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5MARKETS AND COMPETITION
RURAL TOURISM AND THE BEST TOURISM VILLAGES
DOI: 10.52174/2579-2989 2023.6-29
Keywords: rural tourism, tourism village,
infrastructure, sustainability, UNWTO, Armenia
The paper presents the significance of rural tourism in the context of global tourism development, highlighting its role in promoting economic growth, preserving cultural heritage, and supporting environmental conservation in rural areas. There are also challenges associated with rural tourism, such as infrastructure gaps, depopulation, and environmental degradation.
The paper presents the Best Tourism Villages initiative by UNWTO, which aims to recognize excellent rural tourism destinations and promote sustainable practices. Villages are evaluated based on cultural and natural resources, economic, social, and environmental sustainability, tourism development, infrastructure, and safety.
The paper discusses the initiatives and activities undertaken by countries to enhance rural development through tourism, such as public investment programs, quality standards, and training.
In the context of Armenia, the paper presents some tourism projects, aimed at developing rural tourism and addressing issues like poverty and equal territorial development. Despite these efforts, challenges such as language barriers, lack of skills, poor living conditions, underdeveloped infrastructures and lack of investment persist.
N
Iowadays, tourism is developing at high rates worldwide and serves as a catalyst for rural development. It stimulates economic growth, promotes infrastructure development, encourages entrepreneurship, preserves cultural heritage, provides educational opportunities and social development of local communities,
Gayane TOVMASYAN
PhD in Economics, Associate Professor
In 2010 she graduated with honors from the Armenian State University of Economics (ASUE) with a Master's degree in Management. In 2014 she received a PhD degree in Economics, and in 2021 - the title of associate professor.
Since 2016 she has been working at "Amberd" ASUE research center and at the Public Administration Academy of the Republic of Armenia. Since 2019 she has been working as a lecturer at ASUE, and since 2023 at Yerevan State University and Brusov State University.
She has authored and co-authored more than 130 scientific publications, including eight monographs and three student manuals, as well as one university textbook, 15 articles published in journals included in the Scopus and Web of Science databases.
https://orcid.org/0000-0002-4131-6322 Web of Science ResearcherlD: AAH-5677-2021
Scopus Author ID: 56690085600
supports environmental conservation, and diversifies income sources. Villages, in turn, play a pivotal role in tourism by offering cultural heritage, natural beauty, local cuisine, artisanal products, and community engagement. The interconnected relationship between villages and tourism underscores the potential for sustainable and responsible practices to create positive and lasting impacts on both the tourism industry and rural communities.
According to UNWTO, rural tourism is "a type of tourism activity in which the visitor's experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle/culture, angling and sightseeing. Rural Tourism activities take place in non-urban (rural) areas with the following characteristics: low population density, landscape and land-use dominated by agriculture and forestry and traditional social structure and lifestyle"'.
According to OECD, rural tourism is a complex multi-faceted activity: it is not just farm-based tourism. It includes farm-based holidays but also comprises special interest nature holidays and ecotourism, walking, climbing and riding holidays, adventure, sport and health tourism, hunting and angling, educational travel, arts and heritage tourism, and, in some areas, ethnic tourism.
Rural tourism should be: S Located in rural areas; S Functionally rural, built upon the rural world's special features: small scale enterprise, open space, contact with nature and the natural world, heritage, "traditional" societies and "traditional" practices; S Rural in scale - both in terms of
buildings and settlements and, therefore, usually small scale; S Traditional in character, growing slowly and organically, and connected with local families. It will often be very largely controlled locally and developed for the long term good of the area; S Sustainable - in the sense that its
development should help sustain the special rural character of an area, and in the sense that its development should be sustainable in its use of resources. Rural tourism should be seen as a potential tool for conservation and sustainability, rather than as an urbanizing and development tool; S Of many different kinds, representing the complex pattern of rural environment, economy, and history2. Rural tourism can bring numerous benefits to local communities. By creating new job opportunities, rural tourism helps to strengthen the local economy and can play an important role in maintaining services, improving living conditions, ensuring generational renewal and slowing down depopulation. Furthermore, it can help conserve natural and cultural heritage and sustain the special rural character of an area, for instance by maintaining aspects of traditional way of life and traditional crafts and skills that might otherwise be forgotten, such as lace making or traditional boat building. Agritourism allows farmers to promote their farms and the unique areas in which they are located. Inviting visitors to farm stays and trading agricultural products brings additional revenue directly to farming families. This adds value to their agricultural production, while at the same time generating an interest in local produce and providing an opportunity to maintain and utilise agricultural land. However, tourism can also have negative consequences for rural communities, such as risk of physical damage to fragile ecosystems caused by too many visitors and pollution, including noise and litter. Popular rural destinations can face house price increases beyond the reach of local people, due to outsiders buying second homes and the arrival of large-scale tourism business. Tourism can also lead to a loss of rurality and "undiscovered" areas and wilderness, to growing urbanisation and over-reliance of local inhabitants on the business of tourism3.
