ROUTE RESET

In the post-pandemic period (2022–2024), Azerbaijan's leisure sector demonstrated a remarkable recovery, surpassing 80% of its pre-crisis performance. Inbound tourism was the primary catalyst for this growth, with tourism products and new destinations being actively promoted at specialist exhibitions and forums across the Gulf states, Central and South Asia, China, Europe, Russia and elsewhere.

However, the inbound sector began to lose momentum last year, and between January and July 2026 it recorded an outright decline of 9.2%.

In order to overcome this inertia and accelerate the industry's development, the State Programme for the Development of Tourism in Azerbaijan for 2026–2030 was adopted and approved by President Ilham Aliyev on 20 August. The document aims to introduce promising destinations, improve transport connectivity, raise service standards and develop tourism infrastructure.

A growth model

The complex geopolitical and economic changes taking place around the world, together with the growing adverse impact of climate change, have made reforms in Azerbaijan's tourism sector necessary. For a number of reasons, including political challenges, there was a significant decrease in visits by Russian and Indian tourists in 2025. Arrivals from several post-Soviet countries and Middle Eastern states also fell, as conflicts caused flight delays and made travel more difficult. Concurrently, high inflation, indications of a recession and, most significantly, a substantial increase in aviation fuel costs have led to a worldwide surge in airfares, significantly hindering tourism growth in numerous countries.

In recent years, the State Tourism Agency and the Azerbaijan Tourism Board have been working to adopt leading international practices and overcome inactivity within the sector. The project has involved a number of key elements in the development of Azerbaijan's tourism industry. These include the introduction of new tourism products, as well as the certification of hotels and other tourism facilities and the awarding of star ratings.

However, the sector's development does not yet fully reflect its potential. For instance, Azerbaijan requires enhanced coordination between inbound tourism and passenger transport services. Greater attention is also required in regions where expensive accommodation and catering services are often combined with modest standards of service and limited entertainment options.

The new state programme sets out detailed solutions to these challenges. The preamble to the reforms states that their primary objectives are to strengthen the role of tourism in the country's socio-economic development and the diversification of the non-oil economy, improve the competitiveness of the regions and reinforce Azerbaijan's position as an international tourist destination. Government estimates indicate that achieving these objectives will result in a 40% real growth in added value across tourism-related industries by 2030. The document anticipates an added value of ₼8.5 billion for the sector in 2027, rising to ₼12.2 billion by 2030.

The approach to achieving these goals is comprehensive. It includes the following elements: streamlining legislation and administrative procedures; creating incentives for market participants in the inbound tourism segment; attracting investment; and drawing on international experience to develop new, inclusive forms of tourism.

The implementation of the state programme is expected to strengthen the tourism sector's regional and global competitiveness, creating destinations where accommodation, transport, infrastructure, entertainment and other services are combined in a single package.

In view of the unique characteristics of the tourism industry, the programme also establishes measures to enhance public-private collaboration. A unified and coordinated tourism management model involving all relevant stakeholders will be established to ensure sound strategic planning and institutional development at both national and regional level.

Government support will be another important element of the programme. Tour operators will receive subsidies for bringing foreign tourists to the country. Subsidy mechanisms will also be introduced to offset the costs incurred by organisers of charter flights and additional scheduled services on target tourism markets. Partial compensation will be available to organisers of tourism-related events, including concerts and entertainment programmes. Support is also planned for investors in accommodation infrastructure and micro and small businesses operating in the sector. Finally, with government backing, a mechanism will be introduced to attract investment to tourism projects.

Focusing on accessibility

Many provisions of the state programme concern the development of specific tourism products, changes to the regulatory framework, the introduction of new legal mechanisms to encourage investment and the provision of incentives to private-sector participants.

