TOURISM IN GEORGIA

An Unexploited Opportunity for Economic Development

by Pul !" #en$e

Georgia is Lagging Badly: Georgia lags behind all the other parts of the ex-
Soviet Union in exploiting its potential for development of tourism. The Baltic
states !rmenia and the "entral !sian countries are far ahead of Georgia in this
respect. So is #ussia. Georgia nevertheless has a more concentrated potential for
development of tourism than any other ex-Soviet country. Georgia hosted only
$%%%% foreign tourists in &%%'. (ts neighbor Tur)ey expects to attract $* million+
(f only $, of these had crossed the border into Georgia the country -ould have
had $*%%%% visitors gained significant foreign exchange attracted a host of ne-
friends and gained understanding for its problems. .ven the most elementary
calculation suggests that Georgia/s G01 -ould gro- significantly perhaps even
exponentially if tourism could be )ic)ed into high gear. 2et it is unli)ely that the
Government of Georgia has ever commissioned a serious cost3benefit analysis of
this critical economic sector. Georgia/s failure to capitali4e on its tourism potential
is a tragedy. But the situation is remediable. 5easures to correct it are urgent.

Georgia/s !dvantages: Georgia has more intrinsic advantages for development
of tourism than any other ex-Soviet country. (t has a good climate -ith terrain
ranging from subtropical to !lpine. (t has varied topography in a comparatively
small space. (t has a uni6ue combination of archaeological and historical sites. (t
is one of the -orld/s most ancient "hristian countries -ith a rich ecclesiastical
culture -hich is still flourishing. (t has a tradition of civili4ed life: art literature
drama music beautiful handicrafts. (t has a varied and broadly appealing cuisine
and vineyards that produce an endless variety of high-6uality -ines.

!bove all Georgia has a cultured literate friendly population. Georgians have
maintained strong traditions of hospitality through the centuries. Georgians
-elcome visitors and )no- ho- to ma)e them feel comfortable. They -elcome
foreigners/ interest in their country and are eager to explain their history and
culture. 2et despite the -armth and -elcoming instincts of the Georgian people
the attitude of the Georgian government to date has been distinguished by a
diffident attitude to-ard tourism almost as if it expects tourists to floc) to
Georgia because of its superior culture archeology -ine etc. This 7they -ill all
-ant to come here7 attitude is a non-starter in today/s -orld and a death sentence
for tourism in Georgia -hich is little )no-n outside of a circle of dedicated
cognoscenti.

!dvantages to Georgia: Tourism is a foreign-exchange earner. Georgia/s
5editerranean neighbors to the -est from Spain and 1ortugal all the -ay to
Tur)ey have long been gaining a ma8or share of their income from tourism.
Tourism development brings good returns to both domestic and foreign investors.
(t brings many other economic and social advantages. 9acilities and industries
serving tourists are non-polluting and do not strain a country/s infrastructure.
They contribute to economic development and prosperity in numerous -ays.
(mprovements re6uired to facilitate tourism--better roads dependable po-er
good communications a range of good restaurants and hotels efficient food and
beverage industries--benefit the society as a -hole. Tourism generates
employment on a broad basis. (t re6uires trained service personnel hotel
managers good transportation facilities guides and tour leaders. Tourism
generates incentives and opportunities for producers of handicrafts clothing
guideboo)s art and 8e-elry to mar)et their production. !rtists in most countries
thrive on tourismC-indeed most survive because of it. 9e- things are more
po-erful in public relations efforts than artists -ho are )no-n and recogni4ed
internationally.

Tourism also serves a valuable public relations purpose. Satisfied tourists
bring more tourists. (f they have good experiences and leave impressed they
generate sympathy and understanding for the country -hen they go home. So far
Georgia has largely failed to gain these advantages.

