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The economy of Georgia is an emerging free market economy. It mainly depends on tourism, agriculture and real estate. We will discuss the pandemic effect on each of this sectors below.
The effect of pandemic on tourism industry in Georgia
International and inner tourism plays most important role in Georgia’s economy. Tourism in Georgia was at its peak right before pandemic. In 2019 the income from international travel exceeded 3.3 $ billion, 8.1 % GDP. (4)
The dependence on the international tourism in Georgia is very high. Survey in 70% people showed 60-100% of dependence on it. Most tourists were coming from Russia, which has decreased to 86% during the pandemic (5).
From the beginning of pandemic, chronologically speaking the tourism business went drastically low and slowly from July 2020, flights to some countries had opened and today the international visits to Georgia increased for about 4%. The international visits decreased by about 15% compared to last year. Most of the visitors are from Azerbaijan. (5)
Due to decreased inflow of tourists in the country, the hospitality business has been effected, many hotels have closed permanently and some temporarily. Some turned into quarantine places and some did their best to keep working in an extreme state, following all the safety and hygienic regulations during Covid-19. Tourism sector had more than 150 000 employees and many of them left unemployed during the pandemic. (6) The biggest decline was in the services of tour operators and tourist agencies (54.7%) and the hotel and restaurant sector (40%). Their contribution to the annual decline of the country's economy in the second quarter of 2020 exceeded total of 2 % points. (7)
Many measures been taken by the government to support the sector, including tax deferrals / cancellations, loan deferrals, salary subsidies, training of tourism staff, cash assistance for the unemployed, and more. During the spring and summer, when the infection rate was low, it was part of the government’s plan to position and promote Georgia as a safe tourist destination.
The new project “Work Remotely from Georgia,” inviting and allowing international visitors to stay in Georgia for longer than six months, received hundreds of applications at the time, and in September, Georgia hosted the UN World Tourism Organization’s Executive Council.
To alleviate the crisis Georgia kept the domestic tourism going within this time, however its share is low, 26 % (Galt, Taggart, 2020). The hotels were open with some limitations of how many adults can stay in one room. Due to lack of international visitors hotels had to host local visitors, mostly, hence they had to do their best service wise to make them visit again or spread the word among their friends and relatives that made the hotel business more competitive.
Today, according to Ministry of Affair’s website, any nationality can enter Georgia, while following the local Covid-19 regulations, such as:
While traveling by air visitors should present the document confirming the full course (two doses, one dose in case of Johnson&Johnson) of any COVID-19 vaccination at the border checkpoints of Georgia.
While crossing the land and sea border of Georgia they should present the document confirming the full course (two doses, one dose in case of Johnson&Johnson) of any COVID-19 vaccination at the border checkpoints of Georgia, as well as the negative PCR test taken in the last 72 hours prior to the visit to Georgia.
*Except for any person traveling from the Republic of India (regardless of citizenship and full course of vaccination) as well as persons having a history of travel to the Republic of India for the last 14 days. They are subject to a negative PCR test conducted in the last 72 hours prior to the visit to Georgia at the border and then - a mandatory 14-day quarantine (in the case of foreigners, at their own expense).
