THE WORLD FINANCIAL CRISIS WILL AFFECT INTERNAL TOURISM DEVELOPMENT IN ARMENIA

PanArmenian
April 16 2009
Armenia

Financial crisis consequences will have a negative effect on internal
tourism development in Armenia, Armenian Hotel Association Chairman
Hakob Hakobyan told a news conference on Thursday. "Financial crisis
and dram devaluation in Armenia ensued in income reduction and
unemployment increase," he said.Reduced income in Armenian families
will eventually impair internal tourism development, as many families
will no longer be able to afford holidays in RA or NKR touristic
regions. " It’s hard to make forecasts, but hopefully the slump won’t
be a major one, around 5%-7%," Hakobyan noted.

No touristic service tariff reductions will be implemented in
near future. According to Hotel Association Chairman 80% of hotel
expenditures include staff salaries, taxes and utility services. "Tax
legislation toughening, utility services tariffs increase do not
allow of hotel tariffs reduction. Tourstic service is one of the rare
unmonopolised services where hotel owners establish their own tariffs,"
Armenian Hotel Association Chairman noted.According to Hakob Hakobyan,
currently many hotel construction projects are being frozen and no
investments in hotel service development are expected in 2009.