Issue no: 1257 • JULY 31 - AUGUST 6, 2020 • PUBLISHED WEEKLY PRICE: GEL 2.50

In this week’s issue... FOCUS CENN to Support East ON YORK TOWERS Point’s Green Initiatives For the harmonious NEWS PAGE 3 development of your family PAGE 7 The News-Fakeism in Our Life POLITICS PAGE 4 The Balance of Strength in the Black Sea Region & Georgia’s Current Challenges. Part I POLITICS PAGE 6 Construction Company Dagi – A Story that Began 20 Years Ago BUSINESS PAGE 8 Carrefour: The Crisis Management Strategy Amid a Global Pandemic BUSINESS PAGE 8 Tbilisi Hills Golf & 47% of Coronavirus Cases in Residences Marketing Director On Bringing Golf Georgia Imported from Russia Culture to Georgia BUSINESS PAGE 9 BY NINI DAKHUNDARIDZE The Wilds of Tusheti – A

he National Center for Disease Week with the Shepherds Control and Public Health published a report on Tuesday according to SOCIETY PAGE 11 which the largest number of COVID cases in Georgia had been imported Tfrom Russia as of July 11. Prepared for Georgia Today Business by The report gives specifi c numbers: out of 980 Markets Asof27ͲJulͲ2020 coronavirus cases, 272 were imported, which STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP8.00 Ͳ7,0% Ͳ24,7% GEOROG04/21 101.37(YTM4.83%) +0,0% +1,6% makes up 27.7% of the total cases. 46.7% (127 GeorgiaCapital(CGEOLN) GBP3.70 Ͳ6,3% Ͳ19,6% GEORG04/21 102.51(YTM3.22%) +0,1% +0,2% cases) of these 272 cases came from Russia, 8.4% GHG(GHGLN) GBP0.69 Ͳ20,5% Ͳ23,3% GRAIL07/22 103.17(YTM6.00%) +0,7% +1,2% (23) came from Turkey, 8% (22) came from Azer- TBCBankGroup(TBCGLN) GBP7.50 Ͳ2,6% Ͳ16,0% GEBGG07/23 101.15(YTM5.58%) +0,5% +1,5% baijan and 7.7% (21) came from Armenia. COMMODITIES Price w/w m/m CURRENCIES Price w/w m/m CrudeOil,Brent(US$/bbl) 43,41 +0,3% +5,8% GEL/USD 3,0836 +0,3% +0,9% Six new cases of COVID-19 were registered in GoldSpot(US$/OZ) 1942,24 +6,8% +9,7% GEL/EUR 3,6239 +3,0% +5,7% Georgia Wednesday-Thursday this week, bring- GEL/GBP 3,9722 +2,1% +5,4% INDICES Price w/w m/m GEL/CHF 3,3520 +5,6% +3,9% ing the total number of cases to 1160, the gov- FTSE100 6104,88 Ͳ2,5% Ͳ0,9% GEL/RUB 0,0431 Ͳ Ͳ1,6% FTSE250 17157,94 Ͳ1,3% +0,3% GEL/TRY 0,4492 +0,2% +0,8% ernment-run website stopcov.ge reported. DAX 12838,66 Ͳ1,6% +6,2% GEL/AZN 1,8139 +0,3% +0,9% A total of 937 patients have recovered from DOWJONES 26584,77 Ͳ0,4% +6,3% GEL/AMD 0,0064 ͲͲ Elvis Barukcic/AFP via Getty Images NASDAQ 10536,27 Ͳ2,1% +8,0% GEL/UAH 0,1116 +0,1% Ͳ2,5% coronavirus; 17 have died. 6489 persons are under MSCIEMEE 150,53 +2,8% +2,1% EUR/USD 0,8509 Ͳ2,6% Ͳ4,5% a 14-day mandatory quarantine and 337 are under nected with the Gardabani municipality of east- ity remains under lockdown; the government is MSCIEM 1073,14 +0,8% +7,4% GBP/USD 0,7763 Ͳ1,7% Ͳ4,2% SP500 3239,41 Ͳ0,4% +7,7% CHF/USD 0,9199 Ͳ2,0% Ͳ2,9% observation in hospitals. ern Georgia and the Lilo open market in Tbilisi. carrying out monitoring of all open markets in MSCIFM 2120,06 Ͳ1,0% Ͳ0,6% RUB/USD 71,6083 +0,4% +2,6% Most of the newly registered cases are con- The Karajalari village of Gardabani municipal- Georgia to curb the spread of the virus. GTIndex(GEL) 1582,68 ͲͲTRY/USD 6,8700 +0,2% +0,1% GTIndex(USD) 1208,13 ͲͲAZN/USD 1,7000 ͲͲ GEORGIA TODAY 2 NEWS JULY 31 - AUGUST 6, 2020 Georgian PM Speaks with US Secretary of State, Mike Pompeo BY BEKA ALEXISHVILI Ken Walker University Clinic eorgian Prime Minister Giorgi Gakharia spoke with the US Secretary of State for Medical Rehabilitation Mike Pompeo over the phone about the strategic Gpartnership between the two countries. Opens in Tbilisi The discussion, which was held over omy that will contribute to the develop- the phone because of the COVID-19 BY ANA DUMBADZE ment of medical tourism in Georgia. pandemic, was still oriented towards a "The Medical Rehabilitation Center face-to-face meeting which is to be held most prolifi c problem for Georgia, which countries, such as by gathering American for 200 children and 250 adults in Geor- by the end of the year. is occupation and the situation in the investments in Georgia and broadening he Ken Walker University gia, together with the infrastructure of The two sides conferred on the global occupied territories. The PM gave detailed the free trade agreements. Clinic for Medical Reha- the University Clinic, is a joint achieve- pandemic and the steps that can be taken information to the Secretary regarding One of the most prominent topics which bilitation has been opened ment," said Giorgi Gakharia, the Prime to prevent the further spread of the virus, the harsh and aggressive tactics used by was debated in the conversation was the in Tbilisi, at Gudamakari Minister of Georgia. as well as to strengthen and deepen the the Russians when capturing and impris- Constitutional Amendments ratifi ed by St., 4. "I want to thank our international part- dynamics of the strategic partnership oning ethnic Georgian citizens. The two the Georgian Parliament regarding the TThe clinic has another branch in Batumi, ners, the US government, for their sup- between the two countries. sides also discussed security in the region electoral process. The PM assured the capital of Georgia's Adjara region, port. Of course, this would not have been Pompeo complimented the Georgian and examined what could be done to Pompeo that these changes would at Baku St., 8. possible without systematic cooperation. authorities on the handling of the virus, improve the overall situation. The US enhance Georgia’s democratic develop- Prime Minister Giorgi Gakharia, Chair- Competence from the US Emory Uni- and the effective steps taken to prevent Secretary of State once again reaffi rmed ment and that it would bring further man of Parliament Archil Talakvadze versity, support from the Georgian busi- further casualties and spread. The Geor- that Washington supports Georgia’s ter- pluralism in the Georgian Parliament. and US Ambassador to Georgia Kelly ness community, and support from the gian PM on his side thanked the United ritorial integrity and sovereignty. The Prime Minister also praised US Degnan attended the opening ceremony. Tbilisi Medical University played a big States for numerous initiatives over the The conversation also touched on Ambassador Kelly Degnan and her The Ken Volker University Clinic is role. All this has given us the result we years aimed at assisting Georgia, in par- Georgia’s Euro-Atlantic aspirations. One engagement in the internal processes of equipped with American and European have. This medical center will be fully ticular underlining and thanking Pompeo of the main topics here was Black Sea the country. high-technology medical facilities and focused on the functional independence for his personal support for Georgia and Security, which plays a monumental role The conversation between the two provides multi-discipline rehabilitation of people with disabilities, and there is its democratic development, as well as in the security of the Euro-Atlantic alli- was concluded with the agreement that services. no greater goal than this to make people for supporting its security and territorial ance. The PM affi rmed that Georgia the election process in Georgia will be The clinic will simultaneously serve with disabilities worthy partners in our integrity. The PM also invited the Sec- remains a trustworthy partner for NATO, held transparently, in a free and just up to 200 children and 250 adults. daily lives. This is the goal of both the retary of State for an offi cial visit to the US, and the EU in the Black Sea environment, these requirements and At the same time, due to the growing state and each of our citizens. We must Tbilisi. region. their fulfi llments being a guarantor for interest in the Ken Walker Clinic from do everything to make this medical- One of the main topics of discussion The dialogue between the two country the country’s approach to democratic the neighboring countries, additional rehabilitation center successful," the between the two sides was the matter representatives also comprised of deep- development and Euro-Atlantic integra- funds will fl ow into the Georgian econ- head of government said. of security. The talks also engaged the ening economic ties between the two tion. GEORGIA TODAY JULY 31 - AUGUST 6, 2020 NEWS 3 CENN to Support East Point’s Green Initiatives Important Memorandum Signed to Support Environmental Protection & Georgia’s Sustainable Development

