SWOT ANALYSIS OF EVENT TOURISM DEVELOPMENT IN THE REPUBLIC OF AZERBAIJAN

Aytakin Gasan Akhundova

Journal number 3 ∘ Aytakin Gasan Akhundova ∘
SWOT ANALYSIS OF EVENT TOURISM DEVELOPMENT IN THE REPUBLIC OF AZERBAIJAN

Expanded Summary

Over the past decades, tourism has become a mass phenomenon, covering all corners of the planet, there is a significant increase in the number of international trips, as well as the formation of new trends in the development of this area. Statistics confirms the steady growth of tourism, emphasizing its important role in global economic development. Compared to 1950, people today began to travel 52 times more. And this became possible due to rapid economic development, overall growth in income, increased free time, expansion of air traffic and simplification of visa procedures. In particular, according to the World Tourism Organization (WTO), in 1950 the number of tourists was 25 million, and tourism revenue was $ 2.1 billion. By the beginning of the 21st century - in 2000, the number of tourists reached 698 million, tourism revenue - more than $ 476 billion, international tourism accounted for 11% of the world's GDP and about 10% of jobs. And in 2023, according to the United Nations World Tourism Organization (UNWTO), global tourism activity reached 88% of the pre-pandemic level. 1.3 billion people traveled abroad last year. According to preliminary estimates, international tourism revenue in 2023 reached $1.4 trillion, which is about 93% of $1.5 trillion in 2019.

Tourism has undergone significant changes in recent years. Modern travelers are not just looking for new places on the map, but are striving for unique experiences and a deep understanding of the culture of the countries they visit. This trend is changing the traditional approach to tourism, making it more multifaceted and focused on personal emotions and experiences.

One of the most striking and promising area is event tourism, which is gaining more and more popularity among travelers. People are choosing trips dedicated to important sporting, cultural and business events. They are interested not only in architecture and museums, but also in what the country lives here and now - what events are held, what is its rhythm and lifestyle.

Event tourism plays an increasingly important role in the state policy of many countries, including Azerbaijan. Such countries are actively competing for the opportunity to host major global events. These events not only attract tourists, but also contribute to improving infrastructure, strengthening the international image and opening up new prospects for economic growth. Hosting such events has become a strategic tool with which countries solve the problems of promoting themselves on the world stage and attracting investors.

In the context of Azerbaijan, the development of event tourism is also becoming an important area. In recent years, the country has successfully hosted both global and local events. Large-scale events include: Uzeyir Hajibeyov International Music Festival since 2009, Eurovision Song Contest 2012, Formula 1 Azerbaijan Grand Prix in Baku since 2016, first European Games in 2015, IV Islamic Solidarity Games in 2017, World Chess and Wrestling Championships, annual World Championships in the game “What? Where? When?”, international music festival DREAM Fest 2024, etc. And from November 11 to 22, 2024, Azerbaijan will host one of the most prestigious international events in the world - COP29.

For example, the holding of the First European Games "Baku - 2015", in which 6067 athletes from 50 countries took part, contributed not only to the growth of the country's international fame, but also to the promotion of its tourism potential, as well as the formation of sports event tourism in the republic. More than 28 thousand foreign tourists came to Baku for the European Games. Most of the foreigners who came to Azerbaijan for the competitions were citizens of Russia, Great Britain, Germany, the Netherlands, Italy, Switzerland, Spain, USA and UAE. In addition, various holidays and festivals are held annually in the regions of Azerbaijan, contributing to the development of event tourism. It is appropriate to note here that the territory of Azerbaijan - 86.6 thousand square kilometers, by the decree of the President of the Republic of Azerbaijan dated July 7, 2021, is divided into 14 economic regions. Be it the Gabala Music Festival or Jam Festival, the Pomegranate Festival in the Goychay Region, the Apple Festival in the Guba District, the Persimmon Festival in the Balaken Region, the Grape and Wine Festival in the Shamakhi Region, the Hari Bulbul Music Festival in Shusha, the Cherry and Cherry Festival in the Khachmaz Region and others. However, such events are not as popular among tourists as international events in the country. This may be due to insufficient marketing support at the global level and limited infrastructure development in the regions. In addition, the specificity or narrow theme of some regional events may reduce their attractiveness and limit their potential audience.

Therefore, it is important to conduct a SWOT analysis to more accurately assess strengths and weaknesses, as well as identify opportunities and threats. This approach will allow developing effective strategies to attract tourists and strengthen the position of regional events (Table 1). The tourism potential of Azerbaijan is to receive 5 million tourists per year. The strengths and weaknesses of event tourism development in Azerbaijan can be assessed as follows:

Strengths:

- rich cultural heritage. There are more than 6 thousand historical, architectural and cultural monuments in the country, some of which are included in the UNESCO World Heritage List;

- advantageous geographical location. The location at the crossroads of East and West, as well as on the route of the Great Silk Road, creates favorable conditions for attracting tourists from different regions;

- The Republic of Azerbaijan has been known in recent years as a significant provider of MICE services, where major events are held both at the Eurasian and global levels;

- development of related infrastructure. In recent years, Azerbaijan has been actively developing transport infrastructure, the hotel sector and catering infrastructure;

- government support;

- preservation of the historical and cultural heritage of the country;

- support for small and medium-sized businesses;

- event tourism as part of the strategy for the development of domestic and inbound tourism.

