1. Promoting Caucasus Tourism Globally Through Specialty Tourism Products: Armenian Case Study Alan Saffery Competitive Armenian Private Sector (CAPS) Project

2. Where is Armenia Anyway? 2146 km

3. ADD CNN VIDEO

4. Competitive Armenian Private Sector Project Tourism IT Engineering Services Pharmaceuticals Cluster Competitiveness Workforce Development Business Capacity Strengthening Policy & Advocacy MARKETINGMARKETING

5. Success of Armenia’s Tourism Industry in 2007  International 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)

6. 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

7. Armenian Government Approach to Tourism Promotion  Advertising on CNN and EuroNews - > $300,000  Travel 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

8. The Importance of Holistic & Targeted Promotion

9. Travel fair Magazine article Potential Market Size of Market untouched by promotion

10. The Importance of Holistic & Targeted Promotion J F M A M J J A S O N D Tourist Magazine Article Tour Operator World Travel Market Level of Awareness and Interest in Armenia

11. Travel fair Magazine article Cultural event Internet Size of Market untouched by promotion The Importance of Holistic & Targeted Promotion

12. 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 Magazine Article Fair Documentary Event Article Article Tour Operator Travel Cultural Fam World Magazine Event Trip Travel Article Market Email Newsletters

13. Armenia’s Tourism Products and Source Markets

14. 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

15. Impacts of Targeted Promotion in Italy  > 60 articles on Armenia published in trade and consumer media  Metamondo operated 1 st 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)

16. 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 accommodation Pilot 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

17. 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

18. 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

19. Where Next?  France  US-Armenian Diaspora  Adventure Tourism  Faith-based Tourism