World Bank urges Azerbaijan to unlock tourism for long-term economic growth

The World Bank has said Azerbaijan's long-term economic growth and job creation will increasingly depend on the development of the non-oil economy, with tourism emerging as one of the country's most promising sectors for diversification, AzerNEWS reports.

Speaking at the event "Unlocking Azerbaijan's Tourism Potential to Drive Economic Growth and Diversification" in Baku, Rolande Pryce said Azerbaijan has remained resilient to external economic shocks in recent years thanks to prudent macroeconomic management, strong fiscal reserves and sound government policies.

"Against the backdrop of a gradual decline in hydrocarbon production, the role of the non-oil sector will increase in ensuring sustainable economic growth and creating high-quality employment. In this regard, tourism is assessed as one of the areas with the greatest potential for accelerating economic growth and diversifying the economy," Pryce said.

He noted that Azerbaijan's economy expanded by 1.4% in 2025, reflecting continued declines in oil production and slower growth in the non-oil sector.

At the event, the World Bank also unveiled a roadmap outlining recommendations to accelerate tourism development and support broader economic diversification.

According to Pryce, Azerbaijan's tourism industry should evolve beyond its current focus on Baku and event-based tourism by developing a more diversified model that unlocks the economic potential of the country's regions.

He said this would require strengthening destination management, improving transport connectivity to regional areas, expanding accommodation capacity and tourism services outside the capital, supporting local entrepreneurs, investing in workforce training, and enhancing air connectivity and access to international tourism markets.

Pryce stressed that tourism can generate benefits well beyond visitor numbers by creating opportunities for local businesses, attracting investment, boosting employment—particularly for women and young people—and distributing the benefits of economic growth more evenly across Azerbaijan's regions.

He added that a stronger tourism ecosystem would also stimulate growth in transport, hospitality, agriculture, retail and small and medium-sized enterprises.

"The Azerbaijani government has already identified tourism as a strategic priority. The next key task is to translate these plans into concrete investment projects, strengthen cooperation between the public and private sectors, and increase the competitiveness of regions in the international tourism market," Pryce said.