Caucasus Business Week #285

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WEEK

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GEL Faces Historical Plunge

Summer Resort Season 2019 – Challenges and Expectations

Brim Tbilisi, First Solar Powered Hotel opened in Tbilisi

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Electricity in Figures – Georgia and the World

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Self-employment and Georgia

June 3, 2019 - www.cbw.ge

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Mamuka Bakhtadze: Kakheti has Potential to enable all Local Residents Feel Economic Progress in their Own Homes Kakheti has the potential to enable all local residents feel economic progress in their own homes, Georgian Prime Minister Mamuka Bakhtadze stated in his speech at the International Investment Forum Kakheti 2019.

Investment Value of New Projects in Adjara reached 1 Billion GEL Investment value of new projects of Adjara has reached 1 billion GEL said the head of Adjara government, Tornike Rizhvadze.

Commercial Banks’ Assets amounted to 40 Billion GEL

Economy Minister: Prior Permission for Poti Deepwater Seaport Construction annulled Minister of Economy of Georgia Natia Turnava has released her first comments on the prior permission issued for Poti deepwater seaport construction.

New Enterprise opened with Support of EBRD in Batumi Chairman of Adjara Autonomous Republic together with Regional Director of the European Bank for Reconstruction and Development (EBRD) Katarina Björlin Hansen visited "Nova" Ltd and opened a renewed enterprise.

World Bank approves $62 million loan to Georgia for the Energy Supply Reliability and Financial Recovery Project The World Bank Board of Executive Directors approved today a US$ 62 million loan to Georgia for the Energy Supply Reliability and Financial Recovery Project, financed by the International Bank for Reconstruction and Development (IBRD).

Microsoft helps transform Education System in Georgia The Georgian Ministry of Education, Science, Culture and Sports has signed an Education Transformation Agreement with Microsoft. This confirmed the strategic partnership in the process of Digital Transformation between the two sides.

As of May 1, 2019, 14 commercial banks operate in Georgia, 14 of them with foreign capital participation.

Bank of Georgia wins the Best Custodian Bank Award from Global Finance Global Finance magazine considered market researches, expert sources, analyzed the information given by Banks and customers. Taking above-mentioned factors into account, Global Finance has revealed financial institutes, which ensure the best service in the local markets and regions.

Tbilisi Square opens in Buenos Aires In honor of Georgia’s Independence Dayof Georgia, a square named after Tbilisi opened in Buenos Aires, the Ministry of Foreign Affairs announced.

Organic Melon grown in Village Tsaishi For the first time, the organic melon culture was grown in the village of Tsaishi, Samegrelo Region.

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;

Ukrainian low-cost SkyUp Airlines starts to operate at Kutaisi International Airport Ukrainian lawcost airlines SkyUp Airlines is launching flights to Odesa and Kharkiv from Kutaisi International Airport starting June 4, announces the United Airports of Georgia. ‘’We are glad that one more low-cost airline company is starting operations in Kutaisi airport. Our strategy is to offer as many lowcost flights as possible from Kutaisi airport so that many tourists have the opportunity to come from different countries and also our

citizens to have more chances to fly in Europe at affordable prices”, said CEO of the United Airports of Georgia Giorgi Chogovadze.

SkyUp Airlines first appeared on the Georgian market in summer 2018 with direct flights from Batumi International Airport. Later the company also launched flights from Tbilisi International Airport.

Another good news at Tbilisi International airport. The South Korean flag carrier Korean Air resumed

its charter flight on the route Seoul-TbilisiSeoul from May 30.

Representatives of Ministry of Economy, Foreign Affairs, UAG, Georgian National Tourism Administration and TAV Georgia has welcomed 187 guests

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from South Korea.

During the summer season (May 30 – July 12) airline will perform charter flights in Tbilisi International Airport.

Korean Air has performed its first charter flight on the route Seoul-Tbilisi in May, 2018.

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GEL faces Historical Plunge The Georgian National Currency Plummeted by 10 Tetri in May The GEL is facing a historic depreciation. Over the past 2 months, the national currency keeps plummeting. A historic low was recorded on May 28, but the GEL still keeps dropping. On May 30, according to the Bloomberg trade platform, 1 USD amounted to 2.80 GEL. According to the NBG exchange rate, as of May 29, 1 USD was equal to 2.79 GEL. As for the EUR, its exchange rate was at 3.12 GEL. We remind you that the new wave of GEL exchange rate depreciation started on February 15, but the devaluation’s pace considerably increased in the second half of May. It is worth noting that, only in May, the national currency depreciated by 10 Tetri.

