4IpaUJbnm

trends in the development of tourism in Georgia - if previous travel agencies of the country
have focused on outbound tourism, it is now more profitable for them to be engaged in
inbound tourism. In the structure of tourism in Georgia can be traced mainly flows from
Europe – in 2014 they accounted for 97.1 % of international arrivals, 0.6 % from Americas,
1.5 % – Asia, 0.1 – Africa and 0.7 % - Middle East (GNTA).
One of the most important factors in the development of economic cooperation between
the countries is the geographic proximity – neighborhood factor, which contributes to the
rapid and convenient movement of goods, travel of citizens from country to country,
rapprochement and understanding between cultures, reduction of costs for the delivery of
goods, and so on. In the year of 2014, overall 88% of international arrivals is from countries
that have a common border with Georgia. In particular, the share of Turkey is 30% (it is on
the first place), Armenia – 24% (second place), Azerbaijan – 20% (third place) and Russia –
14% (fourth place) (GNTA).
In 2013, the International tourism expenditures reached $ US 537 million and receipts
amounted to $ US 1 916 million (Table 1). According to the World Travel and Tourism
Council in 2014, the direct contribution of travel and tourism in Georgia's GDP amounted to
5.9 % (GEL 1,726.4 mln), and taking into account the indirect contributions – 20.0 % (GEL
5,867.6 mln). Directly this industry employs 85,000 people, representing 4.8 % of total
employment, and with the related industries, this figure amounts to 300,500 people and
16.9 % (WTTC, Georgia, 2015). Accordingly, tourism is increasingly becoming a factor of
multiplier effect on the economy and social sphere of the country.
One of the trends in the development of international tourism in Georgia is improvement of
Travel & Tourism Competitiveness. According to the World Economic Forum in 2015,
Georgia is on the 71 th place on Travel & Tourism Competitiveness among 141 countries of
the world (T&TCR, 2015), and in 2013, it was ranked 66 rd among 140 countries (T&TCR,
2013). The efficiency of national economies is determined by their competitive ability in the
world markets. According to the Global Competitiveness Index 2014-2015 rankings, Georgia
is on the 69th place among 148 countries. By the classification of the world economic forum
(WEF), it belongs to the group of countries at the stage of Efficiency-driven (GCR, 2015-
2016).
The tourism potential of the country as a basis for the development of international
tourism in Georgia
Georgia is the country with small economy, which in the post-soviet period endured deep
political and economic crisis, and underwent through the serious social-economic
transformation. If in 1990 GDP structure of Georgia constituted of the share of the
Agriculture with 31.7%, of the Industry with 33.1% and of the Services with 35.2 %, in 2014
those indicators were 9.2%, 24.4% and 66.4% accordingly (World Bank). Among the services
the significant position is held by the tourism. According to WTO data in the export of
commercial services Travel’s portion accounts for 60.5%, and imports for 19.0% (WTO,
Georgia, 2014).
Tourist destination occupies an important place in the model N. Leyper, which depends on
the attractiveness of having tourism potential. Tourism resources are the basic condition for
384