JAA worked with Armenian tour operators to develop and implement strategies to further increase its share of the global tourism market. Through a Tourism Cluster Strategy, JAA helped stakeholders identify seven primary interventions, which led to an increase in the number of visitors, extending length of their stay, and increased spending at single attractions or locations. The strategy was designed in partnership and consultation with industry stakeholders from companies, government, educational institutions, associations and communities. Interventions were designed to build competitive tourism products based on cultural heritage and adventure opportunities, aimed at key markets of the USA, Russia, France, Italy, UK, and the Armenian diaspora.

JAA worked intensively with two municipalities, Dilijan and Jermuk on tourism branding, strategy, action-planning and site and service development. Work in Dilijan included rebranding as a center for sustainable tourism, including recreation, nature explorations, and medieval culture. Investment needs were identified including roads, communications, accommodation, restaurant, entertainment and recreation infrastructure. For Jermuk, JAA facilitated a Local Economic and Tourism Development Framework.

Strategic recommendations and subsequent work on policy reform included relaxing visa regulations and increasing the number of low-cost airlines that are allowed to fly into Yerevan. Promotional efforts from the Armenian Tourism Development Agency (ATDA) website were based on the development of a destination brand and an industry branding/promotional strategy, which worked in parallel with efforts to increase foreign investment in infrastructure, particularly accommodations.

With JAA’s facilitation, the tourism cluster collaborated in building the capacity of the country’s tourism industry workforce. CAPS supported “Professional Guides” skills training sessions, seminars on “Marketing and Sales in Hospitality Business”, and several other training programs. The CAPS project organized networking events to promote cooperation among the country’s tourism information centers and build dialogue around a competitiveness agenda. CAPS also worked across clusters, bringing together the IT and tourism cluster stakeholders to work on joint initiatives for mutual benefit.

Direct impacts of Armenia’s tourism initiatives include:

- 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

- More than 60 articles on Armenia published in trade and consumer media

- Metamondo (Italy) 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)

- 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* (more than $10 million through Exit Tax alone)

- Increase in sales by 49% among cluster members

- 7% employment growth and the addition of 1,584 jobs in the sector

- Export growth of 30%

Duration: 2005-2011