Previously, historical devaluation was recorded in 2016. Namely, according to the December 22 indicators, 1 USD amounted to 2.7846 GEL in 2016.

The Minister of Finance of Georgia: “Naturally, external factors have an influence….

I believe Turkey is one of the factors behind GEL volatility.

That’s why, a year ago, we started a dedollarization campaign to reduce our dependence on USD. The Parliament of Georgia has also undertaken sharp and active debates, where we introduced regulations and restrictions, for example, on mortgage loans. These measures were to alleviate similar shocks that take place everywhere, even more so in small and developing economies.

The GEL exchange rate has dropped to 2.80 points, but there

are no inflationary pressures, and we are sure that inflation or price growth will remain within NBG-determined indicators. We use the dedollarization policy to protect our citizens with USD-denominated loans. The dollarization coefficient is declining year on year. Maybe it cannot be fully neutralized, because it is an important currency reserves, but we should do our best to alleviate this effect”, Vano Machavariani said. The Parliamentary

Chairman has also reacted to GEL exchange rate depreciation, and noted that this is not a positive tendency. “We need additional information from the National Bank of Georgia and the government, and specific comments will be provided after that. I believe the exchange rate will be stabilized in the end”, Kobakhidze noted.

The GEL exchange rate’s tendencies and Lira’s interaction with the USD outline certain directions. Namely, extreme depreciation in the GEL rate started on May 6, when 1 USD amounted to 2.70 GEL. On the 10th of May, 1 USD amounted to 2.74 GEL. The Lira’s extreme devaluation started on May 6, when 1 USD amounted to 6.24 Lira, instead of 5.99 . However, after the May 6-10 devaluation, the Lira strengthened again, and on the 11th of May, 1 USD amounted to 5.99 Lira, while GEL devaluation continued irreversibly after May 6.

Over the past 1.5 months, the GEL exchange rate against USD shrank by 3.71%: April 1 – 1 USD amounted to 2.69 GEL; May 29 – 1 USD amounted to 2.79 GEL; in the same period, the Lira against the USD, depreciated by 5.3%: April 1 – 1 USD = 5.6 Lira; May 21 – 1 USD =5.9 Lira.

“This is short-term volatility.

Inflation, not exchange rate, matters for strengthening economic stability”, National Bank president Koba Gvenetadze noted.

“Based on April indicators, the annual inflation rate marked 4.1%. At the same time, we should analyze such one-time factors as a rise in excise rate and oil prices. Based on the April report, the base inflation rate makes up 1.4%, and this signifies that we do not face an inflation process”, Gvenetadze said.

External factors shape the main preconditions for the GEL’s exchange rate volatility, the NBG President noted, and added that dedollarization does not aim to strengthen the GEL. “Dedollarization is incorrectly perceived as a mechanism for national currency appreciation.

In general, the objective of dedollarization cannot be GEL exchange rate strengthening.

Dedollarization is a necessary precondition that exchange rate volatility and short-term shock do not damage borrowers who receive income in GEL. Therefore, it is important that incomes and liabilities be balanced in terms of currencies.

If we analyze interest rates, there is a slowdown tendency, too, and this means that GELdenominated loans are more and more attainable for borrowers”, the National Bank president said.

By Merab Janiashvili

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Summer Resort Season 2019 – Challenges and Expectations The month of April 2019 recorded 647,770 international tourists and 348,519 touristic visits, up 14,018 visits compared to April 2018. The information was given by the National Tourism Administration, based on Interior Ministry report.

Positive trends were maintained from EU countries, including the month of April 2019, which recorded growth in the number of international tourists from the following countries: Austria +50.8%, Italy +45.6%, Spain +43.8%, France +43.7%, Germany +43.5%, Czech Republic +38.2% and so on.

Significant growth was recorded from the following countries: Uzbekistan +125.7%, Thailand +97.5%, Kazakhstan +89.1%, Turkmenistan +52.1%, China +30.6%, United Arab Emirates +26.3% and so on.

The period of January-April 2019 recorded 2,265,318 international tourists, up 2.9% year on year, and 1,230,649 tourist visits, up 56,608 visits year on year (+4.8%).

According to the prior report, in January-March, incomes from international tourism made up 578 million USD, up 28 million USD compared to the same period of 2018 (+5 %).

How will the 2019 tourism season proceed, and what are the current expectations and how prepared is the country for meeting the coming summer season?

