What Armenia needs to become an attractive tourist destination? Interview with Zoltan Szabo

Tourism and hospitality are vital drivers of economic growth for many countries. For a nation to become a desirable travel destination, it must combine internal stability, investment appeal, and unique experiences for travelers, according to Zoltan Szabo, a consultant at Cushman & Wakefield.

Szabo visited Armenia to attend the HIF 2025 forum and shared his thoughts with NEWS.am Tech on what Armenia needs to strengthen its position on the global tourism map, the role of international brands and investments, and the country’s current advantages and challenges.

Key Factors for Tourism Attractiveness

To draw in tourists and investors, a country must offer the following, Szabo believes:

Economic and Political StabilityStability is the foundation for attracting international tourists and investors. A safe and predictable environment encourages companies to invest in infrastructure and hospitality. Infrastructure DevelopmentGood roads, public transport, and modern accommodations—such as hotels—create a comfortable experience for visitors. Unique OfferingsTravelers seek authentic experiences they can’t find elsewhere. This can include culture, cuisine, or natural landscapes.

Armenia, says Szabo, is making considerable progress in these areas—especially compared to neighboring countries. He rates Armenia’s investment appeal for international capital at 7–7.5 out of 10, noting its resilience despite geopolitical challenges.

The Role of International Brands and Investment

Attracting international hotel brands and foreign investment is key to boosting tourism. Szabo identifies several advantages:

Access to Global MarketsGlobal brands like Marriott, Hilton, and Pullman bring loyalty programs that reach millions of travelers worldwide. This increases Armenia’s visibility among tourists who may never have considered visiting. For example, a traveler familiar with Marriott in Prague might choose its Yerevan branch for their stay. Enhanced Quality StandardsInternational brands introduce consistent service quality, unique amenities, and advanced technologies—often superior to local offerings. Financial AttractivenessFrom an investment standpoint, branded hotels carry lower risk and higher returns. They are more likely to secure bank loans and have higher resale value.

This creates a "positive spiral": capital attracts brands, brands attract tourists, and tourists stimulate further investment. While local companies remain important, they often lack the global reach and resources to compete internationally.

Armenia's Current Standing

Armenia has already made significant strides in tourism development. Szabo highlights several of its strengths:

Hospitality and CultureYerevan is known for its cleanliness, vibrant nightlife, and the friendliness of locals. A relatively high level of English proficiency also makes communication with foreign tourists easier. Presence of International BrandsThe arrival of brands like Pullman in Yerevan signals market maturity. More brands are expected to follow, both in new constructions and in redeveloping existing buildings. Market ResilienceDespite the pandemic and regional conflicts, Armenia's tourism sector continues to grow steadily.

However, geopolitical tensions—such as the Russia-Ukraine conflict or instability in Iran—make some investors cautious, limiting capital inflow, even though the market remains promising.

What Can Armenia Do Now?

To further advance its tourism sector, Szabo recommends the following steps:

Reduce BureaucracySimplifying procedures for business registration, licensing, and financial transactions would attract more investors and brands. Expanding access to modern payment systems, like contactless cards, would also improve tourist experiences. Invest in InfrastructureArmenia should continue to develop its transportation networks, public spaces, and hotel facilities. Szabo notes that the government has already shown commitment to these goals, as evidenced at international forums. Focus on SustainabilityTourism should benefit local communities, not just the economy. This includes preserving cultural heritage, promoting eco-friendly projects, and supporting local producers. Promote AuthenticityEmphasizing Armenian traditions, cuisine, and natural beauty will help the country stand out from competitors. The Role of Government and Private Sector

Success in tourism requires strong collaboration between the public and private sectors. Szabo stresses that the government’s role is to create stable conditions and streamline administrative processes to attract brands, while the private sector must invest in high-quality projects that meet international standards.

Examples from well-established tourism destinations—such as the United States or countries in Western Europe—show that a coordinated policy approach and alignment with Western financial and management practices significantly accelerates tourism development.

In Summary…

Armenia holds great potential as a tourist destination due to its stability, hospitality, and rich cultural and natural assets. According to Szabo, the key to unlocking this potential lies in attracting international brands and investments, which will elevate the country’s global profile and drive economic growth.

To succeed, Armenia must continue reducing bureaucratic obstacles, building infrastructure, and promoting authentic, sustainable experiences. Combining these efforts with alignment to global standards will allow Armenia to become a competitive player in the global tourism industry.

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