Caucasus Business Week #168

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November 7, 2016 #168

November 7, 2016, Issue 168 - www.cbw.ge

Econo-mix GEL Depreciates, Prices Drop October Records Deflation

Event The American ‘Big Smoke BBQ’ Restaurant Launches in Tbilisi Pg. 4

Insurance Business Demands for Introducing Mandatory Insurance Component

Bank PASHA Bank supports yet another educational project Pg. 6

Pg. 3

How Aviation Sector Grows in Georgia The past 4 years has showed unprecedented upturn in aviation sector. 2 186 684 passengers – over the past 9 months, 103% growth, compared to 2012.

Upturn in passenger turnover at Georgian airports is the result of the reasonable policy that our country follows, as well as the result of joint and tireless job between private sector and state structures. According to the January-September report, passenger turnover at Georgian airports have increased by 23% compared to the same period of 2015. Government officials assert that correct policy has brought such success and the aviation field as a priority direction.

Over the past months, several important changes took place in Georgian aviation sector. Certain steps were taken in terms of infrastructure improvement: Tbilisi international airport runway was reconstructed.

Pg. 9

Branding Strategies in Georgia

Pg. 6

On October 27-28 there was a “Branding Strategies” international conference in Tbilisi “Biltmore” Hotel, organized by Sakpatenti, the National Intellectual Property Center of Georgia, and the World Intellectual Property Organization. I was lucky enough to make my own presentation there and became completely convinced that it was an extremely important event for Georgian economy.

Let me explain, why.

We’ll start with asking the question: what is more important for exporting a product—to create it or to sell it? This relates to the well-known logical paradoxical question: “Which came first, the chicken or the egg?” Since production was paramount under the conditions of the Soviet centrally planned economy (an economy of supply shortage), the rule at the time was: “Once a product is manufactured, a buyer will certainly turn up!” This attitude was totally blown out of proportions in Soviet Georgia, since it was a monopolist for several types of products and services, in particular for citrus cultures, mineral waters and medical tourism.

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2 GOVERNMENT

NEWSROOM New Electronic Monitoring System to be Introduced into Georgia Georgia’s electricity markets attempt to integrate with European markets as new legislations are introduced and implemented. As Georgia moves up the development line, it modifies its markets to abide by the laws of the EU.

Blackmont Offers Cheap Credit Resource to the Partnership Fund On its part, management of the Fund has introduced members of the delegation of Balckmont, mandate of the Partnership Fund, priorities, ongoing and completed projects.

ECONOMY

Rail Freight Turnover Declined by 17 Percent in Georgian Corridor Fright turnover is diminished by 16, 9% y-o-y. According to the biggest shipping company, local fright of 1,548 mln t has been transported through January-September, while 708 555 t has been exporting cargo.

Economic Growth Marked 1.5% in September Georgian economy grew by 1.5% in September 2016, according to early report by Geostat, the national statistics service of Georgia. The Georgian Authorities expects 3-3.5% growth in 2016.

BANKING

New 100 GEL Banknotes Appear in Turnover NBG injected new 100-GEL banknotes in turnover. The new banknotes will run in turnover jointly with old patterns.

The banknote is of violet color and its dimensions make up 70mmx142mm.

TBC Bank expects activation of business crediting from H2 of 2017 Vakhtang Butskhrikidze, the leading banker of the country declares, that slowing down of growing pace of legal entities’ credit portfolio has been logic and forecasted.

BUSINESS

The Main Interest of Japanese Businessmen is to Start Business in Georgia According to the information by the Ministry of Economy and Sustainable Development, the minister met JETRO representatives and presented to them the investment environment and economic reforms in Georgia.

Pizza Business Grows in Georgia Sales of network pizzerias operating in Georgia are constantly growing, and it is possible that in a few years this business will reach a level similar to those of Europe and the United States level.

COMPANY

Hilton Tbilisi Hotel Opens in the Former Building of Agriculture Ministry A relevant contract has been signed today between the Hilton Corporation and Granat company. The hotel is to be opened in 4 years. A total of $ 20 million will be invested in a 120 –room hotel.

World leaders explore consulting industry trends in Tbilisi

O

ver 200 consulting professionals from more than 35 countries are in Georgia’s capital Tbilisi today to define the future of the consulting industry and explore the industry’s trends and challenges.

For the first time in Tbilisi, the European Bank for Reconstruction and Development (EBRD) and the European Union’s EU4Business initiative jointly organised the conference on competitive consulting.

During November 3-4 panel discussions on a range of topics will be led by some of the best-known opinion leaders in the consulting industry from Georgia and neighbouring countries, the United States and western Europe.

Agility, innovation and internationalisation were the main

themes of this year’s conference.

The conference will look at issues that will define the industry in the future including trends, increasing competition, new models and crossing international borders.

The event will also provide a networking opportunity for participants, who will share their know-how, discuss the key advantages of innovation in the consultancy sector and the challenges in business consultancy and explore how to overcome them.

The EBRD through its Advice for Small Businesses team supports local consultants in 26 countries with training, the sharing of experience, and helping consultants to work together on challenging and sophisticated projects. This

enables local consultants to develop their own practices and in turn support the businesses they advise.

In Georgia and the other Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Moldova and Ukraine), the EU has mobilised €8 million of funds through the EU4Business initiative to support the Georgian private sector.

The conference was opened this morning by Georgia’s Deputy Minister of Economy and Sustainable Development, Ketevan Bochorishvili, who was followed by welcoming addresses from Charlotte Ruhe, EBRD Director for Advice for Small Businesses, and Vincent Rey, head of Cooperation at the EU Delegation to Georgia.

EU helps develop e-Government in Georgia

G

eorgian and international experts are working together to develop the e-Georgia Development Strategy and turn Georgia into an IT-based governance state.

We are actively working on eGeorgia Development Strategy.

This document is a guideline which is based on international and local experiences and best standards in practice,” said Chairmen of Georgia’s Data Exchange Agency (DEA) Irakli Gvenetadze.

The Strategy unites all state institutions and identifies the necessary activities, the implementation of which can turn Georgia into sustainable e-Governance model state,” he added.

The new e-Georgia would improve access to e-services for businesses and citizens, strengthen transparent and open governance, and define the role of information technologies in administration reform.

For this purpose the European

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili WWW.CBW.GE

November 7, 2016 #168

Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com

Union (EU) funded Twinning workshop was held this week in Georgia’s capital Tbilisi, where EU experts and representatives from Georgian Government discussed the country’s e-Government Development Strategy for the next two years.

The event was part of the ‘Support to Strengthening of e-Governance in Georgia II’ project.

International experts from Great Britain, Austria, Estonia and Denmark presented their recommendations for the document.

The final version of this document is to be approved by the Government of Georgia.

The EU Twinning project ‘Support to Strengthening of e-Governance in Georgia II’ is a two year project aimed at assisting implementation of Georgia’s E-Government Strategy with a total budget of €1,300,000.

Electronic governance or egovernance is the application of information and communi-

cation technology for delivering government services as well as back office processes and interactions within the entire government framework.

Through e-governance, government services will be made available to citizens in a convenient, efficient and transparent manner.

www.cbw.ge <<

“Geo Concentrate” Opened Fruits and Vegetables Processing Factory Equipped with Modern Technology

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Farmers will receive Financial Support to Plant Blackberries and Rasberries

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Vietnam Got Interested in Cargo Transportation via the Baku-Tbilisi-Kars Railway

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SOCAR Reveals Volumes of Gas Export to Georgia, Iran

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Medea Samkharadze; Mariam Kopaliani; Merab Janiashvili Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

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EVENTS

November 7, 2016 #168

The American ‘Big Smoke BBQ’ Restaurant Launches in Tbilisi MARIA BAKH

Amidst the eclectic restaurants adorning the Beliashvili street of Tbilisi, the American Big Smoke BBQ restaurant invites you into its homely walls. In 2012, following the astonishment with America’s delicious smoked chicken burgers, Nikoloz Kiknadze and his American business partner began establishing the Tbilisi Big Smoke BBQ restaurant. The partners launched the restaurant after dedicating a year to meticulously studying the Georgian restaurant industry.

Inspired by the culinary charm of the American state of Kentucky, Big Smoke BBQ serves a variety of dishes. Levan Sikharulidze is the Georgian executive chef of the restaurant. He was trained by professional Kentucky-state chefs.

Additionally, to emphasize the Kentucky-state influence on the restaurant, the logo was designed to represent the original Native-American residents of Kentucky.