The City of Love, the project launched in Sighnaghi 12 years ago, have not brought desirable results for the hotel business. Today, private sector representatives talk about unresolved problems that should be tackled to increasing tourist inflows to Sighnaghi.

Tea Karagozishvili, the founder of the Three Gracia guesthouse, notes that the summer season has already started in Sighnaghi. The majority of holidaymakers are foreign tourists, including those from Russia, Ukraine, Germany, Italy, Netherlands. As for Georgians, they mainly arrive in Sighnaghi on the weekends, she said.

Karagozishvili says that this year has seen an improved situation, compared to 2018. Namely, the problem with drinking water has been tackled, and roads were rehabilitated.

“I have resolved the problems with drinking water. I have water reservoirs. Moreover, drinking water is supplied to the city in a continuous regime. Water supply may be disrupted in the daytime for several hours, but my guests never learn about this”, Karagozishvili said.

She also stresses that tourist attractions should be arranged in the city to attract more tourists.

“Guides stress that Sighnaghi is a small city with unimportant infrastructure, and one hour suffices to see the whole city. Therefore, tourists who arrive in the morning, leave the

city in the evening. Despite these challenges, the tourist inflow has not declined. I believe that if these problems are resolved, the inflow will considerably increase”, Karagozishvili noted.

To tackle this problem, the director of Three Gracia hotel plans to open a facility with the support of their own NGO organization, Temi Qedeli. Namely, she plans to open an art café and museum, where visitors to the city will be able to see the history of Sighnaghi in the same space.

“I am eager to take certain steps which will include organizing evening lotto games, charity evenings, preparing jams and marmalades.

Similar activities will highlight the importance of Sighnaghi. At this stage, visitors only arrive here and then leave, while the museum will demonstrate the history and wealth of the city, as well as collections of old photos. We are arranging one room in the old style”, Tea Karagozishvili noted.

It would be excellent if the local self-government shows interest in similar activities, she pointed out.

The Sighnaghi municipality officials explains that the city has hosted 3,149 domestic and international tourists as of May 24, 2019. This category has used the services of the Tourism Information Center. Therefore, real tourist inflow is bigger, and it is growing. The visitor inflow has grown by 20%-30%, compared to previous years.

The majority of visitors come from Russia, Poland, Germany and the USA. The tourism season will reach its peak period in SeptemberOctober.

As for the arrangement of infrastructure, the Sighnaghi municipality asserts that a lot of infrastructural projects were carried out in the city in 2018.

“No rehabilitation projects were carried out in Sighnaghi since 2007. In 2018, we carried out several projects for rehabilitating pavements, facades and balconies. We have spent 100,000 GEL on these activities.

The municipality has also arranged an approach road to the dendrology park (257,844 GEL), tourism maps were redesigned (12,000 GEL), WCs were also rehabilitated (6,000 GEL), tourism pathways were renewed ( 3,000 GEL).

As for water supply, consumption increased in 2018, and water supply was carried out under schedule in the summer period. The United Water Supply Company serves the city, Sighnaghi municipality representatives said.

This year, Sighnaghi local self-government will finance the arrangement of a new well (77,041 GEL) and water resources will be supplied to local residents. Thus, water supply problems will be dealt with in 2019.

At the same time, another layer of asphalt and concrete will be laid on Abramishvili, Bezhashvili, Mosashvili and Mosulishvili streets.

The project is underway. Road rehabilitation works will be financed by 614,130 GEL. As for Svaneti, the Kala-Ushguli road section is one of the key components for the coming summer tourism season. The project’s implementation started several years ago, and was finished recently.

Neli Naveriani, the first deputy head of Mestia, says that the Svaneti Region, including Mestia District, is meeting the 2019 summer season well prepared. The Kala-Ushguli road section has been arranged to provide comfortable transportation for tourists and local residents, Neli Naveriani pointed out.

Moreover, tourist routes and pathways are marked to the direction of Chuberi. The idea and territory were provided by the Mestia Municipality, while the works were carried out by the National Tourism Agency. A new tourism route will be added to the Svaneti Region, she noted.

As for tourist inflows, the January-April 2019 indicators have exceeded the 2011 annual inflow.

More than 23,700 tourists visited the Region in 2017, and the figure rose to 25,000 in 2018, Neli Naveriani noted.

This year, at least 170 guesthouses will host tourists in the Svaneti region. Local residents show huge interest in starting a private business in the tourism sector, as a lot of applications are submitted to the municipality for obtaining construction licenses, she said.

Waste management issues have also been resolved. There are a lot of cafes and restaurants.

