Georgia has announced it will be ready to receive international tourists from Wednesday, July 1, joining several other countries in reopening after months of lockdown due to the coronavirus pandemic.
The announcement comes ahead of the peak summer season for the Caucasus country, and as European countries also prepare to welcome travellers once more.
Georgia will reopen local tourism services from Monday, June 15, and will be ready to welcome international tourists two weeks later, the country's National Tourism Administration said in a statement.
More than two months after the coronavirus pandemic took hold of Europe, Georgia will join the ranks of nations such as Germany, France, Italy and Spain, which are making plans to gradually welcome guests back.
However, other European nations are reopening their borders to travellers to a select few countries, with each country having its own set of rules for those planning to visit.
Georgia, on the other hand, has stated its intention is to welcome all travellers but it's not clear how this will work as there are still several caveats.
Firstly, there will be set "zones" that travellers may be permitted to visit, and land border crossings are still being negotiated.
Prime Minister Giorgi Gakharia says the country is working on creating "safe corridors on land borders with our neighbouring countries and – based on bilateral negotiations – with countries that are of touristic interest to us".
"Talks have already begun. Georgia will be one of the first countries to open its borders and tourist infrastructure to receive guests from abroad," he says.
Georgia has reported just 623 cases of Covid-19 and nine deaths.
The country is a top destination for travellers from the UAE, due to its proximity and relative inexpensiveness. The flight from Dubai to Tbilisi is less than four hours.
In 2019, Georgia welcomed a record high of 9.3 million visitors. The country has set a goal of attracting 11 million tourists by 2025.
To get the tourism sector up and running again, Gakharia has promised to relieve businesses in the tourism sector from paying property taxes in 2020. He has also said the government will subsidise payments on loans of up to €1.3 million (Dh5.3m) for 80 per cent for hotels with a turnover of €5.7 million or less.
In its announcement, the tourism board also announced its intention to gather ministers of tourism from around the world for a United Nations World Tourism Organisation (UNWTO) conference in September in Georgia.
How will the reopening work?
Georgia does not plan to reopen the entire country at once, it would seem.
It will first receive tourists in “Green Zones”, where "infection cases of coronavirus have not been confirmed". However, these zones have not yet been finalised, a spokesman said. They were likely to be announced next week.
National Administration of Tourism boss Mariam Kvrivishvili says this would mean introducing "zones all over the country which are completely protected from Covid-19".
“Safety will be the main condition for us. Georgia is one of the first countries in the world to announce that it will reopen its tourism industry in the context of the current pandemic crisis. It is important that all hotels, food catering facilities, guides, and travel agencies unfailingly comply to the established international criteria for safety,” Kvrivishvili says.
Mountain and sea resorts would be next to open, at an undisclosed date. These would first open for internal tourists, and then foreigners.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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