Caucasus Business Week #192

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May 15, 2017 #192

May 15, 2017, Issue 192 - www.cbw.ge

Imports Georgia’s Onion Imports Exceeds 20 Thousand Tons

Econo-mix How Many Banks Should Operate in Georgia Pg. 6

Katia Absandze: Developing PR Sector in Georgia Needs Further Progress Pg. 4

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Georgian Toy Industry– Unpopular Business in Georgia

World Bank: Georgia’s economy to grow by 3.5% in 2017 The World Bank is moving its forecast up and saying the Georgian economy will grow by 3.5 percent in 2017, four percent in 2018 and 4.5 percent in 2019. High investments and increased exports pave the way for growth in Georgia, says the World Bank’s Trade in Transition report, where the latest economic update for Europe and Central Asia (ECA) is introduced. Furthermore, a recovery in export markets and an uptick in oil prices leading to growth in many of the country’s trading partners are all contributing to this accelerated growth, said the report. At the beginning of this year the World Bank projected Georgia’s economy to experience 5.2 percent growth in 2017. In its annual report Global Economic Prospects, the World Bank Group further forecast Georgia’s economy to hit 5.3 percent growth in 2018 and five percent in 2019.

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Investments Bring Knowledge and Cutting-edge Technologies to the Country

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Stable business environment free of corruption and transparent and simple payment system are one of the important factors for drawing investments to Georgia. Georgia occupies an important location, as a country connecting Europe and Asia. Transport infrastructure, seaports, air and railway systems have been developed and this is very important for Georgia, as a transit country. Construction of Anaklia deep-water seaport is underway and it will have particular importance for international commercial traffic. Georgia has already started applying the free trade agreement with EU. A free trade agreement was also signed with China in 2016. The mentioned agreement will come into force in 2017. Pg. 11


2 GOVERNMENT

NEWSROOM Minister of Finance Meets with Deputy Minister of Strategy and Finance of Korea The parties discussed GeorgiaKorea bilateral cooperation issues and noted that there are serious opportunities for cooperation enhancement and development.

Georgian President Encourages EU-funded Agricultural Cooperatives The pair met with representatives of the EU-funded European Neighborhood Programme for ENPARD and farmers from EU-funded agricultural cooperatives to discuss the EU’s support to Georgia’s agriculture and rural development.

ECONOMY

Economic Growth to Record About 4% in 2017 Net exports is expected to make an unimportant, but positive contribution to the 2017 GDP growth. After neutralization of external difficulties, net exports is expected to go better at moderate paces and make a little.

Revenues from Tourism Sector Marked 435 million USD in 1Q17 In March revenues from the sector went up by 28% and totaled 180 mln USD. We remind you that in March-January, a total of 1 266 125 visitors arrived in Georgia, up 11.4% as compared to the same period of 2016.

BANKING

Money Transfers to Georgia Rose by 22.3% in 1Q17 The information is provided in the monetary policy report for May developed by NBG. Volume of quick money transfers from EU countries is also growing, especially from Greece, Italy, Israel, the USA and Turkey, the NBG report reads.

May 15, 2017 #192

World Bank: Georgia’s economy to grow by 3.5% in 2017

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he World Bank is moving its forecast up and saying the Georgian economy will grow by 3.5 percent in 2017, four percent in 2018 and 4.5 percent in 2019. High investments and increased exports pave the way for growth in Georgia, says the World Bank’s Trade in Transition report, where the latest economic update for Europe and Central Asia (ECA) is introduced. Furthermore, a recovery in export markets and an uptick in oil prices leading to growth in many of the country’s trading partners are all contributing to this accelerated growth, said the report. At the beginning of this year the World Bank projected Georgia’s economy to experience 5.2 percent growth in 2017. In its annual report Global Economic Prospects, the World Bank Group further forecast Georgia’s economy to hit 5.3 percent growth in 2018 and five percent in 2019. Later, due to the negative developments in the country the World Bank downgraded the forecast and projected the economy to grow less than three percent this year. However, due to the positive developments in the region and in the country, the World Bank still moved its forecast up and said the economy to grow by 3.5 percent in 2017. Half a year ago we were very optimistic. In between half a year ago and this report we were even more pessimistic. We have forecast less than three percent for this year mainly because the numbers for the third quarter were rather weak in Georgia. Now we are moving the forecast up again because the numbers are very promising. We are looking forward in the coming years much more stable growth,” said Hans Timmer, chief economist for the Europe and ECA region of the World Bank. While further explaining the reasons of

pessimistic expectations, Timmer said: “What we have seen recently was really reaction to the big external shock. What normally happens after big shock is that either you have a sharp rebound or you have a much slower recovery. That dynamics are really unpredictable and are not easy to forecast. Going forward the situation is very different because you are no longer in very cyclical situation but you are entering the growth path that is driven by the structural factors, like job creation, for example”. World Bank Regional Director for the South Caucasus Mercy Tembon also believes that Georgia’s macroeconomic fundamentals “are back on track”. After a period of uncertainty Georgia’s macroeconomic fundamentals are back on track contributing to an improved economic performance. Looking forward Georgia has the potential to sustain faster economic growth as it integrates successfully with the rest of the world with higher exports, supported by innovation and knowledge,” said Tembon. Fiscal deficit will remain elevated at 4 percent of gross domestic product (GDP), unchanged from 2016, said the report. Poverty is expected to decline modestly in 2017 as economic growth recovers and translates into higher labour income. The poverty rate is also projected to continue declining through 2018, reaching 26.8 percent (measured at $2.5/day), said the report. With the Russian economy recovering in 2017 and an uptick in oil prices, growth in Georgia’s trading partners is likely to increase, rising Georgia’s export. Foreign Direct Investment (FDI) inflows, which largely originated from Azerbaijan and Turkey in 2016, remain resilient,” said the report. As the report continued, in outer years, growth prospects factor in improved