Mestia airport also works on an active regime, Neli Naveriani said.

The owners of Qoruldi Guesthouse in Svaneti explained that the tourism season has actively started in Svaneti. The guesthouse is already hosting tourists. The inflow will increase in the peak season, because tourists show growing interest in Svaneti year to year.

“In general, tourists give preference to peaceful and stable countries, and Georgia provides a similar environment. The local government provides active work to offer comfortable and convenient atmosphere to tourists, so as they visit region repeatedly. We have arranged roads, infrastructure. We will meet the summer season prepared”, owners of Qoruldi hotel noted.

As for prices, the standard 2-bed rooms are rented for 60 GEL a day.

Batumi is also coming to the summer season with several novelties. Representatives of LEPL Batumi Boulevard noted that the Batumi Boulevard will have a development plan, for the first time. The local administration provides

active work for boulevard conservation.

Infrastructural projects are being carried out in an active regime for the coming season, the company representatives noted.

‘We have started the rehabilitation of the bicycle lane. As a result, the cycle lane, which is 5,100 meter long, will be arranged and painted. The track will be maximally comfortable and safe”, the Batumi Boulevard representatives noted.

Plastic attractions at the children’s corner on New Boulevard will be replaced by new children’s attractions made of ecologically clean wood materials. Swan Lake on Old Boulevard will also be .

WCs built to modern standards will be arranged on the Old Boulevard, together with a children’s space, too.

“The Batumi Boulevard’s coastline enter the season with infrastructure adapted for the disabled. As a result, wooden pathways, showers and lockers and adapted WCs will be arranged.

The seaside will be equipped with floating wheelchairs that will enable PWDs to enter the sea, independently.

This project is being carried out in Georgia, for the first time, with the aim to promote inclusive tourism’, Batumi Boulevard representatives noted.

Batumi infrastructure development continues.

The coastline is freed from shapeless and illegal facilities by the initiative of the Batumi Boulevard, and with the support of Adjara Government and Batumi City Hall, they noted.

It is of crucial importance that the coastline zone provide calm and safe environment for city residents and guests. In the near future, Batumi Boulevard will be ready to host a lot of important festivals and concerts, Batumi Boulevard representatives noted.

Nana Baladze, the manager of Dream Tower, a 3-star hotel in Batumi, says the hotel has opened for the coming season. She is meeting the new season with huge expectations. The hotel has already received bookings for the JuneSeptember period.

“In this period, we will host guests from Belarus, Turkey. The Batumi municipality has brought everything in order, and we believe the city’s visitors will be content”, Baladze noted.

At this stage, a 1-bed standard suite is rented for 80 Gel a day with breakfast, but prices grow in active season.

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First Solar Powered Hotel opened in Tbilisi The Solar Panels installed on the roof of the hotel generates Electro Energy which is 80 percent of used AC. As Manager of the Hotel Marketing, Nino Palavandishvili notes, the capacity of installed panels is 27 kW, but it manages to produce 40 000 kW in one year.

“The whole roof is covered by Solar Panels which supplies 80 percent of Electro Energy. However, in the off-season, Solar Panels are still generating Solar Energy.

Before opening a hotel, we managed to transfer manufactured Energy from already installed solar panels to the Network of Electro Energy. Now, after opening Brim Tbilisi, what we produce, is used for the hotel. If there would be an occasion, where Solar panels will generate Energy over the limit, we will transfer it to the Network.", Nino Palavandishvili stated.

How did the concept of Brim Tbilisi evolve?

Brim Tbilisi is a Georgian-German project, which includes a hotel and two restaurants.

Both sides worked on this concept equally.

Environmental changes are important for our investors, thus they decided to use an alternative energy source, which became a central part of our approach. Besides, the author’s decision of the interior and exterior design must be kept in sight. It catches guest’s interest right away. Our strategic location works in our favour as well. It gives tourists an opportunity to get to know to the Georgian capital better and makes old, adventurous streets of Tbilisi unforgettable.

How many employees does Brim Tbilisi have at the moment?

Right now in Brim Tbilisi we have 50 employees, but eventually we plan to increase the number of our stuff.

What have been your major challenges while setting up Brim Tbilisi hotel?

As mentioned earlier, the hotel is situated in the historic part of the city – Avlabari, so the biggest challenge was the exterior

design. We had to satisfy necessary requirements regarding the style, which our designer, Mister Koba Pirtskhalaishvili, handled perfectly.

What is your vision for the hospitality segment in Georgia?

