UPWARD PATH

Georgia’s MICE sector is on the up with striking meeting spaces, broad incentive opportunities and increased airline capacity from the Gulf

MICE is growing in mountainous Georgia as more hotels open, Georgia’s economy diversifies and word spreads of its spectacular regions

Five years ago, there weren’t many Gulf travellers who had been to Georgia but now, thanks to increased airlift across the Middle East, along with sustained efforts to promote tourism, it’s a well-known destination. With its fresh mountain air, rich history and distinctive ‘B&F’ – wine having a higher status than food in these parts – the omens are positive. As a jet-lag-free bonus, it shares the same timezone as the UAE and it’s a convenient three-hour hop north to Tbilisi.

In the first half of 2018, international visitors rose 16.9 per cent to 2,997,448, with the Middle East up 35.1 per cent to 39,445 – carrying on the momentum from 2017, when the number of travellers from the region rocketed 84 per cent.

Georgia welcomed 7.9 million international visitors last year, up 20.2 per cent, and tourism revenue rose 27 per cent to US$2.7bn – and now attention is focusing on how best to attract lucrative MICE business.

The Convention and Exhibition Bureau of Georgia, part of the tourism department, formed two years ago, as the need for a dedicated arm became apparent as business travel grew in tandem with an economy which recorded CAGR of 4.1 per cent between 2012-2017. Alongside the hospitality boom, financial services expanded 11.2 per cent in the same period, and other key sectors include energy, logistics, manufacturing and outsourcing.

A glass-covered facility protruding from the greenery above the city is taking shape, not far from the Funicular where some of the 2,000 Open Government summit delegates held break-out meets in the Mtatsminda park, and plans are afoot for another cable car link which will join the city centre. “It will be a venue for about 850 to 1,000,” said Amiran Ivanidze, Chief Operating Officer for the Convention and Exhibition Bureau of Georgia. There are plans for a hotel and golf course beyond, with the first phase due to be finished next year.

Other changes include the refurbished Sheraton, which will have a 1,000-person venue by the end of the year, with up to 15 break-out rooms, and a Pullman aims to open next Spring, which will hold up to 900 delegates. “By the end of next year, the city will be transformed with the amount of venues we have, and number of room nights we can accommodate” said Ivadnize.

He added that its membership now stands at 44 members. “Most of our MICE comes from corporates and we have conferences throughout the year – which wasn’t the case a few years back,” he said. “Initially people thought we were taking away their business and it was hard to get members, but once we got the main brands on board, the DMCs came in and we started doing roadshows.”

In future, he wants less members. “We want quality not quantity,” he added. “We will implement new criteria from next January and working out the best way forward, in terms of obligations or introducing membership fees. Ultimately we may change to a PPP or become completely private.”

In its first year, it won the bid to host the Annual Congress of Guides which will be held next year. “The boom in tourism has been so rapid, so this congress will help us learn a lot too.”

MANAGING GROWTH AND RISING DEMAND

Georgia faces several economic challenges. Its population is half the number of annual visitors, the average monthly salary is US$340 and stunning topography – while a magnet for visitors – poses challenges in terms of development and revenue distribution.

In terms of hospitality, demand currently exceeds supply and international upscale brands are enjoying the highest occupancies of 72 per cent. Up to 4,000 units are expected to come on stream next year, but there are sectors which are untapped. Looking into the future, there are two segments which have to come up – the midscale and high-end luxury.

Investors have the option to co-finance franchises for hotels (GEL600,000 for two years) and to court film tourism, rebates up to 25 per cent are available.

Infrastructural investment is ongoing and the main points are connected; you can travel from Tbilisi to Batumi on the Black Sea coast in five hours, and the three main

BUSINESS IN GEORGIA

▶ Strategically located at the crossroads of Europe and Asia ▶ Free Trade Agreements with EU, China, Turkey and CIS (Hong Kong from 2019) ▶ 9th place in World Bank’s Ease of Doing Business Index ▶ Skilled yet competitively priced labour force ▶ Stable and well-developed banking sector ▶ 18 per cent VAT and 15 per cent Corporate Profit tax ▶ FDI from the UAE totalled US$62 million in 2017 TOP TO BOTTOM: St. George's Statue in Freedom Square; new MICE facility above Tbilisi; Stamba hotel bath; view from Jvari Monastery airports ( Tbilisi, Batumi and Kutaisi) serve the main catchment areas. Kutaisi is building a new airport terminal.

Hualing Group, which began investing in the country in 2007, is among the major names driving growth and it is now involved in eight projects, including Hualing Hotels & Preference Tbilisi (see Tried and Tested review, page 60). The entire Sea New City district near the hotel is undergoing expansion with new residential blocks taking shape.

TRIPLE TOURISM FOCUS

My tour of the new Stamba Hotel – formerly a Soviet publishing house and now an enchanting space with its plant-laden lobby, glass-bottom rooftop pool and fabulous Roastery (an on-site museum plans to open in September) – coincides with a tourism function to mark Georgia’s 7 millionth visitor and new ‘emotions are Georgia’ campaign. New guidebooks, featuring Social Media posts from travellers, are published on Nature & Adventure, Wine & Food and History & Culture themes. georgia.travel