Hotel Infrastructure in Yerevan: Benefits and Challenges

The hotel industry is a key part of Armenia's economic infrastructure, especially in Yerevan, and plays a significant role in tourism development, both directly and indirectly. This study aims to assess the strengths and weaknesses, benefits, and challenges of managing Yerevan hotels, thereby analyzing the industry's current state and proposing possible approaches to sustainable development. The study focuses on how Yerevan, an emerging urban tourism destination, can expand its hospitality industry by leveraging its unique cultural, economic, and geographical capabilities. A mixed-method strategy that combined theoretical analysis and empirical investigation was employed to accomplish this objective. The Armenian National Statistical Service, the Armenian Tourism Development Agency, and UNWTO publications were among the official sources of quantitative data. International case studies, comparative studies with other cities, and a review of academic publications all bolstered the qualitative analysis. Pricing strategies and the variety of hotel services were also examined using data from the Internet sites such as Booking.com. The results show that Yerevan has several competitive advantages, including low operating costs, a thriving tourism industry, decent wages, and a vibrant cultural environment that regularly attracts tourists. The ability to collaborate with nearby businesses also offers opportunities to improve the visitor experience and engage the community. However, challenges remain, such as seasonal income fluctuations, limited infrastructure, labor shortages, and administrative barriers. The study concludes that strategic investments in tourism infrastructure, staff training, and policy development, such as the introduction of a tourism tax, can significantly improve the performance of the hospitality sector. By integrating international best practices and focusing on sustainable development, Yerevan’s hotel industry can become a driving force for the city’s socio-economic growth and its global tourism presence.