economic ties with the European Union (EU). The downside risks arise primarily from a protected period of slowdown among Georgia’s trading partners. Meanwhile, the report also highlighted some of the challenges Georgia could face in coming years. Key macroeconomic vulnerabilities faced by Georgia include risks to external and fiscal sustainability. Continued disturbance in some of Georgia’s main export markets and longer-term stagnation in the EU could further impact external performance. Rural poverty risks remain high if agricultural productivity does not increase and non-agricultural employment opportunities do not continue to expand,” warns the report. Timmer suggested it was important to create more tradable jobs. In terms of job opportunities Georgia has done many things right already. My experience yesterday was incredibly impressive when I visited Georgia’s Innovation and Technology Agency and saw how Georgia supports so many start-ups and innovative ideas”, he said. Now the questions are how do you organise the education, labour market, how do you make sure that those start-ups enter markets across the border? Also the challenge for Georgia is to make sure that everybody participates in those opportunities. In Tbilisi the opportunities are there. Here you have people with good education, but it is not in the whole country. There are parts in the country where skill levels are much lower. I think there are huge opportunities in tourism, because tourism can reach in those areas and create new job opportunities,” Timmer said. Overall, the report forecast better economic growth for the region and said trade volumes continuing to grow twice as fast as GDP.

Retail Loans Dollarization Shrinks by 4.6% in 3 Months According to National Bank of Georgia (NBG), in March (as of March 17), deposits dollarization coefficient made up 70%, up from 69.8% in February 2017 and down from 70.4% in January 2017.

BUSINESS

Total Space of Tea Plantations for Rehabilitation will Rise to 1000 hectares by 2018 Currently, 17 beneficiaries have joined Georgian Tea program. More than 500 hectares of tea plantations will be rehabilitated as part of the program.

Gross Energy Group to Construct 11 Small HPP The small HPP will be constructed on few rivers; however the biggest scale HPP will be constructed at river Tekhura which will cost about 200 million USD.

COMPANY

First AgoMarket Opens in Adjara The first agricultural market has opened in Kobuleti, the village of Gvara, Adjara Region. The agricultural market is located on 1000 square meter space of seedling farm of AgroService Center.

China Southern Airlines Plans to Begin Routes from Tbilisi to Europe

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hina Southern Airlines is going to begin routes from Tbilisi to Europe. Representatives of China Southern Airlines delivered a presentation about the company’s plans at the Hualing Hotels & Preference in the Georgian capital Tbilisi, on May 10. According to Zhang Jun, who is a Marketing Manager of China’s Xinjiang Province of China Southern Airlines, negotiations are underway with the Georgian Civil Aviation Agency regard-

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 3 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

ing the launching routes from Tbilisi to Europe (London, Paris, Budapest). “This will be a new step in China-Georgia relations”, Zhang Jun said. According to Zhang Jun, China Southern Airlines has been operating in Georgia since 2011. “This is very important for economic and cultural development of the two countries,” Zhang Jun added. Director of Georgia’s Civil Aviation Agency, Guram Jalagonia spoke about the successful operation of China

Southern Airlines in Georgia. “China Southern Airlines is one of the largest airlines in the world and the most important thing is that this is safe for passengers,” Jalagonia said. The event were attended by representatives of China Southern Airlines, the Chinese Embassy in Georgia, Georgia’s Civil Aviation Agency, Georgian Union of Airports, TAV Georgia, Georgia’s National Tourism Agency and various Chinese companies.

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


May 15, 2017 #192

PUBLICITY

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ECONO-MIX

May 15, 2017 #192

How Many Banks Should Operate in Georgia

- Lado Gurgenidze, former Prime Minister of Georgia, an executive chairman of the supervisory board of Liberty Bank - “Thoughts about management and leadership” - Giorgi Kadagidze, former president of National Bank of Georgia - “Innovation management” - Alexander Jejelava, Minister of Education of Georgia - „Organizational corporate culture“ - David Gogichaishvili, general manager of Night Show Studio - „Management of human resources” - Andro Dgebuadze, business advisor – ”Management 3.0 or MBA books in mirror” - Papuna Toliashvili, founder and managing partner of Synergy Group „Circular Organizational Structures“ - Tinatin Rukhadze, Co-founder and General Director at research and consulting company ACT- “Who is the leader of the future?” - Guga Tsanava, the businessman and entrepreneur - “Stanford Model of Management”

Merab Janiashvili Economic Analyst

The NBG decision will only strengthen the existing oligopoly. Lack of market competition harms clients, first of all, who will receive more expensive and lower-quality products, while even today the existing situation is unfavorable for clients, as they have been deprived of almost all rights and commercial banks enjoy indefinite authority.

