Coronavirus impact: Georgian tourism to see 30 mln GEL loss per month
Economy Minister said that despite this challenge, the lari is strengthening and the Georgian economy is growing. Photo: TAV Georgia.
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Georgia’s tourism sector will lose about 30 million GEL per month (about $10.79m/€9.93m) following the coronavirus ban on travel from China and Iran, announces Georgian Economy Minister Natia Turnava.
The direct damage caused by suspending the flights with Iran and China will amount to at least 30 million GEL per month. Depending on how long [coronavirus crisis] lasts, the damage will increase, but I hope the world will quickly deal with this challenge”, Turnava said.
Minister Turnava said that as the coronavirus is a global challenge, the global economy, trade, aviation and tourism will be ‘seriously’ damaged.
In Georgia we are doing our best to protect our citizens’ health… that is why we took this unpopular measure and suspended flights from Iran and China”, Turnava said.
She added that despite this challenge, the Georgian national currency the lari is strengthening and the Georgian economy is growing.
Despite all global challenges, whether it is regional shocks or coronavirus, the most important thing is that our economy is healthy. Our macroeconomic situation is one of the healthiest in the region. Our economy is growing, our export is growing, our national currency is strengthening. This is a result of right monetary and economic policy”, Turnava said.
The number of visits by international travellers to Georgia hit a historic high and reached 9,357,964 in 2019, which is an increase of 7.8 per cent in comparison to last year, says the Georgian National Tourism Administration.
From China 48,071 visits were made in 2019 which was 50.9 per cent increase compared to 2018. As from Iran, 141,997 visits were made last year which was a 51.2 per cent decrease.
Five patients with flu symptoms will be tested in the Lugar Laboratory in Tbilisi in order to diagnose whether they test negative for the new coronavirus.
Georgia still remains in the low-risk zone for the spread of the coronavirus, though the National Disease Control Centre has begun strengthening efforts in order to efficiently respond to the recent China-born coronavirus COVID-19 outbreak, Amiran Gamkrelidze, the head of the National Disease Control Centre (NCDC) has announced today.
The Government of Georgia has made a decision to suspend direct flights with Iran amid the recent coronavirus outbreak. The Foreign Ministry announced today that this aims to prevent the spread of the virus to Georgia and to protect its citizens.
The Lugar Laboratory in Tbilisi will have a new test to diagnose the new China-born coronavirus 2019-nCOV starting February 4, said the head of the National Centre for Disease Control and Public Health Amiran Gamkrelidze.
Georgian Health Minister Ekaterine Tikaradze announced today that a Georgian citizen who recently travelled to Iran for business has tested positive for the coronavirus. Tikaradze said that the individual who returned to Georgia via Azerbaijan yesterday was immediately delivered to the Tbilisi infectious disease hospital and did not have any communication with other citizens, except for border guards.
Georgia has imposed a travel ban on Iran, after a Georgian citizen who recently travelled there has tested positive for the coronavirus. The intergovernmental coordination group ld by Prime Minister Giorgi Gakharia gathered on Wednesday after the first case of the infection has been confirmed in the country earlier that day.
Georgian Prime Minister Giorgi Gakharia has responded to the detection of the first case of the new, China-born coronavirus Covid-19 in Georgia, stating that ‘there is no reason to panic, as the government is in absolute control of the situation.’ “We have no reason to panic. The Health Ministry, all responsible agencies and the inter-agency council [created to prevent the spread of the coronavirus in the country] are in total control of the situation,” Gakharia said.
The Georgian government has issued a new decree to prevent the spread of the new, China-born coronavirus Covid-19, making amendments in the January 28 decree following the confirmation of the first case of the coronavirus in the country yesterday. The decree instructs various state agencies to present their action plans against the spread of the respiratory infection and their budgets by March 1, 2020.
15 individuals have been placed under quarantine for two weeks and will be under the supervision of medics while they are tested for the new coronavirus in the Lung Diseases Rehabilitation Centre of Abastumani, a small town in Georgia’s Samtskhe-Javakheti region.
The Russian controlled Abkhazia region has announced it is barring entry 'to all foreigners except Russians', including the only crossing point connecting the region with the rest of Georgia because of the new, China-born coronavirus.
Russia will send mobile brigades to Georgia’s occupied Abkhazia region ‘to prevent the spread of the new, China-born coronavirus’.
The Land Transport Agency has suspended freight transportation to Italy and Iran amid the coronavirus outbreak, reports the press office of the agency. They also have cancelled the validity period for permits which had already been issued.
Export of Georgian wine to China has decreased by six per cent in February 2019 due to coronavirus outbreak, says the deputy Agriculture Minister Khatia Tsilosani. However, Georgian wine export grows to the European and the US markets, said Tsilosani.
Irish low-cost airline Ryanair is reducing the number of flights from Georgia to several destinations in Italy following the request of the airports of Georgia in order to prevent the spread of coronavirus in Georgia, announces the Ryanair.
The total number of arrivals by international non-resident travellers coming to Georgia in February 2020 decreased by 0.7 per cent compared to the same period of last year and amounted to 466,409, says the Georgian National Tourism Administration.
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
Enterprise Georgia is starting a new programme today to cofinance family-owned, small and medium-size hotels in Georgia. The programme will seek to alleviate financial problems in the tourism industry due to the spread of the coronavirus.
Georgian economic growth may drop to between 0.8 and 3.9 per cent this year, reports the ISET Policy Institute (ISET-PI), one of the first university-based think tanks in the South Caucasus based at the International School of Economics at Tbilisi State University (ISET).
Georgian economic growth may drop to between -6 per cent to 2.1 per cent this year due to the new coronavirus crisis, says Galt & Taggart, depending how the crisis plays out. Galt & Taggart gives three possible scenarios (optimistic, mild and pessimistic), according to which Georgian economic growth could differ based on the length of the crisis.
Georgia is striving to become the first country that opens its doors to foreign tourists after months of lockdown due to coronavirus pandemic. Georgian Economy Minister Natia Turnava said that the tourism sector needs special support to overcome the challenges it faces today and that "we are working on a tourism support programme" that includes anti-crisis measures as well as future incentives.