Marketing research of Wine-Tourism Sector in Georgia Trends and challenges in Georgian Wine Tourism The research is carried out under the project “Black Sea Network for Sustainable Tourism-Strategies for joint tourism marketing and development in the Black Sea region (BS NST)”.
12/20/2014
1
Georgian Wine Association Tatiana Jaiani
Table of Contents List of Abbreviations ...................................................................................................................... 3 1
2
3
General Information ............................................................................................................... 4 1.1
Geographic situation ....................................................................................................... 4
1.2
Political system ............................................................................................................... 4
1.3
Socio economic conditions ............................................................................................. 5
1.4
Income, poverty and employment ................................................................................... 5
Background and problem statement ...................................................................................... 9 2.1
Introduction ..................................................................................................................... 9
2.2
Project Background ...................................................................................................... 10
2.3
Problem Statement ....................................................................................................... 10
2.4
Objectives and Vision ................................................................................................... 11
2.5
Research Methodology ................................................................................................. 12
Wine Tourism in Georgia ..................................................................................................... 12 3.1
Introduction ................................................................................................................... 12
3.2
The Georgian Wine Industry ......................................................................................... 13
3.2.1
The History of Georgian Wine Industry ................................................................. 13
3.2.2
Georgian Wine Regions ........................................................................................ 14
3.2.3
Georgian grape varieties ....................................................................................... 16
3.2.4
Winemaking technology ........................................................................................ 18
3.2.5
The business environment of Wine Industry in Georgia ........................................ 19
3.2.6
SWOT analysis of Georgian Wine Industry ........................................................... 21
3.2.7
The Development of Georgian Wine Tourism Industry ......................................... 22
3.2.8
Wine Tourism in context ........................................................................................ 23
3.2.9
Market segmentation ............................................................................................. 24
3.2.10
Georgia a niche market for international visitors ................................................... 25
3.2.11
Wine Tourism system ............................................................................................ 25
3.2.12
Profile and Motivations of Tourists ........................................................................ 25
3.2.13
Accommodation types ........................................................................................... 32
3.2.14
Catering (Food and Wine) ..................................................................................... 33
2
4
5
3.2.15
Wine and Entertainment ........................................................................................ 33
3.2.16
How satisfied are the tourist .................................................................................. 35
3.2.17
Advantages and disadvantages of wine tourism for wineries ................................ 35
3.2.18
Trends and Challenges in Wine Tourism .............................................................. 36
3.2.19
Wine Tourism Product characteristics and benefits .............................................. 40
3.2.20
Services offered by Tour Agencies in Georgia ...................................................... 42
Wine Tourism Marketing ...................................................................................................... 43 4.1
Introduction ................................................................................................................... 43
4.2
Marketing process ........................................................................................................ 43
4.3
The marketing process ................................................................................................. 44
4.4
Marketing and Promotion in the wine tourism industry ................................................. 45
4.4.1
Wine sales and sales promotion ............................................................................ 46
4.4.2
Advertising and promotion ..................................................................................... 48
4.4.3
Personal selling of wine products .......................................................................... 50
4.4.4
Public relations ...................................................................................................... 50
4.4.5
Direct marketing .................................................................................................... 51
Conclusions and Recommendations ................................................................................... 51 5.1
Recommendations for the Georgian wine and tour companies .................................... 53
5.2
Areas for future research .............................................................................................. 55
6
Bibliography ......................................................................................................................... 56
7
Table of Figures ................................................................................................................... 57
8
Annexes ............................................................................................................................... 58 8.1
Project Presentation ..................................................................................................... 58
8.2
Questionnaire ............................................................................................................... 61
List of Abbreviations GDP- Gross Domestic Product GIZ- Gesellschaft für Internationale Zusammenarbeit GWA- Georgian Wine Association PR- Public Relations
3
1 1.1
General Information Geographic situation
Georgia is located between east Europe and Asia. It is part of the Caucasus region and is bordered by black Sea, Turkey, Armenia, Azerbaijan and Russia. It covers an area of around 69.700 square meters. The total population is 4.5 million. Figure 1.1 Map of Georgia
1.2
Political system
Since 9 April 1991 Georgia is proclaimed as independent state. The president is head of state. He manages and implements the domestic and foreign policy of the country; ensures the unity and integrity of the country, and the activity of government bodies. The president is the highest representative of Georgia in foreign affairs while the prime minister manages the country. The parliament of Georgia consists of 150 members. It exercises legislative power and general control over the foreign policy. Georgia consists of nine regions and includes two autonomous republics: Adjara at the black sea cost in the south west of Georgia and Abkhazia in the northwest part of the country.
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1.3
Socio economic conditions
Georgian economy suffered with the collapse of the Soviet Union in the beginning of 90th. The economic situation further worsened with the armed conflicts and civil strife in the beginning of 90th. Massive unemployment, deterioration of infrastructure high inflations and energy crises are only the few elements that Georgian population faced in these years. With the help of international organizations a series of reformed has taken place stabilizing thus the economy of the country. The economic growth started to accelerate in the early 2000, reaching a two digit growth rate in 2003. The World Bank expects Georgia to have 6.3 percent economic growth in 2014. The estimate was published in the Bank’s Global Economic Prospects 2014, which reads that the prognosis for economic growth in Georgia in 2014 is 6.3 percent. The expectation for 2015 is also 6.3 percent and 6.5 percent for 2016. In 2013, Georgia’s economic growth was 2.5 percent Agriculture – an important sector for Georgian economy and larger contributor to Georgia’s GDP. While there was a slight decline in agriculture, growth has been broad based, and was led by manufacturing (especially mineral products, food processing, and alcohol/ beverages) and construction (driven mainly by sustained high levels of public investment). The growth in services was supported by an expansion in transit (particularly to and from Armenia, Azerbaijan, and Central Asia), financial intermediation, hotels and restaurants, transport, and communications. In addition, the Government’s efforts to promote Georgia as a tourist destination helped raise tourism revenues by 56 percent in 2012. GPD showed positive results since 1998, despite the fact that steady decline was observed beforehand. Despite the impressive economic growth in recent years, a substantial part of Georgia’s population is still living in poverty. The official subsistence level is around 160 GEL and nearly the half incomes below 50 GEL. Between 2004-2008 the annual economic growth was up to 6.8 percent and only the half in 2008 during the conflict with Russia and global economic crisis. Despite the fact that economy quickly recovered from the dual shock with growth rates in 2010 and 2011 the poverty still remains as a critical issue in the country. Poverty rates differ across regions and population groups. Income disparities are substantial with estimated Gini coefficient of 0.42 in 2011. Existing evidence suggests that some groups of the population are particularly disadvantaged regarding access to assets and basic services, and have fewer opportunities to engage socially and politically. The most pressing issues are inadequate housing conditions and high levels of unemployment. 1.4
Income, poverty and employment
Based on data 2013, around half of the population in Georgia lives below the official substance level 159.6 GEL. Poverty rates in the urban area are higher than in rural areas.
In average share of
5
population under poverty threshold (Registered Poverty) in (%) is distributed as follows:
Figure 1.2 Population under poverty 7 5 3 1 1995
6.4 2000
2005
8.4
9.2 9.7 9.9
2010 Series1
2015
9.7 9.7
2020
2025
Series2
The poverty share between populations is closely linked to the unemployment rate in Georgia. The chart below presents the unemployed rate since 2006. The highest unemployed were achieved in 2016 by 16.9 %. Currently the rate decreased until 14.6% Figure 1.3 Unemployed rate in Georgia
Unemployed rate YEARS 9 8 7 6 5 4 3 2 1
2014 2013 2012 2011 2010 2009 2008 2007 2006
Unemployment rate 14.6 15 15.1 16.3 16.9 16.5 13.3 13.6 13.8
Consequently, unemployment remains the most significant public policy challenge in Georgia. The capital-intensive nature of Georgia’s robust growth performance was reflected in relatively high
6
unemployment, which remained in the 12-13 percent range even during the pre-crisis boom. Unemployment peaked during the crisis to 17 percent in 2010 and then fell to 15 percent in 2012. With economic transformation in Georgia, some of the older sectors and industries died, shedding their labor force. New industries grew during the same period but have not been able to absorb the workforce as effectively and overall labor demand remains weak while skills mismatches persist. The majority of the work force – more than 55 percent – is employed in agriculture (mostly self-employed), which contributes only 8.2 percent of GDP and is characterized by family-based subsistence farming. The average wages per month in 2013 was around 773.1 GEL.
The economic growth went slightly down by 3.3 percentage in Gross Domestic Product (GDP) in comparison to the previous year when it made around 6.4 percentage in real growth. . The chart below displays the GDP at current prices and per capital in GEL and USD.
Axis Title
Figure 1.4 GDP per price and per capital 30000 25000 20000 15000 10000 5000 0
Gross DomesAc Product
GDP at current prices mil.GEL
GDP per capita (at current prices),GEL 4675.7
GDP per capita (at current prices), USD 2623
Series1
2010
20743.4
Series2
2011
Series3
2012
GDP at current prices mil.USD 11636.5
24344
5447.1
3230.7
14438.5
26167.3
5818.1
3523.4
15846.5
It’s interesting to observe that the share of tourism in the GDP is around 6 %. Figure 1.5 Share of Tourism in GDP
7
Share of tourism in GDP Share of tourism in GDP 6.35% 6.30% 6.25% 6.20% 6.15% 6.10% 6.05% 6.00% 5.95%
6.30% 6.19% 6.08%
2011
2012
total
The detailed breakdown is presented below.
Figure 1.6Share of Tourism in GDP detailed breakdown
Total real GDP total Total tourism value added Travel companies
2012
Transport 2011
0.00
Food objects 0.00
0.00
0.00
0.01
0.10
AccommodaAon
Millions
8
In November 2013, Georgia initialed the Association Agreement including DCFTA (Deep and Comprehensive Free Trade Agreement) with the European Union at the Vilnius summit, further cementing its west-ward leaning political, economic and foreign policy. The World Bank’s Country Partnership Strategy (CPS) with Georgia for FY2014 – 2017 is currently under preparation and is scheduled for Board discussion in April, 2014. The current portfolio of operations in the country consists of seven active investment projects financed by IDA credits/IBRD loans of US$540 million. 2 2.1
Background and problem statement Introduction
Basking in a perfect climate for vines, the mineral-rich soil of these Southern Caucasus valleys nurture over 500 indigenous and ancient grape varieties, most of which are grown regularly or are being revived. Georgia considers itself as the “wine nation” and with some justification as even the word wine is believed to have derived from the Georgian “Ghvino”. Researchers have uncovered grape pips of domesticated Vitis vinifera in Georgia radiocarbon-dated to 6,000 BC. The many exhibits of ancient works of art and artifacts with chased imprints of vines and clusters of grapes in the State Museum bear witness to Georgia’s prime place in the history of vine and wine. Wine is part of Georgian heritage including architecture, poetry and songs, and is associated with celebrations, holidays and rituals. Winemaking remained the basis of the Georgian economy for centuries. The development of Georgian Wine sector needs broader awareness. Consequently it can’t focus only on wine production and distribution. The figures above demonstrate how important the development of Tourism is for the country and economic development of the state. Georgian Wine Tourism focuses more on marketing and wine tourism product development on all new and existing markets in order to ensure its continued success. International researches and best practices over the world has shown that wine tourism can add value and benefit to country, wineries and whole economic sector as a direct marketing channel. The purpose of this study is to conduct a Marketing research of Wine-Tourism Sector in Georgia, identify gaps and challenges, trends and innovations in this field as well as provide recommendations for further developments. Although the research will not deeply delve into general tourism issues, describing and analyzing general tourism policies at national level and their impact on tourism sector development some general principles and categories which apply to all forms of sustainable tourism development will be mentioned here.
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2.2
Project Background
The research will be carried out under the project “Black Sea Network for Sustainable Tourism-Strategies for joint tourism marketing and development in the Black Sea region”. Besides Georgia following countries do also participate in this project: Moldova, Ukraine, Turkey and Bulgaria. The main aim of the project is to support agro, eco and wine tourism development and prepare thus the joint strategy for the region. The detailed presentation of the project is attached to this survey. 2.3
Problem Statement
Georgian Wine industry faces many challenges and has a huge room for improvements. Despite the fact that Georgian is cradle of Wine and its wines are well known over the world, good quality wine and fair prices are not enough anymore to sustain the industry, especially not with new competitors on the market.1 According to the new trends and developments worldwide, the Georgian Wine Industry will not be able to survive in the future if it continues to focus only on wine production. It is more important to adopt a whole of wine value chain approach with a marketing orientation on Georgian wine business. To understand this approach it’s very important what we mean when we speak about value chain concept. So far the best definition of this term is given by Porter2. According to Porter, the main products into the business and transformed into a final product by series of value adding processes and distributed thought various distribution channels and sold to the end consumer by employing marketing and sales strategies. The visualization of the channel is given below:
Figure 2.1: Value Chain approach by Porter
Inbound LogisAcs
OperaAons
Outbound LogisAcs
MarkeAng &Sales
Service
By applying Porters value chain model in the wine industry the value adding processes can be explained as such: The core product grape is growing in vineyards. Operations of the winery include harvesting, crushing and fermentation as well as aging process of grapes (core product). The final product (wine)is than sold
1
Van Rooyen in Media Vision Consultants, 2008
2
in Barnes 2001
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to the consumers via various distribution channels such as cellar door sales, wholesalers, retailers, online, food and wine festivals, grape harvesting etc. which do belong to the concept of wine tourism. As wine sales process is assisted by various marketing and service strategies, such as wine and food festivals, wine and cultural events, wine and education, it’s closely linked to other sectors and should cooperate for better business and sector development. By taking a closer look to this table it is possible to identify the area in which wine tourism can add value in the value chain of winery. Activities listed above such as door sales, festivals, tours are all activities of wine tourism. Thus we can conclude that in at least three links of the value chain, namely outbound logistics, marketing &sales and service wine tourism can add value to the wine industry. In mid 90’s researches have observed that wineries can benefit from cooperation vs. partnership with the tourism industry. 3 These benefits include: •
Increased wine sales
•
Aiding cash flow
•
Fostering brand loyalty
•
Higher profit of winery sales
If we will take a closer look to the wine tourism development in US, Spain, New Zealand or Australia and examine the average spending of tourist on wine tourism activities, we would definitely note the financial benefit for country, sector and wineries itself. 4 However in Georgia the potential of wine tourism is not fully explored. For that reason it was decided to conduct a marketing research which should elaborate mainly following aspects: •
Analyses existing situation of Wine Tourism Sector in Georgia (Status quo in Kakheti region);
•
International perspectives of wine tourism, market demands and specifics for promoting wine tourism packages;
•
PR and Marketing of Wine Tourism products
Despite the fact, that Wine tourism is not a new term in Georgia, the studies regarding its development are very rare or old, and thus this research will significantly contribute to the existing knowledge about wine tourism as well as to development of sustainable win tourism products. 2.4
Objectives and Vision
The primary objective of this study is to 3
Dood, 1995, Getz.2000
4
Everything about wine tourism development
11
•
To identify status quo of wine tourism sector in Georgia
The secondary objectives include: •
To identify challenges and trends for wine tourism in Georgia
•
To compile a profile of the visitors to the wineries
•
To determine the perceived advantages and disadvantages of wine tourism for Republic of Georgia
•
To investigate the range of wine tourism products, services available at wineries in Kakheti region
•
To investigate whether the wine tourism plays an important role in the economic development of country
•
To determine the perception of wineries in the Kakheti region regarding wine tourism in branding wineries
• 2.5
To elaborate wine marketing activities and tools Research Methodology
This research consists of two stages: secondary research and primary research. The secondary research in this study comprises an in depth literature review about trends and challenges, concepts, facts and figures relevant to this study. The primary research will be carried out using email questionnaires especially in Kakheti region, which is the home of around 80 wineries, out of which most cultivate, own vineyards and are involved in wine tourism activities.
