In the southern Caucasus mountains lies a small landlocked country of deep river gorges, mountainous steppes, a dormant volcano, a sea-sized lake and wild green pastures. This is Armenia, sharing borders with Iran, Turkey, Azerbaijan and Georgia. Its ancient landscape is home to hundreds of temples, medieval monasteries and churches and is known as the “cradle of Christianity”, having adopted the religion in the year 301. As well as its historical and natural distinctions, there is peace. Armenia gained independence from Russia in 1991 and is one of the most stable of the former Soviet republics. On the surface, this small, friendly country could become the next long-weekend destination. But there are challenges ahead.
During the first few years of independence Armenia’s economy struggled and its GDP shrank as trade routes with other Soviet republics were closed down and Russia imploded. Unemployment and poverty forced many to leave the country to find work. Even now, although around 3.7 million people live in Armenia, there are thought to be about 10 million diaspora worldwide.
There have been advantages to this. Continued inward investment from Armenians abroad has helped to strengthen their country’s economy since 1994. According to the Heritage Foundation 2005 Index of Economic Freedom, Armenia is ranked 42nd of 155 countries and is considered the most economically free country in the CIS region, and at the beginning of 2003, Armenia became a full member of the WTO.
There is still a long way to go, and this quickly becomes clear on arrival in the capital, Yerevan. My Lufthansa flight from Heathrow (via Munich) landed at the tiny Zvartnots Airport at 4.20am. As the bus trundled into the town centre, avoiding cavernous potholes and oncoming cars, the road was lined with huge imposing casinos, one after another, bright coloured lights promising crisp capitalist cash. Meanwhile, on the roadside, a man in ragged trousers slept, curled up on the wooden bench of his melon stall. The flashing neon lights behind him read “Rich Man Casino”.
“There has been strong economic growth but it is the Armenian people who need to be making a conscious decision to advance,” says Jonathan Stark, director of Cascade Capital Holdings, based in Yerevan. Stark moved from Britain eight years ago and is also on the board of the American Chamber of Commerce in Armenia (AMCHAM), a voluntary organisation set up independently to help and advise foreign businesses in Armenia. It has over 80 members ranging from German IT company Lycos to KPMG, Hertz rental cars, international airlines and banks, but most already have Armenian links when they invest in the country. “In order to succeed, Armenia needs to attract companies to invest who do not already have a connection with Armenia,” says Stark.
I was staying at the Armenia Marriott Hotel, an impressive 1950s building and the only branded hotel in Yerevan. In 1998, an American-Armenian bought the hotel and spent $38 million refurbishing it to five-star standards (the largest foreign investment in Armenia at the time). My room overlooked Republic Square (formerly Lenin Square). Every other car driving round the fountain in the middle of the square was a Lada. I did walk past a Porsche showroom, but behind the darkened windows it was empty.
Armenia is famous for its woven carpets, but the real money is in the diamond cutting business. During the Soviet years, Armenia had one of the seven largest diamond cutting factories in the CIS and the business is the country’s largest export – worth over US$250 million in 2003. But most of the cutting factories are now under foreign ownership. Armenia is also the world’s biggest producer of brandy and is renowned for its Ararat brandy (named after the biblical Mount Ararat which used to be on Armenian soil but is now part of Turkey). But, again, the largest producer is foreign-owned.
“There are plenty of skilled people in Armenia,” says Stark, “but there is still little opportunity for them to shine. The people here don’t have experience in leadership and business and that is what is needed to move ahead.”
The basic infrastructure is there: the Soviet roads, schools, hospitals and universities, and MGM movie mogul Kirk Kerkorian (American-Armenian) donated US$60 million to improve the road system.
Tour operators push religious tourism, and in Yerevan alone there are over 100 operators offering packages from day trips to 15-day excursions. Aquarius Travel runs guided tours of Yerevan as well as trips to the giant Lake Sevan, while London-based operator Sunvil has a 10-day tour for small groups, leaving in September, although it warns on its website that “the infrastructure is far behind that of Western Europe and accommodation anywhere outside Yerevan is almost non-existent.” Sunvil’s tour also visits the currently stable Nagorno Karabagh region which is in border dispute with Azerbaijan. Roseanna Melaragni, Sunvil product manager for Europe, says: “They are slowly building in the countryside and I think in about a year there will be accommodation other than in Yerevan.”
There’s no doubt that the religious architecture is spectacular, with cave-like monasteries built into the mountainside (Geghard) and perched high above the Lake (Sevanavank) or with clear views of Mount Ararat (Khor Virap). Yet Armenia has much more to offer. There are over 350 species of bird and seven micro-climates. The potential for trekking holidays across the steppes, and for eco-tourism, is huge. There is little pollution as Armenia’s main source of energy is hydroelectricity (there are no known oil or coal reserves although there is a nuclear power station), but the Armenian Tourism Development Agency, a government organisation based in Yerevan, only receives US$40,000 a year to promote Armenia abroad. Executive director Nina Hovnanian says: “We have a very limited budget so we cannot have big advertising campaigns.”
So far it has concentrated on the Japanese and Italian markets and there has been a corresponding 33.9 per cent increase in tourist figures in January and March this year compared with the same period last year.
But Hovnanian was vague about future tourism plans and did not know how many beds were available in the country or the exact plans for eco-tourism.
Tanya Evans, director of Silk Roads and Beyond, based in London, sends around 75 tourists a year to Armenia. Evans says: “It’s a nice country to visit and tourism has a pretty good future, but most of the tourists who go to Armenia are the diaspora – mostly Americans. For the last five years we have sent more or less the same number of people. It is a very specialised destination; we find that most of our tourists will go and see the pyramids in Egypt and the sites of Machu Picchu before they go to Armenia.”
With over 10 million Armenians worldwide, there is great opportunity for raising awareness and providing continuing financial support. Add to this Lufthansa flying three times a week from its hub in Munich and BA from Heathrow, and it is clear that the demand is there. European tourists have embraced the old Soviet republics since they opened up, and have shown a fascination with the Soviet buildings, the history being so recent and familiar.
But this country needs to promote itself. Without real government funding and a more organised approach, Armenia’s treasures are going to remain unseen for a while longer. Tanya Evans says: “If it had good roads you could drive round the whole country in a day, it is only about the size of Belgium”. She adds: “I cannot see it ever becoming a major tourist destination,” but she says: “I think they are doing a good job at promoting it.”
For adventurous travellers there are plenty of opportunities in both the UK and Yerevan to arrange tours to the country. Or independent travellers can just fly out and travel alone – It is only four and half hours from Munich and five and a half hours from Heathrow.
The rural areas are basic but beautiful. Public transport is available (though a lot of time and patience would be required), and best of all, the people I met were warm and generous. The wisest advice I received was from Stark, who knows the country well and is realistic about the near future. He said visitors should come to Armenia for the total contrasts it offers: “It’s a wonderful place and the people are great.” So, perhaps now is the best time to visit, before things change.
Armenia
Population 3.7 million.
Capital Yerevan.
Last in the headlines for the 1988 earthquake, which killed 25,000 and left half a million homeless.
Also known for Brandy, the much denied 20th century massacre of Armenians by the Turks, and being “the cradle of Christianity”.
Language Armenian, with a unique ancient alphabet dating from 400AD.
Getting there: London-Yerevan
Served from Heathrow via Munich with Lufthansa, which also offers connections from the UK regions. Also served directly by BMed (book through BA) from Heathrow.
Return fares with Lufthansa: business class £1,851, economy class £439. Return fares with BA: business class ranges £1,305 to £2,487, economy £345. Neither airline offers first class seating.
