If Karabakh conflict continues, the economy of neighboring countries will also suffer loses
The situation created in Nagorno-Karabakh will have a negative impact not only on Armenia, Artsakh investments, the flow of tourists but also on our neighboring countries, as the Karabakh war can be viewed in the regional aspect. In response to the question of “Aravot” about who the war in Nagorno-Karabakh set on by Azerbaijan, which at this moment is in the ceasefire mode, will impact on Armenia and Karabakh investments and tourism, economist Ashot Yeghiazaryan said, “The war risks, naturally, have an impact on investment and tourists. The people who are planning to spend their holidays in Armenia or Artsakh, there will be some of them who will give up their plans. And the security risks have great importance for those who make investments,” said Mr. Yeghiazaryan.
Pointing to the example of Israel, the economist noted that even a state like Israel, whose security level is high, every time it substantiates what a huge share is allocated from the budget for the military expenditures, “In other words, this country wants to show that its country is safe and secure. And the investors can have long-term projects in Israel, start working without jeopardizing their investments, this means that the high level of security also means to reduce the risk for making investments.”
To our question that if the war is concluded in 4 days and will not be continued, so whether Armenia’s Artsakh’s and neighboring countries’ authority will suffer again, Mr. Yeghiazaryan said that even a 4-day war increases the risk of losing tourists and investors. In his words, “The problem is available, and there is no stability in the problem for now, naturally, there are risks. Certainly, the investors do these calculations of their risks and they rule all that.” As Ashot Yeghiazaryan said, “In such case, it is very important to know the country’s membership to a military alliance, it is, in fact, a defensive shield for given country.
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To our observation that Armenia is an EaEU member while Nagorno-Karabakh is not a member of any alliance, Mr. Yeghiazaryan reminded that Israel is not a member of any alliance too but this country by defending itself is able to provide investments or the flow of tourists. According to the data of the Ministry of Economy, the foreign investments as of January-September 2015 amounted to 296.7 million dollars, exceeding the indicator for the same period in 2014 by 80 million dollars. The investments were mainly from Switzerland, Germany, the US, Luxemburg, Argentina, the United Arab Emirates, France and so on, which were mainly focused on the mining, electricity, gas, retail and wholesale trade, agriculture, information and communication sectors.
According to the same source, last year, 192.120 1 million international tourists visited our country, one percent less than in 2014. The number of tourists has increased by about 25 percent from Iran, 38 percent from the UAE and around 5 times more from Iraq – about 16 percent, from Canada and 42 percent from the United States.
Lusine BUDAGHYAN, “Aravot” daily
