13
Georgian Tourism Industry Overview 2012 Georgian National Tourism Administration 4 Sanapiro St; Tbilisi 0105, Georgia; Tel: (+995 32) 243699; Email: [email protected]
Georgian Tourism Industry Overview
2012
Georgian National Tourism Administration 4 Sanapiro St; Tbilisi 0105, Georgia; Tel: (+995 32) 243699; Email: [email protected]
1
Georgian Tourism Industry Overview
1. Executive Summary
Travel and tourism is one of the largest and fastest-growing
service industries globally. In 2011, the share of tourism in
world GDP amounted to 9% or a value of over
US$6 trillion. The sector employed over 255 million people
worldwide, which is 8.7% of global employment. The Travel
and tourism industry is expected to grow by an average of
4% annually, reaching 10% of global GDP or US$10 trillion.
The number of international arrivals increased by 4.6% in
2011 and reached the record number of 980 million.
UNWTO expects growth to maintain its steady rate at about
3.3% until 2030.
International traveler arrivals have been growing rapidly in
Georgia as well. In 2011, the number of international
travelers reached 2 822 363, representing 39 % growth.
According to the recently updated information the number
of international travelers was 4 389 256 in 2012,
demonstrating 56% increase over previous year. The growth
in the Georgian tourism industry has been faster than that
of the world. This trend is observed in the share of Georgia
of international visitor arrivals that has increased from
0.12% in 2007 to 0.29% in 2011. The statistics for the last
three years demonstrate that the highest number of arrivals
fall in July and August. Turkey, Azerbaijan and Armenia
occupy the top three places by number of visitors, together
accounting for approximately 76% of total international
arrivals.
Currently, the seaside region of Ajara and the capital Tbilisi
dominate the Georgian hotel market. There are in total
1051 accommodation units with total capacity of 34 751
beds throughout the country. Ajara region boasts the
largest number of bed-places. Hotels account for 63% of the
bed capacity, followed by Guest Houses and Family Houses
with 16% each. With increasing number of visitors,
medium-term demand is already outstripping current
supply. Consequently, it is expected that supply of
accommodation units will increase considerably to keep
pace with demand.
The aviation market in Georgia has demonstrated
considerable growth in the last few years. Until 2003, the
market was not open to competition being a monopoly of
different business groups. However, in recent period
various steps have been taken towards liberalization, which
brought about a rapid increase in the number of flights and
passengers. Major airlines operating in Georgia are:
Georgian Airways, Turkish Airlines, Lufthansa, BMI, Czech
Airlines, China Southern Airlines, Qatar Airways, Alitalia,
AZAl, Air Baltic, LOT, Air Astana, Belavia, Ukraine
International Airlines, Aerosvit, Estonian Air, Pegasus, Fly
Dubai, Fly Georgia, etc.
Development of tourism stands high in the priorities of the
Georgian government. To spur sector growth, various
incentives are being offered to investors; among them are
the Hotel Investment Initiative and Free Tourist Zones to
name but a few.
Against the backdrop of global economic crisis, the
Georgian tourism industry continues to grow. The outlook
for the industry is highly optimistic. It is forecast that the
industry will create more jobs and generate more income in
the years to come.
2
2. Sector Overview
2.1 Global Trends
Travel and tourism is one of the largest and fastest-growing
service industries globally. In 2011, the share of tourism in
world GDP amounted to 9% or a value of over US$6 trillion.
The travel and tourism industry is expected to grow by an
average of 4% annually, reaching 10% of global GDP or
US$10 trillion. The sector employed over 255 million people
worldwide, which is 8.7% of global employment. By 2022
the number of jobs generated by the industry is expected to
grow to 328 million, or 1 in every 10 jobs in the world.1
The number of international arrivals world-wide increased
by 4.6% in 2011 and reached the record number of 980
million. UNWTO expects growth to maintain its steady rate
at about 3.3% till 2030.2
Figure 1: International arrivals
More than a half (51%) of total international visitors come
to Europe. Accordingly, European countries took top places
in the rankings. France occupied the first place with 79.5
million travelers followed by the USA and China.3
1 World Travel & Tourism Council, 2012. Travel & Tourism
Economic Impact. 2 UNWTO World Tourism Barometer, January 2012. Advance
Release. 3 UNWTO World Tourism Barometer, January 2012. Advance
Release.