3 3.1
Wine Tourism in Georgia Introduction
The focus of this study is to investigate the status quo of wine tourism sector development in Georgia. However, before the discussion starts its important to make a brief overview of key products- wine and Tourism. This chapter describes the development of wine history and culture in Georgia, as well as provides information about wine tourism developments in Georgia, Kakheti region.
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3.2 3.2.1
The Georgian Wine Industry The History of Georgian Wine Industry
The evolution of Georgian Wine culture started 8000 years ago. Since that time the development of vine and wine sector played a crucial role in the history of Georgia. Throughout the history, there were times when the wine sector was strong enough and Georgia has supplied the surrounding neighboring countries with wine. There were also the times, when vineyards have been cut and destroyed, but wine production in Georgia has never stopped and it can be surely stated that Georgian wine counts 8000 vintages. Georgian wine has been deeply influenced by the Russian market. Beginning from 19th century, Russian Empire and later Soviet and socialistic countries became the traditional markets for Georgian wines. On the one hand, Georgian wine was favorable and has gained positive reputation on this huge market, but, on the other hand Georgian wine could not reach out to other countries and the rest of the world didn’t have the chance to know it. At the end of 20th century, political situation in Georgia has heavily affected Georgian wine sector in a very negative way. Since 2000 the sector has started becoming stronger and export has been developing fast too. Though, it was followed by the embargo on Georgian wines from the Russian side in 2006 which was a big financial loss for the whole sector in the country concerning the fact that 80% of total wine export was directed to Russia beforehand. Georgian wine companies started to find new markets, developing new products, improve the product quality and services. The awareness of country Georgia rose steadily and more people got interested in the country which presents a fascinating mixture of east and west. In country, where humans first discovered viticulture 8000 years ago. Since that time it faced many challenges and problems but the development and innovation growth of the sector has never stopped here. Winemaking remained the basis of the Georgian economy for centuries. Through the long history of the Georgian nation, the vine has gained iconic significance in Georgia. It is a symbol of regeneration, of wealth and plenty. The continuous importance of winemaking and drinking in Georgian culture is also visible in various antique works of art. South of Tbilisi in Shulaveris Gora researchers have uncovered grape pips of domesticated Vitis vinifera, radiocarbon dated to about 6 000 BC as well as 6th –millennium BC pottery fragments with wine residue from resonated. In the western province of Imereti – known to the Greeks as a Colchis, where Jason sought the Golden Fleece archeologists at Vani have found drinking vessels and other objects d’art with repousse wine motifs from th 5th and 4th centuries BC. The State Museum of Georgia has on display a cup of high-carat gold set with gems, an ornamented silver pitcher and some other artifacts dated to the 2nd millennium BC. From classical Antiquity, Georgian museums display a
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cameo depicting Bacchus, and numerous sarcophagi with wine pitchers and ornamented wine cups found in ancient tombs. From the 4th century AD, wine has gained further importance in Georgian culture due to Christianization of the country. The national saint (and bringer of Christianity to Georgia) is St Nino of Cappadocia, whose distinctive droop-sided cross is so shaped because it was made from vine wood and bound with her own hair. Georgian fighters traditionally carried vines in their armour. If they fell, a vine would grow - travelers would then know a Georgian had died there. The Academy of Higher Education seated at the Ikalto Monastery in Kakheti, offered to study Agriculture which included viticulture and vinification already in 12th century. Despite many challenges the development process and innovation growth never stopped here. Steadily more people were interested in Georgia and its wine culture. The unique selling point for Georgia which are broadly used by national tourism agency, tour companies, wine sector representatives focus are as follows: •
Georgia is one of the oldest wine-making countries;
•
Georgian wine is closely linked with the GEORGIAN culture and history;
•
There are more than 500 unique, endemic wine grape varieties;
•
Georgia offers inside view in unique wine-making methods and techniques;
3.2.2
Georgian Wine Regions
Georgia has following vitucultural zones: Kakheti, Kartli, Imereti, Racha-Lechkhumi and the humid subtropical zone. KAKHETI REGION Kakheti which grows 70 percent of Georgia’s wine and brandy grapes, is Georgia’s richest agricultural land in the south east of the country in the Alazani and Iori valleys. The climate here is moderate with an active temperature summation of 3800 to 400 grades Celsius/6800 to 7200 of and an annual rainfall of 400 to 800 mm(32in). Cinnamon forest and calcareous soils, some of them alluvial, are found in the zone. In terms of mesoclimatic conditions and types of wine produced, Kakheti can be subdivided into three macro regions (Tsinandali, Kvareli, Kindzmarauli, Manavi, Napareuli, Akhmeta, etc.) The most important for wine production include Telavi, Sagaredzho, Gurdzhaani, Kvareli, Akhmeta and Signagi. The principal grape varieties in Kakheti is Saperavi for reds and Rkatsiteli, Kisi, Khikhvi and Kakhuri Mtsvane for whites. In recent years spread of French grape varieties Chardonnay and Sauvignon Blanc has been observed too, in very low quantities though.
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Alongside more modern technologies, these regions produce the distinctive Kakhetian wines, made peculiarly tannic by fermentation in special earthenware jars (Qvevri-not unlike the tinajas of Valdepenas) followed by an extended Maceration of three of four months, very much as wines were made thousands of years BC. It is in this region that Georgians and foreign investors have invested most of their hopes for the future of Georgian wine. KARTLI REGION Kartli is the heart of Georgia, inspired the original name for the country Sakartvelo, and occupies a vast territory in the Kura valley, the Gori and Mukhran lowlands included. These wines are the most European and the region produces materials for sparkling wines (especially) and brandy that account for 15 per cent of Georgia’s wine and Brandy production. The zone is moderately warm, with hot and dry summers; vineyards have to be irrigated because of the low rainfall 9350 to 500mm (19 in) per year). Main grape varieties are Chinuri, Goruli Mtsvane, Aligote, and Chardonnay for whites and Pinot Noir, Tavkveri, and other for reds. The capital of Georgia Tbilisi, where wineries producing sparkling wines and brandy are located, is in this zone. Tbilisi’s oldest winery was founded in 1897. IMERETI REGION Imereti is the ‘stomach’ of Georgia, its gastronomic capital and keeper of national traditions, not least Georgia’s famous hospitality. In the first half of the 19th century, Imereti’s capital Kutaisi was the centre of Georgina wine-making and wine-trading. Imereti is in the eastern part of Georgia, in the basins and in the gullies of Rioni, Kvirila, and other rivers. The most important grape varieties are Tsitska, Tsolikauri, and Krakhuna for whites and Aladasturi, Dzelshavi, Mgaloblishvili, and Otskhanuri sapere for reds. Nowadays the most important Imereti wine regions are Zestaponi, Terdzhola, Vani, and Bagdati. As well as modern European methods, Imereti also uses a very particular winemaking technique, similar to kakheti’s except that grape skins (kvevri, here called Churi) are added to the clay jars during fermentation, and this is followed by a maceration of six to eight weeks. The vine variety particular to this region is Tsitska. RACHA _ LECHKHUMI REGION Racha-Lechkhumi is Georgia’s smallest wine region but one of the country’s most important wine-making centers. It consists of two sub regions, Ambrolauri and Tsageri, north of Imereti, on the banks of the Rioni and Tskhenistskali rivers. Moderate rainfall (100 to 1300 mm (50 in) a year), southern exposed soils, and the assortment of local vines varieties such as Tetra, Tsitska, Tsolikauri for whites and Aleksandrouli., Mudzhuretuli, Usakhelouri, Orbeluri Odzhaleshi, and Saperavi
for reds encourage grapes with a sugar content as high as 30 per cent. The region is famous for its natural semi-sweet wines such as Khvanchkara. The humid subtropical zone is a vast territory which contains Abkhazeti, Achara, Guria, and Samegrelo, all known for both semi-sweet and dry wines.
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As for today the total vineyard area in Georgia sums up to approximately
5
45 thousand hectares, which
is significantly less compared to this data 30 years ago (almost 120 thousand hectares) and is approximately equal to the number from 1930’s. New cadastre system is carried out by National Wine Agency and will be available end of 2015.
Area of vineyards in Georgia (1000 hectares) 112.3
120
98
100 93.3
80
47.125
40
55.503
41.405
45
52.149
48.142
37.472
20
2004
1990
1985
1980
1975
1970
1965
1955
1953
1947
1940
1937
1926
1917
29.5
1914
0
73.5
54.743
51.862
1921
60
103.3
111.5
The most developed wine region is Kakheti. It is also home for around 80 wine companies. The second big wine region Racha Lechkhumi only has 2 main wineries and various small wine producers, mainly family owned wine cellars. Kartli and Imereti regions just started to redevelop wine production, so only few private, family owned wineries exist here. Due to the lack of data no detailed statistic can be provided elaborating number of companies, private owned wine cellars in these regions. 3.2.3
Georgian grape varieties
Wild vines are widely distributed in Georgia, where Vitis Vinifera Silvestris can still be seen. By both natural and artificial selection, they have given rise to among existing 4000 vine sorts more than 500 are indigenous grape varieties of Georgia. Only 38 varieties are officially grown for commercial viticulture in Georgia. Thirty-eight grape varieties are officially allowed for commercial viticulture in Georgia including Saperavi and Rkatsiteli, the two most widely planted varieties, plus, Chinuri, Goruli, Mtsvane, Kakhuri Mtsvane, 5
According to 2004 census, the total area of vineyards in Georgia has summed up to 37.5 thousand hectares. Though, the census did not include the vineyards in the possession of the residents of the following cities: Tbilisi, Rustavi, Kutaisi, Poti and Batumi, which sum up to approximately 7-10 thousand hectares altogether.
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Odzhaleshi, Orbeuli, Odzhaleshi, Aladasturi, obchuri, Dzvelshavi, Aligote, Tsolikauri, Tsitska Pinot Noir, Chardonnay, cabernet Sauvignon, as well as the the following uniquely Georgian high-quality varieties: Usakhelauri, Aleksandrouli, Mudzhuretuli, Otskhanuri Sapere, Krakhuna, Chkhaveri, Tetra and khikhvi. These last do not yield generously and so were largely ignored in the soviet era. One of the difficulties Georgia currently faces in exporting wines is that foreign consumers are so unfamiliar with the flavors of these traditional Georgian grape varieties. The main grape variety in Georgia is Saperavi under reds and Rkatsiteli under whites. The graph below demonstrates the distribution of grapes in Kakheti region. Figure 3.1 Grape varieties in Kakheti Region
Grape varie<es
1%
3%
1% 1%
1%
Saperavi Rkatsiteli
5%
7%
Mtsvane
32%
7%
Kisi
7%
khikhvi
9%
Sauvignon Blanc 26%
Cabernet Sauvignon Mtsvivani Kakhuri
If would have a closer look to the vineyard area in Kakheti region, we would see that Saperavi still remains the main grape variety cultivated by wine companies and grape growers. Rkatsiteli is on the second place due to its high yield and high level of resistance.
Figure 3.2 Grape yield per ha in Ton
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Sauvignon blanc, Saperavi, 7.29 8.5 Rkatsiteli, 6.77 Khikhvi, 3.72 Kisi, 6.5
chardonnay, 29
Mtsvane, 5.5 Merlo, 8
Cabernet sauvignon , 11
*the international grape varieties are mostly cultivating by one single company Besini. Based on the figures above it could be summed up that the red wine production has a leading role on the market. Consequently more red wines are sold on international markets. Figure 3.3 Wine sales
Other 2%
Sales 0%
White wine 33% Red Wine 65%
3.2.4
Winemaking technology
Georgians wine culture, based on its ancient ways and indigenous varieties, was influenced by Europe in 19th century, when Alexander Chavchavadze – poet, aristocrat, military officer and diplomat, introduced European wine and wine making practices to Georgia. With a million ruble investment, Chavchavadze acquired qvevris, constructed a Marani (wine cellar) and established a barrel workshop at Tsinandali. Further exchanges between European and Georgian grape varieties/ wine started thanks to Alexander Chavchavadze. Antoine Mosanno planted Cabernet Sauvignon vines in the eastern province of Kakheti,
18
the exchange with Germany in the early 20th introduced the Muscat variety to Georgia. Thus European “Wine making Techniques” come to Georgia. Nowadays, the majority of Georgian wine companies are producing wine using high quality modern facilities and techniques. However the traditional Georgian Winemaking technique is still widely used in whole Georgia. Wine made according to the “Kakhetian style”, where it is aged and stored in a special cone/egg-shaped clay vessel known as a Qvevri has a great vogue not only in Georgia. The earliest qvevri known to store wine date from the early Iron Age (7th century BC). Modern Qvevri can store from 800 to 3500 liters. Qvevri is placed in the ground, helps to regulate storage temperature, keeping it between 14 and 15°C. Wines produced in this way are noted for their high extraction and tannic content, distinctive aroma and unique taste. Qvevri wine-making techniques differ from each other in Kakheti, Racha (here calls a churi), Kartli and Imereti. Knowledge and experience of Qvevri manufacture and wine-making are passed down by families, neighbors, friends and relatives, all of whom join in communal harvesting and wine-making activities. Children learn how to tend the vines, press grapes, ferment wine, collect clay and make and fire Qvevris through observing their elders. Since December 2013 the ancient Georgian traditional qvevri wine-making method has been approved for inclusion into UNESCO’s List of Intangible Cultural Heritage (ICH). 3.2.5
The business environment of Wine Industry in Georgia
All industries, including the wine industry, function or operate in the marketing environment6. A winery’s marketing environment consists of everything inside and outside the winery and can be defined as all the factors that influence the marketing activities of the winery, either directly or indirectly7. The market environment of the wine industry is composed of the micro environment and the macro-environment.
