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American International Journal of Business Management (AIJBM)
ISSN- 2379-106X, www.aijbm.com Volume 3, Issue 10 (October 2020), PP 01-09
*Corresponding Author: 1
Dr.Vilayat İsmayilov www.aijbm.com 1 | Page
Impact of Tourism Development in Azerbaijan on the Country's
Economy
1
Dr.Vilayat İsmayilov, 2
Nijat Musaev, 3
Aygun Samadova
1,2,3
The Azerbaijan Academy of Labour and Social Relations
*
Corresponding Author: 1
Dr. Vilayat İsmayilov
ABSTRACT:-The development of regional tourism in Azerbaijan is one of the main conditions for providing
small loans to the population of the region, along with attracting individual investors. To solve the set elements
of social infrastructure and social problems of the regions, it is important to work out various methods in the
direction of these tasks, including the shortcomings of highways and main roads, etc. Regular arrangement of
urban recreation in villages will give a serious impetus to the development of internal and external tourism in
the country, which will improve the economic situation of the village, will be reconstructed areas under threat of
collapse.
Based on the study, we can say that, compared with 2012, the cost of tickets sold to foreigners in 2018 increased
by 3,2 times, the total income of travel agencies and tour operators-1,7 times, and total expenses-1,88 times. The
development of regional tourism results with the revenue of regions citizens, with the unemployment
cancellation and with the opening new jobs. At that time there is a need for cadres with the provision of special
trained specialists. So, by providing highly skilled staff in the regional tourism not only the development of rural
economy but also the whole state economy is growing.
A balanced approach to expanding rural tourism weakens the urban burden in the tourism sector and increases
the purchasing power of tourists for tourism products.
Keywords: Regional Tourism, Regional development, infrastructure, Economic Development of the Country
I. INTRODUCTION
Economic downturn, conflicts, epidemics, etc. as usual, there were problems with the economy and
tourism, which is currently considered one of the most prosperous sectors of the world economy. Many who
expected a crash in tourism related to these factors did not take place. Busy travelers continued to travel and
relax, and individuals, businesses, and governments adapted to the situation. At this stage, an important turning
point was reached, part of which was the recognition of the sector, i.e. tourism, the importance of which was
often underestimated. Despite the above process, the demand for tourism forced people from different countries
to travel to the countries of the world where they liked to relax. In this area, one of the key places is occupied by
the main problems of the agricultural economy. Research has shown that the main problem that exists in the
agricultural economy is the support of agriculture in the regions, both at the state level, and in natural, climatic
and political conditions, since the agricultural economy directly affects the development of regional tourism.
(Aleskerova, 2015).
A tourism product is a product that is defined in advance as a set of useful tourism services that are useful
and usually include the following components: basic services, additional services, and related services. The
tourism product is sold to the client in the form of a tour, and the tour is offered to the client as a whole, as a
product of the tour operator’s activity, focused on a specific route and for specific dates.
The article discusses the problems and their consequences associated with the underdevelopment of
various types of tourism in Azerbaijan. It also analyzes the practice of countries around the world in this sector
of the economy, including in the field of tourism. One of the main indicators for the development of tourism
is the increase in the quantity and quality of local jobs in villages created to support tourism, which contributes
to the improvement of economic indicators for the development of the region and supports the increase in
wages, and the standard of living of the population.
The development of the tourism sector is a priority for almost every region of the country, but few people
can boast of real success in this direction. Meanwhile, specialists in the field of territorial development believe
that the regions need to learn how to invest and earn money on tourism using modern business tools, including
attractiveness of tourists to the regions.
Regional tourism the kind of domestic and foreign tourism is one of the main directions of the development
of agrarian economy in Azerbaijan. Regional tourism, in generally, reflects the rest of the citizens in the rural
areas and for this purpose the guest houses equipped with the special equipment are established in their own
areas of the villagers. In this case the villagers do not achieve the goal of earning income from the guest houses
in regional areas where the tourists are temporarily located.
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
Dr.Vilayat İsmayilov www.aijbm.com 2 | Page
The activity of rural residents in the regions to organize the accommodation of tourists in their own
residential areas is to provide guest houses with appropriate special equipment and equipment. This kind of
activity, i.e. the organization of the rests of tourists in the regional populations’ own areas, is one of the
entrepreneurial activities is used in different variants and this also allows to increase revenue of this kind of
activity. For this purpose the farmers who plan to get income from the entrepreneurial activities in the regional
areas and those who want to organize this kind of activity they must absolutely go through state registration.
II. LITERATURE REVIEW
The research shows that in order to develop a professional tourist specialist in the future, it is necessary to
focus on the content of the educational process, to focus it on the development of professional competence, the
development of values and attitudes to people (Natalya, 2020).
Many tourism industry companies periodically experience difficulties and are uncertain about the future. In
an ever-changing competitive business environment, the need for forecasting demand is growing, which is the
basis for effective planning. Tourism demand is expressed in terms of the number of tourists arriving from the
country of origin in the country of destination or expenses incurred in the host country. Archer B. notes that
forecasting the demand for tourism is just as important as its outcome and explains the difficulties in forecasting
the demand for tourism and the consequences of poor forecasting; it suggests different levels of demand
(Archer, 1984).
Professionals involved in the hospitality industry need to know the national characteristics of tourists, their
habits, tastes, the most acceptable forms of leisure.
The three most basic distinctions are domestic (within country of resident), outbound, and inbound
tourism. But this is rather trivial given that tourists can much more valuably be classified by their budgets as
well as by their purposes for travel aunt by their psychological propensities (Bull, 1991).
The result of the production of a tourism company is a tourism product, which is an abstract consumer
product consisting of goods that have both tangible (tourist goods, facilities, infrastructure) and intangible
(services, social environment, climatic conditions) forms. The combination of all these benefits into one concept
of “tourist product” is due to the fact that the consumer cannot satisfy a variety of recreational needs only due to
one type of tourist goods or services. This is possible only in a complex and in a specific environment.
Therefore, a tourist product should be considered as a complex of goods, as a single and indivisible whole. If
any benefits are absent in this complex, then the usefulness of the tour product may significantly decrease
(Crooch et al., 1992).
In his research, Ante S.A. wrote that to attract tourists from other countries of the world we have to act like
American gambling companies, which have achieved great success in Macau in recent years, face growing
competition from casinos appearing in Asia in order to attract Chinese high rollers and tourists (Ante et al.,
2012).
Weak development of rural tourism in Azerbaijan is due to some shortcomings in the state of economy
(İsmayilov, 2018). The rural tourism can be formed in the shape of agrarian and farmer types.
The agrarian rural tourism is intended with the intense relations activity with agriculture as a tourist. It is
necessary to take part in some holidays which is typical for those areas, to visit the historical places of the
village, to go to the museums and other special places of the village. These are directly related with the local
traditions and with the production of agricultural products.
The farmer tourism implies the various actions related with the activity of certain farms which organized in
the rural areas. The high unemployment in rural areas can be attributed to the basic reasons of development of
the farmer tourism and it leads to the development of labor productivity. As a result of the increase in
agricultural capital the lab our productivity develops (Desyatova, 2017). Thus agrarian and farmer tourism are
the similar models in their formation and development. It can be used as a synonym if needed.
In some countries in order to attract tourists to the historical places, to the historical monuments etc. located
in the rural areas and to arrange tourist travelling to picnic, to those historical places is popular and it is
considered one of the kinds of tourism.