Figure 2: International Arrivals: Top 10 countries
International tourist receipts grew by 3.8% and exceeded
US$ 1 trillion for the first time. The amount of international
tourist receipts had an increasing trend between 2007 and
2011, except in 2009, when the amount dropped to 852.4
Figure 3: International tourism receipts (million USD)
2011 is considered to be one of the most challenging years
ever experienced by the global travel and tourism industry.
However, according to the latest research of the World
Travel and Tourism Council, despite political instability,
economic ambiguity and natural disasters, the industry’s
4 UNWTO World Tourism Barometer, January 2012. Advance
Release.
899918
882
939
980
2007 2008 2009 2010 2011
Source:UNWTO World Tourism Barometer
79,5
62,357,3 56,7
46,1
29,3 29,3 28,424,7 23,4
Source:UNWTO World Tourism Barometer
856940
852926
1030
2007 2008 2009 2010 2011
Source:UNWTO World Tourism Barometer
3
contribution to world GDP grew by nearly 3% to US$2
trillion and directly generated 1.2 million new jobs. This was
supported by a 3% increase in visitor exports to US$1.2
trillion, with almost 3% growth in capital investment, which
rose to over US$ 0.7 trillion. Despite the fact that, the
macroeconomic environment still remains challenging,
research suggests that the contribution of tourism to global
GDP and employment in the future will increase. In
particular, research projects growth in household incomes
not only in large emerging economies (Brazil, Russia, India
and China), but also in the rest of Southeast Asia and Latin
America. Furthermore, increasing international trade
especially from emerging markets will boost business travel
demand. To summarize, according to research, growth in
travel and tourism’s direct contribution to GDP will remain
stable at 3% in 2012. In addition, the industry is expected to
generate directly over 2 million new jobs, with a 2%
increase in visitor exports and 3.5% growth in investment
over the year.5
2.2 Tourism in Georgia
2.2.1 General Overview
Georgia boasts rich natural and cultural resources. With a
territory of only 69.700 square kilometers, Georgia is almost
unique among the world’s nations for biodiversity. To find
subtropical marshes, semi deserts, lofty alpine zones and
snowy peaks - all within a hundred kilometers of each
other-is rare indeed. Georgia is home to more than 12 000
historical and cultural monuments, four out of which are
included in the list of UNESCO World Heritage Sites: 1.
Mtskheta - the ancient capital of Georgia,
2. Bagrati Cathedral (XI century), 3. Gelati Monastery in
Kutaisi (XI century), 4. Ushguli Village in Svaneti (located at
5 World Travel & Tourism Council, 2012. Travel & Tourism
Economic Impact
2 300 m above sea level, this is the highest settlement in
Europe). Georgia offers lots of possibilities to travelers of
different types. Tourists arriving to Georgia for a relaxing
holiday can opt for spending time at 103 resorts or visiting
springs of mineral waters (around 2400) or simply go to the
seaside. Lovers of nature will be interested in exploring 8
national parks and 31 protected areas throughout Georgia.
The winter resorts of Gudauri, Bakuriani and Mestia offer
skiers and holidaymakers an extraordinary winter and
summer vacation.
International tourist arrivals to Georgia have been growing
rapidly over the last years. In 2011, their number reached
2 822 363, representing 39 % growth. According to the
recently updated information the number of international
travelers was 4 389 256 in 2012, demonstrating 56%
increase over previous year.
Figure 4: Georgia: International arrivals
The growth in the Georgian tourism industry has been
faster than that of the world. This trend is observed in the
share of Georgia in international visitor arrivals that has
increased from 0.12% in 2007 to 0.29% in 2011.