BY KATIE RUTH DAVIES

nvironmental protection- the care and respect of the world and nature in which we live and on which we depend for survival; reduce, recycle, reuse-E the modern buzzwords we all have in mind, many recognize the need for, but few know how to implement effectively. In Georgia, it is largely thanks to the initiatives of businesses and NGOs that we are being helped along the way, with awareness also growing higher up, in government and city halls, of the need to do more to look after our planet. One positive move in this direction was the signing, on July 13, of a four-party memorandum to assist in the environ- mental protection and sustainable devel- opment of the country. The signees of the memorandum, which was initiated by the East Point Shopping & Entertain- ment Center, were the Ministry of Envi- ronmental Protection and Agriculture of Georgia, Tbilisi City Hall, environ- mental organisation CENN and the East Point Shopping & Entertainment City itself. From the minute it was signed by the parties, it became active for an indef- inite period, meaning the four will be working closely together to raise the public’s awareness on the need for envi- ronmental protection, and to deepen and of each of their environmental protec- randum in Georgia. them on for safe processing; at East Point, core values. Without these initiatives share knowledge and experience. The tion goals. “We believe, with East Point’s initiative, you can also separate waste, use a mobile and active steps forward from all sides memorandum will, above all, aim to East Point now offers its customers: a very important memorandum has been charging station for electric cars, free of we wouldn’t be able to achieve the nec- inspire the public to take greater respon- - An electric battery collection point; signed. We can all manage waste reason- charge; and in June, we collaborated with essary goals to save our planet. More sibility for environmental protection. - Mobile charging station for electric ably every day, and if we realize the impor- plasticwatcher.ge and produced eco- importantly, consumers are becoming By signing the memorandum, all of the cars, free of charge; tance of it, we’ll play a big role in the friendly bags made from processed col- increasingly environmentally conscious parties agreed, depending on their com- - recycling corners for various types of improvement of the world,” Teiko Lomi- lected polyethylene bags and recycled and now they are being offered a choice petence and possibilities, to back events waste like plastic, aluminium and glass. nadze says. “That is the exact goal of this commercial banners. We believe that that was not available to them before,’ organized and implemented by any of GEORGIA TODAY spoke to Teiko memorandum: to popularize this issue. our eco-friendly initiatives will inspire Nana Janashia says. the other signees related to solving envi- Lominadze, the Marketing Director of In addition, East Point has long imple- a lot of people and push them to care GEORGIA TODAY in particular looks ronmental problems and which are in East Point Shopping and Entertainment mented many eco-friendly projects. For more for the environment.” forward to hearing more from this fabu- line with the principles of environment City, and Nana Janashia, Executive Direc- example, we established the fi rst electric ‘It’s important that both the private and lous four on what we, the general public protection. In short, by working together, tor of CENN, to fi nd out more about the battery collection point in the country, the public sector see environmental and businesses, can do to better protect they will be boosting the overall impact signifi cance and need for such a memo- where we collect batteries and then send solutions as part of their mission and the beautiful Georgian nature. EBRD to Finance Modern Municipal Infrastructure in Bakuriani

in an important resort town. Improving BY ELENE DZEBISASHVILI Georgia’s municipal infrastructure, espe- cially in the regions, is of paramount importance for the EBRD. The project he European Bank for will also help promote gender equality Reconstruction and Devel- across the workforce.” opment (EBRD) is provid- The fi nancing will help to acquire spe- ing a €5 million loan to cial vehicles for street cleaning, snow improve public transport removal and waste collection, as well as Tand services in Bakuriani, a winter resort to purchase multi-purpose trucks and in the high Caucasus. modern buses. EBRD Regional Director for the Cau- The EBRD is also providing technical casus, Catarina Bjorlin, said: “This pro- cooperation funding aimed at training ject will help to improve the quality of and promoting women for bus-driver municipal services and safety measures roles. Volker: Amendments to Law on Electronic Communications Quite Reasonable

“One of them is that when you have strengthening of the administrative BY NINI DAKHUNDARIDZE strategic assets that are considered to regulators so that the companies follow be important for the national safety of the government’s decisions – that is also Georgia – they should not be sold to very smart. So, I believe that the law urt Volker, a former US private companies without the govern- itself is very reasonable,” the American Ambassador to NATO, ment permission. At the same time, when diplomat noted. while in dialogue with a private company is an owner they The former US Special Representative ‘Interpressnews,’ discussed should not be allowed to sell the assets for Ukraine Negotiations also tweeted the new amendments to the without the government permission – about the matter. KLaw of Georgia on Electronic Commu- this is how it will be possible to avoid "Reversing or taking over past invest- nications. the strategic property getting in the hands ments can scare off future investors. The American diplomat talked about of Russia or China. Ensuring this does Strategic asset legislation is reasonable; the positive changes that he believes will not happen through the law is very smart. implementation should be reasonable be brought about through the amend- The second thing that I believe will be too. Negotiated solution required," reads ments to the Law. Image source: NBC News achieved with these amendments is the the tweet of the American diplomat. GEORGIA TODAY 4 POLITICS JULY 31 - AUGUST 6, 2020 US-China Rivalry: How to Save Vulnerable States, the Case of Georgia

as vital and long-standing as they are as it might always seem. Of a more tan- BY EMIL AVDALIANI, PETER M. TASE evident, and characterize other major gible essence have been the USAID pro- powers such as Turkey, Russia and the grams to improve Georgia’s infrastruc- European Union. ture, which is traditionally hampered by he US’ tough stance on Despite Vice President Mike Pence’s a diffi cult geography (a factor which China reflects principal visit to Georgia in August 2017, on the always limited Georgia’s political power shifts in the US foreign occasion of the 25th anniversary of bilat- and ability to control far-fl ung territo- policy and National Secu- eral relations, Washington has been slow ries). rity that the White House in strengthening its commercial coop- One of the important future tasks for Thas introduced in cyberwarfare and eration with Tbilisi. The lack of US the United States is to support the suc- counterintelligence to confront Beijing’s engagement could invite China’s Belt cessful construction of the Anaklia Port, geopolitical and commercial infl uence and Road Initiative to play a bigger role as the port’s location and size would worldwide. Indeed, under Xi Jinping, in the region, leading to a weakening US increase not only Georgia’s transit capa- China has developed a well sophisticated infl uence in Europe. bilities but also the implementation of Image source: globalvillagespace.com blue water navy and is heavily focused Still, though there might have been the US strategy in Georgia: helping Tbi- jan’s strategic interests over Georgia are (like many developing nations) Georgia on improving China’s cyber capabilities vacillations in Washington’s position lisi become less dependent on alterna- more aligned than they may appear in scores relatively poorly on measures of worldwide. China’s increased military towards Georgia in the past years or tive transit routes. sporadic times. corruption and income inequality, rank- activities in the South China Sea and the decades, overall, the American strategic Despite Georgia being a geographically Another crucial sphere of infl uence ing near countries like Nicaragua and Indian Ocean, combined with a well thinking and posture has remained intact. small country with limited military and where the US could provide vital exper- the Ivory Coast.” sophisticated military diplomacy cam- One of the geopolitical imperatives of economic potential, it is still important tise and assistance is in the economy. No Georgia lacks the elements of a strong paign in Europe, its advent as the prin- the US since the breakup of the Soviet for the US to evaluate the internal polit- long-term stability for Georgia would national economy and advanced indus- cipal geopolitical power in the Indo- Union was to enable newly independent ical developments. As Georgia gears up be possible unless the country enjoys trial sector, making the country vulner- Pacifi c region and on the edges of Europe, Georgia to use its geographic position for crucial parliamentary elections this considerable economic growth based on able to regional political and economic are the contemporary result of America’s as a nodal point in the nascent South October, extensive cooperation with industrial and manufacturing capabili- developments. inward looking posture. Caucasus energy and transport corridors. various parties should be carried out. ties. In retrospect, it can be argued that The US-China trade standoff has been Moreover, the effectiveness of the Geor- From the US perspective, the most pop- As Steve H. Hanke, a professor of applied Washington’s policy towards Georgia transforming the global economy, and gian corridor would underpin a bigger ular parties in Georgia are in fact pro- economics and co-director of the Insti- has been quite consistent since the end the ongoing incommensurable challenges project, the Trans-Caspian Corridor western. This serves as a good basis for tute for Applied Economics, Global of the Soviet Union. There were periods demand a candid, shared leadership that (which consists of a pipeline, port-to- the composition of a long-term strategy Health, and the Study of Business Enter- of low-intensity cooperation, alternated evokes a decades-long transatlantic part- port logistical infrastructure, etc.) that and hit the reset button. prise (IAEGHSBE) at the Johns Hopkins by a deepening of bilateral relations, but nership. is still an idea with only minor success, An important pillar of the US policy University, said in a piece in 2014: “The overall, the US strategic intent towards Contrary to the existing approach in but which may, under altered circum- in the South Caucasus and Georgia in Georgian economy tanked in the last Georgia has remained the same: improv- international trade, the Pentagon has stances, become a geopolitical reality. particular would be Washington’s deeper days of the Soviet Union and the fi rst ing the infrastructure as a basis for the continued to enhance its military pres- This would inevitably increase Georgia’s cooperation with Turkey. Although the years of independence from Russian country’s strengthened sovereignty ence and defense cooperation with a few independence vis-à-vis Russian trans- two states have experienced some trou- rule: gross domestic product declined against external geopolitical odds. countries that are on China’s fl anks, while portation networks. This vision has bled waters in recent years, Ankara and 68% and infl ation hit 1.500% between Today, the EU considers China as a their maritime boundaries are pressed proved to be successful and in the almost Washington are still strategically aligned. 1990 and 1994. Since then, however, the systemic rival and serious economic by Beijing’s ever growing naval forces. 30 years that have passed since the end It is in Turkey’s interest to uphold Geor- republic has grown rapidly, with GDP competitor. These matters are addressed European Diplomacy has increasingly of the Soviet Union, big steps have been gia’s security, as the latter provides the increasing roughly fi vefold in the new constantly in the EU-NATO discussions; depended on the current moves of the made to limit Russia’s energy and infra- only land corridor for Turkey to reach millennium, prices and exchange rates based on the current developments, US Department of State, and Georgia, structural presence in the country. Azerbaijan and the Caspian Sea. This of the Georgian Lari remaining stable, Washington has the opportunity to gar- as a country with aspirations for EU Though, for many, a determining fac- posture also emphasizes that Ankara is and foreign direct investment increasing ner a greater presence in Georgia and integration, has felt the heat from the tor is the US military presence near opposed to Russia’s strengthening of its steadily. Still, Georgians’ per-capita annual establish an economic foothold with ongoing abrasive transatlantic ties. The Georgian borders or in the country itself, positions in the South Caucasus. Thus, income today is less than $6,000, the geopolitical interests leading to a regional US’ interests in the South Caucasus are military protection is not as long-lasting in broader terms, Turkey’s and Azerbai- offi cial poverty rate exceeds 17%, and US military presence. The News-Fakeism in Our Life