Big Smoke BBQ prides itself for owning unique smokers in all of Tbilisi and the entire Caucasus region.

“We have extraordinary smokers only available at Big Smoke BBQ. Therefore, we offer products that no one else can,” Kiknadze said.

Moreover, the restaurant imports all of its products solely from the United States. This includes additional seasonings, such as vinegar, and chief components, such as meat.

Their signature dishes involve savory and succulent BBQ Pork Ribs and BBQ Chicken complimented

with “Black Sauce”- a flavorful dip.

Within 8-16 hours, the smoke emitting from the smokers meticulously cooks the meat to tenderness. Thus the brand name “Big Smoke BBQ”.

Furthermore, the traditional aspect of America inspired the warm interior of the restaurant. This involves a long bar serving delicious beverages and dim lights dancing across the room. Additionally, the restaurant offers invigorating football T.V shows by requests and 8 p.m. live bands performing on Saturdays and Sundays. Moreover, according to Kiknadze, “We have a large American customer-base that really enjoy the restaurant. This is where they feel at home.” “Last year, we had a Thanksgiving celebration for our customers. We will definitely host the celebration this year again,” he added.

Big Smoke BBQ introduces the cultural diversity of the Kentucky state into Georgia. It allows the chance to experience food imported directly from the United States and cooked on unique smokers. Moreover, the snug environment allows maximum enjoyment of the performing live bands and T.V football shows.

BATUMIBUILD 2016

W

e would like to inform you that the 6th International Building Materials and Developers Fair, “BATUMIBUILD 2016” will be held on 09-11 December of this year, at Sheraton Hotel, in Batumi. The fair is organized by the Georgian company “EXPO BATUMI“.

“EXPO BATUMI” is one of the first exhibition companies making organization, to support development of the exhibitions in the region.

The main goal is to exhibit the international one in Batumi. The exhibition will present new technologies in the construction field, various kinds of products of International and Georgian companies, such as construction materials, machineries, construction equipments, air-conditioning and cooling systems, architectural technologies, interior and exterior design.

International and local Real Estate Agencies will be also involved in the exhibition. Which can establish business relations with the foreign companies; it makes again to promote investment and economic growth in our region.

“EXPO BATUMI” invites you for participating at the exhibition, which will give the companies opportunities to acquaint their products to a wide range of consumers and the innovations of new technologies in the building and design field. They can also exchange business contacts and have opportunities to have bilateral meetings and have negotiations with the representatives of both to local and foreign companies.

Participant countries of the exhibition are from the following countries: Armenia, Azerbaijan, Belarus, Iran, Israel, Poland, Russia, Turkey, Ukraine, and etc. The exhibition is supported by the Government of Autonomous Republic of Ajara, the Ministry of Finance and Economy of Ajara, Batumi City Hall, Ajara Chamber of Commerce and Industry, International Investors Association of Georgia, Ajara TV and TV 25 ( media support ), News Papers: Caucasus Business week, Newspaper Ajara and Business Time Georgia.

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ECONO-MIX

GEL Depreciates, Prices Drop

Hila Peled CEO of Topishare

Why We Shouldn’t Blame the Media

‘‘

Merab Janiashvili Economic Analyst

As to annual inflation, in this case deflation was registered for the first time in 2016.

However, if we examine annual inflation trend due to months, we will see that starting January 2016 annual inflation was declining month to month

October Records Deflation

I

n October 2016 the inflation indicator made up 0.5% as compared to the previous month and 0.2% as compared to October 2015. Consumer prices index has increased by 17.1% compared to averaged index in 2010.

As noted, in October 2016 the common level of prices rose by 0.5% compared to the previous month. In the reporting period, price changes in the following groups affected formation of inflation indicator: food and nonalcoholic beverages: prices rose by 0.7% and this segment constituted 0.22% in total inflation index.

Prices increased in the group of sugar, fruit jams and other confectioners (up 5,3%); in the group of milk, cheese and eggs prices rose by 3%. Tariffs increased by 1.8% in the group of vegetables; At the same time, prices declined in subgroup of fruits and grapes (-9.6%); Healthcare sector: prices increased by 2% in the group; Consequently, the group’s ratio in total inflation indicator made up 0.20%. Prices have significantly risen in subgroup of medical products, devices and equipment (8.6%); Clothes and shoes: prices rose by 3% in the group and monthly inflation rate made up 0.08%.

Prices increased in the shoes subgroup too (up 10.2%).

It should be also noted that annualized inflation rate has never exceeded 1% in 2016, while the figure marked 0.9% and 0.1% in January-February. At the same time, the March to June period recorded low inflation level. In the past months deflation was replaced by inflation, but monthly growth in prices remains within 0.2-0.5%.

As to annual inflation, in this case deflation was registered for the first time in 2016.

However, if we examine annual inflation trend due to months, we will see that starting January 2016 annual inflation was declining month to month.

Change of prices in the following groups have made influence on formation of annual inflation: the reporting period registered 6.7% slowdown in transport group and made up -0.79% in total annualized

‘‘

Trump and Hillary, polar opposites, fighting for a chance to run one of the most powerful countries in the world. And society is going wild, with the two sides unable to understand why ANYONE would vote for the “crazy candidate”, pointing fingers at each other. And this is a development not only seen in the US, or in politics. It seems like our world has become more divided, rather than closer together, as we thought would happen with the coming of the internet.

But there’s a reason for this continuing, and dangerous, polarization. And they are called “personalized feeds”, implemented by the major social networks and search engines, deciding what you want to see and what you don’t, based on your previous online activity. In other words, Facebook, Google, Instagram and others show you in your feed what they THINK you like after analyzing your likes, loves, clicks, and comments. Now, some of you may actually like this, a tailor-made feed that shows you stuff based on what you’ve interacted with before.

But even if you like it, the consequences are major. And in my opinion, have even led to the increasing polarization of our societies.

Prioritizing news content based on what your friends like or share furthers the siloing of our news consumption. The Washington Post.

We need the news to inform us about stuff we might not really like or agree with. But if we want to keep this already polarized world from getting even more polarized, we need to see it. And that’s why Facebook’s algorithms—and I am not just talking about the latest tweaks, I am talking about it in general—are dangerous.

Technology review hit the nail on the head, why this is such a major issue: But when faced with the choice between “inclusive” and “engaging,” the company will pick the latter every time. This isn’t a nefarious choice; it’s just business. … But the company has become perhaps the largest single distributor of information on the planet, and it is opting to show people what they like, rather than tackling the much tougher question of what, perhaps, they should see.

The role of media, whether or not to some extend with bias, is to inform people what’s going on in the world. That when there’s elections, or other important things to decide, we can make well-informed decisions.

Many have been blaming the media for Brexit. But perhaps we should take a look at our Facebookfeeds. The Wall Street Journal did an amazing job visualizing the different newsfeeds based on political believes in the States to exemplify this. Facebook’s latest decision to show people what “they want to see” (nobody asked me by the way, and I prefer to control it myself), will obviously result in either more self-affirming posts, and/or pics of cute cats. And it’s mostly the self-affirming posts that will polarize the world even more. In a TED talk already in 2011, online organizer Eli Pariser already warned how these algorithms are narrowing our worldview. “The challenge with these kinds of algorithmic filters, these personalized filters, is that […] instead of a balanced information diet, you can end up surrounded by information junk food.” Eli says.

“I’m progressive, politically—big surprise—but I’ve always gone out of my way to meet conservatives. I like hearing what they’re thinking about; I like seeing what they link to; I like learning a thing or two. And so I was surprised when I noticed one day that the conservatives had disappeared from my Facebook feed.” The promise of the internet, on how we would learn from different opinions, has slowly been taken away from us. Because if we keep on hearing self-confirming ideas, we won’t grow, we won’t understand, and we’ll create a gap in our (global) society so large it may lead to more conflict. Article is written by Hila Peled is the CEO of topishare, a free platform where anyone can create their very own social network and control their newsfeeds themselves.

November 7, 2016 #168

inflation rate. Prices mainly declined on purchase of transport (-16.1%) and personal transport exploitation (-8.8%). Furniture, household things: prices declined by 3.9% and this indicator made up -0.25% in total inflation indicator. Prices declined in subgroup of heating and cooking equipment, fridges and other household things. (-7.6%) and goods and services of everyday household needs (-2.9%). Strong drinks, tobacco group: prices rose by 10.9% and the figure made up 0.67% in total inflation indicator.

