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Data Collection Survey on Tourism Development in Azerbaijan Final

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Data Collection Survey on Tourism Development in Azerbaijan Final Data Collection Survey on Tourism Development in Azerbaijan Final Report February 2017 Japan International Cooperation Agency (JICA) Joint Venture JTB Corporate Sales INGÉROSEC Corporation KRI International Corp. 3R JR 17-011 Data Collection Survey on Tourism Development In Azerbaijan Final Report Table of Contents Abbreviations ....................................................................................................... i Map ..................................................................................................................... ii Figures and Tables ............................................................................................. iii 1. Outline of the Survey ................................................................................ 1 (1) Background of the Survey .................................................................. 1 1) Current State of Tourism Development in Azerbaijan ......................... 1 2) Objective of the Survey ....................................................................... 1 3) Targeted Regions ............................................................................... 2 4) Counterparts ....................................................................................... 2 (2) Survey Schedule .................................................................................. 2 1) Work Plan ........................................................................................... 2 2) Mission Schedule ................................................................................ 3 3) Visited Organizations/ Institutions during the mission ......................... 4 4) Outline of the results of Workshops .................................................... 6 2. Azerbaijan .................................................................................................. 7 (1) Economic Situation in Azerbaijan ...................................................... 7 (2) Current Status of the Tourism Resources in Azerbaijan .................. 8 1) Tourism Resources ............................................................................. 8 2) Infrastructure..................................................................................... 19 (3) Tourism Development Policies and Strategies in Azerbaijan ........ 24 (4) Relevant Organizations in Tourism Sector in Azerbaijan .............. 27 1) Governmental Organizations ............................................................ 27 2) Private Sector Organizations ............................................................ 29 (5) Legal and Institutional System in Tourism Sector in Azerbaijan... 31 1) VISA ................................................................................................. 31 2) Law related to National Parks ........................................................... 32 3) Law related to Protection of Cultural Properties ............................... 32 4) Law related to Tourism ..................................................................... 32 (6) Human Resource Development in Tourism Sector in Azerbaijan . 33 1) Ministry of Culture and Tourism (MoCT) ........................................... 33 2) Educational Institutions in the Tourism Sector (Universities, Vocational Schools, etc.) ............................................................................................ 33 3) Private Tourism Sector ..................................................................... 35 (7) Current Status of Donor Assistance on Tourism Sector in Azerbaijan .................................................................................................... 35 (1) World Bank ....................................................................................... 36 (2) EU ..................................................................................................... 37 (3) UNDP ............................................................................................... 37 (8) Trends in Tourism Industry in Azerbaijan ....................................... 38 1) Foreign Direct Investment ................................................................. 38 2) Current status of tourists ................................................................... 39 3) Tourism Related Industries ............................................................... 47 4) Current Status of the Tourism Marketing and Promotion .................. 60 (8) Issues and Bottlenecks in Tourism Development in Azerbaijan ... 63 1) SWOT Analysis ................................................................................. 63 2) Institutional Issues ............................................................................ 64 3) Legal Issues ..................................................................................... 64 4) Issues on Infrastructure Development .............................................. 65 5) Issues on Tourism Marketing and Promotion ................................... 66 6) Other Issues ..................................................................................... 67 3. Recommendation on Tourism Promotion ............................................. 68 (1) Issues and Bottlenecks on Tourism Promotion toward the Japanese market ......................................................................................... 68 1) Strengthen competitiveness in the international tourism market ....... 68 2) Implement strategic tourism marketing/promotion ............................ 68 3) Build a sustainable tourism development structure through industry-government-academia collaboration ............................................ 70 4) Improve added value through national/regional collaboration ........... 71 (2) Suggestion for promotional activities toward Japanese market ... 71 (3) Suggestion for promotional activities toward the European market 79 4. Recommendation on the Tourism Sector Development in Azerbaijan 86 (1) Justification ........................................................................................ 86 1) Maximizing the Synergy effect of existing/implemented project by other donors .............................................................................................. 86 2) Proposition to introduce the concept of Destination Management Organization (DMO) .................................................................................. 86 3) Strengthening the promotion capacity intended for the Japanese market ....................................................................................................... 87 4) Enhancing B to B promotion activities .............................................. 87 (2) Proposition of Assistance for the Tourism Sector Development by JICA 88 ANNEX ............................................................................................................. 95 (1) Survey Sheet ....................................................................................... 95 (2) Results of Workshop (SWOT Analysis) ............................................. 110 Bibliography .................................................................................................... 111 Abbreviations Abbreviations Official names ADB Asian Development Bank AZPROMO Azerbaijan Export & Investment Promotion Foundation AzCB Azerbaijan Convention Bureau AZTA Azerbaijan Tourism Association BTVS Baku Tourism Vocational School CBT Community Based Tourism CIS Commonwealth of Independent States GDP Gross Domestic Product DMO Destination Management Organization EU European Union FDI Foreign Direct Investment FIT Foreign Independent Tour GIZ Deutschen Gesellschaft fur Internationale Zusammenarbeit ICC International Chamber of Commerce IMF International Monetary Fund IUCN International Union for Conservation of Nature and Natural Resources JATA Japan Association of Travel Agents JICA Japan International Cooperation Agency LCC Law-Cost Carrier MICE Meeting, Incentive, Convention/Conference and Exhibition OJT On-the-Job Training SIT Special Interest Tour SME Small and Medium Sized Enterprises SWOT Strength, Weakness, Opportunities and Threaten TIC Tourism Information Centers TSA Tourism Satellite Account UNDP United Nations Development Programme UNESCO United Nations Educational Scientific and Cultural Organization UNWTO United Nations World Tourism Organization USAID U.S. Agency International Development WEF World Economic Forum WFTGA World Federation of Tourist Guide Associations WTO World Trade Organization WTTC World Travel & Tourism Council WWF World Wide Fund for Nature i Map Survey Area Caucasus region Azerbaijan Basic Political system Republic Surface 86,600 km2 information of Azerbaijan Capital Baku Population 9.6 Million Main Religion Islam GDP (M USD) 53,050 【Map】 Source: United Nations ii Figures and Tables Figure 1-1: Work Plan ............................................................................................ 2 Figure 2-1: Trends of GDP (2005 – 2015) in Azerbaijan ............................................ 7 Figure 2-2: Tourism Resources in Azerbaijan............................................................ 8 Figure 2-3: Foreign hotels in Azerbaijan by operation .............................................. 39 Figure 2-4: Economic contribution of travel and tourism to Azerbaijan’s GDP ........... 39 Figure 2-5: Foreign tourist flows to Azerbaijan ....................................................... 40 Figure 2-6: Number of incoming tourists from Russia, Georgia, and Turkey .............
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