Weaknesses:

- insufficient branding and uneven development of regions;

- shortage of qualified personnel;

- inefficient use of tourism potential;

- low awareness at the international level;

- lack of marketing research;

- low investment and business activity of the local population;

- lack of correlation between government, commercial and non-profit organizations, which limits the potential for the development of regional event tourism.

The opportunities and threats to the development of event tourism can be defined as follows:

- attracting new international events;

- expanding cooperation with foreign partners and actively promoting the country in the international arena;

- significant tourism potential;

- favorable economic, geographical and transit position of the country;

- the opportunity to develop various types of tourism, including event tourism;

- formation of tourism infrastructure by attracting investments aimed at organizing events;

- growth of economic potential through the development of the services market;

- increasing the attractiveness of the Republic of Azerbaijan based on a stable trend in the implementation of the marketing strategy of the territory;

- creation and promotion of a tourism brand, as well as improving the image of the country and its regions outside the republic;

- introduction of innovative technologies in the tourism sector;

- improving the quality of service for tourists;

- development of regional infrastructure to the required level;

- modernization and optimization of promotion channels.

Threats:

- political instability, epidemiological risks and global economic uncertainty in the country (exchange rates, unemployment, etc.);

- decreased purchasing power of the population and increased unemployment;

- increased competition from neighboring countries that are actively and successfully developing event tourism;

- inconsistency of the services provided with tourists' expectations and lack of unique offers;

- negative environmental factors affecting tourist attractiveness;

- destruction of attractions and decreased attractiveness of events in the regions.