Prices declined on monthly basis. Prices increased on tobacco products (up 17.9%) and alcoholic beverages (5.6%).

It should be also noted that in 2016 the National Bank’s target inflation indicator made up 5%. This signifies that in 2016 annual inflation rate was to mark 5% and the state budget is planned on this indicator. Despite this tendency, February 2016 recorded 5.6% inflation and since then the indicator is declining. In August 2016, the annual inflation marked 0.9% and in September 0.1%. And today we have the situation, when deflation tendency was registered in October and economic experts know very well that deflation is worse tendency than inflation, because deflation means the business sector faces difficulties in sales of products and has to lower prices.

And finally, it is necessary to note that media agencies provoke panics in the country and create GEL depreciation expectations.

There is certain correlation between GEL depreciation and upturn in prices, but this is not a direct correlation and it is not reflected within month. At the same time, inflation indicator shows that common level of prices does not grow in the country and, on the contrary, the prices declined in October 2016.

Thus, GEL depreciation by 0.07 GEL cannot hike product prices. For example, sugar or petrol may rise in value, but common level of prices does not grow or when sugar and petrol grow in price, salt and apple cheapens and so on.

“According to Monetary Fund predictions, rate of the economic growth will exceed 5% rate, which is quite high index. We think that when it comes to planning the budget, we will have more conservative calculations in order to not overestimate budget income. Monetary Fund predictions about 6% deficit is quite conservative. They don’t consider the events which are already planned, concerning limitations to administrative expenses. We will probably have much lower index in the next projects, and we don’t even consider that it can be 6%”

Nikoloz Gagua The deputy minister of Economy

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November 7, 2016 #168

New Year at Crowne Plaza Borjomi

This year we decided to create a special package, which is appealing both to local guests and to international visitors.

For those who want to spend this amazing holiday with their families and loved ones outside the city, than Crowne Plaza Borjomi is the ideal place for them. We are well known for our spa zone, which is located on 2400 square meters in the hotel, so the services

like swimming pool, steam rooms, sauna and gym will be free of charge for our Guests. Also babysitter for the little ones will be complimentary.

Crowne Plaza Borjomi oďŹ&#x20AC;ers 3-day celebratory package during New Year Holidays: 31st of December: Accommodation for 2 people Dinner

New Year Gala Dinner and Celebratory Program Program Includes: Georgian folk music and dances, LIVE music performed by Band NEW ONE, DJ, Fireworks Show.

Babysitter and animator for children will be in the separate venue.

January 1st: Brunch Dinner

Live Music January 2nd: Breakfast Accommodation and food for 6 years olds will be free of charge.

For more information please contact sales department reservations@cpborjomi.com Tel: 0322 221 221

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INSURANCE

November 7, 2016 #168

INSURANCE BUSINESS DEMANDS FOR INTRODUCING MANDATORY INSURANCE COMPONENT

PASHA BANK SUPPORTS YET ANOTHER EDUCATIONAL PROJECT On November 1st in Fabrika, Women’s Information Center hosted an event “Youth – United for Peace” supported by PASHA Bank and The US State Department. The event was held under the aegis of the project “Empowered Women for Peace and Development”.

The guests had an opportunity to attend the screening of the short documentaries, filmed by the student journalists and listen to the writer Ana Kordzaia-Samadashvili presenting public lecture - “Bob Dylan – Nobel prize laureate”.

Women’s Information Center is a non-governmental organization that aims to improve women’s political, economic and social status via increasing availability of information.

On March 8th, 2016 PASHA Bank made a donation to Women’s Information Center on behalf of the Bank’s female clients and partners that were applied to organize campaigns aimed at raising awareness on women’s rights in Georgia.

“Corporate Social Responsibility is very important to PASHA Bank. We have implemented several CSR activities in past years and we believe that by supporting such educational projects we contribute to the learning and development of youth and building equal society,”- said Anano Korkia, Head of PR and Marketing Department at PASHA Bank.

Currently, Georgian insurance market unites 14 insurance companies and the market competition is very sharp. As a result, Georgian citizens are able to receive various insurance products and services. At this stage, the January to September indicators have not been published yet, however, according to the January to June report, insurance sector has drawn 229 978 560.45 GEL insurance premium, up 13% compared to the same period of 2015.

A

ccording to Insurance Sector Supervision State Office, in January to June 2016, the market dynamics has not changed. According to the regulator, the reporting period’s 3 key insurance products are as follows: medical insurance – market ratio 49.30% (up from 48.07% year on year), property insurance – market ratio 15.71% (including agro

director general Giorgi Shengelia said.

The market development depends on whether insurance products will become mandatory or not, Shengelia said.

«In this respect we welcome the supervision office’s very active engagement. It tries to develop and enlarge the market, but these issues should be regulated on legislative level. Consequently, the office communicates with the Government. I believe the year of 2017 will bring many positive tendencies and the insurance market will grow further.

Currently, the market is increasing, but this volume does not suffice.

Insurance culture has not reached sufficient level. Therefore, I think Georgian insurance market still remains in germ condition», Shengelia noted.

Unison insurance company Georgian insurance market is stable and no special growth tenden-

A GIFT FROM FINCA BANK – THE BOOK FOR CHILDREN AND TEENS On 31st of October – on World Savings Day FINCA Bank Georgia launched a new interactive book for schoolchildren – “My School Book”.

The book content is designed for children from 7 to 14 and the focus is made on the promotion of financial literacy and business skills development. The book covers topics like: what is money? Why do we save? And offers stories of successful businessmen recipes for business, quizzes and more!

“This is a really unique and interesting project. Research shows that savings behavior is formed from the very early age. As financial inclusion, financial capability and sustainable livelihoods are essential components of full economic citizenship, educational components like this are very important to ensure that children from a very early age are well equipped with the basics of financial literacy. We are very happy that FINCA Bank is a pioneer in this very important field of making this kind interactive content for children” – says Mariam Esebua, Head of marketing department of FINCA Bank Georgia.

The content and design of the book was created together with creative agency Windfor’s Communication. Fun and colorful illustrations help kids to understand the main topics of the book and makes it easy to remember. The content is created to encourage interaction with classmates who will make projects together as a group.

As there are a lot fun tasks and quizzes in the book, children can contact us to share their opinion and thoughts through a special e-mail. There will be special prizes and awards for the most active and creative children” – says Mariam Esebua.

The book will be sent to FINCA Bank employees and their kids will take the book to their schools so that more than 8000 children in almost all regions of the country will get to use the book, learn the basics of financial literacy and have fun.

insurance, down from 16.66% year on year) and automobile insurance – market ratio 14.01% (down from 15.15% year on year).

The sector’s net profits marked 12.4 million GEL, while the sector losses made up 2.3 million GEL in the same period of 2015.

The insurance market is regulated

by Insurance Sector Supervision State Office through carrying out state policy, ensuring the market’s financial stability and solvency, promoting financial stability and adjusting the system to EU standards.

The Caucasus Business Week (CBW) has explored current tendencies on the insurance market.

IC Group insurance company Over the past period the Georgian insurance market shows growth tendency. However, the ratio of insurance in all fields is very low and frequently this indicator does not exceed 6-10%, IC Group deputy

cies are recorded because of low level of insurance culture, Unison insurance company representatives said.

«There are more than 1 million registered vehicles in Georgia and only 200 000 ones have been insured.

This signifies insurance culture remains at low level. Number of insured vehicles grow by only several hundreds year to year», Unison representatives said.

It is necessary to introduce mandatory insurance in Georgia to boost the market. We expect the new Parliament to introduce mandatory insurance. «This decision will enlarge the market and insurance companies will have more opportunities to sell more insurance products. We do not posses enough resources to spend money on popularization. We have chosen a specific segment and we work on that segment. However, we believe that insurance companies should

spend certain funds to popularize insurance products. The state component should be also involved in this process», Unison representative said.

Insurance Association The past period has recorded upturn in premium revenues, but the quantity of insurance premium does not grow. Insurance products are not popular in the population, particularly, property insurance is very unpopular, Devi Khechinashvili, president for Insurance Association, said.

«A little growth is recorded in corporate insurance sector, but no growth is seen in individual cases. Small and medium business companies are very inactive in corporate insurance direction», Khechinashvili said.

It is necessary that the government act as a leader and introduce obligatory insurance component. Today health insurance direction is very active thanks to government efforts, Khechinashvili noted.

We expect the new parliament of 9th convocation to introduce mandatory insurance component for vehicle owners with the aim to increase insurance culture. Mandatory insurance is necessary to make the country more stable and foreseeable, Khechinashvili said.

