Issue no: 1170/190 • JULY 23 - 25, 2019 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Weekly Entrepreneurial News @entrepreneur.ge NEWS PAGE 2 EU, Georgian Gov’t Sign EUR 28 mln SAFE Program NEWS PAGE 2 Russian FOCUS Cancels Test Match with ON BEATING Georgia NEWS PAGE 3 THE BAN June 2019: Average Hotel Though Russian tourist numbers are down, Georgia's tourism Prices & Hotel Price Index in sector continues to grow as the market diversifi es PAGE 2 Georgia BUSINESS PAGE 4 Image source: GNTA Tomsguide Publishing: HUAWEI P30 Pro Camera Batumi Boulevard Development Plan is Revolutionary BY SAMANTHA GUTHRIE BUSINESS PAGE 6 Top 5 Protected Areas his week, Batumi Boulevard announced plans to open a tender for a company to provide functional zoning and landscaping on and around the boulevard. The boulevard is being updated in Georgia Visited Most in accordance with city development plans, which include preserving the historic parts of the boulevard and expanding Frequently Tits footprint, with particular emphasis on preserving its character and nearby 10 SOCIETY PAGE historic buildings. The Batumi Boulevard was born in 1881 as a seaside park built by a Ger- man landscape artist, commissioned by the governor of Batumi. Today’s Needing Russia, boulevard, divided into old and new parts, is approximately 7 kilometers long. Hating Russia The company selected by the Batumi Boulevard will have one year to complete the work, at a cost of 435,000 GEL ($151,300). The three-part pro- POLITICS PAGE 11

Image source: In Your Pocket Prepared for Georgia Today Business by ject will include research, the creation of a development plan, and the Markets Asof19ͲJulͲ2019 production of guidelines for the administrators of the Batumi Boulevard STOCKS Price w/w m/m BONDS Price w/w m/m to follow. The project aims to produce a development plan that will pre- BankofGeorgia(BGEOLN) GBP16.13 +0,8% Ͳ2,8% GEOROG04/21 104.85(YTM3.86%) +0,1% +0,1% GeorgiaCapital(CGEOLN) GBP10.06 Ͳ1,4% Ͳ6,7% GEORG04/21 105.77(YTM3.39%) +0,0% Ͳ0,4% serve the landscape and architectural beauty of the old Boulevard, while GHG(GHGLN) GBP2.35 +2,9% Ͳ6,9% GRAIL07/22 109.78(YTM4.21%) +0,0% +0,4% establishing new recreation areas that can be enjoyed by both locals and TBCBankGroup(TBCGLN) GBP15.28 Ͳ1,7% Ͳ7,4% GEBGG07/23 101.30(YTM5.63%) +0,2% Ͳ0,7% tourists, and people of all ages and abilities. The deadline to submit a bid COMMODITIES Price w/w m/m CURRENCIES Price w/w m/m CrudeOil,Brent(US$/bbl) 62,47 Ͳ6,4% +1,1% GEL/USD 2,8761 +1,2% +3,1% is August 19. GoldSpot(US$/OZ) 1425,37 +0,7% +4,8% GEL/EUR 3,2266 +0,8% +3,0% The announcement is part of a series of efforts over the past few years GEL/GBP 3,5969 +0,7% +2,0% INDICES Price w/w m/m GEL/CHF 2,9328 +1,8% +4,8% to update and improve the tourist infrastructure of Batumi. FTSE100 7508,70 +0,0% +1,4% GEL/RUB 0,0457 +1,3% +4,3% FTSE250 19621,66 +0,4% +2,0% GEL/TRY 0,5089 +2,5% +5,6% In June 2016, then-Chairman of the Government of the Autonomous DAX 12260,07 Ͳ0,5% Ͳ0,4% GEL/AZN 1,6965 +1,3% +3,2% Republic of Adjara, Archil Khabadze, announced plans to invest $40 mil- DOWJONES 27154,20 Ͳ0,7% +2,5% GEL/AMD 0,0060 Ͳ +3,4% NASDAQ 8146,49 Ͳ1,2% +2,0% GEL/UAH 0,1118 +1,5% +5,6% lion in the development and reconstruction of the New Boulevard of MSCIEMEE 177,99 Ͳ1,5% Ͳ0,5% EUR/USD 0,8912 +0,4% +0,0% Batumi. The original plan allocated 50% of the territory to tourist-recre- MSCIEM 1057,49 +0,6% +1,9% GBP/USD 0,7998 +0,6% +1,1% SP500 2976,61 Ͳ1,2% +1,7% CHF/USD 0,9819 Ͳ0,2% Ͳ1,2% ation zones, and included the construction of hotels and other tourist- MSCIFM 2842,43 Ͳ0,4% +3,6% RUB/USD 63,0267 +0,1% Ͳ1,1% focused facilities. GTIndex(GEL) 1582,68 ͲͲTRY/USD 5,6591 Ͳ1,1% Ͳ2,3% Continued on page 3 GTIndex(USD) 1208,13 ͲͲAZN/USD 1,6979 Ͳ0,1% Ͳ0,1% GEORGIA TODAY 2 NEWS JULY 23 - 25, 2019 Tourism in Georgia Continues to Grow After Flight Ban @entrepreneur.ge Gamarjoba! I’m the Editor-in-Chief of the BY AMY JONES Georgian edition of Entrepreneur magazine and I’m here to share the top weekly Entrepreneurial news with you: ata from the Ministry of National Delicacy will be of interest to those who think Internal Affairs has a good daily diet and saving time are equally important. revealed positive growth Equipped with the latest technologies, the factory is in Georgia’s tourism indus- located in Dedoplistskharo and offers premium as well try, despite the Russian as budget ready-made food for clientele, who can Dfl ight embargo which began on July 8. choose from 10 different dishes. Made of Georgian-only TBC Bank released an analysis of the ingredients, the superiority of the brand comes in the data in Caucasus Business Week which simple and practical use of products and the fact they shows that although the number of Rus- are 100% natural and chemical-free, feature in sians visiting Georgia has fallen, tourism comfortable packaging and last up to two years. grew by 3.2% year-on-year. Currently available only in Tbilisi, Batumi and Rustavi, In the fi rst week of July in 2018, 52,144 expansion is planned for the near future. Russians visited Georgia, compared to 50,030 in the same time period in 2019. Chef Saradjeff, a new restaurant, was The second week of the fl ight ban launched by Nikoloz Sarajev, representative showed numbers dropping from 52,720 of the 6th generation of the renowned Russian visitors in 2018 to 41,423 in 2019, Sarajishvili family. He decided to use his a year-on-year decrease of 21.4%. In addi- family’s house as the venue for the tion, Russian airport traffi c fell by 78.6% restaurant, keeping the original appearance. with Batumi and Tbilisi airport losing The restaurant features a small wine cellar 88.1% and 75.2% of their Russian custom- which stocks nearly 30 wines from local ers, respectively. Image source - Emerging Europe entrepreneurs. The founder of the restaurant The number of Russian travelers arriv- imposed a ban on direct fl ights between ing campaigns targeting both Russia and is also the chef and recently introduced an ing in Georgia via the Kazbegi land bor- Russia and Georgia following protests other countries in an attempt to lessen innovative product to Georgia: additive-free der fell from 26,001 in 2018 to 23,544 in that erupted in Tbilisi on June 20. The the effects of the fl ight ban. In addition, dough. His brand shop has already become 2019. However, those traveling via alter- protests, often considered to be anti- initiatives such as the social campaign popular and a second is to be launched in native forms of land transport rose by Russian, began after a Russian MP spoke #spendyoursummeringeorgia are encour- the new restaurant. 6% from 13,186 to 13,981. from the Georgian Parliament Speaker’s aging tourists from around the world to The Ministry of Internal Affairs’ data chair during a session of the International visit. Canning company Kula is meeting the summer nonetheless reveals that a signifi cant num- Assembly on Orthodoxy in Tbilisi. Tourism is an important industry for season with a brand-new factory which, Vano ber of Russians are fi nding alternative fl ight Protestors called for the resignation of the Georgian economy. Last year, 8.7 Goglidze states, is to be focused on the routes to fl y to Georgia. 2,898 Russians the Parliament Speaker and the Minister million international tourists visited the production of bio products. Test batches will be arrived via plane in the second week of July, of Internal Affairs and the end of Rus- country, bringing $2.6 billion in revenue sent to Germany for the relevant certifi cation, possibly fl ying via Armenia or Ukraine. sian occupation in Georgia’s breakaway in the fi rst three quarters of 2018. which will take around a year, though Kula plans Although the number of Russian tour- regions of South Ossetia (Tskhinvali) 1,404,757 Russian visitors arrived in to bring in the materials necessary for the juices ists visiting Georgia dropped by 21% in and Abkhazia. Georgia in 2018, suggesting that the fl ight from this summer. The company has three the second week of July this year com- The fl ight ban was internationally ban could still have a signifi cant impact factories- the others being for juice and tinned pared to 2018, the number of visitors to criticized. Donald Tusk, the head of the on the Georgian economy. Georgia’s meat, all located in the region of Gori. Georgia still showed positive growth of European Commission, called the fl ight National Tourism Administration Head Follow the Entrepreneur Georgia Instagram page to get the latest updates from 3.2% year-on-year as the tourism market embargo “disproportionate, unfair and Mariam Kvrivishvili said that the indus- Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on diversifi es. unjustifi ed.” try could lose one million tourists due [email protected] Russian President Vladimir Putin The government has launched market- to the ban. GEORGIA TODAY JULY 23 - 25, 2019 NEWS 3 Russian Rugby Union Cancels Test Match with Georgia

