How Azerbaijan promotes tourism to attract foreign investment?

Azernews: In recent years, Azerbaijan has witnessed a significant surge in the growth of its tourism sector, playing a pivotal role in the country’s overall economic development. As the nation continues to diversify its economy, the tourism industry emerges as a key player, attracting visitors from around the world and contributing to job creation, infrastructure development, and cultural exchange.

In January 2024, tourists in Azerbaijan collectively spent 193,254.3 thousand manat. The distribution of expenses included 87,434.7 thousand manat for transportation, 37,207.6 thousand manat for accommodation, 40,323.6 thousand manat for food, 837.7 thousand manat for cultural activities, 83.8 thousand manat for purchasing tourism packages, 212.7 thousand manat for renting transportation vehicles, 1,065.6 thousand manat for sports and entertainment services, 18,139.3 thousand manat for purchasing goods and gifts, and 7,945.2 thousand manat allocated for other expenses.

Compared to previous years, there was a twofold increase in transportation expenses, amounting to 45,345.4 thousand manat. Accommodation expenses saw a rise of 45.4%, totaling 11,625.9 thousand manat, while food expenses increased by 59.2%, reaching 14,988.8 thousand manat. Cultural expenses witnessed a growth of 40.9%, amounting to 243.1 thousand manat, and expenses on purchasing tourism packages rose by 63%, totaling 32.4 thousand manat. Moreover, expenses for renting transportation vehicles increased by 41.5%, reaching 63.7 thousand manat, while sports and entertainment services saw a 2.3fold increase, totaling 602.4 thousand manat. Purchases of goods and gifts increased by 50.3%, amounting to 6,072.5 thousand manat, and other expenses rose by 30.8%, 1,872.6 thousand manat.

“In the past, the World Bank, GIZ, UNDP, USAID, EBRD, and other foreign institutions were more active in financing infrastructure and institutional projects. However, some of their approaches are questionable. For instance, I’d like to point out shortcomings we observed in our own experience. An external donor institution is implementing the South Caucasus Tourism Development project, with its main office established in Tbilisi. However, it operates with the goal of channeling finances back to US companies or investing in Georgia. Such approaches, in my opinion, are not fair.”

“Considering all these aspects, I believe that our country should enrich the investments in the tourism industry through the national banking system, using more favorable and convenient business loans and leases. Local funds should pay more careful attention to tourism projects. reaching