ABSTRACT:
Purpose: The scientific justification of ways to eliminate high unemployment in rural areas, which is an important reason for the development of the regional economy. Design/methodology/approach: The research work is based on the methods of quantitative and comparative analysis and the method of economic-statistical analysis is used in the calculations. Findings: It is one of the main conditions for granting the small loans to the rural population along with the involvement of individual investors for the purpose of developing rural tourism in Azerbaijan. It is important to work out various methods in the direction of solution of social infrastructure elements, the social problems of the village including shortcomings in roads. The regular arrangement of city residents’ rest in villages will give a serious impetus to the development domestic and foreign tourism and as a result the economic situation of the village improves, rural area with threat of disintegration are being renovated. Based on the study, we can say that, compared with 2012, the cost of tickets sold to foreigners in 2018 increased by 3,2 times, the total income of travel agencies and tour operators-1,7 times, and total expenses-1,88 times. The development of rural tourism results with the revenue of regions citizens, with the unemployment cancellation and with the opening new jobs. At that time there is a need for cadres with the provision of special trained specialists. So, by providing highly skilled staff in the rural tourism not only the development of rural economy but also the whole state economy is growing. Research limitations/ implications: The study showed that the expansion of rural tourism in Azerbaijan, which is one of the types of tourism, will give an impetus to the economic development of the state and will allow it to be included in the list of profitable destinations. Practical implications: A balanced approach to expanding rural tourism weakens the urban burden in the tourism sector and increases the purchasing power of tourists for tourism products. Originality/value: Achieving an increase in the share of rural tourism in tourism revenues and the development of special tourism products in accordance with the hospitality, customs and traditions of the countryside.

Keywords: rural tourism, rural economy, agro tourism, infrastructure, the economic development of rural areas

JEL classification: L83