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ECONOMY
has already seen energy-sector investments from a number of large companies such as British Petroleum, the Czech JSC “Energo Pro,” the Russian JSC “Energy Invest,” and the Azeri SOCAR Energy Georgia.
For more details on the infrastructure sector in Georgia, please refer to page 34.
Agriculture: Georgia is a traditional agrarian powerhouse, thanks to its enviable climatic features and skilled
straddles nine climatic zones, making its fertile soil fit for almost all varieties of crops.
Arable land and woods occupy 85% of its land area. In addition, government reforms have made the agricultural sector lucrative for FDI by ensuring zero property tax on small plots of land (less than 5 hectares) and property transaction, zero VAT on primary supply of agricultural products and zero import duty on equipment. Georgia also follows a ‘Generalized System of Preferences’ (GSP) with the US, GSP+ with the EU and a free trade agreement with Turkey and the
STRATEGY
CIS countries.
Investment Climate Advisory Services named the following agricultural subsectors in Georgia among the most competitive worldwide: wine, nuts, tea, vegetables, fruit, meat and dairy, fish and sea products and grains and pulses.
For more details on the agricultural sector in Georgia, please refer to page 40.
Tourism: Georgia is often considered Europe’s undiscovered secret, delighting visitors with a heritage
spanning over 4,000 years, stunning landscapes, legendary hospitality and culinary riches. With no visa requirements for the citizens of 67 countries and zero VAT liability on tour operators for revenues from incoming tourists, the sector remains one of the most promising investment avenues in Georgia.
In 2008, international tourist arrivals reached an all-time high of 1.3million,drivingoccupancyrates at the Marriott, for instance, to as high as 85%. Apart from Marriott, Sheraton and Radisson SAS, which
are already present in the hotel sector, Intercontinental, Kempinski and Hilton are in the process of constructing their first hotels. Two- and three-star and budget hotels are also witnessing significant buzz in investor circles.
with direct connections to 32 cities, another aiport at Batumi and the slew of roads and highways under construction also augur well for Georgian tourism.
For more details on the attractions of Georgia, please refer to page 50.
In 2009, the World Bank’s
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