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The research is carried out under IBDIPC's project “Black Sea Network for Sustainable Tourism-Strategies for joint tourism marketing and development in the Black Sea region (BS NST)”.
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Marketing research of Wine-Tourism Sector in Georgia
Trends and challenges in Georgian Wine Tourism
The research is carried out under the project “Black Sea Network for Sustainable Tourism-Strategies for
joint tourism marketing and development in the Black Sea region (BS NST)”.
12/20/2014
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Georgian Wine Association
Tatiana Jaiani
Table of Contents List of Abbreviations ...................................................................................................................... 3
1 General Information ............................................................................................................... 4
1.1 Geographic situation ....................................................................................................... 4
1.2 Political system ............................................................................................................... 4
1.3 Socio economic conditions ............................................................................................. 5
1.4 Income, poverty and employment ................................................................................... 5
2 Background and problem statement ...................................................................................... 9
2.1 Introduction ..................................................................................................................... 9
2.2 Project Background ...................................................................................................... 10
2.3 Problem Statement ....................................................................................................... 10
2.4 Objectives and Vision ................................................................................................... 11
2.5 Research Methodology ................................................................................................. 12
3 Wine Tourism in Georgia ..................................................................................................... 12
3.1 Introduction ................................................................................................................... 12
3.2 The Georgian Wine Industry ......................................................................................... 13
3.2.1 The History of Georgian Wine Industry ................................................................. 13
3.2.2 Georgian Wine Regions ........................................................................................ 14
3.2.3 Georgian grape varieties ....................................................................................... 16
3.2.4 Winemaking technology ........................................................................................ 18
3.2.5 The business environment of Wine Industry in Georgia ........................................ 19
3.2.6 SWOT analysis of Georgian Wine Industry ........................................................... 21
3.2.7 The Development of Georgian Wine Tourism Industry ......................................... 22
3.2.8 Wine Tourism in context ........................................................................................ 23
3.2.9 Market segmentation ............................................................................................. 24
3.2.10 Georgia a niche market for international visitors ................................................... 25
3.2.11 Wine Tourism system ............................................................................................ 25
3.2.12 Profile and Motivations of Tourists ........................................................................ 25
3.2.13 Accommodation types ........................................................................................... 32
3.2.14 Catering (Food and Wine) ..................................................................................... 33
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3.2.15 Wine and Entertainment ........................................................................................ 33
3.2.16 How satisfied are the tourist .................................................................................. 35
3.2.17 Advantages and disadvantages of wine tourism for wineries ................................ 35
3.2.18 Trends and Challenges in Wine Tourism .............................................................. 36
3.2.19 Wine Tourism Product characteristics and benefits .............................................. 40
3.2.20 Services offered by Tour Agencies in Georgia ...................................................... 42
4 Wine Tourism Marketing ...................................................................................................... 43
4.1 Introduction ................................................................................................................... 43
4.2 Marketing process ........................................................................................................ 43
4.3 The marketing process ................................................................................................. 44
4.4 Marketing and Promotion in the wine tourism industry ................................................. 45
4.4.1 Wine sales and sales promotion ............................................................................ 46
4.4.2 Advertising and promotion ..................................................................................... 48
4.4.3 Personal selling of wine products .......................................................................... 50
4.4.4 Public relations ...................................................................................................... 50
4.4.5 Direct marketing .................................................................................................... 51
5 Conclusions and Recommendations ................................................................................... 51
5.1 Recommendations for the Georgian wine and tour companies .................................... 53
5.2 Areas for future research .............................................................................................. 55
6 Bibliography ......................................................................................................................... 56
7 Table of Figures ................................................................................................................... 57
8 Annexes ............................................................................................................................... 58
8.1 Project Presentation ..................................................................................................... 58
8.2 Questionnaire ............................................................................................................... 61
List of Abbreviations GDP- Gross Domestic Product
GIZ- Gesellschaft für Internationale Zusammenarbeit
GWA- Georgian Wine Association
PR- Public Relations
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1 General Information
1.1 Geographic situation
Georgia is located between east Europe and Asia. It is part of the Caucasus region and is bordered by
black Sea, Turkey, Armenia, Azerbaijan and Russia. It covers an area of around 69.700 square meters.
The total population is 4.5 million.
Figure 1.1 Map of Georgia
1.2 Political system
Since 9 April 1991 Georgia is proclaimed as independent state.
The president is head of state. He manages and implements the domestic and foreign policy of the
country; ensures the unity and integrity of the country, and the activity of government bodies. The
president is the highest representative of Georgia in foreign affairs while the prime minister manages the
country.
The parliament of Georgia consists of 150 members. It exercises legislative power and general control
over the foreign policy.
Georgia consists of nine regions and includes two autonomous republics: Adjara at the black sea cost in
the south west of Georgia and Abkhazia in the northwest part of the country.
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1.3 Socio economic conditions
Georgian economy suffered with the collapse of the Soviet Union in the beginning of 90th. The economic
situation further worsened with the armed conflicts and civil strife in the beginning of 90th.
Massive unemployment, deterioration of infrastructure high inflations and energy crises are only the few
elements that Georgian population faced in these years.
With the help of international organizations a series of reformed has taken place stabilizing thus the
economy of the country.
The economic growth started to accelerate in the early 2000, reaching a two digit growth rate in 2003.
The World Bank expects Georgia to have 6.3 percent economic growth in 2014. The estimate was
published in the Bank’s Global Economic Prospects 2014, which reads that the prognosis for economic
growth in Georgia in 2014 is 6.3 percent. The expectation for 2015 is also 6.3 percent and 6.5 percent for
2016. In 2013, Georgia’s economic growth was 2.5 percent
Agriculture – an important sector for Georgian economy and larger contributor to Georgia’s GDP. While
there was a slight decline in agriculture, growth has been broad based, and was led by manufacturing
(especially mineral products, food processing, and alcohol/ beverages) and construction (driven mainly
by sustained high levels of public investment). The growth in services was supported by an expansion in
transit (particularly to and from Armenia, Azerbaijan, and Central Asia), financial intermediation, hotels
and restaurants, transport, and communications. In addition, the Government’s efforts to promote
Georgia as a tourist destination helped raise tourism revenues by 56 percent in 2012.
GPD showed positive results since 1998, despite the fact that steady decline was observed beforehand.
Despite the impressive economic growth in recent years, a substantial part of Georgia’s population is still
living in poverty. The official subsistence level is around 160 GEL and nearly the half incomes below 50
GEL. Between 2004-2008 the annual economic growth was up to 6.8 percent and only the half in 2008
during the conflict with Russia and global economic crisis.
Despite the fact that economy quickly recovered from the dual shock with growth rates in 2010 and 2011
the poverty still remains as a critical issue in the country. Poverty rates differ across regions and
population groups. Income disparities are substantial with estimated Gini coefficient of 0.42 in 2011.
Existing evidence suggests that some groups of the population are particularly disadvantaged regarding
access to assets and basic services, and have fewer opportunities to engage socially and politically.
The most pressing issues are inadequate housing conditions and high levels of unemployment.
1.4 Income, poverty and employment
Based on data 2013, around half of the population in Georgia lives below the official substance level
159.6 GEL. Poverty rates in the urban area are higher than in rural areas. In average share of
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population under poverty threshold (Registered Poverty) in (%) is distributed as follows:
Figure 1.2 Population under poverty
The poverty share between populations is closely linked to the unemployment rate in Georgia.
The chart below presents the unemployed rate since 2006. The highest unemployed were achieved in
2016 by 16.9 %. Currently the rate decreased until 14.6%
Figure 1.3 Unemployed rate in Georgia
Consequently, unemployment remains the most significant public policy challenge in Georgia. The
capital-intensive nature of Georgia’s robust growth performance was reflected in relatively high
6.4 8.4
9.9 9.7 9.2
9.7 9.7
1995 2000 2005 2010 2015 2020 2025
1
3
5
7
Series1 Series2
2006 2007 2008 2009 2010 2011 2012 2013 2014
13.8 13.6 13.3
16.5 16.9 16.3 15.1
15 14.6
1 2 3 4 5 6 7 8 9
Unemployed rate YEARS Unemployment rate
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unemployment, which remained in the 12-13 percent range even during the pre-crisis boom.
Unemployment peaked during the crisis to 17 percent in 2010 and then fell to 15 percent in 2012. With
economic transformation in Georgia, some of the older sectors and industries died, shedding their labor
force. New industries grew during the same period but have not been able to absorb the workforce as
effectively and overall labor demand remains weak while skills mismatches persist. The majority of the
work force – more than 55 percent – is employed in agriculture (mostly self-employed), which contributes
only 8.2 percent of GDP and is characterized by family-based subsistence farming.
The average wages per month in 2013 was around 773.1 GEL.
The economic growth went slightly down by 3.3 percentage in Gross Domestic Product (GDP) in
comparison to the previous year when it made around 6.4 percentage in real growth. .
The chart below displays the GDP at current prices and per capital in GEL and USD.
Figure 1.4 GDP per price and per capital
It’s interesting to observe that the share of tourism in the GDP is around 6 %.
Figure 1.5 Share of Tourism in GDP
0 5000
10000 15000 20000 25000 30000
Gross DomesAc Product
GDP at current prices mil.GEL
GDP per capita (at current
prices),GEL
GDP per capita (at current prices), USD
GDP at current prices mil.USD
Series1 2010 20743.4 4675.7 2623 11636.5
Series2 2011 24344 5447.1 3230.7 14438.5
Series3 2012 26167.3 5818.1 3523.4 15846.5
Axis Title
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The detailed breakdown is presented below.
Figure 1.6Share of Tourism in GDP detailed breakdown
6.30%
6.08%
6.19%
5.95% 6.00% 6.05% 6.10% 6.15% 6.20% 6.25% 6.30% 6.35%
2011 2012 total
Share of tourism in GDP Share of tourism in GDP
0.00 0.00 0.00 0.00 0.01 0.10
2011
2012
total
Millions
Total real GDP
Total tourism value added
Travel companies
Transport
Food objects
AccommodaAon
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In November 2013, Georgia initialed the Association Agreement including DCFTA (Deep and
Comprehensive Free Trade Agreement) with the European Union at the Vilnius summit, further
cementing its west-ward leaning political, economic and foreign policy.
The World Bank’s Country Partnership Strategy (CPS) with Georgia for FY2014 – 2017 is currently under
preparation and is scheduled for Board discussion in April, 2014. The current portfolio of operations in the
country consists of seven active investment projects financed by IDA credits/IBRD loans of US$540
million.
2 Background and problem statement
2.1 Introduction
Basking in a perfect climate for vines, the mineral-rich soil of these Southern Caucasus valleys nurture
over 500 indigenous and ancient grape varieties, most of which are grown regularly or are being revived.
Georgia considers itself as the “wine nation” and with some justification as even the word wine is believed
to have derived from the Georgian “Ghvino”. Researchers have uncovered grape pips of domesticated
Vitis vinifera in Georgia radiocarbon-dated to 6,000 BC. The many exhibits of ancient works of art and
artifacts with chased imprints of vines and clusters of grapes in the State Museum bear witness to
Georgia’s prime place in the history of vine and wine.
Wine is part of Georgian heritage including architecture, poetry and songs, and is associated with
celebrations, holidays and rituals. Winemaking remained the basis of the Georgian economy for
centuries.
The development of Georgian Wine sector needs broader awareness. Consequently it can’t focus only on
wine production and distribution. The figures above demonstrate how important the development of
Tourism is for the country and economic development of the state.
Georgian Wine Tourism focuses more on marketing and wine tourism product development on all new
and existing markets in order to ensure its continued success. International researches and best
practices over the world has shown that wine tourism can add value and benefit to country, wineries and
whole economic sector as a direct marketing channel. The purpose of this study is to conduct a
Marketing research of Wine-Tourism Sector in Georgia, identify gaps and challenges, trends and
innovations in this field as well as provide recommendations for further developments. Although the
research will not deeply delve into general tourism issues, describing and analyzing general tourism
policies at national level and their impact on tourism sector development some general principles and
categories which apply to all forms of sustainable tourism development will be mentioned here.
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2.2 Project Background
The research will be carried out under the project “Black Sea Network for Sustainable Tourism-Strategies
for joint tourism marketing and development in the Black Sea region”. Besides Georgia following
countries do also participate in this project: Moldova, Ukraine, Turkey and Bulgaria.
The main aim of the project is to support agro, eco and wine tourism development and prepare thus the
joint strategy for the region. The detailed presentation of the project is attached to this survey.
2.3 Problem Statement
Georgian Wine industry faces many challenges and has a huge room for improvements. Despite the fact
that Georgian is cradle of Wine and its wines are well known over the world, good quality wine and fair
prices are not enough anymore to sustain the industry, especially not with new competitors on the
market.1 According to the new trends and developments worldwide, the Georgian Wine Industry will not
be able to survive in the future if it continues to focus only on wine production. It is more important to
adopt a whole of wine value chain approach with a marketing orientation on Georgian wine business.
To understand this approach it’s very important what we mean when we speak about value chain
concept. So far the best definition of this term is given by Porter2. According to Porter, the main products
into the business and transformed into a final product by series of value adding processes and distributed
thought various distribution channels and sold to the end consumer by employing marketing and sales
strategies. The visualization of the channel is given below:
Figure 2.1: Value Chain approach by Porter
By applying Porters value chain model in the wine industry the value adding processes can be explained
as such:
The core product grape is growing in vineyards. Operations of the winery include harvesting, crushing
and fermentation as well as aging process of grapes (core product). The final product (wine)is than sold
1 Van Rooyen in Media Vision Consultants, 2008
2 in Barnes 2001
Inbound LogisAcs OperaAons Outbound
LogisAcs MarkeAng&Sales Service
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to the consumers via various distribution channels such as cellar door sales, wholesalers, retailers,
online, food and wine festivals, grape harvesting etc. which do belong to the concept of wine tourism.
As wine sales process is assisted by various marketing and service strategies, such as wine and food
festivals, wine and cultural events, wine and education, it’s closely linked to other sectors and should
cooperate for better business and sector development.
