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DOI 10.51582/interconf.19-20.04.2024.001
The main aspects of the state policy
of promoting tourism activities in Georgia
Azmaiparashvili Maia1, Goderdzishvili Ia2
1 Doctor of Ecology, Associate Professor;
Gori State University; Republic of Georgia;
European University; Republic of Georgia
2 Academic Doctor of Business Administration, Associate Professor;
Technical University of Georgia; Republic of Georgia;
European University; Republic of Georgia
Abstract.
Many countries of the world consider tourism as an important and integral part of the
country's development strategy. Political aspects of tourism are related to economic
effects. The main principle of tourism policy is to formulate issues for the state to get
the maximum benefit from the economic and social income of tourism. The paper discusses the
role of the state of Georgia in the development of tourism, the processes of economic policy
formation of tourism produced by it, and modern challenges. Analyzed satellite reports,
statistical information to measure the effectiveness of tourism. In the article, we discussed
the new law "On Tourism" developed for the development of the tourism industry, which
defines the state policy in the field of tourism and the subjects and directions of tourist
activity; the rights and guarantees of the tourist as a consumer, the functions and
obligations of the state government and local self-government bodies; mechanisms of private
and public cooperation in the field of tourism, tourist safety and other issues related to
tourism. In the research, we rely on qualitative research methods, empirical research is
used, the current situation in the field of tourism in Georgia was analyzed in detail,
including various statistical data and conducted studies. Based on the analysis, it is
determined that as a result of the increase in the amount spent by visitors, the contribution
of tourism to the economy of Georgia has increased, more attention is paid to the quality
and variety of visitors than to the number of visitors. The number of domestic tourists has
increased recently.
Keywords:
tourism policy
state
industry
sustainable
challenges
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Introduction. Edgell argued that the main goal of tourism
policy is to combine the economic, political, cultural,
intellectual and economic benefits of tourism with people and
countries in order to significantly improve the quality of
life and provide the basis for peace and prosperity [1].
Tourism policy is important because it provides (provides) a
common, agreed-upon goal for action in tourism. The policy
sets broad parameters for planning and coordinates all
stakeholders in the tourism chain. The United Nations World
Tourism Organization and the World Travel and Tourism Council
are of great importance in determining the tourism policy of
the countries, which try to best represent the business
environment, local community interests in tourism and
government structure. The United Nations World Tourism
Organization (WTO) encourages all tourism stakeholders and
tourism-related organizations to develop and adhere to a
tourism code of ethics. It provides a business ethics
framework for examining the impact of international tourism
policy issues as they apply to contemporary local, state,
regional, national, and international issues. The directives
issued by the World Tourism Organization to Georgia in order
to promote the development of tourism processes in 2024 are
interesting [2].
Considering the role of state policy in the paper, we
discussed the current state of development of the tourism
sector of Georgia. The new law "On Tourism", proposed
directives and new regulations adopted for the purpose of
legal protection of the field in Georgia [3]. It is important
to consider the main directions of tourism activity and modern
challenges, taking into account the aspects of sustainable
tourism management. The economic effectiveness of the tourism
sector and a wide range of social consequences have been
studied, satellite reports have been analyzed. The purpose of
the research is to analyze the tourism policy of Georgia and
discuss the potential of tourism in Georgia from a state point
of view, to identify and define all the factors that shape
the concept of tourism policy in Georgia.
Aim of research. The purpose of our research is to analyze
the tourism policy of Georgia and discuss the potential of
tourism in Georgia from a state point of view, to identify
and define all the factors that shape the concept of tourism
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Proceedings of the 7th International
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«Scientific Trends and Trends in the
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(April 19-20, 2024).
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policy in Georgia.
