“Tourism Doing Business – Investing in Armenia” serves as a comprehensive resource for investors and tourism professionals who seek a thorough understanding of Armenia’s tourism industry. It empowers them to make well-informed decisions by highlighting the nation’s distinctive cultural heritage, significant economic advancement, and favorable business climate.

According to UN Tourism Secretary-General Zurab Pololikashvili, “Armenia is emerging as a prominent tourism destination. Concurrently, its commitment to economic reforms, infrastructure enhancement, and the encouragement of foreign direct investment has established it as the fastest-growing economy in Europe. These new Guidelines emphasize Armenia’s dedication to creating a supportive environment for international investment and illustrate the potential that the country’s tourism sector presents to investors globally.”

In recent years, Armenia has experienced significant development as a tourist destination. The number of international visitors to the country reached 2.3 million in 2023, reflecting a 22.3% increase compared to 2019. This growth rate considerably exceeds the regional average in Central and Eastern Europe. Furthermore, international tourism revenues in Armenia amounted to USD 3 billion in 2023, marking a 97% rise since 2019.

The Guidelines examine the elements that contribute to Armenia’s appeal as a destination for both tourists and investors, including:

Location: Armenia is strategically positioned at the intersection of Europe, Asia, and the Middle East, functioning as a vital gateway among these regions.

Accessibility: The nation implements a visa-free entry policy for nationals from around 70 countries.

Connectivity: Armenia boasts direct flight services from more than 50 cities throughout Europe, the Middle East, and Asia. Its main airports collectively accommodate over 4 million passengers each year.

UN Tourism Executive Director Natalia Bayona stated: “In recent years, Armenia has demonstrated significant economic resilience and growth. The number of international tourist arrivals has increased by nearly 25% compared to pre-pandemic figures, while the influx of investments across various sectors further underscores the confidence in Armenia’s tourism potential. We take pride in collaborating with Armenia to promote it as an investment destination through these new Guidelines from UN Tourism.”

In 2022, Foreign Direct Investment (FDI) inflows reached nearly USD 1 billion, marking the highest level recorded to date. This positive trend persisted into 2023, with FDI amounting to USD 443 million as reported by UNCTAD. Additionally, recent information from Armenian officials indicates that the 2023 figure may be approximately USD 580 million, highlighting an increase in international confidence in Armenia’s market.

The newly established Guidelines examine the elements that render Armenia, particularly its tourism sector, an appealing opportunity for foreign investors, most notably:

Economic growth and stability: In 2023, Armenia recorded a remarkable GDP growth rate of 8.7%, the highest in Europe, with projections indicating a growth of 6.0% for 2024. The economy has shown consistent expansion, primarily fueled by key sectors such as tourism, information technology, and agriculture. The Central Bank of Armenia has effectively maintained low and stable inflation rates, and the nation is characterized by a highly educated workforce, boasting a literacy rate that exceeds 99%.

Favorable climate: The Foreign Investments Law facilitates unrestricted participation of foreign capital, ensuring that foreign and domestic investors are treated equally. The government provides appealing tax incentives, including VAT exemptions for tourism-related services and substantial tax reductions for operators of tourist accommodations.

Strategic partnerships: Armenia’s membership in the Eurasian Economic Union (EAEU) grants access to a unified market comprising approximately 185 million consumers. Additionally, the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) further solidifies the country’s relationship with the European Union.