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obligations.
“It is so important for us to develop a green economy and at the same time strengthen Kutaisi as an industrial centre. We will support the investor to fulfil this task", Turnava said.
“Big Service Ltd was given land and buildings located on it worth [Georgian lari] GEL68.23mn ($23mn) for GEL1 in 2019 with investment commitments to set up an electric car manufacturing factory within no more than two years (no later than 27.05.2021) and then produce at least 5,000 units of electric cars within no more than 18 months,” Agenda.ge recapped.
In addition, the company was obliged to employ at least 300 people for at least 18 months within a period of not more than one year after fulfilling the obligation to launch the factory.
9.1.5 Tourism sector news
Georgia’s May tourism figures show strong rebound
A report on tourism in May showed 104,700 visitors arrived in Georgia, marking a monthly record since the beginning of the pandemic.
The flow of visitors was 180% higher y/y, but the figure should be adjusted for the low base, as the country was under lockdown in May 2020.
Despite the relative recovery seen in tourism, its volume amounts to 85% less than was seen in the pre-pandemic period, looking at May 2019.
Also, it is not only that the impressive April GDP expansion (+19% versus April 2019) visibly overstates the state of the country’s economy, the recovery in tourism is still iffy and fragile compared to the pre-crisis basis.
According to the tourism statistics, more than half of the visitors, some 52,688, entered the country by air in May. Land borders were opened as of June 1, which was broadly seen as highly encouraging, but the share of 70% visitors coming in across land borders might again overstate the impact in terms of tourism revenues.
According to an estimate by Galt & Taggart, Georgia will receive $1.2bn from tourism this year—still a major plunge from the €3.3bn in 2019.
"Opening the land borders from June 1 will facilitate the gradual recovery of tourism. Prior to the pandemic, in 2019, 70% of the total tourism flow was coming by land. We expect that in 2021, Georgia will receive $ 1.2 billion from tourism, which is 36% of 2019 tourism revenue,” the investment bank said. Last year, Georgia lost tourism revenues of $2.7bn, as revenues from international tourism dropped to $542mn compared to $3.27bn in 2019.
It is also noteworthy that Galt & Taggart has raised its 2021 economic growth forecast for Georgia to 7%.
9.1.6 Infrastructure and construction sector news
Georgia to start Anaklia deepwater port project from scratch
Georgia’s Ministry of Economy has asked international consulting company Maritime & Transport Business Solutions (MTBS) to update the freight forecast and business model for the Anaklia deep sea port project on the Black Sea coast. The update is expected to be completed within eight to nine weeks.
The government terminated its contract with the Anaklia Development Consortium (ADC) in early 2020, citing the investors’ failure to finance their intended $2.6bn project and find a strategic partner.
The government was set to start the process of selecting a new potential investor for another attempt at rolling out a project in the near future, Georgian Prime Minister Irakli Garibashvili said in March.
MTBS will also develop a new marketing strategy and select the optimal model
57 GEORGIA Country Report August 2021 www.intellinews.com