Armenia Launches $100M Tourism and Infrastructure Project with World Bank

Armenia Embarks on Ambitious $100 Million Initiative to Boost Tourism, Infrastructure, and Regional Growth.

In a landmark decision aimed at enhancing regional development and economic resilience, the World Bank Group’s Board of Executive Directors has approved a $100 million initiative for Armenia. This comprehensive project will focus on improving access to resilient infrastructure and bolstering tourism in seven priority regions across the country, ultimately contributing to job creation, increased private investment, and long-term socio-economic growth.

A Strategic Investment in Armenia’s Future

Dubbed the Tourism and Regional Infrastructure Improvement Project, the newly approved initiative will address long-standing infrastructural and economic challenges in Armenia’s tourism sector. Over 1 million people—residents and visitors alike—are projected to benefit each year from upgraded infrastructure, enhanced services, and enriched tourism offerings.

The project’s overarching goal is to modernize infrastructure while fostering sustainable tourism in rural and regional areas, especially those that have historically lagged behind the capital city of Yerevan in terms of economic development and investment. By focusing on economic diversification, the project aligns with Armenia’s long-term vision for regional equity and prosperity.

Seven Priority Regions Set for Transformation

The seven tourism hubs that will be targeted for development under the project include:

• Areni – Known for its ancient winemaking heritage and archaeological sites.

• Dilijan – A lush, forested retreat often referred to as the "Switzerland of Armenia."

• Dvin – A historic city with significant archaeological and cultural assets.

• Goris – Renowned for its unique rock formations and medieval cave dwellings.

• Gyumri – Armenia’s second-largest city, known for its cultural landmarks and resilient community.

• Jermuk – A famed spa town with mineral springs and health tourism potential.

• Yeghegis – A scenic and historic village in the Vayots Dzor province with medieval architecture.

These areas were selected based on their tourism potential, current infrastructure gaps, and the opportunity to generate inclusive economic growth.

Infrastructure and Economic Growth Hand-in-Hand

Key components of the project include the rehabilitation of roads, improvement of urban infrastructure such as water supply and waste management, and the development of tourism facilities. The initiative will also support tourism-related businesses and services by enhancing access to professional training, marketing, and investment resources.

"By improving infrastructure and encouraging sustainable tourism, this project will not only make key destinations more attractive but will also help create jobs and drive local economic growth," said Carolin Geginat, World Bank Country Manager for Armenia.

Aligning with National and Global Development Goals

The initiative directly supports Armenia’s development strategy and is closely aligned with the World Bank’s Country Partnership Framework for the next five years. This framework emphasizes increasing exports and business competitiveness, improving human capital, and adopting environmentally sustainable practices.

In particular, the project seeks to promote disaster resilience in infrastructure planning and implementation, making tourism development more durable and adaptive in the face of climate-related and other environmental challenges.

Boosting Private Sector Involvement and Institutional Capacity

A central aspect of the project is the strengthening of institutions responsible for tourism development and infrastructure maintenance. By fostering collaboration between government bodies and the private sector, the initiative aims to stimulate entrepreneurship, attract private capital, and create a favorable ecosystem for tourism-led development.

Local businesses, artisans, and tourism operators are expected to benefit from enhanced capacity-building programs, technical support, and opportunities to integrate into broader tourism value chains. The government also plans to engage local communities in planning and decision-making processes to ensure that development is inclusive and locally relevant.

World Bank’s Continued Support to Armenia

Since Armenia joined the World Bank in 1992, the institution has provided around $3 billion in support, including loans, grants, technical assistance, and analytical services. As of 2025, the World Bank’s active portfolio in Armenia totals approximately $300 million. Notably, Armenia became a donor to the International Development Association (IDA) in 2023, marking a significant milestone in its development journey.

This new $100 million project underscores the World Bank’s ongoing commitment to helping Armenia build a prosperous, inclusive, and resilient future. With strong potential to stimulate economic activity in underserved regions and elevate Armenia’s position as a regional tourism hub, the initiative represents a bold step toward sustainable development.