Tourism is developing in Georgia.

The number of the visitors increases, which inquires progress from us as well. Hospitality and proposing highest standards in general stay on the top of our priority list and we have a lot of improvements in this area.

Brim, is the first Solar Powered Hotel in Tbilisi, tell us more about it.

Yes, it’s quite a responsible claim from us.

The capacity of solar panels installed on our roof is 27 kW, which means generated 40 000 kW per year. With these indicators our hotel uses up to 60-80% of the alternative energy source, which doesn’t change even in the off season period.

We hope to encourage other Georgian

businesses in order to start working in this direction and take part in preserving our environment.

What are your future plans?

We plan to expand our ecological work into various directions. We strongly desire to add electronic cars and bicycles which would contribute farther to build healthy environment. Besides we are going to recycle and conserve every source we use. We hope our guests will help us accomplish these honourable goals.

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Electricity in Figures – Georgia and the World An annual 15 billion tons of fuel are spent on electricity generation across the world. The total power of all electricity stations worldwide exceeds 2.067 trillion watts, and the hourly rate of generation is 18138.3 trillion watts. According to UN statistics, 60% of world electricity is generated by steam power plants.

Hydro power plants produce only 20% of world electricity, and nuclear power plants generate only 17%. Wind, solar and other power plants generate only 3% of the world’s electricity. The USA is reported to be the largest electricity producing country, with 3600 billion kw/h, while Japan ranks second with 930 billion kw/h, and China comes third with 900 billion kw/h, Russia is fourth with 845 billion kw/h, and France is fifth with 500 billion kw/h.

65% of global electricity is generated by the developed countries, 22% - by developing economies and developed economies generate only 13%.

The annual investment inflow to the power sector is about 100 billion USD. According to International Energy Agency (IEA), electricity consumption in 2018 rose by 2.3% across the world. Electricity consumption is growing in Georgia, too. According to the Georgian National Energy and Water Supply Regulatory Commission (GNERC), over the past few years, Georgia’s electricity consumption used to grow by 5% on average, but, compared to 2017, in 2018 growth constituted 8%. According to forecasts by specialists, electricity consumption will grow to 23 billion kw/h by 2030.

According to the Electricity Market Operator, in 2018 Georgia-based power facilities generated 12148.6 million kw/h electricity, while the supply to the network constituted 13455.9 million kw/h.

The difference between power generation and power supply was replenished through electricity imports.

As a result, electricity imports as a part of total supply constituted 10%. Year on year growth in electricity imports is recorded in 2019, as well.

According to ESCO, in April 2019, Georgia bought 80.840 million kw/h, up 7.2 percent compared to the same period in 2018 (11.216 million kw/h).

In whole, in January-April 2019, Georgia purchased 613.9 million kw/h of electricity, up from 541.998 million kw/h in the same period of 2018. As a result, electricity imports have increased by 21% year on year.

In 2018, Georgia purchased electricity worth 75 million USD. According to the forecasts of the Ministry of Georgia, the figure will rise to 141 million USD in 2019.

Unlike imports, Georgia’s electricity exports are decreasing.

In April 2018 Georgia exported 62 million kw/h, but the figure declined to 38 million kw/h in April 2019.

As for the price of electricity for citizens, the lowest prices in Post-Soviet countries in 2018 was recorded in Turkmenistan: 0.01 USD per kw/h. The figure is at 0.02 USD in Uzbekistan, Tajikistan and Kyrgyzstan, 0.05 USD in Ukraine and Azerbaijan, 0.06 USD in Belarus, 0.07 USD in Kazakhstan.

For comparison, the electricity tariff per kw/h in the USA is at 0.013 USD. The highest tariffs are recorded in Germany and Denmark – 0.38 USD per kw/h.

By Zurab Khachapuridze

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Dimitri Shvelidze: "Being Creative doesn’t mean Investing too much, Original Ideas are often Simple’’ Interview with Deputy Director of the Mira-Hotel Group Ltd (Hotel Riverside Tbilisi, Tiffany Bar and Terrace, Mira Travel), Dimitri Shvelidze.

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

I started out my studies and career in a different field; I got my Master’s in Law, towards Civil Law in 2014, and worked in some public and private organizations, after which I joined the Mira-Hotel Group, and over time I moved to the position of Deputy Director.

Since I enjoyed marketing, representing brands, sales and communication, I decided to deepen my knowledge of marketing.

In addition, I took a Cambridge University Business Administration course. Although I received even more experience by reading relevant materials, and listening to experienced people in this field, and attending different training sessions. I realized that I liked this field, while my previous education and law degree would help me, generally, in marketing.