560 021
763 231
1 051 7491 290 108
1 500 049
2 031 717
2 822 363
4 389 256
2005 2006 2007 2008 2009 2010 2011 2012
Source: The Ministry of Internal Affairs
4
Figure 5: Share of Georgia in international visitor arrivals
The comparison of growth rates of the world and Georgia
shows that in the last five years tourist arrivals in Georgia
increased considerably faster than in the whole world. Even
in 2008, during the world financial crisis when arrivals
worldwide fell by 4 %, the number of international visitors
to Georgia increased by 16%. In addition, Georgia showed
the highest relative increase of 39% in 2011 among the
emerging destinations.6
The statistics for the last three years demonstrate that the
highest number of arrivals fall in July and August.
Figure 6: Georgia: International arrivals by months
The majority, 86% of all arrivals, come from neighboring
countries Armenia, Azerbaijan, Russia and Turkey; only 14%
of visitors are from other countries.
6 UNWTO Tourism Highlights 2012 Edition
Figure 7: Arrivals: Neighboring Countries vs. World
Turkey, Azerbaijan and Armenia occupy the top three places
by number of visitors, together accounting for
approximately 76% of total international arrivals.
As for growth rate, out of the top ten countries, Iran,
Kazakhstan, Russia and Armenia have shown the most rapid
increase in visitor numbers over the last three years: 511%,
236%, 118% and 99% respectively.
Figure 8: International arrivals: Top 10 countries
International tourism receipts also demonstrated an
increasing trend reaching almost USD 938 297 000 in 2011.
Although the share of tourism in total output decreased in
2008 as a result of world financial crisis, since then it has
showed significant growth accounting for more than 7% of
total output.
0,12% 0,14%0,17%
0,22%
0,29%
2007 2008 2009 2010 2011
Source: The Ministry of Internal Affairs
0
50000
100000
150000
200000
250000
300000
350000
400000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009
2010
2011
Source: The Ministry of Internal Affairs
0.2 %
0.2 %
1 %
3 %
9.4 %
86.1 %
0.1 %
Others
Africa
Middle East
America
Asia and the Pacific
Europe
Neighbouring Countries
Source: The Ministry of Internal Affairs
0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000
Kazakh…
Germany
USA
Israel
Ukraine
Iran
Russia
Armenia
Azerbai…
Turkey
2009
2010
2011
Source: The Ministry of Internal Affairs
5
Figure 9: Share of tourism in the total output
Figure 10: International tourism receipts
2.2.2 Traveler Behavior
International travelers
International travelers visiting Georgia can be characterized
as follows:
The most popular purpose for visiting Georgia is
holiday, leisure or recreation (40%). Slightly more than
a quarter of foreigners visit their friends (8%) or
relatives (17%). Only 8% travel for business or
professional purposes. Travelers also arrive in Georgia
for shopping (7%), transit (9%) or other purposes (12%)
Average duration of stay is 9 days, while the median
visitor stays for 2 days
78% are repeat visitors, while 22% travel to Georgia for
the first time
The most popular means of transport among
international travelers is land transport: bus 47%, car
28% and rented car 5%. Followed by air transport:
foreign airlines 12% and Georgian Airlines 3%. Train and
sea transport have an insignificant share with 3% and
1% respectively
The top three activities undertaken in Georgia are: rest
and relaxation (36%), tasting Georgian dishes (35%),
exploring Georgian nature/landscape (35%).
The most popular cities are Tbilisi and Batumi, both
hosting two out of five international visitors (Tbilisi –
45%, Batumi 40%).
More than a quarter of visitors (27%) did not spend a
night in Georgia. Among the overnight visitors, the most
frequently used accommodation is hotel (38%). About
one third of visitors (33%) reside at a friend’s or
relative’s private apartment. Other types of
accommodation are less utilized by international
visitors – 11% stayed in a personal apartment, while 8%
of visitors chose guesthouses. 11% of visitors stay in
rented accommodation, of which 6% rent a room and
5% rented an entire apartment.
49% of international travelers travel alone, 22% with
friends and 16% with family members
70% of the travelers plan the trip by themselves. Only
16% of travelers’ trips are organized by friends or
family members and 8% by employers. The share of
travel company organized trips is not significant
accounting only for 1,4%
The average expenditure of an international visitor in
Georgia is GEL 546. The largest shares of visitors’
expenditure 23% are on served food and drinks and
shopping (18%). About the same share of expenditure
is made on accommodation 18%, while 7% is spent on
domestic transportation.
