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Monopoly And Shadow Business Hinder Development Of Tourism In Armeni

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  • Monopoly And Shadow Business Hinder Development Of Tourism In Armeni

    MONOPOLY AND SHADOW BUSINESS HINDER DEVELOPMENT OF TOURISM IN ARMENIA

    arminfo
    Tuesday, July 24, 12:56

    Armavia Company's monopoly in the market hinders development of
    incoming tourism in Armenia, TATEV-T.T.T. Director Arlen Davudyan
    told media, Wednesday. He said that his company is organizing tours
    from Iran and can use only bus transportation services of Vaspurakan
    Company. That company always wins state contests for Meghri-Yerevan
    transportation services as special conditions are created for that.

    Similar situation is observed also in other tourist routes. Davudyan
    believes that contests conditions must be changed in order 2-3
    companies could win. This would reduce tariffs and increase quality
    of transportation services.

    He said that there is a wide network of taxi drivers who make tours of
    the country without providing any information on the sights. They act
    through mediators who organize rent of apartments and illegally keep
    passports of tourists. "There is no control in the given sphere. This
    is a shadow business that seriously hinders activity of the legal
    companies, reduces their incomes and possibilities of advertising the
    Armenian tourism product and tours of the country," Davudyan said. He
    believes that the government must liquidate the transport monopolies,
    properly introduce Armenia as a country of tourism and assist travel
    operators in participation in international exhibitions, which require
    much funds. Among positive changes, Davudyan outlined improvement of
    online reservation of air tickets and hotel rooms, though the prices
    are still unreasonably high.

    For her part, Melita Hakobyan, Head of the National Association of
    Consumers, explained that only 15%- 20% of the population can afford
    rest in abroad, another 2%-5% of the population rest inside Armenia
    but prefer rented houses or stay at relatives to expensive hotels.

    Davudyan said, in turn, that the country lacks mid-class hotels. For
    instance a week rest at a good hotel on the Lake Sevan will cost $400
    while at the best hotels in Batumi (Georgia) on the Black Sea shore
    a one- place room will cost $60-$65 a day. A five-day rest in Antalia
    (Turkey) will cost $250 in average. As a result, Armenia is becoming
    a transit country for the Iranian tourists who prefer having a rest
    on the Black Sea shore in Georgia.

    Melita Hakobyan recalled that hotel services are very expensive and
    incomparable with the population incomes. As a result, chronic fatigue
    syndrome of the population is observed in the country.

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