Tourism plays an important political role for countries li)e Georgia that are
usually supported sometimes substantially by foreign aid directly from friendly
governments. (n foreign aid-providing countries parliaments decide -here the
money goes among many -orthy candidates. Those -ho vote aid for Georgia
-ill find less opposition if a strong body of support exists for Georgia in a donor
country/s population. Tourism can provide this )ind of basis for support. That the
Georgian government has not recogni4ed this glaring reality is further evidence of
its failure to understand ho- and -here tourism should fit into its investment
priorities.

Tourism should not be thought of as an activity involving only enticing
foreigners to visit. 0omestic tourism is also desirable and beneficial in many
-ays.

The Soviet Legacy: Li)e everything else the Soviet system confined tourism
to development by state enterprises. Georgia -as a favorite destination for
Soviet-style tourism both as a vacation site for the Soviet elite and for 7trade
union7 and other )inds of group tourism of the )ind that Soviet leaders felt they
could tolerate and control.
$
:$; The Soviet legacy is a disadvantage to Georgia
no-. (t has left the country -ith huge factory-li)e hotels along the Blac) Sea
shore that have little appeal for .uropean and !merican tourists. #ussian-style
turba4y <7touring bases7= at choice sites such as >ard4ia are dilapidated -rec)s.
The Soviet system did not favor--or indeed even permit--the )ind of tourism
development that appeals to ?esterners or people from other affluent countries
such as !ustralia @apan and many 5iddle .astern countries. These are all natural
sources of tourists for Georgia. Such people if large hotels appeal to them
expect them to operate according to high international standards -ith attention to
individual tastes and needs. They expect a -ide range of appealing private
restaurants at many price levels. (n provincial cities and in the countryside they
li)e to find small friendly hotels and some prefer bed-and-brea)fast arrangements
in private homes. They -ant varied opportunities for shopping exploring
tre))ing mountain-climbing so8ourns -ith families in the countryside and
student travel.

Guided tours for groups and individuals still have a place in Georgian tourism
but the practice needs to be very different from Soviet times -hen foreign tour
groups -ere shado-ed by the AGB regimented lectured at and prevented from
having contact -ith the population. Travel operators -ho are no- offering tour
services in Georgia such as "aucasus Travel understand the need for a ne-
approach and are applying it.

$
[1]Georgia has as many as 5 million tourists some years during Soviet times, only a very
small percentage of them foreigners. The Georgian economy gained little direct advantage
from this tourism, given the nature of the Soviet system.
Georgia -ould be un-ise to aim for mass tourism: The country/s attractions
can best be exploited for their appeal to individuals and small groups. Georgia
can readily attract tourists -ho have already visited other countries and -ish to
experience a ne- and some-hat exotic area. 5ost tourists -ill )no- little about
Georgian history and culture but many -ill -ant to learn. They should be helped
to do so. #oger #osen/s excellent guideboo) of should be -idely available in
shops and hotels in both Georgia and in surrounding countries.
&
:&; (t can help
Georgia attract intelligent educated tourists -ho -ish to experience its culture
and the -armth of its people. Such tourists -ill appreciate the great historical
archaeological and religious traditions and treasures Georgia has to offer them.
The ban)s of slot machines and gambling tables that -ere set up in hotels in
Aobuleti during the Soviet period are of little benefit to Georgia no- and create
an unfortunate image of the country. Georgia has too many positive
characteristics to -aste its energy and reputation permitting -idespread casino
gambling and the negative manifestations that accompany it.

The #ole of Government: Tourism should neither be managed nor controlled
by the government. The central government/s involvement in tourism should be
confined to:

Cimplementation of a simplified visa system.
Cestablishment of a system for ensuring standards in the tourism industry
and enforcement of these standards.
Ctourism promotion.
Cprovision of incentives for tourism development.

Let us discuss each of these topics in detail:

&
[2]On recent visits have not seen it for sale any!here in Georgia" #lassics of Georgian
history and travel are almost impossi$le to find. %&panding tourism !ill create a good
mar'et for reprints.

>isa #egulations: >isas can no- be obtained readily at Georgian diplomatic
establishments abroad but they are difficult for tourists to get -here embassies
and consulates do not exist. >isas should be granted readily at a reasonable price
at borders and airports as they no- are at the Tbilisi !irport.

