American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 11, | April, 2023 P a g e | 80 www.americanjournal.org ANALYSIS OF THE CURRENT STATE OF DEVELOPMENT OF BUSINESS ACTIVITIES IN THE FIELD OF TOURISM AND REGIONAL DEVELOPMENT MODELS Umronov Eldorbek Sodirovich Researcher, Fergana Polytechnic Institute, Fergana, Uzbekistan 150100, Fergana City, Fergana Street 86. A B S T R A C T K E Y W O R D S The article examines the effectiveness of business development in tourist enterprises. In the course of the research, the analysis of the current state of the tourism industry and its regional development models were formed and based by the author based on theoretical and practical research. tourism, tourist resources, tourism industry, tourist activities, tourism services, economic indicators, dynamics of the main indicators of the tourism sector, small business and private entrepreneurship. Introduction The trends of socio-economic changes taking place on a global scale are reflected in the main macroeconomic indicators of the countries of the world, including the Republic of Uzbekistan, and the share of industries in relation to the gross domestic product. In the last 10 years, the trends related to the expansion of the servicing of economic processes indicate that the priority of production sectors in the structure of our country's economy may lead to the replacement of the activity of the service sector [1-4]. Due to the influence of world economic integration, the development of import and export of services depending on the level of our country's economy requires the satisfaction of the need for new technological bases for the creation and improvement of several business activities. At the same time, market services occupy a large share (more than 60 per cent) in the structure of gross services. According to national and international statistics, more than 40 per cent of foreign investments in Uzbekistan are involved in the development of the service sector, and this, in turn, shows the relevance of the development of this sector of the economy and determines its development prospects will be the basis [5-8]. The Main Part In recent years, more than half of the gross domestic product created in our country corresponds to the share of this sector. It includes industries and enterprises that provide the necessary conditions (material and immaterial) that ensure the improvement of the life of the country's population, and the continuation and profitability of production facilities. American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 81 www.americanjournal.org In developed countries, the share of the service sector in the gross domestic product is 60-70 per cent. The level of development of this sector usually reflects the level of development of the country and its economic potential. The increase in labour productivity in the real sector of the economy allows the transfer of a large number of labour and material resources to other non-productive sectors of the national economy. Tourism services occupy a key place in the main structure of the service sector in many countries of the world. In our country, the tourism sector has a place and a significant share in the increase of the statistics of the service sector in the following years, it can be said that this share is increasing more and more. The year-by-year increase in the real income of the population is reflected in the increase in demand for these services [8-11]. The increase in the volume of production in the real sector of the economy, the creation of new generation, complex, high-tech products ensures the growth of tourism services, and the increase in the type and quality of services in the field, in particular, the technical improvement of the field. In turn, the expansion of the scale of the tourism sector, the universality of services, the improvement of the quality of work, and the increase in the demand for goods. Accordingly, the development of production scale and entrepreneurial activity leads to a significant increase in general macroeconomic indicators. Based on the above points, it can be noted that the development of the tourism sector, in turn, is a factor in the development of the country's economy [12-15]. For countries with high economic potential, economic growth creates the basis for the expansion of the tourism sector, which means that the right connection is more significant. Conversely, countries with less economic potential cannot afford to spend more on tourism. In this case, tourism services are not always popular and high-quality, and precisely because of this, the expansion of the tourism sector and the improvement of its quality characteristics increase the demand for products, stimulate the development of the real sector of the economy, that is, reverse relations occur. Currently, the tourism