sustainability Article Rural Tourism in Georgia in Transition: Challenges for Regional Sustainability Lela Khartishvili 1,2,*, Andreas Muhar 1 , Thomas Dax 3 and Ioseb Khelashvili 2 1 Institute of Landscape Development, Recreation and Conservation Planning; BOKU University of Natural Resources and Life Sciences Vienna. Peter Jordan-Str. 82, 1190 Wien, Austria; [email protected] 2 Tourism Hospitality Management Department, Faculty of Economics and Business Ivane Javakhishvili Tbilisi State University. University Str., 0186 Tbilisi, Georgia; [email protected] 3 Federal Institute for Less-Favoured and Mountainous Areas, Vienna, Austria; Marxergasse 2, 1030 Wien, Austria; [email protected] * Correspondence: [email protected]; Tel.: +43-677-627-07781; Fax: +995-599-99-2161 Received: 30 November 2018; Accepted: 9 January 2019; Published: 15 January 2019 Abstract: Tourism in rural regions of Georgia has a long tradition; however, many structures had been developed during Soviet times under the framework of a centrally planned economy and forced collectivism. Today, Rural Tourism is widely discussed by the national government and international cooperation partners as a means for regional development and as an alternative source of employment in agricultural areas and mountain regions. The purpose of this study is to develop suggestions for the institutionalization of Rural Tourism in the country and to propose relevant actions. Research methods comprised a document analysis, qualitative interviews with various stakeholders, and focus group discussions. We analyzed recent tendencies and challenges of rural tourism development in Georgia with a focus on the concept of community-based tourism and integrated rural development. We also review the challenges of the current structure of tourism marketing on the national level with regard to Rural Tourism products. The key findings of the research include recommendations to create a central leading structure for rural tourism at the national level, which will work on strategic issues and general norms of Rural Tourism. At the same time, we propose the development of destination management organizations, which will integrate general provisions in regional legislation and marketing in close cooperation with local stakeholders. Keywords: rural tourism; national tourism associations; regional partnership; community-based tourism 1. Introduction Across the developed world, Rural Tourism has been recognized as a promising complement to a declining agricultural sector that is increasingly unable to sustain income to people living in rural areas [1]. Rural Tourism is meant to stimulate nontraditional development and entrepreneurship opportunities, as tourism generates jobs, supports retail growth [2], adds vitality to a traditionally poor economy, and transfers capital, income, and employment from industrial, urban, and developed areas to nonindustrial regions [3]. Therefore, Rural Tourism has become a part of strategies and policy documents for rural development at the national and international level. It has become widespread since the 1970s in developed countries and since the 1990s in developing countries. Rural Tourism has been promoted as an opposite strategy to package-type mass tourism, encouraging independent, non-organized visits to destination areas [4], and has been closely linked to “Sustainable Tourism” approaches. The concept of Rural Tourism has also been recognized by the Organization for Economic Co-operation and Development (OECD) as a potential tool for the conservation of nature and cultural Sustainability 2019, 11, 410; doi:10.3390/su11020410 www.mdpi.com/journal/sustainability Sustainability 2019, 11, 410 2 of 20 Sustainability 2019, 11, x FOR PEER REVIEW 2 of 20 landscapes and sustainable regional development [3]. Given its direct and multiplying effects on other sectorseffects and on industries, other sectors developing and industries, countries developing see it as an co acceleratoruntries see to it manyas an ofaccelerator the UN Sustainable to many of the DevelopmentUN Sustainable Goals (SDGs).Development Goals (SDGs). 