Tourism revenue declines in Georgia, gov’t offers 2 programmes to support industry

The Georgian tourism industry generated $374.7 million in July 2019 or $57.8 million less (-13.3%) compared to the same period of 2018, show the latest data published by the National Bank of Georgia.

In January-May 2019, international tourism revenue reached $1.1 billion, which is $101 million more compared to the same period of 2018.

About $3.2 billion was generated from tourism in Georgia in 2018, which was $498 million more compared to 2017, said the GNTA.

Meanwhile, in all of 2017 international tourism revenue reached $2.7billion, which was $594 million more compared to 2016.

Last month Georgia hosted 1,099,474 international visitors (+5.8%) and 570,482 tourists (+1%), says Georgian National Tourism Administration. 

• Number of tourists visiting Georgia increases 8% in Jan-July 2019: Most visitors from Russia

Georgian Prime Minister Mamuka Bakhtadze commented on this issue today and said that the government is launching two programmes that will support the tourism industry of Georgia and soften the impact of the Russian flight ban that started on July 8.

We understand that the tourism industry needs the most support… we have created two programmes to support small and medium enterprises operating in the field of tourism. One programme is about supporting the construction of hotels … [while] the second programme aims to co-finance interest rates. Presentation of this programme will be held in September”, said Bakhtadze. 

Bakhtadze said that the government will ensure co-financing on bank loan interests for existing small hotels, and the state will serve as the guarantor for the construction of new ones.

• How to mitigate the Russian flight ban: Gov't offers credit benefits to tourism industry

PM Bakhtadze said that the government officials have intensive communication with small and medium entrepreneurs and create the programmes following the information provided by them.