Economic ProfileMtskheta, Georgia

WHS: BTU Cottbus WS 2015Module: Tourism 37-04-05Professor: Art PedersenStudent : Stefan Raychev Matriculation ID: 3417086Date: 27/11/2015

Figure 1. Georgia location

Figure 2. Mtskheta location

Figure 3. Mtskheta

Mtskheta Heritage Sites

Source: Tripadvisor

Figure 4. Jvari Monastery Figure 5. Svetitskhoveli Cathedral

Figure 6. Samtavro Church Figure 7.Bebris Tskihe Fortress

Content

• Introduction

• Economic background

• Present & Desired condition

• Issues & Solutions

• Archaeological sites

• Local farms

• Funding for World Heritage Site

• Business skills

• Q & A Session

Economic Background Administrative center of the Mtskheta-Mtianeti regionArea: 805 km2

57 400 – inhabitants Mtskheta Mianeti 10 100 – inhabitants ( city of Mtskheta) High Dependence on foreign investments

Figure 8. Level of urbanization Figure 9. Mtskheta population

8

Mtskheta-Mtianeti Region

• no large commercial farms

• subsistence farming prevails

• dominant cultivated crop: potato

• main branches of agriculture: cattle and sheep farming, dairy production

Figure 10. Farmer in Mtskheta – Minateti

Transport proximity to Tbilisi - 40% of municipality’s citizens work

Relatively high salaries 2nd after Tbilisi

Figure 11. ‘’Marshrutka – omnibus for public use ’’

Figure 12. Average monthly remuneration of employment: 2.5 GEL ≈ 1 Euro

Paradox: Highest poverty rates

Present condition

In 2009, The site is included in the List of World Heritage in Danger due to illegal construction

Is it authentic? Is it sustainable?Is it too late to act?

Late 19th Century

May, 2015

Living Heritage Site

Desired condition

• Increase the number of local entrepreneurs• Generate revenues to aid site conservation• Incentives for local farmers• Tangible and Intangible products• Authentic experiences • Change image via ‘’demarketing’’ • Raising awareness for the World Heritage Site

Economic Issues in Tourism

• High unemployment rate• 3-4 hours day trips no consumption• Monopoly and inequality• Accommodation capacity & activities• ‘’Grey’’ economy• Leakage of art and crafts revenues• Lack of activities or services for four season

sustainable tourism

Solutions

• Empowering small & medium sized companies • Diversification of products & services• Ecotourism- development of Heritage routes• Use of the river • ‘’Farm’’ tourism• Training from companies or professionals • MICE

Mtskheta Events14th October – Day of

Mtskheta

Georgian Wine Festival

Georgian Open Air Balloon Competition in October

Georgian Fruit Festival Source: ibtm world

Archeological sitesEconomic asset which should generate wealth among the local community and raise funds for preserving these sites for future generations.

- No attempt to generate revenue- Lack of interpretation- Poor infrastructure

Samtavro Cemetery Archaeological Site

LOCAL FARMERS • Enhancing agricultural cooperatives between SME• Use of branding local ‘’elaborated’’ products.• Awareness and promotion issues • Create added value to local products & services • Quality vs. quantity

Wachau Cultural Landscape, Austria

The use of tourism for funding World Heritage sites

Most common methods:

Conservation trust fund Concession contracts Visitor payback schemes Individual donations (collection boxes) Individual sponsorship Site membership ‘’Friends of the Site” Adoption routine Licensing for commercial products Entrance & Parking fees Online fundraising platforms Events

Donation box in the Svetitstkhoveli Cathedral (“Donation for monastery”)

Mastering the “Soft Skills” of Fundraising

Business skills1. Raising social awareness2. Ability to build trusting relationship3. Be on time4. The art of ‘’small talk’’ or ‘’word of mouth’’5. Etiquette6. Never give up

Q & A session

1. Which techniques do you think are appropriate to involve local community in the economic development that tourism creates?

2. How would you create economic benefits from “World Heritage in Danger ” status if you were the Manager on the site?

Thank you for your attention

Mtskheta, Georgia 2015