Baku: The World Bank has outlined the main challenges facing Azerbaijan's tourism sector, APA-Economics reports. Speaking at the presentation of the "Azerbaijan Country Economic Memorandum - Spring 2026" report in Baku, World Bank Lead Tourism Specialist Shaun Mann highlighted the need for Azerbaijan to expand its tourism appeal beyond the capital city to include regional destinations across the country.

According to Azeri-Press News Agency, Shaun Mann emphasized that while Baku has successfully emerged as a popular tourism destination, Azerbaijan must develop additional attractions in its regions to replicate the success seen in countries like Indonesia with Bali, Peru with Machu Picchu, and Iceland with Reykjavik. These countries complement their primary tourism hubs with other destinations, thus encouraging visitors to extend their stays.

Mann identified a critical issue as the need to offer tourists a 'Baku+' experience, urging the development of regional attractions to entice visitors to explore beyond the capital. He noted that diversifying tourist arrivals is essential, as currently, 66% of visitors come from only three or four countries, rendering the sector susceptible to external risks.

Mann also pointed out the shift in tourist demographics, with increased numbers from India, Saudi Arabia, Israel, China, Pakistan, and Trkiye, and a decline from traditional markets such as Russia, Georgia, Iran, and the UAE. This shift necessitates adapting tourism products to cater to the demands of these new markets.

He further explained that tourism directly brings visitors' spending into the country, offering substantial opportunities for developing small businesses in the regions and boosting employment among women and young people. However, according to the World Bank's assessment, Azerbaijan must address gaps in service quality, service diversity, and the overall development of its tourism ecosystem to fully capitalize on this potential.