ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Sep
05

Kazbegi Rooms: with a View to Improvement of Regional Development Policies

When planning a debate about the impact of the new Rooms hotel on the local community in Kazbegi we expected it to be a mixed bag. A colleague who visited Kazbegi Rooms on a private reconnaissance mission told us how much he enjoyed his stay, but added: “for some reason, the relationship between the hotel and the villagers is best described as complex”. As economists, we assumed that Rooms would be a major employer of locals and so the only issue could be competition for tourists between the hotel and the local bed & breakfast providers. And as is of...
Rate this blog entry:
Continue reading
2708
10 Comments
Write a Comment
May
19

Becoming Rich Delayed

During my morning shower, I like to think about Georgia’s economic prospects and how the country should develop. Since the Rose Revolution, there was a lot of “catch up growth”, i.e. growth that stems from returning from a state of chaos to normal economic conditions. Yet a country cannot catch up forever, and the only possibility for an emerging economy without substantial natural resources to sustain high growth is to profitably interact with the rest of the world. Usually, while I put shampoo on my hair, I start thinking about what Georgia could deliv...
Tags:
Rate this blog entry:
Continue reading
1829
4 Comments
Write a Comment
Nov
08

Travel and Tourism to Georgia: Making Sense of Definitions and Numbers

Travel and Tourism is one of the largest and fastest-growing service industries globally. According to the World Travel and Tourism Council (WTTC), the industry’s direct contribution to World GDP in 2012 was US$ 2.1 trillion (2012 prices) and it supported 101 million jobs. Taking account of its combined direct and indirect impacts, WTTC assesses Travel & Tourism’s total economic contribution at 9% of World GDP in 2012, 1 in 11 jobs, 5% of total economy investment and 5% of world exports (Economic Impact of Travel and Tourism 2013, Annual Update, WTTC...
Tags:
Rate this blog entry:
Continue reading
3833
2 Comments
Write a Comment
Jul
15

The "Wizz Air Effect" or how Georgia Became Part of the Global Economy

On Monday evening I am taking the express train from Tbilisi to Samtredia with my wife and two kids (business class, 120GEL). We plan to stay overnight in a little family hotel (40GEL), and at 6.30am we’ll board the Wizz Air flight to Katowice, Poland, at the cost €40 a person and €35 per suitcase (one way). Seat reservations, luggage, train and guesthouse included, the roundtrip to Poland will cost my family around €700 compared to €1,500-2,000 using any other, conventional option. A real bargain! (even if we ignore the fact that my wife’s family is act...
Rate this blog entry:
Continue reading
3427
5 Comments
Write a Comment

Our Partners