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exceptions.​ On March 21, President of Georgia Salome Zourabichvili declared a nationwide state of emergency for 30 days to allow the government to pursue required measures to fight the impacts of the COVID-19 pandemic in the country.
"Flights will be [almost] completely halted from today. Only Georgian Airlines will operate certain flights in coordination with the government," Prime Minister's Advisor Irakli Chikovani said on March 21.
9.1.4 ​Tourism sector news
Georgia to restore full tourism industry operations as of July 1
Georgia’s domestic tourism will reopen from June 15 and from July 1 the country will receive international tourists, Prime Minister Giorgi Gakharia announced on May 7.
At the same time, tourism companies in Georgia were extended a support package that includes property tax exemptions, tax deferrals and loan subsidies. The government has meanwhile lately promised to come up with a specific plan for a resumption of flights.
"From June 15, Georgia will open to provide local tourism services, and from July 1, the country will be ready to receive foreign tourists. We will do this by creating a safe corridor on land borders with our neighbouring countries, as well as by bilateral negotiations with the countries that are interesting to us in terms of tourism. These negotiations have already begun. Georgia will be one of the first countries to open its borders and tourist infrastructure to receive guests from abroad,” Gakharia said.
The tourism industry in Georgia has been made exempt from the 2020 property tax, with an expected impact of Georgian lari (GEL) 45mn on the state budget. Income tax in tourism will be deferred until the end of the year (GEL90mn impact ).
According to the World Travel and Tourism Council (WTTC) 2018 Report, the direct contribution of travel and tourism to GDP in Georgia stood at 9.3% and it was anticipated that this rate would increase to 10.5% by 2028.
Hotels will be subsidised to assist with their loan obligations. All facilities with an annual turnover of up to GEL20mn (practically more than 95% of the hotel industry in the country) will receive an 80%-subsidy for interest paid on loans of up to GEL5mn (GEL60mn impact on the state budget). Tourism operators will be funded when it comes to participation in international exhibitions.
For restaurants, the property tax exemption and the tax deferral will be applied as well. They will, moreover, benefit from a specific credit guarantee scheme.
As regards the resumption of flights to Georgia, Minister of Economy Natia Turnava explained that the period before July 1 would be used for negotiations with partner airlines and to determine the directions from which tourists will enter in the first restoration phase.
“It is important for us to use this time to conclude negotiations with low-budget companies that have flown with us so far and will continue to fly, and not only with them, because you know that many companies fly to Georgia and our open skies policy is one of our priorities,” the minister said.
According to Turnava, the government was actively communicating with WizzAir to see check on the airline’s readiness to meet all international safety standards set by the World Tourism Organization.
"There will be a specific plan for May and we are working on a shortlist of services that WizzAir is ready to serve, with more prospects to attract more tourists right from the beginning. We are also working with countries through
51​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com