Caucasus Business Week #282

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caucasus May 13, 2019 - www.cbw.ge

#282

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Boosting Spatial, Social and Economic Mobility Crucial for achieving Shared Prosperity in the South Caucasus, says the World Bank The notable improvements that the people of the South Caucasus have experienced are reflected in better living standards that allowed poverty to be reduced by half in the 12 years between 2005 and 2017.

Keti Aleksidze to continue her work at Georgian Post Former head of "Georgian Airports Association" will continue to work in "Georgian Post".

Kakha Kaladze presented New Green Color Municipal Buses The Mayor of Tbilisi, Kakha Kaladze presented 10-meter municipal buses of MAN brand.

EBRD forecasts Georgia's GDP Growth of 4.5% this Year EBRD has issued a new forecast for Georgia's GDP growth. The bank forecasts a 4.5% increase in Georgia's economic output in 2019.

Georgian International Arbitration Center (GIAC) held Meeting to Promote Professional Skills Development in Arbitration Sector The event was organized by the International Arbitration Center (GIAC), where an important part of the arbitration proceedings - procedural conference, procedural issues resolution and their results were discussed.

Selim Cakir will be a New Representative of Monetary Fund in Georgia A new representative of the International Monetary Fund (IMF) in Georgia will be Selim Cakir, who will replace the acting representative François Pesco at the end of June.

Georgia launched Electricity Exports to Turkey and Russia According to Electricity System Commercial Operator (ESCO), Georgia launched electricity exports to Turkey and Russia in May, 2.78 million kw/h a day – to Turkey and 2.61 million kw/h to Russia.

EBRD named TBC Bank most Active International Financing Bank in Georgia The European Bank for Reconstruction and Development (EBRD) has once again named TBC Bank once again the most active bank in Georgia in terms of international trade financing. TBC Banks has received mentioned award for the fifth time.

Natia Turnava and Sheikh Mohamed Bin Khalifa Al Khalifa signed Memorandum of Understanding A Memorandum of Understanding between the ministry of Economy and Sustainable Development and the RPM W.L.L. was signed by the Minister Natia Turnava and Sheikh Mohamed Bin Khalifa Al Khalifa.

American Wine Professionals are exploring Georgian Wines in Kakheti American sommeliers and wine importers are exploring Georgian wines in Kakheti. The group of wine professionals is headed by Julie Peterson, the Director of the National Wine Agency contractor marketing company “Marc Energy”.

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: caucasianbusiness@gmail.com Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;

Natakhtari Fund wins at CSR Award 2019 With the joint initiative of the Corporate Social Responsibility Club and UN Global Compact Georgian Branch, the Corporate Social Responsibility Award 2019 contest was held in Georgia for the second time. The project ‘Care about the Future’, implemented by Natakhtari Company and NGO Our Home Georgia was named best in the category ‘Partnership for Sustainable Development.’

This year, the contest brought together 53 projects of companies operating in Georgia in the following categories: High-Quality Education; Gender Equality; Proper Working Environ and Economic Growth, Sustainable Cities and Settlements, Partnership for Sustainable Development, and SDG Pioneer. The winners were chosen by a multisector jury of local and international judges.

The contest aims to boost the involvement of the business sector in terms of the promotion of corporate social responsibility and introducing sustainable development to the daily agenda.

“The aim of the Natakhtari Fund is to substantially and sustainably change the life of our beneficiaries for the better,” notes Nino Surmava, the Brand Manager of Natakhtari Lemonade. “We knew at the beginning that we would see results within several years, and this award is proof that our expectations were right: we have achieved results!

The mechanism (caring for adolescents), worked out by the Natakhtari Company and Our Home Georgia, has proved a success, proven by the fact that more than 270 youngsters have been able to receive a professional education, while over 300 have found jobs, since the outset.

“This is our second year holding an advocacy campaign devoted to the better involvement of government services in terms of planning the life of vulnerable adolescents after they reach the age of 18,” Surmava continued. “We want the responsibility for solving this problem to be shared by the government, as we believe that empowerment of vulnerable children and their full integration into society is good for each of us. Many thanks to Our Home Georgia for their collaboration and also thanks to the organizers of the competition, as well as the jury, which named our project the best in the category of Partnership for Sustainable Development. This is a great motivation not only for us, but also for other companies.”