Image source: that go beyond cultural, geographical, political and BY THEA MORRISON religious differences.” President Gocha Svanidze replied to the decision of the Russian Rugby Union, he Russian Rugby Federation pub- saying the safety of all visitors is guaranteed by the lished a statement saying that the Government of Georgia, and is also supported by Russian national team will not take the Georgian Rugby Union. part in TBC Rugby Series test match Svanidze says Georgia has to accept Russia’s deci- (RWC warm-up) against the Georgian sion, “motivated by the current situation in Tbilisi Tnational team, nick-named the Lelos, which was and the risk of provocations.” scheduled for August 27 in Tbilisi. “Georgia has hosted such games in the past, hosts The Russians, who will open World Cup 2019 them now and will host more in future, always in with their match against host country Japan, say a safe, fair and positive atmosphere,” he stressed. they have pulled out of the friendly match due to He added that those who already purchased tick- recent developments in Georgia, referring to anti- ets for the Georgia vs Russia test-match can either Russian and anti-occupation rallies launched on attend the replacement match or get a refund. June 20. With Russia out, the Six Nations B champions of In a statement issued on their website, the Rus- Georgia are searching for a replacement World sian Rugby Federation “sincerely apologizes” to Cup warm-up fi xture. the fans of both teams. They point out that they Rugby is one of the most popular sports in Geor- have watched with “deep concern” recent events gia. The national team qualifi ed for the Rugby in Georgia and, in particular, in Tbilisi. World Cup four times, fi rst in 2003, playing against “Unfortunately, the actions of radical-minded rugby powers such as England and South Africa. individuals on the territory of Georgia lead to The Lelos recorded their fi rst ever World Cup win instances of disturbing public order and may pose in the 2007 Rugby World Cup, where they beat a threat to the lives and health of people in this Namibia 30–0. Since 2013, Georgia has hosted the country,” the statement reads, adding that “due to World Rugby Tbilisi Cup. these circumstances, the Rugby Federation of Rus- Georgia is currently considered a second tier sia considers it impossible to hold a match between rugby union nation and is one of the world's fast- the national teams.” est growing rugby nations. The Lelos participate The Russian Rugby Federation “deeply appreci- in the Championship, and won the ates” the partnership established with the Georgian tournament in 2001, 2008, 2009, 2011, 2012, 2013, Rugby Union. However, the statement says they 2014, 2015, 2016 and 2018. want to “recall that one of the fundamental prin- As of March 2019, Georgia has won 139 of their 222 ciples of the game is solidarity and mutual respect representative matches, a winning record of 62.61%. Batumi Boulevard Development Plan Continued from page 1 opment plan. The most recent Batumi Development Strategy, 2018-2021 was approved by the Batumi 32,000 square meters of the New Boulevard of City Assembly in April of last year. “For the fi rst Batumi was previously been put up for auction time in the history of the municipality, we managed with a starting price of $2.3 million. Orbi Group to develop a full 2018-2021 strategy for Batumi Millennium Construction Company bought it for Municipality. This is a 240-page document, a very $4.3 million. More than $520 million was invested detailed book, for each service, in which all the in the New Boulevard’s reconstruction in 2016. measures necessary to achieve the goals set for the In August 2018, the Municipal Development Fund next four years, all the methods, timelines, budget, of the Ministry of Regional Development and Infra- etc. are broken down into detail,” said Batumi Mayor structure, supported by the Asian Development Lasha Komakhidze. Bank (ADB), announced plans to commit $21 mil- In the nearby town of Kobuleti, earlier this month lion to protect beaches and refurbish pedestrian renovations were completed on a two-kilometer bridges in the city. 12 pedestrian bridges will be stretch of coastline. The Municipal Development constructed, and the damaged sections of the boule- Fund of Georgia headed the renovation works, vard will be refurbished. The works are scheduled which cost GEL 9 million ($3.13 mln). The World to be completed this year. In 2015, a similar project Bank funded GEL 2 million ($70,000) of the total amounting to $20 million was also supported by cost, with the state budget covering the rest. The the ADB. rehabilitation works in Kobuleti began in 2017, but Among all the investment and ad-hoc projects, were delayed. The contract with the original con- this week’s announcement marks the beginning of struction company was cancelled after public out- a new phase of development for the Batumi Boule- rage at the delays, and, ultimately, the State Con- vard, which will be led and framed in by a devel- struction Company completed the project. GEORGIA TODAY 4 BUSINESS JULY 23 - 25, 2019

