Caucasus Business Week #195

BUSINESS WEEK

DISTRIBUTED FREE OF CHARGE

caucasus1

June 5, 2017 #195

June 5, 2017, Issue 195 - www.cbw.ge

Bank TBC Offers Innovative Online Tools to Business

Hotel River Side Hotel Story of the Incredible Transformation

Pg. 9

Pg. 6

Gambling Games Georgia’s Most Profitable Business

Nino Subeliani: Interpersonal Skills Matter Most of All in the PR Field Pg. 8

Whereabouts of Benefits from Georgia’s Economic Growth According to a preliminary report

by Geostat, national statistics service of Georgia, in April 2017 real GDP growth pace made up 2.1%, while averaged real growth in the first quarter of 2017 totaled 5%.

Averaged real growth in January to April period constituted 4.2%.

Consequently, the fifth month of 2017 turned out unsuccessful for our economy. GDP growth paces in May recorded twice lower indicators compared to January to April period. The past decades suggest that our economy grows at low paces, but in a stable regime. Despite this, benefits from growth in GDP are not reflected on wide circles of our society.

Consequently, the question is which sector drives economic growth and where revenues from GDP growth disappear.

Pg. 4

International Hospitality Management University To Open in Georgia Under the aegis of Vatel, an acclaimed French business school, the International Hospitality Management University will open in Tbilisi. “This is what Georgia needs today, because tourism in Georgia is developing much faster than hospitality professionals are produced. It is of utmost importance that an internationally praised brand like Vatel is entering Georgia, and soon we will have top-notch international-quality specialists.

I am thankful to Block Invest and the Georgian National University for implementing this initiative.

Importantly, the school will operate internationally, and I am convinced that more than one student from our neighboring states will be inspired to study in Georgia,” the Prime Minister said.

According to Giorgi Kvirikashvili, this project is in full agreement with Study in Georgia, the Georgian Government’s initiative, which seeks to transform Georgia into the region’s hub for education. The education sector is a crucial precondition for fastgrowing tourism in Georgia.

2 GOVERNMENT

NEWSROOM Chinese Bank will Be Commercial By 100% Government of China will maximally support Chinese Bank to get established on Georgian market and this bank will be a commercial body by 100%, Minister of Finance of Georgia Dimitri Kumsishvili said.

China to Allocate 7 mln USD to Georgia for Financing Youth Hubs in Regions Under the agreement, People’s Republic of China agrees to allocate 50 million Yuan assistance to Georgia for promoting healthy lifestyle, entrepreneurship and other measures for financing young hubs projects in regions

ECONOMY

Economic Growth Pace Dropped 2.5 times in April According to early report by Geostat, national statistics service of Georgia, in April real GDP growth pace made up 2.1%. Averaged real upturn in the first quarter of 2017 made up 5%, while the January to April real growth constituted 4.2%.

Inequality of Income has Deteriorated Situation in Georgia Gini coefficient increased in Georgia in 2016.

According to Sakstat, Gini coefficient by total revenues has made up 0, 40 point in 2016, while the coefficient has been at 0.39 point in 2015.

BANKING

Bank Sector’s Deposits Portfolio Grows, 2 Commercial Banks Control 67.4% Ratio According to NBG, retail and corporate deposits portfolio at commercial banks accounts for 16.2 billion GEL as of May 1.The portfolio rose by 133 million GEL in April (+0.8%).

BlueOrchard Finance Injects GEL 14 mln into FINCA Bank Georgia to Expand Lending In compliance with terms and conditions of the agreement, the loan will support lending programs to micro, small and medium enterprises (MSME) throughout the country.

BUSINESS

Insurance Industry Ends First Quarter with 5.7 million GEL Profits In the reporting period the Georgian insurance market was represented by 15 insurance companies, which drew 143.8 million GEL insurance premium, up 13.2 million GEL compared to the same period of 2016.

Import of RHD Cars Stopped in Georgia This is despite the fact that in 2016 right-hand drive cars accounted for almost 40% of all auto import.

Car dealers, who before the beginning of 2017 successfully sold very high-quality and quite cheap Japanese cars, were affected the most in this situation.

COMPANY

Beeline Has a New CEO Communications and technology company Beeline has a new General Director Andrzej Malinowski. Malinowski is a Polish businessman and has 17 -year experience in producing primary consumption e-commerce businesses.

June 5, 2017 #195

ICCO welcomes Georgian PR association as new member

T

he Association of Communications Agencies Georgia, (ACAG) the Georgian public relations body has joined the International Communications Consultancy Organisation (ICCO) as its 40th national member. The ACAG was established in 2015, with the mission to develop and inspire communications in Georgia. We are delighted to expand our services internationally. We expect this to bring more international PR knowledge into Georgia, as well as to help showcase the Georgian experience on a broader, international platform.

Collectively ICCO represents over 2,500 agencies globally, as well as ten direct consultancy and network members.

Juergen Gangoly, ICCO Regional President, Europe said: “ICCO is growing faster than ever. We especially welcome our new member organisation in Georgia, which will, due to its geographical location, link our member organisations in Europe with new partners in Western Asia. As the PR business gets more and more global, this new membership is an important step for the Georgian PR association and for ICCO at the same time.“ Eka Zhvania, director of ACAG will represent the association on

the ICCO Board of management.

Ako Akhalaia, president of ACAG said: “It is a great honour for me to represent the Georgian Communications Agencies (ACAG).

As President, I am sure that ACAG’s – ICCO membership will be mutually beneficial for both parties: Georgian agencies will have access to all ICCO benefits, and ICCO members will benefit from the regional expertise that our members share.”

Maxim Behar, ICCO Global President said: “A warm welcome to our friends and colleagues from Georgia. My visit there a couple of months ago was very insightful, including presentations at the Baltic PR Weekend, Tbilisi.

The session gave me a clear picture that public relations business is very advanced and the business environment is very competitive and professional.

Georgia is a beautiful country with amazing people and we are happy that our colleagues will have a chance to be among their friends from ICCO, through exchanging ideas and experiences and learning collaboratively.

We all hope to welcome a big Georgian delegation to the ICCO Global Summit in Helsinki this October.”

ICCO offers its members market insights and ethical standards,

as well as professional training and networking events to allow local PR consultancies to develop within their region and internationally. We welcome Georgia and look forward to working with the ACAG. About ICCO: The International Communications Consultancy Organisation (ICCO) is the voice of public relations consultancies around the world. The ICCO membership comprises national trade associations operating in 55 countries across the globe in Europe, Africa, Asia, the Middle East, the Americas and Australasia, as well as agencies and networks with an international agenda.