By taking a closer look to this table it is possible to identify the area in which wine tourism can add value
in the value chain of winery. Activities listed above such as door sales, festivals, tours are all activities of
wine tourism. Thus we can conclude that in at least three links of the value chain, namely outbound
logistics, marketing &sales and service wine tourism can add value to the wine industry.
In mid 90’s researches have observed that wineries can benefit from cooperation vs. partnership with the
tourism industry. 3 These benefits include:
• Increased wine sales
• Aiding cash flow
• Fostering brand loyalty
• Higher profit of winery sales
If we will take a closer look to the wine tourism development in US, Spain, New Zealand or Australia and
examine the average spending of tourist on wine tourism activities, we would definitely note the financial
benefit for country, sector and wineries itself. 4
However in Georgia the potential of wine tourism is not fully explored. For that reason it was decided to
conduct a marketing research which should elaborate mainly following aspects:
• Analyses existing situation of Wine Tourism Sector in Georgia (Status quo in Kakheti region);
• International perspectives of wine tourism, market demands and specifics for promoting wine
tourism packages;
• PR and Marketing of Wine Tourism products
Despite the fact, that Wine tourism is not a new term in Georgia, the studies regarding its development
are very rare or old, and thus this research will significantly contribute to the existing knowledge about
wine tourism as well as to development of sustainable win tourism products.
2.4 Objectives and Vision
The primary objective of this study is to
3 Dood, 1995, Getz.2000
4 Everything about wine tourism development
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• To identify status quo of wine tourism sector in Georgia
The secondary objectives include:
• To identify challenges and trends for wine tourism in Georgia
• To compile a profile of the visitors to the wineries
• To determine the perceived advantages and disadvantages of wine tourism for Republic of Georgia
• To investigate the range of wine tourism products, services available at wineries in Kakheti region
• To investigate whether the wine tourism plays an important role in the economic development of
country
• To determine the perception of wineries in the Kakheti region regarding wine tourism in branding
wineries
• To elaborate wine marketing activities and tools
2.5 Research Methodology
This research consists of two stages: secondary research and primary research.
The secondary research in this study comprises an in depth literature review about trends and
challenges, concepts, facts and figures relevant to this study.
The primary research will be carried out using email questionnaires especially in Kakheti region, which is
the home of around 80 wineries, out of which most cultivate, own vineyards and are involved in wine
tourism activities.
3 Wine Tourism in Georgia 3.1 Introduction
The focus of this study is to investigate the status quo of wine tourism sector development in Georgia.
However, before the discussion starts its important to make a brief overview of key products- wine and
Tourism. This chapter describes the development of wine history and culture in Georgia, as well as
provides information about wine tourism developments in Georgia, Kakheti region.
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3.2 The Georgian Wine Industry
3.2.1 The History of Georgian Wine Industry
The evolution of Georgian Wine culture started 8000 years ago. Since that time the development of vine
and wine sector played a crucial role in the history of Georgia.
Throughout the history, there were times when the wine sector was strong enough and Georgia has
supplied the surrounding neighboring countries with wine. There were also the times, when vineyards
have been cut and destroyed, but wine production in Georgia has never stopped and it can be surely
stated that Georgian wine counts 8000 vintages.
Georgian wine has been deeply influenced by the Russian market. Beginning from 19th century, Russian
Empire and later Soviet and socialistic countries became the traditional markets for Georgian wines. On
the one hand, Georgian wine was favorable and has gained positive reputation on this huge market, but,
on the other hand Georgian wine could not reach out to other countries and the rest of the world didn’t
have the chance to know it.
At the end of 20th century, political situation in Georgia has heavily affected Georgian wine sector in a
very negative way. Since 2000 the sector has started becoming stronger and export has been developing
fast too. Though, it was followed by the embargo on Georgian wines from the Russian side in 2006 which
was a big financial loss for the whole sector in the country concerning the fact that 80% of total wine
export was directed to Russia beforehand.
Georgian wine companies started to find new markets, developing new products, improve the product
quality and services. The awareness of country Georgia rose steadily and more people got interested in
the country which presents a fascinating mixture of east and west. In country, where humans first
discovered viticulture 8000 years ago. Since that time it faced many challenges and problems but the
development and innovation growth of the sector has never stopped here.
Winemaking remained the basis of the Georgian economy for centuries. Through the long history of the
Georgian nation, the vine has gained iconic significance in Georgia. It is a symbol of regeneration, of
wealth and plenty.
The continuous importance of winemaking and drinking in Georgian culture is also visible in various
antique works of art. South of Tbilisi in Shulaveris Gora researchers have uncovered grape pips of
domesticated Vitis vinifera, radiocarbon dated to about 6 000 BC as well as 6th –millennium BC pottery
fragments with wine residue from resonated. In the western province of Imereti – known to the Greeks as
a Colchis, where Jason sought the Golden Fleece archeologists at Vani have found drinking vessels and
other objects d’art with repousse wine motifs from th 5th and 4th centuries BC. The State Museum of
Georgia has on display a cup of high-carat gold set with gems, an ornamented silver pitcher and some
other artifacts dated to the 2nd millennium BC. From classical Antiquity, Georgian museums display a
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cameo depicting Bacchus, and numerous sarcophagi with wine pitchers and ornamented wine cups
found in ancient tombs.
From the 4th century AD, wine has gained further importance in Georgian culture due to Christianization
of the country. The national saint (and bringer of Christianity to Georgia) is St Nino of Cappadocia, whose
distinctive droop-sided cross is so shaped because it was made from vine wood and bound with her own
hair. Georgian fighters traditionally carried vines in their armour. If they fell, a vine would grow - travelers
would then know a Georgian had died there.
The Academy of Higher Education seated at the Ikalto Monastery in Kakheti, offered to study Agriculture
which included viticulture and vinification already in 12th century.
Despite many challenges the development process and innovation growth never stopped here. Steadily
more people were interested in Georgia and its wine culture. The unique selling point for Georgia which
are broadly used by national tourism agency, tour companies, wine sector representatives focus are as
follows:
• Georgia is one of the oldest wine-making countries;
• Georgian wine is closely linked with the GEORGIAN culture and history;
• There are more than 500 unique, endemic wine grape varieties;
• Georgia offers inside view in unique wine-making methods and techniques;
3.2.2 Georgian Wine Regions
Georgia has following vitucultural zones: Kakheti, Kartli, Imereti, Racha-Lechkhumi and the humid
subtropical zone.
KAKHETI REGION Kakheti which grows 70 percent of Georgia’s wine and brandy grapes, is Georgia’s
richest agricultural land in the south east of the country in the Alazani and Iori valleys. The climate here is
moderate with an active temperature summation of 3800 to 400 grades Celsius/6800 to 7200 of and an
annual rainfall of 400 to 800 mm(32in). Cinnamon forest and calcareous soils, some of them alluvial, are
found in the zone.
In terms of mesoclimatic conditions and types of wine produced, Kakheti can be subdivided into three
macro regions (Tsinandali, Kvareli, Kindzmarauli, Manavi, Napareuli, Akhmeta, etc.)
The most important for wine production include Telavi, Sagaredzho, Gurdzhaani, Kvareli, Akhmeta and
Signagi. The principal grape varieties in Kakheti is Saperavi for reds and Rkatsiteli, Kisi, Khikhvi and
Kakhuri Mtsvane for whites. In recent years spread of French grape varieties Chardonnay and Sauvignon
Blanc has been observed too, in very low quantities though.
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Alongside more modern technologies, these regions produce the distinctive Kakhetian wines, made
peculiarly tannic by fermentation in special earthenware jars (Qvevri-not unlike the tinajas of Valdepenas)
followed by an extended Maceration of three of four months, very much as wines were made thousands
of years BC. It is in this region that Georgians and foreign investors have invested most of their hopes for
the future of Georgian wine.
KARTLI REGION Kartli is the heart of Georgia, inspired the original name for the country Sakartvelo, and
occupies a vast territory in the Kura valley, the Gori and Mukhran lowlands included. These wines are the
most European and the region produces materials for sparkling wines (especially) and brandy that
account for 15 per cent of Georgia’s wine and Brandy production. The zone is moderately warm, with hot
and dry summers; vineyards have to be irrigated because of the low rainfall 9350 to 500mm (19 in) per
year). Main grape varieties are Chinuri, Goruli Mtsvane, Aligote, and Chardonnay for whites and Pinot
Noir, Tavkveri, and other for reds. The capital of Georgia Tbilisi, where wineries producing sparkling
wines and brandy are located, is in this zone. Tbilisi’s oldest winery was founded in 1897.
IMERETI REGION Imereti is the ‘stomach’ of Georgia, its gastronomic capital and keeper of national
traditions, not least Georgia’s famous hospitality. In the first half of the 19th century, Imereti’s capital
Kutaisi was the centre of Georgina wine-making and wine-trading. Imereti is in the eastern part of
Georgia, in the basins and in the gullies of Rioni, Kvirila, and other rivers. The most important grape
varieties are Tsitska, Tsolikauri, and Krakhuna for whites and Aladasturi, Dzelshavi, Mgaloblishvili, and
Otskhanuri sapere for reds. Nowadays the most important Imereti wine regions are Zestaponi, Terdzhola,
Vani, and Bagdati. As well as modern European methods, Imereti also uses a very particular wine-
making technique, similar to kakheti’s except that grape skins (kvevri, here called Churi) are added to the
clay jars during fermentation, and this is followed by a maceration of six to eight weeks. The vine variety
particular to this region is Tsitska.
RACHA _ LECHKHUMI REGION Racha-Lechkhumi is Georgia’s smallest wine region but one of the
country’s most important wine-making centers. It consists of two sub regions, Ambrolauri and Tsageri,
north of Imereti, on the banks of the Rioni and Tskhenistskali rivers. Moderate rainfall (100 to 1300 mm
(50 in) a year), southern exposed soils, and the assortment of local vines varieties such as Tetra, Tsitska,
Tsolikauri for whites and Aleksandrouli., Mudzhuretuli, Usakhelouri, Orbeluri Odzhaleshi, and Saperavi
for reds encourage grapes with a sugar content as high as 30 per cent. The region is famous for its
natural semi-sweet wines such as Khvanchkara.
The humid subtropical zone is a vast territory which contains Abkhazeti, Achara, Guria, and
Samegrelo, all known for both semi-sweet and dry wines.
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As for today the total vineyard area in Georgia sums up to approximately 5 45 thousand hectares, which
is significantly less compared to this data 30 years ago (almost 120 thousand hectares) and is
approximately equal to the number from 1930’s.
New cadastre system is carried out by National Wine Agency and will be available end of 2015.
The most developed wine region is Kakheti. It is also home for around 80 wine companies. The second
big wine region Racha Lechkhumi only has 2 main wineries and various small wine producers, mainly
family owned wine cellars. Kartli and Imereti regions just started to redevelop wine production, so only
few private, family owned wineries exist here.
Due to the lack of data no detailed statistic can be provided elaborating number of companies, private
owned wine cellars in these regions.
3.2.3 Georgian grape varieties
Wild vines are widely distributed in Georgia, where Vitis Vinifera Silvestris can still be seen. By both
natural and artificial selection, they have given rise to among existing 4000 vine sorts more than 500 are
indigenous grape varieties of Georgia. Only 38 varieties are officially grown for commercial viticulture in
Georgia.
Thirty-eight grape varieties are officially allowed for commercial viticulture in Georgia including Saperavi
and Rkatsiteli, the two most widely planted varieties, plus, Chinuri, Goruli, Mtsvane, Kakhuri Mtsvane,
5 According to 2004 census, the total area of vineyards in Georgia has summed up to 37.5 thousand hectares. Though, the census did not include the vineyards in the possession of the residents of the following cities: Tbilisi, Rustavi, Kutaisi, Poti and Batumi, which sum up to approximately 7-10 thousand hectares altogether.
51.862
47.125
29.5 37.472
41.405
54.743
48.142 52.149
55.503
73.5 93.3
98
111.5
112.3
103.3
45
0
20
40
60
80
100
120
1914
1917
1921
1926
1937
1940
1947
1953
1955
1965
1970
1975
1980
1985
1990
2004
Area of vineyards in Georgia (1000 hectares)
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Odzhaleshi, Orbeuli, Odzhaleshi, Aladasturi, obchuri, Dzvelshavi, Aligote, Tsolikauri, Tsitska Pinot Noir,
Chardonnay, cabernet Sauvignon, as well as the the following uniquely Georgian high-quality varieties:
Usakhelauri, Aleksandrouli, Mudzhuretuli, Otskhanuri Sapere, Krakhuna, Chkhaveri, Tetra and khikhvi.
These last do not yield generously and so were largely ignored in the soviet era. One of the difficulties
Georgia currently faces in exporting wines is that foreign consumers are so unfamiliar with the flavors of
these traditional Georgian grape varieties.
The main grape variety in Georgia is Saperavi under reds and Rkatsiteli under whites. The graph below
demonstrates the distribution of grapes in Kakheti region.
Figure 3.1 Grape varieties in Kakheti Region
If would have a closer look to the vineyard area in Kakheti region, we would see that Saperavi still
remains the main grape variety cultivated by wine companies and grape growers. Rkatsiteli is on the
second place due to its high yield and high level of resistance.
Figure 3.2 Grape yield per ha in Ton
32%
26% 9%
7%
7%
1% 7%
1%
1%
5%
3% 1%
Grape varie<es Saperavi
Rkatsiteli
Mtsvane
Kisi
khikhvi
Sauvignon Blanc
Cabernet Sauvignon
Mtsvivani Kakhuri
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*the international grape varieties are mostly cultivating by one single company Besini.
Based on the figures above it could be summed up that the red wine production has a leading role on the
market. Consequently more red wines are sold on international markets.
Figure 3.3 Wine sales
3.2.4 Winemaking technology
Georgians wine culture, based on its ancient ways and indigenous varieties, was influenced by Europe in
19th century, when Alexander Chavchavadze – poet, aristocrat, military officer and diplomat, introduced
European wine and wine making practices to Georgia. With a million ruble investment, Chavchavadze
acquired qvevris, constructed a Marani (wine cellar) and established a barrel workshop at Tsinandali.
