Development of the RA Vision | Strategy | Action plan 2017

State Committee for Tourism of the Ministry of Economic Development and Investment of Armenia AGENDA

• Statistics • State policy goals, objectives and obstacles • Action Plan 2017 • Gaps

2 STATISTICS

3 TOURISM AS ONE OF THE MAIN DRIVERS OF ECONOMY

World Average – 3.3% Source: World and Tourism Council Emerging Destinations – 4.4% DIVERSITY OF TOURISM

Source:Armenian International Visitor Survey

6 GROSS RECEIPTS

• Gross receipts from incoming tourism for 2015 is $950 million

• Gross receipts from domestic tourism for 2015 is $280 million

7 ACCOMODATIONS

(256) 60 % Number of accommodation In Regions establishments 440 (184)40 % in Yerevan

Number of rooms 28000

Number of beds 14000

8 INTERNATIONAL BRANDS IN ARMENIA

Currently in Armenia In Pipeline

2 In 2017

2 hotels In 2017

In 2018

In 2018

9 OUR TARGETS BY 2020

• 2,5 million incoming tourists annually, of which 1,2 million Diaspora Armenians’ visits • 1,5 million domestic tourism • $ 2,5 billion annual receipts from incoming tourism • Increase average spending per visitor from $700 to $1000 • $450 million receipts from domestic tourism • 50 new hotels with 3,000 beds • 15,000 additional jobs

10 CHALLENGES

• Accessibility: direct air transportation with many of potential markets • Improving the service quality: Developing uniformly high quality visitor services throughout the country • Need to establish an NTO and a Bureau • Improving road access and infrastructure in some of the country’s most spectacular natural areas; • Improving the legal framework for tourism development • Improving statistics for strong strategic planning

11 OUR VISION

Through sustainable development of tourism contribute to: • Consistent and proportionate territorial economic development of Armenia; create economic opportunities for local communities • Growth of national income, improvement of living standards; • Preservation, development, proper presentation and promotion of historical and cultural heritage; • Preservation, rational consumption and development of natural resources, as well as solution of environmental issues; • Increasing awareness about Armenia and Armenian people; • Development of an image of Armenia as a top desirable tourist destination; • Strengthening and development of Armenia-Diaspora relations and preservation of national identity • Preservation, development and promotion of universal values, strengthening of international solidarity and peace as well as increasing the role of Armenia in these processes. 12 STRATEGIC OBJECTIVES

• Enhance the image of Armenia as a stable and safe country, with a favorable and attractive environment for entrepreneurship, investments and tourism;

• Expand and enhance data collection and analysis and market research

• Diversification of Armenian tourism product;

• Diversification of markets focusing on markets with accessibility, proximity and interest towards Armenian tourism offer

• Overcoming seasonality issues

• Accessibility of Armenia to world markets.

13 STRATEGIC OBJECTIVES

• Development of infrastructures

• Quality of service - Provide international standard services and amenities for visitors

• Building stronger public/private partnerships for tourism product development and investments

• Efficient Destination management

• Support the private sector

• Enhance International cooperation

14 PILLARS OF TOURISM POLICY

Institutional ▪ Stakeholder ▪ Marketing and Improvements coordination promotion

▪ Tourism offer ▪ International diversification cooperation Capacity building

Infrastructure development

15 INSTITUTIONAL IMPROVEMENTS

• Evaluate the impact of tourism growth through the collection and analysis of quantitative and qualitative data: • Visitor Surveys • Implement SECT System -Border electronic control information system • Satellite account • Improve the legislation regulating the tourism sector. • New Tourism Law - licensing and certification • DMO/Information Centers • Administrative Register • Revise taxation and customs policies, improve tax administration, create a mechanism of direct allotments for the development of tourism attractions from tourism generated incomes within the framework of RA legislation. • Continue easing accessibility to Armenia through visa requirements

16 STAKEHOLDER COORDINATION AND CONSOLIDATION

• Enhance the public and stakeholder awareness about the State Tourism policy, goals and actions through • Tourism Advisory Board • Donor Coordination Council • State Inter-agency Coordination Board • Community development and education for understanding the tourism benefits • Strengthen private sector through professional associations

