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Sustainable Tourism Issue 33 A Word From Executive Director of AmCham Credits Dear members, Welcome to another edition of IMPACT Azerbaijan magazine! AmCham Executive Director: Since, the next Formula 1 Azerbaijan Grand Prix and UEFA Natavan Mammadova Europa League Final are approaching, we all already feel the atmosphere of tourism; thus, decided to dedicate this edition for achievements and further development of tourism Editor: in Azerbaijan. Aykhan Nasibli Definitely, tourism industry has its valuable part in macroeconomic indicators and can be considered a Articles contributed by: driving factor of the economy. Herein, concerted efforts of Fidan Sadikhli the Government and businesses are needed to address Farid Isayev changing dynamics of this industry. Within AmCham Travel, Tourism and Hospitality (THT) Committee, the members made a huge contribution to the 2018 edition of Ashraf Hajiyev AmCham White Paper. We hope that the addressed issues will find its gate for Gumru Eyvazova further development of tourism sector in Azerbaijan. Gunel Sadiyeva I am happy to witness successful and sustainable process of implementing the Ilaha Amirbayova Strategic Road Map for development of specialized tourism industry in Azerbaijan, Chimnaz Gasimova encompassing supply of high quality and competitive tourism services, shaping Nazrin Guluzade tourism practices in line with national values, attracting new investment projects, etc. It should be mentioned that we keep on enjoying fruitful cooperation with the Seymur Niftaliyev State Tourism Agency and are happy to contribute further. Herein, Azerbaijan's tourism industry is transforming into a dynamically developing Advertisers: area with investment – attractive business climate, a place where many important BP international projects are implemented. We wish best of luck to Baku in hosting Azerfon Formula 1 Azerbaijan Grand Prix and UEFA Europa League Final. Turkish Airlines P&G Best regards, Natavan Mammadova Iteca Caspian Publisher: Editor’s Comment American Chamber of Commerce Dear friends, dear members, in Azerbaijan Welcome to the next edition of IMPACT Azerbaijan magazine! Tourism is an exciting area, which we can observe and enjoy. Tel: (+994 12) 497 13 33 The last 3 years have been quite remarkable in tourism Fax: (+994 12) 497 10 91 dynamism of Azerbaijan. Tourism friendly legislation and www.amcham.az newly established tourist destinations played a key role in this journey. Business community, as well as the government www.impact.az received fruits from inflow of tourists. The recent massive wave also created lessons learned on providing better Advertising opportunities: services, tour management, strengthening institutions of Please contact the Editor at local tourist companies, diversification of tourist sources, etc. [email protected] Within this edition, you will be able to read interesting interviews and articles from the experts. Also, using this opportunity I would like to thank for our advertisers - Azerfon, Turkish Airlines, BP, Procter & Gamble. The articles in IMPACT Azerbaijan Enjoy reading! express the opinions of the authors and do not necessarily reflect the position of Sincerely, the American Chamber of Commerce in Aykhan Nasibli Azerbaijan contents IN FOCUS 4 19 More Foreign Tourists Through Public-Private Partnership - an Expansion of Public-Private Alternative Investment Mechanism Business Cooperation Special interview with Gunel Sadiyeva, Ilaha Amirbayova Mr. Fuad Naghiyev PwC Azerbaijan Chairman, State Tourism Agency 23 7 Human Capital is Paramount Everyone has to be Conscious with to Building and Developing a Importance of Developing Tourism Successful Tourism Industry Chimnaz Gasimova Special interview with Dr. Aytan Aliyeva Head of People Advisory Services, EY Azerbaijan Co-founder, Alliance for Advancement of Tourism and National Cuisine, MEMBER CONTRIBUTION Owner Representative, HAZZ Hotel, Baku 25 The Laffer Curve: 10 the Case of Azerbaijan Sustainable Tourism: Call for Public-Private Partnerships Nazrin Guluzade 27 Fidan Sadikhli, Senior consultant at Cleantech and Public Private Partnership: Alternative Sustaianbility services, EY Azerbaijan Way of Attracting Private Sector to 14 Infrastructure Projects in Azerbaijan New Lease of Life For Azerbaijan’s Tourism Seymur Niftaliyev Law Practice Manager, KPMG Azerbaijan Farid Isayev AMCHAM AZERBAIJAN 30 Head of Tax & Legal, KPMG in Azerbaijan About Us 16 Inbound and Outbound Tourism Practices and Preferences 32 Business Events CORPORATE TRAVELLERS CAN Ashraf Hajiyev, Research Director and Partner, SIAR Research and Consulting Group MODIFY THEIR BOOKINGS 18 Historical and Modern Aspects of 34 Tourism in Azerbaijan Amcham Members’ Luncheon AT NO EXTRA COST Gumru Eyvazova Turkish Airlines Corporate Club