Currently, the boundaries of the concept of “tourist infrastructure” are vague, because formulated an
integral set of essential features that distinguish this object or a class of objects (phenomena) from all similar to
them. Often, tourism infrastructure is considered as a synonym for the tourism industry, recreational
infrastructure, and the material and technical base of tourism. His uncertainty complicates the understanding of
the essence of the most important resource factor in the organization and development of tourism and recreation
activities - tourism infrastructure. It is impossible to correctly organize its statistics. We made an attempt to
summarize the methodological studies of the tourist infrastructure and formulate its concept, having previously
established the functional features, properties and composition. This uncertainty complicates the understanding
of the essence of the most important resource factor in the organization and development of tourism and
recreation activities - tourism infrastructure.
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
Dr.Vilayat İsmayilov www.aijbm.com 3 | Page
It is impossible to properly organize statistics on the infrastructure of the tourism industry in the country.
Therefore, in some studies, scientists have attempted to generalize methodological studies of tourist
infrastructure and formulate its basic concept, with the preliminary establishment of functional features,
properties and compositions of objects in this industry. The idea of the composition of the tourist infrastructure
is different, while there are complex and fragmentary options. An example of the complex composition of
tourist infrastructure: includes hotel services (the totality of all accommodation facilities for the temporary stay
of tourists), transport services (mobile transport means, stationary devices of all kinds transport, legal conditions
for passenger transportation), catering, entertainment and entertainment and sports and fitness services,
excursion services, financial services, communication facilities and systems, production of souvenirs and
handicrafts, tourism and sports products, retail, consumer services (Kosmanev, 2012).
Although the transport industry provides the link between tourism generating and destination regions the
industry's role as an agent in destination development has been largely overlooked. If the ability of tourists to
travel to preferred destinations is inhibited by inefficiencies in the transport system there is some likelihood that
they will seek alternative destinations. This paper outlines a transport cost model that identifies the significance
of transport as a factor in destination development as well as in the selection of destinations by intending tourists
(Prideaux, 2000).
And some researchers have tried to find out the possible impact of a tax on passenger transport, including a
tax on air transport, on the demand for outbound tourism from the UK. Typically, the transportation aspect of
research in tourism economics is dealt with in tourism demand literature. Authors treat transportation as a cost
which hinders demand. It is accounted for by the inclusion of proxies for transport in standard tourism demand
models with the aim to compute transport elasticities, which measure the responsiveness of demand to changes
in cost of travel (Seetaram, 2016).
The problem of service quality in tourism is one of the most urgent in the development of this sector of the
national economy. In the market of tourist services, quality of service is the most powerful weapon in the
competition. Tourists, satisfied with the service in hotels, restaurants, service bureaus, sanatoriums, tourist
complexes of various regions, become their active propagandists. They visit these places many times,
contributing to an increase in flows and creating a high reputation for the areas they like. The quality of service
significantly contributes to the economic efficiency of tourism enterprises (Fernandez, 1985).
For example in Ireland (in Irish), the tourists’ most travelling areas are considered the region that there are
ancient times monument-dolmens (stone graves) ancient graveyards–cemeteries there (Electronic resource:
https://www.google.com/ search?rlz). In Norway in the coastal area the founds-the natural tourism objects,
acting the most catalyst role in the development of rural tourism have been the most travelling area of tourists
(Electronic resource: https://www.google.com/search?rlz).
In Germany in the coastal area the founds marketing forces are more interested in reifying in the rural-
scape what tourists originating from the urban areas want to see (Balabanova, 2011). Canada can be called a
country with amazing nature and large modern cities. The neighborhood of huge megacities and wildlife
annually attracts a huge number of tourists to Canada. Be sure to visit this unique country that is simply
breathtaking (Electronic resource: https://studbooks. net/660890/turizm/ razvitie_turizma_kanade).
Tourist infrastructure in the territory of the Czech Republic is located in one of the oldest resorts in Europe-
Karlovy Vary (formerly Karlsbad). This fact testifies not only to the intrinsic value of spa treatment in the Czech
Republic, but also to the fact that this country has many years of experience serving tourists, that along with the
state tourism development program is the most important prerequisite for creating a modern tourist
infrastructure (Electronic resource: https://studbooks.Net/752244/turizm/).
Istanbul is one of the most important tourist centers in Turkey. In Istanbul, there are hundreds of hotels
and a huge variety of attractions. Istanbul- the former capital of Byzantium will find something to boast in front
of tourists. Istanbul is the home to the Hagia Sophia Museum, Topkapi Palace, the Istanbul Museum. Sofia
Cathedral attracts many tourists to Istanbul. This monument is located in the heart of the old city. The building
has gone through a lot of events. Nearby is the Topkapi Palace, which means "Palace of the Cannon Gates"
(Electronic resource: http://worldluxrealty.com/turizm-v-turcii).
III. RESEARCH METHODOLOGY
Organization of tourism development in some countries of the world
The income sector of the Italian economy, based on the use of recreational resources. Italy is the fifth
country in the world in attendance and the fourth in profit from tourism. The estimated annual income from
tourism is $ 10 million. The share in GDP is 12%. According to statistics from the UN World Tourism
Organization (UNWTO) on international tourist traffic in 2017, Italy, with 58,3 million visitors, ranked fifth
after China, the United States, Spain and France (Electronic resource: https://ru.wikipedia.org/wiki/).
Travel spending information is extremely stingy. But it is known that in the UK they make up 19% of the
average annual family budget of the British, at the same time on the second line the cost of food and housing. In
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
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Germany, a similar indicator is 16%, in France and the United States-12%. The average American family spends
about $ 4,000 a year on travel, as much as she spends on medicine or on food, drinks and tobacco combined and
twice as much as the purchase of clothing.
Established at one level, the total amount of income from international tourism does not mean its stability
in a number of regions of the world. Thus, in the last three years (2014-2016), there has been a significant
decline in revenues from international tourism in France (by 27,3%, minus $ 15,866 billion), Italy (by 11,5%,
minus $ 5,242 billion, United Kingdom (by 14,9%, minus $ 6,924 billion), Turkey (by 36.6%, minus $ 10,809
billion) and a number of other countries in the European continent and North Africa (in Egypt, the drop in
revenues from international tourism is 2,6 times) (Alexandrova, 2002).
Ferrer-Rosell, Coenders, Mateu-Figueras and Pawlowsky-Glahn study demand in a different context.
Here, in the first instant the authors analyse micro level data of tourism expenditure using a novel approach to
determine the factors influencing absolute expenditure on transportation. In the second step, they analyse the
relative importance of this expenditure compared to the budget share of other items constituting the tourism
spending. They find that characteristics such as travel group size, age, income and professional status is
important in determining the absolute expenditure on transport. However, the characteristics which influence the
budget share of transportation are education, income, country of residence, travel group and professional status.
The authors include passengers of low cost airlines only. Pricing and competition is central in the paper by
Abrate, Viglia, García and Forgas-Coll, who study the competitive behavior of high-speed trains and airlines in
a dynamic context. They provide an explanation of simultaneous price adjustments by firms in the short run
taking into account intermodal and intermodal price competition on the Rome-Milan route. The data reveal
asymmetric responses between the two modes of transport. Airline companies are found to display higher
reactions to changes in the price of the competitors than the high-speed trains. Furthermore, it is observed that
traditional carriers have independent pricing strategies while low cost airlines, consider the tactics of full service
airlines when taking decisions regarding airfares (Seetaram, 2016).