ity has been making progress in the OP-ED BY NUGZAR B. RUHADZE duration of the millennia as a conse- quence of its struggle between good and evil. Could fake news be one of n my trove of past and current the paradigms of that perpetual clash information, the stories of the between darkness and light? It certainly now-bygone socialism and the could, but at this stage of an unbeliev- now-burgeoning capitalism are able human leap towards a source of so tightly intertwined that even improved existence, this dilemma has I can’t make head nor tail of them. The to be handled, and the lie, the fl agrantly fact that the Marxist era of our exist- hurtful and destructive lie in the media, ence was an ugly bunch of lies in our has to be stopped forever. communist teeth is now known to the How? The way all the other details entire world. It has also been recog- of our life are handled: by means of nized that the former soviets have duly creating a pertinent law and then abid- eaten their share of humble pie as a ing by it. We usually suffer a cruel consequence of the regime’s historic penchant for punishing a little child demise. At that time of rubber-stamped for breaking a plate and hiding it. Why, means of mass communication, the then, should a newsfaking journalist, news in general would be faked-up. breaking our hearts, get away with a Presently, in the epoch of universal lie which hurts society much worse freedom and ubiquitous democracy, than a kid with his or her minor prank the news still tends to be faked. The and lie? only difference is that back then, we The current hearsay about the pos- all faked our belief in government- sibility of lowering the level of free- produced news because the punish- dom of speech and democracy might ment was otherwise imminent, hence contain a smattering of truth, but the we voluntarily succumbed to it. What prospect of containing the outrageously is happening now is beyond regular proliferating faked news is much human imagination: media continues scarier, especially if we continue to fake the news but with bigger liter- encouraging the fake-mongers and ary subtlety and journalistic dexterity, rabble-rousers with our groundless and the public continues to succumb tolerance. to it, only with a newly-acquired right Trying not to keep too far from the to express its disbelief in the provided truth, I would admit that our court info, and object to it. system, as it functions today, might which contains several courts that sumable case of fake news and shame- is always a stray grain of truth in every Both styles of feeding the news to not have enough nerve and capacity have jurisdiction over specialized lessly mendacious journalist who has deliberate joke. The new special court people serve the same purpose: either to hear the possible number of fake subjects, such as a court of claims, the temerity to lie to the worst pos- is not going to be a simple scarecrow, to stay in power or to come to it. And news cases, but we can always think court of military appeals, court of sible detriment of this nation and its frightening away the fake-masters. If the resultant headache hurts only the of a ruse if we give a little strain to customs and patent appeals, and a tax due development, in collaborative it works, it will be just another mile electorate and the governed. our brains. For instance, in America, court. We could just as well introduce company with the rest of the world. in the process of formation of the Fake news is among the worst scourges they have a very complicated but into the Georgian court system a spe- The proposal sounds like one of my Republic’s genuinely independent of our time. On the other hand, it might extremely effi cient law-enforcement cial court of fake news appeals which regular tongue-in-cheek suggestions, court system, equaled to the American work as a builder of life, because human- system, including the court network, will be designed to handle every pre- but as the saying would have it, there judicial Olympus. SPECIAL OFFER ONLY UNTIL AUGUST 15!

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Batumi, Shartava St. 18 E-mail:[email protected] www.calligraphy-towers.com +995 571 02 55 55 Viber/WhatSapp GEORGIA TODAY 6 POLITICS JULY 31 - AUGUST 6, 2020 The Balance of Strength in the Black Sea Region & Georgia’s Current Challenges. Part I

