The World Bank has outlined the main challenges facing Azerbaijan's tourism sector, APA-Economics reports.
Speaking at the presentation of the "Azerbaijan Country Economic Memorandum – Spring 2026" report in Baku, World Bank Lead Tourism Specialist Shaun Mann said that although Azerbaijan has significant tourism potential, the main challenge is ensuring that tourism is not limited to Baku and that attractive destinations are developed across the country's regions.
According to Shaun Mann, Baku has been successfully developed as a tourism destination, but examples such as Indonesia–Bali, Peru–Machu Picchu, and Iceland–Reykjavik demonstrate that successful countries complement their main tourism hub with other destinations, encouraging visitors to extend their stay.
"The main issue is to offer tourists not only Baku, but the 'Baku+' experience. In other words, it is necessary to encourage visitors to travel to the regions and stay in the country for a longer period," he stressed.
The World Bank official noted that another structural issue in Azerbaijan's tourism market is the concentration of tourist arrivals from only a few source markets. Currently, 66% of tourists visiting the country come from just three or four countries, making the sector vulnerable to external risks.
In his opinion, the number of tourists from India, Saudi Arabia, Israel, China, Pakistan, and Türkiye has increased in recent years, while the share of visitors from traditional markets such as Russia, Georgia, Iran, and the UAE has declined. This makes it necessary to adapt tourism products to the demands of new markets.
Shaun Mann emphasized that, unlike many other sectors of the economy, tourism is a form of exports that directly brings visitors' spending into the country. He said the sector offers significant opportunities for developing small businesses in the regions and increasing employment among women and young people.
He added that, according to the World Bank's assessment, Azerbaijan still has gaps to address in terms of service quality, the diversity of services, and the overall development of the tourism ecosystem.
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