Further exchanges between European and Georgian grape varieties/ wine started thanks to Alexander
Chavchavadze. Antoine Mosanno planted Cabernet Sauvignon vines in the eastern province of Kakheti,
Saperavi, 7.29
Rkatsiteli, 6.77
Khikhvi, 3.72
Kisi, 6.5
Mtsvane, 5.5
Cabernet sauvignon , 11
Merlo, 8
chardonnay, 29
Sauvignon blanc, 8.5
Red Wine 65%
White wine 33%
Other 2%
0%
Sales
19
the exchange with Germany in the early 20th introduced the Muscat variety to Georgia. Thus European
“Wine making Techniques” come to Georgia. Nowadays, the majority of Georgian wine companies are
producing wine using high quality modern facilities and techniques. However the traditional Georgian
Winemaking technique is still widely used in whole Georgia.
Wine made according to the “Kakhetian style”, where it is aged and stored in a special cone/egg-shaped
clay vessel known as a Qvevri has a great vogue not only in Georgia. The earliest qvevri known to store
wine date from the early Iron Age (7th century BC). Modern Qvevri can store from 800 to 3500 liters.
Qvevri is placed in the ground, helps to regulate storage temperature, keeping it between 14 and 15°C.
Wines produced in this way are noted for their high extraction and tannic content, distinctive aroma and
unique taste. Qvevri wine-making techniques differ from each other in Kakheti, Racha (here calls a churi),
Kartli and Imereti.
Knowledge and experience of Qvevri manufacture and wine-making are passed down by families,
neighbors, friends and relatives, all of whom join in communal harvesting and wine-making activities.
Children learn how to tend the vines, press grapes, ferment wine, collect clay and make and fire Qvevris
through observing their elders.
Since December 2013 the ancient Georgian traditional qvevri wine-making method has been approved
for inclusion into UNESCO’s List of Intangible Cultural Heritage (ICH).
3.2.5 The business environment of Wine Industry in Georgia
All industries, including the wine industry, function or operate in the marketing environment6. A winery’s
marketing environment consists of everything inside and outside the winery and can be defined as all the
factors that influence the marketing activities of the winery, either directly or indirectly7. The market
environment of the wine industry is composed of the micro environment and the macro-environment. 8
There are several variable within the marketing components that influence the winery :
• Competitors,
• Intermediaries
• Political&social environment
6 Bennett&Strydom, 2001:24
7 Bennett&Strydom, 2001:24
8 Kottler&Amstron, 2006:65
20
Figure 3.4 Marketing environment of a winery
A winery which aims to achieve success and performance in development should be aware of these
variables and must be proactive in leading the business in the right direction.
3.2.5.1 The macro environment of Georgian Wine (Tourism) Industry
The macro environment is composed of all the dimensions in broader society that influence an industry
and the organizations within it 9. Generally organizations cannot directly control external (macro)
environment, but these elements and changes in the external environment have a major influence on
organizations. 10 The elements in the external (macro) environment are popularly referred to PESTE
factors. PESTE stands for
• political
• economical
• social
• technological 9 Ehlers&Lazenby, 2007:103
10 Nieuwenhuizen&Rossouw, 2008:21
Macro environment
Micro-‐ enviroment
Winery
Political Social
Economic Technological Customers
Suppliers
Intermediaries Competitors
21
• environmental factors
Each of them are themselves influenced by
• local
• regional
• national
• global factors.
3.2.5.2 The micro environment of Georgian Wine (Tourism) Industry
The micro environment of wine industry refers to all factors or element within the company that influence
its performance and decision making process and could be controlled by business11.
The most influential factors include:
• Competition
• Suppliers
• Consumers
• Intermediaries
3.2.6 SWOT analysis of Georgian Wine Industry
The SWOT analyze of Georgian Wine Industry is provided on the one hand to monitor external and
internal marketing environment, on the other to summarize the trends, challenged and opportunities
within the Georgian Wine Tourism Sector
Figure 3.5 SWOT ANALYSE Georgian Wine
Strengths
• The variety of wines and wine growing
regions
• Unique terroir with many different soils and
different miclo climates
• 525 Endemic grape varieties
• Consumers interest in Qvevri wines
Weaknesses
• Low domestic per capital consumption (18-
20)
• Low Awareness at international level about
Georgia and Georgian Wine
• Production quality cannot be properly
managed or predicted
• Wine Export difficulties (high prices & weak
11 (Kotler&Armstrong, 2006) : 65
22
distribution channels )
Opportunities
• Wine Tourism
• Qvevri (wine making&qvevri building)
• Good trade relations with CIS countries,
Baltic states, “new Europe”
• Social trends towards “new” wine making
countries, indigoes grape varieties,
traditional wine making methods – Qvevri
• Social media marketing
• Increasing exports to USA, ASIA
•
Threats
• Wine embargo (Russia)
• Competition from other emerging wine
markets (e.g. China)
• Over production of wine worldwide
• Taxes and excise duties
• Global warming
• Natural disasters
3.2.7 The Development of Georgian Wine Tourism Industry The first official visits to vineyard were part of organized travel since the time of the Grand tour, and likely
even since the times of ancient Greece and Rome12. However, wine only became a specific travel
interest during the mid nineteenth this century13. There reasons could be summarized as follow:
• Transport evolution
• Social revolution
• Development of specific wine tourism products
• Desire to experience new countries and Wine
The development of Wine tourism in Georgia started in late 2000. Despite the fact that since that time
many things are done, a lot of investments have been made there are still many gaps and challenges for
proper Development of Georgian Wine Tourism.
The lack of national tourism strategy leads to the fact that there is no joint vision how to develop and what
to do in specific regions and specific places. With the support of world bank the national tourism Agency
is currently working on Tourism Strategy which would significantly support various tourism activities and
events on the one hand, on the other provide right directions for tourism sector Developments
12 (Hall, C.M& Mitchell, M, 2006, 2000),
13 (Hall C. , 2000)
23
3.2.8 Wine Tourism in context According to the World Tourism Organization,
travel and tourism is regarded as the world’s
largest and most diverse industry14. Along with
activities such as sports, hobbies and pastimes,
tourism is a form of recreation. Recreation is
defined as discretionary use of people’s leisure
time15.
Figure 3.6 Wine Tourism linkages to other Fields and activities
Tourism can be approach from three different perspectives:
• Industry
• Activity
• System
When Tourism is approached as an Industry , then definitions usually focus of the supply of tourism16.
When it refers to activity, then it tends to focus on demand 17.
14 (WTO, 2007b, p. 1)
15 (Hall&Page, 2006)
16 (World Travel and tourism Council's)
17 (Lubbe, 2003)
Wine Tourism
Agro Tourism
Eco Tourism
Sustainable Tourism
Culinary Tourism
24
As a system, Tourism combines the demand and supply of Tourism18.
There is no single definition for Wine Tourism. (Hall, 1998) define wine tourism as follows: “...visitation to
vineyards, wineries, wine festivals and wine shows for which grape wine tasting and/or experiencing the
attributes of the grape wine region are the prime motivating factors for visitors”. Other authors say that
wine tourism involves also developing a marketing and planning strategy19. In the Western Australian
Wine Tourism Strategy (2000), Wine tourism is defined: “...travel for the purpose of experiencing wineries
and wine regions and their links to lifestyle. Wine tourism encompasses both service provision and
destination marketing”.
Therefore wine tourism should not be understand as a single activity in vineyard. It is related to many
other fields vs. activities
3.2.9 Market segmentation Wine tourism market could be segmented in Georgia as follows:
Wine lovers Wine Interested Wine novice
Extremely interested in wines
and winemaking (especially
old traditional wine making
techniques)
High interest in wine Moderately interested in wine
but not familiar with
winemaking
Wineries may be sole purpose
of visit to destination
Moderate to high income
bracket, tend to be university
educated
Wineries seen as “just another
attraction”
Will have visited other wine
regions
Likely to have visited other
wine regions
May have visited other wine
regions
Likely to be a regular
purchaser of wine and food
magazine
Occasional purchaser of wine
and food magazines, Regular
purchaser of lifestyle
Moderate income and
education
18 (Hall&Page, 2006, p. 114)
19 (Getz D. D., 1999)
25
magazines
May be employed in wine and
food industry
Familiar with winemaking
procedures
Curiosity aroused by drinking
or seeing winery products
Highly likely to purchase at
winery and add name to any
mailing list
Likely to purchase at winery
and add name to any mailing
list
Opportunity for social
interaction with friends and
family
Potential for repeat purchase
of wine though having visited
winery
May purchase at winery but
will not join mailing list
Source: Hall&Macionis20
3.2.10 Georgia a niche market for international visitors According to Getz21 Wine tourism represents a kind of travel to a niche markets. Georgia could be seen
as a niche market for international visitors due to its
• history – 8000 vintages
• 525 endemic grape varieties
• Qvevri wine
• Landscape
• Customs and traditions
• Georgian Cuisine
• Wine and Food pairing
3.2.11 Wine Tourism system The Wine Tourism System is complex framework which includes consumer demand for wine tourism and
the industry supply of the wine tourism product to produce the wine tourism experience22 .
The main point of the model is the wine tourism experience or what the wine tourist gets while traveling
over the world.
3.2.12 Profile and Motivations of Tourists Similar to the wine tourism definition wine tourist profile divers from country to country. Depending on the
country’s location, continent and climate where are various characterizations of wine tourists.
20 (Hall&Macionis, 1998, p. 217)
21 (Getz D. , 2000)
22 (Hall C. , 2000)
26
There are three main categories of tourist visiting Georgia:
• Accidental
• Interested
• Dedicated
Accidental or curious tourists
Visit Georgia because there are curious to see Georgian wineries and regions in general, but would like
also to taste and visit Georgian wineries, mostly the traditional and small once. So the cellar door visit is
an opportunity for socializing. Their knowledge about wine is below average, but there are moderate
interested in wine. Due to the moderate income and education in Wine they may purchase some bottles
but unlikely to buy expansive one.
Interested wine Tourists
• Cellar door visit is an enhancement to their trip, but not the prime motivation for visiting the region.
• Moderate to high interest in wine
• Moderate to high income, usually tertiary educated
• Likely to have visited other regions or will come back to do it
• Likely to buy expensive wines and recommend it also to friends
Dedicated wine tourists
• Wine lovers who visit wine regions frequently as an integral part of a trip
• Above average knowledge of wine
• Extremely interested in wine and winemaking
• Mature, high income, high education level
• Likely to purchase wine at winery and come back to the region and winery
However the perceived profile of tourists to the wine regions cannot be provided as the majority of
wineries do not compile statistic. Hence the statistics are based primarily on the National Tourism
Agency’s figures.
27
Figure 3.7 Tourist in Georgia
While in France, Germany or Spain the amount of domestic (50.5 %) and international (49.5%) travelers
to wine regions is almost the same, in Georgia the majority of visitors are international tourists. The chart
bellows demonstrates some figures and countries from where the travelers are coming:
Figure 3.8 Countries of origin
There is a little difference between the number of male (53%) and female (46%) visitors. The small
variation in gender may indicate that wine consumption and visiting a winery is not gender specific, but an
activity that is enjoyed equally by both men and women.
1,500,049 2,031,717
2,822,363
4,428,221
5,392,303 5,059,832
2009 2010 2011 2012 2013 2014
Ministry of internal affairs
35%
39%
57%
22%
51389
33537
7410 2290 1589 878 552 321 289 186 182
Countries Visitors
28
Figure 3.9Tourists Gender
The largest age group of visitors is the category 25-44 (40 %). The smallest group of visitors (12%) are
older travelers 65+. It could be explained that the travel routes to Georgia are quite complicated. There
are only some direct flights in other cases travelers have to change at least one flight and spend several
hours in transit countries.
The duration of travel in Georgia is approximately up to 3 days. The majority of visitors are traveling alone
or with the family members and friends. The chart below demonstrates the detailed picture.
55%
45%
Tourists Gender Female Male
0%
5%
10%
15%
20%
25%
15-‐17 18-‐24 25-‐34 35-‐44 45-‐54 55-‐64 65 and over
Age
29
Figure 3.10 Accompanying person
Following motivation factors have been mentioned by visitors:
• To experience the ambience of the winery
• To experience the oldest wine culture and history
• To taste unique wine (Qvevri, Kakhetian Style etc)
• To taste completely different grape varieties
• To experience different wine regions
• To learn more about qvevri wine making techniques
• To taste already well known Saperavi, Kindzmarauli, Khvanchkara, Mukuzani
• Wine purchasing
• Enjoy the health aspects of wine
The average expenses of each visitor is around 300 US $. Thereby around 150 US $ is spending on
wine activities. The comparison to other countries where the travelers spend between 30 and 200 US $,
150 US $, is not bed. The spending differs according to the different regions and possibilities to spend
money. As already mentioned the rural area in Georgia is quite undeveloped so no services, good
accommodation or shopping possibilities could be offered to the guest. The development of these areas
would on the one hand support the local population on the other improve economic situation there.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
30
The tourists mainly arrive by mini bus or private vehicle. It means that mainly tourist from neighborhood
countries are coming to Georgia.
Figure 3.11 Means of transport
They mainly stay at private homes or apartments, or share a flat with friend and relatives. The majority of
travelers is not staying overnight and only passing Georgia while going to another point of destination.
Figure 3.12 Accommodation types
The tourist usually spend one day in Tbilisi and than they are traveling to other Wine regions and cultural
sites. The popular wine region in Kakheti with the cities Gurjaani, Telavi, Sighnaghi.
6%
53%
38%
3%
Means of transport
Train
Bus/minibus
Private vehicle
Rented vehicle
47%
1% 1% 0% 1% 0% 1% 2%
10% 6%
31%
0% 0%
Accomoda<on Types
31
Figure 3.13 Popular Places by tourists in Georgia
As marketing and PR play a crucial role in the development of wine and tourism field in Georgia, it’s quite
interesting to have a look on the main source of information. Figure 3.14 Information source
Books, Magazines, Travel Fairs or travel agencies influence only 0.3% of travelers to come to Georgia,
thereby previous visits, friends or relatives have a great influence of tourist decision making process.
