SHERIDAN, WYOMING – October 7, 2024 – The World Tourism Organization (UNWTO) has unveiled a new edition of its "Tourism Doing Business" investment guidelines, focusing on the tourism potential of Armenia. This publication serves as a guide for investors and tourism professionals seeking in-depth knowledge about Armenia's tourism sector, enabling them to make informed decisions.
"Tourism Doing Business - Investing in Armenia" highlights Armenia's unique cultural heritage, robust economic growth, and supportive business environment. It aims to attract international investment and showcase the opportunities available in the country's tourism sector.
Armenia: A Rising Tourism Destination
Armenia has experienced significant growth as a tourist destination in recent years. International tourist arrivals reached 2.3 million in 2023, a 22.3% increase from 2019, surpassing the regional average in Central and Eastern Europe. Additionally, international tourism receipts in Armenia reached USD 3 billion in 2023, a 97% increase on 2019.
The guidelines highlight several factors that make Armenia an attractive destination for both tourists and investors:
- Location: Armenia's strategic location at the crossroads of Europe, Asia, and the Middle East makes it a gateway between these regions.
- Accessibility: The country offers visa-free entry for citizens of approximately 70 countries.
- Connectivity: Armenia provides direct flights from over 50 cities across Europe, the Middle East, and Asia. Its principal airports handle over 4 million passengers annually.
Opportunities for Investors
Armenia has also seen a surge in foreign direct investment (FDI), reaching close to USD 1 billion in 2022, the highest on record. This trend continued in 2023, with FDI totaling approximately USD 580 million, reflecting growing international confidence in Armenia's market.
The guidelines emphasize the following factors that make Armenia an attractive proposition for foreign investors:
- Economic Growth and Stability: Armenia's GDP grew by 8.7% in 2023, the fastest in Europe, with an expected growth of 6.0% in 2024. The economy has experienced steady expansion driven by sectors like tourism, IT, and agriculture.
- Favorable Climate: The Foreign Investments Law allows unrestricted foreign capital participation, ensuring equal treatment for foreign and domestic investors. The government offers tax incentives, including VAT exemptions for tourism services and tax breaks for tourist accommodation operators.
- Strategic Partnerships: Membership in the Eurasian Economic Union (EAEU) provides access to a single market of approximately 185 million consumers. The EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) strengthens ties with the European Union.
These factors, combined with Armenia's rich cultural heritage and natural beauty, make it a promising destination for tourism investment and development.