JULY 1998

THIS REPORT PREPARED BY BISNIS REPRESENTATIVE DAVID CHANTLADZE

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 1997, ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

SUMMARY

Several years ago, Georgia was hosting millions of tourists each year attracted by many health spas in the mountains and the resorts along the Black Sea coast, all tempered by an excellent climate.

Unfortunately civil war in 1992 reduced the tourist flow to Georgia. Nevertheless, four years after this event, the tourism industry is set for a revival.

The World Bank is to provide USD 5 million for the restoration of Georgian cultural monuments, which will help create favorable conditions for tourism development.

Georgian tourism infrastructure (including more than 100 recreation resorts) has not been updated for 10-15 years, so experts believe that it cannot be developed with small investments. Several years ago an Austrian company ABV built ski resort in Gudauri meeting international standards. The same company is going to renovate mountain sports complex in Bakuriani, which seems destined to be the center of winter tourism of the South Caucasus.

According to some observers, investments in the Georgian tourism and recreation will yield results and bring profit in about 5-10 years.

The country is famous for its wines and mineral waters, which have big export potential. McDonalds is planning to open Georgian market by the end of this year. For cultural tourists Georgia is interesting with its historical places and museums. There are about 12,000 historic cites and 150 museums. Some of these cites date back to four century BC.

Country's rich history and culture, as well as the mild climate and splendid landscape will be the factors in reviving tourism in the near future.

Several international air companies such as: British Airlines, Turkish Airlines, Austrian Airlines and Swiss Air have already regular flights in Georgia.

GEOGRAPHY

Georgia is located in the Central and Eastern Caucasus and occupies 69.7 sq.km. Its neighbor countries are the Russian Federation (in the North), Azerbaijan (in the East), Armenia (in the South) and Turkey (in the South-East). The total length of the border is 1968.8 km. The length of the land border is 1660.4 km.

Georgia is a mountainous country. The West part of the country is washed by the Black Sea. The length of the Georgian section of the Black Sea coast is 330 km.

General information

The biggest cities: Tbilisi - 1,225,000; Kutaisi - 221,000; Rustavi - 145,000; Batumi - 115,000.

Highest Mountains: Shkhara - 5,068 m; Mkinvartsveri (Kazbek) - 5,047 m; Shota Rustaveli - 4,860 m; Tetnuldi - 4,858 m; Ushba - 4,700 m; Ailama - 4,547 m.

Longest Rivers: Mtkvari (Kura) - 1,364 km; Tergi - 623 km; Chorokhi - 438 km; Alazani - 315 km; Rioni - 327 km; Tori - 320 km; Enguri - 213 km.

Largest Lakes: Paravani 37.5 sq.km; Kartsakhi - 26.3 sq.km; Paliastomi - 18.2 sq.km; Tabatskuri - 14.2 sq.km; Khanchali - 13.3 sq.km; Jandari - 10.6 sq.km.

CLIMATE

Georgian climate is extremely versatile. The relatively small territory covers different climatic zones, ranging from humid subtropical zones, to the zones of eternal snow and glaciers. Humid subtropical climate prevails in West Georgia, whereas moderately humid and dry subtropical climate with a considerably lower level of precipitation is characteristic of the East. High climate zonality is typical of the mauntainous areas.

FLORA AND FAUNA

In spite of its small size Georgia is covered with a large variety of vegetation, which is caused by a considerably difference between the Western and Eastern climate.

At present, Indo-Australian tropical flora is the closest in type to the vegetation characteristic of Georgia. Forest constitute 38.6 % of the country's territory and cover 2.69 million hectares.

In Georgia are registered about 100 species of animals, over 330 species of birds, 48 species of reptiles, 11 species of amphibians and about 160 species of fish.

RECREATION RESORTS

There are many places in Georgia which have been known for their healing properties. 102 climatic and health resorts operated in Georgia. Most balneological and balneoclimatic resorts are located on the seaside and in the mountain zone, with beautiful landscapes, numerous springs and the healthy climatic conditions. Some of the most famous are Nabeglavi, Zvare, Nunisi, Tkvarcheli, Borjomi, Sairme, Utsera, Abastumani, Tsagveri, Tsemi, Java, Kojori, Kiketi, Manglisi, Shovi, Bakhmaro, Lebarde and Avadkhara.

The Black Sea coast with its excellent climatic conditions is an important zone of resort development. Climatic resorts located there are Batumi, Kobuleti, Makhinjauri, Mtsvane Kontskhi, Ureki etc. The climate here is humid subtropical with mild winters and long summers. The season for sea bathing lasts 5-6 months and the climatic treatment for the whole year.

Georgian part of the Black Sea coast is mostly rocky, except for Ureki were the send includes magnetic iron which is used as a medical treatment.

Natural resources of Georgia provide good opportunity for tourists interested in mountain climbing, hiking and cave exploration. Skiing is also popular. Borjomi, Bakuriani, Gudauri and Bakhmaro have extremely good natural conditions for development of ski resorts. As for mountain climbing, upper Svaneti is a good place with a big concentration of summits.

Forests in Georgia cover more then 920,000 hectares of land, with the variety of trees up to 300. Woods and forest reserves are also considered to be good recreational resource.

Mineral waters play an important part in the complex of sanitary and spa treatment. There are almost all types of mineral waters and over 2,000 mineral springs in Georgia. The most widespread mineral waters are of the carbon dioxide waters. High thermal properties are characteristic of thermal sulfide, nitric, silicon waters. These waters are used in Tskhaltubo, Tbilisi, Ninisi, Tkvarcheli, Makhinjauri, zekari and Aspindza.

To give a full picture of Georgian resort resources the presence of medical mud should be also mentioned here. Resort Akhtala functions on the basis of the pseudo volcanic mud of Akhtala hills and the sulfide mud of lake Kumisi is used in the Tbilisi balneological resort.

Table 1: Potential Capabilities of the Georgian Recreation Regions

Region                   # of beds (,000)
Georgia                  738
West Georgia             513.8
 - Ajara                 75
 - Black Sea Coast       115
 - Imereti               58.4
 - Svaneti               20.8
 - Racha                 19.6
East Georgia             224.2
 - Tbilisi               95.7
 - Borjomi-Bakuriani     55.6
 - East Caucasus         21.7
 - Meskhet-Javakheti     24.2
 - Kakheti               27

Note: This table does not include information on Abkhazia and Samachablo.

Table 2: Dynamics of Tourists Movement in Georgia in 1995-97

Year Entering Tourists   Leaving Tourists
1995      85,492              228,676
1996      116,980             219,227
1997      313,293             355,046


This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)