The best time to discover Georgia is spring and summer. The beginning of autumn is an ideal period to
participate in wine tourism activities such as harvest, wine festivals, experience various wine making
techniques and other activities related to wine industry.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Batumi (KvariaA, Botanical garden, Gonio fortress) Borjomi (Likani, Mineral waters, Green monastery,
Gori (Stalin’s museum, Gori fortress) Kutaisi (GelaA monastery, Bagrat’s Cathedral,
Marneuli Mtskheta (SveAtskhoveli Cathedral, Jvari
Rustavi Sighnaghi (Bodbe Monastery)
Telavi (King Erekle’s museum and palace, Tbilisi
Zugdidi (Dadiani’s Palace) Gurjaani
4.90% 1.20%
3.80% 11.40%
3.40% 2.40% 3.30%
1.40% 4.10%
25.90% 3.10%
1.20% Popular Places
8% 36%
2% 58%
12% 0% 0% 0%
3% 0% 0% 0% 0% 1%
I don’t remember Friends & relaAves
OrganizaAon/business partner Previous visit
Television / Radio Travel guidebook
Travel agency / Tour operator Travel fairs
Internet Magazines/Newspapers
Doctor From school
Book I don't know
InformaAon source
32
3.2.13 Accommodation types
The massive development of Hotels and Guest houses started in Georgia together with tourism sector
development. Currently around 1000 private guest houses, hotels, motels and star hotels are operating in
Georgia. The distribution of numbers is quite diverse depending on the infrastructure capacities,
commodities in the region and tourism destination sides. Kakheti, the home of Georgian Wine culture has
144 Guesthouses and hotels, while in Adjara more than 250 accommodation possibilities exist. Very
divers is also the quality and price ratio. The prices range from 20 US dollar up to 300 US dollar. The
charts below present the accommodation quantities in the regions.
Figure 3.15 Accommodation quantities in the regions
The most common accommodation types used by visitors are private homes (31%) and apartment (10%).
The next most common accommodation option is a second residence (6%) or rented apartment (2%).
The detailed breakdown of accommodation types used by wine visitors is presented as follows:
1 2 4 8 16 32 64 128 256
Adjara
Samegrelo/Zemo SvaneA
Guria
Racha Lechkhumi/Kvemo SvaneA
Samtzkhe JavakheA
ImereA
KakheA
Kvemo Kartli
Shida Kartli
Mtzkheta MAaneA
Accommoda<on
33
Figure 3.16 Accommodation types
There are some donor organizations like GIZ that started to work on Guesthouse issues in Regions. For
Tsageri and Anakli are the first regions chosen by GIZ at this stage where the project aims to develop
standards for guesthouses supporting so the development of the region and wine and agro tourism field.
3.2.14 Catering (Food and Wine)
Despite the fact that there are thousands of restaurants in Georgia offering delicious Georgian courses,
the number of wine bars and wine restaurants is very low, although no statistic data is available.
3.2.15 Wine and Entertainment
The Tourist coming to spend their holidays in another country wants not only to spend their vocation in
nice and comfortable environment but also to experience something new, different or unusual.
Most tourists coming to Georgia tend to be most interested in art and culture tourism activities. The top
ten activities they tend to do include experience Georgian folklore, shopping, food and wine pairing,
adventure tours etc. The chart displays the type of activities undertaken by tourist.
47%
1% 1% 0% 1% 0% 1% 2%
10% 6%
31%
0% 0%
Accomoda<on Types
34
Figure 3.17Types of activities
International wine tourists are predominantly holiday visitors and travelers coming to visit their friends and
relatives. There is also a significant segment of visitors coming for shopping purpose. Only 3% of wine
tourist are in Georgia on business and 2 % ate here for education
Figure 3.18 Purpose of visit Georgia
33%
8% 11%
6% 6% 3%
24%
1% 1% 5%
7%
28%
1%
0%
5%
10%
15%
20%
25%
30%
35%
15.90%
5.40%
37.80%
1.70%
9.80%
0.90%
9.60% 3.90% 1.60% 3.00% 1.70% 2.40% 2.50% 2.30% 1.40%
Purpose of Visit Georgia
35
3.2.16 How satisfied are the tourist
In general Georgia delivers high satisfaction for international holiday tourists and this is no different for
wine tourism.
Wine visitors, with an average ration of 8 out of a possible 10, tend to be slightly more satisfied with their
visit to Georgia than the average visitors, who average 7 for overall satisfaction. Due to the lack of
statistic data the comparison with other countries is not possible.
To sum up the finding above we would get following profile of wine tourists:
• The largest visitor group is between the ages 25-45;
• They usually travel alone or with Family members;
• The average spending is around 150-120 US $ on Wine related activities and totally around 300
US $ for a visit;
• The average duration of stays is 3 Days, in wine regions 2 Days;
• Majority of wine tourists come from former CIS countries and neighborhood states;
• The majority of wine travelers are international tourists. Domestic wine tourists are mainly coming
from the capital of Georgia Tbilisi. However the level of domestic wine travelers is quite low;
3.2.17 Advantages and disadvantages of wine tourism for wineries
The number of tourists in wineries diverse from company size and location. In total 80 companies are
operating in Kakheti, from which the majority includes wine tourism to their activities. Those, who are not
currently working in wine tourism field plan to do it in the nearest future. Even the Grape growers are
thinking to start with the wine tourism activities and offer tourist various services in vineyards.
Wine tourism ability to create brand awareness, increase revenues, improve indoor sales and improve
networking is perceived as the principal advantages of wine tourism.
The most important benefits of wine tourism for wineries and community in general are the improvement
of their image (68.9%) and the increase of revenues (61.9%) in country Georgia. Also other factors such
as indoor sales and networking could be mentioned as an additional advantage in this field.
36
Figure 3.19 Benefits of wine tourism development
The main disadvantages that could be observed in Georgia are:
• The lack of transparency;
• lack of joint strategy;
• No willingness to cooperate and implement joint activities;
• Lack of controlling mechanism allowing to control and monitor product and service quality;
3.2.18 Trends and Challenges in Wine Tourism It has been noticed that in many countries wine is simultaneously an expression of the culture of a
territory and a reservoir of traditions rooted in antiquity. It identifies a local community and its identity.
Wine is also a part of the heritage of a place. It is especially closer to it when it is identified by quality
labels and brands that protect its identity and depend on the territory in which it is produced
Considering the history of the wine and tourism development in the world there is a big gap between “
new world wine cities” and the “European cities”. In general the old wine cities (Bordeaux, Mainz, Porto,
Bilbao, Florence etc) have a wine tradition that goes back to the 17th century while the new world wine
cities (Cape town, Napa, Mendoza) have a younger wine tradition that goes back to 90s)
In Georgia the development of wine started 8000 years ago, however according to developments and
trends the wine tourism activities are quite young. The first experiences around wine tourism strated in
Georgia in the late 2000. In the last five years wine sector has shown significant growth. New trends and
innovations have been established in wineries. Mainly Kakheti benefited from the last development in
61.90%
68.90%
52.80%
53.80%
Increase revenues
Improve image
Increase tourism affluence
Winery/brand posiAoning
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
Benefits of wine tourism development
37
wine and tourism field, however the last developments gave also other regions a chance to benefit from
various activities and marketing and PR elements. Trends such as:
• wine roads,
• wine tourism guide
• wine tourism portal- Georgianwine.travel
• wine map
• grape varietals guide
have been developed and implemented here
There are still many gaps and rooms for improvement, however in case of strong support (financial and
technical) significant improvements could be done achieving thus sustainability and long-term profitability.
The major challenges for the region and for the better performance of wine tourism field could be
summarized as follow:
• Competition on the market;
• Lack of green and eco friendly approach;
• Low awareness on international market;
• Bad Infrastructure;
• Product quality and price ratio;
• Lack of information;
• Lack of human resources;
• Lack of transparency and networking;
• Natural disasters;
• Conflicts;
• Global and domestic economies;
• Lack of wine clubs, restaurants, bars, tasting rooms;
• Lack of signposts;
• Poor developed wine roads ;
• Difficulties with wine distribution;
Some challenges could be overcome while developing a good wine tourism strategy which would include
various Marketing tools and support the development and performance of wine tourism sector. .
Good communication with similar business entities could be mentioned also as a vital support tool.
Currently the majority of wine companies are not organizing wine related activities with similar business
representative; however the joint activities could significantly reduce the costs of events and raise
awareness.
38
Study tours and best practices from other countries could also play a crucial role in the development of
this field.
The Georgian wine tourism sector would do much better, if it would provide tourists with memorable
experiences that keep them coming back time after time – and bringing their friends and relatives. Some
of the world trends are already implemented in Georgia, some are still underdeveloped and some have to
be implemented.
#1 – Wine Roads –Any wine region that wants to be taken seriously has taken the time to develop maps
which list their wineries and provide information on hours of operation, website, phone numbers, and
directions. In addition, the wine maps may also include local restaurants, hotels, and other tourist sites.
The maps are provided free on the web and in brochure format, and are very helpful for tourists planning
a trip. Wine roads do exist in Georgia but are poorly developed. More efforts are needed to make the
roads and legend to work.
#2 – Wine Community Partnerships – Successful wine regions work in partnership with local hotels,
restaurants, airports and transportation companies to make sure that tourists have a way to find them.
Often they hire an Executive Director of Wine Tourism and Marketing for the region that is responsible for
developing these community partnerships and tours. A good example is in the Hunter Valley of Australia
where they pick-up visitors at the Sydney airport and transport them 2 hours to the valley where they
spend 4 days visiting wineries, including hotel and meals. The wineries of Hunter Valley work together
with local tour operators to create this beneficial partnership.
#3 – Special Wine Events and Festivals – Many wine regions host special events and festivals, but the
most innovative regions think “out of the box” in developing unique events. Georgia started to organize
some special wine events and festivals like “Tsinandali Wine Festival, Georgian Wine Day, New Wine
Festival, Cheese and Wine pairing Festival. However more efforts are needed to attract more tourist and
promote Georgian wine culture.
#4 – Experiential Wine Programs – Related to special events is the new practice of offering wine
tourists unique experiential programs. For example, in Napa and Sonoma valleys of California, it has
become common for visitors to participate in wine blending seminars where they mix together different
types of wine to create their own customized bottle – such as a Bordeaux blend with merlot, cabernet
sauvignon, and malbec. Next they design their own wine label and get to take the wine home with them.
Some companies in Georgia also stated to implement these practices however they are rare in nature
and need more creativity.
#5 – Link Wine to Regional Tourism – Smart wine regions make sure to link to other local tourism
sites. This is a win-win strategy for everyone involved because the more activities that can be advertised,
the more likely the region will attract greater numbers of tourists. For example, tourists visiting Beijing for
the first time always want to see the Great Wall and the Forbidden Palace, but now many also want to
39
taste the local wine and visit famous wineries such as Chateau Changyu and Jinshanling. In case of
Georgia Chateau Mukhrani or Tsinandali Palace can be used as a link between the wine, culture and
history.
#6 – Unique Partnerships – Linking up with different types of partners, rather than just the usual
marriages of food, wine, music, and art, is another best practice of successful wine regions. For example
the wineries in Okanagan Valley of Canada have joined forces with the many golf courses in the area to
provide experiences that include both golf and winetasting, such as their “Chip & Sip” experience.
Likewise, the Sonoma Mission Inn Spa in California has teamed up with local wineries to offer afternoon
wine-tastings for visitors who have spent the day at the spa enjoying such wine-related treatment as a
Chardonnay Scrub and massage.
#7 – Wine Villages – Some wine regions have committed the time and resources to create a “wine
village.” This is a town in the wine region that is designed specifically around the theme of wine. There
are generally multiple winetasting rooms within walking distance that tourists can visit. Restaurants in the
village cater to the wine tourist and provide food that matches local wines. Hotels offer rooms and
packages designed around a wine theme. In some cases, these wine villages are quite old and have
been known as a wine center for generations, Other regions have created their wine villages from
scratch. In case of Georgia this example could be used to develop Kvareli and Telavi municipalities and
offer tourist unforgettable experience.
#8 – Focus on Art & Architecture – Some wineries attract visitors by adding art galleries, sculpture
gardens or other unique art-related items. For example, both Bodegas O Fournier Winery outside of
Mendoza, Argentina and the Hess Collection Winery in Napa Valley, have famous art collections that
visitors can see while tasting wine. Other wineries use architecture to attract crowds, such as Vina Mar
Winery in Casablanca Valley, Chile with its beautiful Moorish-influenced building, and the impressive
Chateau Changyu Moser XV in the Ningxia wine region of China (featured photo above).
#9 – Food & Wine Matching – Another best practice is targeting tourists who enjoy the culinary aspects
of wine tourism. Generally this is implemented by a wine region organizing special food and wine tours
or events. A good example is the Wine & Paella Event held every spring in Baja, Mexico where the local
wineries match their wines to many different types of paella rice dishes. Another case is the Wine &
Food Showcase celebrated every autumn in Sonoma County where the local restaurants pair up with
wineries to showcase their food and wine pairings. There are also many food and wine tours offered in
the various wine regions of France and Italy throughout the year to attract tourists.
Despite the fact that Georgia has very delicious cuisine the wine and food pairing issue is still very weak.
There are some culinary academies and centers supporting this field, however it would be recommended
to enhance this cooperation (wineries and local restaurants) and offer region specific food with the local
wine.