Domestic Travelers
6,60% 6,09% 6,55% 6,81% 6,70%
2007 2008 2009 2010 2011
Source: National Statistics Office of Georgia
383,7446,6 475,8
659,2
954,9
2007 2008 2009 2010 2011
Source: National Bank of Georgia
6
The travel patterns of domestic travelers differ slightly from
those of international ones:
The most common purpose of travel among Georgians
is visiting friends or relatives 44%, rather than going
for holiday, leisure or recreation (16%). Nearly every
tenth visit is related to health or medical care, 12%
travel for shopping and just 3% travel on business or a
professional trip
Average duration of stay is 2 days
20% of domestic visitors travel only once, while the
other 80% are regular travelers
Bus or minibus is the most common means of
transportation for domestic travelers. 55% use a bus at
some point in their trip, followed by private vehicle
34%. Smaller portions of Georgians use train and
rented car: 6% and 4% respectively
Main activities during domestic trips are rest and
relaxation (30%), shopping (22%) and exploring
Georgia’s Nature/Scenery/Landscape (9%)
The top three most visited places are: Tbilisi (27%),
Kutaisi (9%) and Batumi (7%)
40% of domestic travelers do not stay overnight. Out
of those staying - 55% choose private accommodation
of a friend or relative, 17% private houses/apartments
and 11% secondary residences
Domestic travelers typically travel alone (44%) or with
close family members (36%). Less than one quarter
(23%) of visitors travel with extended family members,
friends, co-workers, etc
About 68% of visitors organize their trips by themselves
and 28% rely on family members and friends. Very few
visits are organized by employers (8%) or travel
companies (0.02%).
2.2.2 The Hotel Market
Currently, the seaside region of Ajara and the capital, Tbilisi,
dominate the Georgian hotel market. There are in total
1051 accommodation units with a total capacity of 34 751
beds. Ajara region boasts the largest number of bed-places.
Hotels account for 63% of the bed capacity, followed by
Guest Houses and Family Houses with 16% each. With
increasing number of visitors, medium-term demand is
already outstripping current supply. Consequently, it is
expected that the supply of accommodation units will
increase considerably to keep pace with demand.
Tbilisi boasts several international brand hotels: Radisson
Blue Iveria, Tbilisi Marriott, Courtyard Marriot, Sheraton
Metekhi Palace, Holiday Inn and Citadines. Several other
international chains are expanding in the city as well. As
regards Batumi, Sheraton and Radisson Blue hotels have
recently opened there. Major hotel projects under
construction are the following: Kempinski, Hilton, Holiday
Inn, Ritz-Carlton, Marriott to name but a few.
A number of brand hotels are starting operation in the spa
resorts of Georgia as well.
Figure 11: Number of Accommodation Units
263
151
132
126
111
85
67
56
31
16
13
Adjara
Samtskhe-Javakheti
Kakheti
Tbilisi
Samegrelo-Upper Svaneti
Mtskheta-Mtianeti
Imereti
Guria
Racha-Lechkhumi
Lower Kartli
Inner Kartli
Source: Georgian National Tourism Administration
7
Figure 12: Bed Capacity by Regions
Figure 13: Bed capacity by types
2.2.3 The Aviation Market
The aviation market in Georgia has demonstrated
considerable growth in the last few years. Until 2003, the
market was not open to competition being a monopoly of
different business groups. However, after the Rose
Revolution, various steps have been taken to liberalize the
market, which has resulted in a rapid increase in the
number of flights and passengers. The government of
Georgia is planning to transform the country into a regional
transportation hub. Several significant steps were
undertaken to this end: the introduction of an Open Sky
Policy, the integration of Georgia into the European
Common Aviation Area (ECAA) and the development of
modern airport network.
Open Sky Policy
In 2005 Georgia announced an Open Sky Policy, which is
considered as a liberal approach to support free
competition and attract foreign airlines to the Georgian
aviation market. The Introduction of the Open Sky Policy
facilitated entrance of the world’s largest airlines to the
Georgian civil aviation market, notably Lufthansa, Turkish
Airlines, China Southern Airlines, Fly Dubai, LOT Polish
Airlines, Air Baltic, Estonian Air, Air Astana, ATA Air, Aerosvit
Ukrainian Airlines, Qatar Airways Alitalia, UTair Ukraine
Airlines and Aegean Airlines.
