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Tourism In NKR Has Prospects

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  • Tourism In NKR Has Prospects

    TOURISM IN NKR HAS PROSPECTS
    Naira Hayrumyan

    KarabakhOpen
    30-11-2007 18:00:15

    Interview of Karabakh-Open.com with the director of Tourism Development
    Agency Sergey Shahverdyan

    Mr. Shahverdyan, we have learned that the Tourism Development Agency is
    likely to hold a conference of tourism specialists of NKR which will
    sum up the tourist season in 2007 and discuss the ways of developing
    tourism in NKR. Recently the NKR prime minister has said the government
    did not have a distinct policy on tourism. There were also opinions
    that income from tourism is insignificant in the state budget and
    the GDP. What is you evaluation of the potential of this sphere?

    In 2006 exports totaled 3 million dollars (Armenia excluding). At the
    same time, the export of services (tourism) brought 1 million 250
    thousand dollars to the country. In the same year, the government
    spent about one million drams, and the Tourism Development Agency
    spent about 5 million drams on efforts for development of tourism. The
    money spent by the government on support and development of tourism
    totaled less than 0.5 percent of the money invested in the country's
    economy by tourists.

    In the meantime, the country continued to develop dynamically in 2007.

    Additional 130 hotel accommodations were set up. The hotels of
    Karabakh can accommodate 422 tourists at once, which is up by 20
    percent compared with 2006. The number of tourists to Karabakh has
    grown by 10 percent compared with 2006.

    The dynamics of development of tourism in 2007 makes worry. For
    instance, in 2000-2004 the number of visitors grew by 30 percent
    annually, whereas since 2005 the rate of growth has gone down. In
    2007 the number of tourists went up by only 10 percent compared with
    the past year. The dropping rate of growth of the number of tourists
    is evidence to the need for pro-active efforts to attract tourists
    and create a favorable image for the country.

    One of the main factors for the development of tourism is hotels. What
    is the state of hotels in Karabakh?

    The hotels in the country are developing dynamically and meet
    the demands of tourism. As I already said, in 2007 about 130 new
    accommodations were set up, another 150 are expected in 2008. However,
    despite the growth of the number of tourists visiting NKR, the
    functioning of hotels is only 10 percent.

    The low load of tourist hotels makes owners of hotels raise the prices
    for services, which is one of the factors hampering the development of
    tourism in Karabakh. Besides, low profit does not enable improvement
    of service which is not good for the image of the country.

    If this tendency persists, hotel business which is now developing
    fast may become less attractive for investments. These tendencies
    are evidence that the government should make proactive efforts to
    develop tourism.

    Armenia and Karabakh are said to be "expensive" countries for
    tourists. Do you agree to this? What is the role of tourism in the
    economic development of the country?

    According to the USAID report, every tourist who visited Armenia and
    Karabakh in 2007 spent 100 dollars per day on accommodation, food,
    transport and other services, souvenirs, etc. During the travel season
    in 2007 not less than 1 million 375 thousand dollars was invested in
    the economy.

    Considering the multiplier effect, this 1 million 375 thousand means
    for the economy of Karabakh as much as 2 million dollars.

    Besides, tourism is a branch of economy which creates jobs without
    special investments. According to the World Tourism Organization,
    every 100 tourists visiting a country create at least one job.

    In your opinion, what are the main goals that the government should
    attain to develop tourism?

    Much has been done toward this over the past few years. Legislation
    has been created, government policies on tourism are worked out. The
    government has declared tourism as one of the priorities of the
    country's development.

    In this context, the primary goal of the government is to set the
    country to be able to receive guests. This is a multilayer process
    which takes immense efforts and coordinated action on behalf of
    the government, local government, communities and people working in
    tourism. It is necessary to take into account the interests of tourism
    in decision making. It is necessary to set up a government agency,
    as foreseen by the law, which will have a broad range of powers. If
    we solve this problem effectively, soon tourism may become the main
    source of income for the country and its citizens.
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