ast week active discussions were underway on how many commercial banks should operate on the Georgian market. On the one hand, it is ridiculous to discuss how many players should operate on this or that specific market amid market economy. However, even the banking market seems not absolutely free, nor National Bank of Georgia seems interested in boosting competition on the mentioned market. Under the May 3, 2017 decree of NBG President, minimum supervisory capital requirement for commercial banks rose to 50 million GEL from 12 million GEL. Objective of the mentioned change is to restrict motivation of commercial banks with low capitalization to take extra risks and attract financially stable institutions into the system in order to promote financial stability of the banking system, the NBG says. According to the decree, minimum supervisory capital requirement for legal entities seeking banking licenses must be at least 50 million GEL. At the same time, before issuance of the decree, the process was divided in three stages for commercial banks licensed in Georgia. Under these stages, minimum supervisory capital must be 30 million GEL as of December 31, 2017, 40 million GEL as of June 2018 and 50 million GEL as of December 31, 2018. What factors have necessitated raising minimum supervisory capital from 12 million GEL to 50 million GEL? If commercial banks are facing financial problems, then NBG was to say about this. Statements as if this decision will promote financial stability are fairy-tales. Under this logic, we could raise the minimum requirement to 500 million GEL to make the banking sector more stable. Today 14 commercial banks of 17 ones satisfy the mentioned requirements and the remaining 3 ones have to either draw investments or merge with other major commercial banks. The one thing is clear that previously 12 million GEL was sufficient to open a commercial bank in Georgia, while under the new regulations, you will need 50 million GEL. As a result, this decision will hinder new players to enter the banking market, while there are serious signs of oligopoly and deficiency of competition on the market. Naturally, major banks have greeted the new regulations. TBC Bank director general Vakhtang Butskhrikidze noted that, under the regulator’s requirements, the minimum supervisory capital requirement has risen to 50 million GEL from 12 million GEL. «However, 50 million GEL is not sufficient because of the market demand», he added. «Much more investments are required to do business successfully in Georgia and this is natural requirement. Secondly, we think that there is a great number of commercial banks and in medium-term period the number of commercial banks is expected to decline again… I believe 50 million GEL investment is not sufficient to be a successful bank and be represented in one or several segments and to offer new technological products to clients. Several hundreds of millions of GEL are necessary to this end», Butskhrikidze noted and added that TBC Bank’s capital exceeds 1 billion GEL. The quantity of commercial banks is exaggerated in the country with less than 4 million persons, he said. «Consequently, in medium-term period 7-10 commercial banks should be sufficient for the country like Georgia», Butskhrikidze said. Bank of Georgia director general has made bolder statements and wished to see only 5-6 commercial banks in the country. «Minimum supervisory capital requirement has risen to 50 million GEL. I think this margin will rise further in the future. I believe 5-6 commercial banks can provide sufficient competition in the country. Despite there are only two major commercial banks on the market with 65%-70% market ratio, the competition level in the country is quite high, thanks to market offers and interest rate trends over the past 5 years. Namely, interest rates have shrunk by more than 5% on average», Kakha Kiknavelidze said.

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On May 3rd, 2017 the 9th meeting of Business Café was held at Holiday Inn Tbilisi. Mr. Sascha Ternes, Managing Partner at TERNES Real Estate Fund LLC and former CEO of ProCredit Bank spoke about organizational culture, business ethics and corporate management. About Business Café: Business Café is a project initiated by consulting company “Insource” and it has been supported by PASHA Bank since 2015. Business Café meetings are attended by top managers of large and mediumsized enterprises on regular basis. Each meeting offers a convenient platform for sharing knowledge and experiences as well as discussing the recent trends in various industries and the economy as a whole. Interesting discussion topics and interactive event format attract the participants and contribute to the rising popularity of the project. As of 2017 two new sponsors have joined the initiative - ACT and Orient Logic. “Today’s meeting, just like the past ones, was very informative and dynamic. This was a result of the speaker’s expertise and relevancy of the topic presented. PASHA Bank is the partner of Business Café for the third year running and we are excited to see the growing interest and positive feedback towards the project,” - said Anano Korkia, Head of PR and Marketing Department of PASHA Bank. Among the speakers and presented topics of previous Business Café meetings were:

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Business Café meets up for the 9th time

Bank of Georgia and TBC Bank Aspiring for Further Enhancement of Banking Sector Oligopoly Meanwhile, heads of small commercial banks stress the necessity of growth in competition. Part of them talks about the existing oligopoly on banking market. Vladimer Gurgenidze, head of Liberty Bank supervisory board, noted that he agrees with the position that Georgia with 4 million residents does not need so many commercial banks. Gurgenidze has not commented on other details. VTB Bank director general Archil Kontselidze explains that the country does not need more than 7-10 commercial banks. They should enjoy equal terms and be of equal size and compete with each other. Currently, only 10 commercial banks shape the market trends, in reality, he pointed out. There are expectations that commercial banks will further merge, he added. «It will be better if medium-size banks merge and the market becomes more competitive. It will be better if the oligopoly is overcome through growing the number of commercial banks. Today we have oligopoly on the market, in practice. Cartu Bank director general Nato Khaindrava has showed different position. She does not agree that quantity of commercial banks should decline in the country. «Who has determined how many commercial banks should exist? This is ordinary healthy competition and a great number of commercial banks is not a problem», Khaindrava noted. NBG President Koba Gvenetadze has also commented on the mentioned issue. «The time will show how many banks will operate in Georgia. We should not make hasty comments. There are major institutions in the banking sector, but there are also organizations and commercial banks of equal size that operate in upper and medium-size segments. This signifies there is competition on the market and interest rates are declining too», Gvenetadze said. It is difficult to agree with the NBG President as if there is market competition in the banking sector, because the reality is different, regretfully. At the same time, NBG will further deteriorate the situation through its decisions. It is also planned to raise the authorized capital requirement to micro finance organizations, after raising minimum supervisory capital requirement for commercial banks. Currently, the minimum authorized capital requirement is 250 000 GEL, the package of changes calls for growing the requirement to 1-5 million GEL. As a result, several tens of MFOs out of current 84 ones will disappear after merger or bankruptcy. David Kikvidze, expert of banking products, says that this decision will not bring positive results, because competitive environment will be damaged and operating capacity will be restricted. Introduction of the mentioned regulations will be a serious strike to microfinance organizations, he noted. Raising authorized capital requirement to microfinance organizations will narrow access to money, Kikvidze said. «The Government has killed the market of online loans, in practice. Many organizations are on the brink of bankruptcy and this factor has narrowed an access to financial resources. If regulations refer to microfinance sector, the market will be further narrowed and the access to financial resources will further shrink. Finally, we will receive regulations tailored to the banking sector», Kikvidze said. Seemingly, officials of National Bank of Georgia do not read recommendations by international organizations completely, otherwise they would see that oligopoly reigns on the banking market and Georgian bankers talk about this openly. The NBG decision will only strengthen the existing oligopoly. Lack of market competition harms clients, first of all, who will receive more expensive and lower-quality products, while even today the existing situation is unfavorable for clients, as they have been deprived of almost all rights and commercial banks enjoy indefinite authority. Competition restriction will further aggravate the current situation.