40
#10 – “Green” or Ecotourism Focus – For wine tourists who seek organic and biodynamic wines, or
those who enjoy begin around nature and in the outdoors, a newer best practice is an emphasis on
“green” or ecotourism aspects of wine. For example, some wineries offer special tours and educational
programs on how they craft organic and biodynamic wines. Parducci Winery in Mendocino County of
California is the first carbon neutral winery in the US, and they provide special tours of the vineyards to
describe their environmental practices. Likewise, Banfi Winery, in Montalcino, Italy, that has the
distinction of being the first winery in the world to achieve environmental certification in ISO14001 and
SA8000, also offers tours and explanations of their special “green” practices. Also, Saturna Island
Winery in Canada responds to ecotourists by encouraging them to taste wine and then go boating around
the island in search of whales. This field is very undeveloped in Georgia and it would be recommended to
pay more attention to it.
#11 – Unique Wine Tours – Another cutting edge practice is offering very unique tours for winery
visitors. These are usually targeted at the more adventurous wine consumer or for those who have
already visited a specific wine region and are looking for something different. An example is “wine &
kayaking” as offered by Chatham Winery in Virginia, or a “river-rafting and wine tasting” as offered by
Southern Oregon Wineries working in partnership with a local tour company. Other examples include 4-
wheel jeep drives through Steinbeck Vineyards in Paso Robles, California, or wine and hiking tours.
#12 – Social Media for Wine Tourism – Finally many wineries and regions are catching onto the
benefits of using social media to attract wine tourists. This includes making sure those tourists who use
their mobile phones and the Internet to seek information on which winery to visit can easily locate the
winery. They do this by ensuring GPS directions are correct, that they are easily found in search
engines, and that they have a website that is also designed for mobile phone users. Several wine
regions have gone so for as to develop “apps” that can be downloaded onto a mobile phone to provide
winery information, maps, and even coupons and tasting fee discounts. Finally, savvy wineries have set
up Facebook fan pages and work with other sites, such as Trip Advisor, to make sure they can interact
with wine tourists.
To conclude this chapter, wine tourism continues to increase about the world in popularity, and wine
regions recognize the positive economic benefits derived from wine tourists, the adoption of these twelve
best practices will spread to even more countries.
3.2.19 Wine Tourism Product characteristics and benefits Wine tourism can be characterized as a lifestyle experience that can be part of other travel experiences.
In Georgia it is also a part of Georgian culture and history. It enhances the economic, social and cultural
value of wine regions and is linked to the local lifestyle such as food, accommodation, arts and crafts as
41
well as an environment. Wine tourism product can consist of a whole host of different facitities and
services to cater the traveler.
In general Georgia offers following products and services in wine tourism field:
• Wine tasting facilities
• Cellar door sales
• Guided winery tours
• Bio products
• Qvevri Wine
• Wine Festivals and events
• Wine restaurants and bars
• Overnight accommodation in guesthouses, hotels, apartments
• Offer entertainment and leisure activities such as wine spa, participating in harvest, hiking or biker
trails, rafting etc. (The combination of wine tourism with adventure tourism is quite new in Georgia
but is slowly implemented and accepted by companies and tour agencies)
Figure 3.20The tourist facilities available in Georgian winery
Wine Tasting Restaurant or cellar lunches Vineyard walking
Cellar door sales Fresh produce sold
(Farmstall)
Winery organized tours or
educational tours
Craft or gallery or souvenir
shop
Animal feeding or watching
Meeting the winemaker Social function facilities
Visitor center Conference facilities Hiking or biker trails
Historical building or museum Overnight accommodation
Wine or other festivals Picnic facilities Tractor or trailer rides
Barbeque facilities Horse or pony rides
Fireplace Petrol or filling station
Source: (Getz D. , 2000, p. 7), (O'Neill&Charter, 2000, p. 113) (Treloar, 2004, p. 6)
Taking in account all these facilities, Georgian wine companies benefit from the following:
Benefits to the wine industry Benefits to the wine region Benefit to host communities
Increase wine sales Increase awareness and a
number of visitors
Attracts new investments
Educate visitors and foster Increase spending within the Develops new facilities,
42
brand loyalty region amenties
Attract new markets Attracts new and repeat
visitors
Develops infrastructure
Increase profits from winey
sales
Develops positive destination
image
Creates part &full time jobs
(Improve) Networking Earns foreign exchange Generates secondary
economic activity (multiplier
effect)
New partnerships
New Ideas, new Visions
The increase of wine tourism product is vital, although the data cannot be compared and evaluated in
comparison to the previous findings as similar researches have not been conducted yet. To see the real
benefit of wine tourism, evaluate the situation and see the new trends and challenges of the wine
(tourism) sector, it would be recommended to conduct similar research in 2 years.
3.2.20 Services offered by Tour Agencies in Georgia
The main aim of the tour agencies is on the hand to support tourism development and raise awareness of
the country worldwide on the other build network, offer various services and make life of the travelers
easy.
After collapse of Soviet Union, in early 90 the first Georgian tour agencies started to operate in the
country. Slowly the demand for tour agencies and tour operators rose. While in early 2000 only few
companies operated in the country in 2014 we have more than 100 Tour agencies. However, similar to
the wine sector, the statistic data is missing also here. No organization or unite can give precise
information about companies number and field of operation.
In general the tour agencies are offering following services to tourist in Georgia:
• Management and planning of all kind of Tours
§ Leisure Tours
§ Business Tours
§ Adventure Tours
§ Wine Tours
§ Wine and Food Pairing
§ Pilgrim Tours
§ Bird watching etc.
§ Transportation
43
• Visa issues
• Accommodation etc.
Aspects of wine tourism and wine – food pairing have been discussed already in the previous chapters.
Consequently, the next chapters would summarize other services which are related to wine tourism.
4 Wine Tourism Marketing
4.1 Introduction
In 21st century Marketing plays a crucial role in the development and promotion of any kind of services,
product or field. Wine tourism is no exception..
4.2 Marketing process
According to some researches the crucial elements for business to succeed and earn profit are:
• survival
• profitability
• growth
In order to obtain these objectives, businesses (in this case wineries and tour agencies) must build
profitable and valuable exchange relationship with customersi. And these relations are building by good
marketing management, which is defined as a process of planning and executing the conception, pricing,
marketing communication and distribution of idea, products and services to create exchanges that satisfy
individual and organizational goals23. Georgian Wine Association defines Marketing as “ The
management process responsible for identifying, anticipating and satisfying customer requirements
profitability , to meet organizational objectives24. Therefore marketing can be understood in Georgian as
an ongoing process that involves many other participants. The whole process of marketing could be
illustrated as follow:
Step 1: Understand the marketplace and customer needs and wants
Step 2: Design a customer driven marketing strategy
Step 3: Construct a marketing program that delivers superior value
Step4: Build profitable relationships and create customer delight
Step 5: Capture value from customers to create profits and customer quality 25
23 (Cant, 2007, p. 3)
24 (George, 2007, p. 4)
25 (Kotler&Armstrong, 2006, p. 5)
44
4.3 The marketing process The marketing process can be applied in any type of organization working in various fields. It’s crucial for
marketing to start with research with marketplace and understand what the consumer needs and wants
are. The second step is to build a customer/consumer driven marketing strategy, the pillars thereby are :
i. Which customer will be served? (market segmentation and targeting)
ii. How can the targeted customers’ best be served? (Differentiation and positioning)
These two crucial aspects are neglected quite often by Georgian Tour and Wine companies. They do not
compile statistic, they do not pay attention to customer segmentation, although target group
segmentation can significantly support the development of marketing process and companies’
development.
The fourth step of the marketing process involves building value –laden profitable relationships with
target customers, The winery must work closely with marketing partners both inside and outside the
company. Four P’s (product, price, place and promotion) are often not considered as important elements
by wineries, tour agencies or other institutions involved in wine tourism marketing. These four marketing
mix elements (4P’s) transform the marketing strategy into real value for customers26. Usually the
companies start with the development of product offers and brand identities. This activity is followed by
creating real customer value (price), the distribution of product (place) makes this product available to
target customer. Finally, the promotion programs are created that communicate the value proposition to
target consumers and persuade them to act on the marketing offer (promotion)27 .
The marketing mix is a set of controllable, tactical marketing tools that the company brings together to
produce the response it desires from its target market. These marketing tools consist of everything that a
company can possible do in order to create and influence a demand for its products28.
Thus marketing is crucial for all kind of companies/ entities that aim to create a real value and long term
customer equity, which is necessary for businesses to survive, grow and be profitable29. Various factors
relating o each of the four P’s are illustrated in figure below.
2626 (Kotler&Armstrong, 2006:8.12)
27 (Kotler, 2010, p. 358), (Kotler&Armstrong, 2006, p. 13)
28 (Kotler&Keller, 2009, p. 63)
29 (Kotler, 2010, p. 358), (Kotler&Keller, 2009)
45
Figure 4.1 The marketing Mix
4.4 Marketing and Promotion in the wine tourism industry
Promotion is essentially communicating with current and potential customers about specific product. A
winery cannot simply expect to sell wine by producing a good wine, pricing it attractively and making it
available to target consumers. Wineries need to communicate with their consumers about their wine. All
communication efforts must be combined into a consistent and coordinated communications program or
promotion mix.
Each winery’s promotion mix consists of the specific blend of advertising, sales promotion, public
relations, personal selling and direct marketing tools.
The winery uses the promotion mix to pursue its advertising and marketing objectives. The chart below
illustrates all elements of promotion mix.
The Georgian Wine companies and also tour agencies do not pay much attention to promotion activities.
The extra investments in the promotion could be named as the main reason for it. However it is value for
money to invest in promotion and get more profit from it.
The next chapter evaluates the implementation and use of promotion mix elements in Georgian wine
industry, namely sales promotion, direct marketing, advertising, public relations and personal selling.
Product
Product Variety Quality Design
Freatures Brand name Packaging Services
Price
PRICE List price Discounts Allowances
Payment Period Credit Terms
Promo<on AdverAsing
personal Selling Sales promoAon Public relaAons
Place Channels Coverage Assorments LicaAons Invenory
TransportaAon LogisAc
Target customers intended PosiAoning
46
4.4.1 Wine sales and sales promotion
Wine sales are directly linked and depend on the second element of 4 P’s- price. The wine price is
affected by internal and external factors30.
Internal Factors:
• Product design, distribution, promotion cost
External factors:
• Competition, market demand and other environmental elements
The price should be set reflecting best price and quality ratio.
Sales promotion consists of a set of short term incentive tools to stimulate or encourage the purchase or
sale of a product or service. Various incentive tools can be used to encourage sales, all of which have
unique qualities and include coupons, free trials, contests, cents of deals etc.
Georgian wineries make use of different sales promotion incentive tools in order to market their wines.
The popular tools include:
• Discounts
• Coupons
• Tie in promotion
Cellar door sales, primarily related to wine tourism, were rated as important or very important to the
overall sales. Various studies have shown that cellar door sales could account for as much as 75% of
overall wine sales in small and medium sized wineries31. Since most of the wineries in Kakheti region are
small or medium sized and the majority of respondents rated cellar door sales as important, it can be
concluded that many wineries are in some way dependent on attracting visitors though wine tourism to
the cellar door.
Currently around 20 % of wineries income comes from tourism activities the rest from wine sales.
Figure 4.2 The income source of wine companies
30 (Kotler&Armstrong, 2006, p. 309)
31 (Hall C. , 2000)
77.9
19.45
Wine Sales
Tourism acAvity
0 10 20 30 40 50 60 70 80 90
Income Source
Series1
47
Even if the tourism activity contributes to the income by approximately 20%, 80% of the wineries income
depends on wine sales. The most important distribution channel on a global scale remains the direct
sales at the winery. In Georgian beside the indoor sales, the wines are sold in restaurants, barsn, and
supermarkets and even online. The chart below demonstrates the scale of distribution channel.
Figure 4.3 Distribution channel
It should be noted, that there is no big difference between big, medium and small companies regarding
wine prices the minor differences could be concluded as follows:
• Big companies are selling most of their wine between 5-10 Gel- 54 %
• Medium companies vend for less than 5 GEL- 79 %,
• Most of the Small companies offer their products for more than 20 GEL (58%).
18.10% 14%
8%
2%
29% 25%
4%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
0%
50%
100%
<5 5-‐10 10-‐15 15-‐20 20-‐25 25-‐30 30+
Big
Medium
Small
Distribution Channels
48
The price difference between small and medium wine companies can be explained as follows: Small
wineries prices are most often set by the owners, whereas larger wineries that sell the product in retail
stores depend on market and sales demand. Although the fact that small wineries produce mainly the
qvevri wine which is a luxury product on the global market and costs significantly more than the average
wine , could be used as an explanation for such price differentiation.
Taking in account the finding above and also the high interest in Georgian wine plus the number of
visitors visiting wineries each year, the development of wine tourism is not only an interesting activity but
also financial viable. This is because the greater part of the total income from wine tourism activities
comes from the wine sales directly and remains in the company. Accommodation and food services
contribute to the total income approximately up to 36.58% and 23.61%. Other services and gadgets
seem to play a little role in the total income of the wineries. The average price of 2 hours guided tour in a
winery costs approximately 50 GEL.
The potential growth of wine tourism and the outlook to earn more and achieve better results lead to the
fact that the great majority of 35 companies in Kakheti invested in production and side facility
development one year ago. The next investments seem to be the same however vineyard cultivation and
extension of wine tourism services would play also a crucial role.
The major investments have been done in:
• New equipment -30 companies
• Facility enlargement and development- 25 companies
• Cultivation of new vineyards -18 companies
• Capacity development of the staff -10 companies
4.4.2 Advertising and promotion
Advertising is perhaps the most powerful component of the promotional mix. Advertising is defined as a
paid form of non personal presentation and promotion of ideas, good and services by an identified
sponsor. The advertising message is transmitted through a variety of media (TV, Magazines, redio,
newsletters, newspapers, internet etc).
The majority of Georgian companies is using social networking, portals and mailing list to attract new
visitors and advertise their companies worldwide. However there is no joint strategy which would enforce
the position of Georgian wine worldwide.
Similar to other wine countries, Georgian companies also pay more attention to a traditional promotion
based on the participation at wine tasting events, professional wine fairs, and wine festivals. Although in
time of globalization other promotional tools and advertising such as wine tourism websites, online
portals, online selling etc. should not be neglected.