and authoritarianism. Many current devel- ‘Near Abroad’ policy of maintaining areas BY VICTOR KIPIANI, opments in the region are indeed tanta- of infl uence has become much more GEOCASE CHAIR mount to the erection of a New Iron Cur- systemic in nature. tain that cuts right through the Black Sea. When considering the Black Sea, the important point is that, besides its geo- ecurity in the Black Sea region REGIONAL GEOPOLITICAL political signifi cance—enabling Russian has become a very popular CONTOURS access to the Eastern Mediterranean, the topic these days, but the often The geopolitical contours of the Black Middle East and North Africa—the region purely theoretical nature of Sea region are relatively amorphous, but also bears an internal political dimen- the interests of various actors this is not only the result of regional sion for Moscow. By maintaining maxi- Sis insuffi cient to motivate them in prac- specifi cities: this amorphousness can be mal strategic depth along the country’s tice. This question and the practical seen in almost every one of the world’s federal borders, Russia is trying to pre- solutions it calls for are directly linked ‘centres of gravity’, and the wider region vent ‘harmful’ foreign infl uences from to Georgia’s security and development that encompasses both the Black and penetrating their inner state space. as well as to the stability of the region Caspian Seas is indeed the centre of According to their own perception, this as a whole, and it is therefore vital that gravity of the Eurasian continent. Instead, enables Moscow to act according to the Tbilisi seek to forecast developments we should search for the reasons of this requirements of Russia’s choice of ‘sov- and prepare both preventative mecha- geopolitical amorphousness and uncer- ereign democracy’. nisms and timely responses to the risks tainty among various global processes It is clear that outside observers have and challenges. linked to the Cold War and the 2001 no right to question the choices a coun- In general, the Black Sea’s importance attack on the World Trade Centre. try has made to ensure its national devel- derives not only from the countries that These existing challenges have more opment—unless of course these choices lie along its shores, which is only natu- recently been worsened by Russia’s involve a disregard for international law ral, but also from its history, particularly aggressive acts in the region, particularly and order and regional security, and the Image source: fpri.org for several global actors with regional against Georgia and Ukraine; these have occupation and annexation of neighbour- interests. The Black Sea itself and the brutally ignored the established norms and foremost in ‘strategic patience’, i.e. will help us to better combine elements ing countries. Russian policy towards wider region around it have throughout of behaviour between countries and have not involving themselves in matters of competitiveness and co-operation. the Black Sea ‘aquarium’ and neighbour- history been the arena for a variety of led to a many-faceted international cri- beyond their direct interests; the French, ing countries, according to their own goals, the foremost and most decisive of sis. These challenges which have been on the other hand, have always preferred HOW RELIABLE IS logic, is precisely that: Moscow openly which was trade. The shift away from building up in the region have since been a ‘strategic autonomy’ that aims for the REGIONAL SECURITY? imposes its rules of the game, and is purely commercial interests to a larger compounded by the current coronavirus establishment of a European political When considering the reliability of exist- committed to achieving maximum results ‘Great Power’ confrontation truly began pandemic, which threatens to funda- and military identity; and Poland (as a ing security mechanisms in the Black Sea for itself as a ‘regional super-state’. when Russia established herself along mentally rearrange many things. As a last example) follows a policy of ‘strate- region, it is vital to initially identify pre- And so what has the West’s collective the Black Sea’s shores, and from 1853 result, we are now facing many critical gic embrace’ that involves maintaining cisely ‘who is who?’ It was no accident that security response been to Russia’s onwards Russian interest in the region questions whose answers are scattered direct contacts with the United States I mentioned Russia early on in the con- approach? Unfortunately, this ‘response’ has been invariably high. around the region and indeed around that bypass European structures. versation. Russia’s infl uence and the West’s could at the very least be described as The Crimean War and the later replace- the globe as a whole. This great diversity of national strate- position in the region refl ect a Kremlin irrelevant and inadequate in the face of ment of European interests with those There is very often talk of a so-called gies precludes long-term planning in doctrine that was mostly developed under reality, and given Russia’s blatant disre- of the United States and NATO progres- ‘Grand Strategy’ whose defi nition has practice and thereby limits any ‘Grand Yevgeny Primakov; this, the so-called Pri- gard for the integrity of Georgian and sively increased the perceived impor- almost become an end in itself. The Strategy’ to short-term goals and tasks makov Doctrine, aims to prevent neigh- Ukrainian territory and indeed their tance of achieving and maintaining an desirability of having such a ‘grand’ plan that are more tactical in nature than bouring countries from leaving Russia’s occupation, this irrelevance becomes infl uence over the Black Sea region. is of course perfectly understandable— strategic. I therefore believe that it would sphere of infl uence and establishing them- even more prominent. NATO has repeatedly stated the region’s we all want to know how to get from be more desirable to talk of an ‘emerg- selves as independent, self-suffi cient coun- At cause is the Alliance’s lack of focus geopolitical and geo-economic signifi - point A to point B, how long it will take ing strategy’ rather than a ‘grand’ one, tries, and indeed even to prevent any on its eastern fl ank. Compared to the cance ‘in terms of Euro-Atlantic security’, and how much it will cost—but it is also particularly as this concept allows for opportunity to do so from arising. Baltic Sea’s intensifi ed security system, most notably at its summits in Warsaw important to remember that this journey greater fl exibility when seeking to over- In practice, the Primakov Doctrine was which according to NATO terminology in 2016 and in Brussels in 2018. In con- must not involve unpredictable risks. come current risks and challenges. An used to apply different kinds of pressure constitutes an ‘enhanced forward pres- trast, the London summit of 2019 can be One of the main problems, however, is ‘emerging strategy’ is also more practi- on the countries Russia sees as belong- ence’, the Alliance’s security component said to have caused some dissatisfaction that when an attempt is made to commit cal as its approach is based upon ‘real- ing to her ‘Near Abroad’—from hybrid in the Black Sea region is of a relatively in this regard, although a meeting of the such a ‘Grand Strategy’ to paper, one istic’ and rational assessments rather war to direct and open aggression. In lower quality, as indicated in the some- joint NATO-Georgia Commission sub- often loses sight of the initial goals. This than ideological considerations, enabling reality, however, this Russian approach what humbler term ‘tailored forward sequently held in Batumi pointed out loss of the fundamental issues is fre- greater caution to be taken and increas- was nothing new and had already been presence’. This asymmetry could be the need to defi ne ‘priorities for the quently due to the absence of a common ing the chances of avoiding the occasion- employed immediately after the collapse explained 10-12 years ago, but through coming period’. understanding of the ‘Grand Strategy’ ally catastrophic results of new confron- of the Soviet Union, but it lacked spon- the prism of recent developments, the The Black Sea region’s growing role is and to the emergence of variations upon tations. taneity and theoretical ‘justifi cation’ for Alliance’s security model in the Black not at all surprising if we consider some the same theme, every one of which is In Georgia’s case, following strictly quite some time. Since Russia’s 2008 war Sea region urgently needs to be reviewed of the Western or Russian doctrines and based upon the divergent expectations rational and realistic approaches gives with Georgia, annexation of Crimea and and readjusted. theories that describe it as a ‘rampart’ or of individual countries at different times. us the ability to adapt to uncertain pro- recent attempts to turn the Black Sea even as a dividing line between democracy The Germans, for example, believe fi rst cesses, and in the wider Black Sea region into a Closed one, however, Moscow’s To be continued in next week’s GT.

BUSINESS Natakhtari – The Offi cial Cold Beer for Summer 2020

Rather than being product-oriented and ADVERTORIAL doing repetitive products or activities, we choose to invest in needs,” says Ana Karchava, Marketing Manager of EFES o you know how to fi nd Georgia. out if your beer is 100% “We are always thinking how we can cold? The temperature is make our consumers’ lives simpler and very important to really bring them additional benefi ts. In this get a good sense of a beer’s case, we identifi ed one of the needs, Dfl avor, and the ideal temperature is said especially in summer, to drink beer at to be 4 – 6 oC. However, in our daily life, the right temperature, so that beer lov- we cannot tell when our beer has chilled ers can enjoy the full taste. This addi- to that “just-right” level, which is why tional function will make the ritual of this summer you will see a thermometer drinking beer more fun, too,” Karchava icon on Natakhtari’s label, created with notes. Thermo Ink technology. “This year has been hard for everyone The thermometer icon is sensitive to and brands have to think more about cold, meaning consumers will easily be bringing benefi ts to their consumers. able to tell when the beer has cooled to There is more integration of technology the ideal temperature: when it turns blue, and innovation in our daily lives in every it means that the beer is ideally cooled other sector, so that why not in beer? to a temperature of 4 – 6 oC. This was our starting point, and with Natakhari is the fi rst beer on the Geor- Thermo ink technology, we believe that gian market to use a thermochromic it will make it easier for our consumers label. to understand the ideal temperature of “We believe that being consumer-driven their beer, and it will make the experi- requires excellent listening skills and ence more fun for sure. We will keep empathy in order to understand your investing in our consumers and our cul- consumer needs and act accordingly. ture. Keep your eyes open!” GEORGIA TODAY JULY 31 - AUGUST 6, 2020 BUSINESS 7

Georgian Economic Climate (Q2, 2020)

• The import volume is expected to ism (both local and foreign). 47% stated assessments of the present economic increase in the coming six months; that revenue will decrease by 60-80%, situation, as well as expectations for the • The export volume is expected to 27% expected a decrease by 40-60%, next six months. The scale ranges from decrease less than the import volume, while a decrease by 80-100% and 20-40% –100 points to +100 points. An index of resulting in an improved trade balance was expected by 13% and 7%, respec- –100 means that all experts assess the in the next six months. tively. economic situation as deteriorating (negative), while an index of +100 indi- SPECIAL QUESTION METHODOLOGY cates improvement (positive), and 0 In the third quarter of 2020, Georgian The ECI is based on quarterly expert means neutral/no change. experts assessed the post-pandemic recovery phase in the Georgian econ- omy. The majority of experts (60%) implied that the economy will need 12-18 months to reach its pre-pandemic state. They were asked to identify the sectors of economy that are most vulnerable to the spread of the virus. Accommodation and Food Service Activities were emphasized by 93% of experts, and Retail by 67%. 47% of Georgian economists assessed In the third quarter of 2020, Georgia’s the government’s support to businesses PREPARED BY PMC RESEARCH economic situation for the next six as “partially sufficient”, while 20% months was also assessed negatively by assessed the support positively and 33% Georgian economists. While expecta- negatively. Furthermore, the govern- eorgian Economic Climate tions for the next six months have ment’s support to the population (both is a product of PMC enhanced compared with the second hired and self-employed individuals) Research Center. In this quarter of 2020, they have deteriorated was assessed as “partially suffi cient” by bulletin, we discuss Geor- slightly compared with the third quarter 40% of experts. 33% viewed the support gia’s economic climate as of 2019. positively, and 27% negatively. Gassessed by Georgian economists. The In addition, the experts predicted Geor- Based on the fact that government debt bulletin is based on IFO Institute meth- gia’s main economic indicators. Accord- is growing signifi cantly, the economists odology. 50 experts are participating in ing to the results, in the third quarter of were also asked to specify tools to lower this initiative from Georgia. The survey 2020, the expected real GDP growth for said debt. All indicated the need to cut was conducted in July 2020. 2020 is -5%. Other main economic indi- a number of public servants, 47% empha- In the third quarter of 2020, the Geor- cators are forecasted as follows: sized better debt management, while gian economic climate has slightly • The infl ation rate is expected to cutting investment projects and reduc- improved. increase in the next six months, on a ing public wages were chosen by 20% In this period, Georgian economists year-on-year basis; and 33%, respectively. assessed Georgia’s present economic • The Georgian Lari is currently over- 60% of the economists stated that the situation negatively. Moreover, the assess- valued against the US Dollar, Euro and average unemployment rate in 2020 ment of the present economic situation Turkish Lira, and undervalued against would increase to 15-20% (the average in this quarter improved compared to the Russian Ruble. unemployment rate in 2019 was 11.6%). the second quarter of 2020, but worsened • The export volume is expected to In addition, experts were asked to assess compared to the third quarter of 2019. increase in the coming six months; the change in total revenue from tour-

