Promoting Caucasus Tourism Globally Through Specialty Tourism

Products: Armenian Case Study

Alan SafferyCompetitive Armenian Private Sector

(CAPS) Project

Where is Armenia Anyway?

2146 km

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Competitive Armenian Private Sector Project

• Tourism• IT• Engineering

Services• Pharmaceuticals

• Cluster Competitiveness

• Workforce Development

• Business Capacity Strengthening

• Policy & Advocacy

MARKETING

Success of Armenia’s Tourism Industry in 2007International Arrivals – 510,287 (increase of 33% on

2006, average annual increase of 27% since 2001)Foreign Hotel Stays – 58,876 (increase of 8% on

2006)Tourism Expenditure in Armenia (from foreign

arrivals) – US$ 359 million (increase of 20% on 2006)Tax Revenues to Government – US$ 70 million*

(>$10 million through Exit Tax alone)

Direct Impacts of Promotional Activities

Armenia on Lonely Planet’s 2008 ‘Blue List’ of destinations to visit

Armenia Itinerary featured in US ‘Outside’ Magazine’s top destinations for 2008

Air Baltic operating scheduled flights to Armenia Armenia added to portfolio of Le Petit Futé French

Guidebooks

Armenian Government Approach to Tourism PromotionAdvertising on CNN and EuroNews - > $300,000Travel Documentary Film-Making - > $200,000

Mass-Promotion – Targeting Non-Potential Tourists – Infrequent Exposure - Inability to Retain Interest – Limited Channels - Little Return on Investment - Lack of Evaluation

The Importance of Holistic & Targeted Promotion

The Importance of Holistic & Targeted Promotion

Travel fair

Magazine article

Potential Market

Size of Market untouched by promotion

The Importance of Holistic & Targeted Promotion

J F M A M J J A S O N DTourist Magazine

ArticleTour Operator

World Travel Market

Level of Awareness and Interest in Armenia

Travel fair

Magazine article

Cultural event

Internet

Size of Market untouched by promotion

The Importance of Holistic & Targeted Promotion

The Importance of Holistic & Targeted Promotion

Level of Awareness and Interest in Armenia

J F M A M J J A S O N D

Tourist Magazine Travel TV Cultural Newspaper MagazineArticle Fair Documentary Event Article Article

Tour Operator

Travel Cultural Fam WorldMagazine Event Trip TravelArticle Market Email Newsletters

Armenia’s Tourism Products and Source Markets

Impacts of Targeted Promotion in Italy 35% increase of Italians staying at Armenian Hotels

in 2007 (compared to 8% average increase) 61% increase in Italians visiting Yerevan Information

Center in 2007 (compared to 34% average increase) 100% increase in Armenian visas issued by the

Armenian Embassy in Rome 200% increase in sales of trips to Armenia amongst

selected Italian tour operators 10 Italian Tour Operators selling trips to Armenia for

the first time in 2008

Impacts of Targeted Promotion in Italy

> 60 articles on Armenia published in trade and consumer media

Metamondo operated 1st charter flights to Armenia ‘Wind Jet’ low-cost Italian airline intending to operate

scheduled flights to Armenia (pending CAA agreement and Italian tour operator support)

Contribution to Armenian Economy of Targeted Promotion in Italy Additional US$1.06 million in tourism expenditure in

Armenia in 2007* Additional Tax Revenue to Government of – $220,000

(c. 20% of expenditure) This EXCLUDES Italian tourists staying in other

accommodationPilot has proven the efficiency of targeted promotion: Impacts

were achieved very rapidly and at a cost of $0.18 million + Impacts will continue to be seen in future years.

* Based on additional 801 Italian tourists staying in Armenian hotels for an average 13.8 nights and spending $122.7 per day* Expenditure is additional to national average increase

2007 Italian Promotional Activities

Participation in 3 Travel Fairs (Milan, Rome, Rimini) Press Conference held for Italian Journalists and Tour

Operators in Armenian stand during Milan Travel Fair Training to Armenian Tour Operators Familiarization Trip for Italian Tour Operators & Journalists Year-round ATDA representation in Italy Regular distribution of Press Releases and information to

more than 13,000 Travel Companies and 100 Journalists

2007 Italian Promotional Activities

Obtained support from Antonia Arslan Presentations to Italian-Armenian Diaspora

Community Cooperation with Armenian Embassy & Honorary

Consul Cooperation in organizing Cultural Events Italian Language Guidebook negotiations

Where Next?

France US-Armenian Diaspora Adventure Tourism Faith-based Tourism