Collectively, these associations represent over 2,500 PR firms. www.iccopr.com About ACAG The Association of Georgian Communications Agencies [ACAG] was founded in 2015.

The Association incorporates leading advertising and public relations agencies operating in Georgia.

The mission of the Association is to advocate common interests of communications agencies, improve the environment in Georgia, increase competitiveness and productivity of private sector. www.acag.ge

Healthcare Sector Development in Georgia – the Third MEETING ROOM Conference by PASHA Bank

O

n June 9th in Radisson Blu Iveria Hotel PASHA Bank hosts its third business conference under the auspices of MEETING ROOM with the topic being “Healthcare Sector Development in Georgia.”

MEETING ROOM will bring together a diverse group of players from public and private sectors to discuss major issues concerning the healthcare sector. The MEETING ROOM will cover, among others, the following topics: overview of the healthcare sector, capital as a crucial pillar for healthcare sector development, current state and future vision for healthcare sector, implementation of effective hospital processes in a developing and dynamic healthcare system, integration of Georgia’s private insurance system and the universal healthcare program, successful healthcare projects in the regions, specific considerations for financing healthcare projects.

The presentations will be delivered by following confirmed speakers:

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

Marina Darakhvelidze - Head of Healthcare Department, Ministry of Labor, Health and Social Affairs of Georgia Davit Vakhtangishvili- Deputy CEO (Finance), EVEX Medical Corporation George Kipiani - CEO of Vivo Medical Group Besik Pestvenidze - Health Insurance Director, GPI Holding Nodar Chikovani - Regional Coordinator, Medical Corporation Primed Goga Japaridze - CCO, Member of the Board of Directors of PASHA Bank Additional speakers to be announced. The meeting will be moderated by George Sharashidze, General Manager of Georgia Today Group.

“We are happy to announce our third business conference in the scope of the MEETING ROOM - a series of conferences focused on various economic sectors. The previous two meetings in June and December of last year were “Hotel Development in Georgia” and

Sustainable Energy Development in Georgia - Case for Hydro Power Plants” respectively. On June 9th we will gather again in Radisson Blu Iveria Hotel to discuss the major issues concerning the Healthcare Sector. We would like to invite all interested parties to the conference and hope that it will provide a venue for engaging and insightful debate for prospective investors in the healthcare sector and already established players alike“– said Goga Japaridze, CCO, Member of the Board of Directors at PASHA Bank.

Those who would like to attend the conference can contact PASHA Bank: E-mail: marketing@pashabank.ge; Tel: + 995 322 265 000 About MEETING ROOM: MEETING ROOM is a project initiated by PASHA Bank - a series of business conferences that aims to bring together participants from various sectors providing a platform for sharing ideas and best practices as it relates to raising the capital for a wide range of industries.

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

June 5, 2017 #195

PUBLICITY

3

The SME Banking Club is hosting the Caucasus SME Banking Club Conference 2017 in Tbilisi this week, to promote innovative non-financial services provided by banks—including providing businesses with practical guidance on how to grow sustainably and expand access to finance.

IFC, a member of the World Bank Group, is supporting the conference through its program on Non-Financial Services for SMEs in Eastern Europe and Central Asia. Bank of Georgia is an exclusive financial sponsor. More than 60 executives and officials from Eastern Europe, the South Caucasus, Central Asia, and the Middle East are attending the conference.

With the diverse needs of SMEs prompting many banks to shift from simple lending to more comprehensive banking strategies, the conference will focus on digital banking and innovations.

It has gathered key regional players to discuss innovations in digital, new lending and payment technologies for SMEs, as well as mobile solutions, e-banking, multi-channel strategies, and cooperation with fintechs and startups.

“New technologies and digital devices, and the rapid pace of innovation have had a big impact on the operating models of banks and banking infrastructure,” said Andrey Gidulyan, SME Banking Club founder. “In order to remain relevant, banks need to implement the newest financial services, including through cooperation with fintechs or using new opportunities provided by international IT services and corporations.”

“Our experience in emerging markets shows that non-financial services are a win-win for everyone.

They help SMEs address some of their key challenges, while also bringing tangible benefits to banks as they help grow their SME portfolios,” said Olena Prokopovych, IFC Non-financial Services Lead in the Eastern Europe, Middle East and North Africa. “We are helping banks in the region tap into this vast potential while also helping SMEs grow sustainably.”

SMEs are the largest employers in many lowincome countries, yet their viability can be threatened by a lack of access to finance. Creating opportunities for SMEs in emerging markets is crucial to encouraging growth and reducing poverty.

Managers, SME business leaders, and banking executives from Georgia, Armenia, Belarus, Kazakhstan, Tajikistan, Ukraine, and Russia attending the conference include: Boris Dyakonov, CEO, Tochka Bank (Russia) Yakov Novikov, Co-founder, Managing director, ModulBank (Russia) Olena Prokopovych, Non-financial Services lead in Europe, Middle East and North Africa, IFC Manar Korayem, Women Banking Champions Program Lead, IFC Zurab Masurashvili, Head of MSME Banking Department, Bank of Georgia Eugen Metzger, Board Member, Ukrgasbank Tamar Zhizhilashvili, Deputy Director of Marketing Communications & Business Banking, TBC Bank (Georgia) IFC’s Program on Non-Financial Services for SMEs in Europe and Central Asia is funded by Switzerland’s State Secretariat for Economic Affairs (SECO).

About SME Banking Club A non-profit association, the SME Banking Club provides information about the services European banks offer to micro, small and medium enterprises. It also promotes SME banking as a career option for workers in the financial industry. The association provides analytical services and conducts research on the banking sector across Europe.

About Bank of Georgia: JSC Bank of Georgia is the leading Georgian bank with a market share of 33.5% (based on total assets), 32.7% (based on total loans) and 32.2% (based on client deposits). The Bank offers a broad range of retail banking, corporate banking and investment management services. As of 31 December 2017, Bank of Georgia served approximately 2.0 million client accounts through one of the largest distribution networks in Georgia, with 276 branches, the country’s largest ATM network, comprising 772 ATMs, 2,697 Express pay (self-service) terminals and a full-service remote banking platform and a modern call center.

For more information about Bank of Georgia, please visit http://bankofgeorgia.ge.

