Page 50 - GEORptNov19

The ban was introduced after​ ​mass protests outside the Georgian parliament​, triggered by reports that a Russian lawmaker was giving a speech from the speaker’s chair inside the legislature. At an emergency session of the Russian Security Council, Putin announced a temporary ban on flights to and from Georgia starting July 8, “to protect Russian citizens from violence or other illegal actions.”
9.1.5 ​Tourism sector news
Billionaire oligarch Bidzina Ivanishvili, who leads the ruling Georgian Dream party, has released a statement saying that “as the state does not have the resources to develop Tskaltubo spa resort” he has decided to completely restore and revamp all of its 22 hotels and nine baths. State-owned Tskaltubo Resort, presently abandoned, was a popular tourist destination during Soviet times.
“Since the state does not have the resources to invest several hundred million in the full-scale rehabilitation of Tskaltubo, and there is no development plan for the resort, I have decided to manage the Tskaltubo rehabilitation project personally. I will redeem all 22 hotels and nine baths and rehabilitate them fully,” the statement added.
Ivanishvili, an ex-PM whom many observers see as the de facto leader of the small nation, said that Tskaltubo has the potential to become the health and tourism capital of the region.
Minister of Economy and Sustainable Development Natia Turnava told journalists that until now the state was ready to give the sanatorium to an investor for a symbolic one lari in return for investment, but it turned out that investors were not interested.
Turnava did not specify whether Ivanishvili would obtain the state property for such a sum.
“As for terms, conditions, value, these are details that will be further specified when we come up with a fully complex plan, but now I want to tell you that everything will be done in accordance with the law, so that the state interest is not affected and the state benefits from it,” she said.
Georgian Prime Minister Giorgi Gakharia praised Ivanishvili’s decision and implied that taking over the asset would not be a complicated or costly process.
"Today, Bidzina Ivanishvili has announced the implementation of a major project for our country. The Tskaltubo Revival Project is another major charitable investment that will bring Tskaltubo back to its function and restore its international resort status,” he stated.
The revenues generated by Georgia’s tourism industry will still rise this year albeit at a slower rate than previously expected — by 4.3% y/y to $3.4bn — despite the Russian flight ban enforced in July, according to a Tourism Market Watch report by Galt & Taggart investment bank.
Direct flights from Russia were banned by the Russian authorities earlier this year amid a worsening of relations between the two countries. However, direct flights between Georgia and Russia might resume soon, the G&T report reads, mentioning statements from Russian government representatives.
The revised forecast accounts for a negative downgrade from the 12.3% y/y advance in revenues to $3.6bn envisaged before the Russian flight ban. The $0.2bn revision in the forecast for Georgia’s revenues from international tourism is equal to 1.2% of GDP. For comparison, the World Bank’s Europe and Central Asia Economic Update report issued October 9 estimates that the
50​ GEORGIA Country Report​ November 2019 ​ ​www.intellinews.com