Georgia’s Integration into the European Common
Aviation Area
The Common Aviation Area Agreement between the
European Union and Georgia was signed on December 2,
2010 in Brussels, Belgium. The Agreement aims to open
respective markets and integrate Georgia into a wider
European Common Aviation Area (ECAA), as well as to
harmonize the country’s legislation with the European one.
Other Projects
EU funded Twinning project aimed at assisting Georgia in
the harmonization of regulations on civil aviation safety
and air carrier licensing with those of the EU (launched
in 2011);
Preferential conditions for domestic flight operators
were developed;
10266
5723
5326
2797
2746
2574
2006
1956
767
410
180
Adjara
Samtskhe-Javakheti
Tbilisi
Guria
Imereti
Mtskheta-Mtianeti
Kakheti
Samegrelo-Upper Svaneti
Racha-Lechkhumi
Lower Kartli
Inner Kartli
Source: Georgian National Tourism Administration
22012
5373 55121008 220 255 279 92
Source: Georgian National Tourism Administration
8
A ‘Proposal for Low Cost Carriers’ was elaborated to
facilitate entrance of Low Cost Carriers to the Georgian
aviation market;
In 2010, the International Air Transport Association
(IATA) made a decision to establish the Billing and
Settlement Plan Georgia (BSP). This system simplifies
and supports selling, calculation and transfer procedures
for the agencies accredited by IATA;
Successful steps were taken to improve national civil
aviation legislation, particularly:
• Drafting of a new air law was initiated;
• Operating regulations were developed and issued
for the domains of Personnel Licensing (PEL),
Operations (OPS), and Airworthiness of aircraft (AIR);
• A Surveillance programme in the domains of the
PEL, OPS, and AIR has been structured;
• Licensing, certifications, authorizations and
approvals were upgraded.
The Georgian Air Navigation Service Provider –
‘Sakaeronavigatsia’ Ltd, responsible for air traffic
management in Georgia, has implemented several
projects focused on Air Traffic Control Systems, Radio
Location, renovation of Illumination and Technical
Equipment.
Planned Activities
Gradual harmonization of Georgia’s aviation legislation
with European standards and implementation of EU
aviation rules in aviation safety, security, environment,
consumer protection, air traffic management, economic
regulation, competition issues, and social aspects
Acceleration of the process of accession to the European
Organization for the Safety of Air Navigation
(EUROCONTROL)
Supporting the establishment of the BSP Georgia.
Infrastructural Projects
Two international and one domestic airports are operating
in Georgia complying fully with International Civil Aviation
Organization (ICAO) standards. Tbilisi and Batumi
International Airports are run by a Turkish company - TAV
Airports Holding Co. They started operation in February and
May of 2007 respectively. Mestia Airport (Queen Tamar
Airport) was officially opened in 2011. The capacity of
Tbilisi and Batumi International Airports is 2000 and 300
passengers/hour respectively. As regards Mestia
International Airport, its capacity is 100 passengers/hour .
The Construction works of Kopitnari International Airport
(Kutaisi) was finished in September, 2012. The opening
was marked by the launching of flights by low-cost carrier
Wizz Air from Kutaisi to Kiev. The company is the third LCC
in the Georgian market after Pegasus and FlyDubai.
Another significant step forward will be the opening of Poti
International Airport which will become a hub for regional
and international transportation.
Figure 14: Tbilisi international Airport: Passengers and
Flights
565909 614516713565
702073
821860
1057046
5070
5835
63625951
7837
9081
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
-100000
100000
300000
500000
700000
900000
1100000
2006 2007 2008 2009 2010 2011
Passengers Flights
Source: The Ministry of Economy and Sustainable Development of Georgia
9
Figure 15: Batumi international Airport: Passengers and
Flights
Figure 16: Kutaisi International Airport: Passengers and
Flights
Airlines
In 2012, new player Qatar Airways entered the market by
opening the route Baku - Tbilisi. Qatar is the first of the
major Gulf carriers to serve Georgia and is the second
Middle Eastern carrier in Georgia after FlyDubai. Qatar
Airways opens up new faster connections to passengers
travelling between Georgia and Africa, the Middle East or
Asia. In addition to new airways, existing companies
increased their number of flights within the recent period.