June 5, 2017 #195

Whereabouts of Benefits from Georgia’s Economic Growth Merab Janiashvili Economic Analyst

The finance sector has been recording highest growth paces over the past 10 years, where only 5% of employees are registered, while 48% of total employees, which is recorded in agriculture sector, has increased by only 0.7% in 20062016 years.

Finance Sector Records Highest Pace of Growth, Agriculture is the Last

A

ccording to a preliminary report by Geostat, national statistics service of Georgia, in April 2017 real GDP growth pace made up 2.1%, while averaged real growth in the first quarter of 2017 totaled 5%. Averaged real growth in January to April period constituted 4.2%. Consequently, the fifth month of 2017 turned out unsuccessful for our economy. GDP growth paces in May recorded twice lower indicators compared to January to April period.

The past decades suggest that our economy grows at low paces, but in a stable regime. Despite this, benefits from growth in GDP are not reflected on wide circles of our society. Consequently, the question is which sector drives economic growth and where revenues from GDP growth disappear.

In 2006-2016 Georgia’s economic growth constituted 4.4% on average. In this period the highest indicator was recorded for Indirect Evaluation of Financial Mediation Offices, where averaged growth per annum marked 16.4%.

To be precise, indirect evaluation of financial service represents the service provided by financial organizations for clients that is not paid for on the spot, but they are reflected on growth in loan interest rates and lowering yields on deposits, for example, service of staff of bank branches, service of call centers and so on. This signifies the price of services that the finance sector receives from clients. It is followed by financial activity with 11% annual growth pace.

Mining sector with 8.2% growth and real estate operations with 8.1% averaged annual growth occupy 3rd and 4th positions.

As to the slowest-growing sectors over the past 10 years, agriculture is leader and its annual growth pace remains under 1%. For example, in 2006-2016 Agriculture, Fishing and Logging growth marked 0.7%.

«Conditional Rental of Use of Residencies» comes the next with 2.8%; «Electricity, gas and water production and distribution», «products processing by household economies» and «Household activities and business related to cattle-breeding and production of services for own purposes» account for 3.6% annual growth pace.

It should be noted that, according to the 2015

‘‘

SME Banking Conference in Tbilisi Promotes Financial Innovations to Ease Access to Finance

ECONO-MIX

‘‘

4

indicators, the ratio of agriculture sector in total number of employees is 48%, where averaged salary amounts to 578 GEL, according to the 2015 indicators, while averaged salary in the country is 900 GEL, including highest salary is registered in finance sector (1 691 GEL), while finance sector’s ratio in total number of employees is only 4.95%.

The finance sector has been recording highest growth paces over the past 10 years, where only 5% of employees are registered, while 48% of total employees, which is recorded in agriculture sector, has increased by only 0.7% in 2006-2016 years. Consequently, averaged salaries of employees in the finance sector rose to 1 691 GEL from 1 014 GEL in 2007-2015, while averaged salaries in agriculture sector rose to 578 GEL from 184 GEL. Averaged salaries of employees in agriculture sector have increased more compared to the finance sector employees over the past 9 years in terms of percentage. Despite this, difference between salaries in these sector deepened further. For example, according to the 2007 indicators, the finance sector employees used to receive 830 GEL higher salary compared to the agriculture sector workers. The difference marked 1 113 GEL in 2015.

It should be also noted that unequal distribution of benefits from economic growth preconditions a high level of unemployment and poverty in the country.

According to Geostat, in 2016 the ratio of population under poverty rose by 0.5% and constituted 21.3%. In 2010-2015 period this indicator declined to 20.8% from 36.1%. According to Geostat, ratio of population under poverty rose in Tbilisi (from 16.9% to 19.7%) and rural zones.

The figure rose to 25.5% from 24.7% in regions.

Today, unequal distribution of wealth in the society is one of the key challenges for Government. Inclusive development was a pre-election promise of Georgian Dream. According to this promise, all social groups of our society would have access to benefits from GDP growth. Consequently, Government should carry out policy, when major companies will be oriented on not profits growth, like current practice, but on development of small and medium businesses, because this is the best way of overcoming poverty and unemployment.

“Our Objective is to Attract more than 7 Million Tourists in 2017. The first four months have recorded much better indicators and we can definitely say this year we will improve our indicators. In 2016 we hosted 6 million tourists and we plan to improve this figure by 1 million visitors.”

Giorgi Chogovadze Head of tourism administration

June 5, 2017 #195

5

6

HOTEL

River Side Hotel Story of the Incredible Transformation Interview with Dimitri Shvelidze, Deputy Director of River Side Hotel - Hotel River Side enjoys highest evaluations on Booking.com. Do favorable location and services satisfy the guests expectations and interests?

Obviously, location plays a key role for any hotel, however, having proper service and facilities are equally important. We at River Side Hotel envisage all of these and usually even “go extra mile” to make our guests’ stay incredible. Location is a very important factor indeed. In this regard, River Side has an excellent location in the historical part of Tbilisi, surrounded with two beautiful parks, flea market and minutes to walk to Rustaveli Avenue. It is very important for our guests to have possibility to explore the most beautiful places of the capital in some minutes from River Side. We were very proud to have been selected among TOP 10 hotels of Georgia for the third year in a row by Tripadvisor Inc. and along with famous hotel chains to become finalist of International Hospitality Awards 2016 in Kiev, Ukraine.

- Comments on Booking.com show that the hotel is mainly visited from CIS countries. Does the hotel workload grow and which citizens do mainly visit the hotel?

Georgia is steadily becoming a very popular tourist destination and number of travelers is growing every year. Tourism Administration also does a great job into advertising our country through various channels and in many countries. It will be difficult to name one single place from where the most of our guests come from. Usually it is the whole world; however, travelers from CIS region, eastern and central Europe and US prevail.

Nevertheless, it also depends on season, holidays, events happening in Georgia, etc.

I wish more travelers from Western Europe would come to Georgia and explore our beautiful country. There should be more advertising aimed to this market.

- Hotel River Side has very calm colors.

As reported, the hotel was reconstructed in 2016. What aspects have been taken into account for selecting its internal design?

River Side went through major renovation in May 2016 and it is a great story of transformation from mid-type hotel to luxury boutique hotel implementing lots of high-end facilities, services and personalized attitude from our great team who does its best to make sure every single guest is happy with his/her stay. We were very careful in the design process. River Side is a beautiful masterpiece of Georgian Architecture with charming Terrace balconies and brickwork.

Therefore, we wanted to maintain that unique spirit and additionally make every

single detail inside special.