Studies show that, in general, the development of the tourism sector, including rural tourism, is considered
one of the significant and profitable areas for the state. In this direction, Azerbaijan has adopted a state program
for the development of tourism, which directly affects the development of the country's economy.
In state program it is intended the raising of socio-economic states of the regions and it is also intended the
new directions of rural tourism and the expansion of its scale all over the republic. Therefore the state should
establish its policy on the sphere of developing the rural tourism according to the traditions of the village. It is
also reasonable to organize the tourism enterprises in the rural areas using marketing strategy and to apply
medium and high income tourism sector segments as well.
IV. DATA PRESENTATION AND DISCUSSION OF RESULTS
Entrepreneurs ' interest in the direction of regional tourism development
So, looking at the number of travel agencies and the number of tour operators’ ownership type it seems that
the numbers compared to 2011 in 2017 have been increase 98 units and this increase was 2,4 times.
Of Countrywide Gross Domestic Product (GDP) the accommodation of tourists and the special weight of
public catering facilities have been 2,3% and it says that it is 5,3% increase compared to 2016 year .
According to the 2018 statistical data coming for tourism to Azerbaijan 76.619 out of 1120610 people
within the framework of rural tourism organization have been located in special places organized by
entrepreneurs in order to accommodate tourists in rural places. Compared with 2017 statistical data the increase
in this indicator is 12% and this fact expresses the entrepreneurs show high interest in the direction of regional
tourism development (The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan,
2019).
A strong economy stimulates tourism growth. The goals of the visit of tourists to Azerbaijan in 2018 show
that the share of tourists having a rest is 31%, the share for professional business is 30%, the share of wellness,
religious, and other purposes of tourists is 4%, the share of visiting relatives and friends is 24%, and the share of
uncertain goals is 11%. The share of tourist trips compared to 2000 in Azerbaijan in 2018 increased by 2159,3
thousand people and amounted to 2840,9 thousand people. And the share of free time travel in the world has
grown from 50% in 2000 to 56% in 2018.
Number of employed people by various branches of economic activity
It can be noted that the basic reason of development of regional tourism in rural areas was the high
unemployment rate and the increase of the rising structure of agricultural capital stock that leads to increase of
lab our product activity entirely influents to this fact.
However, in the condition of the globalization of the market attracting tourists to the many rural areas
(Khinaliq-in Guba, İlisu-in Qakh, Lahij-in İsmayıllı etc.) is considered the main source of income of the rural
population. Besides it, the development of rural tourism in Azerbaijan leads to the revive of various activities in
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
Dr.Vilayat İsmayilov www.aijbm.com 5 | Page
the village, at the same time it leads to evolvement of the skilled cadres for the development of agriculture.
According to the information available at the beginning of 2018 year the tendency of reduction is observed in
the number of people engaged in agriculture.
The number of employed population by the type of economic activity is given in Figure 1.
Figure 1. The number of employed population by the type of economic activity
Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019.
As sees from the information, there is a slight decrease in the number of people engaged in agriculture
compared with 2016 y. Thus, the development of rural tourism forms favorable conditions for involving of
skilled cadres for the development of agriculture and this ultimately allows for the improvement of socio-
economic development of the village.
The statistic dates show that in 2017 the participating in product development in entrepreneurial farms the
number of family members was 3665, this indicator respectively decreased by 2,58 times compared to 2013 y.,
compared to 2014 decreased by 1,80 times, compared to 2015 decreased by 1,63 times, and decreased by 1,55
times compared to 2016.
There has also been a decline in the number of employees involved outside to the mentioned farms. So that
there was a decline in 2017 compared to 2013 40, 3%; 41,8% compared to 2014; 41,5% compared to 2015 and
28% compared to 2016.
The number of individual peasant farms according to the information available at the beginning of 2018
was 955 units and there was approximately a 6 % decrease in the number of people engaged in rural tourism
organization compared to 2016 y.
It is advisable to consider the tourism in a relatively balanced approach lately. The main purpose of this
approach is that in the tourism industry urbanism loading weakens and the tourism product being diversification
enhances the purchasing power of tourists regardless of the season allow the country enables expansion of
tourism revenues.
In order to achieve these goals setting out in the tourism industry in our country, the expansion of rural
tourism is considered to be the main method. For this purpose the state has recently been doing some
purposefully work and here the main direction is considered the impact of the revival of socio-economic revival
of rural areas of the country.
At present, organization of rural tourism in our country reflects low level of competitively because this
activity area faces a number of challenges and to implement their solution is impossible without the interference
of state bodies and structures.
The reason is that the infrastructure in the village is not at the required level. So that, when the urban
residents move to rural areas they are not ready to change their life form. The limited number of stores,
kindergartens, schools and healthcare organizations as well as their remote location sharply reduces the
prospects for rapid development of rural tourism.
Besides it, not developing the regulatory-legal base of the rural tourism, investing in small quantities by the
state, leads to the low quality service for those who are resting here, and all these results not only with the
0
1000
2000
3000
4000
5000
6000
Thenumberofpeopleemployedinthe
economocsphere,thousands
Years
2005
2010
2015
2016
2017
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
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violation of hygienic conditions but also in a breach of security rules. The condition of roads in villages is also
unsatisfactory and this fact also effect to the tourist services and reduces service opportunities, at the same time,
it does not allow the elimination of obstacle in rural areas in the future. One of the main factors that hinders the
development of rural tourism is the low staffing level for working in the rural areas.
In the solution of these problems, the state has already started implementing special programs. In some
regions of our republic the surveys has been conducted individually for tourism and for the tourist attitudes. In
this surveys it was clear that the rural population’s attitude towards tourism is positive and the rural population
have no objections to staying the tourists in the rural homes.
When the owners of the home and their family members accommodate tourists in their rural homes they
should be ready for providing the tourists with relevant services. For this purpose it is important to enlighten the
rural residents in this sphere.
The reception of tourists, accommodation of tourists, bedding sets and food supply and also providing
accurate information about local traditions, provision of additional services (transportation, guide book,
translating, hunting etc.) and training on other rules are also very important.
Direction of State support for the tourism industry in Azerbaijan
State support for the tourism industry in Azerbaijan is to stimulate the needs of the population in the
services of travel agencies. As a result of the effectiveness of state tourism policy, the profitability of the
tourism industry is expanding, and its share of the national economy is growing dynamically. In connection with
these, the Shahdag winter-summer tourist complex was realized in Azerbaijan, which is one of the amazing
corners where you can enjoy breathtaking landscapes and managed by leading world companies, offers high-
quality service and is equipped with modern ski equipment.
The top 10 low-cost ski resorts in Russia and neighboring countries included 3 Russians: Belokurikha (Altai
Territory), Zavyalikha (Chelyabinsk Region), Krasnaya Sopka (Kamchatka); 1 Belarusian Logoisk (Minsk); 1
Kyrgyz Karakol (Bishkek); 1 Uzbek Chimgan (Tashkent); 1 Azerbaijan Shahdag winter-summer tourist
complex (Gusar); 1 Ukrainian Bukovel (Carpathians); 1 Georgian Bakuriani (Tbilisi) and 1 Kazakhstani
Shymbulak (Almaty).
The growth of tourist activity, measured in the number of tourists arriving in other countries and income
from their services. Since, by comparing the statistics, the number of tourists arriving in the republic in
comparison with 2005 increased 2,0 times in 2018, and the number of workers involved in tourism increased
1,82 times which is associated with the state policy to increase the level of employment (Figure 2).
