Tourism Investment Opportunities
Based on the tourism attractions and resources available, current level and
trends of tourism development, and the policy of the Government towards tourism
development, a number of distinct areas can be suggested for tourism investment.
Public Transportation – With the establishment of new terminal buildings at
Zvartnots (Yerevan) Airport and the significant growth rates in international arrival
numbers (as well as Armenian outbound travel fuelled by higher incomes),
opportunities exist for investors to increase air transport routes and frequencies
through chartered and scheduled services. Recent years have seen the establishment
of routes served by Air Arabia and Air Baltic, although frequencies to
the Middle East and Western Europe continue to be relatively low. Additionally,
the government plans to improve the domestic road network throughout the
country; cleaner buses, expanded routes, frequent departures, etc – in line with
expected improvements to the rail network brought about through foreign investment.
Accommodation – Yerevan hosts three international hotel chains (Marriott,
Golden Tulip & Best Western) and several independent hotels. Throughout the
tourism season, occupancy rates at these three chain hotels and the quality
independent hotels are high. Outside of the capital, there are few high quality
boutique hotels (mainly those developed by Tufenkian Hospitality in Lori Marz
and Gegharkunik Marz and a small number of hotels in Tsaghadzor and Jermuk).
Although the reported annual occupancy rates are relatively low, due in
part to seasonality of the tourism industry and the lack of online booking facilities,
the rack rates of Yerevan and higher standard rural hotels indicate that
there is plenty of room for further competition.
Food & Beverage Establishments – Yerevan has a very wide range of indoor
and summer outdoor restaurants and cafes offering a wide variety of international
cuisines. However, the situation in the smaller towns and rural areas indicates
that there is distinct lack of food and beverage establishments providing
high standards and a range of international options.
Winter Tourism – Still a relatively immature tourism product, the main markets
for skiing are currently Russia and the domestic market. However, with snowfall
fairly reliable between November and March, the new investments in ski-lifts in
Tsaghkadzor and Jermuk, the length and quality of the runs, and the current
under-utilization of the lifts, there are obvious opportunities for investors in providing
accommodation. Needs also include après ski facilities and services, ski,
ski boot and snowboard hire, and the establishment of ski and snowboard
schools. Although research has not been undertaken, opportunities may well
exist for other winter sports, such as tobogganing, cross-country skiing and
snow-shoeing.
Health & Wellness Tourism – With its numerous spas, most notably Jermuk,
Armenia has a long history of utilizing its mineral water resources for the treat-
ment of diseases and illnesses. Balneology was and still remains popular particularly
amongst tourists from the CIS and domestically. However, many of the
destination spas, despite some renovation, still focus on providing sanatoriumstyle
facilities and services, much as they did during the Soviet period. The
concept of wellness tourism is not well developed in Armenia, although given
the recreation potential in and around Jermuk (and possibly other spa locations),
the climate and the availability of mineral water with reputed healing
properties, investment opportunities exist for developing high-quality resort facilities
and services utilizing more up-to-date spa treatments and experiences.
Armenia may also hold potential for specific medical treatments or surgery in
the areas of dentistry, oncology, cardiology and others.
Events & Festivals – With Armenia’s unique culture and history, dramatic
landscapes, prominent monuments and remarkable traditions, there are many
opportunities to attract international and domestic tourists to events and festivals.
Armenia already plays host to the annual Kenats festival, Golden Apricot
Film Festival, and a number of sporting events. However, the country is not yet
experienced in designing, managing, implementing or promoting major events
of international significance.