Creating a new design for our rooms was very challenging and exciting. We planned to make it luxurious and comfortable and implement international standards while creating them. We changed everything: Starting from the beautiful carpets in the room and ending with exclusively hand-painted ceiling. We decided to use massive wood furniture and go beyond and create very large beds exceeding 2 meters in width and reaching almost 2.20 meters, which is much more than ordinary King Size. We added pillow menu, premium mattresses for great sleep experience, famous Italian “Parati” wall décor to create perfect ambiance inside. Few years ago, River Side was one of the first to introduce wireless safes and wireless door entry system so we went further and decided to upgrade our entertainment system.

We Implemented new LED TV’s with up to 150 licensed channels where guests can change subtitles and languages, also added premium sound system in higher category rooms by Philips which has an iconic design of “1955 Philetta 254”, and serves as a dock station for Apple devices, charges them and has great sound for listening music from any device. We added tea facilities and our guests can have free tea and water every day. We updated bathroom further. Now our rooms, which are huge, have ceiling up to 4.20 meters and are at least 25 sq.m and complimented with private balcony or terrace, can be considered as one of the most

for our guests. Apart from this, River Side introduced “Rewards Club” for its loyal clients who can earn points and redeem for variety of our services, upgrades, dinner, transfer services and of course, for free nights. Special Card is issues upon request by the front office team.

River Side become official member of AmCham, CCIFG and ICC. Also member of American Hotel and Lodging Association (Washington DC.).

- Safety is an important factor for hotel guests. What is the situation in Hotel River Side in this respect and does the hotel meet the standards of a four-star hotel?

Safety and Security is indeed very imporattnt for the hotels and is not easy to achieve.

With the assistance of major worldwide organizations in this field, we started implementation of necessary equipment and facilities, also conducted trainings for our staff. It proved to be more challenging and time consuming that we thought, but we understood that it was necessary for the hotel. It took us approximately 3 month to finish implementations. Currently River Side Hotel has EU approved Safety and Security Standards, holds HACCP certificate for the Kitchen. HACCP (Hazard Analysis and Critical Control Point) is a system that helps food business operators look at how they handle food and introduces procedures to make sure the food produced is of highest quality.

As for the star requirement, we perfectly understood that there is no organization yet who would assess start Location is a very important factor indeed. In in Georgia, Hereby decided to use this regard, River Side has an excellent location we HOTREC standards. in the historical part of Tbilisi, surrounded with HOTREC and its astwo beautiful parks, flea market and minutes to sociations have been working on bringing walk to Rustaveli Avenue. the hotel classification systems in the various European beautiful in Tbilisi. We did not stop there countries closer to one another eventually, and renovated our reception area, adding the Hotelstars Union under the patronage of special place where guests can read books HOTREC was created. There are hundreds from our library corner, enjoy daily newspaof requirement to to fullfily, which defines pers and magazines specially delivered for appropriate stars and we made sure River River Side. Recently we introduced digital Side accepted EU 4 star requirement. We subscription of two international newspaeven went beyond to meet 4 S standards for pers, which is free for our guests. Stats shows our rooms. they are enjoying it very much. As River Side - My personal experience suggests is also orientated on business travelers, we that the level and quality of makeup also introduced Concierge Service Applicaproducts are very important for visition serving as private assistance when the tors at the suites. Which makeup brand guest is outside and requires assistance. It products does Hotel River Side give does not matter he/she needs train tickets in preference to?

Europe or simply to order taxi, Our concierge River Side Hotel uses only premium costeam will assist. Using this service is also free metic articles which are daily provided into

June 5, 2017 #195

our rooms. We have around 16 types of them for our guests, who find it very useful and which are created especially for River Side. Back in 2016, we selected the companies who were delivering premium cosmetic articles to 4 and 5 star hotels worldwide, thus making sure we had everything our guests needed and of proper quality.

- As to cafe-restaurants, what does Hotel River Side offer to the visitors in this respect?

River Side Hotel has two incredible restaurants: Tiffany Bar and Tiffany Rooftop Terrace. In December 2014 we opened Tiffany Bar on the ground floor of River Side. We wanted to create different and elegant ambience for our guests which would perfectly mix with the hotel’s architecture and design, although be totally different and simply perfect. And we did it. Tiffany Bar offers a chic, stylish look and feel. With beautiful opulent pieces of furniture and a menu that includes creative cocktails and culinary wonders masterfully created by our Chef. Food and drinks are served throughout the day, starting with Continental breakfast in the morning and continuing with a full menu of lunch, snack and dinner option into the evening, accompanied by live music almost every day. Tiffany Bar also became popular with its desserts: Freshly made waffles, crepes, cakes, ice-creams, etc. According to several Georgian websites, Tiffany Bar was ranked #1 Romantic café in Tbilisi for 2016.

In 2017 we introduced Tiffany Rooftop Terrace on the six floor of River Side Hotel. Tiffany Terrace is the place to see and be seen. Designed to resemble all the comforts, this beautiful restaurant and lounge is the perfect place to take a break and relax from daily activities, whether our guests are coming in from work or just touring around the vast city. They can eat from our various lunch and dinner selections refined by the executive chef, and drink from our extensive wine list.

It’s the perfect way to take a breather from the buzz of Old Tbilisi and watch the world pass by while sitting in front one of our large windows that overlook Old part of Tbilisi and marvelous Mtatsminda. Tiffany Terrace has convertible roof which automatically uncovers itself in warm weather.

I am happy to say that we already had around 23 wedding proposals and all of them were success! (She said YES!).

- What does Hotel River Side do to attract more visitors? Does this process depend on only good evaluations, internet advertisements or do you have tight cooperation with travel agencies?

Advertising is a very important tool and we in River Side are largely focused on happy guests and subsequently – satisfied partner. After major renovation and acceptance of required safety and security standards, we are currently working with local and international organizations, agencies, companies, and websites. We make sure travelers can easily find great rates for River Side Hotel.

We also created one of the most advanced and easy to use websites (www.riverside.ge) and added various useful tools there. We also introduced advanced reservation system on our website, which is very easy and secure to use, and it is available in 4 languages! You can reserve our room, transfer, welcoming sets and choose tours in one single panel.

- Has GEL exchange rate devaluation worsened a visitors inflow to the hotel and has the hotel business increased service prices?

