Category: 2023

How to preserve tourist business on the border

Tourism in Armenia is gradually recovering despite the unstable situation on the border with Azerbaijan. The first serious blow to the tourist business was the coronavirus pandemic and the Karabakh war of 2020. Then followed the military escalation in 2022, which is popularly called the “September war”.

Many local residents, after the advance of Azerbaijani troops deep into the territory of Armenia, lost the opportunity to engage in agriculture and animal husbandry. People cannot work in their gardens – just a few meters from the Azerbaijani military positions, they have lost their pastures. Due to the prevailing circumstances, residents of the border regions are forced to look for other opportunities to earn a living and pin their hopes on tourism, in particular those who founded guest houses based on the interest of tourists in Armenia after the “Velvet Revolution” of 2018.

---

• “Armenia’s economic growth potential is not infinite.” Opinion
• “Armenia is among the countries with a small public debt” – Pashinyan
• Tourism in Armenia in 2023

---

Since last year, tourism workers in the border regions of Syunik, Vayots Dzor and Gegharkunik have been trying to find alternative ways to preserve and develop their business. Together they develop new offers for tourists.

According to Hasmik Azoyan, director of the Basen Hotel in the city of Sisian, Syunik region, sharp fluctuations in tourist flows in recent years have significantly affected the efficiency of work. The tumultuous 2019 tourism season was followed first by a pandemic, then by a 44-day war. The 2021 tourist season, along with the recovery trend, differed from previous ones in the change in the approach of visitors.

“If before we were visited by groups of 20-30 people and much less often traveling alone, then after 2021 the situation has changed. People began to travel mainly with families, small groups of friends or alone,” she says.

Before the cross-border tourism business adapted to this new trend, the events of September 2022 took place; business owners suffered big losses, as tourists simply stopped going there.

“Many tour operators avoid trips to Syunik or organize one-day tours. They come to Tatev [Tatev monastery complex of the late 9th – early 10th centuries] and return the same evening. Such tours do not generate economic results for Syunik. This over-caution or fear is totally misplaced. It kind of offends even us, because we live here with our children,” Hasmik Azoyan says.

Nature of Syunik

Difficulties forced the residents of the borderlands to be more flexible to try to find methods to save their business.

This year they intend to offer the guests of Syunik a new tourist experience — agritourism. They have already created a 500 square meter orchard next to one of the local hotels.

“Currently, there is only one extraordinary tourist offer in our community – master classes in the creation of ceramic products. And now the tourists coming to Sisian will also have an offer to get the experience of agritourism. They will be able to walk in the garden, the guide will talk about the history and benefits of crops. Tourists will be able to pick berries and fruits themselves, cook something to their taste or take the harvested crop with them,” explains the project manager.

Hiking, adventure and cultural tours are also organized in Syunik. Hasmik Azoyan says that the agritourism offer was invented for those who are unlikely to be interested in it:

“Especially for domestic tourists, adventure tours and hiking are not very interesting. They also do not attract young families who come to rest with children. And agro-tourism is not only convenient and safe for children, but will also provide an opportunity to connect children with nature.”

This project as a final product was designed as a result of surveys conducted among the target groups. The authors say that the interest shown by survey participants gives reason to expect practical results in a short time. It is believed that this program will attract many people to Sisian, and this will help revitalize the life of the city, even economic growth.

Azoyan emphasizes that now, more than ever, the border regions need new projects and new tourism initiatives.

Several tourism projects are also being launched in Vayots Dzor. In particular, in the village of Aghavnavank, the NGO ONEArmenia and local winemakers intend to launch the tourism project “Senses”.

“Senses will be housed in a building with interesting architectural and innovative solutions. Winemakers will have the opportunity to organize a tasting of their own wines here. In the long term, we strive to have an environment that allows people to activate all their senses: taste, smell, sight and other senses. That is why we named the project Senses,” says Anahit Nazaryan, representative of the NGO ONEArmenia in Yerevan.