Standards and .nforcement: !n important function of the national tourism
commission <or other agency designated by the government= should be a system
for approving and rating tour agencies hotels and restaurants and licensing
guides to ensure fairness and 6uality. #atings and licenses should be revie-ed
annually. They should be posted in facilities serving tourists. The system -ill be
of benefit to the local population as -ell as foreign visitors. (t should be
administered in such a -ay as to avoid pay-offs and bribes.

Tourism 1romotion: The central government as -ell as city and regional
governments should allocate resources to encourage publication of posters maps
brochures guideboo)s and especially lo--cost video tapes and 0>0s that -ill be
readily available to tourists. The actual -or) can best be left to the private sectorB
governments should be concerned only -ith accuracy and 6uality. Such materials
should be provided to embassies and consulates for distribution as -ell as to local
authorities in Georgia. #easonable distinctions can be made bet-een materials
provided free and those sold. The government should not attempt to maintain a
monopoly over tourist promotion but should encourage tour operators the
church civic groups and local authorities to ta)e initiative.

Government (ncentives for Tourism 0evelopment:

(n the early stages of tourism development the government should ta)e
initiative to encourage construction and expansion of tourist facilities
establishment of tour agencies and training of personnel to service the tourism
industry. (nvestment in tourism development must be carefully planned and
managed to avoid -aste or diversion of resources. (t should also be underta)en
-ith oversight that ensures continued maintenance and good performance. There
is a great deal of experience in the -orld in tourism development. 5any
countries have incentive programs. Georgia can dra- on the best of this
experience. (t should avoid a common problem in this field: putting the cart
ahead of the horse--engaging in promotion -hile neglecting 6uality of
performance. .fforts to advertise the country/s attractions should be paralleled by
efforts to create conditions -hich ensure that tourists/ experiences are positive.

To encourage tourism local authorities need to ma)e it easy for tourists to visit
their areas. Tourist attractions archaeological sites churches castles great
houses -ineries and significant architectural monuments need good access roads
par)ing lots and trails. Good planning -ould group these attractions in 7clusters7
that deliver the most intense tourism experience for the least inconvenience in
time travel and expense. 0irection signs -ith simple map diagrams should point
to places of interest. ?hen tourists reach them they should find explanations of
-hat they are seeing in .nglish and other international languages. .nglish
distinguished by proper spelling grammar and syntax -ill immediately impress
tourists -ith the seriousness of the effort.
C
:C;

9irst-class sites in Georgia such as Uplistsi)he >ard4ia and 0avid Gared8a are
unnecessarily difficult to reach and visit. ?hile Tbilisi is relatively -ell provided
-ith hotels and restaurants many of its monuments lac) pla6ues -hich explain
their history. 5ost of Georgia/s provincial centers are difficult for tourists to visit
and lac) elementary facilities. Telavi has no hotels or restaurants of even minimal
6uality for visitors. Tourists have no place to stay in Autaisi and fe- places to
eat. Do signs lead visitors to the famous churches in and around Autaisi: Bagrati
Gelati and others. .ven in Tbilisi museums are shabby dar) and poorly provided
-ith explanatory labels on exhibits. 1rovincial museums have all these problems
and are often closed. The central government cannot be responsible for all the
improvements that are needed but it should offer encouragement and incentives
to local governments to ma)e them.