The award ceremony was attended by representatives of the business sector, as well as those of the government, international organizations and civic societies. Carl Hartzell, Ambassador of the EU to Georgia, Luisa Winton, Permanent Representative of the UNDP to Georgia, Molly Lien, Head of Development Cooperation at the Embassy of Sweden, Mzia Giorgobiani, Deputy Minister of Regional Development and Infrastructure of Georgia, Irakli Lekvinadze, Business Ombudsman, Nino Zambakhidze, Head of Georgian Farmers’ Associtation and Alexander Revia, Chairman of Georgian Agency of Public-Private Partnership took to the stage and addressed the audience. The CSR Award 2019 was supported by the Swedish government.

The Natakhtari Fund has been helping vulnerable adolescents since 2011. Money is annually collected from November to February. 841,835 GEL was

3 May 13, 2019 #282

raised in the Fund during this time, used to prepare more than 500 youngsters for an independent life, including psychologist consultations, classes in academic subjects, certificates of professional education and driving licenses, purchasing the materials needed for the profession, and scholarships (tenancy fee, nutrition, transportation). Over 300 beneficiaries of the Fund have been employed, whereas more than 270 youngsters have acquired professional education.

The finances from the Natakhtari Fund are allocated specifically according to the needs of each beneficiary. The project is being carried out by the Our Home Georgia Association with the support and blessings of the Georgian Patriarch. The transparency of finances is approved by the international audit company PricewaterHouse Cooper.

The Corporate Social Responsibility Award was first held in Georgia in 2018. The Natakhtari Company also succeeded that year in the category The Best Project in the Environment Protection Direction.

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s k n a B l a i c r e m m o C Profits of Shrink

s k n a B l a i c r e m m o C n e e t f i s t fi o Ten out of F r P g n i n i l ec D e v a h o t d Foun ues growth. pace of reven e profit As a result, th f commercial growth rate o lined. banks has dec

on GEL in paid 123 milli s to the state profits as taxe 18, the total budget. In 20 ommercial revenues of c

the 1Q19 According to ten y ancial report, it n il fi b ta fi ro p f he rate o banks out of l ia rc Q1 2018 e m g m o in c k an b n 19 ia 20 ollars) 1 e rg v Q o a e h G . to d (Mln USD D n u of the fo ) rs of re la t e ol is L D w D 5 S 1 (Mln. U ning. s ts. In whole, fi mercial Bank ro om p sector is decli C 107.7 g in n li c de cs ti s ti ts ta fi .6 s 98 ro to p s g tor’ Accordin TBC e financial sec onal th ti a N e 1 th 74.8 y 3 b 0 ,2 d 1 e 0 h s ,6 8 li 9 b pu d1 te 73.4 tu ti s ), n o G c B L ia (N BOG 34,712,821 GE n Bank of Georg 2 w 6.2 o d d , e L iv E e c G s re k n a b 2 l 6. ia rc e comm Tera Bank year on year.

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7 a e s y k n n k ra n a B -0.9 y 10% year o rt e ib L year. e sector’s PASHA Bank 13 .