York Towers - Everything to Preserve & Maintain the Environment & the Harmonious Development of Your Family

fully fi nished and delivered many pro- soil, water, and air- everything is aimed BY AMR ALABWAZ, GENERAL jects, such as Dighomi Mall, multifunc- at preserving and maintaining the envi- DIRECTOR OF YORK TOWERS tional innovative space Diplomatic ronment and harmonious development Dighomi, and the Caucasus Tower in of your family. Temka district. The project will be delivered in three nvironmental pollution is one One of its ongoing projects is Lisi View, phases. The fi rst phase will be delivered of the biggest problems in the which is a new opportunity for those by the end of 2020, as we have already world, and in Georgia, it is looking for a home with all the facilities started the major construction work. sadly no different. As such, it in a clean environment and in a great The 2nd phase will be delivered mid- is extremely important to use location with amazing views. 2021, and the full project will be delivered theE services of companies which spare Lisi View is located in the most elite by the beginning of 2022. no effort in caring about ecology while and prestigious neighborhood in Tbilisi, Customer demand is high. We are try- gian people and country from foreign have foreign non-profi t websites, where simultaneously providing maximum just a few minutes from the center. Lisi ing to target the middle class and provide tourists. we publish positive and pleasant news comfort for their customers. View offers a distinctive lifestyle that them with affordable prices. Our plan In 2020, during the coronavirus pan- about the country, to let more people These days, few construction compa- can't be found anywhere else in the city, implements the idea that everyone who demic, we completely avoided closure; know about the good developments in nies care to maintain the natural condi- where you will fi nd an amazing natural can afford to purchase apartments on our crisis management team was work- Georgia and get inspired to start making tions while also offering an international environment, giving the impression that the outskirts of Tbilisi will also be able ing very hard to follow all health and investments, or just to visit and enjoy it. experience, as York Towers does. every part of the complex is an organic to purchase them in our complex and safety instructions given by the Georgian We have yet another eco-friendly activ- One of the main priorities of the York product of the surrounding nature. benefi t from all the facilities which I government and the WHO. ity planned for the future: our team Towers company is to conserve a clean In the Lisi View project, we have imple- have already mentioned. We have achieved remarkable results intends to plant trees in Tbilisi, which environment and fresh air while provid- mented the concept of a wide open space, We offer our customers villas, fl ats, in the fi rst and second quarters by sales is like any city that lacks fresh air now- ing an excellent opportunity to build which creates conditions for good com- private houses, and commercial spaces. volume and by delivering a message to adays. As for the location, let it be a your family's healthy future today. munication between the residents of the We operate in the market, which means the whole world that Georgia is a safe pleasant surprise. York Towers is a leading international complex- there, you will fi nd pure air that we have high-quality products and and green zone. Our existing and new In every activity, on every platform real estate developer with multiple invest- and charming panoramas: a special gift services. customers alike, felt comfortable and around the world, in every branch we ments in Europe and the Middle East, from nature! Most importantly, we offer new loca- safe investing in Georgia. After the cor- are operating, all of our team members and it continues to expand its projects All villas in the Lisi View complex are tions full of facilities and service areas, onavirus effect, we began to promote are ambassadors of Georgia, showing to cover all real estate activities world- built following a single architectural people will live there in maximum com- Georgia as a tourism country and we the best Georgia has to offer. wide. concept with spectacular views of the fort and will have everything they need. spread information about the Georgian Georgia has great laws and regulations, The company has successfully fi nished rich green landscape. All housing units Involvement in CSR projects is yet investment environment. which is what attracted us as investors, many projects in Europe and the Middle are designed with the highest interna- another priority for our company. We Our company often creates promotional and we look forward to them being East and has been operating in the Geor- tional standards: everything from the support economic and touristic devel- videos depicting the unforgettable beauty implemented faster. I recommend Geor- gian market since 2017 too. choice of building materials and con- opment in Georgia and are ready to use and hospitality of Georgia, to attract gia to all investors, wherever they may In Georgia, York Towers has success- struction technology to the state of the our resources to bring love to the Geor- even more visitors to the country. We be in the world. GEORGIA TODAY 8 BUSINESS JULY 31 - AUGUST 6, 2020 Carrefour: The Crisis Management Strategy Amid a Global Pandemic