Methodology. In the study, we rely on qualitative research
methods, empirical research is used, the current situation in
the field of tourism in Georgia, the role of the state in the
development of tourism policy, various statistical data and
conducted studies were analyzed in detail. Based on the
analysis, it is determined that as a result of the increase
in the amount spent by visitors, the contribution of tourism
to the economy of Georgia has increased, more attention is
paid to the quality and variety of visitors than to the number
of visitors. There is an increase in the number of domestic
tourists at tourist destinations.
Literature review. The works on the issues of the state
policy of tourism and legal provision have been published by:
M. Metreveli, Kh. Berishvili, L. Kobaladze, G. Shubladze,
G. Bregadze, L. Dolokashvili, A. Okrotsvaridze,
M. Vadachkoria, L. Korganashvili, L. Okrotsvaridze,
V. Arghutashvili, L. Gaidukovich d. Timothy, A. Bulls and
others.
In the scientific literature reviewed by us, there is no
unified view on the influence of state authorities on the
field of tourism. The impact of state government bodies on
tourism is defined as regulatory, as governing and as state
policy makers. According to the first approach, the state
manages tourism. According to the second view, the state
regulates the processes in tourism, this view is based on the
fact that tourism is a field that is structurally composed of
business entities that are not directly under the authority
of state authorities, therefore the term regulation is used,
and the third view, according to which it is not important to
use the terms - Management and regulation - differentiation,
it is possible to use both management and regulation at the
same time.
Discussion and Results. In modern conditions, the state
policy in tourism includes a system of methods that ensures
the regulation of socio-economic, cultural, foreign-political
and other measures of the field by state and private
organizations. The main task of the country's tourism policy
is to develop such an economic and organizational mechanism
that will support the establishment of a fair, sustainable
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world tourism order and will bring equal benefits to all
sectors of society [4].
In Georgia, tourism is recognized as a priority direction
for the development of the national economy. The Ministry of
Economy and Sustainable Development of Georgia, the National
Administration of Tourism of Georgia, the Ministry of Foreign
Affairs, the Ministry of Environmental Protection and
Agriculture of Georgia, the Ministry of Culture, Sports and
Youth, the Ministry of Internal Affairs, the Ministry of
Infrastructure, Regional Development participate in the
development and implementation of the state tourism
development policy of the country [5].
The primary task of tourism development policy in Georgia
is to complete the legislative framework of the field and
harmonize it with the European Union legislation. There are
national laws regulating tourism in the countries, where the
main concepts and principles of development are defined. The
goal of the state policy in the field of tourism in Georgia
is to support the sustainable development of the economic
sector of tourism, promote employment in the field of tourism,
increase the tourism potential of the region and develop the
relevant infrastructure. "Strategic tourism planning" is a
process that aims to obtain benefits from tourism in such a
way that the result is a balance of appropriate quality and
quantity of supply at the appropriate level of demand. In the
strategic planning of tourism, economic, environmental and
socio-cultural factors and their relationship for the
development of sustainable tourism, as well as the goals for
the development of sustainable tourism, should be taken into
account [6]. Thus, strategic tourism planning is a structure
designed to provide direction for any tourism organization or
destination and emphasizes quality, efficiency and
effectiveness.
Tourism policy affects such areas as: socio-economic
development of the tourism destination; Taxation-types and
levels; Financing of the tourism sector - sources and
conditions; product development support; regulatory
practices; environmental practices; Marketing practice. Thus,
according to the Tourism Law of Georgia, the main principles
of state policy in the field of tourism are:
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1. Support of tourist activity, creation of favorable
legal and economic conditions and relevant infrastructure for
its development;
2. determination of priority tourism destinations and
promotion of development;
3. promotion of Georgia as a tourist destination;
4. Protection of tourist resources for sustainable
development of tourism;
5. Creating an appropriate legal environment and
protecting the legal interests and rights of tourists and
tourism service providers;
6. Ensuring the development of international cooperation
in the field of tourism [7].