0.6 g same time, th n ti in the ra by 18% e s -1.5 f ro o s th re u w it ro d eg expen Finca Bank In terms of th es. As 3.4 u n 14 e v re k n to a d B do re C -2.6 , compare ts fi ro p t ne rofitability Halyk Bank .7 million 5 h 15 it 233 w a result, the p t rs fi s nk ra d e s a 9 19 -b ia n rg o o ar rate of Ge All Banks ed. GEL, up 600% ye n li c e d s k n n a b t l e ia n rc ’s e k n m e up 4.2 billio com u Ba d rt a a m C s r. k a n e a y b itures . st at Total expend grew by 500% cluding intere ld be noted th u ts in o , fi h L s ro E p It G s k n a b l of tio fits of commercia ank’s net pro with a 79% ra the net profits B , s 8 e k 1 m 0 ly 2 o a c 0 H 0 in in ,0 6 3 l 8,2 ia 2.6 ues constituted 80 ased commerc by 17.87% to nterest reven -b -i d e n ia o n rg n li c o t d e e s n d G a re te g: in er lion GEL, includin EL. Three oth de up 915 mil a G m n o s li k h a 21% ratio. . il n it L a m b E w G 0 0 d e ,0 8 h L 6 is E fin nG rates – 380,8 mercial banks e , up 45 millio d L m a E o c m G th w h ro g it p dw Year on year porting perio ared to 2017 (u p re e m o th t c s re te in fits in 2017 ro p up 13.6%; non t e N . s ). e s % s lo 5.2 unted to tistics, illion GEL. ta s m 0 to 7 expenses amo g 8 in p u rd e o c d % Ac ma EL, up 6.4 mber 2018, ommercial c e c d e e D s a 303,288,000 G in -b , ia ly e rg Geo Nam ks losses on d e mmercial ban iv o year on year; e c c f o re s ts k fi n – a ro b p ts e in of ass illion 00 GEL profits available loss ,0 4 0 ,7 tituted 119 m 6 s % 3 2 n ,0 0 o 1 1 c p u , p L u E , ber 2017, er of 2019 m rt e a c 124,080,000 G e u q D t In rs . fi , L e lt E th G As a resu ar. However, nks received e a y b n l year on year. o ia r a rc e e y m % re m 10 co rofits befo s of illion GEL. re m u 3 it 5 the sector’s p d 1 n f e o p x ts e fi ro the by 13%, to ks increased p s k n a b l taxes declined mmercial ban ia o rc c e 8 1 m 0 m 2 o e c In il h e EL, w mpared to th o 228,468,000 G c , % 8 1 d y te b constitu taxed profits EL. 198,601,000 G

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Mariam Kvrivishvili:

5 May 13, 2019 #282

"70% of Tourists visit Georgia Repeatedly" Dynamics and challenges in the tourism sector. What problems does the field of tourism face? What is the government’s strategy for tourism development, and what novelties does the National Tourism Administration offer to tourism for the coming season?

Mariam Kvrivishvili, head of National Tourism Administration, answers these and other important questions: According to recent statistics, in January-April 2019, more than 2 million tourists visited the country. Prior to talking about a growing tourist inflow and the sector’s challenges, I would like to ask you: You have recently returned from Dubai, where you took part in an international tourism exhibition, and met an influential figures in the United Arab Emirates. What was the result othis, and how important is it for the country to participate in similar forums?

The tourism exhibition in the UAE was very successful. We were happy to see that our private sector showed a lot of interest in this. About 40 Georgia-based travel companies have taken part in the forum, including hotels. Consequently, this was a very good platform to establish new business relations.

-You have met the most influential figure in the UAE’s tourism sector. What benefits should we expect from this meeting?

This person is genuinely the most influential figure in the Emirates, and he supervises such areas as aviation, airports, airlines. He manages two of the world’s two important airlines – Emirates Airline and Fly Dubai, which have frequent flights to Georgia (two flights a day). We had a very important meeting with him and discussed two directions, including the invitation of a new airline to Georgia. We also discussed some very important steps to be taken in the fields of aviation and tourism. These steps are to take the country to an absolutely new level, and different conditions.

You have clear

points of view about the development of our tourism sector. Can you tell us what kind of tourists arrive in Georgia, and what kind of tourists we will host by 2025?

It’s been three months since my appointment at the National Tourism Administration.

After this appointment, I’ve been trying to talk about our strategy everywhere.

We follow one simple principle; our mission is to help our population properly perceive and understand the nature of the tourism business, because this sector becomes important when it makes essential contribution to the economy. The number of tourists matters, as long as tourism business expenses grow. We give preference to the quality of inflows, compared to the quantity of inflows.

How much does one tourist spend in the country, and what are our future expectations?

We expect that 11 million international visitors will visit the country by 2025.

Our goal is that estimates should be based on how much visitors spend.

We expect that 11 million

tourists will spend about 6.7 billion USD by 2025. This is around 100% growth.

Statistics show that revenues depend on seasonal factors. According to this strategy, what should we do to even out revenues for all four seasons?

We have to develop in several directions; first of all, infrastructure. The Ministry of Infrastructure shows special attention to this sector. At the beginning of 2019, the Minister announced a 138 million USD project for towards the development of tourism infrastructure, including the development of major infrastructure projects, municipal roads, the rehabilitation of culture monuments.

As a result, we will attract tourists to those regions, as tourists don’t go there today.