Insurance Institute The insurance market is growing and positive tendencies are seen in the past period, Insurance Institute president Giorgi Gigolashvili said. Several important legislative initiatives were proposed in 2016, including: according to amendments to Law on Insurance, insurance companies have moved to corporate management.

Previously, an insurance company could act as a stock capital and a limited liability society.

However, today we have a new legal organizational form – a joint stock company. Today, insurance companies have stakeholders and a general meeting of stakeholders, supervisory board, director.

This system assist companies to improve management and recover insurance industry.

Moreover, according to amendments to the Law on Insurance, a new company that plans to enter the market and wants to obtain a license should submit a business plan to Insurance Supervision Office. This is a very good initiative, because last period insurance companies were set up without appropriate plans. As a result, all risks were not envisioned and this factor was making negative affect on both beneficiaries and insurance companies, Gigolashvili said.

The main thing is that the solvency margin was introduced in 2016.

“This signifies that insurance companies must not keep less capital than the solvency margin. This is worldwide recognized mechanism to make insurance companies financially stable and capable of issuing financial resources to claimants.

Previously, the solvency margin was abolished in Georgia”, Gigolashvili said.

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REAL ESTATE

November 7, 2016 #168

Kiev will become a meeting place for developers from Eastern Europe and Asia with international investors November 24, 2016, Ukrainian Real Estate Club together with its European partner EuropaProperty.com will hold a top real estate event on investment opportunities and market situation in Ukraine, Kazakhstan, Georgia, Azerbaijan, Belarus and Moldova - The EEA Forum and Project Awards.

Today, the region’s markets are interesting for international investors.

Firstly, investor can join the project almost at any stage due to the shortage of bank financing, while in Western and even in Central Europe it can be done just only in the first stage, what is mostly unacceptable for the majority. Secondly, yield potential of commercial property in Eastern Europe is approximately 10 % against Western Europe’s 2-3 %. Herewith, investors are more interested in the region of Eastern Europe and Central Asia as a whole and separate countries are less interesting for them.

Investment opportunities and characteristics of every country will be discussed in the first panel discussion of the EEA Forum and Project Awards in a bit more detail.

The second panel discussion will focus on the tourism opportunities and the impact of the tourism industry on

Managing Director of Colliers International Georgia to be Part of the Judging Panel at the EEA Real Estate Forum The managing director of Colliers International Georgia, Irakli Kilauridze, will be part of a 35-strong international panel of judges that will be tasked with identifying the best real estate companies operating in Eastern Europe and Asia. Property Georgia spoke to Mr. Kilauridze about the international real estate forum, which is to take place in Kiev at the end of November.

PROPERTYGEORGIA.GE

- The EEA Real Estate Forum, which will take place on 23-24 November in Kiev, will host real estate developers, banking representatives and investors from various countries. You will be part of the panel of judges at this event. How did Colliers International Georgia become involved in the aforementioned international forum?

The EEA Forum mainly showcases projects from Ukraine, Kazakhstan, Azerbaijan and Georgia. As a leading real estate service company represented in these countries, Colliers always enjoys the status of an honorary guest, and is also represented in the panel of judges. Interest towards Georgian real estate has been growing in recent years, and accordingly, there has been great interest shown for our real estate market research. Colliers’s Georgian office presented a review of the Georgian real estate market at the same forum last year, earning plaudits and attracting interest. Therefore, we are planning to hold another large-scale presentation at the forum this year.

- What does it mean for Colliers International Georgia, and for you personally, to participate at the EEA Real Estate Forum?

Taking part in this forum provides a great opportunity for us to present specific Georgian projects to potential investors and developers, as well as to discuss recent trends. The forum is attended by representatives from companies that know the region very well,

meaning that they are aware of the geopolitical risks. This is often a significant barrier during discussions with investors who are less familiar with our region and its peculiarities.

- Will your projects be represented at the forum?

A project of ours will only be presented during private meetings. To the broader audience, we will only be presenting the aforementioned review of the Georgian real estate market.

- Do you know whether or not Georgian developers will be taking part in the forum, and which projects will be presented?

The list of participants of the EEA Forum will be announced on 10 November.

- Colliers International Georgia often takes part in international forums and exhibitions. How effective is this with regards to further strengthening the company’s position, and to what effect does it further sales?

Attending international forums and exhibitions is very important for increasing awareness about the country among the investors who are considering investing in real estate in developing countries in the near and mid-term future. Competition on the global investment market is very high. It is therefore crucial to represent your country in a correct manner. Of course, we are helped by Colliers’s high brand recognition and investors’ trust towards our brand.

However, a well-structured investment offer and the experience of the local management team directly involved in carrying out the project is still the decisive factor.

“

Interest towards Georgian real estate has been growing in recent years, and accordingly, there has been great interest shown for our real estate market research.

”

investment attractiveness. There is a potential for tourism development in all participating countries of the Forum, though we see considerable success in the tourism only in Georgia. How they did it, and what steps have been taken we will discuss with the developers of the country.

The third panel discussion of the forum will cover local and global trends in the retail market. On the one hand, development of shopping centers is a perspective direction, and on the other - this area is constantly changing, and it is important for developers to meet new customer demands.

Residential real estate in a number of countries in the region - Belarus, Georgia and Ukraine in particular - is a key area that is developing most actively and steadily. Features of the development and investments of this segment in the different countries will be discussed by participants in the fourth panel discussion of the EEA Forum and Project Awards.

As to real estate experts, Kiev is the optimal location for the meeting of developers from Eastern Europe and Asia with Western investors. In December, many investors will take investment decision for projects in

Eastern Europe and Asia.

Forum organizers - Ukrainian Real Estate Club (URE Club) and EuropaProperty.com.

Event partners - DLA Piper, MK Illumination, NAI Ukraine, Urban Experts, Geos, ProfEstate, European Business Association, British-Ukrainian Chamber of Commerce.

Media Partners - Business Ukraine, Interfaks-Ukraine, First Business, Business Columnist, Channel 5, the Companion, Liga.net, Azernews, StroyObzor, RealTimes, Invest in Georgia, UBR, Real Estate Belarus, Ukrainian Law Firms, UJBL, Voice UA, Economy Today, the International Institute of managemen and Property Georgia.

EEA Real Estate Forum will take place November 24 at Fairmont Grand Hotel Kyiv.

To purchase tickets, please contact Dmitry Kuznets, d_kuznets@ureclub. com, +38 (044) 227-67-53, +38 (044) 360-51-58.

For media accreditation, please contact Natalia Reva, n_reva@ureclub.com, +38 (044) 227-67-53, +38 (044) 360-51-58 or Lidiia Markova, markova@mprgroup.com.ua, +38 (066) 165-77-87.

More information - www.eeaawards.com

8

PR

November 7, 2016 #168

“I would not make early conclusions, but I think I am developing my most successful marketing project currently. I find working on this product very interesting and I will assist many my colleagues in finding required information”

PR field makes progress every day in our country and we have more potential today Head of Marketing department of investment company Alliance Group Holding, Tamar Zamtaradze shared her long experience in public relation field in Georgia.

MARIAM KOPALIANI

- What are you by profession?

- This is a pleasant case, as my profession and field of my current activities coincide with each other.

I am a specialist of Public relations and marketing by profession.

- Current job place and position.

- Currently I work for Alliance Group Holding that unites 6 various and independent companies in different fields. I manage the marketing department of Alliance Group Holding. I have been working by my profession for 12 years and companies united in the holding enable me to simultaneously care for marking issues in various fields and discover many new opportunities and capabilities in my profession and myself.

- Your first job place.

- My career started at TBC Bank.

Being a student, I entered the company with quite major challenges, which was taking huge steps and the management was carrying out re-branding project. Consequently, I have benefited much from this period in terms of practical issues in my profession.

-Your first success.

- I would name Crystal microfinance organization as my first success, when I started working as marketing service manager at my 24. I assumed responsibility to lead marketing and PR service of the company and successfully resolve the company challenges. First rebranding and first success is related to this company.

- Project, program, undertaking that you are proud of even today.

- I would not make early conclusions, but I think I am developing my most successful marketing project currently. I find working on this product very interesting and I will assist many my colleagues in finding required information. Bia. ge business information agency will appear on the market with big innovations. I would also recall Crystal re-branding project jointly with its results.

- Field where you would never work.

- I would never work in the field, where less communication is required with customers and society.

- What makes a person successful in your field? Besides knowledge, what special characteristics are required?