Regulations for high-risk tourism activities,
registration and qualification requirements for guides have
become important for business. A tourist guide who is a
citizen of a foreign country is obliged to register in
accordance with the rules established by the Government of
Georgia.The accredited personnel certification body is
obliged to ensure the publicity of the register of certified
tourist guides, its constant updating and sharing with the
legal entity of public law - the National Administration of
Tourism of Georgia.
Tourism Satellite Accounts (TSA) in a country are a
standard statistical framework and one of the main tools for
measuring the economic effects of tourism. It was developed
by the World Tourism Organization (UNWTO), the Organization
for Economic Co-operation and Development (OECD), Eurostat
(Eurostat) and the United Nations Statistics Division (UNSD)
[8].
It should be noted that the year 2023 was particularly
successful for the tourism industry, including the statistics
of visits by international travelers - their number exceeded
seven million, which is 30.3% more than the same indicator of
the previous year (Figure1). In addition, 4,669,467
international tourist visits took place in Georgia last year
- compared to 2022, the increase is +27.8%. In 2023, the
income from international tourism exceeded the data of 2022
by 17.3% (608.7 mln US dollars) [9].
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Figure 1
International Traveler Trips
Source: The Ministry of Internal Affairs
In 2023, the country received an income of 4.1 billion US
dollars from tourism. (Figure 2). Georgian airports served 6
million passengers. According to global tourism revenues, the
recovery is 93% [10].
Figure 2
International Tourism receipts. (X1,000 US dollars)
Source: National Bank of Georgia
In 2023 the largest number of visitors (1.2 million
visitors) was from Russian Federation, which amounts to 23.2
percent of total number of visitors. On second place is Turkey
with 21.4% share and on third place – Armenia with 13.5%
share. Correspondingly, the largest number of visits were
made by the citizens of Russian Federation (1.42 million),
Turkey (1.40 million) and Armenia (962.5 thousand) [11].
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Figure 3
Visitors by the country 2022-2023
Source: www.geostat.ge
In 2023 the average number of nights spent during the
visits equaled to 5.4 nights, which is 13.6 percent lower
than the figure indicated in 2022 (6.2 nights). 72.8 percent
of visits was repeating visit. The chart below shows the
distribution of visits by the level of satisfaction in 2023
[12].
Figure 4
The distribution of visits by the level of satisfaction in 2023.
Source: www.geostat.ge
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The role of tourism in the country's economy is determined
by its contribution to the GDP, the effectiveness of its
influence on the quality and duration of people's lives. In
2023, the GDP of Georgia in current prices amounted to 80.2
billion GEL. The travel and tourism industry is one of the
fastest recovering sectors among services. According to the
World Travel and Tourism Council (WTTC), in 2022, the Travel
& Tourism sector contributed 7.6% to global GDP [13].
The demand for hotels in the country is high, especially
for high-budget establishments. In 2023, high-end hotels saw
significant growth, reaching an average occupancy rate of
58%, an increase of 8 percentage points compared to 2022. By
2024, a 4% increase in the occupancy rate is expected.
Georgia's tourism indicators are slightly behind the
world indicators, and in 2023 compared to 2019, an 80%
recovery was observed. The unstable geopolitical situation of
the region has a significant impact on the development of
tourism in Georgia. However, there is significant potential
for further demand growth, primarily because the recovery is
still lagging behind the levels seen in 2019 [14].
The most important thing for the country is the
rehabilitation and development of Georgian resorts. The year
2023 was successful with large-scale infrastructure projects
implemented in the mountain resorts of Georgia - 300 million
in Bakuriani. Lari was invested, and the amount of investment
in Gudauri was 70 million. amounted to GEL. Last year ended
with significant results for the aviation industry as well,
data confirms that 9 new airlines entered the Georgian market
in 2023, and 21, including 6 new European destinations, were
added to air flights. Among the strategic new destinations
are Hamburg, Copenhagen, Madrid, Frankfurt, Brussels, Poznan,
Cologne and Delhi. Today, leading airlines operate on the
Georgian air market - Wizz Air Hungary, Turkish Airlines,
Pegasus, Georgian Airways, Azerbaijan Airlin, Fly Dubai, Air
Arabia, etc[15].