8
There are several variable within the marketing components that influence the winery : •
Competitors,
•
Intermediaries
•
Political&social environment
6
Bennett&Strydom, 2001:24
7
Bennett&Strydom, 2001:24
8
Kottler&Amstron, 2006:65
19
Figure 3.4 Marketing environment of a winery
Macro environment
Socia l
Political
Micro-‐ enviroment Suppliers
Technological
Customer s
Winery
Economic
Competitors
Intermediaries
A winery which aims to achieve success and performance in development should be aware of these variables and must be proactive in leading the business in the right direction. 3.2.5.1 The macro environment of Georgian Wine (Tourism) Industry The macro environment is composed of all the dimensions in broader society that influence an industry and the organizations within it
9
. Generally organizations cannot directly control external (macro)
environment, but these elements and changes in the external environment have a major influence on organizations.
10
The elements in the external (macro) environment are popularly referred to PESTE
factors. PESTE stands for •
political
•
economical
•
social
• technological 9
Ehlers&Lazenby, 2007:103
10
Nieuwenhuizen&Rossouw, 2008:21
20
•
environmental factors
Each of them are themselves influenced by •
local
•
regional
•
national
•
global factors.
3.2.5.2 The micro environment of Georgian Wine (Tourism) Industry The micro environment of wine industry refers to all factors or element within the company that influence its performance and decision making process and could be controlled by business11. The most influential factors include: •
Competition
•
Suppliers
•
Consumers
•
Intermediaries
3.2.6
SWOT analysis of Georgian Wine Industry
The SWOT analyze of Georgian Wine Industry is provided on the one hand to monitor external and internal marketing environment, on the other to summarize the trends, challenged and opportunities within the Georgian Wine Tourism Sector Figure 3.5 SWOT ANALYSE Georgian Wine Strengths •
•
Weaknesses
The variety of wines and wine growing •
Low domestic per capital consumption (18-
regions
20)
Unique terroir with many different soils and •
Low Awareness at international level about
different miclo climates
Georgia and Georgian Wine
•
525 Endemic grape varieties
•
Consumers interest in Qvevri wines
Production quality cannot be properly
•
managed or predicted Wine Export difficulties (high prices & weak
• 11
(Kotler&Armstrong, 2006) : 65
21
distribution channels ) Opportunities
Threats
•
Wine Tourism
•
Wine embargo (Russia)
•
Qvevri (wine making&qvevri building)
•
Competition from other emerging wine
•
Good trade relations with CIS countries, Baltic states, “new Europe”
•
markets (e.g. China) Over production of wine worldwide
•
Social trends towards “new” wine making •
Taxes and excise duties
countries,
Global warming
indigoes
grape
varieties, •
traditional wine making methods – Qvevri •
Social media marketing
•
Increasing exports to USA, ASIA
Natural disasters
•
•
3.2.7 The Development of Georgian Wine Tourism Industry The first official visits to vineyard were part of organized travel since the time of the Grand tour, and likely even since the times of ancient Greece and Rome12. However, wine only became a specific travel interest during the mid nineteenth this century13. There reasons could be summarized as follow: •
Transport evolution
•
Social revolution
•
Development of specific wine tourism products
•
Desire to experience new countries and Wine
The development of Wine tourism in Georgia started in late 2000. Despite the fact that since that time many things are done, a lot of investments have been made there are still many gaps and challenges for proper Development of Georgian Wine Tourism. The lack of national tourism strategy leads to the fact that there is no joint vision how to develop and what to do in specific regions and specific places. With the support of world bank the national tourism Agency is currently working on Tourism Strategy which would significantly support various tourism activities and events on the one hand, on the other provide right directions for tourism sector Developments
12
(Hall, C.M& Mitchell, M, 2006, 2000),
13
(Hall C. , 2000)
22
3.2.8
Wine Tourism in context According to the World Tourism Organization, travel and tourism is regarded as the world’s Agro Tourism
largest and most diverse industry14. Along with activities such as sports, hobbies and pastimes, tourism is a form of recreation. Recreation is defined as discretionary use of people’s leisure
Culinary Tourism
Wine Tourism
Eco Tourism
time15.
Sustainable Tourism
Figure 3.6 Wine Tourism linkages to other Fields and activities
Tourism can be approach from three different perspectives: •
Industry
•
Activity
•
System
When Tourism is approached as an Industry , then definitions usually focus of the supply of tourism16. When it refers to activity, then it tends to focus on demand 17. 14
(WTO, 2007b, p. 1)
15
(Hall&Page, 2006)
16
(World Travel and tourism Council's)
17
(Lubbe, 2003)
23
As a system, Tourism combines the demand and supply of Tourism18. There is no single definition for Wine Tourism. (Hall, 1998) define wine tourism as follows: “...visitation to vineyards, wineries, wine festivals and wine shows for which grape wine tasting and/or experiencing the attributes of the grape wine region are the prime motivating factors for visitors”. Other authors say that wine tourism involves also developing a marketing and planning strategy19. In the Western Australian Wine Tourism Strategy (2000), Wine tourism is defined: “...travel for the purpose of experiencing wineries
and wine regions and their links to lifestyle. Wine tourism encompasses both service provision and destination marketing”. Therefore wine tourism should not be understand as a single activity in vineyard. It is related to many other fields vs. activities
3.2.9 Market segmentation Wine tourism market could be segmented in Georgia as follows: Wine lovers
Wine Interested
Wine novice
Extremely interested in wines
High interest in wine
Moderately interested in wine
and winemaking (especially
but
not
old traditional wine making
winemaking
familiar
with
techniques) Wineries may be sole purpose
Moderate
to
high
income
of visit to destination
bracket, tend to be university
Wineries seen as “just another attraction”
educated Will have visited other wine
Likely to have visited other
May have visited other wine
regions
wine regions
regions
regular
Occasional purchaser of wine
Moderate
purchaser of wine and food
and food magazines, Regular
education
magazine
purchaser
Likely
to
be
a
of
income
and
lifestyle
18
(Hall&Page, 2006, p. 114)
19
(Getz D. D., 1999)
24
magazines May be employed in wine and
Familiar
with
winemaking
Curiosity aroused by drinking
food industry
procedures
or seeing winery products
Highly likely to purchase at
Likely to purchase at winery
Opportunity
winery and add name to any
and add name to any mailing
interaction with friends and
mailing list
list
family
Potential for repeat purchase
May purchase at winery but
of wine though having visited
will not join mailing list
for
social
winery Source: Hall&Macionis20
3.2.10 Georgia a niche market for international visitors According to Getz21 Wine tourism represents a kind of travel to a niche markets. Georgia could be seen as a niche market for international visitors due to its •
history – 8000 vintages
•
525 endemic grape varieties
•
Qvevri wine
•
Landscape
•
Customs and traditions
•
Georgian Cuisine
•
Wine and Food pairing
3.2.11 Wine Tourism system The Wine Tourism System is complex framework which includes consumer demand for wine tourism and the industry supply of the wine tourism product to produce the wine tourism experience22 . The main point of the model is the wine tourism experience or what the wine tourist gets while traveling over the world. 3.2.12 Profile and Motivations of Tourists Similar to the wine tourism definition wine tourist profile divers from country to country. Depending on the country’s location, continent and climate where are various characterizations of wine tourists. 20
(Hall&Macionis, 1998, p. 217)
21
(Getz D. , 2000)
22
(Hall C. , 2000)
25
There are three main categories of tourist visiting Georgia: •
Accidental
•
Interested
•
Dedicated
Accidental or curious tourists Visit Georgia because there are curious to see Georgian wineries and regions in general, but would like also to taste and visit Georgian wineries, mostly the traditional and small once. So the cellar door visit is an opportunity for socializing. Their knowledge about wine is below average, but there are moderate interested in wine. Due to the moderate income and education in Wine they may purchase some bottles but unlikely to buy expansive one. Interested wine Tourists •
Cellar door visit is an enhancement to their trip, but not the prime motivation for visiting the region.
•
Moderate to high interest in wine
•
Moderate to high income, usually tertiary educated
•
Likely to have visited other regions or will come back to do it
•
Likely to buy expensive wines and recommend it also to friends
Dedicated wine tourists •
Wine lovers who visit wine regions frequently as an integral part of a trip
•
Above average knowledge of wine
•
Extremely interested in wine and winemaking
•
Mature, high income, high education level
•
Likely to purchase wine at winery and come back to the region and winery
However the perceived profile of tourists to the wine regions cannot be provided as the majority of wineries do not compile statistic. Hence the statistics are based primarily on the National Tourism Agency’s figures.
26
Figure 3.7 Tourist in Georgia
22%
5,392,303
5,059,832
2013
2014
4,428,221 57% 39% 35%
2,822,363
2,031,717
1,500,049
2009
2010
2011
2012
Ministry of internal affairs
While in France, Germany or Spain the amount of domestic (50.5 %) and international (49.5%) travelers to wine regions is almost the same, in Georgia the majority of visitors are international tourists. The chart bellows demonstrates some figures and countries from where the travelers are coming: Figure 3.8 Countries of origin
Countries 51389
Visitors 33537 7410
2290
1589
878
552
321
289
186
182
There is a little difference between the number of male (53%) and female (46%) visitors. The small variation in gender may indicate that wine consumption and visiting a winery is not gender specific, but an activity that is enjoyed equally by both men and women.
27
Figure 3.9Tourists Gender
Tourists Gender Female
Male
45% 55%
The largest age group of visitors is the category 25-44 (40 %). The smallest group of visitors (12%) are older travelers 65+. It could be explained that the travel routes to Georgia are quite complicated. There are only some direct flights in other cases travelers have to change at least one flight and spend several hours in transit countries.
Age 25% 20% 15% 10% 5% 0% 15-‐17
18-‐24
25-‐34
35-‐44
45-‐54
55-‐64
65 and over
The duration of travel in Georgia is approximately up to 3 days. The majority of visitors are traveling alone or with the family members and friends. The chart below demonstrates the detailed picture.
28
Figure 3.10 Accompanying person
50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Following motivation factors have been mentioned by visitors: •
To experience the ambience of the winery
•
To experience the oldest wine culture and history
•
To taste unique wine (Qvevri, Kakhetian Style etc)
•
To taste completely different grape varieties
•
To experience different wine regions
•
To learn more about qvevri wine making techniques
•
To taste already well known Saperavi, Kindzmarauli, Khvanchkara, Mukuzani
•
Wine purchasing
•
Enjoy the health aspects of wine
The average expenses of each visitor is around 300 US $. Thereby around 150 US $ is spending on wine activities. The comparison to other countries where the travelers spend between 30 and 200 US $, 150 US $, is not bed. The spending differs according to the different regions and possibilities to spend money. As already mentioned the rural area in Georgia is quite undeveloped so no services, good accommodation or shopping possibilities could be offered to the guest. The development of these areas would on the one hand support the local population on the other improve economic situation there.
29
The tourists mainly arrive by mini bus or private vehicle. It means that mainly tourist from neighborhood countries are coming to Georgia. Figure 3.11 Means of transport
Means of transport 3% 6%
Train Bus/minibus
38%
Private vehicle
53%
Rented vehicle
They mainly stay at private homes or apartments, or share a flat with friend and relatives. The majority of travelers is not staying overnight and only passing Georgia while going to another point of destination. Figure 3.12 Accommodation types
Accomoda<on Types 47% 31%
10% 1%
1%
0%
1%
0%
1%
2%
6% 0%
0%
The tourist usually spend one day in Tbilisi and than they are traveling to other Wine regions and cultural sites. The popular wine region in Kakheti with the cities Gurjaani, Telavi, Sighnaghi.
30
Figure 3.13 Popular Places by tourists in Georgia
Popular Places
Gurjaani Zugdidi (Dadiani’s Palace) Tbilisi Telavi (King Erekle’s museum and palace, Sighnaghi (Bodbe Monastery) Rustavi Mtskheta (SveAtskhoveli Cathedral, Jvari Marneuli Kutaisi (GelaA monastery, Bagrat’s Cathedral, Gori (Stalin’s museum, Gori fortress) Borjomi (Likani, Mineral waters, Green monastery, Batumi (KvariaA, Botanical garden, Gonio fortress)
1.20% 3.10% 25.90% 4.10% 1.40% 3.30% 2.40% 3.40% 11.40% 3.80% 1.20% 4.90%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
As marketing and PR play a crucial role in the development of wine and tourism field in Georgia, it’s quite interesting to have a look on the main source of information. Figure 3.14 Information source
I don't know Book From school Doctor Magazines/Newspapers Internet Travel fairs Travel agency / Tour operator Travel guidebook Television / Radio Previous visit OrganizaAon/business partner Friends & relaAves I don’t remember
1% 0% 0% 0% 0% 3% 0% 0% 0%
InformaAon source
12% 58% 2% 36% 8%
Books, Magazines, Travel Fairs or travel agencies influence only 0.3% of travelers to come to Georgia, thereby previous visits, friends or relatives have a great influence of tourist decision making process. The best time to discover Georgia is spring and summer. The beginning of autumn is an ideal period to participate in wine tourism activities such as harvest, wine festivals, experience various wine making techniques and other activities related to wine industry.