- I believe good communication skills are required to work in PR field. Ability of listening to others, good contacts and public trust are necessary in this field.

- Is it possible today in Georgia to study PR very well or international knowledge and experience is necessary?

- Naturally, international education is better in this field, but today in Georgia we can replenish gaps thanks to trainings and master classes by various internationallevel PR and marketing specialists.

Good practice was established in our country too, when colleagues share experience to each other.

This field makes progress every day in our country and we have more potential today than a little while ago.

- Is PR field in Georgia perceived and understood in its classical nature?

- I hope it is perceived in correct and valuable way. However, sometimes I meet opposite samples too.

- How easily can you settle crisis situations and take decisions? Do you think similar cases worsen quality of the performed job?

- Management of crisis situations is a special art that requires very reasonable strategy and proper steps.

This case requires much caution and promptness, as well as ability of taking correct and foreseeable decisions in a short period.

- Interesting episode from your life (business) that has changed your lifestyle.

- Each new job place and new field adds changes to my life.

Each project that I work on makes

contribution to my professional advancement and enables me to make certain conclusions.

- If not this profession, which field would you work in?

- I have consciously chosen this profession. In that period this field was less-known in Georgia. I believe I have taken correct decision. Without this profession I would be a defense lawyer and human rights defender.

- What are strong sides and features of you, as a businesswoman?

- I never retreat and I am always ready to do my best if I am sure in success of project and idea.

- What do you benefit from your employer company? What makes this company interesting for you?

- The main thing is that I should know what result to receive. The project should be interesting for me and I should believe in its success. I choose projects due to these criteria. Alliance Holding has given this opportunity to me and therefore it is interesting for me to be member of this team.

- What makes major discomfort in the working process?

- When people fail time management, this factor always makes discomfort in working process.

- Where do you see yourself after 20 years?

- I have not thought about this issue in details. I just know that I will have implemented many successful projects.

Naturally, international education is better in this field, but today in Georgia we can replenish gaps thanks to trainings and master classes by various internationallevel PR and marketing specialists.

Good practice was established in our country too, when colleagues share experience to each other.

9

November 7, 2016 #168

The past 4 years has showed unprecedented upturn in aviation sector. 2 186 684 passengers – over the past 9 months, 103% growth, compared to 2012. Upturn in passenger turnover at Georgian airports is the result of the reasonable policy that our country follows, as well as the result of joint and tireless job between private sector and state structures

How Aviation Sector Grows in Georgia According to the January-September report, passenger turnover at Georgian airports have increased by 23% compared to the same period of 2015.

Government officials assert that correct policy has brought such success and the aviation field as a priority direction.

Over the past months, several important changes took place in Georgian aviation sector. Certain steps were taken in terms of infrastructure improvement: Tbilisi international airport runway was reconstructed; second terminal construction works started, runway was opened in Ambrolauri and low-cost airline WizzAir arranged a base at Kutaisi International Airport. All these changes have increased passenger turnover.

United Airports of Georgia held a special presentation over these projects at Tbilisi International Airport on October 21.

Ketevan Aleksidze, head of United Airports of Georgia, talks about the January to September period performance: “All international airports in Georgia have recorded upturn in passenger turnover. According to January to September report, Georgia-based airports served 2 181 684 passengers, including Tbilisi international airport’s ratio made up 79.1%, Batumi International Airport – 12.4%, Kutaisi International Airport – 8.4% and Mestia airport – 0.14%. In 2016, passenger turnover at Georgia-based airports increased by 23% compared to the same period of 2015, while the turnover has increased by 103% compared to the same period of 2012”, Ketevan Aleksidze said.

Before the mentioned presentation, Government of Georgia released a statement that aviation and airports development is a priority direction in the country. The evident result of this policy is the runway which recently opened in Ambrolauri. It should be also noted that the airport construction works have not been finished yet. The Government will spend about 10 million GEL on the project implementation.

Vice Prime Minister Dimitri Kumsishvili noted that airport construction works represent a part of space accommodation plan.

“I would like to hail the Georgian Prime Minister’s initiative that prepared a ground for local airport construction in Ambrolauri. On October 6, 2016 Ambrolauri airport runway construction works were finished, while passenger terminal construction works will be completed at the end of 2016. We have other ambitious plans, because infrastructural development of airports and construction of new ones is an important constituent part of

space accommodation”, Dimitri Kumsishvili told the news conference.

Construction of the mentioned airport is a new priority announced by the Georgian Dream government. Even before 2012, two new international airports opened and there were plans for construction of several other ones.The Georgian Dream government is proud of the aviation field development. This is the result of our tireless job, Vice Prime Minister Dimitri Kumsishvili noted: “The past 4 years has showed unprecedented upturn in aviation sector. 2 186 684

Building A Better Connected Silkroad: Huawei Holds Information and Communication Technologies Exhibition NUTSA GALUMASHVILI

passengers – over the past 9 months, 103% growth, compared to 2012. Upturn in passenger turnover at Georgian airports is the result of the reasonable policy that our country follows, as well as the result of joint and tireless job between private sector and state structures”.

Despite statement by Dimitri Kumsishvili, representatives of private sector operating in the aviation field, point to the problems that frustrate business development, first of all, practice of state subsidization of distinct companies. Vato Asatashvili, head of Heliski Georgia company operating in small aviation business, talks about this and other factors: “Over the past period, active discussions are underway that some companies enjoy special preferences, while some companies cannot enter the market to perform flights.

We remember discussions over Tbilisi-Batumi flights.

Therefore, subsidization is a fault practice in its essence, and it is very difficult to carry out healthy and transparent monitoring. There are threats that hidden collusions exist behind all these factors. On the other hand, it is very important that the Government follow clearly-determined vision and strategy. We see that airports and infrastructure are being constructed and construction of new ones are announced, but who will enjoy these services? Does the Government have any plan or infrastructure construction was a part of election campaign and everything else will remain in the current condition and nobody will enjoy flight services?! Therefore, it is very important for us, private sector, to know where the Government moves to and what the Authorities plan”, Asatashvili noted.

Tbilisi has hosted presentation of a Huawei exhibition vehicle for information and communication technologies of Central Asia and Caucasus. The event was held as part of “Huawei Information and Communication Technologies Exhibition Tour in Central Asia 2016″.

The following officials made speech at the event: Liangdongbo (James) General director of Huawei Georgia welcomed guests and talked about the importance of technology and business for the development of economy.

“By conducting quantitative assessment for ICT progress in 50 countries all over the world, Huawei founds that ICT investment is closely related to GDP growth.”

“Comparing to developed countries, developing countries still lag behind in terms of broadband availability and affordability. It is the right direction to focus more on building ICT infrastructure, such as fixed broadband, mobile broadband, and datacenter as well, which will be the foundation of cloud computing, Big Data, and the catalyzer for prosperous e-services. During this journey, Governors, Operators and vendors should corporate closely to make it happen,” Liangdongbo added.

Mr Liangdongbo said in his speech

that Georgia has become very important for Huawei, and it is becoming the pioneer in terms of ICT development in the key position of the Silk road.

“At this stage, Georgia becomes very important for Huawei business in CA&C region. As Georgia is becoming the pioneer in terms of ICT development in the key position of the Silk Road connecting to China. And more important, Since Georgia–China free trade agreement will be signed soon, there will be more and more requirements to build e-commerce based on the ICT development. So we could clearly foresee that there will be an enormous potential growth of Georgia in ICT industry,” he said.

Ji Yanchi ambassador of People’s Republic of China in Georgia also attended the event and talked about challenges of Georgia’s economic and technological development and added that Huawei, as one of the successful Chinese companies, will make contribution to developing economic belt of Silk Road.

“I have visited several companies organized as part of Produce in Georgia state program. During the event I remembered my visit to Huawei. I believe, in several years, these companies will become as successful companies in the world as Huawei, which is an genuinely exemplar company in China. As a

result of reforms and transparency policy for 30 years, Huawei has played decisive role in development of Chinese economy. Moreover, the company has created a new model. I hope that this exhibition will deepen cooperation between Georgian and Chinese companies and Huwei will make its contribution to developing economic belt of Silkroad”.

“The main goal of Georgia’s Innovation and Technology Agency is to encourage innovations and technology in the country, also to make sure that Georgian companies and startups maximally assimilate technological opportunities that are viral globally,” Avtandil Kasradze said.

“Huawei is one of the important companies in the world, which offers digital technology and internetization decisions. As it is known to public Georgian government has started a large scale internet-infrastructure development process and it is highly important that we use high standard technologies,”Kasradze added.