June 2019: Average Hotel Prices & Hotel Price Index in Georgia During June 2019, up to 10000 accom- modations were available on booking. com website in Georgia. The prices of the majority of registered accommoda- tion ranged between 50-150 GEL per night (57.5%), while only 4.1% of accom- modation prices were above 400 GEL. Among the accommodation registered on booking. com in Georgia, the major- ity were in Tbilisi (38.5%) and Batumi (29.1%). These were followed by Kobu- leti (5.1%), Kutaisi (4.8%), Borjomi (2.5%), Bakuriani (2.4%) and Mestia (2.1%). According to the property type, the Table 1: Percentage change of prices in June 2019 over May 2019 most registered accommodation in Geor- Graph 1: In the graph, average prices for standard double rooms in 3 and 4-star and over June 2018 hotels and guesthouses are given by region. 5-star hotel prices are provided above gia on booking.com was apartments 5* hotels decreasing by 7.3%, while the proportion who stayed in Georgia for 24 (49.1%), followed by guesthouses (21.2%) n Georgia, the average cost of a index3 increased by 1.5% compared to prices of guesthouses increased by hours or more (classifi ed as tourists) and hotels (17.6%). room1 in a 3-star hotel was 137 GEL May 2019. The 3-star, 4-star and 5-star 9.9%. increased by 18%. Among the hotels in Georgia registered per night in June 2019. While the hotel price index increased by 3.6%, In June 2019, compared to June 2018, on booking.com, more than half were average cost of a room in a 4-star while for guesthouses, the price index the number of international travelers’ ACCOMMODATION MARKET unrated (56.7%), while 23.5% of hotels hotel in Georgia was 232 GEL per decreased by 0.1%. trips in Georgia increased by 19.9%, and IN GEORGIA ACCORDING TO were 3-star hotels, 15.5% - 4-star hotels, nightI and the average cost of a room in In June 2019, compared to May 2019, among the international travelers, the BOOKING.COM WEBSITE 2.2% - 5-star hotels. a guesthouse2 was 76 GEL per night. the number of international travelers’ The average cost of a room in a 5-star trips in Georgia increased by 20.8%, hotel in Georgia in June 2019 was 448 while among the international travelers, GEL per night. In Tbilisi, the average the proportion who stayed in Georgia price was 618 GEL, followed by Samtskhe- for 24 hours or more (classifi ed as tour- Javakheti - 417 GEL, Adjara – 384 GEL, ists) increased by 11.1%4. and Kakheti - 369 GEL. In June 2019, compared to June 2018, hotel prices in Georgia decreased by HOTEL PRICE INDEX 2.9%, this was mainly due to the prices In June 2019, in Georgia the hotel price of 3*, 4*,5* hotels. The prices of 3*, 4*,

1 The results are based on the surveying of standard double hotel room prices of 3, 4, 5-star hotels and guesthouses in 10 regions of Georgia. Hotels were chosen arbitrarily according to random sampling principle. The study contains 71% (312) of all 3, 4 and 5-star hotels and 25% (456 guesthouses) of all guesthouses registered on www.booking.com The 3, 4 and 5-star hotel price data was collected by contacting hotels individually, while the prices of guesthouses were taken from booking.com. The average prices are arithmetic mean of standard double hotel room prices. 2 Guesthouse: a type of accommodation that is characterized by having a small number of rooms and services are usually offered by the resident family. 3 The calculation of the hotel price index is based on the recommendations given by the International Monetary Fund (IMF). The elementary aggregate price index is calculated by Jevons index (Consumer Price Index Manual-Theory and Practice (2004), Practical Guide to Producing Consumer Price Indices (2009)). 4 Source: GNTA Graph2: Number of Accommodations Registered on Booking.com Website 5 * Preliminary results

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GEORGIA TODAY 6 BUSINESS JULY 23 - 25, 2019 Tomsguide Publishing: HUAWEI P30 Pro Camera is Revolutionary

