Tourism Development in Armenia

Interview with Mekhak Apresyan, Head of Department of Tourism and Territorial Economic Development, RA Ministry of Economy

Photos by Hraur Hawk

As we know, in 2008 the RA government adopted a tourism development strategy. Could you please present the main components of the strategy?

 

The tourism development concept paper was approved by the RA government on February 13, 2008. It was developed through the mutual efforts of the RA Ministry of Economy and the “Competitive Armenian Private Sector” project funded by USAID. Before submitting it for the approval of the RA government, the strategy was discussed by the interested parties within public and private sectors.

 

According to the strategy, which is actually a joint vision of interested parties within the sector, before 2030 the main goal of the state policy is to increase the investment in tourism in such issues as raising national income, ensuring proportionate territorial development, raising living standards and reducing poverty. This will be done by increasing the number of tourist visits and tourism-related income, as well as creating of jobs.

 

The main objectives of the state policy aimed at achieving this goal are to:

 

•  formulate new, competitive tourism directions, define Armenia’s priority tourism directions and tourist sites,
•  provide for quality surveys, decide on the priority target markets for the Armenian tourism product,
•  develop a description of Armenia as a tourism destination along with descriptions of separate tourist sites within the country and ensure their appropriate presentation and promotion in the international (target) market,
•  provide accessibility,
•  improve and develop infrastructures,
•  raise the quality of services,
•  develop human resources,
•  provide for security and public health,
•  improve business and investment environments, as well as management of tourism sites.

 

Can you state the volume of investments and the RA government programs implemented in tourism during the past 5 years?

Starting from 2005 the RA state budget allocations directed to tourism development increased dramatically. While in 2005 the amount for tourism development in Armenia allocated from the state budget constituted 20 million drams, in 2006 it grew to 35 million, in 2007 up to 70 million and in the years of 2008-2009 up to 80 million drams. In 2010 the amount allocated from the state budget for the same program is AMD 50 million, which is mainly directed to promoting and presenting the Armenian tourism product in international market. The additional funds from the state budget aimed at developing new tourism products were provided to the Armenian National Competitiveness Foundation, which also has funds invested by the representatives of the private sector based on the principle of public-private partnership.

 

Besides, from 2006-2008 Armenia was presented on the reputable TV channels CNN and Euronews, which became possible by allocating an average annual amount equal to USD 500 000 from the state budget.

 

In 2008, in cooperation with the reputable Spanish professional organizations Buzz Business and Transglobe, the shooting of the 52-minute documentary “Armenia-Noah’s Land” commenced, presenting Armenia and Nagorno Karabakh. In order to implement this project, amounts equal to EUR 225 000 and AMD 11 million were made available from the state budget. In 2009 the film shooting was completed and it was put on the air. The broadcasting rights were obtained by a number of well-known international TV companies.

 

Taking into account the underdeveloped state of tourism infrastructures in Armenia (hotels, roads, poor garbage removal , absence of road toilets, etc) what steps is the RA government taking to increase Armenia’s competitiveness and attractiveness?

 

As I have already mentioned, the improvement and development of infrastructures is one of the main objectives of the state policy. Nevertheless, when giving evaluations of the current situation, one needs to compare it with what we used to have. Only in this case will the evaluations be realistic and effective. For example, while in the year 2000 there were only 3-4 hotels available for tourists, which were mainly located in Yerevan, the number of accommodation establishments now exceeds 170. Out of this number, we have more than 70 hotels, around 50% of which are spread all over the Armenian marzes.

 

The bed and breakfast (B&B) system has also experienced dynamic growth. Currently around 50 B&Bs which can host international tourists operate in different marzes of Armenia. Four of them have already been ranked, with many others being interested in it and taking appropriate steps in this direction.

 

The automobile roads have also encountered progress within this period. Besides, we now have an airport which complies with international standards.

 

In order to resolve the issue of public toilets in Armenia and based on the initiative of the RA Ministry of Economy, the mandatory requirement to provide for paid or unpaid public toilets in the country’s gas stations was defined by the RA law “On Trade and Services.” The Ministry of Economy developed a draft concept paper including a business model for the operation of toilets with the purpose of supporting the private sector in implementing the requirements of the law, as well as ensuring the installation of toilets in the tourism sites and other necessary places.