At the exhibition vehicle Huawei representatives introduced cuttingedge information and communication technology projects and their solutions to the invited guests.

These projects are divided in five various categories: landline network, wireless network, base network, information technologies and services.

Moreover, the exhibition participants received information on mechanisms for developing Huawei information and communication technology solutions in various ways such as conceptual demo-videos, service simulation operations, management of devices on the spot, evaluation of the performed work and other communications.

The objective of Huawei is to popularize knowledge on information and communication technologies in operators of Central Asia and Caucasus Region to ensure better communication within the Silk Road space. The exhibition vehicle will start grand trip across Azerbaijan and the tour will be continued to Turkmenistan, Georgia, Tajikistan, Kyrgyzstan and Mongolia.

10

BUSINESS

November 7, 2016 #168

Turkish Furniture Brand DOGTAS to Enter Georgia DOGTAS, the world’s famous Turkish furniture brand, plans to enter Georgian market. The company will unveil the first brand store on Aghmashenebeli Alley, commersant radio reports. The company representative told the Commersant radio station that the Turkish brand was invited through franchising component.

The first store will be located on four floors. The store will trade in high-quality products at comparatively lower prices compared to the Georgian market current tariffs, he said. Initially, DOGAT store will trade in furniture. Later the company will also introduce accessories and lighting equipment. The company makes focus on high quality products. Furniture designs have been developed by Italian architects and therefore, DOGTA products are very popular in Europe.

SHOP

AGRICULTURE

Georgia’s First Agro-hub Opens in December

Georgia’s first “Agro-hub” market will open in the near future.”Agro-hub” General Director, Giorgi Jashiashvili, says that $15 million was invested in the project.

According to him, “Agrohub” will officially open in December, Commersant reports.

Jashiashvili notes his coperation will sell fresh, organic and healthy agricul-

tural products at agro-hub.

The company will have dairy processing plants producing 100% natural dairy products, such as sour cream, yogurt and various other types of cheese (Sulguni, Imeruli, etc.). Dairy products produced by the company will be sold under the “Agro-hub” brand.

Additionally, “Agro-hub ” will offer customers differ-

NEWS

WINE

ChirChkhela to Release its Production in Two Weeks

VELLINO: New Brand Comes to Georgian Wine Market

Founded a week ago the company “ChirChkhela” will release the Georgian dried fruit and vegetable in two weeks.

Company founder Guri Salukvadze says in his interview with Commersant that the company has already released the first test products which will be gradually sold on the local market. He notes that initially the products will be sold in big retail chains while in the future it is planned to open a brand store.

Microsoft Fined Seven Georgian Companies With $100 000 From November 2015 to 2016, court has closed seven out of ten violation of rights in terms of Microsoft’s intellectual property, cost of damages totaled 239 000 US dollars.

According to the director of Microsoft Georgia Nikoloz Doborjigindze, seven companies were fined with 100 000 us dollars, as a result they were forced to pay software legalization fee of $100 000.

ent products, such as pastries, hot and cold dishes, salads and seafood. “The seafood culture still does not exist in Georgia. For this reason, we want to offer our customers fresh and live seafood, such as octopi, lobsters and a large assortment of fish,” Jashiashvili says.

The company has its own poultry, beef and pork farms supplying healthy

Beka Jimsheladze Founder of the company

VELLINO is a new Georgian wine brand, which appeared in October in Georgia. At this stage the company offers Saperavi 2015, however from 2017 production of other wine varieties is planned. Founder of the company is financial officer who heads this business by himself.

“I always wanted to create something with my hands which would then became my source of income. I was inspired with the idea of producing wine because I was born in Kakheti and always had different interest towards wine and vineyards. I think that doing something is good when you create it with your own hands. In 2016 I have been granted by “Produce in Georgia” program which is funded by the Ministry of economy. With that capital I have purchased wine producing equipment,” Beka Jimsheladze said.

Due to the fact that Kakhetian wine is always linked to Qvevri and hard wine, I wanted my wine to be different. For now VELLINO has classical style natural wine. Brand has received many positive appraisals.

How did you choose the name and design of brand?

The name is absolutely my imagination. I wanted a new which would be resonant, easily recognizable and would cause wine association. I worked on label for two months, on one evening I came up with the brilliant idea: I took satellite picture of my vineyard and made some special effects and received quite original label.

How many bottles you produce and where is your wine sold at?

Approximately 3,500 bottles from 2015 year harvest were out for sale, this year we had better and diverse harvest, conformably wine of 2016 will have 12 000 bottles. Customers can buy VELLINO at every wine shops and hipper market.

meat to the agro-hub market.

In the “Agro-hub ” cellar, customers will be able to buy 11 types of wine. This is in addition to “family” jams and pickles meeting modern standards.

The company’s CEO says that the introduction of the ISO 22000 standards is currently underway. To ensure the quality of the products, “Agro-hub” will have three types of laboratories: physical-chemical, microbiological and veterinary.

The company will fully equip the laboratories with European installations.

Jashiashvili discusses the company’s future plans, noting that next year it plans to add new markets in Tbilisi and other regions.

Paprika – the Shop for Natural Georgian Products ”Paprika” is a shop for natural Georgian products and it was opened on 7th of October, 2016. There are various organic products from different Georgian regions, which are sold in the market. The founder of the shopt, Salome Simonia tells us more details about “Paprika”.

Tell us about “Paprika”, what kind of products do you offer to customers?

Customers of our shop can find various and natural products from different regions. We also offer prepared products to our clients. We also help to promote products of small businesses. In spite of the fact that we are focused on products which are consumed in Georgia on a daily basis, we are also selling rice and buckwheat, something which is not so commonly used in Georgia. Our shop is very clean and cozy and our customers feel comfortable in this atmosphere. Most importantly, we are honest and we offer to our customer something we would sell to our own family members.

How are the products chosen for the shop?

The products are produced in the families, farms or factories in different Georgian regions, and we choose the products considering how healthy, tasty and ecologically clean the products are.

How did you come up with an idea to open this kind of shop?

We came up with an idea over a year ago. We wanted to open the shop which would be special with its high quality and tasty products and provide all sort of variety of products to the customers.

What are your future plans?

At this stage, our main plan is to increase the variety of our products in the shop. We are going to open another shop in a near future and offer a delivery service to our customers. We are actively working to find ways to buy more products from peasants.

OPINION

November 7, 2016 #168

Branding Strategies in Georgia On October 27-28 there was a “Branding Strategies” international conference in Tbilisi “Biltmore” Hotel, organized by Sakpatenti, the National Intellectual Property Center of Georgia, and the World Intellectual Property Organization.

Dr. Andrei Maximov Maximov&Partners LLC am@maximov.com www.maximov.ge

I

was lucky enough to make my own presentation there and became completely convinced that it was an extremely important event for Georgian economy. Let me explain, why.

We’ll start with asking the question: what is more important for exporting a product—to create it or to sell it?

This relates to the well-known logical paradoxical question: “Which came first, the chicken or the egg?” Since production was paramount under the conditions of the Soviet centrally planned economy (an economy of supply shortage), the rule at the time was: “Once a product is manufactured, a buyer will certainly turn up!” This attitude was totally blown out of proportions in Soviet Georgia, since it was a monopolist for several types of products and services, in particular for citrus cultures, mineral waters and medical tourism. Under the conditions of the market economy, however, it is the buyer who drives economy—because the market works this way by definition.

Modern Georgia is a democratic state with a market economy which is still burdened with a Soviet-style business mentality—at least, in its traditional part.

Many acting or future Georgian businessmen still think in terms of “produce first” and not “sell first”. Correspondingly, they either ignore or neglect marketing in their activities. They also do not understand why is brand building so important or why should they invest in creating brands and promoting them. In other words, they make a strategic mistake from the start.

For me strategically speaking Georgia for is a boutique country. I am convinced that niche products should dominate in the future Georgian economy—that is, one-ofa-kind, expensive (that is, high valueadded), ecologically clean products which cannot be produced in other countries or which are much more complicated and pricey to produce elsewhere. These would be, for example, ecologically clean mineral waters, honey from alpine meadows, medicinal herbs, any organic (or bio) agricultural products, small fruit and berry crops with a high natural sugar content and a rich content of micronutrient elements.

