Local Governance and Tourism Development in Northern Kazakhstan: Case of Akimats’ Institutional Practices

The components of the institutional and organizational environment for the functioning and development of tourism and recreation are institutions that directly or indirectly manage and influence the development of tourism and recreation at the regional level, as well as the organizational mechanism for the implementation of tourism and recreation policy [1, 2].

The institutions intended to promote tourism development at the regional level in Kazakhstan are local self-government bodies (Maslikhats) [1]. Thus, regional, district, and city Maslikhats approve local tourism development programs within the limits of their powers; determine local budget funds for financial support of local tourism development programs; entrust their executive bodies with financing local tourism development programs at the expense of local budget funds; take measures to stimulate business entities that carry out activities to provide tourist services [3], etc.

Directly responsible for the development and implementation of local tourism and recreation development programs are the executive bodies of local government (Akimats).

Akimats (local executive government bodies in Kazakhstan responsible for regional administration and implementation of state policy), Maslikhats (local representative councils responsible for approving regional development programs and budgets), and public-private partnerships (PPP, cooperation mechanisms between government and private sector for infrastructure and service development) play a key role in regional tourism governance.

Within the limits of Akimats powers, the latter organizes an inventory of tourist resources and contributes to their protection and preservation. In local communities that see the tourism industry as one of the priority sectors of the development of the society's economy, special units may be created as part of the executive bodies of local government that oversee tourism and recreation issues.

The main role of local government bodies in the development of tourism and recreation on the ground is also due to their powers, which are not directly related to the field of tourism but have an impact both on the functioning of business entities and on the popularity of the territory they manage as a tourist destination. We distinguish the following among them: establishing local taxes and fees, zoning the territory [4], and ensuring the development of housing and communal services and road facilities.

However, the most important aspect of Akimats' activities in the tourism and recreation development in the territory entrusted to them, in our opinion, is their interaction with business entities (enterprises, institutions, organizations), the activities of which are directly or indirectly related to the sphere of tourism and recreation, and residents to solve problems and determine priorities for tourism development.

The establishment of cooperation with business structures and the public takes place with the help of an organizational mechanism for the development of tourism and recreation. Its main elements are local strategies and programs for the development of tourism and recreation, membership in tourist associations, PPP agreements, and participation in a tourist cluster.

In this study, the term “Akimat” refers consistently to local executive authorities, while “tourism cluster” is used to describe a geographically and functionally connected network of tourism-related organizations and stakeholders. Capitalization is standardized throughout the manuscript.

The purpose of the article is to analyze the features and identify the problems of the institutional and organizational environment for the development of tourism and recreation in local communities today based on the example of the North Kazakhstan region.

To achieve the purpose of the study authors solving following research questions:

1) What role do local authorities (Akimats) play in the development of tourism in Northern Kazakhstan?

2) What roles do tourism associations‚ PPP mechanisms and tourism clusters play in local government contexts?

3) What inhibits tourism development at a municipal level?

The study’s primary novelty lies in the fact that its findings go beyond general descriptions of Kazakhstan’s tourism potential. It examines in detail the practical implementation of tourism policy at the local government level, focusing not only on the provisions of strategic documents but also on the actual measures undertaken by local administrations (Akimats).

Another key aspect of the work is a comprehensive analysis of three essential instruments: tourism associations, PPP projects, and tourism clusters. The effectiveness of their implementation was assessed through expert opinions and ranking, revealing actual disparities between the country's various districts.

A qualitative approach to the study was chosen during the implementation of the study.

According to the purpose of the research, using the Google.com search engine, we selected the web pages of the district Akimats of the North Kazakhstan region and the Akimat of the city of regional significance Petropavlovsk. Based on the sample obtained, an expert pool was selected, consisting of employees of these Akimats responsible for the field of tourism.

The empirical material was obtained through expert interviews with representatives of local executive authorities (Akimats).

For example, respondents were asked questions such as:

- “How does your Akimat participate in tourism associations or cooperation platforms?”,

- “What concrete PPP projects have been implemented in your municipality?”,

- “Are there any functioning tourism clusters in your region, and how effective are they?”,

- “What are the main infrastructural or institutional barriers that limit tourism development in your district?”.

The interview responses were coded according to a coding frame‚ i․e․, headings that indicated the governance mechanism or institutional barrier under which the statement was to be categorized․ Similar statements were grouped into themes‚ allowing a municipality-to-municipality comparison․

In total, 42 experts participated in the study, representing district Akimats of the North Kazakhstan region and the Akimat of the city of Petropavlovsk. The experts were selected using purposive sampling.