rates allow 36 Committee Highlights members to reebok or reroute their tickets to suit their Legal and External Affairs Executive, ever-changing business schedules and allow them to save British American Tobacco 39 AmCham Legal Update a great deal of money. To become a member and start receiving benefits of 2 Turkish Airlines Corporate Club Issue 33 please visit: corporateclub.turkishairlines.com CORPORATE TRAVELLERS CAN MODIFY THEIR BOOKINGS AT NO EXTRA COST Turkish Airlines Corporate Club rates allow members to reebok or reroute their tickets to suit their ever-changing business schedules and allow them to save a great deal of money. To become a member and start receiving benefits of Turkish Airlines Corporate Club please visit: corporateclub.turkishairlines.com in focus More Foreign Tourists Through Expansion of Public-Private Business Cooperation Special interview with Mr. Fuad Naghiyev Chairman, State Tourism Agency the tourism sector was the establishment of the State Tourism Agency, pursuant to the Decree on Some Measures Aimed at the Improvement of the State Management in Culture and Tourism of the President of the Republic of Azerbaijan, dated April 20, 2018. In the near future, the Agency will work to develop a new tourism policy, involve all members of the tourism industry into the process, improve research and statistics for longer-term development, train staff, effectively make an effective use of up-to-date advocacy tools, and make a maximum use of innovations and modern technologies in tourism. Our goal is to attract more foreign tourists to the country through expansion of public-private business cooperation, preparation and implementation of new development plans for infrastructure projects and, most importantly, by increasing the tourist satisfaction rate. Of course, there are constraints and issues that need to be tackled. The activities are already underway in this regard. We try to solve all the problems optimally by getting all stakeholders engaged into the process. Tourism should contribute to the income of the country and population. Based on our forecasts, tourism share in GDP will make up about 10% in the next decade. First of all, it Mr. Naghiyev, let’s speak about tourism development in is necessary to review and systematize the work done in the country - in previous years, now and in the upcoming previous years, and to work efficiently on interaction between five years. What progress do you observe and what your state bodies, businesses and public institutions. expectation is? All of our activities are aimed at achieving the goals and In the past couple of years, the state pays great attention to objectives set out in the Strategic Road Map on Development development of tourism. Multifaceted activities have been of Specialized Tourism Industry in the Republic of Azerbaijan, carried out to ensure growth in tourism and substantial steps approved by the head of the state at the end of 2016. The have been taken to increase the share of tourism-generated most important task for the near future is to increase the revenues in the country’s economy and GDP. As known, number of tourist influx to the country by two times by 2023 licensing in this field was cancelled in 2015 to support and introduce Azerbaijan as a popular regional and global development of private business. Subsequently, the incoming tourism destination. tourism in Azerbaijan began to grow and today, more than An example of the measures taken in this regard are the 2,000 individual entrepreneurs and legal entities are engaged reorganization of the tourism brand of Azerbaijan, preparation in the tourism sector. of the “Take another look” slogan and presentation of the new It is needless to say that one of the latest essential events in brand at the World Travel Market exhibition in London. 4 Issue 33 in focus Increasing the level of the service rendered to tourists, making tourists happy with our country once leaving should be in the interest of everyone working in the field of tourism. Anyone who works in this area should realize his/her role in the tourism growth and the responsibilities he/she holds. One of the main attractions for tourists are the reserves. What steps are taken in this regard? Currently, there are 7 reserves under the State Tourism Agency: “Yanardag” State Historical-Cultural and Natural Reserve, “Ateshgah Temple” State Historical-Architectural Reserve, “Basgal” State Historical-Culture Reserve, “Khinalig” State Historical-Architectural and Ethnography Reserve, “Lahij” State Historical-Cultural Reserve, “Yukhari Bash” State Historical- Architectural and “Kish” State Historical- Architectural Reserve. In July 2018, Presidential Reserve Fund allocated funds for the reconstruction of the “Yanardag” Reserve. The purpose is
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