USING POTENTIAL OF TOURISM IN INNOVATIVE FINANCING.

USING POTENTIAL OF TOURISM

IN INNOVATIVE FINANCING

GEORGIA IN INTERNATIONAL RANKINGS

Georgia has the region’s (Europe &Central Asia) highest ranking on the ease of doing business, at 15

among 189 economies worldwide

Georgia was also ranked 21st in the world in the Heritage Foundation’s “Index of Economic Freedom” in 2014 (ranking in 2013 was 26th), which measures the degree of freedom in business, trade and financing activities.

2009 2010 2011 2012 2013 2014 2015 11 Months

1,500,0492,031,717

2,822,363

4,428,2215,392,303

5,515,5595,431,723

35% 39% 57% 22% 2%

Source: The Ministry of Internal Affairs

Number of International

Travelers

STATISTICS OF INTERNATIONAL TRAVELERSCountry 2014 11

months2015 11 months

Change %

Armenia 1,180,778 1,317,125 +12%Turkey 1,344,702 1,291,649 -4%

Azerbaijan 1,173,104 1,277,796 +9%Russia 760,304 866,929 +14%

Ukraine 134,844 132,087 -2%Israel 40,800 56,702 +39%Poland 45,420 40,657 -10%

Germany 31,919 35,328 +11%Kazakhstan 26,725 34,726 +30%

USA 26,764 29,412 +10%Belarus 18,115 27,594 +52%

Iran 47,113 23,411 -50%

UK 17,717 18,399 +4%

Greece 20,031 17,891 -11%

United Arab Emirates 1,840 15,628 +749%

Positive Tendency from EU Countries : Hungary +80.9% Spain +25.2% Lithuania +17.0% Italy +13.7% Germany +10.7%

Top 15 Countries

Significant Increase Was Shown from the Countries Below :

Oman +1,103.2% United Arab Emirates

+749.3% India +124.6% Uzbekistan +98.2% Saudi Arabia +78.6%

Land Air Railway Sea4,3

65,9

11

606,8

87

66,7

37

40,5

78

4,6

18,9

10

717,7

90

58,9

53

36,0

70

2014 11 Months 2015 11 Months

+6%

+18% -12% -11%

International Arrivals by Border type

STATISTICS OF INTERNATIONAL TRAVELERS

Land86%

Air12%

Sea1%

Railway1%

Source: The Ministry of Internal Affairs of Georgia

5,080,1135,431,723

International Travellers

+6.9 % 2,083,148 2,123,514

Tourists

+1.9 %

STATISTICS OF INTERNATIONAL TRAVELERS

International Travelers and Tourists (2014-2015 January-November)

2007 2008 2009 2010 2011 2012 2013 2014 2015 I-II Q

383,746 446,646 475,889659,245

954,909

1,410,902

1,719,700 1,787,140

766,420

16% 7%

39% 45% 48% 22% 4%

International Tourism receipts(X1000 USD)

2007 2008 2009 2010 2011 2012 2013 2014 2015 I-II Q

6.85% 6.24% 5.83% 6.08% 6.02% 6.08% 5.89% 6.32% 6.95%

Share of Tourism in GDP

ECONOMIC INDICATORS

2014 second quarter

2015 second quarter

429,690 460,060+7.1 %

ECONOMIC INDICATORSInternational Tourism

Receipts ($1000)

2014 January-October 2015 January-October

964,609

1,207,396

+25.2%

Payments with Non-residents Cards (Gel 1000)

2014 II quarter 2015 II quarter

415,527487,814+17.4%

Added Value Created in

Tourism (Gel 1000)

1,470 Accommodation Units 51,204 Beds

Hotel65%

Family House18%

Guesthouse/Hostel

11%

Other6%

RegionNumber of

Accommodation Units

Bed Capacity

Tbilisi 312 13,138

Ajara 254 11,293

Samtskhe-Javakheti 201 7,820

Kakheti 156 2,887

Imereti 142 4,368

Samegrelo-Upper Svaneti 139 2,666

Mtskheta-Mtianeti 125 4,129

Guria 56 2,998

Racha-Lechkumi 55 1,148

Lower Kartli 18 539

Inner Kartli 12 218

New Hotels in 2015:Terrace Hotel Tbilisi Oasis Hotel Chakvi

Citrus Hotel Tbilisi Sanapiro Hotel 3* Tbilisi

Vinotel Hotel Tbilisi Vardzia Resort Hotel Vardzia

Coste Hotel Tbilisi Grand Palace hotel 3* Tbilisi

Monopoli Hotel Kutaisi Tbilisi Inn Tbilisi

Royal Venezia Hotel Batumi Rixos BorjomiLeogrand Hotel & Casino Batumi Hilton Batumi

Iveria Inn Tbilisi Mercure TbilisiGM Hotel Tbilisi Hotels and Preference Tbilisi

Marina Coliseum Batumi

More than 30 Accommodation units More than 3200 Beds

Planned Constructions of Accommodation Units (2016-2017 years)

Hilton Garden Inn (Tbilisi) Radisson Park inn, (Tbilisi) Millenium hotel, (Tbilisi) Rixos Tbilisi (Tbilisi) Hyatt Regency (Tbilisi) Moxy Marriott (Tbilisi) Intercontinental (Tbilisi)

Crown Plaza (Batumi) Babylon Tower (Batumi) Cube Tower (Batumi) Princess Hotel (Batumi) Radisson Blu Resort (Tsinandali) BEST WESTERN (Kutaisi)

More than 60 Accommodation Units More than 3800 Beds

HOTELS AND INFRASTRUCTURE

Series10%

10%

20%

30%

40%

50%

60%

70%

80% 74% 75%

58%

42%

Occupancy rate in Tbilisi 2014

International Upscale Brands International Midscale Brands

Local Upscale and Middle Class Local Budget/Economy Class

Series10%

10%

20%

30%

40%

50%

60%

40%

54%

30%

Occupancy rate in Batumi 2014

International Upscale Brands Local Upscale and Middle Class

Local Budget/Economy Class

Series146%

47%

48%

47%

48%

Occupancy rate in Adjara(2015 10 Months)

2014 10 Months 2015 10 months

+1.86%

HOTELS AND INFRASTRUCTURE

2007 2008 2009 2010 2011 2012 2013 20140

500,000

1,000,000

1,500,000

2,000,000

2,500,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

669,920803,488 770,269

918,736

1,196,861

1,400,658

1,833,1342,008,514

6,5187,170 7,384

9,073

11,488 11,85612,653

13,576

Passengers Flights

+13%

1,973, 775 Passengers

(2015, 10 Months)

AIRLINES