At the conference I addressed presented Georgian businessmen. Imagine that you found such a niche product with certain unique qualities—or, maybe, that you have been producing it for a long time. You have invested in its production in order to make your product reach the levels of most demanding markets in terns of its quality, packaging and design. You have spent some money for creating a brand and for its international marketing. But then you have found, all of a sudden, a product on the shelves in the stores which is analogous to your product, similar to it, yet with a price tag two times lower than your product plus professing the same origin, name, composition and formulation. I have no doubt that you would be most interested in protecting your product from unscrupulous competitors who went as far as to tamper with it or to produce a look-alike.

In this situation you will certainly need the Geographical Indication (GI) system.

It includes three European categories of protected product names:

1. Protected Designation of Origin (PDO).

To get such a designation a product must be grown and processed in its entirety within the boundaries of a specified territory which guarantees its unique characteristics. In other words, if the Nabeglavi mineral water were taken in vats to, for example, China or the United Arab Emirates (just for the sake of argument) in order to be bottled there, the resulting product would lose the right to get the PDO designation.

2. Protected Geographical Indication (PGI). If the water is exported out of the country of origin, it can still get the PGI designation. This category means that the product has certain qualities related to its place of origin. In other words, one can grow or process a product inside its designated territory, but its location in its “home country” may be temporary and not permanent as in the case the PDO designation. Here is one more example, a real one and not just for the sake of illustration: when bay leaf grown in Western Georgia is exported to Turkey as a raw, primary product, it is dried, sorted, calibrated and packaged there, so any Turkish exporter may call this product “Colchis Bay Leaf” and put the PGI designation on it (which does not exist thus far).

3. Traditional Speciality Guaranteed (TSG) - it’s only EC instrument, at the moment not covered the Georgian legislation. In this case, it does not matter where exactly an unusual product was made—what matters is that all traditional rules of production were adhered to.

Thus, if a Georgian who by a twist of fate ended up in Papua New Guinea were to decide producing there the traditional Georgian sweets called churchkhela using his Granny’s recipe, he would still get the right to put the TSG designation onto his Churchkhela product.

By themselves PDO and PGI are not sufficient for the Georgian product to become popular or for the foreign consumer to be aware of it. They are only an element of marketing, but all by itself it will not change the game. One should invest into marketing abroad. Theoretically, three parties could participate in such investments.

First of all, it is the state when this is about a national (that is, not a corporate) brand of goods and services. For example, Georgian wine or mineral water, pilgrimage or adventure tourism. No private company will be able to build on its own a brand like “Georgian water for a healthy lifestyle in China”. The state has been working actively along these lines, so in recent time I could watch, with my pleasure, promotional ads about Georgia on some foreign TV channels.

Secondly, corporate brands must be developed and built by manufacturers (brand owners) and/or their dealers in foreign markets. Unfortunately, I do not see any effective efforts in this direction. Manufacturers are not eager to invest in marketing their products on their own, they prefer to offer this opportunity to dealers. The latter, for their part, try to minimize their expenses since they are not very sure of their legal protection. One more reason for regrets: yet, alas, they do have reasons for being anxious about it.

One of my companies is involved in logistics, and we provide services to large dealers of Georgian producers on the main markets. This is why I know not from hearsay, how the exports of Georgian lemonade to Russia experienced a drastic decrease in the second part of this year. Without naming names, here is an example: one of the manufacturers introduced changes in its dealer policy deciding to abandon exclusive dealership in favor of dealer competition in the same market. This is a common practice in international markets, even though one could argue that it is not very effective.

This Georgian producer experienced negative consequences on the Russian

market because of such a decision.

Competing dealers refrained from any marketing efforts as well as from their fight against counterfeit products.

Last August I could convince my Chinese partners that it was necessary to start a massive marketing campaign for Georgian mineral waters on the Chinese market. They require huge investment.

Do you know how many mineral water producers exist in China? Over 1200! And how much bottle water was consumed there in 2015? 87 billion liters! My Chinese partners came to Georgia recently, they met all major mineral water producers here. They were very interested in this idea. But they should invest many millions into this project, so the only issue preventing them from making final decisions is that they are not 100% sure about their legal protection. This is understandable: no one would want to invest dozens of millions of dollars in order to build the brand of Georgian mineral waters and to see later how all kinds of counterfeiters use the results of their efforts.

For me strategically speaking Georgia for is a boutique country. I am convinced that niche products should dominate in the future Georgian economy—that is, one-of-a-kind, expensive (that is, high value-added), ecologically clean products which cannot be produced in other countries or which are much more complicated and pricey to produce elsewhere.

What conclusion should be drawn from this? If a product is well-known and popular on a foreign market, the PDO/ PGI combination can provide an effective protection for both the producer and the dealer. Yet, a system of effective response to any cases of adulteration and counterfeiting must definitely be in place.

I was very happy when I read recently that Giorgi Samanishvili, the head of the Georgian National Wine Agency, is soon to visit Estonia because of the rising sales of such wine brands as Khvanchkali and Kinzmali.

It was really great that such a conference happened in Georgia and with such a high-level representation! GI, marketing, brand-building need more publicity in the Georgian business environment.

For three months I can’t create the Bay Leaf Producers&Exproters Association to apply for PGI for Colchi Daphna (Bay Leaf). The reason is that my colleagues in the branch do not comprehend why they would need it at all, so while they still hang on to this idea, there is a kind of a go-slow atmosphere about it, since no elementary actions are taken in order to get to the registration.

It is important to keep working and continuing our dialog with local businesses— not only with large companies, but with small and medium entities. It is necessary to explain, again and again, via all available communication channels— mass media, seminars, conferences— why it is essential to go this way, why business will not be successful without marketing.

11

Clean World Awards 11 Best Employees at 11th Jubilee On October 31 Clean World marked 11th anniversary of its foundation. In the first part of the jubilee ceremony, the company management updated the employees on new regulations and standards. At the end of the ceremony, 11 best employees of 2016 were awarded. A special board was introduced at the ceremony and winner employees affixed their own photos there. The event closed by cake cutting ceremony and fireworks. “We marked 11th jubilee! You should be long-sighted with focus on results and quality to succeed for so many years. The market changes at high paces, competition sharpens and it is impossible to withstand these changes without high quality criteria. Therefore, we make focus on quality and that’s why customers give preference to our company.

At the 11th jubilee, symbolically, we named 11 best employees of 2016. We arranged special space at the office and they placed their own photos there. Moreover, we prepared new regulations of management and quality control and introduced them to our employees. I believe similar promo campaigns will boost loyalty and motivation.

We are proud of our employees and we are happy when various facilities that we serve satisfy highest standards of cleanness”, Khatia Alpaidze, PR and marketing department manager of Clean World company, noted.

Georgian Parliament National Library to Set a Nest full of Books in Samtredia with the Support of “Clean World” The bike with nest on it full of books was individually prepared for Samtredians and was officially opened by the director of the library, Giorgi Kekelidze.

Starting from today, everyone can go and take a book from the “Nest” or they can even add a new book if they want. The nest of books has already been set in Telavi, Ozurgeti, Choxatauri, Tbilisi, Batumi, Kutaisi and etc.

The previous project of “Equilibrium” by Giorgi Kekelidze was aimed to promote the education and reading. After conversation with Giorgi, it has been decided that Samtredia should have also joined the project “Clean World”. “It was easy to choose the place, since Samtredia is my hometown” -declared PR and marketing department director at “Clean World”, Khatia Alpaidze.

Bike is symbolic for Samtredia, therefore it was easy to create this amazing books bike by one of library staff, Tengo Modu.

We are proud to be the first organization which supported this project.

“I wish “Clean world” to become an example for other organizations. It will be amazing if other organizations will take an initiative and strengthen “Equilibrium” movement to set more book nests in Georgia. This will be a small investment which we will use for the education of the future generation.

We will promote reading and also make a rule to give back the books”- declared Khatia Alpaidze.

12

PUBLICITY

November 7, 2016 #168

WORLD NEWS

November 7, 2016 #168

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Quotes

“ However, it is important to note that Georgians still require a Saudi visa to visit Saudi Arabia.

Telling a story is one of the best ways we have of coming up with new ideas, and also of learning about each other and our world

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Vaping products work by heating a solution of nicotine and flavors in a nontoxic solvent to create a vapor that is inhaled.

Richard Branson

Saudis Can Travel to Georgia Visa-Free Giorgi Janjgava, the Georgian Ambassador, declared that Saudis can travel to Georgia without visa requirements.

At the Jeddah Chamber of Commerce and Industry (JCCI), Giorgi Janjgava met with the JCCI vice chairman, JCCI board member and several executive leaders to discuss the new arrangement.

