Tourism Development Georgian Experience

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Georgia: International RankingsLeading Reformer in 2005-2009 in ECA region

“Ease of Doing Business” (Doing Business 2012) – 16th place (up from 17th in 2011)

Georgia is among 10 TOP countries in:1st place in Registering Property4th place in Dealing with construction Permits7th place in starting Business8th place in Getting Credits

Source: World Bank

“Index of Economic Freedom 2012” 34th place – Moderately Free

(ranked 16th out of 43 countries in the region of Europe)Improved scores in:

Fiscal Freedom – up by 0.3 pointsSource: Heritage Foundation

Doing Business

UkraineRussia

TurkeyAzerbaijan

Armrnialithuania

EstoniaLatvia

GeorgiaNew Zealand

Hong KongSingapure

152120

7166

5527

2421

16321

up from 112 in 2006

Index of Economic Freedom

UkraineRussia

AzerbaijanTurkeyLatvia

ArmeniaGeorgia

LithuaniaEstonia

AustraliaSingapore

Hong Kong

164143

9267

5636

3424

14321

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Key Reforms that changed Georgia forever Free market economy and business friendly environment

Deregulation of businesses

Eradication of corruption

Decentralization of power

Improvement of public services

Infrastructural developments

Energy security and efficiency

Police reform

Freedom of media

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Interesting FactsThe birthplace of Europe’s first civilization

Europe’s highest mountains

Cradle of wine

One of the oldest Christian countries

Rich historical and cultural heritage

Unique alphabet

Europe’s most diverse and unspoiled nature

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Facts and Figures Share of tourism in the exports of services : 40%

Share of tourism in total output : 7%

Income from international tourism : USD 1 Bln

FDI in hospitality sector: USD 20 million (17% growth)

The New York Times ranked Georgia the 6th among 41 destinations to visit

Tbilisi has become one of the safest capitals in the Western World comparable to Lisbon or Vienna

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Statistics International Travelers

2009 2010 2011

1,500,049

2,031,717

2,822,36339%

35%

2011: 9 months 2012: 9 months

2,067,909

3,229,190

56 %

Country 2012: 9 months Change %

Turkey 1 112 348 114%

Azerbaijan 684 094 32%

Armenia 636 497 24%

Russia387 466 87%

Iran 74 889 50%

Ukraine55 303 25%

Israel 25 991 23%

USA 22 785 21%

Germany 21 529 21%

Poland 17 780 75%

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Purpose of Travel and Expenditures

Average expenditure by purpose of visit

Business and pro-fessional

Leisure/recreation

Visiting friends and relatives

$596

$395 $257

Average expenditure USD 331

Purpose of visit

Leisure

Visiting friends/relatives

Transit

Business or Professional

Shopping

Employment

Education or trainings

Health and Medical Care

Other

40%

25%

9%

8%

7%

2%

2%

1%

6%

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Supportive regulatory environment

Development of Infrastructure

Incentives for investors: Free Tourist Zones (Kobuleti and Anaklia)

Key Directions

Free Land

Free Hotel Master Plan

Free casino license for hotel capacity over 80 rooms

Exemption from profit and property taxes for 15 years

Fully provided engineering utility networks and corresponding outdoor infrastructure

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Capacity building

Domestic tourism development

Product diversification

Active marketing campaigns in target markets

Travel facilitation

Sustainable growth

Key DirectionsG

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Thank you