Georgia’s Thriving Tourism On Our Mind
Keeping tourism resilient and prosperous
Tourism in Georgia is incredibly strong. At the intersection of Europe and Asia, the small country has beautiful natural topography, as well as a rich cultural history. And all of this is incredibly important for the country’s economy.
From 2018–2019, tourism accounted for 7.5% of gross domestic product (GDP) growth. And in 2019, the country received a record 9.3 million international visitors — a 7% increase from the previous year.
COVID-19 did negatively impact Georgia’s tourism industry, but it was able to recover somewhat in 2021 and the start of 2022, with the help of local institutions such as the Georgia National Tourism Administration, supported by USAID, which managed to help safely reopen the country to international travelers.
Unfortunately, Russia’s invasion of Ukraine has also caused political and economic uncertainty that continues to affect the economy of neighboring countries, including Georgia’s tourism sector.
Recognizing how crucial the tourism industry is to the country’s economic growth, the Government of Georgia has taken steps to eliminate barriers and open more opportunities for tourism, including easing visa requirements, repairing roads, privatizing infrastructure and hotels, and offering tax cuts for tour operators.
From the local wineries in Kakheti, to vibrant seaside restaurants in Batumi, to vast mountain ranges in Kazbegi, Georgia is an attractive tourism destination that appeals to nature lovers, outdoor adventurists and thrill seekers, and wine and food aficionados.
USAID recognizes the important mix of economic growth and climate change in the country’s tourism industry. Sustainability is key.
Teaming up with the U.S. Department of the Interior since 2019, USAID works with local partners to strengthen management of the country’s national parks as part of a much larger effort to bolster Georgia’s tourism industry. The goal is to encourage private sector partners to invest in getting more adventurous thrill-seekers, outdoor enthusiasts, and ecotourism guests from around the world to visit, while simultaneously enhancing economic security in the country’s rural communities.
“Eco-tourism is particularly beneficial for countries like Georgia,” says Gocha Lobzhanidze, who leads the National Parks and Eco-tourism program funded by USAID. “It results in higher spend rates and more money circulating in local communities. It also introduces much-needed job creation in rural areas, ultimately giving youth, men, and women more opportunities to generate income.”
“Georgia is gifted with a tremendous natural beauty where tourism makes sense for its overall growth and development,’’ Gocha continues. “The country’s natural beauty, in all its abundance, needs to be managed sustainably. And the country’s national parks are especially important.”
In the past, the U.S. Government has supported national park management through programs implemented through the U.S. Department of Interior’s International Technical Assistance Program, as well as the USDA’s Forest Service.
Now, USAID’s support for the national parks system is focused on eco-tourism as a key driver of economic growth.
That’s why USAID launched the five-year project with the U.S. Department of the Interior, as part of its overall efforts to conserve and protect parks for current and future generations, while generating economic opportunities for people living in rural communities. The project will also support cross-border cooperation to enhance Georgia’s development as a strong regional tourism hub.
Staying Resilient
Like any destination connected to nature, the negative effects of climate change could pose future challenges. From rising temperatures to unpredictable seasonal rains, climate change could negatively impact the delicious food, wine, and beautiful scenery that attracts so many tourists.
Because of this, Georgia is taking action now through several programs that USAID supports. One effort works with small and medium enterprises in Georgia to accelerate climate-smart agricultural growth, while also creating new jobs and improving income among Georgian farmers.
To scale up variable renewable energy sources and diversify local power generation USAID Securing Georgia’s Energy Future Program works with public and private sector partners to help Georgia modernize its energy infrastructure and encourage investment in new, climate-friendly sources of renewable energy production. By promoting investment in new, diverse, domestic renewable energy generation sources, it helps ensure that Georgian households, businesses, and communities have stable access to sustainable, affordable, and clean energy and helps Georgia build resilience against malign influence, including reducing dependence on energy imports and deterring cyberattacks against energy infrastructure. The activity also promotes key energy sector reforms to deepen Georgia’s integration with its Euro-Atlantic partners and make its energy sector more transparent, competitive, and attractive to private investment.
In addition to USAID, Georgia works with other Euro-Atlantic donors on climate mitigation efforts, teaming up with Germany’s development agency, GIZ, to create Georgia’s 2030 Climate Change Strategy — which launched in 2020 and identifies specific actions that support the Georgian economy and put the country on the right path to meet national and international climate goals. Examples include protecting Georgia’s coastlines and identifying a long-term vision for reducing greenhouse gas emissions by 2030.
By working together with local organizations, USAID will continue to amplify and support Georgia to be sustainable and to prosper — both now and in the future.
About the Author
Katherine Morgan is a Senior Communications Specialist at USAID.
About USAID’s Work in Georgia
USAID is an avid supporter of Georgia’s development, officially beginning operations in the country in 1992 and has since then provided close to $2 billion in assistance — and today dedicates approximately $75 million annually to projects that focus on building resilience to malign external influence, fostering citizen-responsive governance, and promoting inclusive economic growth that results in jobs. The Economic Growth portfolio prioritizes, diversifying markets, promoting Euro-Atlantic integration, enhancing energy security, and mitigating climate change.
