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Uzbekistan plans new tourist city in Khiva to strengthen hospitality and services

Uzbekistan is preparing a new international tourist city in Khiva that aims to ease the load on the UNESCO listed old town of Itchan Kala, create fresh visitor routes and services, and encourage guests to stay longer in the region. The project transforms tourism growth into a structured development plan for hospitality, construction and service businesses in Khorezm.

Tourist city concept in Khiva

During a working trip to Khorezm region, the President of Uzbekistan reviewed the concept of a new international tourist city to be built on the outskirts of Khiva. According to the presidential press service, the town is planned as a harmonious combination of historical heritage and modern urban planning solutions, positioning Khiva as a showcase for how Central Asian cities can grow without losing their character.

The architectural concept draws on centuries old urban design traditions of Khorezm, including the historic layout and street network of the ancient city of Vazir, which became the first capital of the Khiva Khanate in the early sixteenth century. This reference to traditional planning is meant to ensure that new construction fits naturally into the cultural landscape, enhancing the visitor experience rather than competing with the old city.

The complex will cover 12.3 hectares and bring together key tourism and service functions in one integrated district. Plans include hotels, a museum combining historical and contemporary exhibits, restaurants offering both national and international cuisine, retail outlets and a broad range of service enterprises. This concentrated mix of uses is designed to create a self-contained urban environment where tourists can sleep, eat, shop and explore, while reducing pressure on the fragile historic core of Itchan Kala.

Expanding hospitality and visitor services

Khiva has already seen rapid growth in its hospitality base over the past decade, with hundreds of hotels and guest houses built and the total room capacity multiplied several times. New tourist sites have opened, and the number of foreign visitors has increased sharply. The planned tourist city is meant to channel this momentum into a more balanced and sustainable infrastructure, avoiding overcrowding in the walled old town while giving investors clear locations and formats for future projects.

By adding new hotels and guest services outside Itchan Kala, the authorities aim to lengthen stays and diversify the range of experiences available in Khiva. Modern museums, themed restaurants and organized retail streets can support year round tourism rather than relying only on seasonal cultural flows. For local construction firms, architects and operators, this translates into a steady pipeline of projects from hotel shells and public spaces to interior fit outs and maintenance contracts.

The focus on mixed national and international cuisine, curated museum content and service businesses also positions the city as a platform for creative industries and experiential tourism. As new hospitality assets are built, demand will rise for high quality furnishings, interior solutions, signage and lighting, as well as digital and physical design that can meet global visitor expectations while expressing Khorezm identity.

Macroregional impact for Central Asian tourism corridors

The Khiva tourist city project adds another strong node to Central Asia’s emerging tourism and business travel corridors. By relieving pressure on a UNESCO World Heritage site and directing new flows into a purpose built district, Uzbekistan is signalling a more mature approach to managing tourism growth, balancing heritage protection with the need for modern accommodation and services. This approach is closely watched by investors assessing long term stability and scalability in the region’s tourism sector.

For transport and logistics operators, a dedicated tourist district simplifies planning for transfers, sightseeing routes and group tours, making Khiva easier to integrate into multi city itineraries across Uzbekistan and neighbouring countries. The clustering of hotels, restaurants and retail within a walkable area can reduce congestion in the historic center and support more efficient service delivery, from waste management and energy supply to last mile logistics for commercial outlets.

As Uzbekistan scales up tourism infrastructure in Khorezm, it also deepens the business case for complementary investments in regional roads, utilities and urban services. These backbone improvements support not only tourism but also construction, small manufacturing and trade activities that depend on reliable access and predictable regulations. For Central Asia as a whole, such flagship urban projects help define standards for quality, sustainability and investor engagement in heritage rich destinations.

For international companies in furniture, construction, interior and exterior solutions, design, architecture and retail trade, the planned tourist city in Khiva signals growing demand for hotel and restaurant fit outs, museum and public space design, and high quality urban furnishings tailored to both global visitors and local culture. The clustering of hospitality and service facilities on a defined site reduces entry risk, offers clear formats for cooperation with local developers, and provides a visible platform to showcase products and design expertise in one of Uzbekistan’s most iconic destinations, strengthening both market presence and long term investment opportunities in Central Asia.

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