Tourists frequently arrive in Georgia, but they do not spend much money.

What are your plans to reverse this direction?

The resorts that we have today must become all-season resorts. To this end, we should develop more infrastructure, develop the business of tourism.

We just need more accommodation facilities, infrastructure, restaurants, and entertainment facilities. Naturally, these challenges were identified. I am happy we have efficient cooperation with Enterprise Georgia, with the aim of identifying new investment opportunities, and formulate new tourism products. Our objective is to focus on not only our capital city, but we strive to expand tourist inflows to the regions, with all their potential.

In Spain, for instance, the emphasis was moved away from Barcelona. As a result, new directions in tourism arose in Sevilla, the Basque Country, which were previously only culinary destinations.

We do our best to organize a lot of interesting activities with the Basques, including in the realm of cuisine. We want to adapt the culinary academy to the Georgian reality, because our cuisines resemble each other very much.

You talk about highincome tourism, and you place emphasis on attracting as many affluent tourists as possible.

However, it should be noted that there are a lot of challenges, including in terms of WCs. How do you plan to resolve these challenges?

This is one of our most acute challenges, and

this was one of the projects that we undertook in the first 2 months – the identification of problems with WCs. Now, we can openly say that the first part, that is the analytical work, has been completed. We have identified 70 priority locations around the most touristic regions. Now, we are calculating what time and what financial resources are required for the efficient implementation of this project.

Under the aegis of the National Tourism Administration, with the support of a lot of structures, sanitary safety norms are standardized. This challenge cannot be resolved in one day. But the simplest part of the job is done. At this stage, we are developing plans and we believe that all aspects of this will be resolved soon.

The inflow of affluent tourists to the country is growing. The figure doubled in 2018 to 14%. But this isn’t sufficient.

Do you expect the country to reach your 30% goal, as determined by your strategy?

We should be ambitious today, and determine those challenges that we will resolve tomorrow. This is a necessary precondition for achieving ambitious objectives. We have the potential. There are two key paths to achieve this goal. The first component calls for involving other offices in this process, including investment. Affluent tourists pay attention to the quality of accommodations and their services, the quality of shopping, and entertainment opportunities.

This is the direction where our investment should be directed, for both international and domestic platforms.

At the same time, the number of flights should also increase. We are glad that flights will start from 3 UAE cities. This is unprecedented. We will also add new flights from Europe and Asia. It should be noted that tourists from Europe spend a lot of money in this country.

Direct flights are one component for attracting affluent tourists.

What do you plan to develop to take advantage of progress in the region?

We should determine where we have advantages. Naturally, Turkey has made huge progress in terms of the service sector, and they have great experience over several decades. However, we have diversified our products. As a result, according to statistics, 70% of tourists visit Georgia repeatedly. This is reflects very well on our country.

How will you cooperate with existing and potential businesses?

In every way. Access to information, strategic direction, joint cooperation, consulting services. All of us come from business, and we know how important is it to back them.

6 May 13, 2019 #282

Russian Money in Georgia’s Strategic Assets – Power Facilities should remain in Georgian Ownership The news that Russian companies may buy power facilities in was hugely impudent when the United National Movement Georgia caused a new wave of public criticism of the government speculates with Russian capital to get political benefits, even more of Georgia. According to popular opinion, Russia continues to take so as the deal refers to a private company, and the authorities do not control of Georgia’s power sector. have even theoretical relations with this deal.

According to the television program P.S., the Russian state oil The UNM is a political party, which widely liberalized Georgia’s company Rosneft, and related Georgian partners, plan to buy the energy banking, telecommunication, chemical and other strategic Wissol company. Negotiations with Wissol are being carried out by sectors to Russian capital. Consequently, I believe that it is was an an offshore company, Petrocas, a Rosneft subsidiary. Petrocas already impertinence when this political force talks about growing economic owns Georgia’s second biggest network of refueling stations – GULF- dependence on Russia”, Gvidiani noted. as well as the Poti oil terminal. The Wissol company did not confirm In April 2012, then-Prime Minister Vano Merabishvili made a very this deal. Part of the experts assert that this deal, and, in general, interesting statement at the Parliament: “Russian money does not Russian capital in Georgia may bring dire results for the country, even smell” and ‘We welcome any capital to Georgia, including Russian more so the country does not have a concept of economic safety. capital,” Gvidiani added.

