
— Do you directly influence the tourist flow?
— We organise various promotional activities in partnership with local banks, tourism offices, and other partners each year. This includes the distribution of vouchers and the draw of sponsored trips. Additionally, Mastercard offers exclusive travel experiences and services to premium cardholders, such as airport lounge access and free roaming. We also have a very unique product.
Our Priceless Program aims to stimulate tourism by providing unique experiences, discounts, and cashback to our cardholders. The https://www.priceless.com/ platform accumulates the best global events and attractions, encouraging people to travel and explore, taking advantage of Mastercard benefits. We are committed to providing exceptional and exclusive experiences beyond standard tourist offerings: museum visits guided by renowned art experts, backstage tours, or access to the Harry Potter movie set. We are currently working on setting up the Priceless Program in Uzbekistan.
Stay and pay
— Mastercard has significant expertise in collaborating with travel centers worldwide. What potential do you see in Uzbek tourism?
— Uzbekistan has excellent tourism potential. Last year, the country welcomed 7 million tourists, a 40% increase from the previous year. While this is a significant achievement, most visitors are from neighbouring countries and only stay for two or three days.
Uzbekistan has the capacity to attract 10 million tourists annually but to achieve this, the industry should make an effort to inspire longer stays and increase spending. Encouraging small traders, artisans and tour guides to accept card payments from international tourists can boost their sales and services, leading to a better experience for visitors and increasing the likelihood of them returning to Uzbekistan.
Creating the necessary infrastructure for fast, convenient, and secure non-cash payments is crucial, considering most tourists prefer card payments over cash. Mastercard offers simple and effective solutions, particularly for small and medium businesses, to support the growth of tourism and the economy. Additionally, Mastercard will soon introduce business cards in Uzbekistan and promote the distribution of software that allows small businesses to accept card payments using just a smartphone.
— What factors could influence continuous digitalisation in Uzbekistan, and what are Mastercard’s actions?
— Competition. Positive competition is beneficial for the final consumer. The Uzbekistan government is currently taking the right step by implementing digital transformation and attracting new market entrants.
Internet accessibility in Uzbekistan has significantly increased, with an impressive compound average annual growth rate of e-commerce of 47% from 2018 to 2022. We should just keep going.
We have established strong partnerships with the Central Bank for digital payments ecosystem and cyber security. We are also collaborating with the Ministry of Digital Technologies to support the digitalisation of small and medium-sized businesses. Furthermore, we engage with financial institutions to develop various programs. In conjunction with the Ministry of Investment, Industry and Trade, we are setting up an e-commerce school. This initiative aims to educate individuals on setting up web pages, driving online sales and implementing effective marketing strategies.
Additionally, we are working closely with the Ministry of Ecology, Environmental Protection, and Climate Change of Uzbekistan to enhance the tourism experience by providing digital analytic tools and promoting non-cash payments.
Uzbekistan is ready to adopt Mastercard’s solutions. We are committed to implementing and advancing our best solutions and products to contribute to the country’s digitalisation and development.