31
3.2.13 Accommodation types The massive development of Hotels and Guest houses started in Georgia together with tourism sector development. Currently around 1000 private guest houses, hotels, motels and star hotels are operating in Georgia. The distribution of numbers is quite diverse depending on the infrastructure capacities, commodities in the region and tourism destination sides. Kakheti, the home of Georgian Wine culture has 144 Guesthouses and hotels, while in Adjara more than 250 accommodation possibilities exist. Very divers is also the quality and price ratio. The prices range from 20 US dollar up to 300 US dollar. The charts below present the accommodation quantities in the regions. Figure 3.15 Accommodation quantities in the regions
Accommoda<on Mtzkheta MAaneA Shida Kartli Kvemo Kartli KakheA ImereA Samtzkhe JavakheA Racha Lechkhumi/Kvemo SvaneA Guria Samegrelo/Zemo SvaneA Adjara 1
2
4
8
16
32
64
128
256
The most common accommodation types used by visitors are private homes (31%) and apartment (10%). The next most common accommodation option is a second residence (6%) or rented apartment (2%). The detailed breakdown of accommodation types used by wine visitors is presented as follows:
32
Figure 3.16 Accommodation types
Accomoda<on Types 47%
31%
10% 1%
1%
0%
1%
0%
1%
2%
6% 0%
0%
There are some donor organizations like GIZ that started to work on Guesthouse issues in Regions. For Tsageri and Anakli are the first regions chosen by GIZ at this stage where the project aims to develop standards for guesthouses supporting so the development of the region and wine and agro tourism field. 3.2.14 Catering (Food and Wine) Despite the fact that there are thousands of restaurants in Georgia offering delicious Georgian courses, the number of wine bars and wine restaurants is very low, although no statistic data is available. 3.2.15 Wine and Entertainment The Tourist coming to spend their holidays in another country wants not only to spend their vocation in nice and comfortable environment but also to experience something new, different or unusual. Most tourists coming to Georgia tend to be most interested in art and culture tourism activities. The top ten activities they tend to do include experience Georgian folklore, shopping, food and wine pairing, adventure tours etc. The chart displays the type of activities undertaken by tourist.
33
Figure 3.17Types of activities 35%
33%
30%
28%
24%
25% 20% 15%
8%
10%
11% 6%
6%
5%
3%
1%
1%
5%
7% 1%
0%
International wine tourists are predominantly holiday visitors and travelers coming to visit their friends and relatives. There is also a significant segment of visitors coming for shopping purpose. Only 3% of wine tourist are in Georgia on business and 2 % ate here for education Figure 3.18 Purpose of visit Georgia 37.80%
Purpose of Visit Georgia
15.90% 5.40%
9.80% 1.70%
9.60% 3.90%
0.90%
1.60% 3.00% 1.70% 2.40% 2.50% 2.30% 1.40%
34
3.2.16 How satisfied are the tourist In general Georgia delivers high satisfaction for international holiday tourists and this is no different for wine tourism. Wine visitors, with an average ration of 8 out of a possible 10, tend to be slightly more satisfied with their visit to Georgia than the average visitors, who average 7 for overall satisfaction. Due to the lack of statistic data the comparison with other countries is not possible. To sum up the finding above we would get following profile of wine tourists: •
The largest visitor group is between the ages 25-45;
•
They usually travel alone or with Family members;
•
The average spending is around 150-120 US $ on Wine related activities and totally around 300 US $ for a visit;
•
The average duration of stays is 3 Days, in wine regions 2 Days;
•
Majority of wine tourists come from former CIS countries and neighborhood states;
•
The majority of wine travelers are international tourists. Domestic wine tourists are mainly coming from the capital of Georgia Tbilisi. However the level of domestic wine travelers is quite low;
3.2.17 Advantages and disadvantages of wine tourism for wineries The number of tourists in wineries diverse from company size and location. In total 80 companies are operating in Kakheti, from which the majority includes wine tourism to their activities. Those, who are not currently working in wine tourism field plan to do it in the nearest future. Even the Grape growers are thinking to start with the wine tourism activities and offer tourist various services in vineyards. Wine tourism ability to create brand awareness, increase revenues, improve indoor sales and improve networking is perceived as the principal advantages of wine tourism. The most important benefits of wine tourism for wineries and community in general are the improvement of their image (68.9%) and the increase of revenues (61.9%) in country Georgia. Also other factors such as indoor sales and networking could be mentioned as an additional advantage in this field.
35
Figure 3.19 Benefits of wine tourism development
Benefits of wine tourism development Winery/brand posiAoning
53.80%
Increase tourism affluence
52.80%
Improve image
68.90%
Increase revenues 0.00%
61.90% 10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
The main disadvantages that could be observed in Georgia are: •
The lack of transparency;
•
lack of joint strategy;
•
No willingness to cooperate and implement joint activities;
•
Lack of controlling mechanism allowing to control and monitor product and service quality;
3.2.18 Trends and Challenges in Wine Tourism It has been noticed that in many countries wine is simultaneously an expression of the culture of a territory and a reservoir of traditions rooted in antiquity. It identifies a local community and its identity. Wine is also a part of the heritage of a place. It is especially closer to it when it is identified by quality labels and brands that protect its identity and depend on the territory in which it is produced Considering the history of the wine and tourism development in the world there is a big gap between “ new world wine cities” and the “European cities”. In general the old wine cities (Bordeaux, Mainz, Porto, Bilbao, Florence etc) have a wine tradition that goes back to the 17th century while the new world wine cities (Cape town, Napa, Mendoza) have a younger wine tradition that goes back to 90s) In Georgia the development of wine started 8000 years ago, however according to developments and trends the wine tourism activities are quite young. The first experiences around wine tourism strated in Georgia in the late 2000. In the last five years wine sector has shown significant growth. New trends and innovations have been established in wineries. Mainly Kakheti benefited from the last development in
36
wine and tourism field, however the last developments gave also other regions a chance to benefit from various activities and marketing and PR elements. Trends such as: •
wine roads,
•
wine tourism guide
•
wine tourism portal- Georgianwine.travel
•
wine map
•
grape varietals guide
have been developed and implemented here There are still many gaps and rooms for improvement, however in case of strong support (financial and technical) significant improvements could be done achieving thus sustainability and long-term profitability. The major challenges for the region and for the better performance of wine tourism field could be summarized as follow: •
Competition on the market;
•
Lack of green and eco friendly approach;
•
Low awareness on international market;
•
Bad Infrastructure;
•
Product quality and price ratio;
•
Lack of information;
•
Lack of human resources;
•
Lack of transparency and networking;
•
Natural disasters;
•
Conflicts;
•
Global and domestic economies;
•
Lack of wine clubs, restaurants, bars, tasting rooms;
•
Lack of signposts;
•
Poor developed wine roads ;
•
Difficulties with wine distribution;
Some challenges could be overcome while developing a good wine tourism strategy which would include various Marketing tools and support the development and performance of wine tourism sector. . Good communication with similar business entities could be mentioned also as a vital support tool. Currently the majority of wine companies are not organizing wine related activities with similar business representative; however the joint activities could significantly reduce the costs of events and raise awareness.
37
Study tours and best practices from other countries could also play a crucial role in the development of this field. The Georgian wine tourism sector would do much better, if it would provide tourists with memorable experiences that keep them coming back time after time – and bringing their friends and relatives. Some of the world trends are already implemented in Georgia, some are still underdeveloped and some have to be implemented. #1 – Wine Roads –Any wine region that wants to be taken seriously has taken the time to develop maps which list their wineries and provide information on hours of operation, website, phone numbers, and directions. In addition, the wine maps may also include local restaurants, hotels, and other tourist sites. The maps are provided free on the web and in brochure format, and are very helpful for tourists planning a trip. Wine roads do exist in Georgia but are poorly developed. More efforts are needed to make the roads and legend to work. #2 – Wine Community Partnerships – Successful wine regions work in partnership with local hotels, restaurants, airports and transportation companies to make sure that tourists have a way to find them. Often they hire an Executive Director of Wine Tourism and Marketing for the region that is responsible for developing these community partnerships and tours. A good example is in the Hunter Valley of Australia where they pick-up visitors at the Sydney airport and transport them 2 hours to the valley where they spend 4 days visiting wineries, including hotel and meals. The wineries of Hunter Valley work together with local tour operators to create this beneficial partnership. #3 – Special Wine Events and Festivals – Many wine regions host special events and festivals, but the most innovative regions think “out of the box” in developing unique events. Georgia started to organize some special wine events and festivals like “Tsinandali Wine Festival, Georgian Wine Day, New Wine Festival, Cheese and Wine pairing Festival. However more efforts are needed to attract more tourist and promote Georgian wine culture. #4 – Experiential Wine Programs – Related to special events is the new practice of offering wine tourists unique experiential programs. For example, in Napa and Sonoma valleys of California, it has become common for visitors to participate in wine blending seminars where they mix together different types of wine to create their own customized bottle – such as a Bordeaux blend with merlot, cabernet sauvignon, and malbec. Next they design their own wine label and get to take the wine home with them. Some companies in Georgia also stated to implement these practices however they are rare in nature and need more creativity. #5 – Link Wine to Regional Tourism – Smart wine regions make sure to link to other local tourism sites. This is a win-win strategy for everyone involved because the more activities that can be advertised, the more likely the region will attract greater numbers of tourists. For example, tourists visiting Beijing for the first time always want to see the Great Wall and the Forbidden Palace, but now many also want to
38
taste the local wine and visit famous wineries such as Chateau Changyu and Jinshanling. In case of Georgia Chateau Mukhrani or Tsinandali Palace can be used as a link between the wine, culture and history. #6 – Unique Partnerships – Linking up with different types of partners, rather than just the usual marriages of food, wine, music, and art, is another best practice of successful wine regions. For example the wineries in Okanagan Valley of Canada have joined forces with the many golf courses in the area to provide experiences that include both golf and winetasting, such as their “Chip & Sip” experience. Likewise, the Sonoma Mission Inn Spa in California has teamed up with local wineries to offer afternoon wine-tastings for visitors who have spent the day at the spa enjoying such wine-related treatment as a Chardonnay Scrub and massage. #7 – Wine Villages – Some wine regions have committed the time and resources to create a “wine village.” This is a town in the wine region that is designed specifically around the theme of wine. There are generally multiple winetasting rooms within walking distance that tourists can visit. Restaurants in the village cater to the wine tourist and provide food that matches local wines. Hotels offer rooms and packages designed around a wine theme. In some cases, these wine villages are quite old and have been known as a wine center for generations, Other regions have created their wine villages from scratch. In case of Georgia this example could be used to develop Kvareli and Telavi municipalities and offer tourist unforgettable experience. #8 – Focus on Art & Architecture – Some wineries attract visitors by adding art galleries, sculpture gardens or other unique art-related items. For example, both Bodegas O Fournier Winery outside of Mendoza, Argentina and the Hess Collection Winery in Napa Valley, have famous art collections that visitors can see while tasting wine. Other wineries use architecture to attract crowds, such as Vina Mar Winery in Casablanca Valley, Chile with its beautiful Moorish-influenced building, and the impressive Chateau Changyu Moser XV in the Ningxia wine region of China (featured photo above). #9 – Food & Wine Matching – Another best practice is targeting tourists who enjoy the culinary aspects of wine tourism. Generally this is implemented by a wine region organizing special food and wine tours or events. A good example is the Wine & Paella Event held every spring in Baja, Mexico where the local wineries match their wines to many different types of paella rice dishes. Another case is the Wine & Food Showcase celebrated every autumn in Sonoma County where the local restaurants pair up with wineries to showcase their food and wine pairings. There are also many food and wine tours offered in the various wine regions of France and Italy throughout the year to attract tourists. Despite the fact that Georgia has very delicious cuisine the wine and food pairing issue is still very weak. There are some culinary academies and centers supporting this field, however it would be recommended to enhance this cooperation (wineries and local restaurants) and offer region specific food with the local wine.
