BAKU, Azerbaijan, July 9. Azerbaijan needs to accelerate the diversification of its economy, and tourism could become one of the key sources of sustainable growth in the long term, the World Bank’s Regional Director for the South Caucasus, Rolande Pryce said, Trend's correspondent reports from the event.
She made the announcement at the event “Unlocking Tourism's Potential to Drive Economic Growth and Diversification.”
According to her, the World Bank’s new report on Azerbaijan consists of two parts: “The first is devoted to an analysis of the macroeconomic situation, while the second examines a specific topic of significant importance for the country’s economic development.”
"In the case of Azerbaijan, we have focused on tourism. The report analyzes the country’s latest economic indicators, assesses its medium-term prospects, and examines how tourism can contribute to long-term economic growth and economic diversification. Over the past decade, Azerbaijan has demonstrated resilience in the face of external challenges. This has been facilitated by effective macroeconomic management, substantial fiscal reserves, and prudent government policies, which have helped maintain economic stability amid numerous external shocks. “The country’s economy is facing new realities. The gradual decline in hydrocarbon production means that sustaining economic growth and creating quality jobs will increasingly depend on the development of the non-oil sector of the economy,” she said.
Pryce noted that Azerbaijan possesses a unique combination of advantages: a rich cultural heritage, diverse natural landscapes, well-developed international transport links, and a strategic location between Europe and Asia.
"Over the past decade, the tourism sector has grown significantly and today accounts for a substantial share of service exports. Compared to other countries in the region, Azerbaijan’s tourism potential has not yet been fully tapped in terms of the number of tourists, job creation, and its impact on regional development. Further development of the industry will require a shift from a model focused primarily on Baku and hosting events to a more diversified tourism ecosystem that unlocks the potential of the country’s regions,” she said.
According to Pryce, this will require improving the management of tourist destinations, enhancing transportation accessibility, developing hotel infrastructure and tourism services outside the capital, supporting local entrepreneurs, investing in professional skills development, and expanding air connectivity and access to international markets.
"Tourism is not just about attracting visitors. It is also about creating opportunities for local businesses, stimulating investment, creating jobs, especially for women and young people, and ensuring a broader distribution of the benefits of economic growth throughout the country. The development of the tourism industry can stimulate growth in the transportation sector, the hospitality industry, agriculture, trade, and small and medium-sized enterprises. The Government of Azerbaijan has already identified tourism as one of its strategic priorities and has set ambitious goals for the industry’s development. “The main challenge now lies in implementing these plans—transforming them into investment projects, strengthening cooperation between the public and private sectors, and ensuring the competitiveness of regional tourist destinations in the international market,” she said.