Practice in the hotel and restaurant business brought me more experience. One should never stop learning. Meanwhile, I’ve been able to publish four books over the years, in a totally different field:adventure fantasy for children.

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

The hospitality industry is developing rapidly in our country, as well as worldwide.

Technological changes, among which are the development of social networks, influence our potential customers. Years ago, a share of reservation fees would go to tour managers - people and companies, respectively, who would provide useful information, and recommendations. Along with the development of online platforms, websites took some share from reservations. Computers are constantly replaced by smartphones. A huge amount of bookings are made through phones. Social networks influence customer decisions, which hotel to choose. The right positioning on the social platforms, like Instagram, Facebook are very important. So-called influencers play a huge role in what people choose. Everyone uses international website monitoring systems and customers reviews to make the right choice.

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

As we know, marketing in the hospitality industry involves a number of activities in terms of sales, public relations, advertising, etc. This is a complex field. One sentence that describes marketing is: the process of establishing a productive relationship with a customer, and maintaining it. A marketing manager should think outside of the box, understand the product that he offers.

It should be noted that studies also play an important role in developing marketing strat-

egies and tactics. In addition, the marketing manager should listen, communicate with a customer, as well as with his team. A guest can only be satisfied if each and every department operates correctly. Being a creative doesn’t mean to investing much; original ideas are often simple. I often put myself in a customer’s shoes, if I want to go to a cafe, why should I choose Tiffany, what are the advantages, why should I want to go back there, what will I remember about that place, etc.

have many examples of that. As for channels through which we communicate, it develops rapidly. I’m glad that Riverside, which is a Georgian hotel brand, is among the 10 best hotels for the last 4 years on the famous American website Tripadvisor. (Travelers Choice Awards)

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

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

We never stop learning, listening, evaluating and introducing new technologies that simplifies the process for our team, so that they have more time to communicate with guests.

Bringing a guest to your place is a success, while maintaining them and make them come back is a challenge, and take a lot of work.

Besides, one must pay attention to a country’s economy, and catch up with novelties.

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

The customer is most important, especially in the hospitality field. We ask them questions, we listen to them, analyze their feedback, and improve our services accordingly. We

One word that describes your job.

Inspirational.

Take care of self-development every day, or everything will go downhill. The American ambassador gave us this advice years ago, and I have followed this principle since then.

Think of a person who inspires you, professionally.

It’s hard to name one person from one specific field. There are numerous people who inspire us with their diligence, dedication and skill when solving an issue. That can be a writer, or any person working in the company. Among them are talented people who contribute to the field of hospitality, those who started out with a small family-type hotel, and established a huge network, and an empire; moreover, maintained properly, that’s one of the most significant qualities.

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Business News

B COM - New Space for Business Community

Georgian application Artistik uses complex artificial intelligence algorithms and recreates your photo with the strong style from famous artists' masterpieces.

TBC Business creates a new space for business community. B COM is a business communication platform that offers a variety of benefits to its affiliated businesses. B COM will contribute to business clients in business creation and development.

Georgian Wine presented in Krakow Georgian wine was presented at “Confetti Wine Fest”, the first festival of natural wines held in Krakow, Poland. Mariusz Kapczynski, head of the National Wine Agency contractor company "Vinesfera", organized the event "Georgia, where it all began ...", where Georgian Qvevri wine was presented.

"And Then We Danced" is sold around the World Georgian film "And Then We Danced" is directed by Swedish filmmaker Levan Akin, which is sold to key international territories such as Spain, Japan, and Mexico.

Culinary School to open in Gurjaani The culinary school will be constructed in Gurjaani starting in the second half of the year.

Imeda Imedashvili to lead Marketing Department at BOSS. Gaming Solutions Former Evex brand coordinator, Imeda Imedashvili, became head of international gaming solutions provider Boss and will lead product marketing department.

Mercedes-Benz Business Week will be held in Georgia for the First Time The event will take place in Georgia on 7-8-9 June and the focus will be laid upon important factors for Businessmen, for instance, efficient results. The aim of the project is to assist the expansion of the business sector and to actively integrate foreign investors in this matter.

The Charter Flights will be Operated From Talini to Batumi Estonian Company "SmartLynx Airlines" will perform charter flights from Talini to Batumi.

The flights will be made on June 27, July 4, July 11 and July 18 with the Airbus A320. It will be oriented on the tourists of Estonia.

