Armenian economy: tourism boom and risk of dependence on one sector

By mid-summer 2025, Armenia registered a noticeable increase in tourist flows: improved transport links, new visa initiatives and PR campaigns bore fruit - tourism income increased, hotels and restaurants in Yerevan and the regions reported a revival. This helped partially offset the decline in some export niches and boosted employment in the services sector. However, analysts are sounding the alarm: growth is too concentrated. Expectations are too high - regional infrastructure is not always ready for mass tourism, and small businesses need investment and educational programs in order to serve guests well. Risk is a “narrow specialization” of the economy: a blow to tourism (for example, a seasonal decline, political crises) can greatly affect income. The authorities plan to invest in diversification - the development of the IT sector, agro-processing and logistics - but reformatting the economy will take years and consistent reforms. August 2025 was a reminder: success in one sector is not a substitute for long-term economic strategy.