Conclusion and recommendations. Tourism can stimulate
economic development faster than many other industries, it
quickly generates the necessary financial capital, increases
the awareness of a country's tourist destination, improves
infrastructure and creates new job opportunities. In
developing countries, the benefits of tourism development are
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more visible. If the country is able to meet the demand of
visitors in a qualitative way, then the export earnings of
the country increases significantly.
Although Georgia recognizes tourism as one of the priority
areas of national resorts and economic development, it still
cannot create favorable environmental conditions for tourism
and resort activities. Effective and successful functioning
of tourism is impossible without state regulation of this
field, tourism policy and the development of a complex state
program for tourism development. Currently, 60% of Georgian
resorts need development in terms of infrastructure. An
important project is planned, which includes an investment of
one billion dollars, within the framework of which the
important resorts of Georgia will be rehabilitated, the
infrastructure will be renewed, which will contribute to the
strengthening of the economy of our country and the
diversification of tourist products.
There is very high competition in the field of tourism in
the world market, and therefore, in order to find your own
niche, it is necessary to have a well-thought-out policy, a
sustainable planned and implemented strategy. Most
importantly, short-term and long-term goals in this strategy
should be focused on the final, sustainable result, not short-
term success.
It is important to develop and position the country as a
brand, compete for similar tourist markets, increase market
share, develop infrastructure, improve the service sector,
raise the quality of education, attract green investors,
promote and develop the local private sector through effective
partnerships.
Tourism appears as a means of achieving economic and
political goals, according to the development of tourism,
targeted state support of the tourism industry, development
of accommodation facilities with world standards, development
of the transport network, solving ecological problems,
protection of natural resources should be considered as the
most important favorable factor for the development of
tourism. The most important among them is the financing of
state programs to create the country's image, the creation of
a world-class brand, and promotion of its advancement and
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establishment in the world market. The formation of a world-
class brand contributes to the increase in the number of
tourists entering the country[16].
References:
[1] David L., Edgell Sr., Jason R., Swanson, Maria Delmastro Allen
(2018). Tourism Policy and Planning Yesterday, Today and Tomorrow.
[2] United Nations World Tourism Organization (WTO)
[3] Law of Georgia "On Tourism", 2023.
[4] Geldner R. Charles, Brent Ritchie J., Tourism: Fundamentals,
Practice, Practice (2013). Batumi Shota Rustaveli State University .
[5] Metreveli M., (2011). Economics and Politics of Tourism, Tbilisi.
[6] Arghutashvili V. (2008). Tourism Policy, Ivane Javakhishvili Tbilisi
State University, Tbilisi.
[7] Law of Georgia on tourism, (2023). https://matsne.gov.ge
[8] Tourism Satellite Account: Recommended Methodological Framework
(TSA). https://www.oecd.org/cfe/tourism
[9] The Ministry of Internal Affairs. https://police.ge/en/home
[10] National Bank of Georgia. https://nbg.gov.ge/monetary-
policy/currency
[11] National Statistical Service of Georgia. www.geostat.ge
[12] National Statistical Service of Georgia. www.geostat.ge
[13] According to the World Travel and Tourism Council (WTTC).
https://wttc.org/
[14] Tourism:2023 Summary. https://tbccapital.ge/ge/publications/all-
publications/singleview/30006174-tourism-update-2023.
[15] Of Georgia economy and sustainable development Ministry2023 Summary
Report of Tourism and Aviation of Georgia
https://www.economy.ge/?page=news&nw=2471
[16] Azmaiparashvili M., (2018). State Policy of tourism in Georgia,
International Silk Road Conference on “EU Association Agreement
Perspectives and Challenges”, Proceedings of the conference.