The main criteria for inclusion in the expert group were: formal responsibility for tourism or related areas within the structure of the Akimat; involvement in the development or implementation of local tourism and recreation programs; and practical experience of interaction with tourism businesses, public organizations, or regional authorities. Depending on the organizational structure of a particular Akimat, one to three specialists were interviewed.

They were sent e-mail messages indicating the purpose and program of the study. Thus, experts were selected who agreed to participate in the study and provide all the information necessary for the study.

The data were collected between November 25 and December 25, 2022, by conducting both field and desk research.

The field study consisted in analyzing the current situation with the development of tourism and recreation in the districts of the North Kazakhstan region and the city of Petropavlovsk and consisted of in-depth interviews with the experts. In-depth interviews were used to identify the problems of tourism and recreation development in the North Kazakhstan region. The main criteria for analysis were the presence in the tourism and recreation development program documents of areas such as: membership of tourism business entities in tourism associations, concluded PPP agreements, and participation in a tourism cluster.

The interviewer introduced themself at the beginning of the interview. They explained the purpose of the study and presented open-ended questions that were outlined by us to clarify views and opinions on the research problem. The average duration of each interview was 25–30 minutes. The received interview recordings were decrypted during the field study using the service zapisano.org.

The desk study was aimed at analyzing studies on the tourism potential of the North Kazakhstan region [34-37], as well as strategic and/or program documents approved by Akimats aimed at the development of tourism and recreation, provided by experts by e-mail.

The participation of several researchers made it possible to increase the reliability and quality of the information received regarding the state of the tourism sector in the territories of the North Kazakhstan region through the triangulation of researchers involved in information processing. The results agreed upon by all participants of the study were recorded in the final document.

To help ensure coding reliability‚ two researchers independently read through the data and classified it into these categories‚ discussing and coming to agreement on the classification to minimize subjectivity․

After processing the interview results, an email was sent to the experts, asking them to rank various strategic directions for tourism and recreation development, as well as the existing challenges in the municipal units of the North Kazakhstan region, assigning scores based on their representation. Following this, each measure was assigned a rank according to the scores given by the experts.

For a more objective data analysis, the degree of consensus among expert opinions was measured using Kendall’s coefficient of concordance.

In the statistical analysis, n represents the number of experts (n = 42), while m corresponds to the number of ranked items, which varies depending on the table structure. Ties in rankings were adjusted using standard tie correction procedures. All calculations were performed using SPSS and Microsoft Excel for cross-check validation. The level of significance was set at p < 0.01.

The analysis of the main strategic directions for tourism and recreation development in the municipal units of the North Kazakhstan region (Table 1) showed that these directions are most effectively implemented in Petropavlovsk, Timiryazev, and Kyzylzhar districts. In contrast, Magzhan Zhumabayev and Tayinsha districts demonstrate the lowest levels of tourism and recreation development. Although limited in scope, some regional policy discussions and secondary sources indicate that tourism development in these districts requires stronger public-private cooperation and improved infrastructure. Infrastructural development such as transportation, accommodation and daily utilities are essential. There is also a need to develop cultural assets such as eco- and agrotourism and in line with the current digital age, its imperative that tourist bodies utilize mobile applications and social media platforms to increase their digital presence.

The challenges that Akimats need to address to improve the tourism sector in the North Kazakhstan region (Table 2) can be broadly categorized as follows:

1. Those directly related to membership in tourism associations;

2. Those dependent on the establishment of PPP agreements, which indirectly impact the tourism industry;

3. Those that hinder participation in a tourism cluster.

The first group includes: poorly developed offer of excursions on the territory; issues of safety of tourists and recreants (including on the water and in the mountains) have not been resolved; poorly developed infrastructure for active recreation (bicycle, motorcycle, car rental, sports entertainment, etc.); lack of tour operators and travel agents, which negatively affects the formation of the tourist brand of the territory and leads to the loss of potential consumers of tourist services; insufficient number of equipped facilities for recreation and entertainment (beaches, amusement parks, squares), low quality of tourism, recreational, wellness services, and etc. In order to address the first issue, it is important that we understand the perspective of the Akimats. The development of tourism is commonly viewed by Akimats as secondary to core mandates like infrastructure and public service delivery. This thinking pattern was also confirmed by the study [38], who identified this as a hindrance to sustainable tourism development in India. Stronger alignment of local development objectives with the potential of the tourism sector is necessary to change this mindset. A national policy that acknowledges active participation in PPPs and tourism associations as performance indicators for Akimats should be formalized by the Ministry of Culture and Sports in collaboration with the Kazakhstan Tourism Association (KTA). An example of such would be a top-down incentive which includes tourism cluster engagement in the yearly performance reviews of local administrators. Another method of encouraging participation of the Akimets will be Fiscal decentralization. Investments in tourism are frequently deprioritized in Akimats, which currently operate under strict financial constraints. Local governments could be given the authority to test out cluster formations and PPP proposals by giving Akimats discretionary funds linked to tourism-related targets, which are comparable to performance-based budgeting models in EU rural development programs. Additionally, allowing communities to keep a larger portion of tourism-related income would directly encourage financial support for the industry [39].