Exchange rate is something whole country was discussing for the last several months. However, I believed it would not largely worsen visitors’ inflow into the country and in our hotel as well. Despite exchange rate fluctuation and despite major renovation in 2016, we have not increased rates for our local and international partners, to make sure our partners and especially guests enjoy our high-end services and are happy.

June 5, 2017 #195

7

GAMBLING

G

ambling games business is one of the most profitable, nontransparent and dreadful sectors in Georgia. According to specialists, gabling business has been growing at high paces in Georgia. Along with technological progress, this sector also penetrates wider circles of our society, in various geographical zones. Several years ago gamers had to visit gambling houses, however, today personal computers with Internet suffice to sink into the world of gambling games without leaving a house.

Revenues of the gambling games sector made up 4 235 351 755 GEL in 2016, up 1 billion GEL year on year. In 2015, gambling games revenues marked 3 121 744 711 GEL. In 2016 profits of gambling games industry totaled 363 million GEL, up 50 million GEL compared to 2015.

There are 252 companies on gambling games market.

Gambling games business is the most profitable sectors in Georgia and revenues from this sector have prevailed even revenues from commercial banks – in 2016 revenues of commercial banks constituted 2 billion GEL. The gambling games industry is also leader in terms of profitability and it unconditionally occupies a leading position.

The mentioned information was published on businessmap.ge website that was developed by the initiative of TBC Bank.

These two fields – commercial banks and gambling games record unimaginable figures of profitability. Last year banks and gambling business sector earned more than 1 billion GEL net profits and they are leaders unconditionally.

As to budget payments, there is an absolutely different situation. The state budget receives very small amounts from both sectors.

This year, based on the new taxation regime, budget payments from gambling games have increased slightly. In the first quarter of 2016 the gambling games business payments to the state budget made up 17.882 million GEL, while in January to March 2017 the sector’s budget payments marked 33.858 million GEL. Despite this change, the ratio of gambling business in budget revenues does not exceed 1.4%, while the ratio was 0.8% in January to March 2016.

We have the same situation in case of the bank sector. According to National Bank of Georgia (NBG), in 2016 all commercial banks transferred 79 million GEL to the state budget, in 2015 – 67 million GEL, in 2014 – 79 million GEL and in 2013 – 44 million GEL. The Caucasus Business Week (CBW) has inquired whether it is normal that the gambling business revenues grow at such high paces.

AYFB vice president Paata Bairakhtari explains that this is the disease called as Ludomania and it means a dependence on gambling games. The major portion in 4 billion GEL is recorded for revenues from the gambling business.

According to Bairakhtari, not only in Georgia, but also worldwide, people with unimportant financial incomes are predominantly involved in gambling games actively. «This factor is much heavier in our country, because a major part of players are dependent on online gambling games and this factor is a key source of revenues. Regretfully, the state budget

Gambling Games Georgia’s Most Profitable Business receives no benefits from these companies», Bairakhtari noted.

The key problem is that gambling business is not taxed in Georgia and this unreasonable policy should be revised. This sector should be subjected to regulations, Bairakhtari said.

«This sector should be regulated definitely, because in many countries of Europe, where similar games are admitted, legislative basis is improved stage by stage, along with technological advancements, while we do not have even a law in this respect», Bairakhtari noted.

When online gambling games are subjected to regulations, these indicators may increase further, he added.

Analyst Merab Janiashvili explains that state economy will always suffer in the country, where highest revenues are recorded in gambling games business sector. This sector makes no product in the country, he said.

«On the contrary, financial resources are withdrawn abroad. The sector produces no goods and it makes no influence on domestic products.

Even more so, today gambling game companies pay the same taxes as representatives of other business sectors», Janiashvili said.

“

ACCORDING TO SPREAD INFORMATION, A MAJOR PART OF CHEAP AND IMPORTED TOYS CONTAINS AN EXCESSIVE DOSE OF LEADER

Gambling games are popular in Georgia because of grave social conditions in the country, he added.

«In foreign countries all gambling games are considered as a source of entertainment and not a source of revenues. Nobody plays earn money there», Janiashvili noted.

Gambling business turnover grows in the course of time. For example, in 2012 this indicator constituted 0.5 billion GEL, he said. «This is very bad, because people lose houses, property and this factor becomes a genuine problem for the state», Janiashvili noted. This problem may be solved by introducing due regulations and upgrading public awareness, he said. Levan Natroshvili, representative of Transparency International – Georgia, explains that these indicators do not mean the mentioned 4 billion GEL is accumulated only from gambling games. Ministry of Finances does not make separate statistics about budget transfers or turnover in the gambling business.

«In this case we mean gambling game companies, which own other businesses too, that is their turnover comprise all other activities. Ministry of Finance does not provide such statistics. Therefore, this is not verified information and it is unrealistic», Natroshvili noted.

8

PR PERSON

June 5, 2017 #195

Interpersonal Skills Matter Most of All in the PR Field

Interview with GEPRA Senior Consultant Nino Subeliani -Which PR companies inspire you?

-There are several inspirational companies in terms of management and organizational development, such as Ketchum, Ogilvy PR and Edelman, which have managed to achieve quick expansion on the international market.

Edelman is also distinguished for its financial indicators and naturally this is a source of inspiration… Financial indicators prove that the company follows the right way, creates special products, carries out reasonable policies and occupies leading positions… It is important to study the experience of such leading companies.

-Which media agencies do you read or watch every day?

-Traditional media has been overwhelmed by social media. Therefore, I would say that I can see all the good content online. I can find all relevant issues here, starting from television content and ending with newspapers.

However, it is my habit to keep a TV set on at home (even if I don’t watch I listen news of Georgian informational programs)… Based on quality, my favorite TV channel is CNN with its Richard Quest program.

- What aspects differentiate PR from Marketing?

-These two directions are differentiated due to their goals… For a short answer we can say that Marketing has commercial goals, while PR works for image and reputation.

-Which of your media placements do you take pride in?

-I think it is the journalists who should be proud of media placements. We create grounds and occasions in PR for reaching good media coverage. Consequently, I would be proud of several media publicities where we can say that

“ Crisis management policy should have been developed, as well as management mechanisms and errors will be minimized in crisis management.

This is a strategic point to cope with crisis situations.

This is our operational tool.

without PR, media content would not have been generated.

-What about your best project or period?

