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Jermuk Resort Town Development Programs Require Serious Involvement

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  • Jermuk Resort Town Development Programs Require Serious Involvement

    JERMUK RESORT TOWN DEVELOPMENT PROGRAMS REQUIRE SERIOUS INVOLVEMENT OF PRIVATE SECTOR

    ArmInfo
    2009-08-03 12:31:00

    ArmInfo. Implementation of Jermuk resort town development programs
    requires serious involvement of the private sector, says Artak
    Ghazaryan, Deputy Director at USAID/CAPS. "Jermuk has potential
    for becoming a tourism center and medical resort of regional
    importance. However, successful implementation of the project requires
    serious attitude by the municipal agencies and the local private sector
    involved in the programs as well as the government," he said. Jermuk
    development program approved by the Government of Armenia in August
    2008 implies annual increase of the number of tourists to 100,000 by
    2012 instead of the present 5,000 (20,000 tourists in Soviet period
    of time). The annual income of the resort town from the tourist trips
    is to be increased to 100 million dollars till 2012, which implies
    opening of 4,000 new jobs.

    The program was elaborated with the support of the USAID/CAPS. "I do
    not think that it is possible to ensure such high level of income
    within the coming three years, but in the long-term outlook it is
    quite possible," A. Ghazaryan said. Nevertheless, he does not think
    that the idea of building an airport in Jermuk may be interesting to
    the private sector since the project will be profitable only in case
    of large-scale tourism. "To attract tourists, it is better invest
    in tourist facilities, including service, hotels and leisure-time
    entertainment. Airport may become reality only subject to becoming
    a strategic goal of the government," he said.

    "There are many sights in Armenia that can be declared tourist
    zones. For instance in Vayots Dzor region where Jermuk is located as
    well as in Syunik and Lori regions. In addition, it is noteworthy
    that in the legislation of other states creation of tourist zones
    requires influence on certain sectors (agriculture etc.) that form
    mini-clusters of tourism industry. Both Vayots Dzor and Syunik have
    such potential. It is necessary just to involve the private sector
    in these programs also through providing them with certain tax and
    other privileges in tourist zones. In this case, local business will
    be ready to invest in these zones," A. Ghazaryan said. A relevant
    draft law on tourism has already been prepared with the support of
    European experts, he said.
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