ARMENIA LOOKS TO TOURISM AS WAY FORWARD
Gulf News
looks-to-tourism-as-way-forward-1.627717
May 17 2010
UAE
Former soviet republic is focusing on upgrading infrastructure and
marketing itself internationally
By Jumana Al Tamimi, Associate Editor Published: 00:00 May 17, 2010
Yerevan: It has it all. Yet, much needs to be done.
Spectacular green landscapes and mountains covered by tall trees
outside the city stretch as far as the horizon, while the decades-old
Soviet-style utilitarian public buildings are among the main landmarks
inside the Armenian capital.
The main streets named after prominent figures in the nearly
2,600-year-old city are now embracing new shops selling international
brands. A few metres away, in the "old streets", there are shops
selling local products and handicrafts.
Armenia, which got its independence only 19 years ago, is a promising
tourist destination. It is also emerging as a place with great
potential for tourism-related investment.
Nearly 575,000 tourists visited Armenia in 2009 compared to 45,000
in 2000.
Half of the steadily increasing number of tourists arriving in
the former Soviet Union republic are Armenians living abroad. A
considerable part of the remainder includes mainly those who have a
"hunger for culture".
However, in order to attract more and more different types of tourists,
including families and students, Armenian authorities are focusing
on upgrading the infrastructure in the country — still influenced
by the former Soviet era. For example, signs and names of different
places are written in Russian, next to Armenian.
The young country also needs to market itself as a tourist destination
internationally.
"What we are doing now is our homework to increase our standards,"
Armenian Deputy Minister of Economy and Minister of Tourism, Ara
Bedrosyan, said.
"We understand that we still have to invest in infrastructure and in
human resources because they both raise the tourism levels and create
more demand on Armenia in the international markets," he told a group
of visiting journalists from the UAE.
‘Huge achievements’
While the current tourism levels match "Armenia’s capabilities",
Bedrosyan explained, the country has had "huge achievements" between
the early nineties and today.
In 1990, there were only three hotels involved in international
tourism. Today, the number has jumped to 60.
While the airport was receiving mainly domestic flights, now up to
13 international airlines land at the newly-built port. (Construction
has not yet been completed at Yerevan Airport.)
Officials added that there is a need, as well, to improve the
road infrastructure in the country and raise them to international
standards.
More investment to further upgrade restaurants and hotels are also
needed, officials noted.
At present, tourism constitutes six per cent of the Gross Domestic
Product (GDP). But the target is to increase it to 13 per cent by 2030.
The plan of action is a series of steps at different levels.
Some steps have already been implemented.
Commodities and accommodation prices were reduced as part of a general
trend to lower costs. The cost of the entry visa was reduced from
nearly $60 (Dh220) to $8.
Measures, furthermore, were introduced to ease the entry of people
through the airport, the northern and southern borders — both
eastern and western boundaries are closed due to border disputes with
Azerbaijan and Turkey.
Negative impact
"Both the government and the private sector worked together on better
marketing [of] the country as a tourist destination, and overcome
the negative impact of the international financial crisis," added
the minister, who was speaking through an interpreter.
Therefore, media, considered by Armenian officials as among the most
important means of overcoming the impact of the international crisis
which led to a decrease in tourism worldwide, was also utilised.
A 52-minute film on Armenia and its attractions was produced to high
professional standards. Part of it was aired on international media.
Currently, many tourists travelling to Armenia include Iranians
and Westerners. However, nearly "50 per cent of arriving tourists
are Armenians living abroad, and they are coming to their country",
Bedrosyan said.
This category of tourists, "usually bring their families with them
in order to show them their original county and explain to them about
their culture".
The other part of arriving tourists comprises "the type that is not
coming to sit on the beaches. They arrive for cultural reasons",
Bedrosyan said.
"They visit Armenia to satisfy their intellectual demands. They are
categorised under historical and intellectual tourism."
Many of these tourists are "between 50 and 60 years old and they
are doing well financially", the official said. Already there are
churches listed under the World Heritage list: The cathedral and
Churches of Echmiatsin and the archaeological site of Zvartnots,
monasteries at Haghpat, Sanahin and Geghard and the Upper Azat Valley.
Yerevan also boasts opera houses and theatres.
