Title

How to Increase Tourism in the Republic of Georgia?

Department

Management & Entrepreneurship

Document Type

Article

Publication Date

11-13-2013

Abstract

The Georgian economy is based on open trade and capitalistic growth model centered on free flow of goods and services and capital. This free market environment is complemented by a democratic political system which renders the status of Georgia as a modern "market-democracy" in the global economic and political order. Georgia is one of a handful of countries which was able to transition successfully from a centrally planned economy into a market based system and from one party communism into a multi-party democracy through the well-known "rose revolution". Georgia, like other emerging economies, has the long-term goal of raising the standards of living of its citizens as rapidly as possible and in a sustainable fashion. Especially given the size of its economy, this can be achieved if Georgia focuses on its core competencies and can carve a niche for itself through specialization in tourism. This paper presentation suggests that there are ways that Georgia could further expand its already vibrant tourism industry by deploying specialized private and public sector resources. In so doing and in addition to tourism, Georgia can jump start a number of related industries which would benefit from such endeavor. If successful, this strategy has the potential of delivering higher long-term growth and lowering the natural rate of unemployment while increasing incomes for the citizens of Georgia.