Such approaches are already being applied in the public administration system of Azerbaijan at the level of
the Absheron, Ganja-Kazakh, Astara-Lenkoran and Sheki-Zakatalinsky economic zones and mountain regions
of the republic.
Figure 2. Graph of the dynamics of the activities of travel agencies
Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019.
Dynamics of development of tourist agencies in the country
To solve this task, the government of the country approved a program for the development of regional
tourism. In our opinion, one of the main ways to solve this problem is to increase the attractiveness of
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2012 2014 2015 2016 2017 2018
İndicators
Years
The cost of vouchers sold
to foreigners for traveling
in Azerbaijan, thousand
manats
Total income of travel
agencies and tour
operators, thousand
manats
Total expenses of travel
agencies and tour
operators, thousand
manats
Impact of Tourism Development in Azerbaijan on the Country's Economy
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international tourist flows. The materials presented in table 1 show that Azerbaijan, having a tourist potential,
does not sufficiently affect the attractiveness of international tourists. Since, in some countries, the growth
dynamics of international tourists in recent years has significantly decreased, for example, tourists from the
Southern Arab Emirates who take a vacation in Azerbaijan in comparison with 2018 in 2019 decreased by
27,3%, in Bargain by 29,1%, and in Iraq by 24,8%.
Table 1. Dynamics of changes in the number of international tourists, millions of people
Countries/Years 2014 2015 2016 2017 2018 2019
Russia 843,851 685,555 744,125 854,331 880,029 932,984
Georgia 699,532 571,648 506,306 538,213 610,556 725,465
İran 131,179 149,6 248,632 363,528 241,124 255,628
Turkey 314,476 288,62 313,341 301,924 291,499 316,628
Great Britain 33,563 34,892 29,514 31,751 29,417 36,914
Pakistan 1,817 2,193 3,998 17,579 41,307 46,602
İraq 0,738 2,147 62,983 62,547 67,514 50,723
Saudi Arabia 0,507 0,727 7,463 33,312 73,284 107,23
United States of
Amerika
14,543 13,208 12,291 15,178 17,516 18,787
United Arab
Amirates
0,821 2,397 53,18 102,498 94,031 68,346
Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2020.
It is necessary to organize a clear relationship between the tourism market participants and related
industries, guided by the ideas of tourism development in the above regions of the country as one of the
activities with the maximum synergistic effect. This will make it possible to work in separate departments as a
whole in order to comply with the unity of technology of the process of servicing tourists.
From the analysis of the purpose of the visit of tourists to Azerbaijan in 2018, it is clear that the share of
vacationing tourists is 31%, the share for the purpose of professional business is 30%, the share of recreational,
religious, and other purposes of tourists is 28% (Figure 3). The share of tourist trips compared to 2000 in
Azerbaijan in 2018 increased by 2159,3 thousand people and amounted to 2840,9 thousand people.
Figure 3. Distribution of foreign tourists visiting Azerbaijan for different purposes
Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019.
There are over 4253 rural residential estates in our country. The vast majority of these residential estates
are located in mountainous areas. In this regard there is potential for rural tourism development in Azerbaijan
(The State Statistical Committee of the Republic of Azerbaijan. Statistical yearbook of Azerbaijan, 2019).
In order for the rapid development of regional tourism in Azerbaijan it is considered appropriate granting
small loans for the repairing the kitchens properly and for the sanitary nodes at homes.
0
500
1000
1500
2000
2500
3000
2012 2015 2016 2017 2018
Numberoftourists,thsd.person
Years
Total for tourism
purposes,thsd. person
Number of tourists for
leisure,thsd person
Number of tourists for the
purpose of professional
business, thsd
Number of tourists for
health and religious
tourism
Impact of Tourism Development in Azerbaijan on the Country's Economy
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Granting the small loans to the rural homes, performing repair and restoration work in a short time in the
villages, preparing tourism routes, awareness- raising activities about the regional tourism among the rural
population and other such activities have a major importance for the development of regional tourism.
V. CONCLUSION
It follows from the above article that the projects. the development of the tourism industry, especially
regional tourism, should mainly cover the following goals:
1. Activating the rural communities in the fight against emigration.
2. To achieve an increase in the specific weight of tourism revenues, directly in the share of regional
tourism.
3. Diversification of tourism products due to the introduction of new privatized tourism market segments
along with other tourist sights.
4. Hospitality of rural residents, using special products that correspond to the traditions of this region.
5. Strengthening, storage the traditional state of life and culture, at the same time protection and
conservation of nature and anthropogenic environment.
Generally, the rural tourism in Azerbaijan covers “typical” socio-economic objectives in the development
of agriculture. The rural tourism doesn’t serve for the alternative quality of traditional rural activity, but serves
for the additional source of income directed to daily activities.
The regular arrangement of city residents’ rest in villages will give a serious impetus to the development
domestic and foreign tourism and as a result the economic situation of the village improves, rural area with
threat of disintegration are being renovated.
The development of rural tourism results with the revenue of regions citizens, with the unemployment
cancellation and with the opening new jobs. At that time there is a need for cadres with the provision of special
trained specialists. So, by providing highly skilled staff in the rural tourism not only the development of rural
economy but also the whole state economy is growing.
BIBLOGRAPHY
[1]. Aleskerova Yu.V. Economy agriculture of the country: Myanmar. The Journal of Economoc Sciences:
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[2]. Alexandrov A.Yu. International tourism. Moscow. 2002, p.337
[3]. Bull A. The economics of travel and tourism. Pitman, Melbourne, 1991.
[4]. Desyatova N.N. Organization of rural Tourism. Nobility KYU. 2017. P. 118
[5]. Crooch J.E., Shuls L., Valeric P. International tourism marketing in Australia regressional analysis.
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[7]. Kaul R.N. Dynamics of tourism. A trilogy. New Delhi etc., Sterling, 1985
[8]. Natalya V. Professional mobility of future tourism specialists. The Journal of Economoc Sciences:
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[10]. Walters S.R. Travel Industry World Yearbook. The Big Picture. 1985.
[11]. The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019: p.98
[12]. Archer В. Н. (1984). Economic impact; Misleading multiplier. Annals of Tourism Research,
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[13]. Ante S. E., Berzon A. (2012).Gambling industry best virtual money turns real. Wall Street Journal,
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[15]. İsmayilov V. İ. (2018) Development prospects of agrotourism in Azerbaijan. Journal Kasmera.
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[16]. Kocmanev A.L. (2012), Bulletin of the Voronezh State University, №2, pp.5-12
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Transportation Economics, Special Issue on Tourism and Transport, 26(1), pp. 27-36.
[20]. https//www.stat.gov.az
Impact of Tourism Development in Azerbaijan on the Country's Economy
*Corresponding Author: 1
Dr.Vilayat İsmayilov www.aijbm.com 9 | Page
[21]. https://www.google.com/search?q=развитие+туризма+в+италии&rlz
[22]. https://www.google.com/search?rlz=1C1GGRV_enAZ818AZ818&ei=VPoIXaCg
BceIk74Pq_P6Ao&q=развитие+туризма+в+ирландии&oq=развитие+туризма+в+ирл&gs_l= psy-
ab.
[23]. https://www.google.com/search?rlz=1C1GGRV_enAZ818AZ818&ei=1voIXajgFo_16QTv_aXQDQ&
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[24]. https://www.google.com/search?rlz=1C1GGRV_enAZ818AZ818&ei=F_sIXam4Aof16QSAyKboAg&
q=развитие+туризма+в+россии&oq=развитие+туризма+в+ро&gs_l=psy-ab.