The following is worth highlighting among the main problems of the second group: the lack of pedestrian and bicycle paths [40]; the lack of organized places for collecting and removing garbage; insufficient number of organized places for parking vehicles; poor condition of the road surface; deficiencies in water supply and sanitation infrastructure; unsatisfactory water quality, etc. [41].

The issues in the third group include the absence of a marketing strategy for destination development, poor quality of roads leading to the tourist destination. It is also advisable to point out another significant drawback in the organization of tourism and recreation for participation in a tourism cluster – the unsuitability of infrastructure for people with special needs. Although the Akimats of the studied communities do not indicate this problem in the list along with other unresolved issues in the program documents, in some tourist destinations (Petropavlovsk), they already allocate funds from the local budget for the formation of infrastructure suitable for people with special needs.

These problems have been described in other studies. Thus, according to the study [7], the main problems for foreign visitors are the low level of service in catering and retail establishments, public transport, and taxis; unsatisfactory condition of roads; pollution of public places; difficulties with renting housing; underdevelopment of the entertainment industry for children; unreasonably high prices that do not correspond to the quality of services provided.

Similar shortcomings are also indicated in the study [3], according to which the problems are: insufficient development of the sanatorium and resort infrastructure, which does not meet the modern needs of recreants; poor quality of services and low level of service for tourists and recreants; unsuitability of accommodation facilities and public institutions for visiting people with special needs; inadequate popularization, etc.

The development and popularization of the territory as a tourist destination, especially among national tourists, is facilitated by the participation of the local community (represented by the Akimat) in all-Kazakhstan tourist organizations and associations, the main of which is the KTA. The purpose of its activity is the comprehensive development of the national tourism industry in the state, as well as the coordination and consolidation of the activities of its participants for the development of the national market of tourism and related services and to protect their economic interests. The following can be distinguished among the activities of the KTA: the unification of the efforts of tourism infrastructure entities and authorities and local government; the creation and promotion of a national tourism product; support of knowledge systems, education, and training in the field of tourism; development of quality systems, audit, and certification in the tourism industry, etc. [13]. One of the main means of implementing activities in these areas is the promotion of regional and local tourism products and assistance in establishing effective interaction between the state, local government, non-profit organizations, and entrepreneurs in the field of tourism [13].

However, the analysis of the current participants of the KTA showed low activity in its activities of both local government bodies and regional and local organizations of the tourist destination of the North Kazakhstan region. None of the studied Akimats are members of the KTA. This can be considered a significant disadvantage in the direction of tourism and recreation development in the North Kazakhstan region.

Participation from the local community is essential through digital storytelling projects that highlight lesser-known districts, seasonal festivals, and micro grants for family-run tourism enterprises. By incorporating social media marketing both officially and through collaborations with private indigenous bloggers participation of both local and foreign communities can be bolstered [42]. Furthermore, establishing intermunicipal tourism corridors like themed routes could disperse visitor flows and unite various communities under a common identity, which would promote a cluster mindset.

Lastly, administrative silos can be broken down by digital platforms. In order to promote openness and healthy competition, a regional "Tourism Governance Dashboard" that is available to all Akimats could monitor developments on important metrics, such as association membership, the quantity of PPPs, investment inflows, etc.

The next tourist organization we are considering (according to the participation of Akimats in it) is the National Association of Ecological Tourism "Elim-ai" (NAET). The NAET directs its activities to popularize and develop nature-friendly active recreation and ecotourism by bringing together all entities interested in the development of active ecotourism: business structures, public organizations, individuals, local government, and state authorities [13]. The main objectives of the functioning of the NAET are to promote the sustainable development of tourist territories and local communities, the development of natural tourism in Kazakhstan, the protection of biodiversity together with national parks, government agencies, and the business community, assistance in staffing and development of tourist infrastructure, conservation and rational use of natural and historical and cultural tourist resources, etc. The NAET participants include natural monuments of the North Kazakhstan region (Kokshetau, Serebryany Bor, Zhana Zhol Bor, Sosnovy Bor, etc.). However, as in the previous case, there are no representatives of Akimats among the members.

One of the elements of the organizational mechanism for the development of tourism and recreation in local communities is a PPP. Public authorities, local government bodies, and state and municipal enterprises and institutions can be participants in PPP on the part of the state. On the part of the private partner, the most interested participants in the PPP should be enterprises and organizations in the field of tourism and recreation: tour operators, travel agents, accommodation facilities, catering establishments, carrier companies, tour bureaus, event companies, etc.

