On December 8, Yerevan’s main Christmas tree was lit with grand fanfare, showcasing the city’s extravagant holiday decorations. However, the financial cost—549.7 million AMD (approximately $1.37 million USD)—has drawn significant attention and raised questions about the city’s priorities.
A breakdown of the spending includes:
- 18 million AMD (~$45,000 USD) for the tree’s branches and ornaments.
- 60 million AMD (~$150,000 USD) for decorating the singing fountains.
- 190 million AMD (~$475,000 USD) for a Christmas market.
- 90 million AMD (~$225,000 USD) for the tree lighting ceremony itself.
Deputy Mayor Suren Grigoryan defended the spending as a means to boost tourism. Yet, official data shows a 6% drop in tourism from January to October 2024 compared to the same period in 2023, casting doubt on the effectiveness of such initiatives.
For three years, “Cinemart” LLC has been awarded decoration contracts without competition, with steadily increasing costs:
- 2022: 191 million AMD (~$477,500 USD)
- 2023: 202 million AMD (~$505,000 USD)
- 2024: 209 million AMD (~$522,500 USD)
In addition to “Cinemart,” the city also contracted “Factory Production” LLC this year, paying 60 million AMD (~$150,000 USD) for fountain decorations, 190 million AMD (~$475,000 USD) for the Christmas market, and 90 million AMD (~$225,000 USD) for the lighting ceremony.
This spending has sparked concerns about misplaced priorities, especially as Yerevan grapples with deteriorating infrastructure, insufficient public services, and economic challenges. Many residents argue such funds could address more urgent needs.
For comparison, the Municipality allocated just 3 million AMD (~$7,650 USD) for youth-related programs in 2024, highlighting a stark disconnect between spending on holiday events and the city’s pressing issues.
While the decorations aim to spread holiday cheer, the lack of tangible benefits and declining tourism numbers raise broader concerns about mismanagement and misplaced priorities.