In June 2012, Air Astana increased Almaty-Tbilisi flights
from three to four times per week. The company plans to
add flights to Astana-Tbilisi routes as well. Growing
interest towards Tbilisi has influenced the plans of Air
Astana to create its Central Asian network here, providing
connections through its Almaty and Astana hubs.
China Southern Airlines also recently increased Urumqi-
Tbilisi flights from two to three times a week. The carrier
is using Urumqi as a transit hub for its fast expanding
network in central Asia and Eastern Europe.
Recently, new domestic airline Fly Georgia has entered
Georgian market. New company Air Caucasus also plans to
start operation. These Airlines are deemed to be
competitors for Georgian Airlines and will significantly
increase international capacity in Tbilisi.
Another airline showing increasing interest in Georgia is
AirBaltic, which serves the Riga-Tbilisi route three times a
week and is considering offering four weekly flights.
Figure 18: Tbilisi International Airport
39795
7927767984
88101
133306
484
699
538
916
1446
-100
100
300
500
700
900
1100
1300
1500
-6000
14000
34000
54000
74000
94000
114000
134000
2006 2007 2008 2009 2010 2011
Passengers Flights
Source: The Ministry of Economy and Sustainable Development of Georgia
28679
15379
84187221
4340
325
199
10974
47 0
50
100
150
200
250
300
350
400
450
500
0
5000
10000
15000
20000
25000
30000
2006 2007 2008 2009 2010 2011
Passengers Flights
Source: The Ministry of Economy and Sustainable Development of Georgia
18%
82%
Domestic Airlines
International Airlines
Source: The Ministry of Economy and Sustainable Development of Georgia
10
This year is going to be quite challenging for Georgia’s
aviation industry as new airlines are entering the market,
while others are expressing greater interest and increasing
flight frequencies on various routes. Though some coming
increases are seasonal, more successes are yet to come,
as the country is making important steps forward with its
plan to become the transportation hub of the region.7
Major airlines operating in Georgia are:
Georgian Airways, Turkish Airlines, Lufthansa, BMI, Czech
Airlines, China Southern Airlines, Qatar Airways, Alitalia,
AZAl, Air Baltic, LOT, Air Astana, Belavia, Ukraine
International Airlines, Aerosvit, Estonian Air , Pegasus, Fly
Dubai, Fly Georgia, ATA airlines, SCAT, Ural Airlines, Arkia
Israel Airlines, S7, Aegean Airlines.
Figure 17: Tbilisi International Airport: Share of airlines
7 CAPA, Centre for Aviation, 2012. Georgia’s aviation market
expanding with Government interest. Available at: http://centreforaviation.com/analysis/georgias-aviation-market-expanding-with-government-interest-76705
2.2.4 Government Incentives
The Georgian government has declared tourism and hotel
industry development to be a high priority. Various
investment initiatives have been proposed to spur the
sector’s growth, among them are:
The Hotel Investment initiative giving investors the
opportunity to enter the Georgian market in an
immediately competitive position by offering the
following benefits:
Access to prime real estate locations through
privatization
Privatized property acquisition through a direct
sale
Significant discounts on current market value for
privatized properties
Land plots, Greenfield projects, and properties
with suitable buildings for Brownfield projects
Preferential terms from municipalities, such as
Tbilisi and the regional centers
Free Tourist Zones giving investors special privileges in
Kobuleti and Anaklia/Zugdidi. Investors making
investments of USD 1-3 mln in Kobuleti are offered the
following:
Free Land
Free Hotel Master Plan
Free casino license for hotel capacity over
100 rooms
Exemption from profit and property taxes for 15
years
Fully provided engineering utility networks and
corresponding outdoor infrastructure
18,3%
13,5%
12,8%
9,7%
6,6%5,9%
5,4%5,0%
4,3% 4,1% 4,0%
2,0%
8,3%
Source: The Ministry of Economy and Sustainable Development of Georgia
11
After the successful initiation of Kobuleti, the
Anaklia/Zugdidi Free Tourist Zone was established. The
Special package for investors here is as follows:
Free land
Free Hotel Master Plan
Full engineering utility networks (water,
electricity, gas)
Exemption from profit and property taxes for 15
years
Mineral water pipe supply for the new resort
Free casino license for hotel capacity over 80
rooms
Georgian citizenship for foreign investors
In addition to the current possibilities of entering the
market through joint ventures and acquisitions, there are
many opportunities for investors to enter not only as
hotel owners, but also as hotel operators. For example,
there are many individual Georgian hotels that are
currently interested in working with an international
operator as a way to increase revenues and occupancy
rates.