Female Georgian Winemakers are Participating in Women in Wine Expo The first international exhibition of female winemakers "Women in Wine Expo 2019" is held on May 23-24 in the Netherlands and Belgium.

The following 8 winemakers are participating in the exhibition: "Keti Wine", "Baia's Wine", "Marani Sachino", "Madamwine", "Demi’s Winery", "Nino Mori’s Cellar", "Miranda Chkhetiani" and "Tamar Wines".

Georgian Application Artistik transforms Image into an Artistic Effect Feedc – New Social Network developed by Georgian Students Georgian students have developed a new social network – Feedc. Unlike other social networks, not only friends of a user, but also other people being within 5-km radius will be able to see posts published by the user.

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Project Management Institute launches Official Representation in Georgia

The official representation of one of the largest professional associations, Project Management Institute (PMI), has been launched in Georgia.

The opening ceremony was attended by both local and international top managers of the public and private sectors, the founders and members of the PMI representation to Georgia, and professionals operating in the project management sphere.

The representatives of PMI state that their main goal is to support professional progress and development. Tamar Matchavariani, founder and Director of Communications of the PMI representation to Georgia, claims that the project management sphere is underdeveloped in Georgia and thus they are working actively to increase public awareness and support

professionals.

“We have been collaborating with PMI for four years to launch this representation,” Matchavariani said. “It proved to be an active, busy and fruitful period. The presence of this representation in Georgia is vital, as project management is not of those fields which are developed here. Our main goal is to contribute to the existence of more certified project managers and their involvement in large projects, implementing in Georgia. That will dramatically improve the outcomes and efficiency of ongoing projects in Private and Public sectors. All of this is to positively reflect on the country’s economy as a result.”

The PMI representation to Georgia was founded in 2018 and brings together holders of of the Project Management Professional (PMP) Certificate, operating in different spheres, in local and international leading organizations.

In addition, the representation is actively collaborating with the representations of PMI across the Europe.

The President and Founder of PMI, Lela Machaidze, says that the organization will support to the development and implementation

of project management strategy and methodologies across Georgia.

“It is to be a place enabling us to share knowledge and experience, and to communicate with project managers of various fields and sectors. We will hold conversations regarding the challenges and requirements in the project management direction, and the flaws we can mutually work on,” Machaidze noted.

PMI was established in 1969 and has since represented the largest, non-commercial, membership-based professional association.

The Institute brings together more than 700,000 professionals worldwide, creates values through advocacy, cooperation and education for 2.9 million individuals from almost all countries worldwide. PMI supports professionals in terms of progressing in their career, while it assists organizations to achieve success.

The Institute strengthens the profession of project management through the creation of internationally recognized standards, certifications, resources and tools, as well as academic research, publications, courses of professional development and professional communication.

Real Estate, Investment and Migration Show to take Place in Batumi

Global Promotion Group is pleased to present you the next event in sunny Batumi – GREIMS Batumi - a private real estate, investment and migration show, which will be held on 22-23 of June.

80% of the participants will not be foreign agencies and developers, but local Georgian companies. The remaining 20% will be foreign companies.

At GREIMS Batumi, along with the local target audience of visitors, there will also be professionals, clients and investors from the CIS, Gulf Region and Baltics.

The delegates will be foreign real estate agents who are already engaged in or are planning to engage in real estate in Georgia, as well as potential investors and buyers of Georgian real estate.

Advantages for GREIMS Batumi participants: The main advantage is the opportunity to build valuable contacts network and to get useful and necessary contacts both in Georgia and around the world.

The second important advantage of GREIMS Batumi is the opportunity to tell about your company to the target audience and strengthen your position on Georgian market.

The undoubted advantage of participation is the use of the maximum advertising resources: Internet, printed publications, video coverage on YouTube, placing offers on the largest international target portals, increasing your database, the presence of partners all around the world. Not to mention the benefits of participation in GREIMS Batumi as sponsors.

GREIMS Batumi will last for 2 days:

On the first day professionals from the local real estate market visit the event to expand their portfolio and find new partners among the exhibitors. Participants and visitors gather at a round table to discuss current issues and trends of the real estate market. Agents will be able to communicate personally with representatives of exhibiting companies and listen to series of presentations.

Visitors of the second day are potential customers and investors.

They will be able to communicate personally with exhibitors. Buyers and investors can get acquainted directly with developers and leading foreign agents, and find out the answers to actual questions of property acquisition, second citizenship, residence permit, investments and migration in general.

