BAKU, Azerbaijan, Feb. 29
By Tamilla Mammadova – Trend:
Georgia introduced temporary direct flight ban from China amid coronavirus fears, Trend reports citing Georgian investment company Galt & Taggart.
"We estimate monthly tourism revenue loss and loss of arrivals' number of at $2.5 million and 4,000 arrivals, respectively, from China due to flight ban, which is expected to expire in April 2020", the report says.
In 2019, Georgia received $300 million in revenue of tourism from China, accounting for 1.7 percent of GDP and only 3 percent of total foreign source revenues.
In the last five years, revenue of foreign trade turnover from China increased by only $100 million, mainly related to increased copper re-exports.
The bulk of total inflows of revenues is received from exports, where copper re-exports hold a significant share (70 percent of total exports to China).
Therefore, the direct negative impact of China's coronavirus on Georgia is small (reduction in copper re-export will also reduce copper imports, and the final impact will be minimal), said the report.
As the company noted, Georgia also introduced temporary travel ban from Iran on coronavirus fears.
"We estimate monthly tourism revenue loss and loss of arrivals' number at $8 million and 11,000 arrivals, respectively, from Iran due to travel restrictions, which currently is introduced for two weeks," said the Galt & Taggart.
In 2019, Georgia received a total of $177 million in revenue of tourism from Iran, accounting for 1 percent of GDP and only 1.8 percent of total foreign source revenue.
According to the Galt & Taggart, in the last five years, inflows from Iran have increased by $127 million, mainly related to the tourism sector.
"Tourism accounts for the bulk of total external inflow from Iran. In 2019, 142,000 Iranians traveled to Georgia and spent $105 million," said the Galt & Taggart.
As reported, Georgia’s export to Iran stood at $71 million in 2019. The main export products are ferro-alloys, meat and wood.
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