Click here for the original Newsletter!

The Sustainable Tourism Development Project (STDS) is designed to improve opportunities for tourism in Mongolia and create new avenues for local communities to generate income. Tourism has long been an underdeveloped part of Mongolia’s economic potential. Tourism generated an estimated $1.2 billion in revenue in 2017, making up just over 11% of Mongolia’s GDP that year. New Tourism projects like that aim to maintain stable investment and growth in the tourism sector in Mongolia. STDS along is expected to bring greater economic benefit to about 11,000 local individuals in communities around Mongolia, and will improve local environmental conservation efforts.

In a first, the Asian Development Bank will loan funds to Mongolia for the STDS project, earmarked for better management of protected areas. The ADB wishes to support the diversification of the Mongolian economy by expansion of tourism sector. This will also help meet ADB’s goals of bringing greater economic activity to rural communities.  Minister of Finance Ch.Khurelbaatar and ADB Country Director for Mongolia Yolanda Fernandez Lommen signed a financing agreement this week in Ulaanbaatar. The ADB will provide a $38 million loan for ecotourism development in Khuvsgul Lake National Park and Onon-Balj National Park.

International Cashmere industry players met in Ulaabaatar this week. Mongolia produces 40% of cashmere globally. The government has promoted cashmere industry development in recent years, and cashmere sales reached 1.3 trillion MNT in 2018. At the conference this year, major textiles and clothing industry leaders met in Mongolia to discuss sustainable methods for cashmere production and sourcing. Global companies are increasingly looking for sources of cashmere that consider the well-being of the environment, the welfare of cashmere farmers and producers, and the livestock. Mongolia has the advantage that its cashmere sector is founded on traditional animal husbandry methods. With proper care, cashmere industry in Mongolia has room for major growth.

Click here to subscribe to the LehmanLaw Mongolia Newsletter!