Core Strategy: Jermuk as a Tourism Destination - CAPS

I. EXECUTIVE SUMMARY
The core strategy for Jermuk is the first of four framework documents that are collectively
designed to unite the community around a shared vision of the development of Jermuk as a
centre for spa and winter tourism, to provide a road map for achieving it, and to allow the
national government and the municipality to coordinate efforts in doing so. The plan was
developed at the direction of the Government of Armenia as outlined in Government Decree
No. 1064, which designates Jermuk as a “Tourism Center”. It is consistent with and adds
direction to the goals laid out in several official documents, including The Government of
Armenia’s Program for 2008, the Government of Armenia’s 2003 Poverty Reduction Strategy
Paper, the EU Armenian Action Plan, the Jermuk City Master Plan, and the national Tourism
Development Concept Paper and supporting Tourism Development Action Plan.
A destination spa is a residential/lodging facility with the primary purpose of guiding
individual spa-goers to develop healthy habits and promote relaxation. Jermuk developed a
reputation as a spa resort on the basis of the supposed medical properties and healing
qualities of its water. Although a popular spa destination in Soviet times (when it attracted as
many as 25,000 to 30,000 tourists per year), Jermuk has fallen into decline as a result of the
fall of the Soviet Union, changing customer tastes, and a failure to invest in the town’s
facilities and infrastructure. Today estimates suggest that Jermuk attracts no more than
5,000 tourists per year. Although Jermuk recently constructed a ski slope in an attempt to
make it an attractive year-round destination and thereby decrease the town’s seasonality,
Jermuk faces stiff competition in both the spa and winter tourism industries from countries
such as Austria, Germany, and France that offer superior quality, as well as others, like the
Czech Republic, that are more competitive on cost. It also confronts an increasingly
sophisticated market with ever greater niche preferences.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis was developed for
Jermuk after extensive interviews and consultations with local and national stakeholders.
Based upon the results of the analysis, and a review of relevant literature, a strategic vision
was developed for Jermuk: to strive to become a “Center for Healthy and Active Living”,
catering to domestic and foreign tourists from Europe, the CIS, and North America (primarily
from the Armenian diaspora) who seek to adopt and/or maintain a healthy lifestyle. The
vision recognizes that Jermuk is currently, and is likely to remain, at a competitive
disadvantage vis-à-vis other, more established, spa destinations and ski resorts, and that
Jermuk will need to distinguish itself by offering a holistic tourism experience and promoting
itself as such.
The Decree of the Government of Armenia intends that implementation of this vision should
result in the following outcomes:
1) To turn Jermuk into a year-round spa resort that meets international standards
through the development of:
a. Spa and winter tourism facilities and services as an alternative to European
destinations
b. An international chess championship center
c. A pan-Armenian and international youth camp destination
d. A cultural tourism destination
2) Ensure 100,000 annual visitors
3) Increase tourism-generated incomes to USD$100 million
4) Create 4,000 additional jobs
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