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Good Morning! Mongolia’s Camel Festival takes place February 6–8 in Umnugobi. With the country’s camel population now over 500,000, this festival offers a rare chance to see thousands of camels in one place. A unique celebration of Mongolian culture, it’s a must-visit for travelers seeking an authentic experience! 

What’s inside today’s edition…

• 🇲🇳 Mongolia on Donald Trump’s Peace Board

• ⚡ Survival Challenge: Life Without Electricity

• 🏨 Hotel Sector on the Rise

No Time to Waste. Let’s Get Started! 🦘

MARKET

MNG: Combed cashmere exports increased sixfold in 2025, reaching 4,000 tons and generating $330 million in export revenue. 

U.S.: Mongolia has officially joined Donald Trump’s Board of Peace, becoming a founding member country.

KZ: Kazakhstan and Mongolia aim to boost trade turnover to $500 million in the mid-term.

😓 Outside Temperature: –37°C, Inside Homes: Darkness

Last Wednesday, a malfunction at Thermal Power Plant No.4 left residents of Ulaanbaatar without electricity, heating, and water for 3 consecutive days. Elevators stopped working, people were trapped inside, and demand for candles surged as households struggled to cope.

😫 A Known but Ignored Risk

This winter, the risk of Ulaanbaatar facing a severe energy collapse was not unexpected. In June, an accident occurred at Thermal Power Plant No.3. Within just 7 months, 2 major thermal power plants have suffered serious failures. Together, Power Plants No.3 and No.4 generate 77% of Ulaanbaatar’s electricity. If either plant malfunctions, the city risks losing power entirely. Today, both are operating under critical conditions.

🧓🏻 Aging Infrastructure, Delayed Solutions

Thermal Power Plant No. 4 has not undergone a major renovation for 43 years. A feasibility study proposes repairing Plant No.3 by installing a new boiler for $90 million, with a 1.6-year timeline, yet operations continue using equipment that has already exceeded its lifespan. The long-discussed Thermal Power Plant No.5, first proposed in 2011, has faced repeated delays and is now tentatively scheduled to begin construction in 2026.

😵‍💫 Piling Corruption Cases 

Officials have claimed for over a decade that there are insufficient funds to repair critical infrastructure, yet allegations of corruption in the energy sector continue to surface. Last week, former Energy Minister N.Tavinbekh was linked to a ₮7 billion corruption case over a consulting contract for thermal power plants in 10 provincial centers, allegedly awarded to a company connected to his adviser. Instead of calling for a proper investigation, current Energy Minister B.Choijilsuren publicly defended his predecessor.

• 😔 Soon after, 2 senior energy officials were also detained and are under investigation by the Anti-Corruption Agency.

🫣 Empty Promises, Real Consequences 

The energy sector has reached a breaking point, yet there is little evidence of genuine political will to reform or modernize it. Power plants continue to operate on the edge of failure while senior officials face corruption investigations. For residents, the consequences are immediate and unforgiving. When electricity fails, heating and water vanish as well, forcing families to endure freezing winter nights by candlelight.

⭐ Selected for you

ECONOMY & BUSINESS

• Rio Tinto reports record Q4 iron ore output, copper climbs as huge Mongolian mine ramps up. (SeekingAlpha) 

• Golomt Bank Launches Its Cooperation with the HDFC Bank. (GolomtBank)

POLITICS

• Aibek Moldogaziyev Appointed Ambassador of Kyrgyzstan to Mongolia. (AKIPress) 

• EEC Participated in Discussing Cooperation Prospects with Mongolia. (EEC)

• Billions of Trees: Mongolia’s National Movement Hits 127.9 Mln Trees. (KazInform)

• Kazakh Senate to Debate Key Deals With Mongolia, France. (TheCaspianPost)

• Social Protections Overlooked in Mongolia–UK Critical Minerals Cooperation. (EastAsiaForum)

• FIDE Representatives Visit Mongolia to Support Social and Educational Chess Activities. (FIDE)

CULTURE & LIFESTYLE

• Mongolia's Chinggis Khaan Museum Partners with Heritage International Institute. (ChinggisMuseum) 

• Mongolia Sets Plan to Advance Traditional Medicine. (President)

• Rome's Galleria Borghese Hosts Two Zanabazar Works from Mongolia. (FinestresullArte)

• NCT WISH Begins First Overseas Trip in 'On the Map' Mongolia. (TheChosun)

• What is Happening to Mongolian Language and Culture online in China? (PEN)

🏨 Mongolia’s Hotel Sector Keeps Expanding

Mongolia’s hotel and accommodation sector continues to grow, with revenue rising 22.3% year-on-year to ₮277.8 billion in the first nine months of 2025.

📈 Record Growth Over 3 Years

Total sector revenue increased from ₮208.3 billion in 2022 to ₮320.9 billion in 2024, representing a cumulative growth of 54% over three years. Moreover, over 2022–2024, the sector recorded an average annual growth rate of approximately 24%, signaling sustained momentum rather than a one-off post-pandemic rebound.

🛌 Non-Classified Hotels Drive Growth

The sector’s expansion has been driven overwhelmingly by non-classified hotels, which now generate the largest share of accommodation revenue. Specifically, non-classified hotel revenue rose 58.5% to ₮167.2 billion in 2024 over 3 years. Additionally, in the first 9 months of 2025, they generated ₮146.3 billion, nearly matching 2022’s full-year total. This growth is fueled by domestic travelers, longer urban stays, and flexible lodging, rather than new high-end capacity.

• ⭐ Premium Hotels Grow Slower: In contrast, 3-star and above hotels rose from ₮95.3 billion to ₮143.7 billion from 2022 to 2024, with ₮123.8 billion in early 2025. While expansion continues, it remains constrained by capacity limits and higher operating costs.

• ⚠️ 2-Star Hotels Lag: Meanwhile, two-star hotels hover around ₮10 billion annually, squeezed between low-cost options and premium brands, raising concerns about their long-term competitiveness.

🏚️ Capacity Constraints

Despite rising revenues, Mongolia’s hotel sector faces structural capacity limits, especially outside peak summer months. Nationwide, there are 492 hotels, 486 guesthouses, and 922 tourist camps, offering roughly 35,560 bed-nights. However, seasonality reduces supply: of 145 winter-listed camps, only 55 operate, providing just 3,500 bed-nights when demand is concentrated in cities.

Overall… Overall, Ulaanbaatar hosts international 4- and 5-star hotels, including Shangri-La, Kempinski, Best Western, Novotel, and Pullman, yet room shortages persist during peak months, June–September, underscoring the ongoing gap between supply and high-end demand.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.