[25]. https://www.google.com/search?q=социально-экономическое+ развитие+регионов + азербайджана
& rlz
[26]. https://studbooks.net/660890/turizm/razvitie_turizma_kanade
[27]. https://studbooks.net/752244/turizm/razvitie_turisticheskogo_rynka_chehii
[28]. http://worldluxrealty.com/turizm-v-turcii-razvitie-turizma-v-tureckoy-respublike
[29]. https://ru.wikipedia.org/wiki/Turizm_v_İtalii
*
Corresponding Author: 1
Dr. Vilayat İsmayilov
1,2,3
The Azerbaijan Academy of Labour and Social Relations

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A3100109

  • 1. American International Journal of Business Management (AIJBM) ISSN- 2379-106X, www.aijbm.com Volume 3, Issue 10 (October 2020), PP 01-09 *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 1 | Page Impact of Tourism Development in Azerbaijan on the Country's Economy 1 Dr.Vilayat İsmayilov, 2 Nijat Musaev, 3 Aygun Samadova 1,2,3 The Azerbaijan Academy of Labour and Social Relations * Corresponding Author: 1 Dr. Vilayat İsmayilov ABSTRACT:-The development of regional tourism in Azerbaijan is one of the main conditions for providing small loans to the population of the region, along with attracting individual investors. To solve the set elements of social infrastructure and social problems of the regions, it is important to work out various methods in the direction of these tasks, including the shortcomings of highways and main roads, etc. Regular arrangement of urban recreation in villages will give a serious impetus to the development of internal and external tourism in the country, which will improve the economic situation of the village, will be reconstructed areas under threat of collapse. Based on the study, we can say that, compared with 2012, the cost of tickets sold to foreigners in 2018 increased by 3,2 times, the total income of travel agencies and tour operators-1,7 times, and total expenses-1,88 times. The development of regional tourism results with the revenue of regions citizens, with the unemployment cancellation and with the opening new jobs. At that time there is a need for cadres with the provision of special trained specialists. So, by providing highly skilled staff in the regional tourism not only the development of rural economy but also the whole state economy is growing. A balanced approach to expanding rural tourism weakens the urban burden in the tourism sector and increases the purchasing power of tourists for tourism products. Keywords: Regional Tourism, Regional development, infrastructure, Economic Development of the Country I. INTRODUCTION Economic downturn, conflicts, epidemics, etc. as usual, there were problems with the economy and tourism, which is currently considered one of the most prosperous sectors of the world economy. Many who expected a crash in tourism related to these factors did not take place. Busy travelers continued to travel and relax, and individuals, businesses, and governments adapted to the situation. At this stage, an important turning point was reached, part of which was the recognition of the sector, i.e. tourism, the importance of which was often underestimated. Despite the above process, the demand for tourism forced people from different countries to travel to the countries of the world where they liked to relax. In this area, one of the key places is occupied by the main problems of the agricultural economy. Research has shown that the main problem that exists in the agricultural economy is the support of agriculture in the regions, both at the state level, and in natural, climatic and political conditions, since the agricultural economy directly affects the development of regional tourism. (Aleskerova, 2015). A tourism product is a product that is defined in advance as a set of useful tourism services that are useful and usually include the following components: basic services, additional services, and related services. The tourism product is sold to the client in the form of a tour, and the tour is offered to the client as a whole, as a product of the tour operator’s activity, focused on a specific route and for specific dates. The article discusses the problems and their consequences associated with the underdevelopment of various types of tourism in Azerbaijan. It also analyzes the practice of countries around the world in this sector of the economy, including in the field of tourism. One of the main indicators for the development of tourism is the increase in the quantity and quality of local jobs in villages created to support tourism, which contributes to the improvement of economic indicators for the development of the region and supports the increase in wages, and the standard of living of the population. The development of the tourism sector is a priority for almost every region of the country, but few people can boast of real success in this direction. Meanwhile, specialists in the field of territorial development believe that the regions need to learn how to invest and earn money on tourism using modern business tools, including attractiveness of tourists to the regions. Regional tourism the kind of domestic and foreign tourism is one of the main directions of the development of agrarian economy in Azerbaijan. Regional tourism, in generally, reflects the rest of the citizens in the rural areas and for this purpose the guest houses equipped with the special equipment are established in their own areas of the villagers. In this case the villagers do not achieve the goal of earning income from the guest houses in regional areas where the tourists are temporarily located.
  • 2. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 2 | Page The activity of rural residents in the regions to organize the accommodation of tourists in their own residential areas is to provide guest houses with appropriate special equipment and equipment. This kind of activity, i.e. the organization of the rests of tourists in the regional populations’ own areas, is one of the entrepreneurial activities is used in different variants and this also allows to increase revenue of this kind of activity. For this purpose the farmers who plan to get income from the entrepreneurial activities in the regional areas and those who want to organize this kind of activity they must absolutely go through state registration. II. LITERATURE REVIEW The research shows that in order to develop a professional tourist specialist in the future, it is necessary to focus on the content of the educational process, to focus it on the development of professional competence, the development of values and attitudes to people (Natalya, 2020). Many tourism industry companies periodically experience difficulties and are uncertain about the future. In an ever-changing competitive business environment, the need for forecasting demand is growing, which is the basis for effective planning. Tourism demand is expressed in terms of the number of tourists arriving from the country of origin in the country of destination or expenses incurred in the host country. Archer B. notes that forecasting the demand for tourism is just as important as its outcome and explains the difficulties in forecasting the demand for tourism and the consequences of poor forecasting; it suggests different levels of demand (Archer, 1984). Professionals involved in the hospitality industry need to know the national characteristics of tourists, their habits, tastes, the most acceptable forms of leisure. The three most basic distinctions are domestic (within country of resident), outbound, and inbound tourism. But this is rather trivial given that tourists can much more valuably be classified by their budgets as well as by their purposes for travel aunt by their psychological propensities (Bull, 1991). The result of the production of a tourism company is a tourism product, which is an abstract consumer product consisting of goods that have both tangible (tourist goods, facilities, infrastructure) and intangible (services, social environment, climatic conditions) forms. The combination of all these benefits into one concept of “tourist product” is due to the fact that the consumer cannot satisfy a variety of recreational needs only due to one type of tourist goods or services. This is possible only in a complex and in a specific environment. Therefore, a tourist product should be considered as a complex of goods, as a single and indivisible whole. If any benefits are absent in this complex, then the usefulness of the tour product may significantly decrease (Crooch et al., 1992). In his research, Ante S.A. wrote that to attract tourists from other countries of the world we have to act like American gambling companies, which have achieved great success in Macau in recent years, face growing competition from casinos appearing in Asia in order to attract Chinese high rollers and tourists (Ante et al., 2012). Weak development of rural tourism in Azerbaijan is due to some shortcomings in the state of economy (İsmayilov, 2018). The rural tourism can be formed in the shape of agrarian and farmer types. The agrarian rural tourism is intended with the intense relations activity with agriculture as a tourist. It is necessary to take part in some holidays which is typical for those areas, to visit the historical places of the village, to go to the museums and other special places of the village. These are directly related with the local traditions and with the production of agricultural products. The farmer tourism implies the various actions related with the activity of certain farms which organized in the rural areas. The high unemployment in rural areas can be attributed to the basic reasons of development of the farmer tourism and it leads to the development of labor productivity. As a result of the increase in agricultural capital the lab our productivity develops (Desyatova, 2017). Thus agrarian and farmer tourism are the similar models in their formation and development. It can be used as a synonym if needed. In some countries in order to attract tourists to the historical places, to the historical monuments etc. located in the rural areas and to arrange tourist travelling to picnic, to those historical places is popular and it is considered one of the kinds of tourism. Currently, the boundaries of the concept of “tourist infrastructure” are vague, because formulated an integral set of essential features that distinguish this object or a class of objects (phenomena) from all similar to them. Often, tourism infrastructure is considered as a synonym for the tourism industry, recreational infrastructure, and the material and technical base of tourism. His uncertainty complicates the understanding of the essence of the most important resource factor in the organization and development of tourism and recreation activities - tourism infrastructure. It is impossible to correctly organize its statistics. We made an attempt to summarize the methodological studies of the tourist infrastructure and formulate its concept, having previously established the functional features, properties and composition. This uncertainty complicates the understanding of the essence of the most important resource factor in the organization and development of tourism and recreation activities - tourism infrastructure.