49
Advertising methods such as study tours for bloggers, wine writers, wine buyers and wine critics are
organized on regular level by Georgian Wine Association for their members with the purpose to raise
awareness o Georgian wine and wine culture.
Although many different advertising tools are used to promote Georgian Wine, more efforts are required
to make it more systematic and target oriented. The lack of joint national promotion strategy is visible and
needs tangible support to minimize the input and maximize the output. Following advertising tools have
been mentioned by number of companies regarding wine and tourism promotion.
Figure 4.4 Promotion tools
Beside the activities used to communicate with customers, wineries use following service providers to
achieve a better outcome:
• Tourism information centers /offices
• Local wine shops and bars
• Various wine events
• Tour Agencies and Tour operators
• Wine tourism Portal
To sum up, the majority of wine companies in Georgia prefer to use traditional wine events (wine fairs,
wine tastings, wine festivals) to promote wine tourism activities, only few apply to digital marketing tools
(web site promotion, social media, mobile apps etc. ) Since autumn 2014 Georgian wine and tourism
companies are also using the first Georgian wine portal georgianwine.travel to promote their companies.
The chart below presents current and future activities and activities planned by wine and tour agencies.
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Adver<sing tools
50
Figure 4.5 Advertising tools
4.4.3 Personal selling of wine products
Personal selling is the most effective tool at certain stages of the buying process, particularly in building
up buyers’ preferences, convicting and actions.
Personal selling is a vital part of most Georgian wineries. Almost all wineries have wine cellar staff that
act as a personal sales force the lack of professionals in this field has been reported by majority of
participants.
To overcome this challenge it would be recommended to provide and offer regular seminars and
workshops for the sales and marketing staff.
4.4.4 Public relations
Public relations is another promotion mix element, defined as building good relations with the company’s
various publics by obtaining publicity, building up a good corporate image and handling or heading of
unfavorable rumors, stories and events32 . News stories, features, sponsorships and events are all forms
of public relations communications and tend to be more believable to consumers than advertising.
Georgian wineries often make use of public relations though stage events such as concerts, festivals,
charity evenings, press release editorials etc. Although PR is not the strongest part of companies.
32 (Kotler, 2010, p. 376)
32
28
18
32
19
33
30
Wine Fairs/ fesAvals
Wine tasAngs
AdverAsements in wine Magazines
Study tours for Bloggers, Wine masters ,
Online adds/ digital markeAng
Awareness raising though websites
Gourmet dinners
Chart Title
Doing Wanted
51
4.4.5 Direct marketing
Direct marketing is the direct contact between carefully targeted individual consumers and the company
to obtain an immediate response and build long term relationship by using catalogues, direct mail, direct
response advertising and e communications33.
Wineries in Georgia can make use of direct marketing in various ways. Some of the direct marketing tools
broadly used by wine companies include:
• Catalogues and wine guides (printed ones)
• Wine portal
• Direct communication to customers
Despite the fact that in 21st century the virtual world influences and speeds up the processes of
communication, the direct contact to customer, wine maker or sales personnel is crucial in wine world. To
taught, small, explore , new flavours is essential part of wine tourism.
5 Conclusions and Recommendations
The Georgian Wine and Tourism industry is currently operation within an extremely volatile and
challenging business environment, both domestically and internationally. To achieve success on both
markets a good strategy and strong will is required. The study investigates that despite the fact that wine
tourism is crucial for countries and companies development, it still has a huge room for improvements.
Many challenges and difficulties have been identified during the research process. Especially lack of
statistic and economic data is visible. Due to these barriers, no appropriate strategies are developed
from government and company sides.
Based on the data provided by wine companies, national tourism agency and statistic department,
following information could be obtained and evaluated in the survey:
-‐ The range of wine tourism products and services currently available in Georgia;
-‐ The profile of wine tourists;
-‐ Perceived advantages and disadvantages of wine tourism to the wineries;
-‐ The importance of wine tourism within the promotion strategy of the winery;
-‐ The perception of wine tourism’s contribution to the brand equity of a winery;
The methodology used in conducting this survey was discussed in chapter 1.
All other findings and results of survey are analyzed and presented in chapters 2.3 and 4.
We should admit that it was quite difficult to get complete and precise information. Many participants
(wine and tour agencies) did not wanted to participate or gave incomplete answers, because they
considered this data confidential and did not wish to communicate or distribute their information.
33 (Kotler, 2010, p. 376)
52
The other obstacles such as lack of information (statistics, strategies), low attitude towards surveys /
marketing studies could be mentioned as major challenge. Despite several attempts (emails, workshop
and training) the majority of tour companies denied to participate in the survey and have not provided any
data or filled questionnaire.
Despite these challenges, GWA was able to collect necessary information, complete the survey and
provide interesting trends and results.
To sum up following trends could be identified:
− Concerning the wine and tourism sector development there is a general increasing growth trend,
connected to the increasing demand of Georgian Wine consumption over the world;
− The general increase of wine production and developing new vineyards is also significant;
− The survey findings and global trends allow us to assume that wine tourism activities seem to be
not only sustainable but also viable;
− Due to the high interest towards Georgia and Georgian wine culture, here is a vibrant positivity
among wineries that are slowly but constantly supporting the development and grows of wine
tourism in country Georgia;
In order to take advantages of this vibrant and lively activity, wineries should constantly work at offering
the best quality in their product and services, and keep on developing the diversity of their offer.
Regarding the marketing and development of winery, four factors have been identified either as important
of very important to a winery:
− Employing staffs who are knowledgeable about wines;
− Providing education and interpretation for visitors;
− Good sign posting;
− Employee friendly, service oriented staff;
Visitors love the possibility to go through different types of activities and, undoubtedly, they will share
their experiences to their friends, colleagues, relatives. We know that word of mouth is nowadays one of
the most important promotion means based on the statistic data.
Finding show that there are still gaps in development of wine tourism, so more attention should be paid to
overcome these challenges by using innovative tools and best practice experiences.
Today the income of wine tourism services is representing around 20% of the global wineries income.
Moreover wine tourism is above all a major marketing tool for country and wineries / wines that should be
100% integrated in the commercial strategies of the wineries as the impact is so important for their image
around the world.
Wine tourism can assist in building brand equity in that it has the ability to foster brand loyalty and create
brand awareness.
53
Following needs have been mentioned by participants as main obstacles in development of wine & grape
industry:
− Lack of professional, business service provider in wine and grape sector;
− Lack of technical expertise;
− Lack of business skills and experiences;
− High / unpredictable grape price;
− Difficulties controlling wine quality;
− Lack of support for product certification & standardization;
− Lack of support for Marketing & PR;
− Lack of support for innovative product development;
− Access to reliable market information;
− Logistic/Transport difficulties;
− Lack of finance;
− Limited access to low rate bank loans.
More challenges have been reported by wine sector representatives; however they are more related to
internal capabilities and more structural in nature and should be resolved by companies.
Despite the fact that wine tourism is a marketing channel, which can add value to countries, sector and
winery development, the question that arises while working on this study: Do Georgian wineries perceive
Wine Tourism as a tool in their marketing strategies? Remains open.
The research confirms that although wineries are aware of the possible benefits of wine tourism, many
still view it as a secondary marketing activity
5.1 Recommendations for the Georgian wine and tour companies
Each company, be it large, medium or small size enterprise, hat different business goals and marketing
needs. While the use of tourism as a marketing tool may not fit into every winery’s marketing strategy, it
is in the best interest of wineries to consider the following recommendations regarding the use of wine
tourism as a strategic marketing tool. Following recommendations could be provided to achieve better
results:
Develop a marketing information system (MIS database)
Due to the lack of statistic information, it is recommended that a MIS database be developed per winey in
order to record as much data as possible on visitors to the cellar door. This will provide valuable
information on wine tourists and their needs and excitations. The database can then be used to develop
specific wine tourism products and improve the marketing strategy as well as develop a one on one
marketing strategy for each individual customer.
54
Actively pursue wine tourism as an avenue for marketing research, product testing and building
the brand equity of the winery and its brands
Wine tourism afford each winery a unique opportunity to gather research data, test new wine products
and build or improve its branding. Management, especially that of wineries that already have an existing
wine tourism product, should make use of the opportunity offered by wine tourism. Conducting marketing
research would not require much investment and testing new products would be vitally free to the winery.
The positive spin off of building the winery brand can also not be ignored internationally; wineries are
continuously increasing the use of wine tourism as a sound source of marketing information and testing
new products on visitors to the winery. Wineries not utilizing this source of information will lose their
competitive edge. It should be reiterated that wine tourism could be one of the single most important
ways to build brand equity, especially for smaller wineries in Georgia.
Consider the practice of charging a tasting fee
The result indicate that the most popular form of tasting fee is charging for a set of samples but
discounting the price if a bottle of wine is purchased. It was found out34 that visitors who receive
complimentary wine tasting spend significantly more money at wineries than visitors who pay a fee for
tasting. Visitors who do not pay to taste wine were also more appreciative of cellar door personnel and
report feeling a higher level of obligation to make a purchase than visitors who pay for tasting. Winery
management could benefit from careful considering their current tasting fee structure and testing the
effects of free tasting on cellar sales.
Segmenting the markets and products of the winery
Wineries could benefit from streamlining their marketing and wine tourism products and facilities to target
specific age and education groups. The largest group of visitors is between 25-45 year of age and this is
also the primary consumer group. It should not be ignored that the majority of wine consumers and
visitors to wineries are well educated, thus going back to brand loyalty the wineries could benefit from
building brand loyalty within this target audience.
Certification and star grading
Wineries could benefit from s star grading and certification by well known company. It could help to
increase their bottom line by leveraging this grading to build brand equity and reputation.
Use tradition and innovation as a tool to attract customers
The awareness of Georgian wine and wine culture is still quite low, however the wineries could benefit
from promotion of tradition and innovation. Qvevri wine could be used in this regard as a product that
used to be produced already 8000 years ago. In order to take advantages of this vibrant and lively
34 (Dodd K. a., 2009)
55
activity, wineries should constantly work at offering the best quality in their product and services, and
keep on developing the diversity of their offer.
Capacity development of the staff
Wineries and tour agencies should be aware how important it is to have professionals in their team.
Despite the fact that there is no accurate data about trainings & vocational qualification for the last years
the need to have professional, specialized operators is obvious.
The professional should be treated and paid also adequately. A code of ethics which would regulate this
process should be developed and implemented in wine and tourism field.
Offer well developed and diverse tour packages
Wine tourism is very broad in scope and includes many different types of products, services and facilities.
An investigation into the specific products and services that are most enjoyed by international wine
tourist could be done. This would enable the industry to streamline its current wine tourism product and
offer tourists what they most desire
It would be highly recommended to consolidate resources of private, public and international
organizations and act based on real needs and obstacle of the sector in order of significance.
Special support is required in:
− Business planning & strategic planning;
− Marketing & PR;
− Certification & standardization;
− Education & vocational qualification;
− Awareness raising activities.
The results of the survey helped not only to identify main trends and challenges in wine tourism industry
but at some points illustrated some other aspects which are crucial for wine tourism development.
− Develop Innovations (New products, equipment);
− Take care about climate change and possible challenges;
− Implement new statistic and data management tools;
− Offer IT solutions & software consulting;
5.2 Areas for future research
Considering the results of this study, the following areas may be researched in the future:
• Specific tourism product and services at Georgian wineries
• Gender specific activities at wineries in Georgia
• Influence of social median on wine tourism
• Winery visitors point of origin
• Research into developing a MIS database
56
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Association Georgian Wine (2014) Assessment Needs of Wine and Grape sector
National Tourism Administration - http://gnta.ge/
National Statistics office of Georgia - http://www.geostat.ge/
World Bank - http://www.worldbank.org/en/country/georgia/overview
7 Table of Figures Figure 1.1 Map of Georgia ............................................................................................................ 4 Figure 1.2 Population under poverty ............................................................................................. 6 Figure 1.3 Unemployed rate in Georgia ........................................................................................ 6 Figure 1.4 GDP per price and per capital ...................................................................................... 7 Figure 1.5 Share of Tourism in GDP ............................................................................................. 7 Figure 1.6Share of Tourism in GDP detailed breakdown .............................................................. 8 Figure 2.1: Value Chain approach by Porter ............................................................................... 10 Figure 3.1 Grape varieties in Kakheti Region ............................................................................. 17 Figure 3.2 Grape yield per ha in Ton .......................................................................................... 17 Figure 3.3 Wine sales ................................................................................................................. 18 Figure 3.4 Marketing environment of a winery ............................................................................ 20 Figure 3.5 SWOT ANALYSE Georgian Wine .............................................................................. 21 Figure 3.6 Wine Tourism linkages to other Fields and activities ................................................. 23 Figure 3.7 Tourist in Georgia ..................................................................................................... 27 Figure 3.8 Countries of origin ...................................................................................................... 27 Figure 3.9Tourists Gender .......................................................................................................... 28 Figure 3.10 Accompanying person ............................................................................................. 29 Figure 3.11 Means of transport ................................................................................................... 30 Figure 3.12 Accommodation types .............................................................................................. 30 Figure 3.13 Popular Places by tourists in Georgia ...................................................................... 31 Figure 3.14 Information source ................................................................................................... 31 Figure 3.15 Accommodation quantities in the regions ................................................................ 32 Figure 3.16 Accommodation types .............................................................................................. 33 Figure 3.17Types of activities ..................................................................................................... 34 Figure 3.18 Purpose of visit Georgia ........................................................................................... 34 Figure 3.19 Benefits of wine tourism development ..................................................................... 36 Figure 4.1The tourist facilities available in Georgian winery ....................................................... 41 Figure 5.2 The marketing Mix .................................................................................................... 45 Figure 5.3 The income source of wine companies ...................................................................... 46 Figure 5.4 Distribution channel ................................................................................................... 47 Figure 5.5 Promotion tools .......................................................................................................... 49 Figure 5.6 Advertising tools ......................................................................................................... 50
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8 Annexes
8.1 Project Presentation PROJECT NAME - “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST) PROJECT DURATION - 18 months
PROJECT PARTNERS :
ü Business Consulting Institute (BCI), Moldova, Chisinau – PROJECT LEADING PARTNER
ü International Business Development and Investment Promotion Center (IBDIPC), Georgia, Adjara AR
ü Department of Tourism and Resorts of Adjara AR, Georgia
ü Burgas municipality, Bulgaria, NUTS II regions Yugoiztochen
ü Agency of Regional Development (ARD), Ukraine, Odessa region
ü Eastern Black Sea Development Agency (DOKA), Turkey, TR90 – Eastern Black Sea Region
Project Major Goals and Objectives of the joint Action
v Improvement of the regional capacities for planning, coordination and implementation of joint strategy
v Building of an effective network infrastructure for promotion and implementation of market orientated tourist products
v Improvement of the knowledge/skills and developing the tourism products in partner regions to current needs of international markets
v Creation of a cooperative environment for building up a common agenda for sustainable tourism development in the Black Sea Basin respecting regional specificities
v Intensifying cross-border economic cooperation through tourism
v Specific objective(s) v Achieving stronger regional partnership and cooperation among regions in Black Sea Basin for
sustainable tourism management and joint marketing strategy focused on PPP
Target groups & Final Beneficiaries
Target group(s) v Public sector – tourism departments, regional authorities, municipalities etc.
v NGOs – working in the tourism filed – tourist associations, tourism development organizations etc.
v Private sector – tour operators and travel agencies, guesthouse owners, hotels etc.
