How winter resorts are shaping Georgia’s economy, the role of tourism in boosting growth, and the country’s position as a leading destination for international travellers, particularly in the winter sports sector, are central to understanding the nation’s emerging economic landscape. In this interview, Giorgi Tskitishvili, CEO of Midamo Development, shares his insights on these topics and discusses how winter resorts are transforming Georgia’s tourism, real estate, and infrastructure sectors, while positioning the country as an attractive destination for both investors and visitors.
- How would you describe the impact of winter resorts on Georgia’s economy?
- Winter resorts have become a crucial pillar of Georgia’s economy in recent years. Resorts like Bakuriani, Gudauri, and Goderdzi are not only attracting an increasing number of tourists but are also driving investments in infrastructure, real estate, and services. The boost in tourism, particularly from European, U.S., and Arab markets, is contributing significantly to local economies, creating jobs, and supporting various industries, from hospitality to retail. The multiplier effect is undeniable, with positive impacts felt across sectors.
Furthermore, the ROI factor in these regions has been growing steadily, as the demand for vacation properties, short-term rentals, and ski resort developments continues to rise. Investors are seeing strong returns due to the high visitor traffic and the growing infrastructure investments.
- As you mentioned, Bakuriani, Gudauri, and Goderdzi are among the most popular ski resorts in Georgia. How are these destinations shaping the local economy?
- Each of these resorts plays a vital role in the local economy. Gudauri, for example, has gained a reputation for world-class skiing, attracting tourists from various regions, especially Europe and the Arab world. This influx of visitors stimulates the hospitality industry, drives demand for real estate development, and creates employment opportunities. Bakuriani, traditionally known as a family-friendly resort, is seeing growth in both local and international tourists, especially with the rise in family-oriented ski packages. Goderdzi, located in the Adjara region, offers a more unique experience with its blend of mountain and sea views, which makes it appealing to a different type of visitor. In short, these resorts contribute significantly to both local and national GDP, and their success has a direct link to the growth of Georgia’s tourism sector.
- How do Georgian winter resorts contribute to the overall Georgian economy beyond tourism?
- Aside from tourism, winter resorts have a large impact on the real estate market. Many international investors and developers, including Midamo, have been focusing on these areas, capitalizing on the growing demand for vacation properties. Ski resorts attract both short-term visitors and long-term investors, particularly those interested in properties that can generate income through short-term rentals. Additionally, the infrastructure improvements being made, such as road developments and new cable cars, benefit not only the tourism sector but also the wider economy by improving connectivity and creating a more favorable investment climate.
- Tbilisi Airport has seen an increase in international visitors. Can you speak to the growth in arrivals and how this impacts the real estate market?
- Absolutely. According to recent reports, Tbilisi International Airport has experienced significant growth in passenger numbers. In 2023, the airport recorded a 40% increase in international travelers, with many coming from Europe, the United States, and the Middle East and Georgian Airports Reach New Heights in 2024 with Record Flights. This surge in tourism directly benefits the Georgian economy, as more visitors mean increased spending on hotels, restaurants, and leisure activities. For developers like us, this growing influx of tourists enhances the attractiveness of investing in Georgian real estate. It also strengthens the case for infrastructure projects that support and sustain this growth.
- You mentioned short-term rentals. How does the demand for stable short-term rentals attract foreign investors to Georgia?
- The short-term rental market in Georgia has become an increasingly attractive opportunity for foreign investors, and ski resorts are at the heart of this trend. Investors know that properties in ski resort areas generate consistent income, especially during peak tourist seasons. Furthermore, Georgia's legal framework for short-term rentals is clear and stable, making it a reliable market for investment. Foreigners see Georgia as an ideal destination due to lower property prices compared to European ski resorts, while still offering similar – if not superior – experiences in terms of quality of skiing, natural beauty, and a rich cultural atmosphere.
- What role does the country’s contribution play in supporting ski resorts and the real estate sector?
- Georgia has been instrumental in boosting the ski industry and making the country more attractive to both tourists and investors. For instance, several international ski events have been organized, helping to increase global exposure. Additionally, infrastructure projects like the new ski tracks and cable cars in Gudauri have drastically improved accessibility, contributing to a better tourist experience. These kinds of developments not only attract more visitors but also provide developers with the opportunity to market their projects effectively. Georgia’s pro-business environment, particularly in relation to real estate and tourism, has created a stable atmosphere for us to invest and grow our projects.
As ski resorts become more accessible and more people visit, the demand for high-quality vacation properties increases. As developers, we are able to leverage these improvements in our advertising and sales strategies. We also benefit from the positive international attention that these developments generate, as foreign tourists learn about Georgia as a ski destination. This combination of infrastructure investment, event promotion, growing international reputation as well as affordable property prices compared to neighboring countries, no property ownership tax, fast and easy property registration and overall, a reliable, high-growth market gives developers like Midamo the tools we need to succeed.
- Lastly, why are foreign tourists increasingly choosing Georgia as their ski holiday destination?
- There are several factors driving this trend. First, Georgia's strategic location makes it a prime destination. It’s just a few hours from Europe, with easy access for travelers from the Gulf countries, Turkey, and Azerbaijan. Second, the cost of living, including travel, accommodation, and food, is much lower than in traditional European ski resorts, making it an affordable option for travelers. Third, Georgia offers unparalleled natural beauty and a rich cultural experience, with majestic mountains, ancient churches, and historic architecture. The unique combination of affordable luxury, spectacular scenery, and accessibility has made Georgia a top choice for ski tourists looking for something different.
Conclusion:
Georgia’s winter resorts are not only elevating the tourism sector but are also playing an important role in the country’s overall economic development. As Tbilisi’s airport continues to see growth in international arrivals and the country invests in infrastructure, the future looks bright for the nation’s ski resorts and real estate market. With foreign tourists flocking to Georgia for its low costs, breathtaking nature, and unique culture, the Georgian economy will continue to benefit from the booming winter tourism sector.
Latest News
მოსაზრება