Wine tour in Vayots Dzor region. Photo from ONEArmenia website

As planned by the authors, in the future this place will serve as a hub for wine producers, and winemakers producing small volumes of wines will be able to present their products here.

According to Anahit Nazaryan, the implementation of tourism projects in the border area of Vayots Dzor is as risky as the life of the locals:

“As long as people live there, we will continue projects in these regions. Of course, there were days when we postponed or canceled a visit to the border area due to tensions at the border. But this is not a reason for us to refuse to implement programs here. On the contrary, these projects should be used as a method of highlighting the situation and familiarizing tourists with it.”

These projects are being implemented thanks to grants announced by the Armenian Tourism Committee, that is, state assistance and own investments.

Experts in the field of tourism expect real steps that would contribute to the intensification of tourist flows to the border regions. They hope for assistance not only from the state, but also from the media, representatives of the tourism business from other regions of the country, and travel agencies. They expect help from everyone who will simply come to the border as a visitor and thus support local residents, contributing to the restoration of tourist flows by personal example.

“The border areas now need various promotional campaigns. It will be great if government agencies organize meetings and conferences here. For example, there may be visiting meetings of the government, visiting meetings of parties. Representatives of the state administration, by their example, should stimulate visits to the border regions,” Hasmik Azoyan believes.

Anahit Nazaryan believes that in order to stimulate tourist flows in this direction, the state must, first of all, strengthen the security of the borders and the country as a whole:

“Whatever project is implemented, if people do not have a sense of their own security, they will not go to the border for something tasty or beautiful. All problems can be solved solely by ensuring security at the border.”

Traveling in Armenia by car. Photo from ONEArmenia website

President of the Tourism Federation of Armenia Mekhak Apresyan warned about the risks for tourism that may arise in the border areas last year:

“Fortunately, despite the risks, tourism in these areas has not completely collapsed, but it should not be just a surviving business. Government support programs and policies are certainly important, but we must be aware of the role of the private sector as well. We must join hands, support each other, carry out processes together. Only then can we succeed.”

He suggests that now, when post-war Armenia is ranked among not the safest countries, try to present it in a different way, organizing, among other things, various festivals:

“Thanks to the unprecedented amount of 1 billion drams ($2.6 million) allocated by the government this year for the tourism sector, thanks to the variety of events held, we can subtly approach the issue, show the world the real picture. We can show that Armenia is a country worth visiting. In order to ensure maximum results, this must be done in conjunction with foreign media publications. It is necessary to organize study visits and combine them with major international events.”

-the-border/

“Give me, a group of diplomats, a chance; keep quiet for 2-3 months, we will take responsibility. I assure you that there will be serious progress in the negotiations, a sharp turn in favor of Armenia,” former Foreign Minister Vardan Oskanian said to the Armenian authorities.

He claims that “there is an opportunity not to lose Artsakh without provoking a war with Azerbaijan.” He says there are “competent people” who can “correctly represent problems.” As a result, according to him, the Armenian side will not only avoid war, but will achieve “substantial progress.” At the same time, the diplomat stressed that his statements should not be considered as an application for a return to politics.

---

• “Baku uses ‘coercive diplomacy’ against Yerevan” – Thomas de Waal

• “Negotiations between NK and Baku without a mediator are unrealistic.” Opinion from Yerevan

• “Negotiations or pressure on Armenia?”: shelling in NK during negotiations in Washington

---

Oskanian told reporters that the Armenian authorities must have the courage to lay down the burden that is too much for them and delegate negotiations to those who are able to bear this responsibility. He stressed that today the Armenian authorities cannot achieve an alternative solution to the Nagorno-Karabakh problem. According to Oskanian, an alternative would be to give him and a group of diplomats “100 percent authority.”

“But at this time, Pashinyan should simply remain silent, not speak either in commissions [meaning the Prime Minister’s speeches at a meeting of the commission investigating the circumstances of the Karabakh war in 2020], neither at government meetings, nor from the rostrum of the National Assembly, he must refuse to hold press conferences , interview. This is an important condition.”

Oskanian explained this by saying that the Prime Minister’s speeches complicate the situation and “every day it becomes more and more difficult to change it.”