For hotel owners, considering the supply gaps that
currently exist, the market is open to any form of new
investment. Not only do hotel investors have access to
prime real estate locations, but they can work with the
Georgian Government and municipalities like Tbilisi to
negotiate preferential terms.
2.3 Sector Outlook
Against the backdrop of global economic crisis, The
Georgian tourism industry continues to grow. The outlook
for the industry is highly optimistic. It is forecast that the
industry will create more jobs and generate more income
in the years to come. The number of arrivals to Georgia is
expected to increase substantially thanks to various steps
taken by the Government in general and the Georgian
National Tourism Administration in particular.
Among the actions taken by the GNTA towards increasing
the number of travelers in the country are development
of tourism infrastructure, facilitation of international
travel, improvement of service quality, large-scale
marketing campaigns, targeting new markets and tourist
product development.
Development of tourist infrastructure stands high on the
priorities of government. Major reconstruction works
related to tourism are underway.
Significant steps were taken towards travel facilitation and
visa relaxation. Georgia has no visa policy with around 87
countries. Among them are citizens of the United States,
Canada and the European Union member states, who can
enter Georgia solely on the basis of an Identity Card.
Travelers from most other countries are issued visas on
arrival.
Another significant issue is service quality enhancement
which is achieved through intensive trainings for the
representatives of the tourism and hospitality industry
throughout Georgia.
Marketing undoubtedly plays a vital role in tourism
growth. Activities undertaken by GNTA cover promotional
campaigns in domestic and international markets, press
and FAM trips, participation in international travel-fairs,
production of print materials, social media marketing, etc.
Choosing the right markets is undoubtedly an integral part
of marketing. While maintaining existing markets, GNTA
12
concentrates on tapping into new countries, among them
are new emerging economies with immense potential.
Making the most of Georgia’s rich natural and cultural
resources by offering new tourist products provides
increased possibilities for targeting travelers of different
tastes. GNTA efforts focus on the development of
different types of tourism such as MICE, wine, eco,
adventure to name but a few.
It should be mentioned that at all stages of tourism
development particular attention is paid to the issue of
sustainability. Preserving the environment and ensuring
the sustainable use of resources for future generations
are of paramount significance.
2.3.1 Long-term perspective
European Youth Olympic Festival 2015
On November 26-27, in Belgrade, the 39th General
Assembly of European Olympic Committees chose the
Georgian Capital to host the Youth Olympic Festival in
2015. Over 4 000 athletes from 49 European countries will
participate in the Festival taking place in Tbilisi. The
sporting infrastructure of the city will be renovated
according to the European standards and an “Athletes
Village” will be built. For this single event the city of Tbilisi
is expected to host more then 10, 000 visitors, of which
approximately 5,000 will require 3-star hotel
accommodation and about 200 visitors will need 5-star
hotel accommodation, all within Tbilisi. Considering the
fact that there are only 5011 bed-places in Tbilisi
(including Guest Houses and Family Houses), there is an
immediate need for new hotel investment to fill the gap in
supply. This festival represents a good opportunity for the
country to showcase its rich tourism potential.
UEFA Super Cup 2015
The UEFA Executive Committee has given Tbilisi the
opportunity to host a mega sport event, the UEFA Super
Cup. The UEFA Super Cup is an annual football match
between the winners of the Champions League and the
Europe League. The game will be held at the newly
renovated Mikheil Meshki Stadium. This event will gather
football fans from all over the world
.