17 MARKETING AND PROMOTION

• Develop an annual marketing strategy: define target markets, action plans and KPIs • Develop marketing and PR strategies for all stages of the tourist decision making • Raising awareness about Armenia through PR and marketing campaigns • Branding of the country as a destination, profiling individual tourist sites and their effective presentation and promotion in global (target) markets • Tourism Branding • Development of marketing collateral • Aggressive electronic marketing and promotion • Travel Expos • Road shows • FAM trips • Launch aggressive digital media campaign (website, social media) • Involve trade representatives, diplomatic representatives and the Diaspora in promoting Armenia • Undertake annual domestic tourism campaign. 8) Promote importance of tourism industry to Armenian public. 18 TOURISM OFFER DIVERSIFICATION

• Establishment of DMOs and Information Centers in the regions • Develop Site management plans for major tourism attractions • Promote PPP to attract investors • Design new, competitive destinations, prioritize tourism sites and attractions in Armenia • Design and develop new attractive, competitive (including unique) itineraries • Evaluate main tourism resources required for the development of tourism priority directions in Armenia • Ensure effective use and preservation of natural, cultural and historical resources, identification of new resources, their design and commercialization. • Revitalize national traditions and culture through events and festivals • Categorize High Involvement and Low Involvement tourism products and develop strategies to package and promote: • Develop winter and tourism investment packages • Develop spa and health tourism. • Develop include specially protected nature areas in the tourism product. • Adventure tourism • • • MICE Tourism • Ensure regional cooperation and create a regional tourism product. 19

INTERNATIONAL COOPERATION

• Active participation in UNWTO activities

• Active participation in Commonwealth of Independent States Tourism Council

• Active participation in other world tourism organizations

• Ensure private sector participation in Travel Trade associations

20 CAPACITY BUILDING

• Develop a quality standards/certification program for the tourism sector • Support the operations of the International Study Center for Guides • Ensuring participation of all stakeholders in the process of developing tourism guidelines and professional education programs • Establish sound qualification system for accommodation and food outlets, develop B&B network particularly in the Marzes • Ensure quality management (including control) through regulation and voluntary certification • Maintain and enhance tourist guide services through improvement of licensing system and continual training • Organization of seminars and trainings for communities in the region • Establish active and efficient cooperation among academia, employers and stakeholder state entities in the design and approval of educational programs to ensure their consistency with the current demand. • Support cooperation with international universities and organizations in accreditation of tourism courses • Develop cooperation among academia, employers, job agencies as well as training and retraining

centers. 21

INFRASTRUCTURE DEVELOPMENT

• Expand airline route network and frequency of flights to key markets. • Improve quality and maintenance of roads between tourism areas and to borders. • Design & implement strict planning controls in tourism areas • Devise and implement infrastructure development and investment plans for tourism areas in cooperation with the private sector. • Improve the signage, tourist services and facilities and information at key attractions and sites. • Improve and modernize communications infrastructure. • Encourage establishment and development of mid-market accommodations and food outlets. • Development of a unified system of tourism information centers in Yerevan and the regions

22 ACTION PLAN 2017 Accessibility Affordability Awareness

23 Target markets TARGET MARKETS* Proximity Low-investment Accessibility product packaging Interest

Potential target High Investment ❑ Internal market market product TO EXPLORE development development strategy strategy ❑ Iran ❑ China ❑ Western Europe* ❑ Japan ❑ GCC countries

❑ Russia

❑ Diaspora

*Also focuses on countries with direct flights to Armenia 24 GOALS OF THE SHORT TERM ACTION PLAN

Target markets Proximity Individual Match and Package Low- tourist investment products with Accessibility Group travelers target markets Interest Business travelers Raising awareness about Armenia

Strategy for Potential Strategy for High target market Investment product development development

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Target markets LOW INVESTMENT TOURISM PRODUCTS Proximity Low-investment Accessibility product packaging Interest