39
#10 – “Green” or Ecotourism Focus – For wine tourists who seek organic and biodynamic wines, or those who enjoy begin around nature and in the outdoors, a newer best practice is an emphasis on “green” or ecotourism aspects of wine. For example, some wineries offer special tours and educational programs on how they craft organic and biodynamic wines. Parducci Winery in Mendocino County of California is the first carbon neutral winery in the US, and they provide special tours of the vineyards to describe their environmental practices. Likewise, Banfi Winery, in Montalcino, Italy, that has the distinction of being the first winery in the world to achieve environmental certification in ISO14001 and SA8000, also offers tours and explanations of their special “green” practices. Also, Saturna Island Winery in Canada responds to ecotourists by encouraging them to taste wine and then go boating around the island in search of whales. This field is very undeveloped in Georgia and it would be recommended to pay more attention to it. #11 – Unique Wine Tours – Another cutting edge practice is offering very unique tours for winery visitors. These are usually targeted at the more adventurous wine consumer or for those who have already visited a specific wine region and are looking for something different. An example is “wine & kayaking” as offered by Chatham Winery in Virginia, or a “river-rafting and wine tasting” as offered by Southern Oregon Wineries working in partnership with a local tour company. Other examples include 4wheel jeep drives through Steinbeck Vineyards in Paso Robles, California, or wine and hiking tours. #12 – Social Media for Wine Tourism – Finally many wineries and regions are catching onto the benefits of using social media to attract wine tourists. This includes making sure those tourists who use their mobile phones and the Internet to seek information on which winery to visit can easily locate the winery. They do this by ensuring GPS directions are correct, that they are easily found in search engines, and that they have a website that is also designed for mobile phone users. Several wine regions have gone so for as to develop “apps” that can be downloaded onto a mobile phone to provide winery information, maps, and even coupons and tasting fee discounts. Finally, savvy wineries have set up Facebook fan pages and work with other sites, such as Trip Advisor, to make sure they can interact with wine tourists. To conclude this chapter, wine tourism continues to increase about the world in popularity, and wine regions recognize the positive economic benefits derived from wine tourists, the adoption of these twelve best practices will spread to even more countries. 3.2.19 Wine Tourism Product characteristics and benefits Wine tourism can be characterized as a lifestyle experience that can be part of other travel experiences. In Georgia it is also a part of Georgian culture and history. It enhances the economic, social and cultural value of wine regions and is linked to the local lifestyle such as food, accommodation, arts and crafts as
40
well as an environment. Wine tourism product can consist of a whole host of different facitities and services to cater the traveler. In general Georgia offers following products and services in wine tourism field: •
Wine tasting facilities
•
Cellar door sales
•
Guided winery tours
•
Bio products
•
Qvevri Wine
•
Wine Festivals and events
•
Wine restaurants and bars
•
Overnight accommodation in guesthouses, hotels, apartments
•
Offer entertainment and leisure activities such as wine spa, participating in harvest, hiking or biker trails, rafting etc. (The combination of wine tourism with adventure tourism is quite new in Georgia but is slowly implemented and accepted by companies and tour agencies)
Figure 3.20The tourist facilities available in Georgian winery Wine Tasting
Restaurant or cellar lunches
Cellar door sales
Fresh
produce
Vineyard walking
sold
(Farmstall) Winery organized tours or Craft or gallery or souvenir
Animal feeding or watching
educational tours
shop
Meeting the winemaker
Social function facilities
Visitor center
Conference facilities
Historical building or museum
Overnight accommodation
Wine or other festivals
Picnic facilities
Tractor or trailer rides
Barbeque facilities
Horse or pony rides
Fireplace
Petrol or filling station
Hiking or biker trails
Source: (Getz D. , 2000, p. 7), (O'Neill&Charter, 2000, p. 113) (Treloar, 2004, p. 6) Taking in account all these facilities, Georgian wine companies benefit from the following: Benefits to the wine industry
Benefits to the wine region
Benefit to host communities
Increase wine sales
Increase awareness and a
Attracts new investments
number of visitors Educate visitors and foster
Increase spending within the
Develops
new
facilities,
41
brand loyalty
region
Attract new markets
Attracts
amenties new
and
repeat
Develops infrastructure
visitors Increase profits from winey
Develops positive destination
sales
image
(Improve) Networking
Earns foreign exchange
Creates part &full time jobs Generates
secondary
economic activity (multiplier effect) New partnerships New Ideas, new Visions The increase of wine tourism product is vital, although the data cannot be compared and evaluated in comparison to the previous findings as similar researches have not been conducted yet. To see the real benefit of wine tourism, evaluate the situation and see the new trends and challenges of the wine (tourism) sector, it would be recommended to conduct similar research in 2 years. 3.2.20 Services offered by Tour Agencies in Georgia The main aim of the tour agencies is on the hand to support tourism development and raise awareness of the country worldwide on the other build network, offer various services and make life of the travelers easy. After collapse of Soviet Union, in early 90 the first Georgian tour agencies started to operate in the country. Slowly the demand for tour agencies and tour operators rose. While in early 2000 only few companies operated in the country in 2014 we have more than 100 Tour agencies. However, similar to the wine sector, the statistic data is missing also here. No organization or unite can give precise information about companies number and field of operation. In general the tour agencies are offering following services to tourist in Georgia: •
Management and planning of all kind of Tours §
Leisure Tours
§
Business Tours
§
Adventure Tours
§
Wine Tours
§
Wine and Food Pairing
§
Pilgrim Tours
§
Bird watching etc.
§
Transportation
42
•
Visa issues
•
Accommodation etc.
Aspects of wine tourism and wine – food pairing have been discussed already in the previous chapters. Consequently, the next chapters would summarize other services which are related to wine tourism. 4
Wine Tourism Marketing
4.1
Introduction st
In 21 century Marketing plays a crucial role in the development and promotion of any kind of services, product or field. Wine tourism is no exception.. 4.2
Marketing process
According to some researches the crucial elements for business to succeed and earn profit are: •
survival
•
profitability
•
growth
In order to obtain these objectives, businesses (in this case wineries and tour agencies) must build profitable and valuable exchange relationship with customersi. And these relations are building by good marketing management, which is defined as a process of planning and executing the conception, pricing, marketing communication and distribution of idea, products and services to create exchanges that satisfy individual and organizational goals23. Georgian Wine Association defines Marketing as “ The management process responsible for identifying, anticipating and satisfying customer requirements profitability , to meet organizational objectives24. Therefore marketing can be understood in Georgian as an ongoing process that involves many other participants. The whole process of marketing could be illustrated as follow: Step 1: Understand the marketplace and customer needs and wants Step 2: Design a customer driven marketing strategy Step 3: Construct a marketing program that delivers superior value Step4: Build profitable relationships and create customer delight Step 5: Capture value from customers to create profits and customer quality 25
23
(Cant, 2007, p. 3)
24
(George, 2007, p. 4)
25
(Kotler&Armstrong, 2006, p. 5)
43
4.3 The marketing process The marketing process can be applied in any type of organization working in various fields. It’s crucial for marketing to start with research with marketplace and understand what the consumer needs and wants are. The second step is to build a customer/consumer driven marketing strategy, the pillars thereby are : i.
Which customer will be served? (market segmentation and targeting)
ii.
How can the targeted customers’ best be served? (Differentiation and positioning)
These two crucial aspects are neglected quite often by Georgian Tour and Wine companies. They do not compile statistic, they do not pay attention to customer segmentation, although target group segmentation can significantly support the development of marketing process and companies’ development. The fourth step of the marketing process involves building value –laden profitable relationships with target customers, The winery must work closely with marketing partners both inside and outside the company. Four P’s (product, price, place and promotion) are often not considered as important elements by wineries, tour agencies or other institutions involved in wine tourism marketing. These four marketing mix elements (4P’s) transform the marketing strategy into real value for customers26. Usually the companies start with the development of product offers and brand identities. This activity is followed by creating real customer value (price), the distribution of product (place) makes this product available to target customer. Finally, the promotion programs are created that communicate the value proposition to target consumers and persuade them to act on the marketing offer (promotion)27 . The marketing mix is a set of controllable, tactical marketing tools that the company brings together to produce the response it desires from its target market. These marketing tools consist of everything that a company can possible do in order to create and influence a demand for its products28. Thus marketing is crucial for all kind of companies/ entities that aim to create a real value and long term customer equity, which is necessary for businesses to survive, grow and be profitable29. Various factors relating o each of the four P’s are illustrated in figure below.
2626
(Kotler&Armstrong, 2006:8.12)
27
(Kotler, 2010, p. 358), (Kotler&Armstrong, 2006, p. 13)
28
(Kotler&Keller, 2009, p. 63)
29
(Kotler, 2010, p. 358), (Kotler&Keller, 2009)
44
Figure 4.1 The marketing Mix Product
Price
Product
PRICE
Variety Quality
List price Discounts
Design Freatures
Allowances Payment Period
Brand name Packaging Services
Target customers intended PosiAoning
Place Channels Coverage
Promo<on AdverAsing
Assorments LicaAons
personal Selling Sales promoAon
Invenory TransportaAon
Public relaAons 4.4
Credit Terms
LogisAc
Marketing and Promotion in the wine tourism industry
Promotion is essentially communicating with current and potential customers about specific product. A winery cannot simply expect to sell wine by producing a good wine, pricing it attractively and making it available to target consumers. Wineries need to communicate with their consumers about their wine. All communication efforts must be combined into a consistent and coordinated communications program or promotion mix. Each winery’s promotion mix consists of the specific blend of advertising, sales promotion, public relations, personal selling and direct marketing tools. The winery uses the promotion mix to pursue its advertising and marketing objectives. The chart below illustrates all elements of promotion mix. The Georgian Wine companies and also tour agencies do not pay much attention to promotion activities. The extra investments in the promotion could be named as the main reason for it. However it is value for money to invest in promotion and get more profit from it. The next chapter evaluates the implementation and use of promotion mix elements in Georgian wine industry, namely sales promotion, direct marketing, advertising, public relations and personal selling.
45
4.4.1
Wine sales and sales promotion
Wine sales are directly linked and depend on the second element of 4 P’s- price. The wine price is affected by internal and external factors30. Internal Factors: •
Product design, distribution, promotion cost
External factors: •
Competition, market demand and other environmental elements
The price should be set reflecting best price and quality ratio. Sales promotion consists of a set of short term incentive tools to stimulate or encourage the purchase or sale of a product or service. Various incentive tools can be used to encourage sales, all of which have unique qualities and include coupons, free trials, contests, cents of deals etc. Georgian wineries make use of different sales promotion incentive tools in order to market their wines. The popular tools include: •
Discounts
•
Coupons
•
Tie in promotion
Cellar door sales, primarily related to wine tourism, were rated as important or very important to the overall sales. Various studies have shown that cellar door sales could account for as much as 75% of overall wine sales in small and medium sized wineries31. Since most of the wineries in Kakheti region are small or medium sized and the majority of respondents rated cellar door sales as important, it can be concluded that many wineries are in some way dependent on attracting visitors though wine tourism to the cellar door. Currently around 20 % of wineries income comes from tourism activities the rest from wine sales. Figure 4.2 The income source of wine companies
Income Source Series1 19.45
Tourism acAvity Wine Sales
77.9 0
10
20
30
40
50
60
70
80
90
30
(Kotler&Armstrong, 2006, p. 309)
31
(Hall C. , 2000)
46
Even if the tourism activity contributes to the income by approximately 20%, 80% of the wineries income depends on wine sales. The most important distribution channel on a global scale remains the direct sales at the winery. In Georgian beside the indoor sales, the wines are sold in restaurants, barsn, and supermarkets and even online. The chart below demonstrates the scale of distribution channel. Figure 4.3 Distribution channel 35.00%
Distribution Channels
30.00%
29% 25%
25.00% 20.00%
18.10% 14%
15.00%
8%
10.00% 5.00%
4%
2%
0.00%
It should be noted, that there is no big difference between big, medium and small companies regarding wine prices the minor differences could be concluded as follows: •
Big companies are selling most of their wine between 5-10 Gel- 54 %
•
Medium companies vend for less than 5 GEL- 79 %,
•
Most of the Small companies offer their products for more than 20 GEL (58%).
100% Big 50%
Medium Small
0% <5
5-‐10 10-‐15 15-‐20 20-‐25 25-‐30 30+
47
The price difference between small and medium wine companies can be explained as follows: Small wineries prices are most often set by the owners, whereas larger wineries that sell the product in retail stores depend on market and sales demand. Although the fact that small wineries produce mainly the qvevri wine which is a luxury product on the global market and costs significantly more than the average wine , could be used as an explanation for such price differentiation. Taking in account the finding above and also the high interest in Georgian wine plus the number of visitors visiting wineries each year, the development of wine tourism is not only an interesting activity but also financial viable. This is because the greater part of the total income from wine tourism activities comes from the wine sales directly and remains in the company. Accommodation and food services contribute to the total income approximately up to 36.58% and 23.61%. Other services and gadgets seem to play a little role in the total income of the wineries. The average price of 2 hours guided tour in a winery costs approximately 50 GEL. The potential growth of wine tourism and the outlook to earn more and achieve better results lead to the fact that the great majority of 35 companies in Kakheti invested in production and side facility development one year ago. The next investments seem to be the same however vineyard cultivation and extension of wine tourism services would play also a crucial role. The major investments have been done in: •
New equipment -30 companies
•
Facility enlargement and development- 25 companies
•
Cultivation of new vineyards -18 companies
•
Capacity development of the staff -10 companies
4.4.2
Advertising and promotion
Advertising is perhaps the most powerful component of the promotional mix. Advertising is defined as a paid form of non personal presentation and promotion of ideas, good and services by an identified sponsor. The advertising message is transmitted through a variety of media (TV, Magazines, redio, newsletters, newspapers, internet etc). The majority of Georgian companies is using social networking, portals and mailing list to attract new visitors and advertise their companies worldwide. However there is no joint strategy which would enforce the position of Georgian wine worldwide. Similar to other wine countries, Georgian companies also pay more attention to a traditional promotion based on the participation at wine tasting events, professional wine fairs, and wine festivals. Although in time of globalization other promotional tools and advertising such as wine tourism websites, online portals, online selling etc. should not be neglected.
48
Advertising methods such as study tours for bloggers, wine writers, wine buyers and wine critics are organized on regular level by Georgian Wine Association for their members with the purpose to raise awareness o Georgian wine and wine culture. Although many different advertising tools are used to promote Georgian Wine, more efforts are required to make it more systematic and target oriented. The lack of joint national promotion strategy is visible and needs tangible support to minimize the input and maximize the output. Following advertising tools have been mentioned by number of companies regarding wine and tourism promotion. Figure 4.4 Promotion tools
Adver<sing tools 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
Beside the activities used to communicate with customers, wineries use following service providers to achieve a better outcome: •
Tourism information centers /offices
•
Local wine shops and bars
•
Various wine events
•
Tour Agencies and Tour operators
•
Wine tourism Portal
To sum up, the majority of wine companies in Georgia prefer to use traditional wine events (wine fairs, wine tastings, wine festivals) to promote wine tourism activities, only few apply to digital marketing tools (web site promotion, social media, mobile apps etc. ) Since autumn 2014 Georgian wine and tourism companies are also using the first Georgian wine portal georgianwine.travel to promote their companies. The chart below presents current and future activities and activities planned by wine and tour agencies.
49
Figure 4.5 Advertising tools Chart Title
Doing
Wanted
Gourmet dinners
30
Awareness raising though websites
33
Online adds/ digital markeAng
19
Study tours for Bloggers, Wine masters ,
32
AdverAsements in wine Magazines
18
Wine tasAngs
28
Wine Fairs/ fesAvals
4.4.3
32
Personal selling of wine products
Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers’ preferences, convicting and actions. Personal selling is a vital part of most Georgian wineries. Almost all wineries have wine cellar staff that act as a personal sales force the lack of professionals in this field has been reported by majority of participants. To overcome this challenge it would be recommended to provide and offer regular seminars and workshops for the sales and marketing staff. 4.4.4
Public relations
Public relations is another promotion mix element, defined as building good relations with the company’s various publics by obtaining publicity, building up a good corporate image and handling or heading of unfavorable rumors, stories and events32 . News stories, features, sponsorships and events are all forms of public relations communications and tend to be more believable to consumers than advertising. Georgian wineries often make use of public relations though stage events such as concerts, festivals, charity evenings, press release editorials etc. Although PR is not the strongest part of companies.