“Continued disturbance in some of Georgia’s main export markets and longer-term stagnation in the EU could further impact external performance,” said the report. “On the fiscal front, lower corporate tax revenues, high social spending commitments and plans to significantly ramp up capital spending pose risks to the plans for fiscal consolidation.”

Hans Timmer WB’s chief economist for Europe and Central Asia


May 15, 2017 #192

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IMPORTS

May 15, 2017 #192

Georgia’s Onion Imports Exceeds 20 Thousand Tons Why Farmers do not Grow Profitable Cultures EUGEORGIA.INFO

About 10 million USD outflows from Georgia every year because of onion imports. Besides traditional suppliers, there are also such countries as Luxembourg, Egypt, Netherlands and Kenya. Experts assure that correct planning of production can bring 12 000 GEL profits on a hectare. PMC Research Center prepared an analysis of ONION values chain in Samtskhe-Javakheti Region jointly with Samtskhe-Javakheti state university. The research project was financed by EU. Onion Production in the World According to UN Food and Agriculture Organization (FAO), the world onion production made up 87 million tons in 2013. The figure seriously increased as compared to previous years (73.8 million tons in 2009). According to averaged indicators for 2010-2014, main onion production countries are as follows: China (22 million tons), India (17 million tons), the USA (3 million tons), Iran (2 million tons) and Egypt (2 million tons). In the category of averaged crop capacity, the following countries are leaders: Ireland (71 tons on a hectare), South Korea (69.3 tons on a hectare), the USA (60.8 tons on a hectare), Australia (60.8 tons on a hectare) and Austria 57.6 (tons on a hectare). Importer countries are as fol-

The following countries occupy positions in Georgia’s onion imports

40% Turkey

30% Ukraine

22% Kazakhstan

lows: Malaysia, Great Britain, Saudi Arabia, Japan. Exporter Countries: Netherlands, India, China, Egypt, Mexico. Production in Georgia Like many other food products, onion production in Georgia is not self-sufficient. Production volume declined from 19 000 tons to 12.7 thousand tons in 2010-2015. Annual Imports volume in 2010-2014 marked 1113 thousand tons (19-22 million USD). Imports slightly shrank to 9 000 tons in 2015 (20.7 million USD). The following countries occupy positions in Georgia’s onion imports: Turkey (40%), Ukraine (30%), Kazakhstan (22%) and others. According to the research report, in 2014-2015, onion was imported form such countries as Iran, Italy, Kazakhstan, Kenya, Luxembourg, Moldova, Netherlands, Russia and Egypt. It should be noted that Georgia also carries out insignificant exports. The maximum volume of Georgia’s onion exports was recorded in 2013 — 120 000 USD and a major part of Georgia’s onion exports was carried out in Armenia (96.8%). Meanwhile, the research authors noted that Georgia’s soil and climate are favorable for onion production. Georgia-grown onion is quite resistant to diseases and has good taste characteristics. Onion grows in almost

all categories of soil, is a frostresistant culture and it does not need frequent irrigation. Main production regions are: Kvemo Kartli (70%), Shida Kartli (15%) and Kakheti (10%). In SamtskheJavakheti the number of owngrower farmers rise on annual basis. In 2014 onion was grown on 230 hectares, while the space rose to 252 hectares in 2015. Problems in Onion Production and Recommendations for Their Elimination Researchers have determined three groups that hinder the chain of onion values: restrictions in production, limited storage capacity and sales problems. Namely, the region lacks for agriculture equipment for onion production. Many farmers do not have sowing machinery. Consequently, onion is sown by hand. Onion collection and sorting process is also complicated. The sector lacks for workforce: many unemployed citizens in villages do not want to work in agriculture sector. Modern technologies, including drip irrigation system is not actively used. In general, irrigation issue is the sharpest problem in the region. Medium and major farmers need storehouses with air-conditioning systems, because a major volume of onion emits excessive humidity in the drying process. Consequently, well-organized driers are necessary. Because of difficulties

with storing onion, farmers prefer to sell their products as soon as possible. A major part of them has no problems with onion sales, but contacts with mediators are of unofficial character and consequently, instable. Moreover, at this stage, no farmer has contact with supermarkets. Like farmers in many other regions, onion growers in Samtskhe-Javakheti lack for commercialization skills and they cannot carry out products branding. Lack of insurance practices also make obstacles in production. Despite state support, agro business insurance is not widespread among farmers in Georgia. Currently, farmers in SamtskheJavakheti mainly grow potato and a major part of them does not make seed turnover and therefore, crops capacity is reduced and the soil is damaged. Therefore, it is important to popularize production of other cultures, including onion. «Onion crop capacity is very low in the Region and therefore, best practices of production should be established. Show land plots should be arranged and farmers should visit foreign countries to get to know experience of foreign farmers, because a major part of farmers grows onion for their own use and their commercialization level is low. It is recommended to promote marketing cooperatives», the researchers noted.


