Jafarli: Tourists Cannot Be Attracted only by Formula -1 – Reforms Required

Tourists cannot be attracted to Azerbaijan only by the conduct of the racing Formula 1, and it needs fundamental reform in this sector. Such an opinion in an interview to Chetin Sual was stated by the executive secretary of the movement Republican Alternative economist Natig Jafarli.

Formula 1 is one of the most popular types of competitions, along with football and has 500 millions of audience. The government hopes to attract the attention of foreign audiences to the country. However, at this time, as in many cases, the government harnessed the cart before the horse. That is, first it was necessary to create conditions for the development of tourism and investment flows, and then only by means of such events to attract tourists to the country. And as a result, this time the effect was low again," said Jafarli.

The country's image in the first place is created by a degree of respect for human rights, freedom of courts and other similar parameters. Azerbaijan government in most cases tries to improve the image, or rather the image of power, through sports competitions. "As a resident of this city in the days of the Formula 1 I did not see such a large number of tourists, as it can be observed in the usual routine in Georgia. This is confirmed by the number of tickets sold. According to official figures, tickets for only a total of 3 million mantas were sold, of which only 30% were purchased by foreigners. Even after the European Games in 2015 there was a decrease of flow of tourists by 10% compared to 2014. This means that only through the competition it is impossible to attract tourists," continued Jafarli.

To attract tourists, it is first necessary to simplify the visa regime. Georgia has abolished visas from 108 countries, Turkey – from 100. The tourist does not like to waste time on a visa. Azerbaijani authorities to justify the strict visa regime indicate security objectives in terms of the Karabakh conflict. However, Georgia has two conflicts, and in Turkey the situation is tense, too.

The second problem can be called a narrow list of tourist routes. The routes mastered enough are in Baku and Absheron, which can be circumvented in a single day. And where should travelers move on?

The third factor is the lack of trends of the 21^st century. The government proposes glamorous luxury hotels, but tourists of the 21^st century do not want to spend a lot of money. In Georgia, there are more than thousands of hostels and two- and three-star hotels. And in Baku there are only 2 hostels.

Fourth is the feeling of freedom atmosphere. But when a foreigner learns about the country from information resources, he is faced with egregious facts of suppressing human rights and freedoms. And about Azerbaijan there is more negative than positive information and this negative information scares tourists.

Take the border entry and exit points, where local and foreign nationals are subjected to unjustified inspections that create an impression of a closed country.

I cite the example of Georgia, because this is our competitor in the region. "If you go to the Red Bridge border on our side, then you spend hours, and on the Georgian side you spend minutes. Tourism is the area of ​​business with a high level of competition. In terms of marine tourism, we can never be rivals for Turkey. In the areas of mountainous and historical tourism, Georgia is our main competitor. This year, we expect the inflow of 6 million tourists to Georgia. It's more than the population of this country. This is a major contribution to the economy of Georgia, as according to the international travel agency, on average, each tourist spends up to $ 1,000 per week. This is influx of billions of dollars into the country and the creation of strong economic foundations. Tourism creates a multiplier effect and gives impetus to the development of other sectors of the economy," continued Jafarli.

Did the competition stimulate tourist traffic growth in Azerbaijan and are there data on the number of tourists and the expenses and revenues of the races?

In answering this question Jafarli first started with costs.

However, he drew attention to the fact that on the eve of the race Sports Minister Azad Rahimov reported on the expenditure of the organization of the games, which was about 100 million AZN.

In addition, the countries hosting competitions pay the membership fee in the amount of about 40-55 million dollars.

For example, Russia pays 52 million dollars. How much Azerbaijan paid as membership fees, no one has reported.

Even if we take the minimum amount of 40 million dollars and add it to the money spent, we get about 160-170 million AZN.

In Rahimov’s view, although the government states that in future years there will not be any expense connected with Formula 1, this will really need considerable funding.

All the same, it will be necessary to cover the new asphalt layer. Also part of the equipment and materials will be subject to damage and will need to buy a replacement. And maintenance of equipment will require funds.

In conclusion, Jafarli said that to attract investors and tourists reforms are required - Azerbaijan should join the WTO, ensure the inviolability of property, and fair justice.

"Tourists should know that if they face any problems in Azerbaijan, they can count on fair justice. However, Azerbaijan has tarnished reputation in this sense. Even the decisions of the European Court are not performed, as in the case of Ilgar Mammadov. Foreign media report on political prisoners’ cases. Therefore, if we want to attract investors and tourists, we have to respect human rights and the rule of law, and improve the image of the country," Jafarli concluded.   -0-