  • 3. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 3 | Page It is impossible to properly organize statistics on the infrastructure of the tourism industry in the country. Therefore, in some studies, scientists have attempted to generalize methodological studies of tourist infrastructure and formulate its basic concept, with the preliminary establishment of functional features, properties and compositions of objects in this industry. The idea of the composition of the tourist infrastructure is different, while there are complex and fragmentary options. An example of the complex composition of tourist infrastructure: includes hotel services (the totality of all accommodation facilities for the temporary stay of tourists), transport services (mobile transport means, stationary devices of all kinds transport, legal conditions for passenger transportation), catering, entertainment and entertainment and sports and fitness services, excursion services, financial services, communication facilities and systems, production of souvenirs and handicrafts, tourism and sports products, retail, consumer services (Kosmanev, 2012). Although the transport industry provides the link between tourism generating and destination regions the industry's role as an agent in destination development has been largely overlooked. If the ability of tourists to travel to preferred destinations is inhibited by inefficiencies in the transport system there is some likelihood that they will seek alternative destinations. This paper outlines a transport cost model that identifies the significance of transport as a factor in destination development as well as in the selection of destinations by intending tourists (Prideaux, 2000). And some researchers have tried to find out the possible impact of a tax on passenger transport, including a tax on air transport, on the demand for outbound tourism from the UK. Typically, the transportation aspect of research in tourism economics is dealt with in tourism demand literature. Authors treat transportation as a cost which hinders demand. It is accounted for by the inclusion of proxies for transport in standard tourism demand models with the aim to compute transport elasticities, which measure the responsiveness of demand to changes in cost of travel (Seetaram, 2016). The problem of service quality in tourism is one of the most urgent in the development of this sector of the national economy. In the market of tourist services, quality of service is the most powerful weapon in the competition. Tourists, satisfied with the service in hotels, restaurants, service bureaus, sanatoriums, tourist complexes of various regions, become their active propagandists. They visit these places many times, contributing to an increase in flows and creating a high reputation for the areas they like. The quality of service significantly contributes to the economic efficiency of tourism enterprises (Fernandez, 1985). For example in Ireland (in Irish), the tourists’ most travelling areas are considered the region that there are ancient times monument-dolmens (stone graves) ancient graveyards–cemeteries there (Electronic resource: https://www.google.com/ search?rlz). In Norway in the coastal area the founds-the natural tourism objects, acting the most catalyst role in the development of rural tourism have been the most travelling area of tourists (Electronic resource: https://www.google.com/search?rlz). In Germany in the coastal area the founds marketing forces are more interested in reifying in the rural- scape what tourists originating from the urban areas want to see (Balabanova, 2011). Canada can be called a country with amazing nature and large modern cities. The neighborhood of huge megacities and wildlife annually attracts a huge number of tourists to Canada. Be sure to visit this unique country that is simply breathtaking (Electronic resource: https://studbooks. net/660890/turizm/ razvitie_turizma_kanade). Tourist infrastructure in the territory of the Czech Republic is located in one of the oldest resorts in Europe- Karlovy Vary (formerly Karlsbad). This fact testifies not only to the intrinsic value of spa treatment in the Czech Republic, but also to the fact that this country has many years of experience serving tourists, that along with the state tourism development program is the most important prerequisite for creating a modern tourist infrastructure (Electronic resource: https://studbooks.Net/752244/turizm/). Istanbul is one of the most important tourist centers in Turkey. In Istanbul, there are hundreds of hotels and a huge variety of attractions. Istanbul- the former capital of Byzantium will find something to boast in front of tourists. Istanbul is the home to the Hagia Sophia Museum, Topkapi Palace, the Istanbul Museum. Sofia Cathedral attracts many tourists to Istanbul. This monument is located in the heart of the old city. The building has gone through a lot of events. Nearby is the Topkapi Palace, which means "Palace of the Cannon Gates" (Electronic resource: http://worldluxrealty.com/turizm-v-turcii). III. RESEARCH METHODOLOGY Organization of tourism development in some countries of the world The income sector of the Italian economy, based on the use of recreational resources. Italy is the fifth country in the world in attendance and the fourth in profit from tourism. The estimated annual income from tourism is $ 10 million. The share in GDP is 12%. According to statistics from the UN World Tourism Organization (UNWTO) on international tourist traffic in 2017, Italy, with 58,3 million visitors, ranked fifth after China, the United States, Spain and France (Electronic resource: https://ru.wikipedia.org/wiki/). Travel spending information is extremely stingy. But it is known that in the UK they make up 19% of the average annual family budget of the British, at the same time on the second line the cost of food and housing. In
  • 4. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 4 | Page Germany, a similar indicator is 16%, in France and the United States-12%. The average American family spends about $ 4,000 a year on travel, as much as she spends on medicine or on food, drinks and tobacco combined and twice as much as the purchase of clothing. Established at one level, the total amount of income from international tourism does not mean its stability in a number of regions of the world. Thus, in the last three years (2014-2016), there has been a significant decline in revenues from international tourism in France (by 27,3%, minus $ 15,866 billion), Italy (by 11,5%, minus $ 5,242 billion, United Kingdom (by 14,9%, minus $ 6,924 billion), Turkey (by 36.6%, minus $ 10,809 billion) and a number of other countries in the European continent and North Africa (in Egypt, the drop in revenues from international tourism is 2,6 times) (Alexandrova, 2002). Ferrer-Rosell, Coenders, Mateu-Figueras and Pawlowsky-Glahn study demand in a different context. Here, in the first instant the authors analyse micro level data of tourism expenditure using a novel approach to determine the factors influencing absolute expenditure on transportation. In the second step, they analyse the relative importance of this expenditure compared to the budget share of other items constituting the tourism spending. They find that characteristics such as travel group size, age, income and professional status is important in determining the absolute expenditure on transport. However, the characteristics which influence the budget share of transportation are education, income, country of residence, travel group and professional status. The authors include passengers of low cost airlines only. Pricing and competition is central in the paper by Abrate, Viglia, García and Forgas-Coll, who study the competitive behavior of high-speed trains and airlines in a dynamic context. They provide an explanation of simultaneous price adjustments by firms in the short run taking into account intermodal and intermodal price competition on the Rome-Milan route. The data reveal asymmetric responses between the two modes of transport. Airline companies are found to display higher reactions to changes in the price of the competitors than the high-speed trains. Furthermore, it is observed that traditional carriers have independent pricing strategies while low cost airlines, consider the tactics of full service airlines when taking decisions regarding airfares (Seetaram, 2016). Studies show that, in general, the development of the tourism sector, including rural tourism, is considered one of the significant and profitable areas for the state. In this direction, Azerbaijan has adopted a state program for the development of tourism, which directly affects the development of the