Revaz Arveladze, head of the parliament’s Committee for the Sectoral “We know a saying: let your affairs speak about you, and we Economy and Economic Policy asserts that it was not a mistake when see that they have invited Russian companies to all sectors, the previous government sold several major power facilities to Russian and they cooperate with them very comfortably. They have companies. However, he explains that it is better for to Georgia maintain the promoted Russian capital expansion, and today they dare to local ownership of power facilities . give instructions”, Gvidiani noted.

When power plants are sold, threats grow. Lower risks come from the sale of We remind you that the list of Russian companies which distribution companies, because it is a regulatory sector and the investors, in begam operations in the Georgian market under the ruling this case, Russian companies, cannot manipulate their prices. of United National Movement (UNM), is as follows: In response to the question of whether the country has a program of economic safety with real mechanisms to manage similar investments on behalf of Georgia, • Telasi –Inter RAO holds 75%; Arveladze explains that privatization provisions directly oblige investors to use • Mtkvari Energetics – Inter RAO holds 100% facilities only for determined purposes. However, Arveladze explains that, even in • Lukoil Georgia – Lukoil Europe Holdings BV holds this case, the country should show caution.

100%.

As for the sale of power facilities to Russian companies under the ruling United • Water Supply – under the ruling of United National National Movement, Arveladze says: “The point is that, during the privatization Movement (UNM), the water supply systems of process, it is impossible to stipulate that only Russian companies are not allowed.

Tbilisi, Rustavi and Mtskheta, as well as Jinvali HPP It should also be noted that, in the case of TELASI or other power stations, Russian and other power facilities, were transmitted to a companies have not created any problems. Nevertheless, I believe that, even in this Russian company under Russian billionaire Andrey case, Georgia should carry out corresponding preventive measures,” Arveladze said. Rapaport (in 2017, these assets were sold, and today Business law expert Akaki Chargeishvili explains that Georgia should not show the Bank of Georgia Group controls these assets); irritation at talks with opponents.

• GULF (David Kezerashvili sold it to a Russian “I back civilized communications, being reasonable, and we should not be afraid of citizen, Iakobashvili, and the latter sold a 51% stake the enemy. We can also apply use diplomatic language. to Petrocas Energy Limited).

I would not be afraid of Russian capital, and similar inflows, if we consider this • Madneuli – RMG Gold – owned by the Offshore process from a different point of view. Namely, we should meet Russian capital company RICH METALS GROUP under Russian with relevant regulations to prevent such an expansion, or pressure that will bring billionaire Dmitri Troitski and Dmitri Korjiev. negative outcomes”, Chargeishvili said.

• Beeline – Mobitel company appeared on Georgian These regulations will be determined by such legislation, he said. Therefore, the market in 2007 under the name of Beeline. The country should have an overarching conception of economic safety, with real company is part of the Russian Vimpelcom. mechanisms for managing all similar investments on behalf of Georgia,” he • VTB Bank – VTB Bank Georgia (the former United added.

Georgian Bank). 96.81% stake is owned by VTB Bank.

“It wouldn’t be expedient to ban investments because of fears that • Enguri HPP – United National Movement intended to something bad might ever happen”, Chargeishvili noted. sell Enguri HPP to Russia, but this deal failed.

GDP and national production should be protected by anti-dumping • Noth-South Main Gas Pipeline – United National legislation, based on the concept of economic safety. In this case, the Movement planned to sell the gas pipeline, but the deal failed Competition Agency will know which directions show signs of after western partners showed unprecedented pressure. monopolistic tendencies and which do not.

Andria Gvidiani, analyst from the Association of Young Financiers and Businessmen (AYFB) also comments on the issue.

“Information was going around that the Russian Rosneft may buy Wissol . Naturally, destructive politicians and failed civil activists have already made loud statements. Naturally, everybody may be aggressive and protest against Russian companies, including me, and I understand this, but it

7 May 13, 2019 #282

Georgia and the Hydroelectric Power Sector –

No Alternative

Over the past several years, the struggle against hydroelectric power plants became a trend; a reliable and safe form of selfexpression. Furious propaganda by environmentalist organizations is combined with the instinctual phobias of Georgian citizens. As a result, the whole country has joined the struggle against hydroelectric power plants.

