Investment Projects, Business Armenia Artek Resort and Adventure Park Complex | Page 12

Risks and Risk Mitigation
There are several risks that can
potentially slow down the successful
implementation of this project.
The first risk is related to the
incomplete destination identity of
Vanadzor city which lacks places of leisure
and entertainment. However, it should be
highlighted that apart from this project,
there are a number of others that fit within
the general concept of development of the
city of Vanadzor and all these projects are
planned to be implemented in parallel to
fill the existing gaps. Also, considering the
high demand for hotel/resort services, it is
obvious that Vanadzor has a huge potential
that needs to be uncovered and further
developed. Moreover, the project will
have a spinoff effect, and small and
medium-sized
businesses
will
be
established in support of the resort.
Another risk for this project is the
location. Vanadzor is located farther from
Yerevan, than other resort towns, such as
Tsakhkadzor and Dilijan. However, it is
located right in between Armenia and
Georgia, so will be easily accessible for
international tourists.
For the successful operation of the
resort, qualified staff is required, who
should have outstanding language skills
and experience in hospitality sector. In
order to solve this problem, it is
recommended to organize relevant on-
the-job trainings which will strengthen and
develop employees’ knowledge and the
needed skills for the job.
The project is also subject to economic
risks. Both national and international
economic slowdown may decrease the
spending amounts of the tourists, which, in
turn, could negatively impact the resort’s
operating results. However, considering
the stable macroeconomic indicators of
Armenia, as well as incomparably cheaper
prices in global market, the resort towns in
Armenia may become a good alternative to
existing well-known destinations.
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