country's economy. In state program it is intended the raising of socio-economic states of the regions and it is also intended the new directions of rural tourism and the expansion of its scale all over the republic. Therefore the state should establish its policy on the sphere of developing the rural tourism according to the traditions of the village. It is also reasonable to organize the tourism enterprises in the rural areas using marketing strategy and to apply medium and high income tourism sector segments as well. IV. DATA PRESENTATION AND DISCUSSION OF RESULTS Entrepreneurs ' interest in the direction of regional tourism development So, looking at the number of travel agencies and the number of tour operators’ ownership type it seems that the numbers compared to 2011 in 2017 have been increase 98 units and this increase was 2,4 times. Of Countrywide Gross Domestic Product (GDP) the accommodation of tourists and the special weight of public catering facilities have been 2,3% and it says that it is 5,3% increase compared to 2016 year . According to the 2018 statistical data coming for tourism to Azerbaijan 76.619 out of 1120610 people within the framework of rural tourism organization have been located in special places organized by entrepreneurs in order to accommodate tourists in rural places. Compared with 2017 statistical data the increase in this indicator is 12% and this fact expresses the entrepreneurs show high interest in the direction of regional tourism development (The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019). A strong economy stimulates tourism growth. The goals of the visit of tourists to Azerbaijan in 2018 show that the share of tourists having a rest is 31%, the share for professional business is 30%, the share of wellness, religious, and other purposes of tourists is 4%, the share of visiting relatives and friends is 24%, and the share of uncertain goals is 11%. The share of tourist trips compared to 2000 in Azerbaijan in 2018 increased by 2159,3 thousand people and amounted to 2840,9 thousand people. And the share of free time travel in the world has grown from 50% in 2000 to 56% in 2018. Number of employed people by various branches of economic activity It can be noted that the basic reason of development of regional tourism in rural areas was the high unemployment rate and the increase of the rising structure of agricultural capital stock that leads to increase of lab our product activity entirely influents to this fact. However, in the condition of the globalization of the market attracting tourists to the many rural areas (Khinaliq-in Guba, İlisu-in Qakh, Lahij-in İsmayıllı etc.) is considered the main source of income of the rural population. Besides it, the development of rural tourism in Azerbaijan leads to the revive of various activities in
  • 5. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 5 | Page the village, at the same time it leads to evolvement of the skilled cadres for the development of agriculture. According to the information available at the beginning of 2018 year the tendency of reduction is observed in the number of people engaged in agriculture. The number of employed population by the type of economic activity is given in Figure 1. Figure 1. The number of employed population by the type of economic activity Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019. As sees from the information, there is a slight decrease in the number of people engaged in agriculture compared with 2016 y. Thus, the development of rural tourism forms favorable conditions for involving of skilled cadres for the development of agriculture and this ultimately allows for the improvement of socio- economic development of the village. The statistic dates show that in 2017 the participating in product development in entrepreneurial farms the number of family members was 3665, this indicator respectively decreased by 2,58 times compared to 2013 y., compared to 2014 decreased by 1,80 times, compared to 2015 decreased by 1,63 times, and decreased by 1,55 times compared to 2016. There has also been a decline in the number of employees involved outside to the mentioned farms. So that there was a decline in 2017 compared to 2013 40, 3%; 41,8% compared to 2014; 41,5% compared to 2015 and 28% compared to 2016. The number of individual peasant farms according to the information available at the beginning of 2018 was 955 units and there was approximately a 6 % decrease in the number of people engaged in rural tourism organization compared to 2016 y. It is advisable to consider the tourism in a relatively balanced approach lately. The main purpose of this approach is that in the tourism industry urbanism loading weakens and the tourism product being diversification enhances the purchasing power of tourists regardless of the season allow the country enables expansion of tourism revenues. In order to achieve these goals setting out in the tourism industry in our country, the expansion of rural tourism is considered to be the main method. For this purpose the state has recently been doing some purposefully work and here the main direction is considered the impact of the revival of socio-economic revival of rural areas of the country. At present, organization of rural tourism in our country reflects low level of competitively because this activity area faces a number of challenges and to implement their solution is impossible without the interference of state bodies and structures. The reason is that the infrastructure in the village is not at the required level. So that, when the urban residents move to rural areas they are not ready to change their life form. The limited number of stores, kindergartens, schools and healthcare organizations as well as their remote location sharply reduces the prospects for rapid development of rural tourism. Besides it, not developing the regulatory-legal base of the rural tourism, investing in small quantities by the state, leads to the low quality service for those who are resting here, and all these results not only with the 0 1000 2000 3000 4000 5000 6000 Thenumberofpeopleemployedinthe economocsphere,thousands Years 2005 2010 2015 2016 2017
  • 6. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 6 | Page violation of hygienic conditions but also in a breach of security rules. The condition of roads in villages is also unsatisfactory and this fact also effect to the tourist services and reduces service opportunities, at the same time, it does not allow the elimination of obstacle in rural areas in the future. One of the main factors that hinders the development of rural tourism is the low staffing level for working in the rural areas. In the solution of these problems, the state has already started implementing special programs. In some regions of our republic the surveys has been conducted individually for tourism and for the tourist attitudes. In this surveys it was clear that the rural population’s attitude towards tourism is positive and the rural population have no objections to staying the tourists in the rural homes. When the owners of the home and their family members accommodate tourists in their rural homes they should be ready for providing the tourists with relevant services. For this purpose it is important to enlighten the rural residents in this sphere. The reception of tourists, accommodation of tourists, bedding sets and food supply and also providing accurate information about local traditions, provision of additional services (transportation, guide book, translating, hunting etc.) and training on other rules are also very important. Direction of State support for the tourism industry in Azerbaijan State support for the tourism industry in Azerbaijan is to stimulate the needs of the population in the services of travel agencies. As a result of the effectiveness of state tourism policy, the profitability of the tourism industry is expanding, and its share of the national economy is growing dynamically. In connection with these, the Shahdag winter-summer tourist complex was realized in Azerbaijan, which is one of the amazing corners where you can enjoy breathtaking landscapes and managed by leading world companies, offers high- quality service and is equipped with modern ski equipment. The top 10 low-cost ski resorts in Russia and neighboring countries included 3 Russians: Belokurikha (Altai Territory), Zavyalikha (Chelyabinsk Region), Krasnaya Sopka (Kamchatka); 1 Belarusian Logoisk (Minsk); 1 Kyrgyz Karakol (Bishkek); 1 Uzbek Chimgan (Tashkent); 1 Azerbaijan Shahdag winter-summer tourist complex (Gusar); 1 Ukrainian Bukovel (Carpathians); 1 Georgian Bakuriani (Tbilisi) and 1 Kazakhstani Shymbulak (Almaty). The growth of tourist activity, measured