4200mAh battery and energy saving TRANSLATED BY KETEVAN smart technology, enabling clientele to KVARATSKHELIYA use the smartphone the whole day through, almost uninterrupted. That is why HUAWAEI has been included in UAWEI P30 Pro is still the the top-6 list of the Cnet publication. best choice for the mobile The HUAWEI P30 Pro is equipped with photography enthusiasts. four high-quality cameras, meaning that 4-core cameras, created for the full utilization of capabilities it with Leica, take mobile needs a strong battery. Its 4200 mAh Hphotography quality to a new level. battery supports up to 22 hours 57 min- Moreover, HUAWEI P30 Pro offers inno- utes, and charging to 70% takes just 30 vative technological capabilities, helping minutes. This fi gure is defi nitely an users refl ect their surrounding reality. attractive factor for any consumer with It comes as no surprise, then to hear that a busy lifestyle for whom a smartphone renowned technological publication is an inseparable part. Tomsguide has named the HUAWEI P30 Experts in the fi eld claim that the smart- Pro „revolutionary camera with no phone has durability for the entire day, rivals“. even during usage. In addition, the HUA- Due to its battery strength, the smart- WEI P30 Pro gives you an opportunity phone has also been included in the top-6 to reverse charge your friend’s phone list of Cnet publication. too! The 5G technological revolution, incred- The outstanding design of the HUA- ible foldable display, sophisticated fi n- WEI P30 Pro certainly catches the eye, gerprint scanner embedded in the screen, as, compared to other smartphones it is as well as other technological achieve- distinguished with a wide choice of the quality of images. Through the because of the light, is made easy with the USA, Germany, Sweden, Russia, India ments: 2019 has certainly kicked off suc- colors to please customers of any taste. spectrum of colors, ensured by the HUAWEI’s innovative technologies. and China. HUAWEI Consumer BG is cessfully, with the mobile industry offer- And then there’s the camera… 40-MP core camera, the superzoom Even trembling hands can’t beat the one of three business units of HUAWEI, ing various amazing and customer-based The device is equipped with a 20-MP lenses with OIS and AIS stability, offer P30 Pro: the professional dual camera, mainly focusing on the production of innovations. While upcoming novelties super wide-angle, 40-MP squared lens, 10x hybrid zoom of the same quality, along with OIS AIS, increases stabiliza- smartphones, personal computers, tab- are yet to be revealed, one is obvious: with a diverse appearance, which, in without any losses. tion, guaranteeing you clear images. lets and cloud services. The HUAWEI battery strength is the most important order to obtain a maximally large zoom, The HUAWEI P30 Pro amazes clien- HUAWEI products and services are Global Network is based on 20 years of function. uses the prism-base periscope system. tele, as well as photography enthusiasts, available in more than 170 countries and experience in the telecommunications HUAWEI P30 Pro is certainly a leader The new architecture of the periscope with the quality of images, even those are used by a third of the world's popu- business and serves to the production in the battery strength direction. The lenses is comfortable and contains shot in bad lighting. Refl ecting images, lation. There are 16 research and devel- of innovative technologies to customers smartphone is equipped with the strong more optical layers without decreasing which in general may not be captured opment centers operating worldwide in around the world. A Budget Smartphone with Future Technology: HUAWEI P Smart Z Is Already in Georgia

taking selfi es, it automatically emerges BY MARIAM MERABISHVILI and hovers over the screen like a sub- marine periscope appearing from the surface. This futuristic design elegantly UAWEI P Smart Z is the solves the location problem of the front new model with a unique camera and allows the screen to be fully combination of progres- utilized. sive technology, revolu- The lens of the camera rises softly even tionary aesthetic design after prolonged use. As a result of HUA- Hand affordable price, which allows the WEI's strict tests, it can endure up to customer not to lag behind the times or 100,000 different damaging situations. trends in future technology. Sales of the In addition, smartphones have a clever P Smart Z series smartphones at HUA- mechanism to protect against drops, WEI's partner stores has already begun automatically detecting the fall and in Georgia. retracting the camera lens. The front The HUAWEI Stark was developed camera is equipped with artifi cial intel- primarily with students and young pro- ligence that automatically captures 8 fessionals in mind, users anxious to take common scenes of photography, includ- advantage of their newfound independ- ing blue sky, greenness, closed space, ence, but also occasionally needing to and snowy views. Its light and background put business before pleasure. adjustment function, as well as the algo- Signifi cant features of the model are rithm of making facial features prettier, the pop-up camera with the support of and 3D portrait lighting effects, allows AI (artifi cial intelligence), durable bat- users to capture an excellent portrait. tery, functional and effi cient operating The P Smart Z is equipped with a 16MP system, full HD screen, powerful graph- + 8 MP + 2MP triple camera system. ics and distinctive aesthetic design. Through the basic 16 MP and 8 MP cam- The 16-megapixel pop-up camera of eras, you are able to make crystal clean the P smart Z, during normal use is hid- photos with the perfect perfection of den within the phone body. When front detail and lighting technology. The 8 MP 120-degree width and the 2MP sensor of 85% produces a rich and vibrant that cleans up system cache, fragments, camera is activated, for instance when camera is capable of shooting at a works in coordination with the main visual tapestry, providing the magnifi ed increases memory, and provides smart- camera and allows you to shoot SLR display with bold textures and vivid fea- phone’s ordered performance for longer quality photos. tures. . The HUAWEI P Smart Z is periods without delays. P Smart Z screen has taken a bold leap equipped with a modern eye comfort HUAWEI products and services are into the unknown, by envisioning a screen mode that fi lters out harmful blue light available in more than 170 countries and entirely free of holes, notches, or sliders, to prevent eye strain and fatigue. This are used by a third of the world's popu- for an authentic full screen effect.. By function has been strictly tested for photo lation. There are 16 research and devel- relocating the front camera, earpiece, biological safety and been certifi ed as opment centers operating worldwide in and ambient light sensor, the HUAWEI effective by TÜV Rheinland . the USA, Germany, Sweden, Russia, India Stark achieves a sleek 19.5:9 screen aspect With the renewed, 12 nm process Kirin and China. HUAWEI Consumer BG is ratio. When streaming videos or gaming, 710F chipset, smartphone work has been one of HUAWEI's three business units, the user can traverse distant landscapes improved overall performance is 30% mainly focusing on Smartphones, per- and gaze into far-off horizons. With a higher, while energy consumption is sonal computers, tablets and cloud ser- 2340 x 1080 Full HD display and a jam- actually 30% lower. In duration, the vices. HUAWEI Global Network is based packed pixel density of 391 PPI the strong battery comes close to the top on 20 years’ experience in the telecom- HUAWEI screen appears to work like a players in the market. In addition, the munications business and serves to pro- magnifying glass, conveying detail on a EMUI 9 operating system includes lead- vide innovative technologies to custom- minute scale. The wide color palette of ing F2FS 2.0 and EROFS technologies ers around the world. GEORGIA TODAY JULY 23 - 25, 2019 BUSINESS 7 Good Signs for Georgia’s 2019 Hazelnut Harvest

