Why is the GEL directly tied to Georgia’s travel industry?

3 mins read

Tourism in Georgia is an increasingly important component of the country’s economy. In the country of 3.7 million people, the number of international arrivals to Georgia reached a record high of 9.3 million in 2019, most analysts predicted 2020 to be even better. Nobody has predicted a global pandemic. 

Last year, the coordinated commitment of travel and tourism to GDP in Georgia was 9.3% and it is expected that this rate will increment to 10.5% by 2028. No wonder that the most source of the occupations is Tourism. Final year, the full commitment of travel and tourism to work was 30%, which includes 500 000 employments. Among them are jobs, the creation of which was encouraged by the tourism industry. So within the final few a long time, the tourism industry in Georgia has been booming. From a relatively unknown small put a decade back, the nation has topped various worldwide rankings of the finest put to visit since 2016. Tbilisi has as of late scored tall as one of the leading city around the world for female solo voyagers to visit in 2020.

How is the Georgian gov’t supporting the tourism industry hit by the coronavirus outbreak?

In March, the Georgian government has arranged an Anti-Crisis financial boost bundle worth around 1 billion Lari (approximately $330 million). The measures incorporate tourism-related foundation investing, and exceptions from property and pay charges for tourism businesses, covering around 18,000 companies and more than 50,000 representatives. 2000 guesthouses, little and medium-size lodgings (up to 50 rooms) will get bank credit intrigued rate co-financing for six months. Also, Tbilisi City Hall exempted open cafes from paying rents in 2020, and little and medium enterprises are exempted from paying rents for three months.

  • 45 million GEL will be spent on the property tax exemption of the tourism industry in 2020
  • 90 million GEL – personal income tax exemption and deferral for the travel industry 
  • 60 million GEL – bank loan subsidies for about 3,000 hotels 
  • 5 million GEL – support to travel agencies and guides 
See also  Fitch Affirms Georgia at 'BB'; Outlook Stable

In total, 200 million GEL will be spent from the state budget for tourism sector recovery plan. 

Program ‘Work from Georgia’

A modern platform ‘Work from Georgia’ for remote citizens wishing to work remotely in Georgia has been propelled nowadays. The venture was arranged by the National Tourism Organization on the enlightening of the Government of Georgia. The National Tourism Organization reports that citizens and inhabitants of more than 95 nations, counting the Joined together States and the European Union will visit Georgia inside the system of the extend. They can remain in Georgia for more than 180 days. The unused stage will be utilized by the self-employed, full-time representatives who work remotely, and business visionaries who have the opportunity to run a trade from anyplace within the world.

“Based on the venture, there are three categories: self-employed, full-time representatives and business visionaries, who will be able to fill out the application on stopcov.ge. The members within the venture will go through a 12-day obligatory quarantine, the costs of which can be repaid by the remote citizens themselves. Submitting wellbeing protections will be mandatory,” the Head of the National Tourism Organization Mariam Kvrivishvili said.

This project will both help the private sector increase sales and maintain jobs and will have a positive impact on Georgia’s position as a safe destination. Your personal budget for Georgia will of course depend on your travel style and preferences. To stay in Georgia and work here will still not be expensive. Here it is possible to rent a decent apartment for 250$ and food doesn’t cost much too. Actually, many people are considering investing in Georgia, because it’s the location and potential to get through all crisis. Georgia is becoming a place where brokers want to stay and develop their roots. Forex brokers in Europe are becoming more and more interested in investing in Georgia. Actually, not only brokers. Because of the fast development of computer services, marketing and art, this place is becoming more and more industrial.  Backpackers can get by on as little as 20 USD/day while even luxury travellers will find Georgia incredibly affordable. Even if you stayed at boutique hotels, ate and drank until you bury trust, and only used private transfers to get around, you’re still looking at a very inexpensive stay.

See also  Fitch Affirms Georgia at 'BB'; Outlook Stable

What do things cost in Georgia

Georgia’s official currency is the lari, abbreviated as GEL. Georgia uses both banknotes and coins, called tetri. It’s important to know that exchange rates tend to fluctuate quite dramatically. Costs often go up or down to compensate. Lari’s course is very connected to the tourism industry because of the main part of the population are working in fields which are connected to travelling. Happily, Georgia is moving forward fast, because it is located at the crossroads of trade and commerce between East and West. Georgia is ideally situated to get to markets of Asia and Europe, as well as the Center East and the CIS nations. Business-friendly directions, a favourable charge and traditions system and generally low-cost work environment have played a key part in creating fabricating segment in Georgia.

The food, metals and non-metallic mineral item provide the biggest industrial base for Georgia, whereas Attire and Material, Car and Aviation, Hardware, Plastics and Furniture are the quickest developing businesses. Hence, the country offers plenty of openings inside the fabricating industry. So, for everyone who is searching for new places to invest, it’s a golden place to try. 

Leave a Reply