1 Rural tourism, https://www-unwto-org/ruraltourism
2 Tourism strategies and rural development, OECD, Paris, 1994, pp. 8-14, https://www.oecd.org/industry/tourism/2755218.pdf
3 Rural Tourism, European Parliamentary Research Service, https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/751464/ EPRS_BRI(2023)751464_EN.pdf
According to the survey by UNWTO, the main challenges for rural development through tourism are: S the infrastructure gap in rural areas (deficiencies in roads, ports, airports and other infrastructure), S depopulation in rural areas as a result
of migration to urban regions, S the lack of education and training, as well as skills development, in addition to the capacity to attract and retain workforce talent, S limitations in accessing or managing
financial systems; S restrictions in the development of innovative tourism products in rural areas;
S degradation of natural resources; S limitations in handling data, information and knowledge management4. According to UNWTO survey, the countries do the following activities to enhance rural development through tourism:
• public investment programmes for rural tourism,
• quality standards for tourism products in rural areas,
• specific rural tourism policy,
• incentives for employment or entrepreneurship and tax incentives applied specifically to rural tourism,
• programmes on training and capacity building, education, and financial assistance services.
The most common elements covered by the national plans and policies for rural tourism or related policies include: 1. Development and diversification of tourism products and services:
• Development of attractive and authentic tourism products in rural destinations;
• Development of innovative business models and improvement of the business environment;
• Social responsibility and entrepreneurship;
• Strengthening leadership and empowerment of rural tourism entrepreneurs;
Promotion of agritourism, traditional cuisine and outdoor tourism related activities;
Creating local tourist information centres and promoting alternative lodgings; Promoting the use of digital forms of marketing and networking.
2. Improving infrastructure and support services:
Improvement of infrastructures in particular roads and facilities to increase accessibility; Improvement of health services; Development and support of financial services;
Improvement of safety and security; Improvement and instalment of digital infrastructure in rural destinations.
3. Education, training and capacity building:
Improvement of education facilities for local communities;
Promotion and enhancement of training and capacity building initiatives; Skills development for local communities in digital tools.
4. Sustainability:
Promotion of economic, social and environmental development of rural areas;
Preservation and promotion of cultural and natural resources and rural heritage;
Respect for the authenticity of host communities and their intangible heritage;
Focus on the quality of life of rural populations and optimal use of natural resources.
5. Engagement and empowerment of local communities:
Involvement of local communities in planning, decision-making and development of tourism; Empowerment of rural populations; Strengthening leadership and empowerment of rural tourism entrepreneurs and MSMEs; Improvement of intercultural
Tourism and Rural Development: A Policy Perspective - UNWTO Member States Survey on Tourism for Rural Development, 2023, pp. 6-7, https://www.e-unwto.org/doi/epdf/10.18111/9789284424306
understanding and tolerance;
❖ Sustainable and community-based tourism development;
❖ Improvement of competitiveness and marketing strategies through digital tools.
6. Local governance:
❖ Implementation of institutional and legal frameworks for promoting rural tourism;
❖ Strengthening of administrative and management competencies;
❖ Encouragement of formalization for local tourism companies;
❖ Support for rural tourism development through investment incentives, subsidies and technical advice;
❖ Supporting and financing rural tourism administrative units5.
The global rural tourism market is likely to reach US$ 102.7 billion in 2023 and US$ 198.3 billion in 2033.
The main challenges of rural tourism are:
❖ Greenwashing, i.e., the use of environment-friendly labels on law impact conservation efforts,
❖ Exhaustion of environmental capacities across destinations with fragile and sensitive ecologies,
❖ Lack of authenticity, i.e., hosts having to adjust on the basis of tourists' preferences,
❖ Limited economic returns due to a lack of participation from higher income groups6.
