The world financial crisis will affect internal tourism development in Armenia

PanARMENIAN.Net - Financial crisis consequences will have a negative effect on internal tourism development in Armenia, Armenian Hotel Association Chairman Hakob Hakobyan told a news conference on Thursday. ''Financial crisis and dram devaluation in Armenia ensued in income reduction and unemployment increase,'' he said.Reduced income in Armenian families will eventually impair internal tourism development, as many families will no longer be able to afford holidays in RA or NKR touristic regions. '' It's hard to make forecasts, but hopefully the slump won't be a major one, around 5%-7%,'' Hakobyan noted.

No touristic service tariff reductions will be implemented in near future. According to Hotel Association Chairman 80% of hotel expenditures include staff salaries, taxes and utility services. ''Tax legislation toughening, utility services tariffs increase do not allow of hotel tariffs reduction. Tourstic service is one of the rare unmonopolised services where hotel owners establish their own tariffs,'' Armenian Hotel Association Chairman noted.According to Hakob Hakobyan, currently many hotel construction projects are being frozen and no investments in hotel service development are expected in 2009.