May 15, 2017 #192

TOY INDUSTRY

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major part of toys on Georgian market are imported from China. Key problems are related to not only quality and inappropriate prices, but also safety standards. Therefore, we may conclude that toys business in Georgia is unpopular. According to spread information, a major part of cheap and imported toys contains an excessive dose of leader. There are very weak control mechanisms in Georgia in this respect and parents should have to make right choice. The Caucasus Business Week (CBW) has inquired how popular toys business is in Georgia, what its perspective is and why the country does not have valuable production of toys. Ana Inashvili, founder of Babuta The Doll Maker company of handmade dolls, explains that her company cannot and will not try to compete with cheap imported toys, because the company keeps its own niche on the market. We started manufacturing fabric toys 2 years ago and sell products by order, she said. I would like to expand my business, not to do business alone, but currently this business is an artistic direction for me and I do not rule out to launch mass production in the future, Inashvili said. «I create products that may be applied by both children and adults, creative things. As to Chinese products, I would not introduce myself as a competitor to imported toys. They are in other category and our products belong to other category», Inashvili noted. An averaged price of dolls produced by Babuta the Doll Maker ranges from 50 to 80 GEL, she said. Geo Tous Company Geo Tous, wooden toys manufacturing company, appeared on the market 2 years ago. The company founder partner David Katsitadze explains that toys business is not attractive in the country because of several factors and this signifies people cannot see potential in toys business, despite the market competition is sharp in this segment, he said. Today we have unhealthy competition in this direction, Katsitadze said. Another reason is related to complicated crediting procedures at commercial banks. Toys business is a new line in the country. Therefore, commercial banks consider this business as a startup and require cofinancing component from clients, as well as guarantees and this factor creates problems. Production of high-quality and safe toys is quite expensive and this is one of the serious problems. Raw materials are expensive and this factor grows the prime cost. At the same time, cheap and harmful products penetrate the market. «The toys made of wastes costs far cheaper and domestic production cannot compete with them», Katsitadze noted. Regulations harmonized with EU legislation will be introduced in June 2019 to regulate imports of harmful toys and make the market competitive, Katsitadze noted. Informative awareness of our population should increase so as they know how harmful imported cheap products are. Retail sector should set control on products, he said. «It is very simple to control this process. The label must indicate the structure of a toy. Therefore, retail sector will decide simply which products are harmful and which not. This process will enliven competitive environment», Katsitadze noted. Can Georgian toys compete with imported products? Yes, they can, Katsitadze answered

Georgian Toy Industry– Unpopular Business in Georgia and referred to Geo Tous toys. «We have managed to offer competition to them in terms of quality and structure. A big niche will freed and many companies will be enabled to occupy this niche. Business sector has already expressed interest in investing money in toy business», Katsitadze noted. The country also lacks for professional staff. It is difficult to find due specialists, however, many programs were launched in this direction, including with the support of the state sector and donor organizations, Katsitadze noted. Tamashobana Company Nino Chikovani, one of the founders of Tamashobana educational toys company for children and adults, says that Tamashobana company produces all toys by its own design. There are no toys of Georgian production on Georgian market. There are only small enterprises in the form of workshops, but the country does not have large-scale production of toys, she noted. «Georgian toy manufacturing companies are not widely represented in the country. Toys imports grow by 20% every year. In reality, the market is undeveloped and there is no production in Georgia. This is a regretful fact. Imported toys should be controlled and regulations should change. Small business should be supported as part of Startup Georgia project», Chikovani said.

ACCORDING TO SPREAD INFORMATION, A MAJOR PART OF CHEAP AND IMPORTED TOYS CONTAINS AN EXCESSIVE DOSE OF LEADER In foreign countries, age restriction is indicated on toys. For example, a specific toy may be applicable for children from 3 years old or above 5 years old. This issue is not regulated in Georgia, Chikovani said. Children are not accustomed to toys because of lack of children-adapted infrastructure in yards. The market is developed at slow paces and in several years parents will conclude not to buy low-quality and cheap toys and they will prefer to pay comparatively expensive price, she said.

As to toy business profitability in Georgia and expediency of making investments in this field, Chikovani explains that profitability depends on adequately arranged business model. Kodala Company Kodala, wooden toys manufacturing company, launched operation about 4 years ago. The company director Kote Svanidze explains that the company has developed several lines for production of ecologically clean wooden toys: assemblage toys, mechanic toys, figurative and corporate toys. The company also manufactures various souvenirs. The company supplies products to such major networks as Smart, Goodwill and Super. Currently, the company manufactures 150 units of toys, he said. As to Kodala toys prices, they are acceptable for all categories of population, taking into account cheap and harmful toys. Kodala products prices range from 5 to 25 GEL. Toys business requires due knowledge. Moreover, it is a startup and it is difficult to get established on the market, he added. «We have been operating on the market for 4 years and make advancements stage by stage. There is no public demand for ecologically clean toys produced in Georgia. I believe this attitude will change in the future and the demand for our products will grow», Svanidze said.


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PR PERSON

May 15, 2017 #192

Developing PR Sector in Georgia Needs Further Progress

Interview with Katia Absandze, head of Lopota SPA Resort PR and Marketing Office -Who are you by profession? - I am a marketing specialist by profession. - Your first job place. - I can definitely say that I found my first and serious job at McDonald’s. - Current job and position. -Currently I have been working for Lopota SPA Resort, a Place where Time Stops. It is much pleasure to work for a PR and Marketing office. - Your first success. -The first success came when I moved to the Baltic Region for living. I managed to get established there after heavy and significant efforts in the school, where Russian and especially Georgian friends were hardly accepted. - Field where you would work in never. - I have not thought about this. It is possible to find ways for implementing your aspirations in any field, but I would not work at an office nor oriented on development. - What makes a person successful in your field? Besides knowledge, what special personal features are required? - Never Stop Seeking Novelties! Never Stop Examining! We are able to learn something new every time. Share your opinions to other people, even outside of your company. You will learn many things from your clients, competitors and partners. Show initiatives; Set new big goals every time. Among various ideas choose that one that should be implemented quickly with conviction. Besides these ideas and factors, get ready for new success; Sometimes it is very difficult to take first steps, but take a risk! Be brave to follow your heart and intuition. - Is it possible today in Georgia to study PR very well or international knowledge and experience are necessary? - Today PR sector in Georgia remains in a developing phase and it needs further progress, but PR art may be learned valuably in Georgia too thanks to continuous self-development.

Never Stop Seeking Novelties! Never Stop Examining! We are able to learn something new every time. Share your opinions to other people, even outside of your company. You will learn many things from your clients, competitors and partners.

