Abstract

The slump in the oil prices in mid-2014 has led to an economic recession in Azerbaijan affecting the local currency, budget revenues, foreign exchange rate, and balance of payments. Following the outcomes of the global oil shocks, the country had to build a recovery path in order to ensure sustainable economic growth. Since that time, the government has stressed a need for economic diversification and focused on the development of the non-oil sector. Tourism is considered one of the main sectors with large potential. Therefore, an analysis of this sector will provide an opportunity to access its potential in terms of contribution.

Keywords: Azerbaijan, Diversification, Tourism, Economic growth