There is something rational in this.

The nationwide, total refusal is not related only to the urge to protect nature, even more so because antiHPP citizens actively chop wood.

In this situation, discussions over small and medium hydroelectric power plants and alternative energy, solar and wind energy, have become popular and trendy.

They talk about this issue with such passion that ignorant person will genuinely think that it is possible to build solar and wind power stations instead of hydroelectric power plants, and have a continuous electricity supply and a healthy environment by doing this.

Most remember the 1980s narrative, that we will sell Borjomi, and live very well. The arguments of Green Energy apologists sound similar.

As a rule, in Georgia, loud and bold statements are made about issues we don’t know about.

What does the international experience suggest?? Maybe, green energy dominates the scene worldwide, and only in Georgia does anyone suggest hydroelectric power plants?

Only by the figures: the ratio of wind and solar power vary in different countries – the highest ratio is recorded in New Zealand – 23%, Germany ranks second with 22.3%, Portugal – 22.1%, Great Britain – 18%, Romania – 14.4%, Netherlands – 10.9%, Belgium – 10.9%, Sweden – 10.5%, Chile – 9%, Turkey – 9%.

Also, the classification of renewable energy includes the hydroelectric power industry, and this is very important factor with real consequences. For instance, according to the official indicators, the ratio of renewable energy in Norway’s power industry makes up 99%. This fact may give rise to erroneous assumptions, and, therefore, we should specify that 100% of this renewable energy is generated by hydroelectric power plants.

Hydroelectric Power Generation constitutes 99% of the power system of one of the world’s most ecologically clean countries.

At the same time, the ratio of power produced by a more hazardous power sector, such as nuclear power, grows around the world. The ratio of nuclear power generation in Belgium makes up 51%, Britain – 20%, Sweden – 40%, France – 70%, Switzerland – 44%.

Thus, in the majority of developed countries, even today, the ratio of power generation by the most dangerous form of power generation surpasses the safest sector.

However, these figures are superficial, and they do not fully reflect all the difficulties accompanying green energy.

To make a real analysis, we should see what happens in Germany, one of the most successful European countries in terms of the development of alternative energy.

The point is, solar and wind power sector are mostly subsidized, and this sector in Germany is almost entirely subsidized by the state. Over the past 5 years, the government of Germany spends 32 billion EUR on solar and wind energy. By 2025, the German government’s contribution to the construction and service of green energy facilities will reach 580

billion USD. At the same time, the government of Germany has not kept its promise, and has not halted nuclear power stations. Moreover, the country could not stop steam power plants, either.

Green energy has caused discontent for villagers in Germany – one solar station occupies 450 times more space than a nuclear power plant, and this factor creates serious problems.

Therefore, hopes for the production of cheaper solar batteries and wind generators have fallen short.

Regrettably, today, solar and wind power are the prerogative of rich countries, which can afford to invest billions in this field, but in reality, they maintain nuclear, gas, coal, and hydro power generation sectors, which constitute 20% of global power generation.

Georgia keeps living in illusions, listening to incompetent populists, and cannot realize that poor countries will never do what even rich countries Germany cannot fulfill.

Power systems based on solar and wind energy are a dream that will never come true. This is a fantasy, just like living on exporting Borjomi.

If the current situation continues, everything will end in a simple way – hydroelectric power plants will not built.

The villages where the HPP projects are planned will be depopulated, like many other villages.

In the end, the country’s electricity imports will continue to grow, and become dependent on the Kremlin.

Maybe this is the very objective of the so-called environmentalists?!

Blog by Tengiz Ablotia

8 May 13, 2019 #282

Tamar Bezhashvili: "Small Marketing Activities can lead a Company towards a Larger Purpose" Interview with BIA - Business Information Agency Marketing Manager, Tamar Bezhashvili.

Tell us about how you got into the field of marketing, and what factors played an important role in choosing this profession?

Marketing was my conscious choice. I wanted to do something that I was actually interested in, so I was constantly in the process of searching, and what I was interested in several times during my studies.

I think I made the right choice, because I never lose my enthusiasm, and I like the work process.

In regards to technological changes, what challenges do you face as the head of a marketing service?