- Is PR perceived and understood in Georgia in its classical nature? - Over the past period the process of shaping PR departments as structure units has started at private companies and state sector. Moreover, domestic and international donor organizations pay special regard to PR issues at workshops and conferences, but this attention is of instable and occasional character. «Nowadays Public relations are a a key component of any operation» - Elvin Adams. - How easily can you settle crisis situations and take decisions? Do you think crisis situations worsen working process quality? - We should be more or less ready for critical and crisis situations in ordinary life. In similar situations I always try to be maximally mobilized. I take all efforts to settle similar situations. - Interesting episode that has changed your life. - I would like to stress that when I started working for one of the leading global brands, namely, McDonald’s, this was huge success for me, because this is huge experience… brand standards are given in details and you automatically obey these standards and you make advancements very quickly. This was the first international brand. Intercontinental was the next, where I got huge experience. Working for international companies is very interesting, as well as the process of establishing all due standards in Georgian reality. Naturally, this process needs serious efforts, but the process and results are very interesting. - If not this profession, which field would you take efforts in? - I was a 10 years old girl, when I went abroad. I chose this profession upon school graduation. I cannot imagine myself in any other field. However, a person should be successful in any field, be hardworking. Otherwise, it is difficult to attain success. Do your favorite business, listen and follow your inner voice, find positive moments

even in failure. Do not try to be right, try to be successful and work a lot. Everything is attainable thanks to hardworking – I love my field, the place where I work and my occupation. - What about your strong personal features. - I always look ahead. Confidence in my own potential, optimism, unstoppable aspiration for development and perfection are very important. In general, striving for success determines activities of a successful person. - How your employer company benefit you? What makes it interesting for you? - I love the place, where I work. This is not a banal answer. This is true. This is the place, where peace reigns and at the same time, there are a lot of affairs. Lopota SPA Resort follows continuous development concept. It never stops and it is always developed, it always grows. Consequently, we (the team of Lopota SPA Resort) participate in the company development and this factor stimulates us to attain more and better results. - What makes major discomfort in working process? - Regretful reality arises, when a partner company violates deadlines! - Where do you see yourself after 20 years? - In my own business – this may sound in banal way, but this is reality and this is my goal. The road to the top is full of zigzags. Striving for goals at high paces is quite attractive, but unexpected obstacles also arise on this road and these obstacles complicate any business. «The road to success is never a straight line», Rich Christiansen writes in his book “Zig-Zag Principle”. Moving with zig-zags makes up flexible and grows our potential to use as more opportunities as possible. Therefore, I have chosen this road.


May 15, 2017 #192

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AGRO BUSINESS

Fruitful Land, Good Climate Conditions and Free Business Environment Do not Suffice for Success Investments Bring Knowledge and Cutting-edge Technologies to the Country

Business Consulting Company

IRAKLI CHIKAVA Commercial Director for Agro Solution business consulting company

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table business environment free of corruption and transparent and simple payment system are one of the important factors for drawing investments to Georgia. Georgia occupies an important location, as a country connecting Europe and Asia. Transport infrastructure, seaports, air and railway systems have been developed and this is very important for Georgia, as a transit country. Construction of Anaklia deep-water seaport is underway and it will have particular importance for international commercial traffic. Georgia has already started applying the free trade agreement with EU. A free trade agreement was also signed with China in 2016. The mentioned agreement will come into force in 2017. Under this agreement, 95% of Georgian products will penetrate Chinese market without customs taxes. Based on the above-mentioned, our coun-

try becomes attractive for foreign investors as an important transit country and as a producer of agrifoods with a free access to European countries and Asia. Consequently, we should use the mentioned environment and conditions. Georgia’s agribusiness sector is being developed at low paces. Along with development, new challenges arise too. Along with the sector development, a lack of innovative professional knowledge becomes more evident. Heavy social and economic and political environment of 1990s made significant effect on formation of new professional staff in both agrarian direction and in all fields. Today Georgian universities grow professionals. Vocational schools are opening and new programs are being developed. Both state and private sectors show serious interest in this direction. Naturally, all these efforts will bring results

in several years, however, this problem is relevant today and the field will not be developed due knowledge. We have 3 problems in agribusiness: 1. in some directions we do not have specialists. 2. We have specialists but they lack for due modern knowledge and they should be trained. 3. We have specialists, but farmer, peasant, producer do not use their knowledge. They do not have skills and culture of use of knowledge. Everybody, especially agrarian sector representatives and businessmen see that the problem exists. However, it is difficult to seek the problem resolution ways. Several businessmen invited foreign specialists, but in this case everything is related to mathematics – a big company may pay high salaries to foreign specialists, while small businesses cannot take

similar costs. A cooperative is to diversity expenditures. Consequently, if cooperative members share expenditures for specialists (Georgian, foreign), the problem will be resolved partly. One of the important ways for imports of modern professional knowledge is related to foreign investments. Besides financial benefits, foreign investments also bring huge knowledge and experience. Consequently, all these factors make positive effect on domestic production. Investments bring information and technologies on modern agribusiness achievements. We should remember that only fruitful land, good climate conditions and free business environment do no suffice for success. Like all other fields, innovative knowledge and professional staff are one of the important factors for attaining success in agribusiness.


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BUSINESS

May 15, 2017 #192

Kawalsky Accessories – Georgian Startup of Handmade Thick Felt Kawalsky Accessories is a new Georgian startup of handmade bags and accessories. Idea of creating the brand belongs to the art critic Keti Kharatishvili. “Idea of founding my own startup came up accidentally, I made a bag for myself and then decided to turn my enthusiasm into a business. My main working material is a thick felt, because it’s firm. As for felt, I use it only as a bobble”.