Image source: Georgian Hazelnut Improvement Project

GeoStat trade data from January – April 2019 BY SAMANTHA GUTHRIE shows that Georgia imported $24.5 million worth of edible fruit, nuts, and grapes, a $0.4 million increase year-on-year. The increase in imports is midst the economic uncertainties and primarily driven by nuts, including hazelnuts, which risks of Russia’s fl ight ban to Georgia, had already exceeded $7 million in the fi rst four and harsh late spring weather in many months of 2019. Increased nut imports were neces- parts of the country damaging crops, sary to balance the 24% decline in hazelnut pro- fi nally – some good news for Georgia’s duction in 2018 (from 21.4 to 16.3 thousand tons) Aeconomy. compared to 2017. In the fi rst quarter of 2019, nut Over the past few years, Georgia’s once promis- exports plunged to $13.6 million compared to $23.2 ing hazelnut industry has been severely impacted million over the same period in 2018. by the brown marmorated stinkbug – an invasive Now, Georgian farmers in the western regions of pest that has been the target of several government Ajara, Guria, Samegrelo, and Imereti are anticipat- and private eradication initiatives with mixed suc- ing a strong hazelnut harvest for 2019. This year, cess. The stink bug problem reared its ugly head says Executive Director of the Georgian Hazelnut in Georgia in 2015. The bugs are thought to have Growers Association, Giorgi Todua, more than fi rst appeared in the Abkhazia region, which 40,000 tons of hazelnuts are expected to be har- increased the complexity of eradication operations vested, compared to 2018’s 17,000 tons. The hazel- as Abkhazia is currently an occupied territory. The nuts will be harvested throughout the month of pests destroyed a large amount of Georgia’s hazel- August. Demand for Georgian hazelnuts is high, nut harvest in 2016 and continued to cause wide- particularly in Europe. spread devastation in 2017. The Georgian Hazelnut Improvement Project is The 2018 Georgian national budget included 4 a fi ve-year project (2015-2020) funded and imple- million GEL ($1.6 million) for the fi ght against the mented by the Global Development Alliance (GDA) pests, complemented by another 8 million GEL ($3.2 (USAID, Ferrero, and CNFA) to increase the sus- million) from USAID, which included tractors and tainable capacity and private sector development sprayer trucks. International organizations, among of the hazelnut industry in Georgia. The project them the International Plant Protection Convention has made a strong contribution to the restoration and the European and Mediterranean Plant Protec- of the industry, providing more than 15,000 hazel- tion Organization, are cooperating with the Georgian nut farmers with technical assistance and pesticides. side to effectively counter the threat. This January, Todua gave advice to farmers this week, saying the Government approved plans to continue fi ght- “little time is left before harvesting, and it is espe- ing the stink bug in 2019. “The plan includes more cially important to continue the fi ght against the effective steps, including the improvement of com- stink bug and against fungal diseases. I would give munication with the population,” read a press release three recommendations to farmers: spray the hazel- from the Prime Minister’s Offi ce. As part of the new nuts once more before the harvest starts; timely measures, farmers now receive text messages on collect the harvest; and dry the hazelnuts properly.” their cell phones informing them about planned The Georgian Hazelnut Improvement Project mitigation activities. Representatives of the National explains that hazelnuts are Georgia’s largest agri- Food Agency have been holding regular public cultural export by value and support the livelihoods awareness meetings on the use of methods to pro- of more than 50,000 growers and processors. “Due tect homes and reduce stink bug populations. The to inconsistent quality and lack of market distinc- National Food Agency asserts that their efforts have tion, Georgian hazelnuts often sell at lower prices,” helped prevent the spread of stink bugs in eastern they warn. The project aims to “transform and Georgia, and in western Georgia the pest’s popula- streamline the hazelnut value chain to improve the tions have decreased. quality of Georgian hazelnuts.” Karasin: Wine Sanctions Not on the Agenda

BY ANA DUMBADZE

eputy Foreign Minister of Russia Grigory Karasin spoke about the sup- posed wine sanctions Russia was talking of imposing on Georgia. As he stated in an interview with RIA DNovosti, at the moment the topic of imposing restric- tions on certain Georgian products has been closed. “Amid the recent developments in Georgia, Rus- sia was discussing the issue of imposing a ban on the import of the Georgian wine and mineral water. However, the President of the Russian Federation Vladimir Putin called for restraint and spoke in favor of a balanced approach. Thus, the topic of “wine” sanctions against Georgia is closed for now,” As for the Russian travel ban against Georgia, he said. Karasin said that the restriction on fl ights between Karasin noted that Russia “has itself been under two countries is temporary. According to Karasin, the pressure of sanctions for many years,” and the fl ight ban will be canceled "when the Georgian therefore the Russian side is cautious about the side stabilizes the situation in the country, ends introduction of restrictive measures against other the Rusophobic campaign and ensures the safety states. of Russian citizens in Georgia." GEORGIA TODAY 8 BUSINESS JULY 23 - 25, 2019 Batumi View – A Mesmerizing Product at 10% Off

BY KETEVAN KVARATSKHELIYA

atumi, also known as the ‘Pearl of the Black Sea,’ is one of the fastest-devel- oping cities in Georgia, as well as in the entire region of the South Caucasus. Each year, Batumi treats local residents Band visitors to new modern facilities, including incredible residential complexes. Batumi View is one of these treats, implemented in the capital of Ajara by the investment company Rekan Group Georgia under the banner “Batumi View Apart- ments - tailored to your highest Standards.” Indeed, designed by a group of experienced pro- fessionals in accordance with international stand- ards, Batumi View represents a fabulous residential complex on the New Boulevard of the renowned Black Sea beach. Batumi View is a multifunctional complex boast- ing three buildings, set to integrate 810 hotel-type apartments as well as a fi ve-star hotel with 280 rooms and a number of facilities following com- pletion at the end of this year. GEORGIA TODAY spoke to Irma Kamadadze, Head of the Sales and Marketing Department, to fi nd out more about the ongoing project.