The main challenge as regards to technological changes is that processes are developing very rapidly, and a specialist should catch up with that. Technologies are improved every day, and marketers follow the trends. In general, I think, such developments make the process simpler. The more tools are introduced, the easier it is to research, respond to events on time, and more importantly, it is easier for marketers to reach a targeted segment with the right channels, and get feedback. However, this is also a challenge because, through social media or other instruments, active communication is available for more and more companies. Therefore, it is important that information in distinguished and visible in the background of such flow.

What has changed in the field in the last 5 years, and what changes are expected?

The most interesting thing for me is that the consumer's opinion has become more important. People slowly realize that their business reputation is dependant on the customer’s opinion. I think this is a positive phenomenon, and a good opportunity for companies to become more customer-oriented. Competition is growing, and I think that, in the future, customers will choose those companies that have corporate social responsibility, and care for the interests of the public.

What important features should a marketing manager focus on, and what are their roles in an organization?

Most importantly, both employees and customers should understand the values of the company. I try to maximize each marketing activity based on our values. I think the main role of a marketing manager is to help promote the company the right direction. The main thing is to see the whole picture, and realize how small actions can

lead to a bigger purpose.

One word that describes your job.

How do you help organizations catch up with new trends and innovations in the field of marketing?

Challenge is that word. I can’t imagine development without challenges.

Based on Bia’s specific situation, various programs and trainings are available to help employees in the work process starting from the first day. To ensure that an organization is not behind on new trends, first of all, the news must be accessible for employees. That's why Bia Marketing Team, as well as other departments work in coordination, and through local and international partners we try to introduce all the new, innovative approaches that are available.

What’s your organisation’s business model, in terms of marketing?

The main goal of Bia is to help business growth and development. Consequently, marketing activities are completely focused on companies and their needs. Products are constantly evolving, and are more suited to the customer. It is important for us to create a fair value for businesses, in order to achieve success both locally and on international markets.

The most useful advice you’ve ever received in life?

I’ve often been told to do business that sounds incredible. This principle works well as for personal, as well as company development.

Think of a person who inspires you professionally.

It’s hard to name one. Often, inspiration can be the ultimate result. When you see a successful project, you realize how much work it took until it was successfully implemented. The product is mostly created by a marketing team, which is always a collective job, so the source of inspiration is often a motivated team.

9 May 13, 2019 #282

Business News

Tsikolia launches New Series of Watches

singles, will visit Georgia and will perform on August 6, 2019 at Black Sea Arena.

Tsikolia Watches launches a new series of women watches. This will be an accessory with the smallest mechanism of the brand. Instead of the name of the company, the Georgian letter - "C" will be drawn, distinguished by other models.

Pirosmani’s Digital Wardrobe

Digital Agency Redberry attracted 3.2 Million USD Investment from Georgian Capital Leading digital marketing agency ''Redberry'' attracted 3.2 million USD investment from Georgian Capital. Agency will use the attracted investment to integrate with clients more and transformation.

New Youth Platform to enable holding Youth Festivals throughout Country In the nearest future, we will create a new youth platform to enable to hold youth festivals throughout the country, Georgian Prime Minister Mamuka Bakhtadze stated in his speech at the Student Festival.

Pirosmani’s works and graphic design were jointly introduced as part of the project – Pirosmani in Digital Space. The project calls for popularizing the artist among young people. Graphic designer Tatia Koberidze has developed digital version of the wardrobe of garments, due to the works of Pirosmani.

26 Million Bottles of Wine exported from Georgia in January-April In January-April 2019, 26 million bottles (0,75l) of wine has been exported to 38 countries worldwide, that is 4% higher than the similar data of 2018.

Exported wine income amounted to 63,2 USD, that is 7% higher than the data of the previous year.

Jessie J to perform at Black Sea Arena

Marriott International Officially enters Home Rental Market Marriott International announced Homes & Villas by Marriott International, a home rental initiative offering 2,000 premium and luxury homes located in over 100 destinations throughout the United States, Europe, the Caribbean and Latin America.

112 and Georgian Railway signed a Memorandum A Memorandum of Cooperation was signed between the Urgent Assistance Operations Center "112" and "Georgian Railway".