Ibis Styles Hotel Launched in Tbilisi AccorHotels introduced Ibis Styles Hotel to Georgian market. According to AccorHotels press service, new hotel is located in the center of Tbilisi, on Tabidze Street. Ibis Styles Tbilisi Center has 119 rooms and 101 of them are standard. It has to be noted that AccorHotel manages 44 hotels in Georgian and post-Soviet countries. Hotel Mercure Tbilisi and Ibis Styles Tbilisi Center are the joint project by International holding company “Macro Construction” and “Accor group”.

Terrassa Group to Build Green Roof Apartments Development Company Terrassa Group will build Green Roof Apartments. The first project which is located on Besarion Zhgenti Street is almost completed. “The company has come up with a concept proving green zone on the roof of every apartment they build or will do it in the future. This is already successfully established architectural trend in Europe and it enables company creating additional infrastructure. According to company sales manager, Nana Shengelaia, new projects are planned, however information concerning details hasn’t been revealed yet. The first building with green roof will be nine-floor apartment.

G.ber – Young Georgian Painter Turned Art into Clothes G.ber is a startup with a new concept,which provides practical use and availability of the paintings by Giorgi Beriashvili.. His paintings are printed on the different fabric: t-shirts, dresses and etc. G.ber was founded by Giorgi Beriashvili, Tako Beriashvili and Achi Odzelashvili. The brand manager and designer, Tako beriashvili talked with Marketer about the idea of startup, challenges and future plans. How did you come up with an idea to create G.ber? Giorgi has been drawing since he was 13. Since his paintings are expensive and people like them very much, we wanted to offer them different way to own the paintings. We wanted customers to enjoy with art on the daily basis. According to your information, do other artists use this way to spread their art? What is your advantage compared to others? I am quite familiar with this field now and I haven’t heard of the same business attitude. They usually print paintings which are popular and available. Our advantage is that what we sell is made by Giorgi and each painting is a work of art. How do you advertise your product and what is the price for it? We use facebook to advertise our product. At the same time, our clothes are sold in the shop “Komod”. We have offers from other shops and online shops as well. Except that, our collection was exhibited at Kazakhstan Fashion Week and it received a very good feedback. As for the prices, for example, t-shirts cost around 100 GEL , scarves 35-120 GEL.

Loladze Family Winery Success Story Loladze Family Winery was established in 2012 by 16-yearold Erekle Loladze in Tbilisi. He produced 100 bottles of different kinds of wine in the beginning and participated in Tbilisi Wine Festival in 2013. Few shops offered to sell the wine and nowadays, there is a far wider network of shops as well as bars selling his wine. The founder of the company, Erekle Loladze talks with Marketer about how he started and developed his company and what are his future plans. Why did you decide to start wine business and what kind of experience did you have when you started your company? I was raised in Kakheti and I have always had an interest for wine. When I started making wine,I didn’t have any professional experience but afterwards, I decided to get proper education and I entered Agrarian University and consulted with wine-makers and step by step, I gained some experience. What wine-making technology do you use and how do you produce wine?

We use Georgian and modern wine-making technologies at the same time. We are trying to consider Georgian family wine traditions and mass production perspectives as well. We do everything ourselves, starting from grapes cultivation including marketing. Where do grapes come from? Do you have your own vineyard? We had winegrowers for 5-6 years and we collaborated with them. As for our own vineyard, at this stage, they are newly planted and they will have crops in 3 years. Where is it possible to buy wine and what is the price of the bottle? Currently, we sell it only at the local market in Georgia. In the shops, the average price for our wine is 30-35 GEL and 40-45 GEL in bars. What are your plans to develop your company? We are building a new Marani in Mtskheta and we are planning to build one in Kakheti as well. In the near future, we are going to offer natural and bio-dynamic wines to our customers.

Buyers.ge -Online Space of All Products on Georgian Marke Buyers is an idea, which unites young and creative people who created an unique online shop to sell all kinds of Georgian products. The aim of the creators of buyers is to establish new movement which enables small and larger enterpriser to advertise and sell their products not only at the local market but abroad as well. There are various categories for different products: designers, women, men, children and etc. which are also divided in subcategories. There are about 40 employees in the Buyers team and marketer conducted an interview with Nino Dolidze, Head of Content Development. We are focused on discovering and offering high-quality products irrespective of its category. Our aim is make it easier for customers to find the product they are looking for and offer them the best quality. The aim of Buyers is to develop ecommerce which includes appearing new markets in the country. We want to help producers and importers to establish on this

market. If the product quality is satisfactory, we start collaboration with any company or physical person. It takes 24 hours to provide delivery service on Tbilisi scale. Most of the deliveries are made on the same day in the capital. In the regions, it takes no more than 48 hours. Blog Bugers Mag will be the main communication channel for the brand where all the pictures and visual materials will be posted. Blog content is created by Buyers team. Buyers working space is located in the historical building in old Tbilisi, which has a status of cultural heritage. We want to make our space alive with exhibitions and events. We organized a show room where Georgian designers and artists exhibited their collections and work of art. It is our policy to have same prices other shops have for the products. We don’t charge our customers with extra fees. The profit for our company is to earn certain amount of money when products are sold.


May 15, 2017 #192

GEORGIAN AVIATION

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PUBLICITY

May 15, 2017 #192


May 15, 2017 #192

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WORLD Mogherini Focuses on Togetherness and Shared Values in Europe Day Message

Kazakhstan Keen to Increase oil Transportation Through Azerbaijan Kazakh national oil transportation company KazTransOil is conducting work to increase oil transportation through Azerbaijan via railway for further loading of the Batumi oil terminal on the Black Sea coast of Georgia, Kazakhstan’s Energy Ministry told Trend. The Batumi oil terminal is fully owned by KazTransOil. According to the ministry, work is being conducted with all participants of the transport corridor, as well as with potential shippers in order to increase the transportation in this direction. The ministry said that in 2016, the volume of transshipment of oil and oil products through the Batumi oil terminal stood at about 3.4 million tons, including 2 million tons of oil and 1.4 million tons of oil products. Meanwhile, transshipment of Kazakh oil and oil products was not carried out through the Batumi oil terminal in 2016. The Kazakh ministry went on to say that the privatization of Aktau port on the Kazakh coast of the Caspian Sea, planned to be implemented until late 2017, from which Kazakh oil can be transported to Azerbaijani ports, shouldn’t affect the prospects of its transportation through Azerbaijan.

