World Bank Urges Azerbaijan to Diversify Economy Through Tourism

The World Bank Group presented the Azerbaijan Country Economic Memorandum – Spring 2026 in Baku, warning that sustainable growth now depends on the development of the non-oil sector. Regional Director Rolande Pryce reported that economic growth slowed to 1.4% in 2025 due to declining oil production and a slowdown in the non-oil sector, making diversification the primary driver for future quality employment.

As part of this strategy, the World Bank unveiled a roadmap to accelerate tourism, which the Azerbaijani government has identified as a strategic priority. Pryce recommended transitioning from a model centered on Baku and event-based tourism toward a regional model. This shift requires improvements in transport connectivity, accommodation capacity, workforce training, and international air access to benefit local businesses and increase employment for women and youth.

Lead Tourism Specialist Shaun Mann added that Azerbaijan must prioritize the economic value per tourist over simple visitor volume. Mann urged the government to focus on extending the length of stay and increasing tourist spending. He emphasized that achieving these goals requires coordinated action across labor, transport, and environmental agencies, alongside significant investment to bridge infrastructure gaps.