ARMENIA PINS HOPES ON TOURISM
Tamsin Carlisle

The National
ID=/20100422/BUSINESS/704229990/1005
April 22 2010
UAE

For Armenia, a South Caucasian republic only 19 years old, reminders
of its Soviet past are everywhere.

Street and shop signs are often in at least two languages – Armenian
and Russian. The Armenian national carrier, Armavia, features
Russian-language articles in its in-flight magazine and serves meals
worthy of the Russian airline Aeroflot in the bad old days.

In Yerevan’s Victory Park, set among the woods atop the capital’s
highest hill, Soviet tanks, missiles and a MiG fighter, all of Second
World War vintage, adorn the prominent war memorial.

Then there are hotels that show their Soviet hinterland heritage.

At the Ani Plaza Hotel in central Yerevan, standard rooms are furnished
economically with a single bed and walls painted plain white. The
headboard and other furniture are made of particle board.

Most of the worn pink carpets sport cigarette burns. The air
conditioning whirs loudly but fails to deliver cool air, or any
detectable air flow at all.

The staff, however, who are all Armenian, are unfailingly cheerful,
wireless internet is free, and the complimentary breakfast is far
superior to the fare aboard Armavia.

This is the unlikely country, less than half the size of the emirate of
Abu Dhabi, that is hoping tourism will help it recover from a 14.4 per
cent drop in GDP last year and to emerge from international obscurity.

"Our investigations show tourism is about 6 per cent of GDP. Our
target is 12 to 13 per cent by 2030," says Ara Bedrosyan, the minister
of tourism.

That is a fairly long time frame, but Mr Bedrosyan believes the
country has its work cut out to meet the target.

"To create new demand, we have to improve our standards," he says.

Even so, tourism was the only sector of Armenia’s economy that improved
last year. While slumping almost everywhere else in the world, the
business grew by 3 per cent in Armenia.

The 575,000 people who visited the country last year stayed on average
for nearly a week.

Since 2000, the number of visitors per year has increased more than
twelvefold from just 45,000. The number of hotels has risen to 16
from three, and includes a luxury property run by the Marriott Group,
occupying a building at least as imposing as the one housing the
ministry of foreign affairs and located across the capital’s central
square from that building.

The country now has an international airport receiving direct
flights from 13 countries including the UAE. In the 1990s, the only
international flights serving Yerevan were the once per week Aeroflot
flights from Moscow.

Armenia has plenty of attractions: a pleasant climate with distinct
seasons; mountains for hiking and skiing; an ancient culture,
lovingly preserved; a cuisine rich in locally raised meats and local
cheeses and sausages, as well as a rich variety of locally grown
fruits and vegetables; a culturally defining Christian tradition
dating from the early fourth century; a historic location on the
ancient Silk Road trade route; and a vibrant arts scene featuring
contemporary painting, sculpture, music, drama and literature, as
well as traditional offerings.

Prices are moderate compared with those in most other countries in
the region.

Mr Bedrosyan notes with satisfaction that most tourists visiting
Armenia are "financially secure" and inject an average of $1,000
(Dh3,670) per person per stay into the local economy, not including
air fare. Last year, that amounted to a total of $575 million spent
in the country by tourists.

To attract more visitors, Armenia has embarked on a number of
initiatives. These include an international television advertising
campaign as well as local initiatives such as dropping the fee for
a visitor’s visa from $50-$60 to $7-$8.

The private sector is co-operating. The country’s two mobile phone
companies hand out complimentary SIM cards and starter pre-paid credit
to foreign visitors landing at Yerevan’s airport.

Several potential tourist markets have room for development. Among
them are winter tourism, for which Armenia is developing ski resorts,
and health tourism based on the country’s natural hot springs. A Swiss
company is developing health spas in the country, Mr Bedrosyan says.

Perhaps Armenia’s biggest tourism opportunity lies in the recent
European and North American craze for all things pertaining to the
Silk Road.

"We are promoting the Silk Road idea. There’s lots of international
interest in experiencing this historic route," says Mr Bedrosyan.

His top priority, however, remains infrastructure investment: "We
understand we have to improve our infrastructure and invest in human
resources. When we’re ready, we’ll go to the international market
and create new demand."