AZE.US
Growing geopolitical tensions in the Middle East, particularly the confrontation between Iran and Israel, are beginning to affect Azerbaijan’s tourism sector, according to industry experts.
The instability in the region is not only raising concerns about air travel safety but is also influencing tourists’ decisions about where to travel.
Although Azerbaijan expected a recovery in foreign visitor numbers this year after a 2% decline in 2025, ongoing regional conflicts are slowing that process.
Tourism analyst Jeyhun Ashirov says the impact is already visible in the capital’s hotel sector.
“We are seeing cancellations of reservations related to the current events,” Ashirov said, adding that hotel occupancy rates in Baku have dropped by roughly 30-40 percent.
At the same time, experts believe that part of the outbound tourism demand may shift toward domestic travel, as some Azerbaijani citizens reconsider trips abroad.
Industry specialists say Azerbaijan should focus on attracting visitors from new and strategically important markets to compensate for the decline.
Among the key target regions are countries of Central Asia, Southeast Asia, and Europe, while China is considered one of the most promising markets for future tourism growth.
Experts also emphasize the need to diversify Azerbaijan’s tourism infrastructure. Currently, the country’s hotel sector is dominated by four–and five-star hotels, but expanding the availability of mid-range and budget accommodation could help attract a broader range of visitors.
Another challenge is competition from neighboring destinations. European tourists often choose Georgia as their preferred travel destination in the region, prompting calls for Azerbaijan to analyze the reasons behind this trend and develop strategies to increase its appeal.
As part of its updated marketing strategy, the Azerbaijan Tourism Board is expanding outreach in key foreign markets. Officials say that a tourism representation office in China is expected to open this year, a move aimed at boosting visitor flows from one of the world’s largest outbound tourism markets.