WHAT MAKES BATUMI VIEW STAND OUT FROM OTHER PROJECTS? Batumi View is set to be one of the most outstand- ing projects in Batumi. It will boast all the neces- sary facilities, ensuring maximum comfort for all guests and meeting their requirements at the high- families with minors. Underground and above- comfortable for both residents and visitors. Actually, we do! Anyone wanting to buy an ideal est level. There will be an outdoor swimming pool, ground parking places will also be available. apartment with mesmerizing views of the moun- panoramic terrace restaurants with stunning views SOME CONSTRUCTION COMPANIES tains and Black Sea can, from the end of this month, of the city of Batumi, a spa, and tennis courts for WHAT ABOUT THE LOCATION? MAKE SPECIAL OFFERS TO ENTICE benefi t from a 10% discount on the purchase of a sport enthusiasts. In addition, Batumi View is to It’s just 2km from Batumi International Airport EARLY-BIRDS. DO YOU HAVE property in the premium-quality residential com- have a playground for children, making it ideal for and 600m from the city center. This makes it very ANYTHING LIKE THAT IN STORE? plex. Don’t miss out!

International Conference ‘Modern Problems of Water Management, Environmental Protection, Architecture and Construction’

Architecture and Construction’ will be held in the Niko Nikoladze conference hall of the Georgian Technical University. Scientist and experts from 11 countries have already registered (from Georgia, Lithuania, Latvia, Russia, Belarus, Azerbaijan, Armenia, Poland, Spain, Portugal, and Italy). The Conference will kick off on July 25, at 10:00 AM, in the Niko Nikoladze conference hall of the Georgian Technical University (Tbilisi, Kostava Street 77). For more information, contact the Co-chair of the Organizing Committee of the 9th International Conference, the Director of the Tsotne Mirtskhu- lava Water Management Institute of the Georgian Technical University, Doctor of Technical Sciences, Professor Givi Gavardashvili. E-mail: [email protected]; gwmi1929@gmail. com; Tel: 2 22 4094; Mobile: 593 153 470

n relation with the 90th anniversary of estab- lishment of the Tsotne Mirtskhulava Water Management Institute of the Georgian Tech- nical University, on July 25-28, the 9th inter- national conference ‘Modern Problems of IWater Management, Environmental Protection, GEORGIA TODAY JULY 23 - 25, 2019 SOCIETY 9 Former Minister of Defense: Rose Revolution was Financed by Me

BY ANA DUMBADZE

ccording to Irakli Okruash- Image source: Ministry of Defense of Georgia vili, the former Defence Minister of Georgia under the United National Move- ment leadership and cur- Georgia to Host Agile Arent leader of the Victorious Georgia party, the 2003 Rose Revolution was fi nanced by him. “I had certain contacts and connections Spirit 2019 Exercise before and after the developments of the cuting operations within the multinational BY KETEVAN KVARATSKHELIYA 2003 Rose Revolution. When you were environ and contribute to the maintenance saying that the 2003 Rose Revolution of stability and security across the Black was fi nanced by George Soros, or Bidzina Sea Region. “Strength through Partner- Ivanishvili, actually, the entire campaign rom July 27 to August 9, Geor- ship” has been set as the main message was fi nanced by me. I had the relevant gia is to host the Agile Spirit of the initiative. The Ministry also states leverage for that, I have now and, very 2019 multinational exercise. that the multinational exercise is complex likely, I will have it in the future as well”, The project, planned to bring and its scenario envisages staff and fi eld Okruashvili told journalists. together over 3,000 soldiers trainings with life fi re, engagement of The Revolution of Roses, often trans- fromF the 14 NATO member states and maneuver and combat support elements lated into English as the Rose Revolution allies, will offi cially kick off at the 2nd in offensive and defensive operations. was a pro-Western peaceful change of Infantry Brigade of Senaki, Western The countries, participating in the Agile power in Georgia in November 2003. Georgia and will also take place at Orpolo Spirit 2019 are as follows: Georgia, UK, The revolution was brought about by and Vaziani fi re ranges. US, Poland, Lithuania, Latvia, Bulgaria, widespread protests over the disputed The Ministry of Defense of Georgia Belgium, Norway, Montenegro, Greece, parliamentary elections and culminated climactic moment when demonstrators from 3 to 23 November 2003, the Revo- reports that the major aim of the exercise Turkey, Ukraine, as well as Romania. in the ousting of President Eduard She- led by Mikheil Saakashvili stormed the lution triggered new presidential and is to enhance interoperability between It is the 9th time that Georgia hosts the vardnadze, which marked the end of the Parliament session with red roses in parliamentary elections in Georgia, which the participating countries, sophisticate exercise. It is to be led by the Ministry Soviet era of leadership in the country. hand. established the United National Move- operational capabilities, as well as of Defence of Georgia and the United The event derives its name from the Consisting of twenty days of protests ment as the dominant ruling party. strengthen in terms of planning and exe- States European Command.

TOURISM IN AJARA: CHALLENGES. ACHIEVEMENTS. POTENTIAL.