1.1. Purpose1.1. Purpose of the of Study the Study DespiteDespite the long the long history history of the of developmentthe development of Rural of Rural Tourism Tourism and relatedand related institutions institutions in Europe, in Europe, this formthis form of tourism of tourism has has appeared appeared only only recently recently in post-Sovietin post-Soviet countries, countries, most most of of which which still still face face the the challengeschallenges ofof decentralizationdecentralization processes processes and and searching searching for for sustainable sustainable concepts concepts for regionalfor regional developmentdevelopment and localand local partnership. partnership. Georgia Georgia carries carries significant significant natural natural recreational recreational resources resources along along withwith an indigenous an indigenous cultural cultural heritage heritage that that give give it a solidit a solid ground ground to consider to consider Rural Rural Tourism Tourism as an as an importantimportant activity activity to address to address local local problems problems and toand promote to promote sustainable sustainable development. development. The purposeThe purpose of this of study this is study to provide is to a betterprovide understanding a better understanding of recent trends of in recent the development trends in the of Ruraldevelopment Tourism inof GeorgiaRural Tourism as an alternative in Georgia form as an of altern tourism,ative andform to of identify tourism, strategic and to identify actions thatstrategic needactions to be taken that toneed institutionalize to be taken to and institutionalize promote this field.and promote The paper this highlights field. The recent paper tendencies highlights and recent recognitiontendencies of Rural and recognition Tourism in thisof Rural country, Tourism where, in overthis country, the decades where, of the over Soviet the decades era, tourism of the had Soviet beenera, managed tourism in had a centralized been managed way, in mostly a centralized based on way, spa mo resorts.stly based Yet, in on recent spa resorts. years, Yet, Rural in Tourismrecent years, has becomeRural Tourism part of development has become approaches,part of development policy papers, approaches, and programs policy andpapers, has alsoand been programs promoted and has by internationalalso been promoted agreements by andinternational donor organizations. agreements Compared and donor to organizations. other countries Compared in Central andto other Easterncountries Europe, in this Central occurred and Eastern relatively Europe, late in Georgiathis occurred due to relatively the political late situation in Georgia as welldue to as the latepolitical developmentsituation ofas thewell tourism as the late infrastructure development in general.of the tourism infrastructure in general. 1.2. Key1.2. FactsKey Facts about about Georgia Georgia GeorgiaGeorgia is a is small a small mountainous mountainous country country in thein the South South Caucasus Caucasus region region with with a a population population of of 3.7 3.7 million.million. About About 54% 54% of of the the territory territory lies lies at at elevations elevations higher higher than than 1000 1000 mm aboveabove seasea levellevel (a.s.l.)(a.s.l.)[5], [5], and and 42%42% ofof thethe populationpopulation lives lives in in mountainous mountainous areas, areas, where where the the village village of Ushguli,of Ushguli, located located at 2200 at 2200 m m a.s.l.,a.s.l., is one is ofone the of highest the highest permanent permanent settlements settlements in Europe in Europe (see Figure(see Figure1). 1). Figure 1. TheFigure village 1. ofThe Ushguli. village Upper of Ushguli. Svaneti Upper region. Svaneti (photo: region. Georgian (photo: National Georgian Tourism National Administration). Tourism Administration). Georgia is a traditional agricultural country. During Soviet times, it was a main supplier of citrus fruits, wine,Georgia and tea is a for traditional the Soviet agricultural Union, and country. exports During exceeded Soviet imports times, by it 70%was [a6 main]. Production supplier wasof citrus organizedfruits, basedwine, onand large tea for collective the Soviet units Union, (Kolkhoz), and expo whererts theexceeded land and imports the produce by 70% belonged[6]. Production to the was stateorganized [7]. Since based 1990, afteron large a privatization collective units reform, (Kolkhoz), people where became the land land owners,and the produce and the agriculturebelonged to the sectorstate is now [7]. organizedSince 1990, based after ona privatization family farms reform, and their people fragmented became land land plots owners, [8–15 and]. Recent the agriculture land sector is now organized based on family farms and their fragmented land plots [8–15] .Recent land registration reforms, introduced by the Ministry of Justice of Georgia in 2016, simplified registration Sustainability 2019, 11, 410 3 of 20 Sustainability 2019, 11, x FOR PEER REVIEW 3 of 20 registrationprocedures reforms, for private introduced owners by theto encourage Ministry of farmers Justice ofto Georgiaobtain ownership in 2016, simplified documents registration and register procedurestheir land for privatewithout owners any barriers. to encourage farmers to obtain ownership documents and register their land withoutNearly any half barriers. of