In 2021 the United Nations World Tourism Organisation (UNWTO) launched the Best Tourism Villages initiative. It is a part of the UNWTO Tourism for Rural Development Programme. The Programme works to foster development and inclusion in rural areas, combat depopulation, advance innovation and value chain integration through tourism and encourage sustainable practices. The villages are evaluated under nine key areas:
1. Cultural and Natural Resources,
2. Promotion and Conservation of Cultural Resources,
3. Economic Sustainability,
4. Social Sustainability,
5. Environmental Sustainability,
6. Tourism Development and Value Chain Integration,
7. Governance and Prioritization of Tourism,
8. Infrastructure and Connectivity,
9. Health, Safety, and Security.
The initiative comprises three pillars:
> Best Tourism Villages by UNWTO: Recognizes outstanding rural tourism destinations with accredited cultural and natural assets, a commitment to preserving community-based values, and a clear commitment to innovation and sustainability across economic, social, and environmental dimensions.
> Best Tourism Villages by UNWTO Upgrade Programme: Supports villages on their journey to meet recognition criteria, helping in areas identified as gaps during evaluation.
> The Best Tourism Villages Network: a space for exchanging experiences and good practices, learning, and opportunities among its members, and it is open to contributions of experts and public and private sector partners engaged in the promotion of tourism as a driver for rural development.
The Network enlarges every year and aims at becoming the largest global rural network. In 2023, 74 new members were added to the Network and 190 villages are now part of this unique Network.
In the third edition in 2023, 54 villages from all regions were selected from almost 260 applications. A further 20 villages have joined the Upgrade Programme.
List of Best Tourism Villages by UNWTO 2023 is as follows (by alphabetic order): Al Sela (Jordan), Barrancas (Chile), Biei (Japan), Caleta Tortel (Chile), Cantavieja (Spain), Chacas (Peru), Chavin de Huantar (Peru), Dahshour (Egypt), Dhordo (India), Dongbaek (Republic of Korea), Douma (Lebanon), Ericeira (Portugal), Filandia (Colombia), Hakuba (Japan), Higueras
Tourism and Rural Development: A Policy Perspective - UNWTO Member States Survey on Tourism for Rural Development, 2023, pp. 16-18, 21, https://www.e-unwto.org/doi/epdf/10.18111/9789284424306
Rural tourism industry outlook (2023 to 2033), https://www.futuremarketinsights.com/reports/rural-tourism-market#:~:tex-t=Market%20Insights%20(FMI,hosts%20having%20to
(Mexico), Huangling (China), Jalpa de Cánovas (Mexico), Kandovan (Iran), La Carolina (Argentina), Lephis Village (Ethiopia), Lerici (Italy), Manteigas (Portugal), Morcote (Switzerland), Mosan (Republic of Korea), Oku-Matsushima (Japan), Omitlán de Juárez (Mexico), Oñati (Spain), Ordino (Andorra), Oyacachi (Ecuador), Paucartambo (Peru), Penglipuran (Indonesia), Pisco Elqui (Chile), Pozuzo (Peru), Saint-Ursanne (Switzerland), Saty (Kazakhstan), Schladming (Austria), Sehwa (Republic of Korea), Sentob (Uzbekistan), Shirakawa (Japan), Sigüenza (Spain), $irince (Türkiye), Siwa (Egypt), Slunj (Croatia), Sortelha (Portugal), St. Anton am Arlberg (Austria), Tan Hoá (Viet Nam), Taquile (Peru), Tokaj (Hungary), Valeni (Moldova), Vila da Madalena (Portugal), Xiajiang (China), Zapatoca (Colombia), Zhagana (China), Zhujiawan (China).
The villages selected to participate in the Upgrade Programme this year are: Asuka (Japan), Baños de Montemayor (Spain), Bilebante (Indonesia), Ciocanesti (Romania), Civita di Bagnoregio (Italy), El Cisne (Ecuador), Iza (Colombia), Kale Üfagiz (Türkiye), Kemaliye (Türkiye), Kfar Masaryk (Israel), Madla (India), Ounagha (Morocco), Pela (Indonesia), Puerto Octay (Chile), Sabbioneta (Italy), Saint Catherine (Egypt), Sarhua (Peru), Taro (Indonesia), Vila de Frades (Portugal), Yanque (Peru).
The call for submissions for the fourth edition will take place in the first months of 20247.
The main objectives of UN WTO Best Tourism Villages initiative are:
❖ Reduce regional inequalities in income and development,
❖ Fight rural depopulation,
❖ Progress gender equality and women's and youth empowerment,
❖ Enhance education and skills development,
❖ Promote rural transformation and strengthen traction capacity,
❖ Strengthen multi-level-governance, partnerships and the active involvement of communities (public-private-
community collaboration), Improve connectivity, infrastructure and access to finance and investment, Advance innovation and digitalization, Innovate in product development and value chain integration, Promote the relationship between sustainable, equitable and resilient food systems and tourism to preserve biodiversity, agrobiodiversity, cultural heritage and local gastronomy,
❖ Advance the conservation of natural and cultural resources,
❖ Promote sustainable practices for a more efficient use of resources and a reduction of emissions and waste8.