In the event that a group of diplomats receive powers, Oskanian promises

• very quicklyto change the logic and narrative of negotiations,
• expand the existing negotiating agenda.

The main step to change the logic and narrative of negotiations is the following:

“We should not negotiate in unequal conditions created as a result of an unjust war, go to the solution of the issue under the threat of war by signing a peace treaty. We must enter into negotiations, yes, as a result of an unjust war, in unequal conditions, but look for the right ways that will create an opportunity for Armenia and Azerbaijan to achieve a just and lasting peace.”

According to the ex-minister, Armenian interests are not represented on the negotiation agenda today, only Azerbaijan’s demands are heard:

“The Armenian delegation in Washington and other places is negotiating only and only in order to give the demands of Azerbaijan such a “package” that will be understandable and acceptable to the Armenians. And Azerbaijan does not even allow this, it wants to formulate its demands in such a way that there is no possibility of different interpretations.”

Oskanian argues that the fact of the existence of the Nagorno-Karabakh Autonomous Region in the Soviet years should be the main argument in the position of Armenia:

“Let’s not forget that this fact in 1991 gave the people of Artsakh the opportunity to strive for self-determination, to hold a referendum.”

He considers it necessary to discuss this fact at the negotiating table. I am convinced that this argument will open up new possibilities for political and legal decision-making. It does not exclude that Azerbaijan will be against including this issue on the agenda of negotiations, but in this case it will face very serious problems from the point of view of international law:

“The refusal to put this issue on the agenda will give the people of Artsakh the opportunity to fight for their independence with the help of the international community. I’m talking about the letter and spirit of international law.”

Vardan Oskanian considers it a misunderstanding to say that “Artsakh is Azerbaijan”, believing that Armenians can live there peacefully or safely. He excludes even the possibility of discussing this topic.

“It just can’t be. Why should Artsakh be part of Azerbaijan? When was he in it? Artsakh was not part of independent Azerbaijan. During the years of Azerbaijan’s existence, it was part of it only in the Soviet period as an autonomous region. And Azerbaijan itself, by its constitution, declared this period invalid, illegal, a period of occupation.”

According to the former negotiator on the Karabakh settlement, having all this arsenal, one cannot just keep silent and think about satisfying Baku’s demands. He insists that there are diplomatic ways to solve the problem. And the current government “should have the will, cast aside their ego and allow experienced people to work.”

“Surrendering Karabakh to Azerbaijan is the easiest way to solve it,” Oskanian believes, and it is this way that the Prime Minister of Armenia presents to the mediators. The former minister explains that for the international community, a solution to the Nagorno-Karabakh problem is desirable, but the mediators “are not particularly interested in how this will happen.” Accordingly, the international community will support Pashinyan in every possible way so that this easy decision is made.

“But the moment the Armenian authorities give a new wording to the nature of the negotiations, there will be a sharp change in the position of the international community. If the Armenian side formulates logical, convincing, moderate demands, the content of the talks will change. There is a serious alternative to what Pashinyan is trying to do,” he stressed.

Oskanian assures that no Armenian government “has ever recognized Artsakh as part of Azerbaijan”, Pashinyan was the first to do this, and now he is trying to consolidate what was said by signing the relevant documents.

“We must not let this happen today, it would be a big mistake. Several generations will regret this act,” he said.

According to the ex-minister, if Pashinyan continues to say what he says, and at the same time try to delay the fulfillment of his promises, the likelihood of war will be very high.

“And in case of silence, in two months this probability will be equal to zero. What is being done today cannot lead to a lasting peace. This may temporarily lead to some kind of peace between the Pashinyan government and Azerbaijan. But this decision cannot lead to peace between the Armenian and Azerbaijani peoples.”

The diplomat believes that in order to achieve a stable and lasting peace, it is necessary to offer the international community a correct assessment of the current situation, taking into account the history of the conflict.