.xamples for Georgia to Study and Learn from: Georgia needs to go no
farther than across its border -ith Tur)ey to see ho- tourism can be developed.
Thirty years ago Tur)ey hosted a couple of hundred thousand tourists per year.
Government incentive programs for development of tourist facilities -ere poorly
administered and often resulted in -asted investment. 1eople too) subsidies to
build motels and lodges but failed to maintain them or operate them properly.
C
[(])ut note this irony* as +ussian declines as the second language of Georgia, it is not
$eing replaced automatically $y %nglish on signs, $uilding designations or even menus.
This results in yet another o$stacle for many e&perienced tourists !ho spea' +ussian and
%nglish $ut not Georgian. %ven for them, Georgia,s cities and historical sites are $ecoming
more difficult to e&plore and understand, not easier.
Tur)ey reali4ed that private initiative is most appropriate for development and
management of tourist facilities. Tur)ey learned too that sites of tourist interest
need to be made easy to visit: good roads trails signs campgrounds and picnic
tables along high-ays. Tur)s learned that good tourist services re6uire training of
personnel to serve tourists encouraging citi4ens to learn languages and educating
guides. Eigh schools vocational colleges even Tur)ish universities offer courses
in s)ills that serve the tourism industry. The result has a literal explosion of
tourism in Tur)ey in the past t-o decades to the point -here it is a ma8or
component of the country/s economy. Tourists -ho come constitute a body of
friends throughout the -orld.

Dot only can Georgia learn from its neighbor Tur)ey it can cooperate -ith
Tur)ey for many tourists -ho come to Tur)ey are interested in crossing its
eastern border into the "aucasus. ! fe- do and a fe- Tur)ish tour operators
have started to ma)e convenient arrangements for their clients. (t has not been
easy but the possibilities are almost limitless. They include to start -ith not only
travel by car or bus to Batumi but cruises from Tur)ish ports along the Georgian
coast -ith visits to Batumi 1oti and more distant sites such as >ard4ia >ani and
the highlands of !8aria. 5any tourists -ho come from Tur)ey are also interested
in going into the interior of Georgia.

Tur)ey is of course not the only country from -hich Georgians can learn
more about modern tourism. Greece (taly and Spain have enormous experience
in profiting from tourism. The same is true of countries such as Slovenia and
"roatia -ho no- gain income from their ports and islands along the !driatic
coast.

Georgia/s 5ountains: (n the late $Fth and early &%th centuries .uropeans -ere
attracted to the mountains of the "aucasus in much the same -ay that they had
earlier become attracted to the !lps. (nterest in the !lps too) many forms: serious
climbers tre))ers vacationers -ho preferred to loo) at the mountains rather than
climb them people -ho simply -anted to breathe fresh air observe the life of
people living in the mountains and learn about their customs and handicrafts. !
small number of .uropean <and even a fe- !merican= climbers and tre))ers
visited the mountains of the "aucasus before ?orld ?ar ( and -rote boo)s about
them. (t -as a tragedy that the advance of the #ed !rmy into independent
Georgia and the imposition of communism made the "aucasus as remote for
visitors from the outside -orld as !ntarctica or Greenland. !fter ?orld ?ar ((
the Eimalayas--(ndia Depal Lada)h Eun4a--became popular destinations for
adventuresome .uropeans !mericans !ustralians and @apanese and have
remained so. Until $FF$ the "aucasus remained terra incognita. Dot much has
happened since because the region to the north of Georgia has been -rac)ed by
disorder and violence. ! fe- parts of Georgia are inaccessible too but most of
Georgia/s mountain valleys are open and of great potential interest to visitors.
?ith restoration of relatively peaceful conditions the "aucasus could rival the
!lps as a destination for tourists for .urope is close+

But even under present conditions Georgia/s mountain areas are far more
difficult to visit than they need to be. They represent an enormous asset for
tourism not only because of their natural features but because of their history and
culture. The mountain valleys from Svaneti to the Georgian 5ilitary Eigh-ay are
safe but difficult to visit. They offer many attractions including the potential for
s)iing and -inter sports but they lac) hotels and restaurants -ith the exception of
the modern resort hotel at Gudauri. 9arther east Ahevsureti -ith the dramatic
fortified site of Shatili and Tusheti are even more difficult to reach over land but
have uni6ue features of great tourist interest but nothing in the -ay of facilities to
accommodate visitors -ho might manage to come. The most effective -ay of
getting there is by helicopter -hich fe- can afford. The remaining inhabitants of
these regions -ould benefit from the development of tourism for they need
means of earning a living. Gther-ise they drift south-ard and the mountain
valleys suffer depopulation.