It is well known that when choosing a holiday destination, foreign tourists generally pay close attention to the price of the air ticket — and flights to Azerbaijan are considerably more expensive. "Expanding air connectivity plays an important role in tourism development. The development of tourism destinations must be a collaborative effort with the aviation industry to establish new air routes," said Sean Mann, the World Bank's senior private-sector development specialist, at a forum held in July under the title "Unlocking Azerbaijan's Tourism Potential for Economic Growth and Diversification".

It is therefore unsurprising that one of the key provisions of the approved document is the expansion of the direct-flight network with foreign countries and an increase in flight frequency. The programme provides for more affordable airfares, fuller use of the potential of regional airports, the opening of new international routes and the attraction of low-cost airlines. By the end of 2030, Azerbaijan expects to launch flights to at least four new target tourism destinations and increase the frequency of existing routes by 20%.

Another priority is to strengthen the links between the tourism and aviation sectors and to improve visa arrangements. The programme is to introduce one-day, weekly and monthly packages of railway tickets, as well as discounted fares on several popular routes. Railway ticket sales will be integrated into the Global Distribution System. Conditions for operating charter flights on the Baku–Nakhchivan–Baku route will be established to improve travel arrangements to the Nakhchivan Autonomous Republic. A model is also being developed that will allow tickets for this route to be booked as part of tour packages. The Ministry of Digital Development and Transport has been instructed to prepare and submit proposals to the Cabinet of Ministers on increasing the contribution of air transport to tourism development. The aim of this initiative is to ensure that these measures are implemented as quickly as possible.

New measures are also planned to expand the list of countries whose citizens can travel to Azerbaijan without a visa and to simplify procedures further, making it easier to attract overseas visitors. These include the introduction of a new "digital traveller" visa category, visa-free travel for citizens of 34 target tourism countries on the basis of an ordinary passport, and improvements to the process for issuing multiple-entry electronic visas.

Key points

The programme's development of new destinations and improvement of existing ones is a top priority. Specifically, it provides for the creation of three new tourism and recreation zones, the opening of at least three tourism centres within them and the preparation of master plans for their development. The project will also involve the creation of eight cultural tourism products, the organisation of four domestic and one international promotional events, including festivals, the restoration of monuments in state reserves and the implementation of infrastructure projects.

A key priority is the development of a comprehensive strategy and action plan for wellness tourism. This will include the enhancement of regulations governing the accreditation of healthcare providers involved in medical tourism. In addition, at least five medical tourism providers will be encouraged to participate in international accreditation processes, and an annual wellness tourism conference will be organised. A separate provision of the state programme addresses the prospects for developing balneological tourism in the city of Naftalan.

A regulatory framework will also be created for the "Tourist Village" concept, while related infrastructure will be improved in villages with strong tourism potential. The development of sustainable tourism is to be focused on state reserves, including areas containing monuments, and in natural areas, including national parks. In order to support the development of active forms of recreation, the country will establish a professional system for guide training and safety in mountain and adventure tourism.

A practical culinary training centre is to be established in Bayil, along with an enotourism centre in Tugh that will feature visits to a winery and vineyards. The programme's objectives include organising at least one international gastronomic event, holding five festivals in selected gastronomic regions and staging four open international-level championships.

In order to streamline the inbound sector, the state programme provides for the creation and development of a Tourism Information System and the improvement and expansion of the Azerbaijan.travel digital platform. Digital information will be prepared on stops, routes, timetables and other details concerning scheduled air, rail, intercity bus and urban public transport services, as well as the metro. A list of showcase tourism sites will be compiled, with texts translated into five foreign languages, audio guides prepared and access provided through QR codes and other digital tools.

The success of the new state programme will ultimately depend less on the scale of its announced initiatives and more on how effectively they are implemented in practice. The full operation of support mechanisms for the private sector and the promotion of new destinations will not only see tourism recover its lost momentum, but could also make a considerably greater contribution to Azerbaijan's non-oil economy. "By 2030, we expect to see the emergence of a more sustainable industry model, one that is less dependent on fluctuations in individual tourism markets and external conditions."