🌊 HYDRO ENERGY HYPE | TRAVEL INDUSTRY H1 2022 | GORKHI-TERELJ NATIONAL PARK

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Welcome to our 30th edition! 🎉 It's been a long way but there's still a much longer one to come. Stick with us and don’t miss out on the latest news and insights. 

🤔 DID YOU KNOW?

🌊 WHAT'S THE HYPE ABOUT HYDRO ENERGY?

The recent visits of the Chinese Foreign Minister and UN General-Secretary to Mongolia have shed a light on a number of crucial issues our country is experiencing, resulting in decisions of substantial importance to the entire country. Perhaps, the most important result of those visits was the fact that China has agreed to facilitate the Erdeneburen hydropower plant project (HPP), while Antonio Guterres has also expressed his support for the Egiin Gol HPP. 

Why is hydro energy receiving so much attention?

• More independence: With the successful implementation of the Erdeneburen HPP, Mongolia’s western provinces won’t need Russian and Chinese electricity, which currently covers 72% of their consumption. The Egiin Gol HPP will also reduce Mongolia’s dependence on electricity imports from Russia by fully covering the Central Region Power Grid’s consumption during peak demand months.

• Diversification: In 2021, Mongolia produced around 7 billion kWh of electricity, 88.8% of which was generated from coal. The increase in the production of renewable energy - to be more exact, the diversification of energy sources - will boost the country’s energy security, as well as reduce the adverse effects of traditional energy on the environment.

• Potential: The estimated energy potential of around 3,500 Mongolian rivers with a combined length of more than 60,000 km currently stands at 5,700MW. If only 50%-60% of that potential is used, 20 billion kWh of electricity can be produced at an installed capacity of 3,000 MW each year - almost 3 times more than needed to cover the country’s total electricity consumption.  

So why did it take so long for these HPPs to get off the ground?

• Environmental aspects: Both Erdeneburen and Egiin Gol hydropower plants are planned to be built in ecologically sensitive areas of Tsambagarav Uul National Park and Baikal Lake, respectively. While the construction of the Egiin Gol HPP had adamantly been resisted by the Russian government for decades, in the case of the Erdeneburen HPP, it was the local community that protested against the construction of the power plant.

• Politics: Since the implementation of the HPPs would practically make Mongolia independent from expensive electricity imports, many people believe that Russia’s reluctance to support the projects was mainly driven by its national interests rather than concerns about the environment. The changes in the Mongolian government and the HPPs’ management haven’t been conducive to the successful implementation of the projects either. 

With Russia, China and even the UN finally showing some support for the Erdeneburen and Egiin Gol power plants, the hope that their construction won’t be postponed by yet another decade is higher than ever. Nevertheless, let’s see what happens. 🤔

✈️ FOREIGN INFLUENCERS PROMOTING  MONGOLIA 

A total of 121.7 thousand tourists visited Mongolia in the first 7 months of this year - a 722.2% increase from the same period last year.

Average contribution per tourist = $1,000

The revenue of the tourism industry in the first 7 months of 2022 reached $122 million (a 985.8% growth compared to the same period last year). If we divide that amount by the above-mentioned 121.7 thousand, we get around $1,000 per tourist. Considering that the average contribution of each tourist to the Mongolian economy was around $1,200 in 2019, it seems like the travel industry hasn’t fully recovered from the aftermath of COVID-19. 

Who were the tourists?

46.6% of the tourists who came to Mongolia during the given period were Russians, 18% - South Koreans, 9.9% - Kazakhs, and the rest - Americans, Europeans and other Asian nationals. Notably, the Chinese, who accounted for as much as 36.4% of all travelers in the first half of 2019, made up only 6.1% of the total number of tourists this year. The decrease can be explained by China’s continued border closures.

While the number of Chinese tourists fell, the inflow of South Korean travelers increased by 39.4 times from the same period last year and reached 21.9 thousand. The reason - South Koreans may now visit Mongolia visa-free for up to 90 days until the end of 2024. 

What do the tourists say about Mongolia? 

The number of blogs, vlogs, photos and videos about traveling in Mongolia that have recently appeared on the internet clearly show that the country received much more content creator tourists than ever before. Here’s what they have to say or show about our country:

• Photography: Paul Zizka 

• Vlog: Korean Jay

Must-visit websites before you come

• Meanwhile in Mongolia: Just about everything you need to know

• Information on visas: you might not even need one 😉 

🏃‍♀️ QUICK STORIES

📌 SC Ventures and AND Global establish Tech Partnership. With SC Ventures’ expertise and global network of building new business models and AND Global’s capabilities of building scalable and viable tech solutions, both organizations will focus on accelerating innovation and building commercially viable, investable, and scalable tech solutions.

📌 Mon Beef LLC successfully completed IPO with oversubscription of 228%. As much as 2,524 investors participated in the IPO, willing to invest ₮6.6 billion in total - more than twice as much as the company’s initial target of ₮2.9 billion.

📌 Financial Regulatory Commission approves IPO of Sendly, the first officially licensed company that provides safe and cost-efficient international money transfer services. The company is looking to offer 30% of its shares to the public, raising ₮10 billion in total. The IPO offer price per share stands at ₮150.

📌 Construction of “Shine Zuunmod” aerotropolis in Khushig valley begins. The city is planned to be built on an area of 55 HA and accommodate 150,000 people. The construction is being implemented with a total investment of ₮498 billion from the state budget.

🟦 TOP NEWS

1. Interview with Bolor Ganbold, Mongolia’s First Female General. (The Diplomat)

2. Mongolia exports over 11 mln tons of coal in first 7 months. (Xinhua)

3. Mongolia’s Prime Minister Wants to Transform the Country. That Means Looking Beyond Russia and China. (Time)

4. Nuclear-free Mongolia a ‘symbol of peace in a troubled world’: Guterres. (UN News)

5. The War in Ukraine: Lessons for Mongolia. (The Diplomat)

6. How a Tax Victory in Mongolia Is Also a Major Win in the Fight Against Poverty. (Global Citizen)

7. China accelerates Mongolia investment to ‘facilitate’ Russia trade link and secure energy, commodities. (South China Morning Post)

8. Stalwart Action becomes MVP of PUBG Mobile World Invitational (PMWI) 2022: Main Event. (Sportskeeda)

👃 GLIMPSE OF MONGOLIA

About: If you don’t have much time to experience the whole of Mongolia, the Gorkhi-Terelj National Park located just around 55 km northeast of Ulaanbaatar is the place you should visit. It is considered one of the most beautiful national parks in Mongolia and offers a wide variety of activities, including hiking, rock climbing, horse riding, swimming, etc.  

• Here you can find a trip of your choice.

• Take a look from above.