Several other mountain areas in Georgia have a potential for tourism
development: The Surami range the mountains of !8aria mountain areas in
@ava)heti. !mong these only Ba)uriani has been developed as a -inter sports
center but it is not up to international standards. (n similar terrain in !ustria and
S-it4erland northern (taly Southern Germany and in the 9rench !lps even in
Slovenia every valley has lodges restaurants and tre))ing trails and countless
s)i-lifts and cable cars have been built during recent decades. Georgia has an
immense unexploited potential to do the same.

1ossibilities and 1riorities: Georgia has so much potential that it is difficult to
recommend priorities for development. Georgia should try to do some of the
easiest things first to attract tourists ac6uaint them -ith the country and its
culture and send them a-ay as friends of the country -ho -ill encourage others
to come. 1rovincial cities and regions should be encouraged to assess their
tourism potential. !8aria e.g. has obvious possibilities. Batumi alone is
appealing to foreign tourists -ho come to visit the sites of northeastern Tur)ey
including the great monuments of medieval Georgian civili4ation -hich Tur)ey
has made accessible. 1eople of Georgian-origin living in northeastern Tur)ey are
interested in coming across the border to see the Georgian side. ! fe- simple
measures could ma)e it easy for them to visit. .xpansion of facilities in Batumi
<a process -hich is beginning= can lay the basis for a tourist industry in !8aria.
The #oman fortified camp at Gonio3!psara is a first-class archaeological site.
Batumi is a charming late $Fth-century city -ith the basis for a lively cultural
life. The great botanical garden above Helyony 5ys cleaned up and improved
can appeal to nature-lovers. The Blac) Sea coast offers opportunities for bathing
deep-sea fishing sailing and -ater sports.

?hile it is urgent for Georgia to ma)e immediate efforts to attract tourists and
give them a good experience the Georgian entrepreneurs should considering
ma8or pro8ects -hich -ith reasonable incentives could attract serious foreign
investment:

C#oc)-church and monastery sites such as 0avid Gared8a Uplistsi)he and
>ard4ia could be developed to have as much appeal as "appadocia in
Tur)ey. Georgian entrepreneurs -ould be -ell advised to ma)e a short
trip to central Tur)ey to study the "appadocia Lodge or the Aaya Eotel
near Devsehir as an examples of imaginative development of tourist
facilities that could be duplicated in Georgia.

CThe old -alled to-n Sighna)i in Aa)heti could be rehabilitated and turned
into a gem that -ould attract tens of thousands of visitors every year. (t
-as a ma8or medieval trading center. (ts location on the escarpment
overloo)ing the !la4ani valley is dramatic. Dearby is Bodbe -ith its
church that contains the tomb of Saint Dino the gentle "hristian girl -ho
came from "appadocia to convert Georgia in the 'th century. Sighna)i
combines a series of uni6ue attractions that could ma)e it as interesting as
"arcasonne in 9rance or several of the (talian hill to-ns. But -hen ( -as
last in Sighna)i ( could find no place to stay and no-here to get a simple
luncheon+ Georgia is missing a great opportunity.

C!t 0manisi in southern Aartli -orld-famous archeological discoveries have
recently been made and -idely publici4ed. Eere the oldest examples of
homo erectus outside !frica have been found. .xcavations are
continuing. ! large trading city existed here in the late 5iddle !ges on
the route to !rmenia and the south. ! beautiful early church is -ell
preserved and near it stands a fortress. Gn the -ay to 0manisi from
Tbilisi the high-ay passes through Bolnisi site of a 'th-century church
said to be the oldest still in use in Georgia. Dot far to the -est of high-ay
by -hich one comes from Tbilisi is a spectacular castle -hose history (
have never been able to discover. !t nearby Sulhan-Saba a museum is
devoted to the accomplishments of the Grbeliani family. The -hole
region could be a center of tourist attraction not only for foreigners but for
Georgians too. ?hen ( visited it a fe- years ago ( found no
accommodations or restaurants any-here.