32
(Kotler, 2010, p. 376)
50
4.4.5
Direct marketing
Direct marketing is the direct contact between carefully targeted individual consumers and the company to obtain an immediate response and build long term relationship by using catalogues, direct mail, direct response advertising and e communications33. Wineries in Georgia can make use of direct marketing in various ways. Some of the direct marketing tools broadly used by wine companies include: •
Catalogues and wine guides (printed ones)
•
Wine portal
•
Direct communication to customers
Despite the fact that in 21st century the virtual world influences and speeds up the processes of communication, the direct contact to customer, wine maker or sales personnel is crucial in wine world. To taught, small, explore , new flavours is essential part of wine tourism. 5
Conclusions and Recommendations
The Georgian Wine and Tourism industry is currently operation within an extremely volatile and challenging business environment, both domestically and internationally. To achieve success on both markets a good strategy and strong will is required. The study investigates that despite the fact that wine tourism is crucial for countries and companies development, it still has a huge room for improvements. Many challenges and difficulties have been identified during the research process. Especially lack of statistic and economic data is visible. Due to these barriers, no appropriate strategies are developed from government and company sides. Based on the data provided by wine companies, national tourism agency and statistic department, following information could be obtained and evaluated in the survey: -‐
The range of wine tourism products and services currently available in Georgia;
-‐
The profile of wine tourists;
-‐
Perceived advantages and disadvantages of wine tourism to the wineries;
-‐
The importance of wine tourism within the promotion strategy of the winery;
-‐
The perception of wine tourism’s contribution to the brand equity of a winery;
The methodology used in conducting this survey was discussed in chapter 1. All other findings and results of survey are analyzed and presented in chapters 2.3 and 4. We should admit that it was quite difficult to get complete and precise information. Many participants (wine and tour agencies) did not wanted to participate or gave incomplete answers, because they considered this data confidential and did not wish to communicate or distribute their information. 33
(Kotler, 2010, p. 376)
51
The other obstacles such as lack of information (statistics, strategies), low attitude towards surveys / marketing studies could be mentioned as major challenge. Despite several attempts (emails, workshop and training) the majority of tour companies denied to participate in the survey and have not provided any data or filled questionnaire. Despite these challenges, GWA was able to collect necessary information, complete the survey and provide interesting trends and results. To sum up following trends could be identified: −
Concerning the wine and tourism sector development there is a general increasing growth trend, connected to the increasing demand of Georgian Wine consumption over the world;
−
The general increase of wine production and developing new vineyards is also significant;
−
The survey findings and global trends allow us to assume that wine tourism activities seem to be not only sustainable but also viable;
−
Due to the high interest towards Georgia and Georgian wine culture, here is a vibrant positivity among wineries that are slowly but constantly supporting the development and grows of wine tourism in country Georgia;
In order to take advantages of this vibrant and lively activity, wineries should constantly work at offering the best quality in their product and services, and keep on developing the diversity of their offer. Regarding the marketing and development of winery, four factors have been identified either as important of very important to a winery: −
Employing staffs who are knowledgeable about wines;
−
Providing education and interpretation for visitors;
−
Good sign posting;
−
Employee friendly, service oriented staff;
Visitors love the possibility to go through different types of activities and, undoubtedly, they will share their experiences to their friends, colleagues, relatives. We know that word of mouth is nowadays one of the most important promotion means based on the statistic data. Finding show that there are still gaps in development of wine tourism, so more attention should be paid to overcome these challenges by using innovative tools and best practice experiences. Today the income of wine tourism services is representing around 20% of the global wineries income. Moreover wine tourism is above all a major marketing tool for country and wineries / wines that should be 100% integrated in the commercial strategies of the wineries as the impact is so important for their image around the world. Wine tourism can assist in building brand equity in that it has the ability to foster brand loyalty and create brand awareness.
52
Following needs have been mentioned by participants as main obstacles in development of wine & grape industry: −
Lack of professional, business service provider in wine and grape sector;
−
Lack of technical expertise;
−
Lack of business skills and experiences;
−
High / unpredictable grape price;
−
Difficulties controlling wine quality;
−
Lack of support for product certification & standardization;
−
Lack of support for Marketing & PR;
−
Lack of support for innovative product development;
−
Access to reliable market information;
−
Logistic/Transport difficulties;
−
Lack of finance;
−
Limited access to low rate bank loans.
More challenges have been reported by wine sector representatives; however they are more related to internal capabilities and more structural in nature and should be resolved by companies. Despite the fact that wine tourism is a marketing channel, which can add value to countries, sector and winery development, the question that arises while working on this study: Do Georgian wineries perceive Wine Tourism as a tool in their marketing strategies? Remains open. The research confirms that although wineries are aware of the possible benefits of wine tourism, many still view it as a secondary marketing activity 5.1
Recommendations for the Georgian wine and tour companies
Each company, be it large, medium or small size enterprise, hat different business goals and marketing needs. While the use of tourism as a marketing tool may not fit into every winery’s marketing strategy, it is in the best interest of wineries to consider the following recommendations regarding the use of wine tourism as a strategic marketing tool. Following recommendations could be provided to achieve better results: Develop a marketing information system (MIS database) Due to the lack of statistic information, it is recommended that a MIS database be developed per winey in order to record as much data as possible on visitors to the cellar door. This will provide valuable information on wine tourists and their needs and excitations. The database can then be used to develop specific wine tourism products and improve the marketing strategy as well as develop a one on one marketing strategy for each individual customer.
53
Actively pursue wine tourism as an avenue for marketing research, product testing and building the brand equity of the winery and its brands Wine tourism afford each winery a unique opportunity to gather research data, test new wine products and build or improve its branding. Management, especially that of wineries that already have an existing wine tourism product, should make use of the opportunity offered by wine tourism. Conducting marketing research would not require much investment and testing new products would be vitally free to the winery. The positive spin off of building the winery brand can also not be ignored internationally; wineries are continuously increasing the use of wine tourism as a sound source of marketing information and testing new products on visitors to the winery. Wineries not utilizing this source of information will lose their competitive edge. It should be reiterated that wine tourism could be one of the single most important ways to build brand equity, especially for smaller wineries in Georgia. Consider the practice of charging a tasting fee The result indicate that the most popular form of tasting fee is charging for a set of samples but discounting the price if a bottle of wine is purchased. It was found out34 that visitors who receive complimentary wine tasting spend significantly more money at wineries than visitors who pay a fee for tasting. Visitors who do not pay to taste wine were also more appreciative of cellar door personnel and report feeling a higher level of obligation to make a purchase than visitors who pay for tasting. Winery management could benefit from careful considering their current tasting fee structure and testing the effects of free tasting on cellar sales. Segmenting the markets and products of the winery Wineries could benefit from streamlining their marketing and wine tourism products and facilities to target specific age and education groups. The largest group of visitors is between 25-45 year of age and this is also the primary consumer group. It should not be ignored that the majority of wine consumers and visitors to wineries are well educated, thus going back to brand loyalty the wineries could benefit from building brand loyalty within this target audience. Certification and star grading Wineries could benefit from s star grading and certification by well known company. It could help to increase their bottom line by leveraging this grading to build brand equity and reputation. Use tradition and innovation as a tool to attract customers The awareness of Georgian wine and wine culture is still quite low, however the wineries could benefit from promotion of tradition and innovation. Qvevri wine could be used in this regard as a product that used to be produced already 8000 years ago. In order to take advantages of this vibrant and lively 34
(Dodd K. a., 2009)
54
activity, wineries should constantly work at offering the best quality in their product and services, and keep on developing the diversity of their offer. Capacity development of the staff Wineries and tour agencies should be aware how important it is to have professionals in their team. Despite the fact that there is no accurate data about trainings & vocational qualification for the last years the need to have professional, specialized operators is obvious. The professional should be treated and paid also adequately. A code of ethics which would regulate this process should be developed and implemented in wine and tourism field. Offer well developed and diverse tour packages Wine tourism is very broad in scope and includes many different types of products, services and facilities. An investigation into the specific products and services that are most enjoyed by international wine tourist could be done. This would enable the industry to streamline its current wine tourism product and offer tourists what they most desire It would be highly recommended to consolidate resources of private, public and international organizations and act based on real needs and obstacle of the sector in order of significance. Special support is required in: −
Business planning & strategic planning;
−
Marketing & PR;
−
Certification & standardization;
−
Education & vocational qualification;
−
Awareness raising activities.
The results of the survey helped not only to identify main trends and challenges in wine tourism industry but at some points illustrated some other aspects which are crucial for wine tourism development. −
Develop Innovations (New products, equipment);
−
Take care about climate change and possible challenges;
−
Implement new statistic and data management tools;
−
Offer IT solutions & software consulting;
5.2
Areas for future research
Considering the results of this study, the following areas may be researched in the future: •
Specific tourism product and services at Georgian wineries
•
Gender specific activities at wineries in Georgia
•
Influence of social median on wine tourism
•
Winery visitors point of origin
•
Research into developing a MIS database
55
6
Bibliography
Dodd, T. (2000). Influence on cellar door sales and determinants of wine tourism sucess: results from Texas wineries, in Wine toruism around the world: Development, managment and markets. Oxford, UK: Elsevier science. George, R. (2007). Marketing in tourism, 2 nd edition. Oxford University Press. Getz, D. (2000). Expore Wine tourism: management, development and destinations. New York: Cpgnizant Communication. Getz, D. D. (1999). Critical success factors for wine tourism. International Hournal of Wine Marketing , 11-20. Hall&Macionis. (1998). Wine Tourism and recreation in rural areas. Oxford : Wiley. Hall&Page. (2006). The geography of tourism and recreation: environment, place and space 3rd edition. Oxford: Routledge. Hall, C. (2000). Wine Tourism: an introductio, in Wine tourism arround the world: Development, management and markets. Oxford: Butterworth-Heinemann. Hall, C. a. (1998). Wine Tourism in Australia and New Zealand, in Tourism and recreation in rural areas. Oxfor, England. Hall, C.M& Mitchell, M. (2006, 2000). Wine Tourism in the Mediterranean: A tool for restructing and development. International Business review, 42, 445-465. Kolyesnikova, N., & Dodd, T. (2009). There is n such thing as a free wine tasting. Travel and Tourism Marketing, 806-819. Kotler&Armstrong. (2006). Principles of marketing, 11 th edition. Upper Saddle River, NJ: Prentice-Hall. Kotler&Keller. (2009). Marketing management, 13th edition . Upper Saddle river, NJ: Prentice-Hall. Kotler, e. a. (2010). Marketing for hospitality and tourism. 5th edition. Upper Saddle River, NJ: Prentice Hall. Lubbe. (2003). Tourism Management in Southern Africa. Cape Town: Pearson edition . O'Neill&Charter. (2000). Service quality in the cellar door:implications for western Australia's developing wine tourism industry,. Managing service Quality, 112-122. Treloar, P. H. (2004). Wine tourism and the generation Y market: any Possibilities? Online Source. (n.d.). World Travel and tourism Council's. WTO. (2007b). World Touris Barometer.
56
Association Georgian Wine (2014) Assessment Needs of Wine and Grape sector National Tourism Administration - http://gnta.ge/ National Statistics office of Georgia - http://www.geostat.ge/ World Bank - http://www.worldbank.org/en/country/georgia/overview
7
Table of Figures
Figure 1.1 Map of Georgia ............................................................................................................ 4 Figure 1.2 Population under poverty ............................................................................................. 6 Figure 1.3 Unemployed rate in Georgia ........................................................................................ 6 Figure 1.4 GDP per price and per capital ...................................................................................... 7 Figure 1.5 Share of Tourism in GDP ............................................................................................. 7 Figure 1.6Share of Tourism in GDP detailed breakdown .............................................................. 8 Figure 2.1: Value Chain approach by Porter ............................................................................... 10 Figure 3.1 Grape varieties in Kakheti Region ............................................................................. 17 Figure 3.2 Grape yield per ha in Ton .......................................................................................... 17 Figure 3.3 Wine sales ................................................................................................................. 18 Figure 3.4 Marketing environment of a winery ............................................................................ 20 Figure 3.5 SWOT ANALYSE Georgian Wine .............................................................................. 21 Figure 3.6 Wine Tourism linkages to other Fields and activities ................................................. 23 Figure 3.7 Tourist in Georgia ..................................................................................................... 27 Figure 3.8 Countries of origin ...................................................................................................... 27 Figure 3.9Tourists Gender .......................................................................................................... 28 Figure 3.10 Accompanying person ............................................................................................. 29 Figure 3.11 Means of transport ................................................................................................... 30 Figure 3.12 Accommodation types .............................................................................................. 30 Figure 3.13 Popular Places by tourists in Georgia ...................................................................... 31 Figure 3.14 Information source ................................................................................................... 31 Figure 3.15 Accommodation quantities in the regions ................................................................ 32 Figure 3.16 Accommodation types .............................................................................................. 33 Figure 3.17Types of activities ..................................................................................................... 34 Figure 3.18 Purpose of visit Georgia ........................................................................................... 34 Figure 3.19 Benefits of wine tourism development ..................................................................... 36 Figure 4.1The tourist facilities available in Georgian winery ....................................................... 41 Figure 5.2 The marketing Mix .................................................................................................... 45 Figure 5.3 The income source of wine companies ...................................................................... 46 Figure 5.4 Distribution channel ................................................................................................... 47 Figure 5.5 Promotion tools .......................................................................................................... 49 Figure 5.6 Advertising tools ......................................................................................................... 50
57
8 Annexes 8.1
Project Presentation
PROJECT NAME - “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST) PROJECT DURATION - 18 months PROJECT PARTNERS : ü Business Consulting Institute (BCI), Moldova, Chisinau – PROJECT LEADING PARTNER ü International Business Development and Investment Promotion Center (IBDIPC), Georgia, Adjara AR ü Department of Tourism and Resorts of Adjara AR, Georgia ü Burgas municipality, Bulgaria, NUTS II regions Yugoiztochen ü Agency of Regional Development (ARD), Ukraine, Odessa region ü Eastern Black Sea Development Agency (DOKA), Turkey, TR90 – Eastern Black Sea Region Project Major Goals and Objectives of the joint Action v
Improvement of the regional capacities for planning, coordination and implementation of joint strategy
v Building of an effective network infrastructure for promotion and implementation of market orientated tourist products v Improvement of the knowledge/skills and developing the tourism products in partner regions to current needs of international markets v Creation of a cooperative environment for building up a common agenda for sustainable tourism development in the Black Sea Basin respecting regional specificities v Intensifying cross-border economic cooperation through tourism v Specific objective(s) v Achieving stronger regional partnership and cooperation among regions in Black Sea Basin for sustainable tourism management and joint marketing strategy focused on PPP Target groups & Final Beneficiaries
Target group(s)
v Public sector – tourism departments, regional authorities, municipalities etc. v NGOs – working in the tourism filed – tourist associations, tourism development organizations etc. v Private sector – tour operators and travel agencies, guesthouse owners, hotels etc.