industry is of crucial importance in the economy of developed countries. The level of real growth of the country's gross domestic product, changes in the share of industries and sectors, and the number of key indicators per capita reflect the level of development of socioeconomic systems. Based on this, the study analyzed the changes in the volume of services in the field of services, in particular, tourism, which is its special direction, based on the time series of some key macroeconomic indicators in our country (Table 1). Table 1. Changes in some economic indicators representing the development of the tourism sector Indicators Years 2014 2015 2016 2017 2018 2019 2020 2021 Gross domestic product, billion soum 1 8 6 8 2 9 .5 2 2 1 3 5 0 .9 2 5 5 4 2 1 .9 3 1 7 4 7 6 .4 4 2 4 7 2 8 .7 5 2 9 3 9 1 .4 6 0 2 1 9 3 .0 7 3 4 5 8 7 .7 The volume of services, billion soum 6 8 0 3 2 .1 7 8 5 3 0 .4 9 7 0 5 0 .0 1 1 8 8 1 1 .0 1 5 0 8 8 9 .8 1 9 3 6 9 7 .8 2 1 9 9 7 8 .5 2 8 4 1 6 5 .4 American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 82 www.americanjournal.org Share of services in GDP, % 3 6 .4 3 5 .5 3 7 .9 3 7 .4 3 7 .1 3 5 .5 3 6 .5 3 8 .7 The volume of additional investments in fixed capital, billion soum 3 7 6 4 6 .2 4 4 8 1 0 .4 5 1 2 3 2 .0 7 2 1 5 5 .2 1 2 4 2 3 1 .3 1 9 5 9 2 7 .3 2 1 0 1 9 5 .1 2 3 9 5 5 2 .6 The volume of services per capita, thousand soums 2 2 1 1 .9 2 5 0 9 .0 3 0 4 7 .3 3 6 6 8 .3 4 5 7 8 .5 5 7 6 8 .2 6 4 2 6 .1 8 1 3 8 .8 The volume of services created by small business and private business entities, billion. soum 4 0 1 8 7 .9 4 7 2 6 9 .6 6 1 3 4 6 .2 6 9 2 1 2 .7 8 4 4 3 3 .4 1 0 3 1 0 6 .6 1 1 4 0 5 2 .7 1 4 4 8 1 2 .7 During 2014-2021, the share of the service sector in the country's gross domestic product changed based on a certain fluctuation, that is, in 2014, this indicator was 36.4 per cent, and it steadily grew until 2018. , reached 37.1 per cent. The impact of the coronavirus pandemic, which occurred worldwide since 2019, did not fail to shake the dynamics of macroeconomic indicators, that is, during this period, the index of the volume of services in the GDP was 35.5percent and by the end of 2020 it changed to 36.7 per cent. Since 2021, it has reached a growth trend of 38.7 per cent due to the decrease in the spread of the pandemic. The volume of additional investments in fixed capital, calculated from the main macroeconomic indicators, had a stable growth trend during the last nine years under analysis. The per capita volume of services created by the service sector and the volume of services created by small businesses and private entrepreneurs have been growing rapidly over the years. The analysis of the indicators of the development of the tourism sector observed in the national statistics system for the period 2014-2021 shows that the sector has developed rapidly during the past eight years (before the pandemic) (Table 2). Table 2. Dynamics of the main indicators of tourism in Uzbekistan No Indicators Years 2014 2015 2016 2017 2018 2019 2020 2021 1 Tourism consumption within the country, bln. soum 1 3 5 7 6 .2 1 4 0 1 0 .7 1 3 7 7 2 .5 1 6 5 6 8 .3 2 0 5 6 1 .3 2 7 6 9 6 .0 5 2 7 1 .2 1 9 8 5 2 .5 2 The volume of services offered by the tourism sector, bln. soum 6 6 5 1 .7 7 2 0 3 .8 7 8 0 9 .0 8 2 6 1 .9 8 6 5 8 .4 9 3 3 3 .8 8 5 4 0 .4 9 8 4 8 .6 American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 83 www.americanjournal.org 3 The number of people employed in tourism, thousand people 1 8 5 .0 1 8 8 .4 1 7 0 .9 1 8 7 .6 2 0 1 .0 2 3 0 .5 1 8 9 .2 2 8 2 .5 4 Results of activity of service industries related to the tourism industry Accommodation and catering services, billion. soum 1 1 1 8 .7 1 3 0 2 .5 1 5 0 2 .5 1 6 9 3 .8 1 8 2 3 .9 1 9 6 7 .1 1 6 9 0 .2 2 1 8 5 .2 Culture and art, billion. soum 3 5 4 .6 3 7 3 .5 4 1 4 .7 4 3 9 .3 5 4 7 .8 6 5 5 .8 6 2 4 .5 6 7 0 .2 transportation and storage, bln. soum 1 4 0 5 2 .3 1 4 9 0 5 .7 1 5 7 2 5 .5 1 7 5 0 9 .0 1 8 7 1 3 .4 1 9 9 5 0 .6 1 9 5 2 0 .2 2 2 5 4 0 .8 Trade services, bln. soum 1 2 7 1 7 .6 1 4 0 9 5 .8 1 5 3 2 5 .2 1 5 4 8 3 .6 1 6 2 7 5 .4 1 7 4 2 9 .9 1 7 7 2 4 .1 1 8 5 2 8 .2 In 2014-2021, the level of tourism consumption within the country increased at a steady pace due to the increase in the population and the improvement of living standards. If in 2014 the volume of tourism consumption within the country is 13576.2 bln. amounted to 19,852.5 billion soums by 2021. However, in 2020, due to the decrease in the demand for tourism services of the population due to the existing conditions, this indicator decreased by 2.5 times from the indicator in 2014. Nevertheless, the volume of services offered by the tourism sector has steadily increased over the past seven years. This is more clearly reflected in the change in the number of labour resources employed in the tourism