Thus, based on the SWOT analysis, it can be concluded that event tourism in Azerbaijan has significant potential for further development. Despite the successes achieved, it is necessary to pay more attention to this area in order to fully realize its potential and attract a wider audience. Effective development of event tourism can not only contribute to strengthening the international prestige of the country, but also bring significant economic benefits. It is important to take into account the weaknesses and threats identified in the SWOT analysis in order to minimize risks and make the most of the available opportunities. Developing and implementing the right event tourism strategy will have a significant impact on the overall economic development of the country, contributing to the growth of its international image and economic sustainability.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 3 ∘ Aytakin Gasan Akhundova ∘ SWOT ANALYSIS OF EVENT TOURISM DEVELOPMENT IN THE REPUBLIC OF AZERBAIJAN Expanded Summary Over the past decades, tourism has become a mass phenomenon, covering all corners of the planet, there is a significant increase in the number of international trips, as well as the formation of new trends in the development of this area. Statistics confirms the steady growth of tourism, emphasizing its important role in global economic development. Compared to 1950, people today began to travel 52 times more. And this became possible due to rapid economic development, overall growth in income, increased free time, expansion of air traffic and simplification of visa procedures. In particular, according to the World Tourism Organization (WTO), in 1950 the number of tourists was 25 million, and tourism revenue was $ 2.1 billion. By the beginning of the 21st century - in 2000, the number of tourists reached 698 million, tourism revenue - more than $ 476 billion, international tourism accounted for 11% of the world's GDP and about 10% of jobs. And in 2023, according to the United Nations World Tourism Organization (UNWTO), global tourism activity reached 88% of the pre-pandemic level. 1.3 billion people traveled abroad last year. According to preliminary estimates, international tourism revenue in 2023 reached $1.4 trillion, which is about 93% of $1.5 trillion in 2019. Tourism has undergone significant changes in recent years. Modern travelers are not just looking for new places on the map, but are striving for unique experiences and a deep understanding of the culture of the countries they visit. This trend is changing the traditional approach to tourism, making it more multifaceted and focused on personal emotions and experiences. One of the most striking and promising area is event tourism, which is gaining more and more popularity among travelers. People are choosing trips dedicated to important sporting, cultural and business events. They are interested not only in architecture and museums, but also in what the country lives here and now - what events are held, what is its rhythm and lifestyle. Event tourism plays an increasingly important role in the state policy of many countries, including Azerbaijan. Such countries are actively competing for the opportunity to host major global events. These events not only attract tourists, but also contribute to improving infrastructure, strengthening the international image and opening up new prospects for economic growth. Hosting such events has become a strategic tool with which countries solve the problems of promoting themselves on the world stage and attracting investors. In the context of Azerbaijan, the development of event tourism is also becoming an important area. In recent years, the country has successfully hosted both global and local events. Large-scale events include: Uzeyir Hajibeyov International Music Festival since 2009, Eurovision Song Contest 2012, Formula 1 Azerbaijan Grand Prix in Baku since 2016, first European Games in 2015, IV Islamic Solidarity Games in 2017, World Chess and Wrestling Championships, annual World Championships in the game “What? Where? When?”, international music festival DREAM Fest 2024, etc. And from November 11 to 22, 2024, Azerbaijan will host one of the most prestigious international events in the world - COP29. For example, the holding of the First European Games "Baku - 2015", in which 6067 athletes from 50 countries took part, contributed not only to the growth of the country's international fame, but also to the promotion of its tourism potential, as well as the formation of sports event tourism in the republic. More than 28 thousand foreign tourists came to Baku for the European Games. Most of the foreigners who came to Azerbaijan for the competitions were citizens of Russia, Great Britain, Germany, the Netherlands, Italy, Switzerland, Spain, USA and UAE. In addition, various holidays and festivals are held annually in the regions of Azerbaijan, contributing to the development of event tourism. It is appropriate to note here that the territory of Azerbaijan - 86.6 thousand square kilometers, by the decree of the President of the Republic of Azerbaijan dated July 7, 2021, is divided into 14 economic regions. Be it the Gabala Music Festival or Jam Festival, the Pomegranate Festival in the Goychay Region, the Apple Festival in the Guba District, the Persimmon Festival in the Balaken Region, the Grape and Wine Festival in the Shamakhi Region, the Hari Bulbul Music Festival in Shusha, the Cherry and Cherry Festival in the Khachmaz Region and others. However, such events are not as popular among tourists as international events in the country. This may be due to insufficient marketing support at the global level and limited infrastructure development in the regions. In addition, the specificity or narrow theme of some regional events may reduce their attractiveness and limit their potential audience. Therefore, it is important to conduct a SWOT analysis to more accurately assess strengths and weaknesses, as well as identify opportunities and threats. This approach will allow developing effective strategies to attract tourists and strengthen the position of regional events (Table 1). The tourism potential of Azerbaijan is to receive 5 million tourists per year. The strengths and weaknesses of event tourism development in Azerbaijan can be assessed as follows: Strengths: - rich cultural heritage. There are more than 6 thousand historical, architectural and cultural monuments in the country, some of which are included in the UNESCO World Heritage List; - advantageous geographical location. The location at the crossroads of East and West, as well as on the route of the Great Silk Road, creates favorable conditions for attracting tourists from different regions; - The Republic of Azerbaijan has been known in recent years as a significant provider of MICE services, where major events are held both at the Eurasian and global levels; - development of related infrastructure. In recent years, Azerbaijan has been actively developing transport infrastructure, the hotel sector and catering infrastructure; - government support; - preservation of the historical and cultural heritage of the country; - support for small and medium-sized businesses; - event tourism as part of the strategy for the development of domestic and inbound tourism. Weaknesses: - insufficient branding and uneven development of regions; - shortage of qualified personnel; - inefficient use of tourism potential; - low awareness at the international level; - lack of marketing research; - low investment and business activity of the local population; - lack of correlation between government, commercial and non-profit organizations, which limits the potential for the development of regional event tourism. The opportunities and threats to the development of event tourism can be defined as follows: - attracting new international events; - expanding cooperation with foreign partners and actively promoting the country in the international arena; - significant tourism potential; - favorable economic, geographical and transit position of the country; - the opportunity to develop various types of tourism, including event tourism; - formation of tourism infrastructure by attracting investments aimed at organizing events; - growth of economic potential through the development of the services market; - increasing the attractiveness of the Republic of Azerbaijan based on a stable trend in the implementation of the marketing strategy of the territory; - creation and promotion of a tourism brand, as well as improving the image of the country and its regions outside the republic; - introduction of innovative technologies in the tourism sector; - improving the quality of service for tourists; - development of regional infrastructure to the required level; - modernization and optimization of promotion channels. Threats: - political instability, epidemiological risks and global economic uncertainty in the country (exchange rates, unemployment, etc.); - decreased purchasing power of the population and increased unemployment; - increased competition from neighboring countries that are actively and successfully developing event tourism; - inconsistency of the services provided with tourists' expectations and lack of unique offers; - negative environmental factors affecting tourist attractiveness; - destruction of attractions and decreased attractiveness of events in the regions. Thus, based on the SWOT analysis, it can be concluded that event tourism in Azerbaijan has significant potential for further development. Despite the successes achieved, it is necessary to pay more attention to this area in order to fully realize its potential and attract a wider audience. Effective development of event tourism can not only contribute to strengthening the international prestige of the country, but also bring significant economic benefits. It is important to take into account the weaknesses and threats identified in the SWOT analysis in order to minimize risks and make the most of the available opportunities. Developing and implementing the right event tourism strategy will have a significant impact on the overall economic development of the country, contributing to the growth of its international image and economic sustainability.