Final beneficiaries
58
v The tourism sector in general – the project will contribute to tourism development in each partner regions. That will benefit to all businesses involved in the tourism industry; v Communities/population in the target regions – through increased tourist numbers more local income and social-economic conditions will be available; v Tourists (both domestic and international) – benefit from improved tourist products, new tourist products and improved level of service; Project’s Main Activities
GA2 Development of joint marketing strategies
v
Jointly develop tourism marketing strategy and action steps for each of the partner countries in order to effectively promote common tourist products of the representative destination.
v Marketing researches - in each region resulting in useful analytical information gathered via marketing researches. This will be used for - Joint marketing strategy development as well as gathered data will be useful for final catalogue and online web-portal (to put necessary tourism info) v Feasibility studies for new products and cross-border tour projects - It will include identifying the possibilities of cross-border tour-products – ex: Moldova/Ukraine/Bulgaria, Georgia/Turkey - joint tour package offered to tourists of both countries and International tourists. v Creating network of cross-border tour operators / tourism stakeholders among participant countries - the intensified regional cooperation of tourism countries and stakeholders related to the development of other tourism areas facilitates a mutual learning from different approaches and problems and has the potential to lead to a increased development of cross-border concepts and cooperation
GA 3 Tourism project development and skills capacity improvement
Trainings for skills improvement - 4 training packages will be developed and trainigns organized. These include the following:
v I package – Trainings in Destination & Internet/social media marketing (3 days) v II package – wine/eco tourism specifics, service skills, marketing etc. v III package – Trainings/workshops in Sustainable tourism development strategy through PPP partnership (3 days) v IV package – Workshop for joint promotion of tourism products – public/praivate cooperatoin, joint funding schemes etc.
GA 3 Tourism project development and skills capacity improvement
v
Site visits for exchange of experience in BS countries - One site visit in each country during the project implementation (3 days duration) for exchanging the experience, to meet the local stakeholders and get necessary consultations etc.
v
Workshops on PPP tourism development - 2 workshop during project period will be held in each country to discuss the tourism product development / marketing strategy issues with all major tourism stakeholders (for ex: tourism associations, private tour companies, local experts, government etc.).
GA 4 Creating an effective online platform for joint promotion of tourism products
59
v
Creation of BS InfoTourism Database - Each of the partners will put on IT platform major tourism data’s e.g. mapping of destinations, identification of local authority’s, tourism products, news, festivals etc.
v
IT portal/web-site creation and continuous content development - portal will have information about all relevant data generated during project implementation: marketing strategies, tourist destinations, trends, news, festivals etc. The portal will also act as a communication platform for the project partners and the local stakeholders, joint online promotion of tour products, jcross-border tour packages etc
v
Developing a Social Media Platform for tourism projects - social media marketing is gradually increasing in the world. Under the Project will be developed package of social media tolos (Blog, Facebook, Twitter, Youtube, Flickr etc.) whcih will be intergrated with web-site/IT platfrom
GA 5 Visibility of the Action
v Press conference and newspapers inserts - a) Press conferences in each country for launching the project, highlighting project’s major activities, presenting Web-portal etc. b) newspaper inserts on tourism related issues that will be helpful for highlighting the tourism importance, present the ongoing tendencies, problems, Project partner’s tour product promotion etc., c) Press releases and Media coverage v The presence of Project in Regional tourism fairs and dissemination of BS Tourism Catalogue and Info materials v Black Sea Tourism Final Conference - The final conference will be a physical platform for all partners to promote traditional and newly developed tourist products. Participants from the three regions will be invited with different background (business, NGO’s etc.) and will have the opportunity to promote their activities in the field of tourism, establish networking contacts etc.
60
8.2
Questionnaire - Tourists Consumer Survey
The given survey is done by “International Business Development and Investment Promotion Center”, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Department of Tourism and Resorts of Ajara AR. CONTACT INFO - ibdipc@gmail.com, 599-482181 1.
Age
18-25 2.
26-35
4.
Georgia
-
West Europe (please specify) ________________________________
-
East Europe ( please specify) _______________________________
-
Post-Soviet Area (please specify) _____________________________
-
Other ( please specify) ______________________________________________
Income ( in EURO) 20,001-35,000
35,001-50,000
Alone With the family Together with a group of friends
50,001-70,000
More than 75,000
• •
In a couple
• • •
Wine and gastronomy tour
Together with an organized group
What is the main goal of your trip? Leisure Business To See touristic areas
To make familiar with country Other_________________
How much do you spend usually (or expect to spend) in Georgia for 1 day wint tour (wine degustation, lunch, night stay) ? 0-30 EUR
31-60 EUR
61-100 EUR
100 EUR
How many days lasts your “Wine Tour” •
9.
10,001 – 20,000
With whom do you travel?
• • •
8.
Divorced
•
-
• •
7.
75- and more
Country of residence
•
6.
61-75
Male
0-10,000 5.
46-60
Sex •
3.
36-45
1day
•
2 day
•
More than 3 day
Where do you mainly get information when your travel (for wine tour)? You can check all relevant sources. Internet Social Media (Facebook etc.) Tour operator brochure Press Knowledge from previous visit Advice from friends/relatives Guides ((e.g. Time Out, Lonely Planet, Rough Guide etc.) Tourism information Centers Tourism Exhibition Other (please specify) _________________________________________________
61
10. Which are the 3 most important elements that could convince you to visit a winery/ wine area? • • • • • • • • • •
Culture and History
Wine tasting Winemaking activities Meeting with Wine-maker Testing of Local meals and wines Leisure To receive special/different impressions To discover special and unique wines To have a good time with friends and colleagues Other ____________________________
11. How importatn are the following factors when you select winery for visit?
Very important
Medium importance
Unimportant
1. Staff knowledge about the products promoted and service level 2. Information provided through the marketing materials and web-site 3. Costs of visiting winery – (The tasting fe, Price for the wine bottles, tour-guide etc.) 4. Travel time to winery 5. Proximity to other wineries 6. The winery size 7. Variety of wines offered for tasting 8. The aesthetic atmosphere and design of wine tasting halls 9. Popularity of winery 10. Existence of a cellar or vineyard available for visitors 12. Which kind of accomodation do you prefer while traveling? • • •
High class Hotel Medium class Hotel Guesthouse
• •
Hostel Other__________________________
13. In “Wine tour’ beside the wine degustation what other components of services will be interesting to have as part of tourist pacakge? • • • •
Georgian Gastronomy Folklore Show Winemaking activities Visiting Cultural-Historical monuments
• •
Visiting Eco-Tourism sites Other ________________________________
14. Have you travelled in Georgia and did you had a "Wine Tour"? (if you answered "I have not travelled to Georgia" you can skip questions 15-18) • • •
I travelled in Georgia but have not took "Wine Tour" I travelled in Georgia as well as took "Wine Tour" I have not travelled to Georgia
62
15. What components would you advise to improve in “Wine Tour” (or generally in tourism industry of Georgia) which you noticed during travel in Georgia? • Hotel • Tour Agencies service • Guide • Meal/Menu • Access Road/Accessibility • Wine • Wine Degustation • Other________________________
16. How can you rate your experience for “Wine Tour” in Georgia compared with you travel experience with “Wine tour” in other countries on 5 point scale? ( 1- Georgia was worst experience and 5Georgia was best experience ) 1
2
3
4
5
17. Did you like your travel experience in Georgia? Yes
No
Average
18. Will you recommend to travel in Georgia for wine tourism lovers? Yes
No
Not Sure
Thanks for your cooperation
63
8.3 Questionnaire Wine cellar/factories) Survey
Tourism
Stakeholder
(Wine
The given survey is done by “International Business Development and Investment Promotion Center”, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Association “Georgian Wine”. Contact informatoin: ibdipc@gmail.com, 599-482181
1. Your Enterprise/Cellar name: ___________________________________________ 2. W hat kind of enterprise do you represent? • •
Small cellar Cellar + Hotel
Private family cellar Large wine company
• •
3. W here is situated your company? •
Indicate( village, region) - ________________________________________________________
4. How easy is to find and access your enterprise? Easily
Avarage
Difficult
By car By public transport By walk 5. Are you participant of wine route project? •
Yes
6.
W hich kind of advertisment/PR do you use to promote your company/enterprise (you can check all relevant source):
• • • • • •
E-mail Sms advertisement Social networks Exhibitions Special offers Media
7. • • • •
No
•
• o o o
Participate in various events Wine-making Distiling of home made Vodka (so called “Zaodoba”) Other _____________________________________
How your enterprise is differentiated from others? (you can check all relevant source) By Location By history By combining of traditions & innovations By offering of special wines
• • •
By developing of new products By segmentation of target customers Other:__________________
64
8. W hat services you offer to tourists? (You can check all relevant sources) Accommodation Wine tasting in wine tasting halls Tour around the wine Cellar Tour around the enterprise’s territory Lunch+ wine tasting ლანჩი
• • • • •
• • • • •
Vineyard survey Wine making/harvesting activities Organize events on your territory Cycling tours Horseback riding tours
9. In your opinion what is necessary to develop wine tourism in Georgia? (5 point – most important, 1 –less important) •
•
1
2
3
4
5
•
PR
•
•
•
•
•
•
To offer quality services
•
•
•
•
•
•
Joint use of wine and other resources
•
•
•
•
•
•
Lower prices
•
•
•
•
•
•
Product variety
•
•
•
•
•
•
Rationale Segementation of Target audience
•
•
•
•
•
•
Create of networks distribution
•
•
•
•
•
10. In your opinion what are the bariers to wine tourism develoment in Georgia (You can check all relevant sources): •
•
1
•
2
3 •
4
5
•
Low level of County’s awarness/ lack of infromatoin
•
•
•
•
•
•
Product quality
•
•
•
•
•
•
Lack of international standards wine tour packages
•
•
•
•
•
•
Infrastructure
•
•
•
•
•
•
Human Resources (HR) /Qualification
•
•
•
•
•
•
Lack of joint strategy (In Tourism sector)
•
•
•
•
•
11. W hat is wine tourism for you? •
Additional income
•
Country image
•
Company advertisement
•
To follow the trend
•
Product advertisement
•
Other:
________________________
12. Do you plan some more investment in wine tourism, to develop your business? Yes
•
•
No
13. How many toursits you serve per year? •
100 -200
•
400 -700
•
200 – 300
•
700 -1000
•
300 -400
•
More than 1000
14. How many % of toursits are Georgian citizen? •
5-10%
•
25%
•
15%
•
30%
•
20%
•
More 30%
than
15. How many % are Citizen of Foreign countries? 1.
5-10 %
3.
20%
5.
30%
2.
15%
4.
25%
6.
More than 30%
16. From which country are your guests mainly?
• • • •
EU o Germany გერმანია o Italy იტალია Asia USA Baltics Post Soviet union
17. • • •
Your guest’s age? თქვენი სტუმრების ასაკი? 18 -25 25 -35 35 -45
18. • o o o o • • • • • • •
How you plan to increase the number of toursits (to attrect more tourstis)? Offer Special packages Family package Package for individuals Backpacker’s package Pensioner’s package Expansion of Cellar Special products Improvement of Infrastructure Change of price policy To Organize seminars and workshops (Georgian wine & culture) Addition of folk and culture elements Other ს
•
o o
• •
Spain ესპანეთი Poland პოლონეთი
45 -55 55+
19. How much wine (%) is sold on wine-cellar territory to tourists? 5% -10% 15-25% 25 -35%
• • •
• •
35 -45% More than 50%
8.4. Questionnaire - Tourism Wine Stakeholder (Tour Companies) Survey “International Business Development and Investment Promotion Center” do the given survey, through EU financed project “Black Sea Network for Sustainable Tourism - Strategies for joint tourism marketing and development in the Black Sea region” (BS NST). Survey is implemented with cooperation of Association “Georgian Wine”. Contact information: ibdipc@gmail.com, 599-482181 1. Company Name: __________________________________________________ 2. Is •
Wine
Tour
included
in
your
Yes
company’s •
Tour
package
?