in the number of tourists arriving in other countries and income from their services. Since, by comparing the statistics, the number of tourists arriving in the republic in comparison with 2005 increased 2,0 times in 2018, and the number of workers involved in tourism increased 1,82 times which is associated with the state policy to increase the level of employment (Figure 2). Such approaches are already being applied in the public administration system of Azerbaijan at the level of the Absheron, Ganja-Kazakh, Astara-Lenkoran and Sheki-Zakatalinsky economic zones and mountain regions of the republic. Figure 2. Graph of the dynamics of the activities of travel agencies Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019. Dynamics of development of tourist agencies in the country To solve this task, the government of the country approved a program for the development of regional tourism. In our opinion, one of the main ways to solve this problem is to increase the attractiveness of 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2012 2014 2015 2016 2017 2018 İndicators Years The cost of vouchers sold to foreigners for traveling in Azerbaijan, thousand manats Total income of travel agencies and tour operators, thousand manats Total expenses of travel agencies and tour operators, thousand manats
  • 7. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 7 | Page international tourist flows. The materials presented in table 1 show that Azerbaijan, having a tourist potential, does not sufficiently affect the attractiveness of international tourists. Since, in some countries, the growth dynamics of international tourists in recent years has significantly decreased, for example, tourists from the Southern Arab Emirates who take a vacation in Azerbaijan in comparison with 2018 in 2019 decreased by 27,3%, in Bargain by 29,1%, and in Iraq by 24,8%. Table 1. Dynamics of changes in the number of international tourists, millions of people Countries/Years 2014 2015 2016 2017 2018 2019 Russia 843,851 685,555 744,125 854,331 880,029 932,984 Georgia 699,532 571,648 506,306 538,213 610,556 725,465 İran 131,179 149,6 248,632 363,528 241,124 255,628 Turkey 314,476 288,62 313,341 301,924 291,499 316,628 Great Britain 33,563 34,892 29,514 31,751 29,417 36,914 Pakistan 1,817 2,193 3,998 17,579 41,307 46,602 İraq 0,738 2,147 62,983 62,547 67,514 50,723 Saudi Arabia 0,507 0,727 7,463 33,312 73,284 107,23 United States of Amerika 14,543 13,208 12,291 15,178 17,516 18,787 United Arab Amirates 0,821 2,397 53,18 102,498 94,031 68,346 Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2020. It is necessary to organize a clear relationship between the tourism market participants and related industries, guided by the ideas of tourism development in the above regions of the country as one of the activities with the maximum synergistic effect. This will make it possible to work in separate departments as a whole in order to comply with the unity of technology of the process of servicing tourists. From the analysis of the purpose of the visit of tourists to Azerbaijan in 2018, it is clear that the share of vacationing tourists is 31%, the share for the purpose of professional business is 30%, the share of recreational, religious, and other purposes of tourists is 28% (Figure 3). The share of tourist trips compared to 2000 in Azerbaijan in 2018 increased by 2159,3 thousand people and amounted to 2840,9 thousand people. Figure 3. Distribution of foreign tourists visiting Azerbaijan for different purposes Source: The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019. There are over 4253 rural residential estates in our country. The vast majority of these residential estates are located in mountainous areas. In this regard there is potential for rural tourism development in Azerbaijan (The State Statistical Committee of the Republic of Azerbaijan. Statistical yearbook of Azerbaijan, 2019). In order for the rapid development of regional tourism in Azerbaijan it is considered appropriate granting small loans for the repairing the kitchens properly and for the sanitary nodes at homes. 0 500 1000 1500 2000 2500 3000 2012 2015 2016 2017 2018 Numberoftourists,thsd.person Years Total for tourism purposes,thsd. person Number of tourists for leisure,thsd person Number of tourists for the purpose of professional business, thsd Number of tourists for health and religious tourism
  • 8. Impact of Tourism Development in Azerbaijan on the Country's Economy *Corresponding Author: 1 Dr.Vilayat İsmayilov www.aijbm.com 8 | Page Granting the small loans to the rural homes, performing repair and restoration work in a short time in the villages, preparing tourism routes, awareness- raising activities about the regional tourism among the rural population and other such activities have a major importance for the development of regional tourism. V. CONCLUSION It follows from the above article that the projects. the development of the tourism industry, especially regional tourism, should mainly cover the following goals: 1. Activating the rural communities in the fight against emigration. 2. To achieve an increase in the specific weight of tourism revenues, directly in the share of regional tourism. 3. Diversification of tourism products due to the introduction of new privatized tourism market segments along with other tourist sights. 4. Hospitality of rural residents, using special products that correspond to the traditions of this region. 5. Strengthening, storage the traditional state of life and culture, at the same time protection and conservation of nature and anthropogenic environment. Generally, the rural tourism in Azerbaijan covers “typical” socio-economic objectives in the development of agriculture. The rural tourism doesn’t serve for the alternative quality of traditional rural activity, but serves for the additional source of income directed to daily activities. The regular arrangement of city residents’ rest in villages will give a serious impetus to the development domestic and foreign tourism and as a result the economic situation of the village improves, rural area with threat of disintegration are being renovated. The development of rural tourism results with the revenue of regions citizens, with the unemployment cancellation and with the opening new jobs. At that time there is a need for cadres with the provision of special trained specialists. So, by providing highly skilled staff in the rural tourism not only the development of rural economy but also the whole state economy is growing. BIBLOGRAPHY [1]. Aleskerova Yu.V. Economy agriculture of the country: Myanmar. The Journal of Economoc Sciences: Theory and Practice. Baku. 2015, p.24-31 [2]. Alexandrov A.Yu. International tourism. Moscow. 2002, p.337 [3]. Bull A. The economics of travel and tourism. Pitman, Melbourne, 1991. [4]. Desyatova N.N. Organization of rural Tourism. Nobility KYU. 2017. P. 118 [5]. Crooch J.E., Shuls L., Valeric P. International tourism marketing in Australia regressional analysis. Heineman, Batterwars, 1992. 165 . [6]. Fernandez faster L. Introduccion a la teoria у tekmica del turismo, Alizanza, Editorial, Madrid, 1985. [7]. Kaul R.N. Dynamics of tourism. A trilogy. New Delhi etc., Sterling, 1985 [8]. Natalya V. Professional mobility of future tourism specialists. The Journal of Economoc Sciences: Theory and Practice. Baku. 2020, p.40-52 [9]. İsupova L. V. Agrotourism: experience, problems, solutions. Materials İnternational scientific practical conference. Saratov. 2012. p. 74 [10]. Walters S.R. Travel Industry World Yearbook. The Big Picture. 1985. [11]. The State Statistical Committee of the Republic of Azerbaijan. Tourism in Azerbaijan, 2019: p.98 [12]. Archer В. Н. (1984). Economic impact; Misleading multiplier. Annals of Tourism Research, 11(3).517-518. [13]. Ante S. E., Berzon A. (2012).Gambling industry best virtual money turns real. Wall Street Journal, 12(4). [14]. Balabanova A.A. (2011) The main features of rural tourism in Germany. European researcher. №1. P. 57-59 [15]. İsmayilov V. İ. (2018) Development prospects of agrotourism in Azerbaijan. Journal Kasmera. Venesuela. №46 (2). P.2-6 [16]. Kocmanev A.L. (2012), Bulletin of the Voronezh State University, №2, pp.5-12 [17]. Prideaux, B. (2000). The role of the transport system in destination development. Tourism Management, 21 (1), pp. 53-63. [18]. Seetaram N. (2016), “Introduction” Tourism Economics, Special Issue: Tourism and Transport, 22(1), pp 203-206 [19]. Seetaram N. (2010). “Computing Airfare Elasticities or Opening Pandora’s Box” Research in Transportation Economics, Special Issue on Tourism and Transport, 26(1), pp. 27-36. [20]. https//www.stat.gov.az
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