OVID-19 has signifi cantly refour Georgia — revealed the three other surfaces. Moreover, before admit- impacted economies and central tenets that have helped Carrefour ting personnel to the stores or the Head businesses across the world. to navigate the ups and downs of the Offi ce, Carrefour imposed mandatory While having serious impli- global pandemic; offering some valuable health condition controls to check for cations on public health guidance for businesses contending with coughing, breathing diffi culties, and andC safety, the pandemic has also forced crises. temperature — these preventive meas- businesses to navigate operational chal- ures put in place to stymie the spread of lenges while quickly having to address PRIOR PLANNING AND the virus. the needs of their employees, customers, PREPARATION All Carrefour employees are equipped and suppliers. Georgia is no exception. “While this is an unprecedented situa- with masks and gloves. For additional Over the course of the last few months, tion, the world is no stranger to global safety of employees, special protective the country’s economy has experienced crises,” Orcet reminds us. Having worked barriers were also installed at cash coun- a sharp decline, with its Gross Domestic in retail over the last 27 years, he has ters. Today, all customers are encour- Product (GDP) falling by 16.6 per cent helped steer the business through the aged to wear gloves and keep a distance in April 2020. In spite of this unpredict- spread of the H1N1 virus in 2010, as well of two meters. able and unexpected environment, as the MERS outbreak in 2012. In addition to the swift and stringent organisations — led by people with Accordingly, Carrefour has had in place hygiene standards put in place, Carrefour robust crisis management skills and prior a longstanding crisis management tool- has also worked hard to enhance its experience — were able to maintain a box which comprises a supply chain, eCommerce offering during the pandemic degree of stability. customer relations, and hygiene plan in to ensure customers maintain access to Globally, it is agreed that no one could the case of a global health concern. Orcet essential items. have predicted the scale and scope of explains, being in a retail business that A previous partnership with the deliv- the coronavirus’ impact. And yet, even is primarily concerned with supplying ery company, Glovo, helped to increase amid the chaos, there are companies that fresh food items, it is important to learn the number of customers during this lead us toward green shoots of recovery. from the past and double down on crisis diffi cult time and enabled Carrefour to Watching organisations respond and management efforts. add value to the shopping experience adapt impressively to operate their busi- “In essence, plan for more than you while investing the customers’ experi- nesses sustainably — and in such exact- would expect, because as a business your ence. As it seeks to switch to contactless ing conditions — underscores the impor- greatest responsibility is to your cus- solutions, Carrefour continues to expand tance of crisis management skills; tomer and there is no room for risking its partnership network by collaborating especially in turbulent times. safety,” he says. with Mastercard. Carrefour is one of a handful of prom- The fi rst coronavirus case appeared in “We’ve implemented a joint campaign inent brands that has successfully man- Georgia on 26 February, but Carrefour together regarding a contactless payment aged to contend with the challenges had already been taking steps to imple- method, which is in force until July,” posed by COVID-19. One of the world’s ment elements of their epidemic toolbox, Orcet added. largest hypermarket and supermarket created from the learnings of past expe- brands, Carrefour — operated in Geor- riences. SUPPORTING THE COMMUNITY gia by Majid Al Futtaim since 2012 — has Acting quickly and adapting, together Carrefour proactively supports the com- been a player in the Georgian market The wellbeing and safety of employees munities it serves. Recognising early on since 2018. Since the company’s estab- and customers is the number one prior- that the pandemic was a community con- lishment in the country, Carrefour has ity for the company. As such, Carrefour cern, Carrefour sought to contribute provided Georgians with quality, variety, Georgia had taken proactive steps toward beyond its own business operations in and value; introducing a completely new improving public health as well as imple- order to reduce the spread of the virus and unrivalled shopping experience to menting technological solutions to while safeguarding the health and safety the region. Carrefour has brought to minimise the spread of the virus. of employees and customers. This speaks Christophe Orcet, Country Manager of Carrefour Georgia Georgia an extensive choice of more When it comes to safety, Orcet repeats to the belief that a business can only thrive people in need. Carrefour continues to implement its than 40,000 food and non-food products again and again, there is no time to com- if the people in its surrounding commu- In addition to this campaign, Carrefour corporate social responsibility initiatives characterised by low pricing and high- promise and action must be taken imme- nities work together, Orcet emphasised. is cooperating with the Rehabilitation in order to help ease the pandemic’s quality. diately. A name with great sense of social Center for disabled elderly people and burdens on citizens. With 22 local stores to supply to, and Accordingly, Carrefour increased the responsibility, Carrefour joined the Red is systematically providing the center In doing so, Carrefour aims to under- acting as a catalyst for change within the frequency of cleaning and sanitation Cross and Tbilisi City Hall campaign to with food. Most recently, an important line its commitment to the people and community, Carrefour has proven itself with maximum concentration permitted support Georgia’s elderly and socially memorandum signed with the interna- communities it serves; emphasising that a resilient retail leader amid a global for washing and disinfection detergents. vulnerable members of the community. tional charity organisation, Emmaus, businesses will play an even greater role crisis. In a recent sit-down, Christophe The company systematically began dis- The campaign also allows customers to helped provide clothes that are no longer in supporting communities going for- Orcet — the Country Manager of Car- infecting its trolleys, baskets, and all contribute to helping 10, 000 elderly in use to socially vulnerable families. ward, post-COVID. Construction Company Dagi – A Story that Began 20 Years Ago ogi Gulordava, the founder company was Mama Daviti. Since then, technological developments. That is why of Dagi, talks to us about Dagi has successfully fi nished over 300 Dagi is continuously retraining its employ- the history of the company, projects, among them some of the coun- ees. its successes, and the great try’s most successful projects: Mestia “For example, before the pandemic, we importance of the construc- rehabilitation, Sataplia Cave and Nature were planning an important project, the Gtion sector: Reserve, Hotel Anaklia, The Opera retraining of employees abroad, and 20 years ago, in post-soviet Georgia, Theater of Kutaisi, and the Vani Museum. starting the production of AAC energy likely no-one would have thought it “We see the individual charm and effi cient aerated concrete blocks. Unfor- would take just two decades for the con- beauty of each and every project and we tunately, due to the pandemic, we had struction business to become the main approach them differently. However, we to take a rain check with this project. direction of the country’s economy. consider projects associated with edu- This new technology will see the light However, it was the early 2000s and two cation the most important,” Gulordava in Georgia as soon as the pandemic ends, people with minimum technology with says. “They are not just buildings, they and Dagi’s employees will improve their a small group of co-workers started the are the places where kids are meant to qualifi cations in Germany and Turkey.” constructing company Dagi. grow up, study, develop and start build- The main approach taken by Dagi is “We founded the company because ing a better Georgia. At this stage, Dagi that the construction is not a mere busi- starting a business in the construction is building the V. Komarovi Physics- ness, but the country’s future. Conse- fi eld meant more for us than simply Mathematics School in Batumi, schools quently, the company cares for the futures becoming businessmen – to us, this was in Upper Machkhaani and Upper Sakara, of each employee and their family mem- a way to play a role in the development in Martvili, as well as professional col- bers. In Dagi’s case, the key to success of the country,” Gulordava tells us. leges in Marneuli, Borjomi, and Khashuri. is caring and taking every step to show Today, Dagi, a Limited liability com- These are the projects that are most this care, be it the retraining of employ- pany, has a development strategy that important [to us] because in the build- “This is a step forward, taken for a bet- and innovations are integral parts of the ees, the establishment of innovations in entails construction work that has to do ings constructed by us, a new generation ter Georgia; an idea directed towards construction process. Dagi has a big lev- construction, or the start of projects of with offi ce spaces, living buildings, com- will be building a new Georgia. the development of the country. Dagi erage there: using modern technologies importance for the country. munity parks, automobile infrastructure, “Another emotional project for us is a has been on the market for 20 years now, and materials enables Dagi to offer its “In Dagi we believe that the develop- irrigation engineering and drinking water Trading Center in Rukhi, which is very yet it is still growing, because what moti- customers the best technical decisions. ment of infrastructure is the biggest infrastructure. However, Dagi also works close to occupied territories of the coun- vates it is the desire to have a common “It is impossible to create modern, indicator of the country’s development,” on restoration projects. In 2012, the Com- try. 300 meters from the construction bright future for all. Not only a brighter particular projects without new tech- Gulordava notes. “The more employees pany was assigned the ISO 9001:2008 works, the territory is still Georgian, but future for the country, but a brighter nologies. Especially in our country, where we have, and the more projects we carry certifi cate; in October 2015, the OHSAS it is impossible for us to get there. Real- future for all the employees of the com- the market is, fortunately, competitive out, the more we realize how far Georgia 18001:2007 Certifi cate; and in March 2016 izing this brings a lot of emotions. Vil- pany. Today, around 2000 people are and is developing every day,” Gulordava has come. The choice is easy: you either the ISO 14001:2004 certifi cate. Also, since lagers from villages past Enguri were working in Dagi. Our greatest focus is says. “So we do not have the right to do not act, you stop and get used to the June 18, 2012, it has been registered in employed in this project, which makes to take care after their children and to relax and lose grip. We believe that it is reality, or you build the future every day, the State Procurement Agency’s White us particularly proud. strive for them to live in a better Geor- crucial to adapt to international stand- even if it’s like putting down a single List. “For us, Dagi is more than just con- gia.” ards; it is crucial to share and follow the brick a day. Dagi made that choice 20 The fi rst project of the construction struction business,” Gulordava confesses. Of course, technological development experiences of other countries and their years ago.” GEORGIA TODAY JULY 31 - AUGUST 6, 2020 BUSINESS 9 Tbilisi Hills Golf & Residences Marketing Director On Bringing Golf Culture to Georgia in improving personal records, as well INTERVIEW. TRANSLATED BY WHAT IS NEEDED TO ATTRACT as with those around them. Ultimately, ELENE DZEBISASHVILI SPONSORS IN SPORTS? the most important thing is to best your- It is our values that determine the rela- self. tionship with a future sponsor. If we have a good idea of what the project is consider it an honor to be a mem- DOES THIS MEAN THAT based on and what we can offer to cus- ber of Tbilisi Hill’s team,” says GOLF IS A KEY ELEMENT OF tomers, it will not be diffi cult to attract Raimonds Elbakjans, Marketing TBILISI HILLS'S MARKETING a sponsor. Director of Tbilisi Hills Golf & STRATEGY? ARE THERE ANY I don’t see any point in standard adver- Residences. “When I arrived in OTHER AREAS IN TERMS OF tising today. People want to see open IGeorgia two years ago, I had no plans to MARKETING STRATEGY? relationships between partners; share work here, but when I saw this unique Any marketing strategy should be based the ideology that the company and its project, I could not hide my admiration. on a good quality product only. In the partners offer. The relationship with our I immediately fell in love with the pro- case of Tbilisi Hills, all products, from sponsors is largely based on the social ject. I have been leading Ghetto Games, construction to golf, have a quality mark. aspect. We need to address people’s the largest street sports movement in That's why it is so easy to work with this social issues and improve their quality Europe, for last 12 years, but now golf company, otherwise I wouldn’t be doing of life. and real estate is something new - an this. interesting challenge for me.” None of the strategies make sense if MARKETING WELCOMES the product quality is low. Therefore, as INNOVATIONS. DO YOU HAVE BUILDING PRATICAL GOLF an agency, we always closely monitor ANY INNOVATIVE STRATEGIES FACILITIES IN GEORGIA IS the technical side of the project so that IN STORE THAT YOU WILL NO EASY TASK. WE ASKED the company does not make the mistakes USE IN RELATION TO TBILISI HIM ABOUT THE CHALLENGES that many of its predecessors did. It is HILLS IN THE FUTURE? THE COMPANY FACES AND vital not to miss the value system that The most innovative marketing strategy WHAT PLANS THEY HAVE we so actively position ourselves in. As in Georgia will be "We do not lie". We TO OVERCOME THEM. for golf, it's more a matter of our social are sincere with our customers, and our On one hand there are various sports responsibility. relationship with any visitor to Tbilisi federations; but on the other hand I Golf is the language through which Hills is based solely on mutual trust. We believe that the work starts with the people are able to communicate with want to create a public space where there coaches as well as the parents who decide interesting, elite, well-mannered