-I would specify two projects of HeidelbergCement: international educational project - Quarry Life Award, which was implemented in 17 countries; Georgia was a benchmark with this project is terms of communication and showed the highest results in public involvement and awareness increase. Another project is TbilisiMarathon, the first halfmarathon in Georgia, when we achieved mental and cultural change in public through an efficient communication process. It became an annual event and I am proud of it…

-How do you manage to integrate social media with PR? -Social media is one of the communication instruments and it is quite an efficient way to reach wide audiences and test communication messages. We focus on the tasks in each of the projects to achieve maximum benefits.

I would also like to note that social media loses efficiency without other channels, because, to a certain degree, social media comprises multiple functions – in practice, it becomes a communicator of materials distributed by other media outlets. Therefore, it is important to integrate several PR channels in a communication campaign to reach the best results.

-How would you characterize the results of your job?

-This is a long chain where each achievement paves way towards new success. Only after retiring will I analyze the final results, because results that I consider positive now may be seen differently after 2 years. Therefore, I think appraisals by other people matter

more…. And they assert that I attain good results.

-Which campaign do you consider as a creative and an efficient one?

-Quarry Life Award communication campaign.

-How would you react if a client or manager opposed your PR strategy?

-I would prefer to avoid similar scenarios. If the strategy has its logical proof, chances for objection are very low.

However, if there are several doubtful aspects and you rely on intuition rather than on arguments, then you should apply a theory of persuasion, and this is a separate art.

-How do you cope with crisis situations in PR? -A crisis management policy should be developed, as well as management mechanisms, and this will minimize errors in crisis management. This is a strategic point to cope with crisis situations. This is our operational tool.

-Who are the members of you current team? What are their functions?

-At this stage various teams are working on several projects… naturally, roles are determined per project objectives… To be precise, their role is to carry out all activities in due deadlines at a high level and focus on details, because this is the most important factor in PR. One detail may change everything. We also try to be proactive in terms of management, to ensure that the right person is in the right place.

-What about periods when you act as a mentor or conduct trainings for colleagues; What personal features are required in similar situations?

-I frequently act as a mentor and I also hold trainings. I think it is important to be a Role Model in these cases.

June 5, 2017 #195

BANK

9

TBC Offers Innovative Online Tools to Business

I

f you have a business and don’t know what the advantage of your rival is compared to you, if you want to find out more about your shares and position at the market, you won’t have to work so hard anymore. TBC created a business map for you.

The project which TBC implemented along with Revenue Service will be available for not only business people but anyone who is interested to get information to conduct a research. The resource will be useful for researchers, business analysts and students.

Business map is one of the numerous innovations which TBC bank presented and according to the TBC bank General Director, Vakhtang Butskhrikidze, the main task of the bank is to turn into the best digital financial institution not only in Georgia but in the whole region. Butskhrikidze decalres that amount of TBC mobile bank and internet users is increasing intensively and he thinks it’s revolutionary to have increased online sales up to 48%. There will be even more innovations in the future and the next new product will be presented in autumn.

Depute Director of TBC bank, Nika Kurdiani explains that business map was based on the information Revenue Service revealed and believes the program will become an important source of information for startupers. He

thinks that Georgia should become a country of startups and many new ideas should be turned into reality.

“TBC bank continues implementation of digital strategy which aims to create innovative services, comfortable environment and spare time for its customers. TBC bank wants to be the best partner for business. “- declares Kurdiani and explains for business that business map will enable business to research what are the circumstances in the industry they are interested in, even according to geographical location.They can compare amount of staff members, expenses, income, salaries to the same business fields not only locally but on the scale of the whole country.

Information will be presented graphically and easily perceivable.

Minister of Finance, Dimitri Kumisshvili believes that the implementation of the project in private and public sector is the best practice. He talks about the example of Estonia which managed to create a useful product for business by opening public information.

As for saving time and energy, legal person can open an account in TBC from the distance, without having to go to the bank. “Even though we have nicely designed buildings, this innovative offer changes the reality dramatically and customers can use a concrete

service from home.

The head of the bank explains that using service is very simple and takes only few minutes. Customer can fill in the claim on the webstie www.tbcbank.com.ge and after answering few questions online, client automatically registers on internet bank and turn SMS service. If customer wants, he or she can order business card.

Project has been prepared with the active collaboration of National Bank and Revenue Service.

If internetcommunication is not flexible for you, bank took care of it as well and established the service t0 open account remotely.

Any legal person can call the centre and fill in the application and the documents will be brought from TBC bank to their residence.

The ones who are interested in business can get necessary practical instrument on the webpage www.tbcbusiness.ge.It is available since 2013 and has more than a million users.

From now on, it will have interesting news section where articles, blogs, videos and interesting trends in business and economics will be available.

Renewed webpage will include educational

resources which will be useful for startups.

There will be information about business plan, budget, money or finance management, human resource management, making agreements, marketing and etc.

The bank leadership is satisfied with partners’ cooperation. In the establishment of innovative products, different financial or marketing group participated. There are PWC, ACT, ADD, BDO, EY, Livingstone among them. Revenue Service, National Bank and National Agency of Public Register were involved from public organizations. Without collaboration with these institutions, it would be impossible to implement the project.

Livingstone, which appeared on the market with the support of TBC bank and nowadays it is a successful digital marketing and advertisement company. Company CEO, Vakhtang Vakhtangishvili recalls how he started his business. His company is already very successful. He declares that TBC offers for startupers are very important. Bank innovative products will help them to make decisions about purchasing real estate, where to buy property or what other alternative can be.

10

BUSINESS

June 5, 2017 #195

Keti Bochorishvili Appointed As Executive Director of Anaklia City

Innovative Website Assisting you to Get Hired There are certain difficulties finding professionals for different fields.

However, it is even harder to find qualified people for very specific fields. Innovative website profix. ge handled this issue for its users.

It was launched few months ago and it makes it easier for physical person to find professionals from different fields. There are already up to 700 professionals registered at the website. Businesscontract held an interview with one of the founders and financial director of profix.ge, Irakli Gulua.

“We offer the largest and the most diverse base of professionals in Georgia which includes people from fields such as Japanese teachers, paragliding pilot and etc. After receiving service, there is an evaluation platform to rank services according to 10 points system.

Our target group is very large. Practically, every family who has an access to the internet is our potential customer. There are no limitations and no age limit either. We can compare it to freelancing, but in the virtual space. Professionals can register in their category. If they reveal more information about themselves, it is more likely that they will be selected by customers.

Deputy Economy Minister Keti Bochorishvili has quited the position and moved to private sector. Keti Bochorishvili has confirmed the information to Business Course.

She will continue working as an executive director for Anaklia City, the company founded by TBC Bank and Konti Group.