The city prides itself on several streets named after prominent people
past and present — Armenian artists, painters, musicians and writers.
The national library in Armenia, established some 60 years ago,
has more than 17,000 manuscripts and 2,230 books in many languages,
primarily Armenian.
Mount Ararat, traditionally thought to be the landing place of Noah’s
Ark, is located along the border with Turkey, and can be seen from
almost anywhere in the country of nearly 3 million people.
Tourists have different options, such as skiing in winter and hiking
and picnicking at other times of the year. There are also attempts
to promote and invest in the hot water spas in the country.
For instance, a Swiss company has shown interest in investing in
Jermuk, an area famous for its nearly 500 hot springs, officials
pointed out. The area, which is 175km from Yerevan, is surrounded
by mountains and was famous during the Soviet era among thousands of
tourists seeking cures for certain illnesses.
In order to encourage winter skiing, a new 200-room hotel was built
in Kegharkunik, a northern governorate. Furnished hotel apartments
are also in the area.
Kegharkunik, north of Yerevan, is located near Lake Sevan, the world’s
largest mountain lake.
Developing infrastructure
Several projects between Armenia and Western countries, including
Germany, France, Australia, Canada and the US are under way to develop
the infrastructure in the area, including building a teleferic (cable
car) and hotels in the very cold area.
Other countries have shown interest in investing in mining gold ore
in the region, as well as basalt stones famous in the area.
"There are huge amounts of basalt stones, but there are no buyers,"
Never Boghosian, Kegharkunik’s mayor said.
"Even if we want to export, transportation will be a problem," he
added, referring to the closed eastern and western borders.
Since air and land freight could be costly and unprofitable, shipping
by train seems to be the only available means.
The governorate, which is 2,000 metres above sea level and has a
population of nearly a quarter of a million, is also known for its
honey, dairy products, cherries and apricots.
"Also, every year we have a problem with our production of potatoes,"
Boghosian said.
The production far exceeds domestic need. As a result, the extra
produce is sold at cost price in view of the difficulties in exporting
due to closed borders with both Turkey and Azerbaijan.
"In order to establish a potato chips factory, we need investment,"
Boghosian said.
Nearly half of Armenia’s potato supply comes from Kegharkunik, which
produces nearly 300,000 tonnes yearly, as well as nearly 110,000 to
115,000 tonnes of wheat a year.
"Armenia’s investment regulations are very flexible, and the taxes are
very appropriate" the mayor said, trying to encourage more investors
to go to the area.
In terms of tourism, many Armenians say that their country is not even
"fully discovered".
"The most important thing they can do here is picnicking in the
forest. There are also hot springs," said Armen Santrosyan, mayor
of Dilijan, a city in the heart of an awesome green area squeezed
between high mountains.
Most of the 17,000 population of the city work in tourism.
Cultural city
During the Soviet era, the city was of some importance, officials said,
That time, there were nearly five hotels run only by Moscow, and
"they would send anybody who needed recreation and treatment to one
of these hotels", Santrosyan recalled.
Today, there are nearly 20 hotels, resorts and furnished apartments
in Dilijan, known as the "cultural city" for the different schools
it has, including an international school for children, two music
schools and two sports centres.
Some of the places in the city, located about 90km northeast of Yerevan
and 50km west of Azerbaijan, give Armenian tourists from inside the
country or the diaspora, priority over non-Armenian tourists during
the extremely busy but pleasant summer months.
Many non-Armenian tourists come from European countries and the US,
and the peak is usually the period between May and October. In the
summer season, all the 1,300 beds available are fully occupied. In
late April, only up to 20 per cent occupancy is usually recorded.
"We understand that being a landlocked country and a small country, our
success comes from being part of a regional product," Bedrosyan said.
"What we are doing is very successful with Iran and neighbouring
Georgia within this project of the Great Silk Road, the caravan trade
routes that linked Eastern and Western civilisation in ancient and
middle ages."
Tourism along the route of the Great Silk Road, which was first
operated as a route between China and the capital of the Roman Empire
in the 2nd century BC, is gaining momentum with the attention of the
World Tourism Organisation (WTO)."
The WTO is implementing a long-term tourist project aimed at promoting
tourism in the region.