sector. In particular, during 2014-2019, the number of labour resources employed in the industry increased from 185,000 to 230,500 people. At the same time, the development of the tourism sector has a multiplier effect on the development of industries and industries that cross the lines of activity. In particular, the development of the tourism sector has a direct impact on the development of accommodation and food services, culture and art, transportation and storage services, and retail trade, which are the main links of the service sector. Table 2 shows the changes in the results of activities in the above-mentioned service areas during the analyzed period. If we pay attention to the analysis of these indicators, it shows that the level of development of the related service industries has recorded trends of change in parallel with the main tourism industry. This confirms the above points once again. The following table shows the number of tourist enterprises that carried out tourist activities in different regions of our country during 2011-2020 and the in-kind indicators of the services provided by them (Table 3). However, by 2020, the number of tourist enterprises operating under the influence of the pandemic factor has decreased to 337, and they have provided services to a total of 212,300 customers. As can be seen from the analysis of the data in the table, tourism was the most affected sector of the national American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 84 www.americanjournal.org economy due to the impact of the COVID-19 pandemic that started at the end of 2019 and the largest decrease in the volume of work. During the analysed period, the number of tourist companies and organizations operating in our country has increased in proportion to the volume of tourist flow. If in 2011, a total of 332 tourist firms and organizations operated in the territory of our country, and they provided tourist services to a total of 411.7 thousand customers (370.1 thousand people) and sent them (41.6 thousand people) services provided. By 2019, the number of operating tourist firms and organizations increased by 1.56 times and reached 517. During the year, these tourist enterprises provided tourist services to a total of 942,000 customers (788,800 people) and departures (128,500 people). Table 3. Tourist enterprises that have carried out tourist activities in the Republic of Uzbekistan and 1activity indicatorstheir Indicators Years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Number of tourist companies and organizations, unit 332 358 336 343 398 433 449 502 517 337 Number of clients served by tourist firms and organizations, thousands of people 411.7 511.6 505.4 514.1 560.4 465.4 670.0 713.2 942.0 212.3 Including: The number of received customers, thousand people 370.1 431.7 416.6 419.0 421.3 351.0 558.0 613.4 788.8 186.2 Number of sent customers, thousand people 41.6 53.7 63.4 61.2 98.4 80.1 72.5 84.9 128.5 18.6 Based on the above analysis, it can be said that from 2011-2020, the trend of steady growth in the volume of tourism services has been achieved in all regions of our country. This, of course, in the expansion of the market of tourism services in our country, accelerates the achievement of goals in the development of business activities in the following directions: − the rapid development of the service sector; − increasing the role and share of services in the formation of the gross domestic product; 1The information in the table was developed based on the information of the State Statistics Committee of the Republic of Uzbekistan. American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 85 www.americanjournal.org − to fundamentally change the composition of the services provided due to modern high-tech types of the service sector; − the rapid development of the tourism industry, increasing its role and share in the economy; − diversifying and improving the quality of tourist services; − expansion of tourism infrastructure; − liberalization and simplification of export activities; − diversification of export composition and geography; − expanding the export potential of economic sectors and regions; − to reduce the number of subsidized districts and cities and to expand the income base of local budgets due to the rapid development of industry and service provision, to implement comprehensive and proportionate development of regions. In the course of the research, the volume of services provided by the service networks operating in the service sector, which is considered the basis for the development of entrepreneurship, was statistically analyzed. According to the results of the analysis, the volume of creation of services in our republic in 2014 was 68.0 trillion, amounting to 284.2 trillion soums in 2021. it was found that it reached soum. Over the past 8 years, the