“Anaklia City project calls for developing a business city by arranging a special economic zone near the seaport. This will be a city of the tomorrow with maximally integrated modern technologies and ecologically clean environment based on the principles of a smart town”, Bochorishvili said.

I have worked in various directions of Ministry of Economy for 7 years and the new direction is very interesting for me, Keti Bochorishvili said.

“I believe I am able to make much contribution to the state economy development through implementation of this large-scale project”, Keti Bochorishvili said.

Quartz Georgian Natural Cosmetics –Startup of Mother and Daughter Quartz-Natural Cosmetics is a joint startup of natural cosmetics which belongs to mother and daughter Tamar Kvartskhava and Keto Baratashvili. Tamar who is a pharmacy technician is completely in charge of cream making process.

As for marketing and selling the production, her daughter Keto decides how to deliver the product to the customers.

Keto: In the beginning, my mother used to make face creams for herself, later she started to give it away as a gift. Since the demand for the cream increased, we decided to pack the product and name it. At first, we created facebook page and started selling creams. Soon, we had a regular and satisfied customers.

Tamari: Before I started producing creams, I used to study in Germany and Switzerland in natural cosmetics companies. In Switzerland, they couldn’t remember my family name and they addressed me with Quartz which means mineral. We took this name from my last name but we can also say that our product is as natural as a mineral.

Keto:We offer high quality and organic products to our customers.

We have lipsticks, face oils, face creams. In the future, we are going to add hand cream and other products. We have a small stand at City Mall on Kavtaradze, in Theraphy House, Shop Sunflower and in East Point and Gldani City Mall.

The New 4-star Apart Hotel MX Opened in Tbilisi A new high standard hotel has been opened in Tbilisi. It was opened

by Director of National Tourism Administration Mr. Giorgi Chogovadze. Representatives of the tourist companies were invited at the opening. The hotel is named Apart Hotel MX. The 4-star hotel has 10 hotel rooms and 6 two-bedroom apartments. Hotel has 50 people conference hall and large cafe-terrace. The project was implemented with direct foreign investment. The amount of investment amounted to 867,000 dollars. This is the fifthconstructed hotel for Management Company in Tbilisi, which will be the highest standard among projects implemented so far. The hotel has 16 employees. The hotel is located 8 minutes away from the airport, 7 minutes’ drive from Freedom Square and 300 meters from metro at Javakheti 24.

Pazzy Food Truck- Joint Startup of Two Georgian Families Pazzy is a family startup of two couples- Keto Todria and Ako Gogiashvili, Ninutsa Mizandaria and Tornike Todria. They decided to launch this startup because of lack of quality food at the festivals or in the streets where young people usually gather. The target group for Pazzy is people who like entertainment, music, sport and are socially active. Ninutsa Mizandaria talks about successful communication strategy with customers in the interview with Marketer. We came up with an idea 4-5 years ago,when we used to study and live in the US. Food trucks are very popular there and they offer wide range of delicious dishes to customers. We started working on implementing our idea in 2016 and realized that considering our experiences and finances, we were able turn our idea into reality.

Did you define geographical location for Pazzy and what challenges have you faced so far?

After making decision, we started researching the market first. We observed streets, talked to the city government. The problem was that Tbilisi city government didn’t have a legal right to allow us to start our business.

Therefore, working in Tbilisi streets wasn’t a choice.This was quite a big obstacle for us. In the beginning, we decided to work on private territories. We also got support from Lisi development and startip market who helped us make our first steps.

What kind of menu do you have and where are you products made?

Pazzy doesn’t sell prepared food, therefore, professional cooks start making food only after customers order them. All the norms of security and hygiene is considered in the food truck. At the moment, we have chicken sandwich, hot dog with special sauce, veggie sandwich, French fries in the menu. We also offer cold and hot drinks: Milkshakes, lemonades, fresh orange juice,fresh beer, coffee and etc. Pazzy menu is constantly changing.

How can customers contact you, is it possible to choose any place and get Pazzy’s service there?

It is possible to contact us on facebook page or email pazzyfoods@gmail.com. pazzy needs electricity,therefore, it is not possible to take it to countryside. If electricity is available, pazzy can serve at different events.

Master Classes Given by Samoan and Argentinian Rugby Players in the Frame of “Get into Rugby Festival” In the frame of the festival Natakhtati Lemonade Bowl, young participants received master classes from Samoan and Argentinian team members.

On the 1st of June, in Rugby training center, festival’s final stage participants training has been arranged. Master classes were given by Samoan and Argentinian guests in the frame of rugby championship for youngsters.

In the end, exhibition game took place between schools.

“We have a really awesome event. Samoan National Team and Argentinian team members played with Georgian youngsters and gave them master

classes. Everyone is happy about this friendly meeting” – declared Europe Manager Jose Miguel Gorrotxategui.

“The presentation of the “Involve in Rugby” was held in autumn 2016 and as a result, Natakhtari Lemonade Bowl Festival was launched. It is quite significant project which is supported by Natakhtari and recommended and made by European Rugby standards. It is an unique chance for youngsters. The winner of the festival will participate in the same event in Spain this autumn”- declared Gocha Svanidze, president of Georgian Rugby Union.

June 5, 2017 #195

PUBLICITY

11

12

PUBLICITY

June 5, 2017 #195

June 5, 2017 #195

WORLD

13

EU announces EUR 22 million grant schemes in Armenia over two last years

Russia lifts travel restrictions on Turkish nationals Russian President Vladimir Putin has signed a decree, removing some economic sanctions against Turkey; the Kremlin’s press service announced on Wednesday.

The order lifts restrictions on the hiring of Turkish nationals and the operation of Turkish companies in Russia. It also expands the list of categories of Turkish citizens entitled to visa-free travel to Russia.

Diplomats and their families; pilots and crew members of aircraft, as well as Turkish nationals coming to Russia on short-term business trips, will no longer need a visa.

Moscow imposed economic sanctions against Turkey in 2015, following the downing of a Russian jet by the Turkish Air Force in Syria.

In response, Turkey introduced a 130 percent tariff on Russian grain.

After Ankara’s apology last year, Russia initiated a partial lifting of the embargo on Turkish food products, including onions, cauliflower, broccoli and some other vegetables. President Putin, however, said Russia would not import Turkish tomatoes, as local farmers have taken out significant loans to boost domestic production and construct greenhouse facilities, and lifting restrictions could hurt them.

