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Expanding partnerships open fresh opportunities for Azerbaijan’s tourism sector [COMMENTARY]

Azerbaijan’s tourism sector, which has long been one of the country’s key drivers of non-oil revenue, is undergoing structural changes as traditional visitor flows from the Gulf countries experience a decline. This shift highlights the importance of diversifying arrival markets and investing in new destinations to sustain growth. The government has already been advancing initiatives such as the development of “Tourist Villages” in the regions, improved infrastructure, and targeted promotion campaigns to attract a broader audience. Against this backdrop, the strategic partnership with China stands out as a promising opportunity, given its vast outbound tourism potential.

Speaking to Azernews, MP Vugar Bayramov shared detailed insights into the recent tourism dynamics, challenges, and priorities for Azerbaijan:

"In the first 7 months of this year, the number of visitors from the Gulf countries to Azerbaijan decreased by 8.3 per cent. During that period, 237,400 people from Arab states came to our country. The country sending the most tourists from the Gulf to Azerbaijan is Saudi Arabia. 62,071 people came from this country during that period. 26,602 people were citizens of the United Arab Emirates. The number of Kuwaiti tourists was 14,779 people.

The number of tourists visiting Azerbaijan during that period decreased by 1.7 per cent to 1 million 477 thousand people. The decrease in the number of visitors from the Gulf and the UAE did not leave the total number without an impact. At the same time, the number of tourists from India is also decreasing in the total tourism share. Against the background of the decrease in the number of visitors from Arab states, the changes taking place in the tourism structure confirm that there is a need to establish closer cooperation with new arrival destinations. Strong cooperation in the field of tourism with our strategic partner states, especially with China, is relevant.

China's great outbound tourism potential. Despite this, the number of tourists from that country still accounts for only 2.3 per cent of the total number of foreigners. However, the potential and opportunities are greater. Tourism is the sector that brings the most foreign exchange to Azerbaijan after oil. Before the pandemic, annual tourism revenues were close to $2.7 billion. This sector also makes a significant contribution to employment. In this regard, further development of tourism infrastructure and optimisation of prices could allow more tourists to come to Azerbaijan. Achieving pre-pandemic indicators in a shorter time remains a priority. The decrease in the number of incoming tourists makes new calls even more urgent."

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