The main forms of PPP implementation in Kazakhstan are agreements on joint activities, concessions, and leases. Concession and lease agreements are the most beneficial for the state partner, since in this case the main burden of conducting activities, making investments, and taking risks is borne by the private partner, and the ownership of the object of the contract remains with the state partner.

The analysis of PPP in the North Kazakhstan region indicates a low interest of business entities (private partners) in the opportunity to realize their potential in the field of tourism and recreation. The main reasons are the unattractiveness of a significant part of the tourist infrastructure facilities for private partners due to the need to invest significant financial resources in them with an indefinite payback period for the project; the lack of a legally enshrined minimum share of financial participation in the project of a private partner; poor professional training of employees of Akimats engaged in the preparation and support of PPP; lack of effective financial incentives for private partners (for example, tax holidays in the first years of the project) for participation in PPP.

To overcome the barriers to PPP incorporations, Kazakhstan should implement a PPP Risk-Sharing Framework, based on effective procedures in Poland, to get past the obstacles and difficulties with PPP and to foster community development [43, 44]. This would entail lowering barriers to entry for private investors by establishing Project Development Facilities (PDFs) at the oblast level to co-finance feasibility studies. Introducing pre-approved PPP templates, especially for standardized facilities like visitor centers or rest areas, to speed up implementation and cut down on negotiation time; and offering credit guarantees or minimum revenue guarantees to de-risk tourism PPPs in their early stages.

Additionally, Akimat staff members need to have access to professional development courses that concentrate on the managerial, financial, and legal facets of PPPs. Similar capacity-building initiatives in Central Asia have previously been funded by international donors, and these collaborations ought to be revived.

Another direction for the development of the territory as a tourist destination may be the formation of a tourist cluster within its borders or together with similar territories of the region that have tourist resources on their territories [45].

The tourism cluster is formed based on a voluntary association of tourism infrastructure entities to increase the competitiveness of their products and the attractiveness of the tourist destination and the region as a whole through their cooperation with local governments and scientific institutions. A characteristic feature of the functioning of clusters is that cluster entities cooperate vertically (for example, accommodation institutions work closely with travel agencies, catering establishments, entertainment centers, etc.) to achieve the goals of their activities while competing horizontally with each other (for example, with other accommodation institutions) [46].

The creation and functioning of a tourism cluster in Kazakhstan depend on the initiative and steps taken in this direction by Akimats since the latter are one of the most interested parties in the functioning of the cluster association on the territory. After all, the tourist cluster contributes to an increase in revenues to the local budget through the expansion of the tax base (primarily for local taxes and fees); increases the investment attractiveness of the territory [47], which positively affects the growth of investor interest in making investments within the community; employment growth and wage increases due to the emergence of new and expansion of existing business structures; development on the territory of related sectors of the economy [48]. That is why Akimats, first of all, should focus not on supporting individual business entities (even the largest taxpayers to the local budget), but on promoting the organization of industry clusters and maintaining good relations and competition within the cluster.

A retrospective analysis showed that the cluster initiatives of Akimats are weak in the territories that are the object of our study. Evidence of this is the absence of intentions to create a tourism cluster in the strategic and program documents for the development of tourism and recreation, developed by the majority of Akimats.

The analysis of the opportunities for the development of tourist clusters in the North Kazakhstan region allowed drawing the following conclusions:

- almost all areas have opportunities for the formation of a tourist cluster, even those in which there are no clearly defined tourist resources (for example, it is possible to create agro-tourism clusters);

- mainly tourist clusters should be built according to the classical structure, which includes all subjects of tourism infrastructure, as well as Akimats and educational institutions;

- the absence of parties in the cluster that provide support and assistance hinders the development of the tourism cluster;

- financial support from Akimats to popularize the tourism cluster at the start of its development is one of the prerequisites for the success of the cluster;

- the active activity of the tourism cluster allows Akimats to solve the problems of the local community (increasing employment, filling the local budget, improving infrastructure, increasing investment attractiveness, etc.).

The creation of Regional Tourism Cluster Councils (RTCCs), which are financed in part by the private sector and regional/oblast governments, is an additional remedy. To promote shared ownership, these councils should have a rotating leadership and include representatives from Akimats, tourism SMEs, NGOs, and universities. They would be responsible for mapping local value chains and finding synergies, such as connecting ecotourism to agrotourism and other forms of tourisms. By applying for international grants and certifications (such as Green Destinations) and coordinating marketing strategies and destination branding, regional tourism can be easily funded and promoted. A good example of such application is the South Tyrol Tourism Cluster in Italy which unites through shared marketing, quality certifications, and cooperative infrastructure projects, and it operates across multilingual, multimunicipality regions.