In addition to visa-liberalization granted to Saudis, “Saudis can stay in Georgia for a whole year with multiple entries. Even residents of the Kingdom can visit Georgia without a visa and stay up to three months, but they need to show their residence permit as well as hotel and airline bookings,” said Janjgava. With Saudi Arabia’s strong economy and Georgia’s increasing tourism and opportunities, the liberalization will allow more investments into Georgian markets. Particularity, the permitted visa-free travel will allow investments in Georgian agriculture and livestock.

This year, Saudi investments rose to $100 million due to the increase

in trade between the two countries.

Moreover, according to Janjgava, the total number of Saudi tourists in Georgia in 2015 was 13,000. This figure has doubled to 26,500 visitors in 2016.

Furthermore, Janjgava claimed that another 30,000 Saudi tourists are expected this year.

However, it is important to note that Georgians still require a Saudi visa to visit Saudi Arabia.

Janjgava provided the reasoning behind the limitation. “There is no Saudi Arabian Embassy in Georgia, although many businessmen would like to visit the Kingdom to enhance and avail themselves of the trade opportunities in the Kingdom,” Janjgava said.

“We are expecting Saudi Arabia to open an embassy soon in Georgia to help in strengthening the relationship and trade between the two countries,” he added.

Although the new initiative will strengthen trade relations between the two countries, Saudi’s unreciprocated visa liberalization does not play fair.

The World’s Second Longest Hydropower Tunnel Constructed in Georgia for the Shuakhevi Hydropower Plant

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ith a total length of 37.5 km, the Shuakehvi Hydropower Plant (HPP) tunnel in Georgia is now the second longest hydropower tunnel in the world.

The world’s longest hydropower tunnel is located in Iceland at the Kárahnjúkastífla Dam and has a length of 39.7 km. The third longest tunnel, with a length of 34.4 km, is located in Norway at the Evanger HPP. Until now, the longest hydropower tunnel in Georgia was the Enguri HPP tunnel with a length of 15.3 km – a much shorter tunnel than the one constructed for the Shuakhevi HPP. The Shuakhevi HPP is being built by Adjaristsqali Georgia LLC and is the first hydropower project in Georgia certified by the United Nations Framework Convention on Climate

Change for carbon emission reductions. The power station is expected to produce about 450 gigawatt hours of power annually and reduce greenhouse gas emissions by more than 200,000 tons per year.

Once the construction of the Shuakhevi HPP has been completed, Georgia will have a clean energy power station with an installed capacity of 187 MW. All electricity generated during the winter months will be exclusively for the use of the Georgian people. During the summer, when there is a surplus of power, electricity will be exported to Turkey.

The Shuakhevi HPP represents an investment of USD 416 million and employs 730 Georgian citizens. Once construction is complete, the power station will be jointly operated by a team of Georgian and foreign professionals.

EBRD Updates Smokers Keen to Break the its Transition Habit Get No Help From the WHO Concept for Market Economies The European Bank for Reconstruction and Development (EBRD) has established an updated method for measuring a country’s transition to a market economy.

Initially, the EBRD created the transition concept in 1997. This was when the countries in which EBRD functioned were emerging out of communism. However, during that period, communism tainted market economies leading them to numerous challenges as they worked towards capitalism.

The transition concept claims that for a successful market, competitiveness is insufficient. In addition, markets must be inclusive, well-governed, environmentally friends, resilient and integrated to achieve maximum success.

Currently, the changes in the concept revolve around the developing global definition of a successful market economy.

Moreover, the concept involves the various requirements of EBRD functioning countries to integrate into capitalism.

A 24-Hour Wine Fountain Opened in Italy From Rome’s Trevi masterpiece to the wedding-cake shaped display at Milan’s Piazza Castello, Italy isn’t exactly hurting for fountains. But a new one in Abruzzo just jumped to the top of our bucket list.

Last weekend, local vineyard Dora Sarchese installed a font that pours red wine instead of water. And the best part is, it’s completely free.

Simply bring a glass or bottle to the spout and help yourself.

Located in Caldari di Ortona, a town along the famous Cammino di San Tommasopilgrimage route, and designed by architect Rocco Valentini, the fountain will be open 24/7.

And while anyone can partake in the drink, the vineyard hopes it will become a “meeting place for pilgrims and wine lovers,” and has already warned that this is not a place for “drunkards” or “louts.”

Nor is it a publicity stunt. La Fontana del Vino is here to stay, giving us all the more time to book our flights.

T

he World Health Organization estimates that smoking kills nearly six million people a year world-wide, and the death toll has continued to rise since it set up the Framework Convention on Tobacco Control in 2005.

So it’s dismaying that the WHO continues to advocate that vaping products, a technology that could potentially save millions of lives, be regulated as medical products, or even banned. A November meeting of the FCTC will likely continue to advocate stringent regulations.

Tobacco smoking is the world’s largest cause of preventable premature death, and developing countries in Asia are among the hardest hit. If current trends continue, deaths in China alone will reach two million a year by 2030. This suggests that the FCTC’s current approach, which focuses on reducing demand for and supply of tobacco products, isn’t working.

Fortunately, there is another approach that has enabled millions of smokers to quit in many countries. Called “harm reduction,” it acknowledges that many smokers find it very difficult to break their habit. It seeks to ensure that smokers can use less harmful substitutes.

Harm-reduction technologies offer smokers ways to retain the rituals and pleasures of smoking with far fewer risks. One such technology is the “electronic cigarette,” invented by Chinese pharmacist Hon Lik in 2003, and other vaping products developed since then such as refillable personal vaporizers.

These vaping products provide a similar experience to smoking, including delivering nicotine, but with far fewer risks.

Vaping products work by heating a solution of nicotine and flavors in a nontoxic solvent to create a vapor that is inhaled.

Because there is no combustion, and hence no smoke, the vapor contains very low levels of carcinogens and other harmful chemicals. Nicotine itself is largely benign, contrary to widespread misconceptions. As the U.K.’s Royal College of Physicians put it recently, vaping “is at least 95% safer” than smoking.

Vaping products have proved to be highly effective aids to reducing tobacco use.

In the past five years, they have become popular in many countries, especially the U.S., U.K., France and Malaysia. At

least 10 million people have quit smoking by switching entirely to vaping, and millions more have dramatically reduced the amount that they smoke. The U.K.’s National Health Service encourages doctors to recommend that patients switch to vaping if they are unable to quit smoking using other means.

Harm reduction has enormous potential to reduce the burden of smoking-related disease in Asia. Given individual differences and cultural norms, experimentation is likely to play an important part in the process of discovering which products are the most effective alternatives to smoking. But that can’t happen if governments impose undue restrictions on either the development of these products or their use by adults. Unfortunately, the FCTC is resistant to the harmreduction approach.

Moreover, the FCTC avoids accountability by holding meetings and producing reports in secret. At the two most recent Conferences of the Parties of the FCTC, in Seoul in 2012 and Moscow in 2014, everyone, including every journalist, was removed from the public gallery at the start of formal proceedings. Meanwhile, documents on the potential role of harm-reduction products were produced without consultation of the leading experts on those technologies.

The FCTC also keeps tight control over who is able to participate officially in its meetings. There is essentially no participation by representatives of many affected groups, including users of tobacco and vaping products. It even seeks to exclude representatives from governments that have stakes in tobacco companies. If it is successful, several countries, including China, Cuba, Egypt, Bulgaria, Thailand and even India, host of the November meeting, could face difficulties getting delegates approved to participate in the next Conference of the Parties.

If the WHO and its FCTC are genuinely committed to reducing the harm from smoking, they should change their approach to tobacco control and recognize the life-saving potential of new technologies. A decision in India next month to push for stringent regulation would take life-saving technology out of the hands of consumers. The death toll in Asia will continue to rise.

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PUBLICITY

November 7, 2016 #168

Jordi Galseran

THE GRONHOLM METHOD Directed by Temur Chkheidze

www.marjanishvili.com; www.facebook.com/MarjanishviliDramaTheatre

ENGLISH SUBTITLES IN MARJANISHVILI THEATRE DURING THE WHOLE SEASON!

November 7, 2016 #168

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi.

E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy

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TBILISI GUIDE 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food.

Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition.

Contact information: Email: info@gsservices.ge.

Address: Shalva Dadiani 10

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

LIMELIGHTTRAVELINFOCENTER Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL, NIKORA AND SMART

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November 7, 2016 #168