The main requirements of this initiative are:
S Low population density, and a maximum
of 15,000 inhabitants. S Be located in a landscape with an important presence of traditional activities such as agriculture, forestry, livestock or fishing. S Share community values and lifestyle.
The villages recognized as Best Tourism Villages by UNWTO will benefit from international recognition as an outstanding example of a rural tourism destination and visibility, such as showcase in the Best Tourism Villages by UNWTO initiative website. They will also receive a diploma and/or plate signed by the UNWTO Secretary-General.
The villages included in the Upgrade Programme will receive support from UNWTO and Partners to improve elements of the areas identified as gaps in the evaluation process.
Villages recognized as Best Tourism Villages by UNWTO and those selected to participate in the Upgrade Programme will become members of the Network.
The Network is a space for exchanging experiences and good practices, learning, and opportunities among its members, and it is open to contributions of experts and public and private sector partners engaged in the promotion of tourism as a driver for
7 UNWTO names its Best tourism villages 2023, https://www.unwto.org/news/unwto-names-its-best-tourism-villages-2023
8 The initiative, https://www-unwto-org/tourism~villages/en/the~initiative/
rural development.
Villages in the Network can also benefit from being included as case studies in UNWTO policy documents, guidelines, participating in rural development and tourism related events.
The Network will be enlarged every year with new villages in the next editions of the initiative and aims at becoming the largest international network on rural tourism.
There is no fee for participating in the initiative.
Applications are summited only online through the online application form. UNWTO provides each Member State (National Tourism Administration) with a specific code for the purpose of the online application process. Each Member State can submit a maximum of eight villages per edition. An application form must be filled per each village.
Applications are evaluated by an independent Advisory Board which assesses the information provided in the video, the General Presentation and the Candidacy Document.
To protect the independence of the Board, no information on the identity of the members is provided until the end of their mandate.
There is no established number for the villages recognized as Best Tourism Villages. For those in the Upgrade Programme, UNWTO will assess the limit in number of villages based on the results of the initiative9.
Thus, the UNWTO Best Tourism Villages initiative aims to promote the potential of rural tourism as a driver of socioeconomic development, environmental conservation, and cultural preservation. It serves as a beacon of excellence, inspiring other rural communities to embrace sustainable and responsible tourism practices that contribute to their economic, social, and cultural well-being.
Rural tourism in Armenia
There are 49 cities and 953 villages in Armenia10. In 2022 the number of rural population in Armenia was 1079.0 person (the total population was 2977.1 person)''.
In recent years some tourism projects have been carried out in Armenian rural places.
The EU initiated "EU4Tourism: Community-driven rural tourism and cultural events in Gegharkunik and Vayots Dzor regions" program, that aimed to make the wonders of Armenia's nature & rural life accessible to everyone. The framework of the project included remote communities in Chambarak cluster of Gegharkinik region, as well as Agarakadzor, Gnishik, Khndzorut, Nor Aznaberd and Vardahovit communities of Vayots Dzor region". The program was funded by the European Union and implemented by World Vision Armenia and the Fund for the Conservation of Wildlife and Cultural Values.
Another project was Integrated Rural Tourism Development (IRTD) project which was funded by the Russian Federation and implemented by UNDP in Armenia, in close partnership with the Ministry of Territorial Administration and Development. The objective of the project was to offer intervention strategy for the development of rural tourism in Armenia in order to create sustainable income-generating opportunities as supplemental income source to bring down the level of rural poverty, contribute to equal territorial development and shape conducive environment for rural development in 60 villages'3. The project has developed and localized new experiential travel concepts such as gastro-yards and community-based hotels. Project interventions allowed to rehabilitate community infrastructure, offer green energy solutions to B&Bs, and establish regional touristic R&D centres for long-lasting and sustainable impact. The project has also contributed to the development of strategic and legal
9 Requirements, https://www-unwto-org/tourism~villages/en/the~initiative/
'o Armenia in figures, 2023, p. 16, https://armstat.am/file/article/armenia_2023_1.pdf
'' Armenia in figuress, 2023, p. 23, https://armstat.am/file/article/armenia_2023_3.pdf
'2 Rural tourism, http://ruraltourism.am/
'3 Integrated rural tourism development, https://www.undp.org/armenia/projects/integrated-rural-tourism-development
frameworks of tourism development in Armenia. Within the project, IRTD developed 36 Gastro Yards with different value-added themes in all regions of Armenia. The project supported to more than 60 new businesses, renovated 2 community-based hotels, created more than 450 jobs, installed 38 solar panels and water heaters. The Project has provided over 70 capacity-building opportunities to more than 800 locals to enhance their competencies and skills in various aspects of rural tourism. The Project organized and supported over 20 public events, regional festivals such as the fish festival, potato festival, wine festival. 4 R&D centres were established. The Project published 300 articles, and initiated twenty short videos, in three languages which received around 2mln14.