volume of services created in the sector has reached a growth rate of 4.2 times (Table 4). During the period analysed in the study, the high development of services produced by types of economic activity was accommodation and catering (12.0 times), architecture and engineering (9.0 times), financial services (8.9 times), health shows that there was rapid growth in the health care (5.7 times) and education (5.5 times) services. It should also be recognized that during the years of the analysis, the volume of services produced by types of economic activity developed at a steady pace and had a significant positive impact on the share of the country's gross domestic product. Based on the data, we can observe a rapid increase in the volume of services produced over the last eight years. This, of course, shows the growing demand of consumers for intangible products created in the service sector and the development of business activities in the sector. (in the account of 2Table 4. The volume of services provided by the main types of economic activity trillion soums) Indicators Years In 2021 compared to 2014, times 2014 2015 2016 2017 2018 2019 2020 2021 Services - total 68.0 78.5 97.1 118.8 150.9 193.7 219.9 284.2 4.2 including by main types: information and communication services 4.5 5.2 6.3 8.2 10.3 10.9 13.9 17.7 3.9 financial services 6.7 8.2 9.9 15.0 21.3 34.0 45.8 59.7 8.9 transport services 23.8 26.8 30.6 36.2 44.2 54.5 53.6 67.2 2.8 accommodation and food services 0.7 0.9 3.0 3.7 4.7 5.9 5.4 8.4 12.0 trade services 19.0 21.4 27.4 32.0 39.7 48.7 57.6 72.5 3.8 2It was developed by the author based on the information of the State Statistics Committee of the Republic of Uzbekistan. American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 86 www.americanjournal.org real estate services 2.2 2.8 3.4 4.0 4.9 6.0 6.1 8.0 3.6 educational services 2.2 2.7 3.3 4.4 5.4 7.2 8.5 12.0 5.5 health care services 0.9 1.1 1.4 1.7 2.2 3.1 3.4 5.1 5.7 rental and leasing services 1.5 1.8 2.3 2.6 3.3 3.7 4.1 5.3 3.5 repair services for computers, personal items and household goods 1.4 1.7 2.2 2.3 2.6 3.2 3.3 4.7 3.4 personal services 2.0 2.4 2.9 3.1 3.7 4.6 5.0 6.7 3.4 services in the field of architecture, engineering research, technical testing and analysis 0.7 0.8 1.1 1.6 3.0 4.5 4.9 6.3 9.0 other services 2.3 2.8 3.2 3.9 5.5 7.3 8.3 10.3 4.8 As a result of the ongoing structural changes, the development of small business and private entrepreneurship in the economy of our country during 2014-2021 has changed in the form of a positive trend. Based on accurate calculations, the change in small business and private entrepreneurship by economic sectors increased by 2-5.6 times on average (Table 5). The analysis of the cross-section of individual sectors for 2014-2021 shows that small business and private entrepreneurship have increased in construction (5.6 times), trade (4.1 times), industry (3.9 times), agriculture (3.7 times) and the service sector (3.6 times) shows that it has increased rapidly, it is seen that this indicator has not increased to a high degree in the employment and export sector. Table 5.The size of the main indicators of small business and private entrepreneurship in economic sectors Indicators Years In 2021 compared to 2014, times 2014 2015 2016 2017 2018 2019 2020 2021 Industry (billion soums) 30907.0 39643.5 50654.5 61367.8 87962.0 83344.2 103020.8 121719.2 3.9 Construction (billion soums) 13944.9 16954.0 19671.0 22469.4 37451.7 53960.9 63866.6 77762.0 5.6 Employment (thousand people) 9950.8 10170.4 10397.5 10541.5 10128.8 10318.9 9865.7 10070.7 1.0 Export (million USD) 3657.8 3377.7 3139.2 2759.3 3810.8 4714.8 3100.9 3711.2 1.0 Import (million USD) 6352.6 5523.1 5676.8 7511.9 10916.2 14972.2 10943.3 12389.0 2.0 Trade (billion soums) 50197.8 61972.3 78935.6 92973.0 114896.4 138920.7 164106.1 204787.4 4.1 Agriculture, forestry and 82957.2 101197.5 118011.4 152010.5 191759.2 219466.9 253238.2 307280.2 3.7 American Journal of Business Management, Economics and Banking Volume 11 April, 2023 P a g e | 87 www.americanjournal.org fisheries (billion soums) Services (billion soums) 40187.9 47269.6 61346.2 69212.7 84433.4 103106.6 114052.7 144812.7 3.6 Shipping (million tons) 416.1 472.8 538.6 548.8 611.7 641.0 638.9 678.9 1.6 Freight turnover (mln. ton-km) 8632.9 9225.1 10072.4 10444.4 11657.7 12152.3 12304.6 13108.1 1.5 Passenger traffic (million passengers) 4224.5 4486.3 4866.5 5037.5 5242.6 5345.0 4904.8 5237.6 1.2 Passenger turnover (mln. passenger. km) 93024.7 99872.8 107789.7 111435.0 115335.2 117412.7 107766.7 114681.5 1.2 The dynamics of indicators over the years show that the indicators at the end of 2020 show a certain downward trend due to the pandemic that started in 2019, and in 2021, the downward trend turns into a stable increase. 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