Final beneficiaries
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v The tourism sector in general – the project will contribute to tourism development in each partner regions. That will benefit to all businesses involved in the tourism industry;
v Communities/population in the target regions – through increased tourist numbers more local income and social-economic conditions will be available;
v Tourists (both domestic and international) – benefit from improved tourist products, new tourist products and improved level of service;
Project’s Main Activities GA2 Development of joint marketing strategies v Jointly develop tourism marketing strategy and action steps for each of the partner countries in
order to effectively promote common tourist products of the representative destination.
v Marketing researches - in each region resulting in useful analytical information gathered via marketing researches. This will be used for - Joint marketing strategy development as well as gathered data will be useful for final catalogue and online web-portal (to put necessary tourism info)
v Feasibility studies for new products and cross-border tour projects - It will include identifying the possibilities of cross-border tour-products – ex: Moldova/Ukraine/Bulgaria, Georgia/Turkey - joint tour package offered to tourists of both countries and International tourists.
v Creating network of cross-border tour operators / tourism stakeholders among participant countries - the intensified regional cooperation of tourism countries and stakeholders related to the development of other tourism areas facilitates a mutual learning from different approaches and problems and has the potential to lead to a increased development of cross-border concepts and cooperation
GA 3 Tourism project development and skills capacity improvement Trainings for skills improvement - 4 training packages will be developed and trainigns organized.
These include the following:
v I package – Trainings in Destination & Internet/social media marketing (3 days)
v II package – wine/eco tourism specifics, service skills, marketing etc.
v III package – Trainings/workshops in Sustainable tourism development strategy through PPP partnership (3 days)
v IV package – Workshop for joint promotion of tourism products – public/praivate cooperatoin, joint funding schemes etc.
GA 3 Tourism project development and skills capacity improvement v Site visits for exchange of experience in BS countries - One site visit in each country
during the project implementation (3 days duration) for exchanging the experience, to meet the local stakeholders and get necessary consultations etc.
v Workshops on PPP tourism development - 2 workshop during project period will be held in each country to discuss the tourism product development / marketing strategy issues with all major tourism stakeholders (for ex: tourism associations, private tour companies, local experts, government etc.).
GA 4 Creating an effective online platform for joint promotion of tourism products
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v Creation of BS InfoTourism Database - Each of the partners will put on IT platform major tourism data’s e.g. mapping of destinations, identification of local authority’s, tourism products, news, festivals etc.
v IT portal/web-site creation and continuous content development - portal will have information about all relevant data generated during project implementation: marketing strategies, tourist destinations, trends, news, festivals etc. The portal will also act as a communication platform for the project partners and the local stakeholders, joint online promotion of tour products, jcross-border tour packages etc
v Developing a Social Media Platform for tourism projects - social media marketing is gradually increasing in the world. Under the Project will be developed package of social media tolos (Blog, Facebook, Twitter, Youtube, Flickr etc.) whcih will be intergrated with web-site/IT platfrom
GA 5 Visibility of the Action v Press conference and newspapers inserts - a) Press conferences in each country for
launching the project, highlighting project’s major activities, presenting Web-portal etc. b) newspaper inserts on tourism related issues that will be helpful for highlighting the tourism importance, present the ongoing tendencies, problems, Project partner’s tour product promotion etc., c) Press releases and Media coverage
v The presence of Project in Regional tourism fairs and dissemination of BS Tourism Catalogue and Info materials
v Black Sea Tourism Final Conference - The final conference will be a physical platform for all partners to promote traditional and newly developed tourist products. Participants from the three regions will be invited with different background (business, NGO’s etc.) and will have the opportunity to promote their activities in the field of tourism, establish networking contacts etc.
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8.2 Questionnaire - Tourists Consumer Survey The given survey is done by “International Business Development and Investment Promotion Center”, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Department of Tourism and Resorts of Ajara AR. CONTACT INFO - [email protected], 599-482181
1. Age 18-25 26-35 36-45 46-60 61-75 75- and more
2. Sex • Male • Divorced
3. Country of residence - Georgia - West Europe (please specify) ________________________________ - East Europe ( please specify) _______________________________ - Post-Soviet Area (please specify) _____________________________ - Other ( please specify) ______________________________________________
4. Income ( in EURO)
5. With whom do you travel?
• Alone • With the family • Together with a group of friends
• In a couple • Together with an organized group
6. What is the main goal of your trip?
• Leisure • Business • To See touristic areas
• Wine and gastronomy tour • To make familiar with country • Other_________________
7. How much do you spend usually (or expect to spend) in Georgia for 1 day wint tour (wine degustation, lunch, night stay) ?
0-30 EUR 31-60 EUR 61-100 EUR 100 EUR
8. How many days lasts your “Wine Tour”
• 1day • 2 day • More than 3 day
9. Where do you mainly get information when your travel (for wine tour)? You can check all relevant sources.
- Internet - Social Media (Facebook etc.) - Tour operator brochure - Press - Knowledge from previous visit - Advice from friends/relatives - Guides ((e.g. Time Out, Lonely Planet, Rough Guide etc.) - Tourism information Centers - Tourism Exhibition - Other (please specify) _________________________________________________
0-10,000 10,001 – 20,000 20,001-35,000 35,001-50,000 50,001-70,000 More than 75,000
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10. Which are the 3 most important elements that could convince you to visit a winery/ wine area?
• Culture and History • Wine tasting • Winemaking activities • Meeting with Wine-maker • Testing of Local meals and wines • Leisure • To receive special/different impressions • To discover special and unique wines • To have a good time with friends and colleagues • Other ____________________________
11. How importatn are the following factors when you select winery for visit?
Very
important Medium
importance Unimportant
1. Staff knowledge about the products promoted and service level
2. Information provided through the marketing materials and web-site
3. Costs of visiting winery – (The tasting fe, Price for the wine bottles, tour-guide etc.)
4. Travel time to winery 5. Proximity to other wineries 6. The winery size 7. Variety of wines offered for tasting 8. The aesthetic atmosphere and design of wine tasting halls 9. Popularity of winery 10. Existence of a cellar or vineyard available for visitors
12. Which kind of accomodation do you prefer while traveling?
• High class Hotel • Medium class Hotel • Guesthouse
• Hostel • Other__________________________
13. In “Wine tour’ beside the wine degustation what other components of services will be
interesting to have as part of tourist pacakge?
• Georgian Gastronomy • Folklore Show • Winemaking activities • Visiting Cultural-Historical monuments
• Visiting Eco-Tourism sites • Other
________________________________
14. Have you travelled in Georgia and did you had a "Wine Tour"? (if you answered "I have not
travelled to Georgia" you can skip questions 15-18)
• I travelled in Georgia but have not took "Wine Tour" • I travelled in Georgia as well as took "Wine Tour" • I have not travelled to Georgia
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15. What components would you advise to improve in “Wine Tour” (or generally in tourism industry of Georgia) which you noticed during travel in Georgia?
• Hotel • Tour Agencies service • Guide • Meal/Menu • Access Road/Accessibility • Wine • Wine Degustation • Other________________________
16. How can you rate your experience for “Wine Tour” in Georgia compared with you travel experience with “Wine tour” in other countries on 5 point scale? ( 1- Georgia was worst experience and 5- Georgia was best experience )
1 2 3 4 5
17. Did you like your travel experience in Georgia?
Yes No Average
18. Will you recommend to travel in Georgia for wine tourism lovers?
Yes No Not Sure
Thanks for your cooperation
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8.3 Questionnaire - Wine Tourism Stakeholder (Wine cellar/factories) Survey
The given survey is done by “International Business Development and Investment Promotion Center”, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Association “Georgian Wine”.
Contact informatoin: [email protected], 599-482181
1. Your Enterprise/Cellar name: ___________________________________________ 2. What kind of enterprise do you represent? • Small cellar • Cellar + Hotel
• Private family cellar • Large wine company
3. Where is situated your company? • Indicate( village, region) - ________________________________________________________
4. How easy is to find and access your enterprise?
Easily Avarage Difficult By car
By public transport By walk
5. Are you participant of wine route project? • Yes • No
6. Which kind of advertisment/PR do you use to promote your company/enterprise (you can
check all relevant source): • E-mail • Sms advertisement • Social networks • Exhibitions • Special offers • Media
• Participate in various events o Wine-making o Distiling of home made Vodka (so called
“Zaodoba”) o Other _____________________________________
7. How your enterprise is differentiated from others? (you can check all relevant source) • By Location • By history • By combining of traditions & innovations • By offering of special wines
• By developing of new products • By segmentation of target customers • Other:__________________
8. What services you offer to tourists? (You can check all relevant sources)
• Accommodation • Wine tasting in wine tasting halls • Tour around the wine Cellar • Tour around the enterprise’s territory • Lunch+ wine tasting ლანჩი
• Vineyard survey • Wine making/harvesting activities • Organize events on your territory • Cycling tours • Horseback riding tours
9. In your opinion what is necessary to develop wine tourism in Georgia? (5 point – most
important, 1 –less important) • • 1 2 3 4 5 • PR • • • • • • To offer quality services • • • • • • Joint use of wine and other resources • • • • • • Lower prices • • • • • • Product variety • • • • • • Rationale Segementation of Target audience • • • • • • Create of networks distribution • • • • •
10. In your opinion what are the bariers to wine tourism develoment in Georgia (You can
check all relevant sources):
• • 1 • 2 3 • 4 5 • Low level of County’s awarness/ lack of infromatoin • • • • • • Product quality • • • • • • Lack of international standards wine tour packages • • • • • • Infrastructure • • • • • • Human Resources (HR) /Qualification • • • • • • Lack of joint strategy (In Tourism sector) • • • • •
11. What is wine tourism for you?
• Additional income • Company advertisement • Product advertisement
• Country image • To follow the trend • Other: ________________________
12. Do you plan some more investment in wine tourism, to develop your business? • Yes • No
13. How many toursits you serve per year? • 100 -200 • 200 – 300 • 300 -400
• 400 -700 • 700 -1000 • More than 1000
14. How many % of toursits are Georgian citizen? • 5-10% • 15% • 20%
• 25% • 30%
• More than 30%
15. How many % are Citizen of Foreign countries? 1. 5-10 % 2. 15%
3. 20% 4. 25%
5. 30% 6. More than 30%
16. From which country are your guests mainly? • EU
o Germany გერმანია o Italy იტალია
o Spain ესპანეთი o Poland პოლონეთი
• Asia • USA • Baltics • Post Soviet union
17. Your guest ’s age? თქვენი სტუმრების ასაკი? • 18 -25 • 25 -35 • 35 -45
• 45 -55 • 55+
18. How you plan to increase the number of toursits (to attrect more tourstis)? • Offer Special packages o Family package o Package for individuals o Backpacker’s package o Pensioner’s package • Expansion of Cellar • Special products • Improvement of Infrastructure • Change of price policy • To Organize seminars and workshops (Georgian wine & culture) • Addition of folk and culture elements • Other ს
19. How much wine (%) is sold on wine-cellar territory to tourists?
• 5% -10% • 15-25% • 25 -35%
• 35 -45% • More than 50%
8.4. Questionnaire - Tourism Wine Stakeholder (Tour Companies) Survey
“International Business Development and Investment Promotion Center” do the given survey, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Association “Georgian Wine”.
