TOURISM DEVELOPMENT IMPACT ON THE ECONOMY OF AZERBAIJAN

The aim of this research is to explore tourism development impact on the economy of Azerbaijan. International tourism as a source of both direct and indirect incomes of the state encourages the development of different sectors not specific to the tourism infrastructure, but through the multiplier effect. In this context, the authors analyze the impact of tourism on employment in Azerbaijan and calculate the indirect impact of tourism on the economy of Azerbaijan due to the multiplier effect. The development of tourism in Azerbaijan is constrained by a number of factors, some of which have been analyzed in the paper. Moreover, based on some of the models and data available in Azerbaijan tourism statistics, the authors assess the indirect impact of tourism on the economy in a long term. The results can be used to assess the overall impact of tourism on the economy of the state; to forecast the development of the tourism industry; to forecast the development of related industries; to assess indirect effects of tourism on the growth of population welfare; to forecast the dynamics of change and the efficient use of labour resources; to develop an investment industry strategy; to develop an effective system of taxation, etc.. The following research methods were used: content analysis of tourism development documents, statistical data analysis; comparative analysis, synthesis, abstract and logical construction methods for studying tourism development opportunities