How Azerbaijan is building its next chapter in tourism

Florian Sengstschmid first set foot in Baku in 2001. After a career working in destinations around the world, the Austrian-born CEO of the Azerbaijan Tourism Board might be hard to surprise. Yet he says the country still has surprises in store.

A crossroads with European roots

Sengstschmid believes the South Caucasus is underrated. Its countries are often lumped together under a post-Soviet label, he says, without their individual histories and cultures being fully understood.

Azerbaijan sits where Europe meets Asia, and he points to a European thread that few visitors expect. Bridges built by the Siemens brothers can still be crossed. German heritage villages such as Helenendorf remain. Across the country, a mosque, a church and a synagogue sit side by side. With its distinctive red-tiled roofs, the country’s largest Jewish settlement is believed to have been the only entirely Jewish settlement outside Israel and the United States, as well as the world’s last surviving shtetl.That mix of cultures and faiths, he says, is part of everyday life in Azerbaijan.

He also sees the regional peace process, including the initial deal signed in Washington in August 2025, opening the door to multi-country journeys. That could make the South Caucasus easier to visit for long-haul travellers and raise the region’s profile.

A city that knows how to host

Just days before the summit, Baku hosted a Formula 1 weekend that drew more than 17,000 international visitors, alongside the Azerbaijan Investment Forum. Hospitality, Sengstschmid says, is deeply rooted in the country’s culture, with visitors treated as guests.

Baku’s profile has grown since Eurovision in 2011, and COP29 in 2024 tested its capacity further.

“Who can host a COP can host any other meeting and conference,” he said.

Beyond the capital

Still, Sengstschmid urges visitors not to stop in Baku.

Along the Silk Road lie side valleys, ancient heritage villages and the UNESCO-listed town of Shaki, set in the Greater Caucasus and known for its Khan palaces. There is also a wine route, while wellness cluster includes unique natural resources such as naftalan oil, which has been used for skin treatments for centuries.

The country spans a vast range of climate zones, from desert landscapes to peaks reaching 4,000 metres.

Winter tourism is another focus. A five-year partnership with the International Ski and Snowboard Federation (FIS) will bring races and World Cups to Azerbaijan, including FIS World Cup finals in freestyle moguls and dual moguls in the mountains of Shahdag in March.

Connectivity is improving too. Baku airport holds a five-star Skytrax rating, while Azerbaijan Airlines is taking delivery of new aircraft this year. From 8 May 2027, the carrier will fly four times a week between Brussels and Baku.

Entry is also straightforward. For major events such as F1, a passport and a valid ticket are enough, while other travellers can use the e-visa system, with standard processing within three days and urgent visas issued within three hours.

“Connectivity and accessibility are the key bottlenecks in tourism,” Sengstschmid said.

Building tourism with the people who live there

Behind the growth sits a new state program running to 2030. It aims to stimulate demand through incentives for charter airlines, new routes and tour operators. On the supply side, it encourages quality, green-built accommodation in the regions and supports micro and small entrepreneurs. It also asks transport, customs and other parts of the visitor journey to pull together.

Sengstschmid says protecting local life comes first. He cites Basgal, a mountain village on the Silk Road and a historic centre of silk printing that had been largely abandoned.

After investment in infrastructure, families returned. Today, the village has small tea houses and food stalls, while women practise traditional silk printing. Visitors can experience the village’s traditions alongside the people who live there.

In 2025, tourism contributed 7 billion manat, around €3.5 billion, or 5.4% of GDP. The target is 12 billion manat by 2030. Sengstschmid says the plan centres on longer stays and greater economic impact, with visitor numbers, currently just under three million, rising only modestly.

A village that feels like a secret

Asked to share a secret, he chose Sim, a village in the south of the country that he describes as a fairytale.

Moss covers the old wooden buildings and their balconies, water runs through the village, waterfalls tumble nearby and a UNESCO-listed forest begins at its edge. It feels like a jungle, he says, yet you are in Azerbaijan.

Asked to sum up the country in three words, he did not hesitate: real, warm and uplifting.

Warm, because of its people. Real, because he believes development has left much of the country genuine and intact. And uplifting, because Azerbaijan still has new things to show him.

For someone who first set foot in Baku in 2001, still being surprised 25 years later may be the strongest endorsement of all.

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