Contact information: [email protected], 599-482181 1. Company Name: __________________________________________________
2. Is Wine Tour included in your company’s Tour package ?
• Yes • No
1. Which areas you mainly take tourist groups for wine tour?
_____________________________________________________________________________
2. What criterias do you give the preferences while choosing Wine cellar / Wine factory for wine tour? (You can check several) • Comfortable environment • Price • Good service • Wine variety and quality
• Proximity to the road/easily access place • Ecological cleanness • Other ___________________________
3. What kind of services are included in "wine tour" (You can check all relevant)
• Transportation • Guide • Lunch • Accommodation • Wine-tasting
• Walk in Vineyards • Participation of wine making (or any agro-
tourism activities) • Horseback riding tour • Folk show • Other ____________________
4. Average cost per person for wine tour (1 day costs) • 10-50 lari • 50 -100 lari
• 100-150 lari • More than 150
5. Approximately what is the period (how many days) your wine tour?
• Half day • 1day • 2 day • More than 3 day
6. How many toursits do you serve per year for Wine Tourism? • 100 -200 • 200 – 400 • 400 -700
• 700 -100 • 1000 -1500 • More than 1500
7. Among them how many are Georgian ( resident in Georgia)? • 5% • 10% • 15% • 20%
• 25% • 30% • More than 50%
8. Citizen of foreign country? • 5-10%• 15% • 20%
• 25% • 30%
• More than 50%
9. From which countries are mainly tourists coming? (You can check all relevant sources): • EU countries • Asian countries • USA
• Baltic countries • Post Soviet Union • Other______________________
10. What is average age of tourists? • 18 -25 • 25 -35 • 35 -45
• 45 -55 • 55+
11. What is major interests of your tourists (You can check all relevant sources): • Introduction to Georgian culture and history • Degustation of Georgian wine • Visit to Eco-tourism places • Participation in Agritourist activities • To make familiar with country with another approach • Other ______________________________________________________________________
12. What kind of advertisement do you use to promote wine tours?
• TV • Internet advertisement • Social networks • Exhibitions
• Special offers • Media • Other PR activites: _______
19. In your opinion, what is necessary for further development of wine tourism in Georgia? (5 point-
more important, 1- less important) • • 1 2 3 4 5
More active promotion of country (PR) • • • • • • Improve service level • • • • • • Joint use of wine and other resources • • • • • • Lower prices • • • • • • Products variety • • • • • • Target group’s segmentation • • • • • • Create distribution networks • • • • • • Other ( add your opinions): • • • • •
20. In your opinion which factors are bariers to wine tourism development in Georgia? (You can check
all relevant sources): • • 1 • 2 3 • 4 5 • Low level of County’s awarness/ lack of infromatoin • • • • • • Product quality • • • • • • Lack of international standards wine tour packages • • • • • • Infrastructure • • • • • • Human Resources (HR) /Qualification • • • • • • Lack of joint strategy (In Tourism sector) • • • • • • Other ( add your opinions): • • • • •
8.5 Wine Tourism - Tourists Consumer Survey Results During the consumer survey was collected 310 Questionaries.
ღვინის ტურიზმის კითხვარი - Wine tourism questionnaire
1. ასაკი | Age: % of Respondents
Number of Respondents
18-25
13.55% 42
26-35
38.06% 118
36-45
33.55% 104
46-60
12.58% 39
61-75
1.94% 6
75+
0.32% 1
Chart Number of respondents 310
Number of respondents who skipped this question 0
2. სქესი | Gender % of Respondents
Number of Respondents
კაცი / Male
50.32% 156
ქალი / Female
49.68% 154
Chart Number of respondents 310
Number of respondents who skipped this question 0
3. რომელი ქვეყნიდან ხართ | Your country of residence? % of Respondents
Number of Respondents
საქართველო / Georgia
65.09% 207
აღმოსავლეთ ევროპა / Eastern Europe
6.29% 20
დასავლეთ ევროპა / Western Europe
7.86% 25
თურქეთი / Turkey
2.20% 7
უკრაინა / Ukraine
8.81% 28
რუსეთი / Russia
3.14% 10
სომხეთი / Armenia
0.94% 3
აზერბაიჯანი/Azerbaijan
0.94% 3
Other (Specify)
4.72% 15
Chart Number of respondents 310
Number of respondents who skipped this question 0
4. წლიური შემოსავალი (ევროში) | Annual income (in EURO) % of Respondents
Number of Respondents
0-10,000 €
55.81% 173
10,001-20,000 €
20.32% 63
20,001-35,000 €
8.71% 27
35,001-50,000 €
5.16% 16
50,001-70,000 €
5.48% 17
75,000 € +
4.52% 14
Chart Number of respondents 310
Number of respondents who skipped this question 0
5. ვისთან ერთად მოგზაურობთ | With whom do you travel? % of Respondents
Number of Respondents
მარტო | Alone
12.26% 38
ოჯახთან | With the family
32.58% 101
მეგობრებთან | Together with friends
37.74% 117
პარტნიორთან | as a couple
12.58% 39
ტურისტულ ჯგუფთან | Together with an organized group
4.84% 15
Chart Number of respondents 310
Number of respondents who skipped this question 0
6. რა არის თქვენთვის მოგზაურობის მთავარი მიზანი? | What is the main goal of your trip when you travel?
% of Respondents
Number of Respondents
დასვენება | Leisure
39.68% 123
ბიზნესი | Business
14.19% 44
ტურისტული ადგილების მონახულება | To See touristic areas
22.26% 69
ღვინის და გასტრონომიული ტური | Wine and gastronomy tour
4.84% 15
ქვეყნის გაცნობა | To make familiar with country
17.74% 55
Other (Specify)
1.29% 4
Chart Number of respondents 310
Number of respondents who skipped this question 0
7. საშუალოდ რამდენს ხარჯავთ (ან დახარჯავდით) საქართველოში ღვინის ტურიზმის ერთდღიან პაკეტზე (ღვინის დეგუსტაცია, ლანჩი, ღამისთევა) | How much do you spend usually (or expect to spend) in Georgia for 1 day wine tour (wine degustation, lunch, night stay)?
% of Respondents
Number of Respondents
0-30 ევრო / EURO
30.65% 95
31-60 ევრო / EURO
42.90% 133
61-100 ევრო / EURO
15.81% 49
100 ევროზე მეტი / More than 100 EURO
10.65% 33
Chart Number of respondents 310
Number of respondents who skipped this question 0
8. რამდენი დღე არის ოპტიმალური "ღვინის ტურისთვის" | How many days should lasts your "Wine Tour"?
% of Respondents
Number of Respondents
1 დღე | 1 day
16.45% 51
2 დღე | 2 days
56.13% 174
3 დღე და მეტი | more than 3 days
27.42% 85
Chart Number of respondents 310
Number of respondents who skipped this question 0
9. ძირთადად საიდან იღებთ ინფორმაციას თქვენი მოგზაურობის (ღვინის ტურის) დაგეგმვისთვის(შეგიძლიათ შემოხაზოთ რამდენიმე) | Where do you mainly get information when your travel (for wine tour)? (You can check all relevant sources)
% of Respondents
Number of Respondents
ინტერნეტი | Internet
32.71% 226
სოციალური მედია (Facebook და ა.შ.) | Social Media (Facebook etc.)
18.09% 125
ტურ-კომპანიის კატალოგი | Tour operator brochure
5.07% 35
პრესა | Press
2.89% 20
ინფორმაცია წინა ვიზიტიდან | Knowledge from previous visit
4.49% 31
მეგობრის/ნაცნობის რჩევა | Advice from friends/relatives
24.17% 167
ტურისტული გიდები | Guides (e.g. Time Out, Lonely Planet, Rough Guide etc)
3.62% 25
ტურისტული საინფორმაციო ცენტრები | Information from Tourism information Centers
4.63% 32
ტურისტული გამოფენები | Tourism exhibition
4.05% 28
Other (Specify)
0.29% 2
Chart Number of respondents 310
Number of respondents who skipped this question 0
10. დაასახელეთ 3 ძირითადი ფაქტორი, რატომაც გაინტერესებთ ღვინის ტურიზმი | Which are the 3 most important elements that could convince you to visit a winery/wine area?
% of Respond
ents
Number of Respondents
კულტურისა და ისტორიის გაცნობა | Culture and History
20.80% 161
ღვინის დაგემოვნება | Wine tasting
14.47% 112
რთველში მონაწილეობის მიღება | Wine-making activities
7.11% 55
მეღვინესთან შეხვედრა | Meeting with Wine-maker
4.01% 31
ადგილობრივი საჭმლისა და ღვინის შეხამება და დაგემოვნება | Testing of Local meals and wines
18.09% 140
დასვენება | Leisure
7.24% 56
განსაკუთრებული/განსხვავებული შთაბეჭდილებების მიღება | To receive special/different impressions
7.36% 57
განსაკუთრებული და საინტერესო ღვინოების აღმოჩენა | To discover special and unique wines
7.75% 60
მეგობრებთან&კოლეგებთან სასიამოვნო დროის გატარება | To have a good time with friends and
colleagues
13.18% 102
Chart Number of respondents 310
Number of respondents who skipped this question 0
11. რამდენად მნიშნველოვანია ქვემოჩამოთვლილი ფაქტორები, როდესაც ირჩევთ ღვინის სახლს/მეურნეობას ვიზიტისთვის |How important are the following factors when you select winery for visit?
ძალიან მნიშვნელოვანი Very important
მეტნაკლებად მნიშვნელოვანი | Medium important
| Unimportant პასუხის
გარეშე | No answer
Number of
Respondents
ღვინის სახლის შტატის ცოდნის დონე ღვინის შესახებ და სერვისის დონე | Staff knowledge about
the products promoted and service level 77% (230) 17% (53) 3% (11) 1% (3) 297
ღვინის სახლის შესახებ ინფორმაცია ვებ-გვერდზე ან სარეკლამო მასალებში | Information provided through
the marketing materials and web-site 46% (134) 42% (121) 10% (29) 1% ( ) 287
ღვინის სახლის ვიზიტის მთლიანი ხარჯები | Costs of visiting winery
57% (166) 35% (103) 5% (16) 0% (2) 287
ღვინის სახლთან მისასვლელი დროს | Travel time to winery
38% (108) 43% (124) 16% (47) 1% (3) 282
სხვა ღვინის სახლებთან ახლომდებარეობა | Proximity to other wineries
21% (59) 43% (121) 33% (95) 1% (5) 280
ღვინის სახლი სიდიდე | The winery size 17% (47) 40% (108) 39% (104) 2% (6) 265
ღვინის დეგუსტაციაზე ღვინის სახეობების მრავალფეროვნება | Variety of wines offered for
tasting 56% (165) 35% (104) 6% ( 9) 1% (3) 291
სადეგუსტაციო ოთახის ატმოსფერო და დიზანი | The aesthetic atmosphere and design of wine tasting halls
60% (175) 31% (91) 7% (21) 1% (3) 290
ღვინის სახლის პოპულარობა/იმიჯი | Popularity of winery
37% (105) 38% (108) 22% (62) 2% (6) 281
ღვინის მარნის ან ვენახების არსებობა ღვინი სახლში | Existence of a cellar or vineyard available for visitors
49% (140) 40% (113) 8% (24) 1% (4) 281
Number of Re pondents 309
Number of respondents who skipped this question 1
12. რა ტიპის განთავსების ობიექტს ირჩევთ მოგზაურობის დროს | Which kind of accomodation do you prefer while traveling?
% of Respondents
Number of Respondents
მაღალი კლასის სასტუმრო | High class Hotel
10.78% 33
საშუალო კლასის სასტუმრო | Medium class Hotel
54.90% 168
გესტჰაუსი | Guesthouse
26.80% 82
ჰოსტელი | Hostel
5.23% 16
Other (Specify)
2.29% 7
Chart Number of respondents 306
Number of respondents who ski ped this question 4
13. "ღვინის ტურის" პაკეტში გარდა ღვინის დეგუსტაციისა, რა დამატებითი კომოპნენტების ჩადება იქნებოდა თქვენთვის საინტერესო | In "Wine tour" beside the wine degustation what other components of services will be interesting to have as part of tourist package?
% of Respondents
Number of Respondents
ქართული სამზარეულოს გაცნობა | Georgian Gastronomy
28.97% 210
ფოლკლორული შოუ | Folklore Show
18.34% 133
ღვინის დაწურვაში/არყის გამოხდაში მონაწილეობა | Wine-making activities
16.69% 121
კულტურულ-ისტორიული ძეგლების მონახულება | Visiting Cultural-Historical monuments
20.69% 150
ეკოტურისტული ადგილების ნახვა | Visiting Eco-Tourism sites
14.90% 108
Other (Specify)
0.41% 3
Chart Number of respondents 309
Number of respondents who skipped this question 1
14. გიმოგზაურიათ თუ არა საქართველოში და ყოფილხართ თუ არა "ღვინის ტურზე" ?(თუ თქვენი პასუხია "არ მიმოგზაურია საქართველოში" - გამოტოვეთ კითხვები 15-18) / Have you travelled in Georgia and did you had a "Wine Tour"? (if you answered "I have not travelled to Georgia" you can skip questions 15-18)
% of Respondents
Number of Respondents
მიმოგზაურია საქართველოში, მაგრამ არ ვყოფილვარ "ღვინის ტურში" / I tarvelled in Georgia
but have not took "Wine Tour"
46.53% 141
მიმოგზაურია საქართველოში, მათ შორის "ღვინის ტურშიც" / I travelled in Georgia as well as took "Wine
Tour"
42.57% 129
არ მიმოგზაურია საქართველოში / I have not travelled to Georgia
10.89% 33
Chart Number of respondents 301
Number of respondents who skipped this question 9
15. | What components would you advise to improve in "Wine Tour" (or generally in tourism industry of Georgia) which you noticed during travel in Georgia?
% of Respondents
Number of Respondents
სასტუმრო | Hotel
16.57% 88
ტურ სააგენტოს მომსახურება | Tour Agencies service
13.94% 74
გიდი | Guide
15.63% 83
საკვები/მენიუ | Meal/Menu
10.55% 56
მისასვლელი გზების მდგომარეობა | Access Road/Accessibility
24.86% 132
ღვინო | Wine
4.33% 23
ღვინის დეგუსტაციის ფორმატი | Wine Degustation
13.37% 71
Other (Specify)
0.75% 4
Chart N mber of respondents 254
Number of respondents who skipped this question 56
16. How can you rate your experience for "Wine Tour" in Georgia compared with you travel experience with "Wine tour" in other countries on 5 point scale? (1-Georgia was worst experience and 5-Georgia was best experience)
% of Respondents
Number of Respondents
1
2.20% 5
2
8.81% 20
3
32.16% 73
4
38.33% 87
5
18.50% 42
Chart Number of respondents 227 Number of respondents who skipped this question 83
17. Did you like your travel experience in Georgia? % of Respondents
Number of Respondents
კი | Yes
80.74% 218
არა | No
0.00% 0
საშაულოდ | Average
19.26% 52
Number of respondents Number of respondents who skipped this question
270
40
18. Will you recommend to travel in Georgia for wine tourism lovers? % of Respondents
Number of Respondents
კი | Yes
96.82% 274
არა | No
0.00% 0
არ ვიცი | Not sure
3.18% 9
Chart Number of respondents 283 Number of respondents who skipped this question 27