No
1. Which areas you mainly take tourist groups for wine tour? _____________________________________________________________________________ 2. What criterias do you give the preferences while choosing Wine cellar / Wine factory for wine tour? (You can check several) •
Comfortable environment
• • •
Price Good service Wine variety and quality
• • •
Proximity to the road/easily access place Ecological cleanness Other ___________________________
3. What kind of services are included in "wine tour" (You can check all relevant) • Transportation • Walk in Vineyards • Guide • Participation of wine making (or any agrotourism activities) • Lunch • Horseback riding tour • Accommodation • Folk show • Wine-tasting • Other ____________________ 4. Average cost per person for wine tour (1 day costs) • 10-50 lari • 100-150 lari • 50 -100 lari • More than 150 5. Approximately what is the period (how many days) your wine tour? • Half day • 1day • 2 day 6. • • •
How many toursits do you serve per year for Wine Tourism? 100 -200 • 700 -100 200 – 400 • 1000 -1500 400 -700 • More than 1500
7. • • • •
Among them how many are Georgian ( resident in Georgia)? 5% • 25% 10% • 30% 15% • More than 50% 20%
8. • • •
Citizen of foreign country? 5-10% 15% 20%
• •
25% 30%
• More than 3 day
•
More than 50%
9. • • •
From which countries are mainly tourists coming? (You can check all relevant sources): EU countries • Baltic countries Asian countries • Post Soviet Union USA • Other______________________
10. • • •
What is average age of tourists? 18 -25 25 -35 35 -45
11. • • • • • •
What is major interests of your tourists (You can check all relevant sources): Introduction to Georgian culture and history Degustation of Georgian wine Visit to Eco-tourism places Participation in Agritourist activities To make familiar with country with another approach Other ______________________________________________________________________
• •
45 -55 55+
12. What kind of advertisement do you use to promote wine tours? • • • •
TV Internet advertisement Social networks Exhibitions
• • •
Special offers Media Other PR activites: _______
19. In your opinion, what is necessary for further development of wine tourism in Georgia? (5 pointmore important, 1- less important) 2 3 4 5 • • 1 More active promotion of country (PR) • • • • • • • • • • • •
Improve service level Joint use of wine and other resources Lower prices Products variety Target group’s segmentation Create distribution networks Other ( add your opinions):
• • • •
20. In your opinion which factors are bariers to wine tourism all relevant sources): • 1 Low level of County’s awarness/ lack of infromatoin • Product quality • Lack of international standards wine tour packages •
• • • •
Infrastructure Human Resources (HR) /Qualification Lack of joint strategy (In Tourism sector) Other ( add your opinions):
• • • • • • •
• • • •
• • • • • • •
• • • • • • •
• • • • • • •
• • • • • • •
development in Georgia? (You can check • • • • • • • •
• • •
3• • • •
• • • •
• • • •
2
5
4 • • • • • • •
8.5
Wine Tourism - Tourists Consumer Survey Results
During the consumer survey was collected 310 Questionaries. ღვინის ტურიზმის კითხვარი - Wine tourism questionnaire 1. ასაკი | Age: 18-25
% of Respondents
Number of Respondents
13.55%
42
26-35
38.06%
118
36-45
33.55%
104
46-60
12.58%
39
61-75
1.94%
6
75+
0.32%
1
Number of respondents
Chart
310
Number of respondents who skipped this question
% of Respondents
Number of Respondents
კაცი / Male
50.32%
156
ქალი / Female
49.68%
154
2. სქესი | Gender
Number of respondents
Chart
Number of respondents who skipped this question
310 0
% of Respondents
Number of Respondents
საქართველო / Georgia
65.09%
207
აღმოსავლეთ ევროპა / Eastern Europe
6.29%
20
დასავლეთ ევროპა / Western Europe
7.86%
25
თურქეთი / Turkey
2.20%
7
უკრაინა / Ukraine
8.81%
28
რუსეთი / Russia
3.14%
10
სომხეთი / Armenia
0.94%
3
აზერბაიჯანი/Azerbaijan
0.94%
3
4.72%
15
3. რომელი ქვეყნიდან ხართ | Your country of residence?
Other (Specify) Chart
0
Number of respondents
310
Number of respondents who skipped this question
% of Respondents
Number of Respondents
0-10,000 €
55.81%
173
10,001-20,000 €
20.32%
63
20,001-35,000 €
8.71%
27
35,001-50,000 €
5.16%
16
50,001-70,000 €
5.48%
17
75,000 € +
4.52%
14
4. წლიური შემოსავალი (ევროში) | Annual income (in EURO)
Number of respondents
Chart
310
Number of respondents who skipped this question
0
% of Respondents
Number of Respondents
მარტო | Alone
12.26%
38
ოჯახთან | With the family
32.58%
101
მეგობრებთან | Together with friends
37.74%
117
პარტნიორთან | as a couple
12.58%
39
ტურისტულ ჯგუფთან | Together with an organized group
4.84%
15
5. ვისთან ერთად მოგზაურობთ | With whom do you travel?
Number of respondents
Chart
310
Number of respondents who skipped this question
6. რა არის თქვენთვის მოგზაურობის მთავარი მიზანი? | What is the main goal of your trip when you travel?
0
% of Respondents
Number of Respondents
დასვენება | Leisure
39.68%
123
ბიზნესი | Business
14.19%
44
ტურისტული ადგილების მონახულება | To See touristic areas
22.26%
69
ღვინის და გასტრონომიული ტური | Wine and gastronomy tour
4.84%
15
ქვეყნის გაცნობა | To make familiar with country
17.74%
55
1.29%
4
Other (Specify) Chart
Number of respondents Number of respondents who skipped this question
310 0
7. საშუალოდ რამდენს ხარჯავთ (ან დახარჯავდით) საქართველოში ღვინის ტურიზმის ერთდღიან პაკეტზე (ღვინის დეგუსტაცია, ლანჩი, ღამისთევა) | How much do you spend usually (or expect to spend) in Georgia for 1 day wine tour (wine degustation, lunch, night stay)?
% of Respondents
Number of Respondents
0-30 ევრო / EURO
30.65%
95
31-60 ევრო / EURO
42.90%
133
61-100 ევრო / EURO
15.81%
49
100 ევროზე მეტი / More than 100 EURO
10.65%
33
Number of respondents
Chart
Number of respondents who skipped this question
8. რამდენი დღე არის ოპტიმალური "ღვინის ტურისთვის" | How many days should lasts your "Wine Tour"?
310 0
% of Respondents
Number of Respondents
1 დღე | 1 day
16.45%
51
2 დღე | 2 days
56.13%
174
3 დღე და მეტი | more than 3 days
27.42%
85
Number of respondents
Chart
Number of respondents who skipped this question
9. ძირთადად საიდან იღებთ ინფორმაციას თქვენი მოგზაურობის (ღვინის ტურის) დაგეგმვისთვის(შეგიძლიათ შემოხაზოთ რამდენიმე) | Where do you mainly get information when your travel (for wine tour)? (You can check all relevant sources)
310 0
% of Respondents
Number of Respondents
ინტერნეტი | Internet
32.71%
226
სოციალური მედია (Facebook და ა.შ.) | Social Media (Facebook etc.)
18.09%
125
ტურ-კომპანიის კატალოგი | Tour operator brochure
5.07%
35
პრესა | Press
2.89%
20
ინფორმაცია წინა ვიზიტიდან | Knowledge from previous visit
4.49%
31
მეგობრის/ნაცნობის რჩევა | Advice from friends/relatives
24.17%
167
ტურისტული გიდები | Guides (e.g. Time Out, Lonely Planet, Rough Guide etc)
3.62%
25
ტურისტული საინფორმაციო ცენტრები | Information from Tourism information Centers
4.63%
32
ტურისტული გამოფენები | Tourism exhibition
4.05%
28
0.29%
2
Other (Specify) Chart
Number of respondents Number of respondents who skipped this question
310 0
10. დაასახელეთ 3 ძირითადი ფაქტორი, რატომაც გაინტერესებთ ღვინის ტურიზმი | Which are the 3 most important elements that could convince you to visit a winery/wine area? კულტურისა და ისტორიის გაცნობა | Culture and History
% of Respond ents 20.80%
Number of Respondents 161
ღვინის დაგემოვნება | Wine tasting
14.47%
112
რთველში მონაწილეობის მიღება | Wine-making activities
7.11%
55
მეღვინესთან შეხვედრა | Meeting with Wine-maker
4.01%
31
ადგილობრივი საჭმლისა და ღვინის შეხამება და დაგემოვნება | Testing of Local meals and wines
18.09%
140
დასვენება | Leisure
7.24%
56
განსაკუთრებული/განსხვავებული შთაბეჭდილებების მიღება | To receive special/different impressions
7.36%
57
განსაკუთრებული და საინტერესო ღვინოების აღმოჩენა | To discover special and unique wines
7.75%
60
მეგობრებთან&კოლეგებთან სასიამოვნო დროის გატარება | To have a good time with friends and colleagues
13.18%
102
Number of respondents
Chart
Number of respondents who skipped this question
310 0
11. რამდენად მნიშნველოვანია ქვემოჩამოთვლილი ფაქტორები, როდესაც ირჩევთ ღვინის სახლს/მეურნეობას ვიზიტისთვის |How important are the following factors when you select winery for visit? ძალიან მნიშვნელოვანი Very important ღვინის სახლის შტატის ცოდნის დონე ღვინის შესახებ და სერვისის დონე | Staff knowledge about the products promoted and service level ღვინის სახლის შესახებ ინფორმაცია ვებ-გვერდზე ან სარეკლამო მასალებში | Information provided through the marketing materials and web-site ღვინის სახლის ვიზიტის მთლიანი ხარჯები | Costs of visiting winery ღვინის სახლთან მისასვლელი დროს | Travel time to winery სხვა ღვინის სახლებთან ახლომდებარეობა | Proximity to other wineries ღვინის სახლი სიდიდე | The winery size ღვინის დეგუსტაციაზე ღვინის სახეობების მრავალფეროვნება | Variety of wines offered for tasting სადეგუსტაციო ოთახის ატმოსფერო და დიზანი | The aesthetic atmosphere and design of wine tasting halls ღვინის სახლის პოპულარობა/იმიჯი | Popularity of winery ღვინის მარნის ან ვენახების არსებობა ღვინი სახლში | Existence of a cellar or vineyard available for visitors
მეტნაკლებად პასუხის Number მნიშვნელოვა | Unimportant გარეშე | of ნი | Medium No answer Respondents important
77% (230)
17% (53)
3% (11)
1% (3)
297
46% (134)
42% (121)
10% (29)
1% ( )
287
57% (166)
35% (103)
5% (16)
0% (2)
287
38% (108)
43% (124)
16% (47)
1% (3)
282
21% (59)
43% (121)
33% (95)
1% (5)
280
17% (47)
40% (108)
39% (104)
2% (6)
265
56% (165)
35% (104)
6% ( 9)
1% (3)
291
60% (175)
31% (91)
7% (21)
1% (3)
290
37% (105)
38% (108)
22% (62)
2% (6)
281
49% (140)
40% (113)
8% (24)
1% (4)
281
Number of Re pondents Number of respondents who skipped this question
309 1
12. რა ტიპის განთავსების ობიექტს ირჩევთ მოგზაურობის დროს | Which kind of accomodation do you prefer while traveling?
% of Respondents
Number of Respondents
მაღალი კლასის სასტუმრო | High class Hotel
10.78%
33
საშუალო კლასის სასტუმრო | Medium class Hotel
54.90%
168
გესტჰაუსი | Guesthouse
26.80%
82
ჰოსტელი | Hostel
5.23%
16
2.29%
7
Other (Specify)
Number of respondents
Chart
Number of respondents who ski ped this question
13. "ღვინის ტურის" პაკეტში გარდა ღვინის დეგუსტაციისა, რა დამატებითი კომოპნენტების ჩადება იქნებოდა თქვენთვის საინტერესო | In "Wine tour" beside the wine degustation what other components of services will be interesting to have as part of tourist package?
306 4
% of Respondents
Number of Respondents
ქართული სამზარეულოს გაცნობა | Georgian Gastronomy
28.97%
210
ფოლკლორული შოუ | Folklore Show
18.34%
133
ღვინის დაწურვაში/არყის გამოხდაში მონაწილეობა | Winemaking activities
16.69%
121
კულტურულ-ისტორიული ძეგლების მონახულება | Visiting Cultural-Historical monuments
20.69%
150
ეკოტურისტული ადგილების ნახვა | Visiting Eco-Tourism sites
14.90%
108
0.41%
3
Other (Specify)
Number of respondents
Chart
Number of respondents who skipped this question
14. გიმოგზაურიათ თუ არა საქართველოში და ყოფილხართ თუ არა "ღვინის ტურზე" ?(თუ თქვენი პასუხია "არ მიმოგზაურია საქართველოში" % of - გამოტოვეთ კითხვები 15-18) / Have you travelled in Georgia and did you Respondents had a "Wine Tour"? (if you answered "I have not travelled to Georgia" you can skip questions 15-18)
309 1
Number of Respondents
მიმოგზაურია საქართველოში, მაგრამ არ ვყოფილვარ "ღვინის ტურში" / I tarvelled in Georgia but have not took "Wine Tour"
46.53%
141
მიმოგზაურია საქართველოში, მათ შორის "ღვინის ტურშიც" / I travelled in Georgia as well as took "Wine Tour"
42.57%
129
არ მიმოგზაურია საქართველოში / I have not travelled to Georgia
10.89%
33
Chart
Number of respondents Number of respondents who skipped this question
301 9
15. | What components would you advise to improve in "Wine Tour" (or generally in tourism industry of Georgia) which you noticed during travel in Georgia?
% of Respondents
Number of Respondents
სასტუმრო | Hotel
16.57%
88
ტურ სააგენტოს მომსახურება | Tour Agencies service
13.94%
74
გიდი | Guide
15.63%
83
საკვები/მენიუ | Meal/Menu
10.55%
56
მისასვლელი გზების მდგომარეობა | Access Road/Accessibility
24.86%
132
ღვინო | Wine
4.33%
23
ღვინის დეგუსტაციის ფორმატი | Wine Degustation
13.37%
71
0.75%
4
Other (Specify)
N mber of respondents
Chart
254
Number of respondents who skipped this question
16. How can you rate your experience for "Wine Tour" in Georgia compared with you travel experience with "Wine tour" in other countries on 5 point scale? (1-Georgia was worst experience and 5-Georgia was best experience)
Chart
56
% of Respondents
Number of Respondents
1
2.20%
5
2
8.81%
20
3
32.16%
73
4
38.33%
87
5
18.50%
42
Number of respondents Number of respondents who skipped this question
17. Did you like your travel experience in Georgia?
227 83
% of Respondents
Number of Respondents
კი | Yes
80.74%
218
არა | No
0.00%
0
საშაულოდ | Average
19.26%
52
Number of respondents Number of respondents who skipped this question
18. Will you recommend to travel in Georgia for wine tourism lovers?
Chart
% of Respondents
Number of Respondents
კი | Yes
96.82%
274
არა | No
0.00%
0
არ ვიცი | Not sure
3.18%
9
Number of respondents Number of respondents who skipped this question
283 27
270 40