24th JULY 13:00 – 15:00

PARTICIPANTS: Entrepreneurs from tourism industry, Government, Media SUPPORTER: Department of Tourism and Resorts of Ajara HOST: Hilton Batumi GEORGIA TODAY 10 SOCIETY JULY 23 - 25, 2019 Top 5 Protected Areas in Georgia Visited Most Frequently

diversity of fauna, and you might be species, such as the East Caucasian tur, lucky enough to see Roe deer, hare, Beech chamois, wolf (Canis lupus), Pine Mar- marten, Grey wolf, Brown bear, Red fox ten, Brown bear, and lynx. or lynx. There is also a diversity of rep- The Strict Nature Reserve is the best tile species and fl ora. environment for birds of prey like the Tbilisi National Park directly borders Golden eagle, griffon vulture, Bearded with the masterpiece of Georgian archi- vulture, the Caucasian Black grouse and tecture of the 6th century – the Jvari the Caucasian Snow cock. monastery of Mtskheta. There are numer- Historical monuments, such as the 14th ous monuments of exceptional impor- century Sameba temple, 10th century tance in Mtskheta and its surroundings, Garbani church, Sioni three-part basilica, which are under the protection of UNE- Akhaltsikhe basilica and 17th century SCO, including the 11th century Svetit- Sno castle also prove popular with visi- skhoveli Cathedral, Samtavro Church of tors. the same period, the 6th century mon- astery complex of Shio Mghvime and OKATSE CANYON the Jvari monastery. All of Mtskheta is Okatse Canyon is located in the western like a small city-museum and plays host part of the country, 50 kilometers from to numerous Georgian and foreign guests Kutaisi, in the gorge of the River Okatse. daily. The length of the gorge is about 3 km, the depth is 50 meters. Walk along the KAZBEGI NATIONAL PARK one-kilometer newly-renovated and Kazbegi has rich tourist potential: breath- handrailed suspension bridge 140 meters taking nature, biodiversity, historical- up to get the best views of the gorge. cultural monuments, and an interesting The footpath to the canyon passes local culture. Kazbegi National Park is through a beautiful forest area where Source: Georgian Tours located on the northern slopes of the you can see the ruins of the 18th century main Caucasus range, in the basin of the palace of the Dadiani noble family. The If you haven’t yet been to those Top 5 Tergi River gorge. Boasting a total area total length of the route from the visitor BY THEA MORRISON MARTVILI CANYON areas, put it on your summer list. Check Martvili village is located in the Same- of 9,030 hectares, all of the Kazbegi center to the canyon and back is about them out below. grelo region of Western Georgia, 280km National Park is mountainous. Its lowest 7km. from Tbilisi. Martvili is one of the most part is located 1400 m above sea level At the end of the walkway, you will fi nd he Georgian National Tour- PROMETHEUS CAVE popular canyons in Georgia and is divided and the upper within 3000 – 4100 m. It a viewing platform in the form of a jib ism Administration The cave of Prometheus is located near into two parts, Upper and Lower. Paddle was established with the aim of protect- crane hanging directly above the center (GNTA) reports that in the the Georgian town of Tskhaltubo, 20 a dingy along the canyon from the Upper ing Georgia’s high mountain ecosystems. of the gorge. This platform offers the fi rst six months of 2019, kilometers from Kutaisi in the Imereti part to discover the 12-meter waterfall, There is very rich fl ora and fauna in best view of the surrounding nature and 411.905 visitors visited Geor- region of western Georgia. The cave was or walk the renovated trail through the the park, including Georgia’s Red List the Okatse River below. Tgia’s protected areas, which is up 10% discovered in 1984 and was soon devel- woods, past the steps ancient kings once on the same period of 2018. oped as a show cave, in the past decade used to access the natural pool. Due to In January-June of 2019, the most vis- being installed with hand-railed concrete the high humidity, the walls of the can- ited protected areas in Georgia were: walkways and colored lights. It got its yon are covered with moss, lending it a 1. Prometheus Cave name from legendary protagonist Pro- very green and jungle-like appearance. 2. Martvili Canyon metheus, who was said to have been You will also see lianas that grow along 3. Tbilisi National Park chained to the mountains nearby. the length of the canyon, small streams 4. Kazbegi National Park It is the biggest cave in Georgia, and numerous waterfalls. 5. Okatse canyon although only one tenth is open to While visiting Martivili canyon, make The Agency of Protected Areas reports tourists, and it takes about an hour to a stop at the 6th century Martvili Mon- that the number of foreign visitors walk through. Surrounded by a 3 km astery (Chkondidi). increased by 27% in the mentioned landscaped area, Prometheus Cave is period. one of the most attractive tourist spots TBILISI NATIONAL PARK In addition to this, in January-June 2019, in Georgia. It is a unique experience Tbilisi National Park is located 25 km Georgia hosted 3,862,444 international to feel the underworld atmosphere in from Tbilisi and is included in the Green travelers, which is 8.4% more compared all its glory and colors. Tourists can Zone of the city. Between Mtskheta and to the same period of 2018. In total, Geor- take a guided walk along the 1600-meter Tbilisi, the national park was established gia received 471,979 tourists last month trail and then an additional boat ride in 1973 on the basis of the previously (71,990 visits more, year-on-year). out via the underground river. Visitors existing Saguramo National Reserve According to the statistics, in June, are usually stunned with the breath- (established in 1946), making it the old- Source: georgianholidays.com the number of international travelers taking sight of stalactites, stalagmites, est national park in Georgia. amounted to 873,966,an increase of petrifi ed waterfalls, underground riv- The territory of Tbilisi National Park 20.2%. ers and pools. is distinguished with a considerable

Source: ticket.vanillasky.ge

Source: otg.ge Source: Georgian Journal GEORGIA TODAY JULY 23 - 25, 2019 POLITICS 11 Needing Russia, Hating Russia