people is no lying and we consider sports, art to teach their children this sport. We around the world. It is true that even and the necessary conditions for rest need to break the stereotype that golf is golf becomes quite democratic. We are and relaxation as the basis of that public just a game for older people. Golf is not also planning an activity in the city center space. Our slogan is: SWING INTO the case. Many of the expats who come TELL US MORE ABOUT IT. single context. We cannot talk about where anyone can touch this game in YOUR DREAMS, so we believe that to live in Georgia own the art of golf. For me, this award was a big surprise. sports as "sports", more like business: person, and realize that it is not some- where art and sport meet, and where the They want to accustom Georgians to the My colleagues submitted an application we should look at it that way. Amateur thing inaccessible. Ultimately, though, environment in which people are present culture of golf. for me in secret. When I fl ew to Brussels sports are now very trendy. People no for us, golf is a tool to help us create the has a quality mark, space is born for new My 3-year plan is to attract 1000 Geor- for the awards ceremony, I came across longer want to sit on the podiums with community group we want to be in. It dreams and lofty goals. Our strategy and gians to this sport. We have achieved people I’d never met before: offi cials, let beer and hot dogs in their hands. They can be said that we are building a new goal is to build healthy community in great success in street sports in my coun- us say snobs. Then I realized that we have a need to become action heroes city in the city of Tbilisi. Georgia. try. We worked a lot with young people, succeeded at delivering our voice to themselves. They realize that this is pos- which made it easier for us to fi gure out them from the street. It is said that youth sible. You don’t have to break records to how to bring this culture to the younger is our future, but I have always believed get into the pages of a newspaper to be generation. The values that golf experi- that it is our present; and such was my recognized: you can simply open a Face- ence entails are exactly the message we attitude towards them. Being a leader of book page and share your personal JICA Georgia offi ce is want to convey to Georgian society. It the largest youth movement in Europe achievements with the public there. It represents yet another elite language has been a great honor. I was a very is important that each person can be a pleased to announce an through which communication is pos- hyperactive and restless young man, I champion today and share their personal sible worldwide. I’m a former profes- was often not understood at school or records with the world. opening for the position sional basketball player, and therefore, home, so I did my best to make this Earlier, the state determined which I also use this language to communicate experience a useful project for youth. I sports to develop in the country: sport with people. I have a lot to do with Geor- have high hopes that we will be able to was part of a unifi ed policy. Now, there of National Staff gian basketball. Sanikidze and Marko- do the same in Georgia. In partnership is complete freedom of choice. No frames. Job description: shvili are my friends. We used to play with the local government, we envisage Sport has become very democratic. The ** Analyze and Survey of the Country’s current Economy and Politic; against each other. However, from now developing an interesting concept so type that delivers the best product, style ** To collect information on the development as well as policies and projects on, we will play golf and become very that the youth of Georgia can share this and value system is most popular, and of other donors and analyze the issues with regard to assigned programs; active followers of this sport. happiness. will always have a sponsor. The legal ** To coordinate submission of requests from the counterpart Government; side is very strong today, too. Companies ** To supervise the implementation process of assigned programs; to prepare AN ACTIVE LEADER IN THE WHAT ARE MODERN SPORTS are privately owned and are united in implementation and budget plan, make logistic arrangement and make neces- STREET SPORTS MOVEMENT MARKETING TRENDS? WHAT holdings, so it is very important to cre- sary coordination and negotiation with related organizations in Caucasus coun- IN LATVIA AND EUROPE, IS NEEDED TO DEVELOP A ate a healthy platform for their products. tries and Japan, to make necessary translation and interpretation when commu- ELBAKJANS RECEIVED AN SUCCESSFUL MARKETING People who come to Tbilisi Hills are nicating with counterparts, and to monitor the progress of assigned programs; AWARD FROM THE EUROPEAN STRATEGY AND HOW WILL attracted to a healthy lifestyle. They want ** To coordinate Japanese Overseas Cooperation Volunteer’s (JOCV) activity COMMISSION FOR PROMOTING TBILISI HILLS IMPLEMENT IT? to be united around golf and to share in Georgia; STREET SPORTS ACTIVITIES Nowadays, everything, including sports, their lifestyle with others. Age doesn’t ** Other tasks given by Resident Representative; AMONG YOUNG PEOPLE. fashion and music, are considered in a matter. People compete with themselves, Skills and requirements: ** University degree; ** Highly profi cient in spoken and written in English, Japanese and Russian languages. (Regarding English and Japanese profi ciency, certifi cates are neces- ADB to Invest $40 mln to Improve sary); ** Computer literacy (word, excel, power point etc); ** At least fi ve years of work experience in the similar fi eld; Water Supply, Sanitation in Georgia ** Analytical, open-minded, honest character; ** Excellent communication and interpersonal skills; he Asian Development Bank Georgia’s private sector.” resilient, and sustainable Asia and the ** Well-organized; strong sense of responsibility; hard working; (ADB) is contributing Established in 1966, ADB is committed Pacifi c, while sustaining its efforts to ** Willingness to go to the fi eld trips; around $20 million in fur- to achieving a prosperous, inclusive, eradicate extreme poverty. therance of the water sup- Preferable but not mandatory skills: ply system and sanitation ** Familiarity with terms related to fi nance is preferred; Tin Tbilisi and nearby municipalities; also to refi nance the debt of renewable energy Term: and water operations. From October, 2020 till October, 2021 with possible extension ADB will also administer a further (Probation period is 3 months. The employer will be able to terminate the investment of up to $20 million in green contract depending on the performance during the probation period). bonds by Leading Asia's Private Infra- structure Fund (LEAP). Salary: Director of Infrastructure Finance at US$1300~1500/month (actual amount will be adjusted based on the past work ADB’s Private Sector Operations Depart- experience and will be paid in GEL) ment, Shantanu Chakraborty, said: “ADB’s assistance will help ensure that com- Working hours: munities in and around Tbilisi are sup- Monday – Friday, 9:30 – 18:00 (with lunch break from 13:00 – 14:00) plied with water 24 hours per day, and that water supply and sanitation systems Next step: in those urban centers function properly. Only shortlisted persons will be notifi ed by email and invited to the interview. ADB’s anchor investment will demon- Interested candidates are required to send the CV (only in English) with two strate to potential investors the compel- contact information from previous workplaces/schools and copies of certifi cates ling investment opportunities in fi nanc- to: [email protected] and [email protected]; no later than 14 August, ing water and clean energy initiatives in 2020. GEORGIA TODAY 10 BUSINESS JULY 31 - AUGUST 6, 2020 The Role of Service Design in Tourism regular service provision. Due to digi- BY NATIA GOGOTIDZE talization, customers now have choices from all over the world, so the standard offerings are no longer enough. ue to COVID-19, our travel Tourism is a human-centered activity bucket lists have been tem- which should be built around empathy, porarily put on hold, as we response to customer expectations, pro- are no longer able to travel fessionalism, creativity and trust. These around the world so easily days, consumers undoubtedly desire Dand enjoy all those amazing cultural experiences, and more and more busi- experiences. This situation has of course nesses are responding by explicitly been refl ected in many economies, espe- designing and promoting them. Because cially Georgia’s, where tourism was of that, the people involved in the tour- before this a rapidly expanding industry ism industry should think about creating with a wide range of economic benefi ts. memorable experiences that last a life- If we take a look at the statistics, tour- time. ism revenues to GDP were 19.9% in 2018, In order to understand more about and 4.4% in 2009. Service Design and connecting it with Tourism is actively supported by the the tourism industry, let’s take a look at Image source: medium.com Georgian government, which is in the the main philosophy on which Service vices are not static: they are sequential. native sequences that may happen. changed the lobby experience and cre- midst of a 10-year development plan Design stands. With the help of Service Design, we can ated a more immersive and personal (until 2025) with the goals of raising create a Customer Journey Map and plan EXAMPLES OF SERVICE DESIGN check in, where both parties could see awareness about Georgia on the inter- 5 CORE PRINCIPLES OF "before the trip experience", “during the IN THE TOURISM INDUSTRY the check-in screen and verify the infor- national market and supporting sustain- SERVICE DESIGN trip experience” and "after the trip expe- Airports and Airlines: Many international mation easily and transparently. Moreo- able tourism development. The number Service Design is user-centered: Services rience." With this in mind, we can make organizations have transformed their ver, Hyatt now has nine prototype hotels of international non-resident visitors are created for customers; therefore, sure that our customer has full satisfac- services through Service Design. For globally with the sole purpose of trying was 7.8% higher in 2019 compared to service providers should keep custom- tion in their every interaction with our example, Heathrow Airport used it to out new ideas with customers, getting 2018. However, the visitor dynamics are ers at the heart of the process. They service, for example, that our company provide information in a more effi cient feedback, and improving on ideas until not evenly distributed throughout the should gather not only simple statistical is easily searchable, the booking process and pleasant way; Virgin Atlantic Airlines they are good enough to become a stand- year, with the summer season still the data (gender, ethnicity, age, etc.), but is fl awless, offerings are described in redesigned the whole customer process ard for their all their hotels. peak and other seasons tending to lack also insights about wants and needs detail, pictures are relevant and trustwor- in order to match pre-, post- fl ight and Online marketplace: Airbnb is another the needed tourist numbers. For instance, (what they dream of, where they work, thy, and the whole stay is kept in mind. in-fl ight experience via customer journey good example. In 2009, Airbnb almost in August, Georgia usually sees more what their friends say and do, how they It is crucial to make services tangible maps and other tools. According to Vir- crashed, and was on the verge of bank- than double the number of tourists as spend their time, which social media and memorable for customers. Physical gin, the new design resulted in a 75% ruptcy. Then the founders of the com- compared to January. As such, we need they use, how they communicate, etc.). evidence enhances customer experience, decrease in check-in times and a 30% pany found out that the problem was the a new approach to develop Georgia into We should take to heart all such details triggers positive emotions, and extends increase in the Customer Service Index. low-quality pictures that were being a new, cultural tourism destination: using so as to be able to learn and design tour- the post-service experience. In this case, Visitors Centers and Direct Marketing posted by the hosts. They rented a cam- Service Design. ism services for them. we can make special souvenirs, send a Organizations: In Saint Paul, Minnesota, era, visited hosts and enhanced the qual- There is no single interpretation of Ser- Service Design is co-creative, which thank you note, suggest special offers, the Visitor Center was losing relevance ity of the pictures (putting themselves vice Design. It is a human centered, crea- means that besides users and customers, and so on. These kinds of activities because of the internet evolution. Through in the shoes of the customer) and within tive problem-solving methodology. Service other stakeholders should also be involved increase customer loyalty and make them the Service Design process, they revamped a week, Airbnb’s revenue started to Design is all about understanding the user in the design process, including back more likely and eager to recommend it the ‘Visitor Center Experience’. Based on increase and today it is one of the most and coming up with various, creative alter- offi ce employees, managers and non- to others. customer needs, they discovered that successful and innovative companies. natives to solve their problems. human interfaces. Often, there are a lot Last but not least, all of these processes mobile visitor centers would be more To sum up, Service Design is an inter- of people involved in providing a service, are holistic and interconnected: They effective, and they say it has been a huge disciplinary approach for improving and HOW CAN WE UTILIZE thus we should listen to everyone, from all thrive for one goal. Service designers success and people are actively using it. innovating customer services specifi cally. SERVICE DESIGN IN THE the chef at the restaurant and the security should look at the bigger picture, keep- Hotels: Using this approach, hotels Considering that tourism is a service, TOURISM INDUSTRY? guards at the hotel to the neighbor that ing in mind the whole environment a around the world have designed new we can connect these two disciplines Customers change over time, seeking lives next to the guest house you own. service takes place in; consider every experiences. For instance, in one hotel, and constantly create behind-the-rope out meaningful experiences beyond the It is important to remember that ser- single aspect of a service and the alter- after observing customers’ behavior, they experiences. GEORGIA TODAY JULY 31 - AUGUST 6, 2020 SOCIETY 11 The Wilds of Tusheti – A Week with the Shepherds

