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Armenia Looks To Tourism As Way Forward

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  • Armenia Looks To Tourism As Way Forward

    ARMENIA LOOKS TO TOURISM AS WAY FORWARD

    Gulf News
    http://gulfnews.com/business/tourism/armenia- 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.
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