Armenia: Armenia Tourism Profile

Armenian destinations in persistent request by tourists

In 2012, both price and volume increase in inbound tourism in Armenia strengthened due to increasing popularity amongst tourists from EU member and Middle Eastern nations, inclunding from Russia. Even stronger increase was prevented by volatile economic situations in bordering Iran and Turkey that caused the number of Iranian and Turkish tourists to decrease.

Armenia hosts additional holidaymakers and business tourists

The number of trips made by international and domestic business tourists and inbound holidaymakers grew rapidly in 2012 compared to the decline in those made by domestic leisure tourists paying regular visits to their friends and relatives in Armenia. The trend will be consolidated due to arrivals from EU member and other Schengen area nations who will not need visas to enter Armenia, starting from 2013.
Hotel industry prepares for a construction boom

In 2012, the decline in domestic leisure tourism and the decreased number of tourists from neighbouring nations resulted in weakening request for travel accommodation in Armenia. Despite this, heavy investment is planned in the hotels industry to meet high anticipated request for hotel accommodation by both inbound and domestic holidaymakers and business tourists.

Transportation costs to reach Armenia remain high

Although the majority of tourists travel to and from Armenia by air, prices of air tickets remain high due to exclusive rights given to national air carriers by the country’s government. Travel by land is expected to improve significantly as the construction of the north-south road was launched in 2012, aimed at connecting Armenia’s southern border with Iran to its northern border with Georgia.

Adventure tourism gains popularity

In line with the majority popular travel and tourism to historical, cultural, religious and natural sights, adventure tours have been gaining popularity with inbound tourists, particularly since the National Geographic Traveller magazine named Armenia as one of the world’s three leading nations for adventure tourism. In addition to climbing, Armenia attracts inbound tourists through its hiking, trekking, skiing, mountain biking and cycling opportunities widely available across the country.

Armenia enjoys an increase in arrivals

Increase of arrivals strengthened in 2010 as Armenia continued to be an attractive place to visit for the Armenian diaspora (Armenians living outside their country) and other visitors which enjoy the country’s historical and cultural attractions. Russians, followed by Georgians, continued to account for the bulk of visitors, although neighbouring inbound markets such as Iran and Turkey saw increasing numbers holidaying in Armenia.

Departing Armenians as well up

At the same time, Armenians continued to enjoy leaving Armenia for their holidays rather than staying at home. Departures from Armenia increased at a similar rate to arrivals. Armenians enjoy visiting family and friends who live in neighbouring nations and are as well attracted by holidays in the Black Sea area or Turkey during the summer.

Historical sites remain a strong draw

The continued attraction of historical sites and a country steeped in tradition, culture and religious and archaeological artefacts make Armenia a large attraction for a lot of tourists. The Armenian government and travel organisations have actively worked to promote these by rebuilding sites and improving tourist attractions through better signage and preservation. The majority popular attractions include Mount Ararat and aged buildings such as monasteries.

Regional areas given a boost

Although Yerevan remains the major area for tourists to visit and plan day tours from, a lot of of Armenia’s regions are being promoted as places for tourists to venture further afield. In particular, the spa and health resort of Jermuk, which is home to thermal springs, was rebuilt following the collapse of the Soviet Union. This region in the south of Vayots Dzor, and Syuniq, inclunding the Lori and Tavush regions in the extreme north of the country, are growing tourism locations.

Continued infrastructure development needed to grow tourism

The government remains committed to continuing to develop over the long term infrastructure projects that will aid tourism increase in Armenia. Both private and government investment in maintaining historical tourist attractions and development in hotels, businesses and transportation remain on the schedule to bring Armenia up to world standards in terms of service and facilities. These are areas that continue to be lacking at the moment but are likely to improve over the estimate period.

The World Discovers Armenia

Low-Spending Visits to Friends and Family Remain Dominant

Although cultural tourism is growing in importance for Armenia, the primary motivation driving travel to Armenia remains overseas-Armenians (known as the Armenian Diaspora) visiting their families in their mother country. Mostly from Russia and Georgia, these travellers remain with their families and, despite their numerical bulk, contribute little to the price of Armenian tourism. Armenian pride and family connections cross the globe, however, and a growing number of Armenian Diaspora based in wealthy Western nations do remain in hotels and contribute to the travel and tourism industry.

Protectionism Inflates Price of Air Fares

Armenia is becoming additional accessible to tourists, with a growing number of airlines introducing routes to the country. This change, however, is taking place slowly because of the protectionist attitude of the Armenian Government in relation to the national airline Armavia, which has led to reduced competition on a lot of significant routes. With lessened competition come inflated prices, a fact which reduces the price competitiveness of Armenia as a tourist destination, particularly compared to other nations in the region.

Low Internet Penetration Discourages Online Bookings

Whilst a fast growing economy has helped Armenia enter the 21st century, there is, at least area in which it continues to lag: internet penetration. It has the lowest household internet connectivity in the region, fitting for a country known for its medieval culture. This, however, makes it difficult to book travel to Armenia, leading to travel agents being required for most transactions.

Service Quality Needs Work

The increasing importance of Armenia as a travel destination has not led to an equal development in services. Next a long period of isolation and being visited, mostly, by overseas Armenians, the country has not developed the necessary infrastructure to meet a next influx of tourists. Even the road infrastructure is poor, while its hospitality service is not to international standards. Improving conditions to a level to which tourists are accustomed is the biggest challenge facing Armenia throughout the estimate period.