Despite the above-mentioned steps and various projects, there are still many problems hindering the development of rural tourism in the Republic of Armenia are: low level of knowledge of foreign languages by the hosts and local population, unfavourable living conditions, bad conditions of the roads, lack of investments, small number of hotel and catering facilities in villages, lack of marketing, and lack of professional knowledge of business management. Rural tourism will contribute to the social-economic development of rural places, increase employment among rural population, preserve rural culture and traditions, etc. So rural tourism development programs should be implemented by state and municipal organs'5.
For the development of villages, a very good initiative is UNWTO Best tourism village. Since 2021 the Tourism Committee (TC) of the RA have been announcing a competition to which Armenian villages may apply which meet the project requirements. Every year the TC chooses 3 villages to present to the UNWTO Best tourism village initiative16. Till now the Armenian villages were not successful at the competition and were not included in the UNWTO Best tourism village network. Of course, the inclusion of Armenian villages in this network will promote rural tourism and contribute to social-economic rural development.
Armenian villages have high potential for rural tourism development. They have rich cultural and natural heritage, tourists may participate in various agricultural activities such as harvesting, animal care, cooking, etc.
Main steps towards rural tourism development in Armenia are:
• Infrastructure development,
• Elaboration of sustainable rural development plans,
• Capacity building trainings among rural population,
• Financial assistance programs,
• Product development based on existing resources,
• Enhancing rural authenticity, etc. These steps will lead to the development
of rural areas and maybe in the future years Armenian villages will be included in UNWTO Best tourism village network.
14 Integrated rural tourism development project, Final report, 2016 - 2020, p. 1-44, https://info.undp.org/docs/pdc/Documents/ ARM/IRTD%20final%20report.pdf
15 Tovmasyan, G., Avetisyan, S., Galustyan, I., Tatosyan, K., Mirijanyan, L., Rushanyan, A. (2020). Agritourism Development Issues In Rural Places: Evidence From Armenia. SocioEconomic Challenges, 4(4), 29-38. https://doi.org/10.21272/sec.4(4).29-38.2020.
16 Tourism Committee of the RA, https://www.facebook.com/ArmeniaTourismCommittee/posts/pfbid02mbMRhqK5sVWYMCMeLuh-PQmLfF2DPPWopWELpf4KSPKR53AvCB7fdQ77oURYZsrG6l?locale=ms_MY
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Гаяне ТОВМАСЯН
Старший исследователь исследовательского центра «Амберд», АГЭУ,
кандидат экономических наук, доцент
РЫНКИ И КОНКУРЕНЦИЯ
СЕЛЬСКИЙ ТУРИЗМ И ЛУЧШИЕ ТУРИСТИЧЕСКИЕ ДЕРЕВНИ
В статье исследуется значение сельского туризма в контексте глобального развития туризма, подчеркивая его роль в содействии экономическому росту, сохранению культурного наследия и поддержке охраны окружающей среды в сельской местности. Существуют также проблемы, связанные с сельским туризмом, такие как пробелы в инфраструктуре, депопуляция и деградация $ окружающей среды.
В статье представлена инициатива UNWTO «Лучшие туристические деревни», целью которой $ является признание выдающихся направлений сельского туризма и продвижение устойчивых $ практик. Деревни оцениваются на основе культурных и природных ресурсов, экономической, (=
социальной и экологической устойчивости, развития туризма, инфраструктуры и безопасности.
В статье обсуждаются инициативы и мероприятия, предпринимаемые странами для улучшения развития сельских районов посредством туризма, такие как программы государственных инвестиций, стандарты качества и обучение.
на развитие сельского туризма и решение таких проблем, как бедность и равноправное территориальное развитие. Несмотря на эти усилия, сохраняются такие проблемы, как языковые барьеры, отсутствие навыков, плохие условия жизни, неразвитая инфраструктура и отсутствие инвестиций.
Ключевые слова: сельский туризм, туристическая деревня, инфраструктура, устойчивость, ЮНВТО, Армения
М Р
В контексте Армении в статье представлены некоторые туристические проекты, направленные Б
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