1 2 Contents Introduction ................................................................................................ 4 Bibliography .............................................................................................. 13 Trends ......................................................................................................... 4 Appendices ............................................................................................... 21 Demand ...................................................................................................... 4 Segmentation ............................................................................................. 5 Product ....................................................................................................... 5 Choice of Location ...................................................................................... 6 Current Activities on Offer ......................................................................... 7 Potential Activities for the Future .............................................................. 7 Eco - Tourism .......................................................................................... 7 Educational & Environmentally Stable Programs................................... 7 Capacity Building ........................................................................................ 8 Investment ................................................................................................. 8 Stakeholders ............................................................................................... 9 Communication .......................................................................................... 9 Limitations ................................................................................................ 10 Conclusion ................................................................................................ 10 Works Cited .............................................................................................. 11 3 Introduction history (59.3%) as well as eco & adventure tourism (12.4%) (CAPS,2007). The purpose of this paper is to provide the Armenian Government with a Figure 1 illustrates that from the total inbound tourists, 12% are LHV strategy for the expansion of the sustainable tourism sector in the visitors. Armenia attracts leisure country through the UNWTO brand “The Silk Road”. The objective of the tourists mainly coming from Canada, tourism enhancement is the creation of new jobs, the increase in France, Germany, USA and UK spending in the country and the consequent reduction of the poverty (Euromonitor, 2011). Please refer to level by addressing several of the UN millennium goals. figure 2. There is also a high number of Figure 2 Top 5 Countries of Origin Russians and Georgians entering the Trends country, however, these nationalities were not taken into consideration Researching global tourism trends, a worldwide interest in eco-tourism due to the high level of Diaspora that makes leisure their secondary and adventure travel has also been identified: travelers now want to purpose of visit. experience the culture of the country visited, meet local people, visit the important sites, in an eco-friendly way, as well as the most remote and According to Euromonitor, international arrivals from the selected top 5 wild locations (CREST, 2010) (Chesak & Heyniger, 2011). countries of origin are forecasted to continuously increase over the years, reaching 9802 LHV trips in 2015. More specifically, 71.40% of the Demand tourists traveling to Armenia go to the Lake Sevan area, meaning that between 2013 and 2015 approximately 6800 visitors will reach this A survey about Armenian international region (CAPS, 2007). Please refer to Appendix A. visitors has shown that Leisure/Holiday/Vacation (LHV) visitors come to Armenia for the following reasons: nature (68.6%), culture and 4 Figure 1 Reasons to visit Armenia Segmentation Two personas were created to demonstrate the tourist that would be most likely to travel to Armenia. Jean Luc is seeking hard adventure Figure 1 illustrates the characteristics of LHV travelers in Armenia as well activities when he travels. However, he also enjoys some soft adventures as the global profile of eco-tourism and adventure travelers. In summary, with his family, which normally involves interacting with the locals. Julia the project’s most suitable persona is approximately 39 years old. There is 33 years old and she too is looking for an adventure, however, more on is no specific gender since male and female have the same proportion. the sustainable side. When she books her trips, ecology plays a big part There is an approximate 74% chance for the potential customer to be a on where she goes and stays. Please refer to Appendix B. high school graduate. Finally, the average length of stay is 10 days and the average daily expenditure is 161 US$. Product In order to merge the demand for eco-tourism and adventure travel, the proposed strategy includes the launch of an ecological hotel in Noratus, located in the region of the Lake Sevan, as well as the development of activities that currently aren’t on offer. Although this strategy was designed specifically for one location, the model should be implemented Figure 3 (Wood, 2007), (CAPS, 2007) and (The George Washington University School of in other areas of the country by 2019. Business, 2010) (Chesak & Heyniger, 2011) After having analyzed Armenia’s current tourism situation and the global Generation X best represents the eco and adventure traveller. The travel trends, it has been decided that the best tourism strategy is to Generation X is between 30-45 years old. This generation is full of construct and eco-hotel to attract the ever-growing adventure and eco- ambition with a certain need for independency (Talent Management traveler segments. Those favorable global trends confirm that developing Team, 2007). Subject to stress, this generation especially cares about a combined offer of eco-tourism and adventure travel is justifiable (CAPS, physical appearance (Diane & Devon, 2004). Since 2008, Generation X is 2007). Armenia has a natural and untouched beauty as a unique selling the largest group of both business and leisure travelers (Xola, 2006 ). point, as opposed to other destinations that are already fully developed. 5 The proposed strategy is based on the combined pillars of eco-tourism Furthermore, the hotel serves as a platform for local activity providers (Honey, 2007) and adventure travel, that are illustrated in Figure 4 (The and other businesses to offer their services and therefore benefit from George Washington University School of Business, Adventure Tourism the Silk Road project indirectly due to increased demand. Market Report, 2010): Choice of Location Eco-tourism Adventure Travel Lake Sevan, located in the state Gegharkunik, has been identified to be the most suitable location for eco-tourism and adventure travel. First of Travel to natural destinations with Physical Activity all, this is due to the reasonable distance to the sole international airport, a minimized impact as well as the public transport system, which already exists and therefore Provides financial benefits and Interaction with the environment requires no investment. empowerment for local people Secondly, this rural area is rich in cultural and natural attractions, as well Respect for local culture & support Cultural Exchange for human right as potential activities during both winter and summer. Please refer to Appendix C. Lastly, it can help the UNWTO to achieve its millennium goals through poverty alleviation, reducing seasonality and increasing Figure 4 .... (Honey, 2007) (The George Washington University School of Business, Adventure Tourism Market Report, 2010) sustainability. The goal is to build a hotel that is as sustainable and environmentally Finally, it has been found that even though the Silk Road was once friendly as possible using organic materials and local products. Waste is economically significant for Armenia, only one site remains that can be recycled, and energy is generated in the nearby river through hydro clearly linked to the ancient road: Selim Caravanserai (Avetisyan, 2012). It power, as well as solar panels that are installed on the roof. Not only is can be explored through the bike trail starting in the Martuni Village and the building self sustainable, but business operations are sustainable as stretching over 30 kilometers along the Silk Road (Adventour Armenia, well by offering training and employment to the local population. 2011). Please refer to Appendix D. 6 Current Activities on Offer and November. This will allow travelers to interact in a positive way with little negative impact on the environment. The labor granted by tourists Lake Sevan offers very competitive prices especially in terms of skiing. would be voluntary, resulting in the farmer not having to pay for extra The skiing on Mt. Tsakhkadzor and Mt. Azhdahak is said to be amazing help (Shiffrin, Ph.D., 2006). with wide slopes and few people (Winter Armenia, 2012). Although skiing is not perceived to be very sustainable, it can entice travelers to visit A similar trip can be promoted during the months of May and June, as Armenia during the winter months, as currently travelers tend to visit this is the time that the farmers of Armenia plant their crops such as during the summer, and thereby reduce seasonality Please refer to cereals and potatoes, and