Since 2015, the European Union has announced a number of grant schemes for Armenian NGOs, totalling EUR21,822,000.

“Some of the projects within the frames of these calls have already ended, others are still ongoing, while the remaining is currently in the evaluation orcontracting phases,” The EU Delegation to Armenia informed Mediamax, adding that the amount of funding had increased in comparison to previous years.

The EU does not provide a specific amount of funding to NGOs per year, preferring implementation of multi-annual funding.

“Over the past 4 years, the EU has supported more than 150 NGOs in implemention of projects, aimed at alleviating poverty, supporting businesses and advancing human rights. Owing to these projects, 4000 disabled children have gained access to health care and education, 2000 victims of domestic and gender-based violence have been

Iran Discovers New Oil Field

Turkey Seeks to Build an Alternative Road to Baku-Tbilisi-Kars Railway Transportation, Maritime Affairs and Communications Minister Ahmet Arslan said that the government wants to create an alternative to the Baku-Tbilisi-Kars Railway Project with a line that will run through Iğdır-DilucuNakhchivan and finally to Iran via Kars.

Speaking to Anadolu Agency regarding the Kars-Iğdır-Dilucu-Nakhchivan Railway Project, a branch of the Baku-Tbilisi-Kars Railway Project, whose construction has reached the final stages in the eastern Anatolia region, Minister Arslan explained that if a train departs from Edirne, arrives in Kars and then uses the Baku-Tbilisi-Kars Railway, it will go to Kazakhstan, Turkmenistan and then to the north of China.

“We also want to create an alternative, a line that will reach Iğdır-Dilucu-Nakhchivan and therefore Iran through Kars,” he continued, suggesting that this will also complete a corridor through which the freight movement going eastward through Turkey can reach Iran, then Pakistan, India, and the south of China. “This is why we take this project very seriously,” Arslan added.

Arslan pointed out that all the projects carried out between the east and the west of Turkey are complementary to the middle corridor in general, listing the Yavuz Sultan Selim Bridge, the other two bridges, Eurasia, Marmaray and the ongoing Çanakkale 1915 Bridge projects.

Stressing that this middle corridor can bring the freight movement from Europe to the Middle East through Turkey, Arslan said, “That is why we want to create alternatives in addition to Baku-Tbilisi-Kars Railway while completing the middle corridor.

provided with assistance, while 90 women have been elected to local governments after attending trainings,” EU Delegation to Armenia remarks.

EU has several new flagship projects for building the capacity of civil society in Armenia. “Some of the grants are aimed more on incubating social enterprises and supporting business environment in Armenia, though building capacity of civil society is also important,” EU Delegation to Armenia notes.

The implemented projects are aimed at building capacity of civil society in different sectors through trainings and wide implementation of Armenian Diaspora’sexpertise.

“Armenian General Benevolent Union (AGBU) is currently realizing a similar program, which envisions increasing the engagement of Diaspora in Armenia by using together4armenia.am platform,” EU Delegation notes.

Deep gas to be extracted in 2026 from Azerbaijan’s ACG field Production of deep gas (deep reservoirlying under the oil formation) at the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields will start in 2026, said Azerbaijan’s Energy Minister Natig Aliyev. He made the remarks while addressing the 24th International Caspian Oil & Gas Exhibition and Conference 2017 in Baku June 1.

According to him, Azerbaijan plans to produce up to 44.5 billion cubic meters of gas until 2020. “The main increase in gas production is expected thanks to the second stage of development of the Shah Deniz field,” said Aliyev.

He noted that according to forecasts for 2017, gas output in Azerbaijan is expected to be 28.5 billion cubic meters, 27.7 billion cubic meters – in 2018, 32.8 billion cubic meters – in 2019 and 44.5 billion cubic meters – in 2020.

Gas output by Azerbaijan’s state oil company SOCAR will be stable – at a level of 6.4 billion cubic meters per year, said the minister adding that the output of associated gas from the ACG block is forecasted at a level of 12 billion cubic meters per year.

“In 2020-2021, it is planned to start gas output from the Absheron field, and in 2026 deep gas output may be started at the Azeri-Chirag-Gunashli block. Mean-

while, the possibility of development of the Nakhchivan, Shafag-Asiman and Karabakh fields in the near future is currently being viewed,” added Aliyev.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas. A contract for development of the field was signed on June 4, 1996.

Shah Deniz Stage 2 will add a further 16 billion cubic meters per year of gas production to the approximately 9 billion cubic meters per year produced by Shah Deniz Stage 1. A contract for development of ACG block of oil and gas fields was signed in 1994.

The shareholders in the project are BP (operator of the Azeri-Chirag-Guneshli, 35.78 percent), Chevron (11.28 percent), Inpex (10.96 percent), AzACG (11.65 percent), Statoil (8.55 percent), Exxon (8 percent), TPAO (6.75 percent), Itochu (4.3 percent) and ONGC (2.72 percent).

Seismological surveys of parts of the Central Kavir desert in Iran have revealed a new oil deposit, local media reported, citing an unnamed source. The source did not reveal any details about the find, including estimated reserves, but instead spoke about agreements struck with Petrovietnam and Italy’s Edison, which would see the two foreign companies resume their exploration at two other oil blocks, Danan and Dayyer.

The Danan oil field, with reserves estimated at 3.738 billion barrels and daily output at 8,000 barrels, was tendered along with eight other oil fields by the Iranian Central Oil Fields Company.

The Dayyer offshore oil field was auctioned back in 2007, and Edison struck a deal with the National Iranian Oil Company to explore the deposit in the following year. The US$107-million contract, however, was suspended by NIOC in 2012, with the state company accusing Edison of repeated delay sand failure to stick to its contractual obligations.

Iran is currently producing 3.8 million barrels of crude daily and its output will remain at this level in spite of OPEC’s agreement to extend a production cut until March 2018. In the initial OPEC deal, Iran was allowed to slightly raise output and keep it capped at 3.797 million bpd.

Four months into the deal in which all others – except for exempt Libya and Nigeria – had to cut, the Islamic Republic has been sticking to that production ceiling, OPEC secondary-sources data show.

Now, Iran wants to raise its output to 5 million bpd over the next four years, to which end it will need major assistance from foreign oil companies. Tehran is optimistic, however, despite lingering U.S. sanctions that are making a lot of energy industry players wary of entering Iran.

14

PUBLICITY

June 5, 2017 #195

June 5, 2017 #195

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

15

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

16

PUBLICITY

June 5, 2017 #195