UN Tourism has added to its growing portfolio of investment guidelines with a new edition focused on the potential of Armenia.
“Tourism Doing Business – Investing in Armenia” guides investors and tourism professionals seeking in-depth knowledge about Armenia’s tourism sector. It allows them to make informed decisions by showcasing Armenia’s unique cultural heritage, robust economic growth, and supportive business environment.
UN Tourism Secretary-General Zurab Pololikashvili says: “Armenia is a rising tourism destination. At the same time, its dedication to economic reforms, infrastructure development, and the promotion of foreign direct investment has positioned it as the fastest-growing economy in Europe. These new Guidelines underscore Armenia’s commitment to fostering a conducive environment for international capital and showcase the opportunities the country’s tourism sector offers to investors everywhere.”
Armenia: An Attractive Destination
Over recent years, Armenia has enjoyed notable growth as a tourist destination. International tourist to the country reached 2.3 million in 2023, a 22.3% increase from 2019. This growth significantly outpaces 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 explore the factors that help make Armenia such an attractive destination for both tourists and investors, including:
Location: Armenia is strategically located at the crossroads of Europe, Asia, and the Middle East, serving as a gateway between these regions.
Accessibility: The country offers a visa-free entry policy 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 collectively handle over 4 million passengers annually.
UN Tourism Executive Director Natalia Bayona says: “Recent years have seen Armenia exhibit remarkable economic resilience and growth. International tourist arrivals are up almost 25% on pre-pandemic levels, while the arrival of investments across all sectors further illustrates the confidence in Armenia’s tourism potential. We are proud to be working with Armenia to showcase it as an investment destination through these latest Guidelines from UN Tourism.”
Opportunities for Investors
Foreign Direct Investment (FDI) inflows totalled close to USD 1 billion in 2022, the highest on record. This trend continued into 2023, with FDI totaling USD 443 million according to UNCTAD. Furthermore, recent updates from Armenian authorities suggest that the figure for 2023 is around USD 580 million, reflecting growing international confidence in Armenia’s market.
The new Guidelines analyse the factors contributing to make Armenia, and its tourism sector, an attractive proposition for foreign investors, most notably:
Economic growth and stability: Armenia enjoyed GDP growth of 8.7% in 2023, the fastest in Europe, with expectation growth of 6.0% in 2024. The economy has also experienced steady expansion driven by strategic sectors such as tourism, IT, and agriculture. The Central Bank of Armenia has successfully maintained low and stable inflation rates, while the country also boasts a highly educated workforce with a literacy rate exceeding 99%.
Favorable climate: The Foreign Investments Law allows unrestricted foreign capital participation, ensuring equal treatment for foreign and domestic investors. The government offers attractive tax incentives, such as VAT exemptions for tourism services and significant tax breaks for operators of tourist accommodations.
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) also strengthens ties with the European Union.
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