By Siranush Adamyan
The Armenian government has tightened regulations for tour operators and agencies, citing instances of fraud and other issues within the sector. However, tour operators reject the government’s justifications, arguing that the new rules will harm their industry.
On January 23, the government approved a new decision on tourism that imposes stricter requirements on tour operators and agencies. For instance, the head of a tour company must now have at least three years of professional experience in the field, a degree in tourism (or a higher education degree in another field), and, if offering online services, a regularly updated website containing several legally mandated details.
The government also requires tour companies to employ at least one staff member under an open-ended employment contract in addition to the company director.
When presenting the decision during the January 23 cabinet meeting, Minister of Economy Gevorg Papoyan highlighted complaints from tourists deceived by tour operators.
“Tourists often encounter situations where the advertised service differs entirely from what they actually receive. In recent years, we’ve seen cases ranging from tourists being taken abroad and left stranded to agencies collecting hundreds of thousands of dollars before shutting down,” Papoyan said.
What Problems Could the Decision Cause?
The new regulations have raised concerns among small tour companies. Diana Mnatsakanyan, founder of a local tour company, believes that while the decision might promote fair competition and benefit larger companies, it could negatively impact small businesses.
Mnatsakanyan points out that the requirement to have at least one permanent employee in addition to the director poses a challenge for small businesses, many of which can operate effectively with just one person.
Alina Petrosyan, head of the Federation for Tourism Innovation and Development, also questions the effectiveness of some requirements. She argues that simply having a website does not prevent fraud.
“Honest tour operators now face the costly burden of building a sales website, which isn’t cheap,” Petrosyan noted.
What Problem Is the Decision Trying to Solve?
According to Lusine Gevorgyan, head of the Tourism Committee, there is no alternative to digitalizing tour operators and agencies. She argues that the new rules will protect both businesses and consumers.
“Instagram or Facebook pages don’t allow uploading or downloading necessary documents or processing payments. A dedicated website can solve these and other issues,” Gevorgyan explained.
She also highlighted that tourists often pay for services in cash without signing a formal contract.
“Later, when they’re dissatisfied with the service quality, they come asking us to protect their rights,” Gevorgyan added.
This creates a regulatory gap where neither the consumer’s nor the operator’s interests can be effectively safeguarded.
To address this, the government will establish an open-access electronic registry listing all tour operators and agencies that meet the new requirements.
According to the State Revenue Committee, 1,716 taxpayers are currently registered in the tourism services sector. The Tourism Committee expects that the electronic registry will finally provide accurate data on service providers in the industry.
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