Russia’s economic potential to push its OP-ED BY NUGZAR B. RUHADZE product profi tably into the Russian mar- ket but Georgians are, at the same time, aggravated that they need to rely on Rus- t is Georgia’s eternal blight that, sian shoulders; Georgia knows that it will historically, it is has always been never overpower Russia in anything on faced with geopolitical choices earth but still fi ghts her, mostly verbally, never easy to make. A quarter of at any possible opportunity; seemingly, a millennium has passed since Russia is out of this country lock, stock IGeorgia was compelled to unite its fate and barrel but she is still omnipresent with Russia, and we are still in an exac- materially, ideologically and linguistically; erbated argument as to whether the move Georgia thinks that its de facto lost ter- was right or wrong. At that time, it was ritories are still part of Georgia but they a choice between Islam and Christianity. are gone in reality, goodness knows for Currently, it is an alternative between how long - forever, if you ask Russia; Russia and the West. socialism is done with but the socialist The choice-making itself is something ways and means are still around; human we can live with, but our unfortunate lot rights are all in place but the struggle for is that we do not know for sure which them is still rampant; democracy has tri- way is more agreeable, as it was centuries umphed but autocratic manners are still before. What a curse! The nation is liter- in our blood; the West is prepared to sup- ally split on the issue, and feelings are so port Georgia, but only vocally and in a heated on both sides that we might never lukewarm fi nancial direction, unwilling escape the quandary: the West is more to damage their own relationship with civilized and hence more eye-catching, Russia for the sake of Georgia; the Geor- whereas Russia is more backward and gians know for certain that nothing will thus less attractive; Russia is an occupant, put them on the right track to enhance is no certainty that the pick is going to part of the western world. If Georgia is think that Georgia has no way of being permanently curtailing Georgia’s terri- their standard of living except a well- be the best one for Georgia, and there reinvaded by Russia and dragged back an unaligned country in the present cir- tory, and Georgia is incapable of defying developed economy but still spend a are no experts or fortunetellers around into the Russian empire as a colony, as cumstances. This is why the implemen- the assailant; Russia is an adversary but monstrous amount of time on political to confi dently sign under any of the has happened more than once in the tation of a balanced relationship between it controls a lot of businesses and real blah-blah and street-oriented political available options. past, then our blood and efforts of the Russia and Georgia, not making any estate here; Georgia is very angry with life; the Georgian men and women are If Georgia goes and joins the West, it last thirty years will be washed down additional waves, was one of the wisest Russia in general but still receives a huge aware of the nation’s plummeting demog- will acquire a vested enemy in the form the tubes and the Georgian people will decisions the Georgian governments of amount of Russian tourists with a great raphy but still want to be convinced fam- of Russia, who will never give Georgia have to put up with whatever is left for the latest 30 years made. Recently, some- deal of deference and assumed benevo- ily planners. a chance to enjoy the gifts of western them to enjoy. body wanted to corrupt that pragmatic lence in hopes of making some money The choice that we are being forced to civilization, even if the entire globe sup- How about Geopolitical Neutrality? attitude. Hopefully, that ‘somebody’ has on them; Georgia needs to make use of make will someday be made, but there ports the idea of Georgia being a natural No! Because most political scientists lost the chance forever. Anti-Corruption Committee Working Group Meets Anti-Corruption Council is chaired by ing, making it both vulnerable to high- BY SAMANTHA GUTHRIE the Minister of Justice of Georgia, Thea level corruption” and is “a country to Tsulukiani. watch moving forward.” It attributes the The Council’s working group is a panel downturn to “a lack of accountability of n Friday, July 19, the work- of experts from relevant institutions that law enforcement, corruption and polit- ing group of the Georgian work on a wide array of corruption pre- ical interference in the judiciary, and Anti-Corruption Council vention measures, according to their government-sponsored attacks on inde- met at the Ministry of Jus- fi elds of expertise. The working group pendent civil society, among other issues.” tice to discuss its agenda develops policy documents and reports Transparency International criticized forO 2019-2020. The working group based on the implementation of the Action Georgia for failing to establish independ- their program on previously developed Plan developed by the Council. ent agencies to take on this mandate of strategies and action plans and survey The Anti-Corruption Council devel- battling corruption. data from international and Georgian oped a strategy and action plan to com- In an April 2019 survey, Transparency organizations. They also conducted a bat corruption in Georgia, with the International found that while Georgians risk analysis to defi ne the priorities of cooperation of civil society and inter- were almost never asked to pay a bribe the anti-corruption policies they will national organizations, approved by the in return for receiving public service develop in line with the mandate of the President of Georgia. Both the strategy (1% in the past 12 months), other forms Council. and action plan “identify corruption of corruption are believed to be wide- The Anti-Corruption Council was sensitive areas and provide for targeted spread. 59% of respondents say abuse of established on the basis of the Law of actions aimed at the modernization of power by public offi cials is common in Georgia on Confl ict of Interests and public service, development of admin- Image source: Ministry of Justice of Georgia Georgia. 36% of respondents think abuse Corruption in Public Service. The func- istrative services and state procurement, tion Council. tom of the region, Turkmenistan earns of power for personal gain by public tions of the council include: coordinat- reforming the public fi nance system, Since independence, Georgia has made the lowest score in the region (20), with offi cials is common, while only 15% think ing anticorruption activities in the coun- developing tax and customs systems, great strides in reducing corruption, but Uzbekistan (23) and Tajikistan (25) earn- it is uncommon. 91% of those respond- try, updating the anticorruption action guaranteeing a competitive and corrup- there is a continuous risk of a reversal ing only slightly more. Overall, with an ents who think such actions are common plan and strategy and supervising its tion-free private sector, enhancing jus- of that trend, and the challenge of bal- average score of 35, Eastern Europe and believe employers aim to hire their own implementation, monitoring the account- tice administration, increasing intera- ancing anti-corruption and human rights Central Asia are the second lowest scor- family members, friends and relatives ability of international organizations, gency coordination for prevention of measures remains. ing regions in the index, ahead of only rather than using a fair, merit-based job initiating relevant legislative acts, and corruption, improving the system of In the 2018 Corruption Perceptions Sub-Saharan Africa, which has an aver- application process. Regarding abuse of drafting recommendations for policy- political party fi nancing and preventing Index (CPI), released by Transparency age score of 32. power, 86% of respondents think public makers. political corruption,” explains the Min- International in January, Georgia had Georgia has advanced its score by two offi cials abuse power in an attempt to Members of the Council are defi ned istry of Justice. The Action Plan identi- the best scores in the Eastern Europe points since last year, taking 41st place protect their own or family businesses, by Presidential Decree, and include rep- fi es 14 responsible agencies who submit and Central Asia region, coming in with among the 180 countries surveyed. The 79% think there is inappropriate spend- resentatives of different governmental regular reports on the implementation 58 out of 100 points, above Montenegro CPI 2018 does warn, however, that the ing on the part of public offi cials, and and non-governmental agencies. The of the Action Plan to the Anti-Corrup- (45) and Belarus (44). At the very bot- country now faces “democratic backslid- 58% believe public offi cials take bribes.

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