Page 38 - bne IntelliNews Georgia country report November 2017

near tripling of its profit in the next four years, the report reads. Since 2017 marks the end of capital expenditure-heavy investments for the group, the following years are expected to bring in higher profits. Therefore, VTB Capital recommends that investors buy GHG stock.
Since 2013, Georgia has offered basic universal healthcare to its population, though the state's contribution to healthcare spending at 40% is only half that of Russia's. Rising domestic incomes, coupled with medical tourism, are expected to boost the Georgian healthcare industry in the medium term.
GHG is poised to benefit from these trends. The group is vertically integrated, offering a one-stop-shop for patients. Furthermore, its wide network of hospitals is expected to expand by 18% by 2021. Coincidentally, hospital care is also the most profitable part of the business, posting a sustainable 30% EBITDA in recent years and accounting for 36% of 2017 revenues. Meanwhile, the base of medical insured patients is expected to increase by 75% by 2021, VTB Capital forecasts.
9.1.6 Tourism sector news
The growth in hotel guests and hotel-like accommodation in Georgia outpaced the growth in tourism twofold in 2016, consultancy Galt & Taggart wrote in a report on September 15. Thus, the number of tourists grew by 19.2% y/y to 2.7mn in 2016, while the number of hotel guests grew by 42.8% y/y to 1.7mn.
Tourism is one of Georgia's drivers for economic growth. The growing number of tourists has prompted a boost in construction activity, services, employment creation and, thanks to a marketing campaign to advertise Georgia and some of its iconic products together, in sales and exports of wine.
Furthermore, according to Galt & Taggart, tourism developments are now taking place outside of traditional destinations like Tbilisi or the Black Sea resort of Batumi. Thus, a 220-room hotel opened in Shekvetili on the Black Sea in September.
The number of international arrivals in August increased by 27.4% y/y to 1.1mn. The majority of foreign travellers continue to hail from nearby countries like Armenia, Azerbaijan, Russia and Turkey, though arrivals from the EU also increased by 29.8% y/y to 47,000.
Officials made an appeal to several countries on August 30 to help in Georgia's ongoing fight against forest fires. Ukraine and Turkey have sent two aircraft, according to the Caucasus Knot, while Azerbaijan has sent two helicopters, according to APA news agency.
Tbilisi has been battling wild fires in the tourist region of Borjomi since August 20. A large fire that damaged 100 hectares of forest was put out on August 29 after 1,500 volunteers and fire fighters, helicopters and a plane battled it for more than a week, but another one started shortly afterwards close to the Abastumani resort.
Rescuers reportedly used bulldozers to cut a four to five-kilometre long road to reach the fire area; a rescue team of 1,000 is at the site, according to Interior
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