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Terms of fierce competition in the global tourism market requires a search for new methods
of generating competitive advantage. This complex problem can be solved in several ways:
1. Reducing costs on the formation, promotion and implementation of the tourism product
in order to reduce its price. It should be noted that in the global financial crisis, many
have chosen this path of development.
2. Development of its own system of promotion of tourism products. This path is
associated with significant financial costs and can therefore increase the cost of the
tourist product to the point that instead of competitive advantages negative
consequences will be obtained. Accordingly, the choice of this path requires careful
analysis in order to identify the expected results.
3. Use of the integration processes, the most important advantage of which is generating
synergies. Currently, following types of integration groups could be marked in the
tourism market: strategic alliances, business networks, clusters, associations, and so on.
Based on the international experience, in our opinion, in order to enhance the
competitiveness of the travel and tourism in Georgia it is advisable to use the cluster
approach, which could strengthen the country on the world tourism market.
According to the forecast by 2025, the direct contribution of Travel & Tourism will reach
GEL3,396.6 mn (6.9% of total GDP), and the total contribution will be GEL11,508.4 mn
(23.5% of GDP). Number of people employed in the tourism sector will increase to 99,000
jobs (5.8% of total employment in the country), and the total contribution, including indirect
jobs – 346,000 jobs (20.4% of total). Visitor exports will grow by 7.2% pa, to GEL7,035.6 mn
(34.5% of total). Travel & Tourism investment rise by 6.2% pa over the next ten years to
GEL483.2 mn (4.0% of total) (WTTC. Georgia, 2015). To achieve these indicators the
government should create a highly efficient and competitive tourist complex, which will
provide opportunities for customer satisfaction in a variety of tourism products and
services.
Conclusions
State policy in the field of tourism has gradually improved conditions for the development of
international tourism in Georgia. As a result, tourism can be a real driving force for the
economic development of the country. In this case, it is not a panacea for all economic
problems. Therefore, the Government of Georgia should make great efforts to optimize
international tourism, taking into account the costs that may occur in its development.
Having sufficient capacity for the development of virtually all kinds of tourism, Georgia
should improve competitiveness and strengthen its position in the global tourism market.
References
Fox News (2016). 10 under-the-radar destinations for 2016. Retrieved from:
http://www.foxnews.com/travel/2016/01/13/10-under-radar-destinations-for-2016/
GCR (2015-2016). The Global Competitiveness Report 2015-2016, World Economic Forum. Geneva, Switzerland
http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.pdf
Gerasimenko V. G. (2013). Theory of system approach to the research. Retrieved from:
http://dspace.oneu.edu.ua/jspui/handle/123456789/553
Getz D. (1986). Models in tourism planning: Towards integration of theory and practice.
GNTA (Georgian National Tourism Administration). Retrieved from: http://stats.georgia.travel/Default.aspx
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