GREIMS Batumi is not the first private event of Global Promotion Group in Batumi. On September 12-13 Global Promotion Group organized the first private exhibition of foreign real estate, investment and migration issues under the old name - GEOREX Batumi.

GEOREX Batumi participants and speakers were: Colliers International Georgia, Clap, Rekan Group, Schuchmann Real Estate, Hochbau, Mgzavrebi Hotel Chain, Tropical Garden, MyHome.ge, SkyInn, ConPro, NVcompany.

GEOREX Batumi started with a round table, during which the current state of the Georgian real estate market, in particular Batumi, was discussed, as well as ways of attracting and the importance of international investments, interaction of local experts in real

estate with foreign partners and much more.

Representatives of the Ministry of Finance and Economy of the Autonomous Republic of Adjara, representatives of participating companies, professionals from the local real estate market, and invited delegates from Russia, Ukraine, Azerbaijan, Cyprus, Kazakhstan and other countries took part in the discussion. According to the speakers of the round table - this discussion was very relevant and interesting, especially taking into account the growing demand for real estate in Georgia and the constant increase in the flow of tourists to Batumi.

The business program continued with a series of presentations that companies held on the first day for local and invited professionals in the real estate market, and the second day for private buyers and investors.

For participation in GREIMS Batumi, registering for visiting it on the first, or second day, leave an application on the website or contact the organizers.

11 June 3, 2019 #285

Self-employment and Georgia The number of selfemployed is a precise sign of a weak economy – the more workers live without contractual salaries, the more undeveloped the country is.

Conversely, he stronger the state economy, the smaller the aforementioned category.

Self-employment implies a business without a lawful registry, in shadow, without official papers or income documents.

However, this is only a superficial description, while from the standpoint of accountancy, selfemployment is a wider concept.

As a rule, self-employment unites such professions and business activities that do not exist in the developed world, or has been reduced to minimum.

For example, a peasant or a person working their own land implies a natural economy, in practice. A similar practice does not exist in the developed countries.

You will never find German, Canadian, or Greek peasants, because farmers are village residents in strong economies. This is a special category of people, outside of the field of selfemployment – most farms are major business entities, and they are integrated into the legal economy.

Craftsmen are selfemployed, who are seen everywhere in Georgia. In strong economies, similar practices do not exist any more, as all electricians and sanitary technicians work in well-organized business companies and consequently, they represent a part of the legal economy.

Sellers at fairs and

markets are self-employed, while similar types of commerce do not exist in developed countries.

Markets like Eliava are found nowhere in wealthy countries, but also in the average European country.

There are corresponding indicators – the ratio of the self-employed in Georgia accounts for 50% of the total number of employed. Similar indicators are recorded in Columbia, Mexico, and China. The highest number of self-employed in Europe is reported in: Greece – 30%, Turkey – 32%, Poland – 24%, P ortugal – 24% and Italy – 23%.

The lowest self-employment rate is recorded in: the USA – 6.4%, Russia – 7.5%, Canada – 8.6% and Germany – 10%.

As for Georgia, the statistics are very messy here – for example, self-employment is associated with the agriculture sector, while the self-employment spectrum is much wider.

Therefore, there are a lot of various inaccuracies.

According to the official statistics, village residents constitute 40% of the whole population, but, in reality, this ratio is much lower.

Consequently, 50% of the employed cannot be agricultural workers.

Thus, the Geostat figures do not provide key information on self-employment – the country does not know, even today, how many people work in villages, and how many in cities. We do not know how many peasants work the land, and how many of them are major farmers.

The last report by Geostat has turned everything upside down, and all figures conflict with each other.

This signifies that indicators from the same state office contradict each other, and the real picture becomes more unclear.

According to these figures, the ratio of self-employment in Georgia accounts for 17%, not 50%, while in the agriculture sector, the ratio of self-employed makes up 6%, like Netherlands, while according to official indicators, in the Netherlands, village residents constitute 10% of the population, and in Georgia village residents account for 40%.

All figures and information are unclear and contradict each other – the number of self-employed ranges from 17% to 50%, and the ratio of village residents ranges from 6% to 40%.

Today, the country does not have real information on itself. We do not have elementary information on our own economy, not only ordinary citizens, but even Geostat, which asserts that the ratio of self-employed accounts for 50%, but somehow only 11% receive incomes from selfemployment. According to the same Geostat, village residents constitute 40% of the population, but only 6% receives incomes from the agriculture sector.

Some of these figures are false, and we have to determine which.

By Tengiz Ablotia

12 June 3, 2019 #285