The EU’s High Representative Federica Mogherini published a video message to mark the occasion of Europe Day on 9 May. She believes that “staying together” and sharing the same values will be the key for the future of the European Union, which “matters to the entire world”. “This year the European Union has turned sixty: sixty years of peace, of protection for our workers, of opportunities for our business, of liberty and rights”, Mogherini began in her message. “The European Union is the values we believe in, the partnerships we build in the world, the mirror of our European society. Europe is what we, Europeans, make of it – every single day, each one of us.” “And we have recommitted to staying together, using the strength our unity gives

Belt and Road Initiative: China Plans $1 Trillion New ‘Silk Road’

German economic growth picks up speed, outpaces US Europe’s biggest economy expanded sharply in the first quarter of 2017, according to Germany’s Federal Statistics Office (Destatis). Growth was led by a revival in global trade and buoyant construction activity. Statistics show the economy grew by 0.6 percent from the quarter before when it expanded 0.4 percent. It’s the strongest quarterly growth rate since the first quarter of 2016 when the economy grew 0.7 percent. Destatis said investment in buildings and equipment grew strongly, while households and the government increased their spending slightly at the beginning of the year. “In addition, the development of foreign trade was more dynamic and contributed to growth as exports increased more than imports, according to provisional results,” the office said. The figures show the German economy outpaced the US, the UK, and France, which recorded lower growth rates. America’s quarterly growth rate was below 0.2 percent in the first quarter of the year, while the UK and France both grew by 0.3 percent. “A boom without end in Germany... and despite all the risks,” Bankhaus Lampe analyst Alexander Krueger told Reuters. “However, it should be noted that the economy would be humming less without the support of interest rates, which are too low for Germany,” he added. Economists forecast German economy to maintain robust growth, despite global geopolitical and economic uncertainties. On Thursday, the European Commission said it expected the German economy to grow by 1.6 percent this year and 1.9 percent in 2018.

us – because only together we can face the challenges of our times.” According to Mogherini, the EU has taken more steps towards security and the European Union can be considered as “a reliable superpower for peace and human development”. Nevertheless, she also mentioned that “change in the European Union is necessary”. “But change is possible and is happening. The choice of a stronger European Union in the world belongs to us. The choice of a more just, more secure and more equal Europe belongs to us, all of us. This is what Europe’s day is all about: not the future of the European Union’s institutions, but the future of every single European citizen.”

One in three children lives in extreme poverty across Turkey Some 7.2 million children in Turkey lived in households suffering from severe material deprivation in 2015, a fresh report has revealed. A report published by the Bahçeşehir University Center for Economic and Social Research (BETAM) revealed that some 36.4 percent of children aged between 0 and 15 suffered from the effects of material deprivation in Turkey in 2015, making the country the second worst in Europe after Bulgaria. In 2014, the rate in Bulgaria decreased from 38.3 percent to 36.9 percent, while in 2015 it increased from 36.2 percent to 36.4. Turkey was followed by Macedonia and Romania with 31.7 percent and 29.5 percent in 2015, respectively, according to the research. The European Union defines the criteria for severe material deprivation as a household that cannot afford at least four of the following: rent payments; mortgage or utility bills; adequate house warming; unexpected expenses; meals involving meat, chicken or fish every second day; a one-week annual holiday away from home; a washing machine, color television, telephone or car. Severe material deprivation rates among children are around four to five percent in Germany, Denmark and

France, while almost zero in Scandinavian countries, according to the research. “Although Turkey has showed a better performance in terms of national income per capita and general economic outlook than several European countries, it is one of the countries with the highest volume of material deprivation among children,” the report said. The highest number of children living in extreme poverty was in the Mediterranean, southeastern and the eastern provinces. One in two children in Southeastern Anatolia lived in extreme poverty in 2015, according to the research, although the rate saw a decrease to 23.3 percent in Western Anatolia. Three out of four children lived in families who could not take a one-week annual holiday, while some 40 percent of children were unable to meet their protein needs from red meat, chicken or fish in 2015. “Turkey needs more effective social policies to fight against child poverty and to avert regional disparities,” the report said.

China is aiming to re-create Marco Polo’s ancient “Silk Road” that connected Europe to Asia. But instead of the camels and caravans that transported spices and silk hundreds of years ago, a $1.4 trillion network of modern trading routes would be built. On Sunday, Chinese President Xi Jinping will host 28 heads of state at the opening of a twoday summit focusing on the so-called “Belt and Road” initiative. Analysts suggest the project could shift the center of global economy and challenge the U.S.-led world order. Beijing hopes the gathering will rally international support for the plan. Xi’s colossal program is 11 times the size of the U.S. Marshall Plan, which reconstructed Europe after World War II. It envisions new roads, high-speed rail, power plants, pipelines, ports and airports and telecommunications links that would boost commerce between China and 60 countries in Asia, Europe, the Middle East and North Africa. Among Xi’s guests will be Russian President Vladimir Putin, as well as the leaders of Turkey, Italy, Pakistan and the Philippines. A minister from reclusive North Korea will also attend. The U.S. delegation is led by Matt Pottinger, a special assistant to President Donald Trump and senior director for East Asia on the National Security Council. His visit to observe the summit was only announced Friday. And surrounded by heads of state, Pottinger’s relatively low position raises questions about how seriously the Trump administration is taking the project.


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PUBLICITY

May 15, 2017 #192


May 15, 2017 #192

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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: 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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May 15, 2017 #192


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