Potential target High Investment Packaging of low-investment products* market product development development strategy strategy • Adventure tourism • Religious Tourism • Cultural tourism ▪ Tourism asset database • MICE Tourism

* includes route development: , , biking, mountaineering, gastro, birdwatching

Target markets HIGH INVESTMENT PRODUCT DEVELOPMENT Proximity Low-investment Accessibility product packaging Interest

Potential target High Investment market product development development strategy strategy Strategy for Development of New Products

• Health tourism • - Homestays • Winter tourism

MARKETING AND PROMOTION – BY COUNTRY

• State support to organization of festivals in regions • State support to development of hiking trails Internal • Development of less known tourism destinations • Public relations and awareness campaigns

• Fostering relations between tourism industry businesses of Armenia and Iran • Developing of “Yerevan-Aras” itinerary, opening of an Armenian tourism office in Aras free economic zone Iran • FAM trips for travel journalists and industry professionals • Participation in travel expos in Iran • Road shows

• Promo events and presentations in at least 3 Diaspora Armenian communities in cooperation with the church, Armenian Embassies and local community organizations • Promotion articles in Diaspora magazines Diaspora • Dissemination of information about Armenia and Armenian tourism products through news channels of the Diaspora religious, cultural, Armenian studies’ centers and professional unions. • Negotiations with national TV channels for broadcasting programs about Armenia and Armenian tourism product

28 MARKETING AND PROMOTION – BY COUNTRY

• Participation in travel expos • Promoting Armenia through travel guides • Opening of an Armenian info office in Germany in cooperation with German “Kerkher” company • Further development, updating and promotion of https://www.erlebe- armenien.de/ German language website about Armenia Western Europe • Development of religious, cultural and eco tour packages in German language • Road shows in a number of Western European cities • FAM trips for travel journalists and industry professionals • Publishing of at least 5 articles about Armenia in popular Western European magazines

• Road shows GCC Countries • FAM trips for travel journalists and industry professionals • Participation in travel expos

29 MARKETING AND PROMOTION – BY COUNTRY

• Year of Armenia in Russia: organization of events and presentations engaging state and private sectors, presentation of the project “Russian trace” • Participation in large-scale B2B and B2C international travel expos, including “MITT’ 2017”, “Leisure” and other specialized tourism expos and conferences • Opening of representations in target cities • FAM trips for travel journalists, industry professionals and MICE tour operators Russia • Broadcasting of 4-7min films about Armenia as a touristic destination and the “Russian trace” in Armenia and 45 secs thematic promo ads on leading Russian TV channels • Articles about Armenia in popular Russian magazines • Publishing a guidebook on Armenia in “Orange guide” and “Polyglot” guide publishing series (8000 copies) • Promo materials and boards using the areas belonging to Armenian businessmen (supermarkets, pharmacies, hotel, etc.) • Other marketing collateral

30 GAPS

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GAPS

• Improvement of the tourism information and statistical system: • 2017 Survey • Border electronic control information system (SECT) • “Tourism Satellite Account” system • Policy papers (licensing of tour agencies, guides, hotels and ) – international expertise • The preparation of detailed Tourism Development Zone (TDZ) Plans • The preparation of building design and planning standards - The master plan should provide a vision for tourism development in Armenia and should enhance the competitiveness of Armenia as tourist destination; • The preparation of area management plans for sensitive sites • Establishment of NTO • Marketing and promotion actions/events in target markets • Tourism info centers in Yerevan and the regions • Administrative register • Tourism asset database • Festivals • Participation in travel expos (major and specialized) 32

GAPS

• Policy papers (licensing of tour agencies, guides, hotels and restaurants) – international expertise • Tourism asset database • Improvement of the tourism information and statistical system: • “Tourism Satellite Account” system • 2017 Survey • Border electronic control information system (SECT) • National tourism action plan (Master plan) • Development of marketing collateral • Marketing and promotion actions/events in target markets • Tourism info centers in Yerevan and the regions • Administrative register • City asset mapping • Festivals • Participation in travel expos (major and specialized)

33 THANK YOU

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