The famous British performer Jessie J, who has sold 3 million albums worldwide and 20 million

New Eco-Tourism Infrastructure at Okatse Waterfall to attract more Tourists New eco-tourism infrastructure at Okatse Waterfall will triple the number of tourists visiting this most beautiful destination" stated Mamuka Bakhtadze, Prime Minister of Georgia when visiting Kinchkha Village today to view the newly constructed Visitors Centre and tourism infrastructure.

First Local Festival of Georgian Tea Producers in Ozurgeti More than twenty Georgian tea producers took part in the first edition of a local Tea Festival, hosted by the city of Ozurgeti on 5 May 2019.

Bank of Georgia introduces New Internet Bank Bank of Georgia has introduced a new, simple and modern-style internetbank platform. The concept was developed after 600 meetings and 7000 email communications.

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The Poorest and Richest in Europe – What about Georgia?

The Poorest and Richest in Europe – What about Georgia?

According to Eurostat, there are more than 118 million poor residents in the 28 countries of the EU; that is 23.7% of all residents. Bulgaria ranks first in the number of poor citizens, with 38.9%.

Almost the same statistics is reported in Romania, where the poor constitute 35.4% of the total population. The figure makes up 34.85% in Greece, 29.6% in Latvia, 28.9% in Lithuania, 28.2% in Italy, 27.9% in Croatia, 26.3% in Spain, and 25.2% in Hungary.

The ratio of the poor exceeds 20% in countries such as Estonia, Ireland, Cyprus, Luxemburg, Portugal, Great Britain and Belgium.

According to Eurostat, the lowest figure is recorded

in Iceland – 12.2% and the Czech Republic – 12.2%.

Good indicators are reported in Finland – 15.7%, Norway – 16.1%, Slovakia – 16.3%, Netherlands – 17%, Slovenia -17.1%, France – 17.1%, Denmark – 17.2%, Sweden – 17.7%, Switzerland – 17.8%, Austria – 18%, Germany – 19%, Malta – 19.2% and Poland -19.5%.

According to the Eurostat’s report, 8.1% of EU residents live below the poverty line. It is interesting that, under the EU’s standards, a person is considered to be below the poverty line if he/she does not have resources to take even a weeklong vacation a year, cannot afford to buy meat,such as fish or ham,from time to time, or cannot buy a washing machine, cellular phone and TV set.

The lowest quantity of people below poverty line is recorded in Sweden – only 0.7%. The figure was at 2% in Luxemburg.

A comparatively better situation is reported in Finland – 2.2%. Almost the same indicator is registered in Netherlands – 2.6%.

According to the report, Bulgaria ranks first in number of citizens below the poverty line, with 34.7%. A difficult situation is recorded in Greece, too- 22% and Romania – 22.7%.

According to Vivismaps indicators, Luxemburg is reported as among the richest countries of the EU, where the annual income per capita makes up 106,304 USD. The list of Europe’s top 10 richest countries are as follows:

BULGARIA RANKS FIRST IN THE NUMBER OF

1. Luxemburg ($106,374) 2. Ireland ($75,538) 3. Norway ($71,831) 4. Switzerland ($61,422) 5. San Marino ($59,466) 6. Netherlands ($53,635) 7. Iceland ($51,842) 8. Sweden ($51,475) 9 Germany ($50,425) 10. Denmark ($49,883) It is interesting that the poorest people among the poor are reported in Georgia and Romania. According to the 2017 report by World Bank (WB), 5% of residents in Georgia spent only about 1.90 USD a day. Similarly, this category exceeds 5.7% in Romania. It should be noted that this indicator makes up 0.1% in Ukraine, while this country is poorer than Georgia in terms of per capita income.

We remind you that, according to the 2017 report by Geostat, the ratio of citizens below the poverty line is 21.9%.

According to Vividmaps, Moldova is the poorest country in Europe.

Georgia ranks fifth in the indicator, and has a better indicator than only Kosovo, Armenia, Ukraine and Moldova.

Europe’s top 10 poorest countries due to solvency parity per capita are as follows: 1. Moldova ($5,661) 2. Ukraine ($8,713) 3. Armenia ($9,456) 4. Kosovo ($10,515) 5. Georgia ($10,747) 6. Albania ($12,507) 7. Bosnia ($12,724) 8. Macedonia ($14,914) 9. Serbia ($15,000) 10. Azerbaijan ($17,492

POOR CITIZENS, WITH 38.9%.

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