C!nother long-)no-n famous archaeological site >ani in (mereti is even
more difficult to reach by passable roads. ( spent a hard day finding my
-ay to it. >ani -as the center of "olchian civili4ation and the colorful
legends of the Golden 9leece @ason 5edea and other semi-mythological
personalities. Georgia/s most famous archaeologist the late Gtar
Lord)ipanid4e devoted much of his life to exploring it. (t has a rather
do-ntrodden museum but nothing else.

CGeorgia has at least a do4en mountain valleys -hich could be developed as
attractively as those of the !lps. 0evelopment -ould benefit the
population and the economy and encourage preservation of Georgia/s
uni6ue mountain cultures. These valleys -ould provide recreational
opportunities for Georgians and visitors at all seasons.

The sites listed above are only a fe- of those ( have visited. There are many
more among them 5ts)heta Tsinandali Shatili Ushguli and 5estia Aa4begi.
There are no doubt others that have not yet been 7discovered7.
'
:';
'
[-] have omitted discussion of T$ilisi, !here many constructive developments have
occurred, though further improvements are needed. The imaginative open.air house
museum $elo! /st$a is in deplora$ly run.do!n condition, for e&ample. have also left out
regions currently outside control of the Georgian government* 0$'ha1ia and South Ossetia.
They have tourist attractions from !hich they and the !hole country !ould $enefit !ith
restoration of normality.

?hat is to be 0oneI "ertainly more than has been done since Georgia became
independent. The ne- government resulting from the #ose #evolution appointed
one of Georgia/s fe- successful tourism pioneers Saba Ai)nad4e <founder of
"aucasus Travel= Tourism "ommissioner a fe- months ago. Ee is -ell 6ualified
for the 8ob but the "ommission he heads is housed in a shabby building at the
north end of Tbilisi. Ee has a limited staff and a budget of merely JC%%%% a
year. Eis office is attached as an afterthought to another ministry and Ai)nad4e
himself carries only the title of 0irector not 0eputy 5inister or even something
more impressive. This in itself symboli4es the failure of the government to
develop the country/s tourism potential. Deither money alone nor a large
government bureaucracy is the recipe for generating momentum in tourism. !
modest realistic budget -ould nevertheless be evidence of that the government is
serious about reali4ing the benefits that tourism can generate for Georgia.

Let us consider -hat has been happening in a distant country also recovering
from communism -hich has many similarities to Georgia--both positive and
negative: .thiopia. ( happen to be very familiar -ith it. (t too is one of the oldest
"hristian countries in the -orld. (t has a rich civili4ation and colorful history. (t
is blessed -ith spectacular and varied geography. The most ancient s)eletons of
human beings have been found there. (t is has uni6ue architectural monuments
and hundreds of still functioning early "hristian churches 8ust li)e Georgia. (t
has important 5uslim and @e-ish minorities too. !nd it too is located in an
unstable region and has border problems and difficult neighbors li)e Georgia.
9inally it is more difficult and more expensive for foreigners to travel to .thiopia
than it is to Georgia. Devertheless .thiopia attracted $K$%%% foreign tourists in
&%%C and is expecting a &%, increase in &%%': t-enty times more than Georgia+

(f .thiopia can do it certainly Georgia should be able to. Georgia/s failure to
develop its tourism potential is embarrassing to those of us -ho are trying to help
Georgia consolidate its independence and ma)e permanent improvements in the
life of its people. #emedying this situation should be one of the present
government/s )ey priorities.


Note% Pul #en$e& '(o live) in *)(in+ton& ,ir+ini& i) ,ice Pre)ident of t(e
Americn Geor+in !u)ine)) Development -ouncil" #e i) lon+.time
)tudent of Geor+in (i)tory nd culture nd () trveled t(rou+(out Geor+i
)ince /00/" #e vi)ited t(e country mo)t recently in October 1223"