Georgian Economy Minister:
“Georgia is a safe country for everyone, including Russian tourists”
Economy Minister promised that the government will do its best to support small entrepreneurs who are negatively affected by “this specific crisis”. Photo: Economy Minister.
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“Georgia is one of the safest countries for tourism and for travellers from any country, including Russian tourists”, says the Economy Minister of Georgia Natia Turnava.
I will use all platforms to say that Georgia remains one of the most hospitable, open and safe countries in the world, welcoming with equal pleasure European, Korean, Ukrainian or Russian tourists”, said Turnava today while meeting with representatives from the hospitality sector of the Adjara region of Georgia.
Hospitality sector representatives asked Turnava to speak about the challenges they will face this summer after Russian President Vladimir Putin’s banned flights to Georgia.
They claimed that most of the hostels in Kobuleti as well as in the entire region of Adjara used to serve tourists coming from Russia and the travel embargo would “significantly reduce” their income.
Natia Turnava meeting hospitality sector representatives in Kobuleti. Photo: Ministry of Economy.
Owners of hotels and guest homes in Kobuleti asked Turnava and the government to find alternative ways for Russian tourists willing to visit Georgia and for the hospitality sector of Adjara region to conquer alternative tourism markets.
Turnava promised that the government will do its best to support small entrepreneurs who are negatively affected by “this specific crisis”.
Today I am in Adjara as the season has already started here and you need the support mostly. However there are challenges in Kakheti, Svaneti regions as well and I will continue meetings to learn the specific problems and we will work to create an effective plan”, Turnava said.
Will the ban on flights affect the Georgian economy?
How will Putin’s ban on flights to Georgia and restrictions on the import of Georgian beverages into the Russian Federation affect the economy?
The International School of Economics (ISET) posted an infographic on its Facebook page, which shows that the share of tourism in the Georgian economy is 7.6 per cent, and in which the share of Russian tourists in the economy is 1.8 per cent while the share of Russian tourists entering Georgia by plane is just 0.5 per cent.
Infographic by ISET.
TBC Bank published a study ‘Russian Sanctions: Manageable Impact on the Growth and Still Betting on the GEL’, which says that last year the share of Russia in total inflows (exports of goods, tourism, remittances, and FDIs) stood at 16 per cent with a tourism share of 19 per cent and a significant contribution to growth.
The estimated drop of tourism inflows from Russia may be as high as 50 per cent. Even in this case, we believe the impact on growth is manageable and we are betting on the GEL”, read the report.
Share in exports, tourism , remittance and FDI inflows in 2018 (%). Image: TBC.
The study says that despite a possible sharp drop from Russia, total tourism inflow growth is expected to remain in a positive direction up to five per cent, mainly due to a solid increase from other sources, such as the EU with around a 10 per cent share and the growth rate of 33.6 per cent year-on-year over the last twelve months, Israel (4.5% share and 36% growth), as well as other countries.
The negative impact can be balanced by a more supportive fiscal stance as well as relaxed retail credit regulations. Those measures are likely to soften the impact to one per cent of GDP. 2019 growth rate is estimated to equal four per cent instead of around five per cent expected previously”, read the report.
The research says that a 50 per cent drop can be a conservative assumption as market players have already started to actively seek indirect routes; also, as only one third of Russian tourists arrive by plane, the rest of the tourists are expected to be much less impacted, as well as Georgian nationals with Russian passports arriving by different means of transportation. In addition, the interest of Russian tourists still remains high as there are no safety issues and atmosphere remains welcoming.
The Russian Association of Tour Operators says that there are currently between 5,000-7,000 Russian tourists in Georgia on organised tours.
Russian news agency TASS says that the flight bans will result in another 150,000 Russians having to cancel their planned trips to Georgia.
Foreign embassies in Georgia are promoting the country as a tourism destination, sharing their personal experience of travelling in Georgia in response to Russian President Vladimir Putin’s recent ban on flights with Georgia. On the other hand Georgians also invite travellers from all over the world to come to their country.
There is hardly any reason that would put the quality of Georgian wine production under the question mark, the National Wine Agency of Georgia responded to Russia’s recent warning on "strengthening control" over alcoholic drinks imported from Georgia.
Russia's Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing has announced a "strengthening of control" over alcoholic drinks imported from Georgia, in a move reminiscent of a 2006 embargo on wine from the country.
Over 12,000 Russian citizens have signed an online petition calling on Russian President Vladimir Putin to cancel his recent ban on flights between Russia and Georgia. "Allow flights between Georgia and Russia, as Russian citizens in Georgia are in safety. As for the protest rallies – this is the right of the Georgian citizens”, the text of the petition reads.
UNWTO’s Georgian head highlights quality tourism in Georgia
The social campaign under the hashtag #VisitGeorgia #SpendYourSummerinGeorgia continues in Georgia where Georgians as well as foreign visitors share their personal experience of travelling in Georgia and inviting everyone to support the tourism industry by travelling in Georgia this year.
The anticipated drop of tourists from from Russia, following Russian President Vladimir Putin’s ban on flights to Georgia this summer, “is reflected on the currency market”, announces the National Bank of Georgia (NBG).
Georgian winter wonderlands are being transformed into a hot summer destination, inviting the visitors to cool summer days in fresh air and green environment.
Georgian PM's special representative for relations with Russia Zurab Abashidze said both Georgia and Russia are willing to preserve the positive dynamic of trade relations. Abashidze held a phone conversation with the Russian Deputy Foreign Minister Gregory Karasin yesterday.
Passengers of Batumi-Moscow flights have had their temperature checked at Moscow Airport Domodedovo, reports Russian media.
Head of the National Bank of Georgia (NBG) Koba Gvenetadze says that external factors and fewer tourists have made an impact on the exchange rate of the national currency, with one US dollar costing 2.93 GEL as of today.
Georgia is a safe and popular tourist country, said the Minister of Foreign Affairs of Georgia David Zalkaliani at a meeting with the diplomatic corps today in Tbilisi. "Georgia is recognised as a safe country by the European Union and despite the recent situation, no incident has been observed [of assault on] foreign citizens or tourists [visiting our country]”, Zalkaliani said.