The new Guidelines analyse the factors contributing to make Armenia, and its tourism sector, an attractive proposition for foreign investors, most notably
UN Tourism has added to its growing portfolio of investment guidelines with a new edition focused on the potential of Armenia
“Tourism Doing Business – Investing in Armenia” guides investors and tourism professionals seeking in-depth knowledge about Armenia’s tourism sector. It allows them to make informed decisions by showcasing Armenia’s unique cultural heritage, robust economic growth, and supportive business environment.
The Foreign Direct Investment (FDI) inflows totaled close to USD 1 billion in 2022, the highest on record. This upward trend continued into 2023, with FDI reaching USD 443 million according to UNCTAD. Recent updates from Armenian authorities suggest that the figure for 2023 is around USD 580 million, reflecting growing international confidence in Armenia’s market.
The new Guidelines analyse the factors contributing to make Armenia, and its tourism sector, an attractive proposition for foreign investors, most notably. The country experienced GDP growth of 8.7% in 2023, the fastest in Europe, with expected growth of 6.0% in 2024. This economic expansion is driven by strategic sectors such as tourism, IT, and agriculture. The Central Bank of Armenia has successfully maintained low and stable inflation rates, and the country boasts a highly educated workforce with a literacy rate exceeding 99%.
Additionally, the Foreign Investments Law allows unrestricted foreign capital participation, ensuring equal treatment for foreign and domestic investors. The government offers attractive tax incentives, including VAT exemptions for tourism services and significant tax breaks for operators of tourist accommodations.
UN Tourism Secretary-General Zurab Pololikashvili says, “Armenia is a rising tourism destination. At the same time, its dedication to economic reforms, infrastructure development, and the promotion of foreign direct investment has positioned it as the fastest-growing economy in Europe. These new Guidelines underscore Armenia’s commitment to fostering a conducive environment for international capital and showcase the opportunities the country’s tourism sector offers to investors everywhere.”
Armenia’s membership in the Eurasian Economic Union (EAEU) provides access to a single market of approximately 185 million consumers, while the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) strengthens ties with the European Union.
In recent years, Armenia has experienced remarkable growth as a tourist destination, with international arrivals reaching 2.3 million in 2023—a 22.3% increase from 2019. This surge significantly surpasses the regional average in Central and Eastern Europe.
Additionally, international tourism receipts soared to USD 3 billion in 2023, reflecting a 97% increase compared to 2019. Several factors contribute to Armenia’s rising appeal for tourists and investors alike. Armenia’s accessibility is enhanced by its visa-free entry policy for citizens from around 70 countries. Moreover, the country boasts strong connectivity, with direct flights available from over 50 cities across Europe, the Middle East, and Asia, and its main airports collectively accommodating over 4 million passengers annually.
UN Tourism Executive Director Natalia Bayona says, “Recent years have seen Armenia exhibit remarkable economic resilience and growth. International tourist arrivals are up almost 25% on pre-pandemic levels, while the arrival of investments across all sectors further illustrates the confidence in Armenia’s tourism potential. We are proud to be working with Armenia to showcase it as an investment destination through these latest Guidelines from UN Tourism.”