Raising the minimum pension in Armenia

On July 1, the minimum pension in Armenia increased by 4,400 drams ($11) to 36,000 drams (almost $94). The average monthly pension payments, benefits for old age, disability and in connection with the loss of a breadwinner have also been increased. The Ministry of Labor and Social Affairs reports that the changes will affect approximately 580,000 people.

However, according to economist Suren Parsyan, in conditions of 5.2 percent inflation, the increase in pensions and benefits cannot improve people’s living standards. He says this measure can only alleviate the situation.

---

• “Armenia’s economic growth potential is not infinite.” Opinion

• “Positive momentum for investors” – Armenian economist on Moody’s rating

• $1 billion of foreign investments in Armenia: PR ploy or real growth?

---

Since July 1, labor pensions have also increased. They are calculated based on the size of the basic pension, which before that was 21,000 drams ($54), and now it is 24,000 drams ($62.5).

The benefits for old age, disability and loss of a breadwinner have also increased:

• the amount of the old-age benefit is 36,000 drams ($93.7) instead of the previously paid 31,600 drams ($82),
• the amount of the benefit in connection with the loss of the breadwinner is 36,000 drams instead of 31,600 drams,
• for persons with disabilities with a deep degree of functional limitation (disability group 1), the amount of the allowance is set at 39,000 drams ($ 103) instead of the previous 31,600 drams, and in the case of a military pension of the same group (we are talking about compulsory military service) – 50,600 drams ($131.7) instead of 46,000 ($119.7).

This is the assessment of the Prime Minister of Armenia. According to him, AMD 36,000 is 99.5% of the approved minimum food basket.

“And those pensioners who spend their pension non-cash and thus use the 10 percent discount program will actually receive an amount exceeding 106 percent of the food basket,” Pashinyan said.

“This is an unprecedented event in the history of the country. For the first time, a pensioner will be able to cover his minimum food expenses from his pension,” Pashinyan said.

In the first quarter of this year, the cost of the food basket was 36,188 drams ($94.2) per person per month.

According to the prime minister, only 12 percent of pensioners (about 73,000 people) receive the minimum pension in Armenia. The rest, about 500,000 pensioners, receive a higher pension, and their amounts have also increased.

This is the opinion of Anahit Galstyan, head of the pension provision department of the Ministry of Labor and Social Affairs.

“In any case, when a person’s pension is not enough to meet vital needs, there will be dissatisfaction, despite all the positive changes. At the same time, it is necessary to understand that a pension is not a salary, but an insurance system, and there are no pensions equal to a salary in any country,” she stressed.

Anahit Galstyan recalled that after the increase, allowances will be paid to 580,000 people, and if pensions and benefits were increased by only 1,000 drams, almost 6 billion drams ($15 million) would already be needed. At the same time, the average pension is now 49,000 drams ($127.6), which is 30,000 ($78) less than the minimum consumer basket. In order to raise it by 30,000, about 200 billion drams ($520 million) are needed.

“In any case, spending more than 200 billion at once is unrealistic. Our steps should be based not only on the desires, but also on the economic capabilities of the state,” she said.

According to economist Suren Parsyan, the increase in pensions and benefits against the backdrop of high inflation will not lead to a significant change in the quality and standard of living of people. The changes will only mitigate the situation that arose in connection with the sharp increase in prices last year and this year.

The economist positively assesses the fact that for the first time average pensions are almost equal to the food basket, but at the same time he emphasized:

“This may contribute to the elimination of extreme poverty among pensioners, but they will remain poor anyway, because they need to buy not only food, but also use various services and goods.”

According to Parsyan, given the level of inflation, the government should regularly review the amount of pensions:

“It is very important to solve not only the problem of pensions, but also to propose solutions regarding pensioners’ health care costs. It is no secret that many people spend most of their money on medicines and various medical services.”

The expert says that the number of extremely poor people has doubled in 2021, most of them were pensioners.

“It is important to overcome extreme poverty. To do this, the government must also stimulate, create conditions for pensioners to work, because there are many of them who are ready to work. In terms of employment programs for pensioners, the government is passive.”

https://jam-news.net/raising-the-minimum-pension-in-armenia/