and mountain tops throughout Tusheti. Just up the path, past the menacing BY AMY JONES From June until October, they host the growls from Jaba and Marin, the huge shepherds and their fl ocks. I was lucky shepherd dogs, there is a shelter made to spend a few days with three of them. from wood and tarpaulin where we sleep n Europe, there is nowhere wilder “To sinful wanderers: those who die in heavy sacks made from wool and or more remote than Tusheti. with no one to remember them by,” Eliz- heavy-duty canvas. Mountain pastures are carpeted bar, one of the shepherds, raises his glass Each morning, as the sun paints the with the fi erce colors of rare fl ow- of chacha in his leathered hand. mountains golden, Oto, Elizbar, and Soso ers, bears and mountain goats “Gaumarjos,” we reply, clinking glasses. milk their sheep: all 1,300 of them. Milk- Iroam the forested slopes, and eagles This is the seventh toast already, each ing is done twice per day, every day. Once circle above the peaks. Occasionally, you drunk with a full glass. in the morning and once in the afternoon. come across an ancient village built from On the table in front of us, there’s a Then, there is the cheese to make. All gray stone and slate. Medieval watch- bowl of pale yellow bread, fl our and three men have a youthful air despite towers rise from the hillsides, as they water kneaded into a donut-shaped dough their weathered skin, aged from a life have done for many centuries, protect- and boiled in a large black pot above the spent outdoors and hard work. A smile ing the locals from invasion. fi re. Soso offers me the plates of hard, and a joke is never far away. This mystical land in the north-east of salty sheep’s cheese and fresh cottage Time slows away from internet con- Georgia, just across the mountains from cheese. Refusal is not an option. nection and clocks. Two phones hang Dagestan and Chechnya, is still alive with Elizbar and Oto, two brothers, and Soso from string from the hut – the shepherd’s tradition today. The Tush locals return have been shepherds for almost thirty only connection with the outside world to their villages in early summer, when years. Each year, they bring their fl ock for fi ve months. As we say our goodbyes, the harsh winter conditions subside. Many of 1,300 sheep to this place on the green Oto writes down his phone number and make the diffi cult journey from Alvani in valley slopes. The hut is beautiful, built name on Facebook. Kakheti to Tusheti on foot, driving their from blackened stone. Inside, huge sacks “I will accept in October,” he says with sheep and livestock up the Albano Pass. of cheese are stored ready to be sold a grin. He guides us along a sheep’s trail These are the shepherds. once back in the lowlands, and a fi re which drops into the valley as we bid Shepherds huts are perched on hillsides roars in the corner. the three men goodbye. Walking in Circles: Days 9-11 glimpses and threatening more rain. We ple of days’ stay with his wife, son, Liparteliani and his family and continued were as ready as we could be for this, daughter-in-law and two grandchildren, on one more changed route. Instead of but a real downpour would certainly with all of whom we hit it off splendidly. walking down to Tsana and then north- make things much harder. The museum was opened early for us west through Samegrelo’s villages to The ongoing road work was very grat- to peruse. Here are stored a great num- Jvari, we would avoid the coming two- ifying to see; it has been a very long time ber of local treasures from up to millen- day downpour by taking three minivan- coming. In the end, I found myself over- nia back in time, along with details of buses to Tsqaltubo, Kutaisi and then nighting in an empty shipping container- local heroes from more modern times Zugdidi, where we would stay with more size box belonging to Award Construc- and paintings of important events in friends for two more days, before head- tion, while Josh hammocked outside it. Svan history, such as the visit of Queen ing up to Jvari and, in several more days, We did manage to get a fi re going that Tamar in the Middle Ages. What the home. This cut about 100 km off the walk, evening to cook on, and I put a few bits museum lacks greatly, though, is proper and a few days, but again made much of wood inside to keep dry for the morn- conditions for all these things: sealed more sense after looking at forecasts, ing, but we decided just to press on cabinets, controlled temperatures and which turned out to be spot-on. instead. Lentekhi was still a couple of humidity, labels and explanations in days’ walk away. English as well as the current Georgian. Tony Hanmer has lived in Georgia since My backpack was now at about an opti- I think of how Mestia’s museum has been 1999, in Svaneti since 2007, and been a mum weight for me, and I remember this brought up to world standards, and hope weekly writer and photographer for GT since time as a day or two of the easiest walk- much the same for this place, with its early 2011. He runs the “Svaneti Renais- ing so far on the trip. I was fi nding new hundreds of unique, important items. Of sance” Facebook group, now with nearly strength instead of getting broken down course, it’s all down to money and how 2000 members, at www.facebook.com/ by all the extra exercise, hardly noticing loudly the wheel is squeaking: enough groups/SvanetiRenaissance/ the weight on my back because my hips to get the needed attention and funding He and his wife also run their own guest house were carrying almost all of it. I felt like I for changes? Soon, I hope. in Etseri: could continue all day, and indeed one of We said our fi nal goodbyes to Nugzar www.facebook.com/hanmer.house.svaneti these days was our longest recorded walk, about 31 km or nearly 20 miles. In the end, though, we decided to accept the offer of a dump-truck to get us far- ther along, to Lentekhi itself, looking at worsening expected weather. Josh rode in the back, crossing another form of transport off his list, while I joined the driver in the cab and chatted. Our walk was certainly turning into a bit of a com- promise, but each non-foot part had its reasons, and we had nothing to prove to through October, roughly, for some dec- ourselves or anyone else about getting BLOG BY TONY HANMER ades now, otherwise closed by snow. thoroughly soaked just for the sake of This might change once it is paved, but “being authentic”. We got off in Lentekhi, we’ll have to wait and see whether it is capital town of Lower Svaneti, found a s Josh and I continued our doable or not. I had only been on it a campsite for the night, indulged in some trek south and down few times in my two decades in Georgia, k’ubdari (Svan meat pie), and turned in. through Lower Svaneti, new and never on foot until now. The next morning, I phoned an old landscapes opened up The weather was much cloudier, though, acquaintance whom I’d last seen here before us, ones much less obscuring the views of Shkhara, Geor- about 15 years ago, on my fi rst trip though Aseen by tourists, myself included. This gia’s highest mountain, and others which this province towards Ushguli. He most road has been open only from May should be dazzling us, offering only gladly came and took us home for a cou-

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