Analysis of Armenia’s Travel and Tourism Competitiveness

The Index measures the competitiveness of tourism industries in 133 countries around the world. The overall index is comprised of three subindices and beneath this, a series of pillars that utilize a number of industry indicators. The framework is outlined in the table below. Between 2007 and 2008, Armenia dropped in its ranking by 15 places, from 74th to 89th position. Between 2008 and 2009, Armenia slightly dropped in its ranking by 2 places, from 89th to 91st position. Therefore, between 2007 and 2009, Armenia dropped in its ranking by 17 places, from 74th to 91st position. The number of countries included in the 2009 rankings increased to 133, from 130 in 2008. Within the T&T Regulatory Framework, Armenia's ranking between 2008 and 2009 decreased by 1 place, putting it in 58th position. Compared with 2007, the overall improvement is 7 positions, from 65th in 2007 to 58th in 2009. Armenia's ranking in the Policy Rules & Regulations pillar declined from 63rd (in 2008) to 77th position (in 2009). A small decrease (from 112th to 113th between 2008 and 2009) was seen in the Environmental sustainability pillar. The Safety & Security pillar ranking remained the same as last year at 45th position. Prioritization of Travel & Tourism increased by one place from 105th to 104th position compared to last year, but the Health and Hygiene pillar ranking jumped from 45th position in 2008 to 30th in 2009. Within the T&T Business Environment Framework, Armenia's ranking increased by 3 places overall putting it in 105th position. Rankings increased under three of the five pillars within this subindex. The ICT infrastructure and Price Competitiveness in the T&T industry pillars decreased their rankings by 6 and 21 positions respectively. Within the T&T Human, Cultural & Natural Resources Framework, Armenia's ranking dropped by 8 places putting it in 102nd position. The Human Resource pillar ranking decreased by 2 places and the Cultural Resources and Affinity for Travel & Tourism pillars by 3 places each. However, the largest ranking decrease was observed in the Natural Resources pillar. Armenia's current competitive advantages in travel and tourism, according to the WEF T&T Competitiveness Index are: Cost to start a business, Business costs of terrorism, Business costs of crime and violence, Road traffic accidents, Physician density, Hospital beds, Hiring & firing practices, Ease of hiring foreign labor, HIV prevalence, and Extension of business trips recommended. All of these indicators are ranked 40th or above amongst the 133 countries identified. Compared to the 2008 rankings, the following indicators went out from competitive advantages list: Time required to start a business, Carbon Dioxide emissions, Purchasing power parity, Hotel price index, and Attitude of population toward foreign visitors. However, the competitive disadvantages outweigh these significantly. 27 indicators give Armenia a ranking in 90th position or below. These indicators are highlighted by shading in the table below and are examined further in this report. The table below provides details of Armenia's rankings under each of the subindices, pillars and indicators for 2007, 2008 and 2009. The table also provides annual and overall comparisons. Positive changes in indicators are colored green. Negative changes in indicators are colored red. The last column in the table indicates the differences between 2007 and 2009. Those indicators that are shaded represent the greatest competitive disadvantages according to the T&T Competitiveness Index. Each of these is examined further below. Armenia's ranking in the T&T Business Environment Framework increased by 3 places overall putting it in 105th position. Rankings increased under three of the five pillars within this subindex. The