As surprising and inexplicable for the man in the street, one of the worst nightmares for the forces opposed to the government is the stability of the national currency, known by the familiar acronym GEL, alias Lari. How come it stands so strong and unflinching against all odds?
Batumi is a vivid sample of dramatic urban change: an amazing number of functionally varying high-rise buildings with modern lines, angles, and facades, strewn all over the place, many of them under construction, spreading the city in every possible direction; buzzing entertainment and catering businesses every step of the way; colorfully illuminated electronic signs, forcefully enticing a passerby to purchase something; bars, cafes, and restaurants packed full with deep-pocketed consumers; overly busy entertainment joints; tens of tankers, dry-cargo vessels, passenger ships, and motorboats furrowing the blue waters of the Black Sea; well-equipped and comfortable beaches full of happy swimmers and tan-lovers; casinos working like crazy; thousands of dressed-up visitors on their evening stroll, speaking in numerous languages and walking along the gorgeous boulevards of the city, stretching along the beach in several lanes; endless frolicking and bustling-around kids and their parents; eateries everywhere; cash flowing with ease and pleasure.
Something unimaginable is happening in this famous port and resort city of Sakartvelo, which has never before witnessed the boom of trade and commercial efforts by both foreigners and locals in the same way. In a word, the boiling and bubbling Batumi is bustling with life, all of this propped up by crowds prepared to spend money, buying joy, delight, and happiness for themselves, saying no to spending fears and letting tight fists go loose.
Batumi is just an example. The entire Georgia is a resort place where people want to come and stay for a while, bringing with them cash-packed wallets and credit cards.
One episode of Batumi’s beach life might be enough to explain the present pecuniary boom: on one of the beaches, one queen-size beach bed with curtains around it and bolsters to relax on, including a couple of bottles of sparkling wine and some other services, costs 350 Lari a day. People are buying it without any hesitation, and there are tens of instances like this one to throw in.
That is the way Georgia’s economy is boosting, and GEL is keeping its power and energy to strengthen the Georgian economy to the point when the national currency feels comfortable serving people, ready to imbibe all available pleasures of life in the hope of earning more and spending even more next time.
Attractive geography, the government’s tourism policy, political stability, a predictable business environment, easily purchased real estate at moderate prices, and a subtropical climate with mountains nearby add to the popularity of Batumi. In addition, the hope for real estate prices to rise, the desire to have vacation homes or possess a secure asset, rental opportunities, and powerful marketing abroad all add to the popularity of the place.
Beyond all that, tourism has a magic effect of multiplying services like taxis, supermarkets, entertainment, shopping, construction, banks, cleaning, healthcare, and what not. Every tourist dollar circulates through the local economy several times.
This is all part of the current reality, but Batumi has an even stronger prospect of becoming a truly international port and resort place thanks to advantages like its strategic location, connections to the Caucasus and Central Asia, Sakartvelo’s role in east-west trade corridors, lower prices, relatively easy access, a unique mix of sea and mountains, and growing infrastructure.
However, the challenges are no less noteworthy: competition from ports in Turkey, Romania, Bulgaria, and Russia; a limited hinterland compared with major European ports; geopolitical uncertainty in the Black Sea; a shorter beach season; transportation capacity issues; and urban planning challenges.
As a result, Batumi is likely to remain important regionally. Batumi could become Georgia’s tourism capital, which is a vital source of foreign currency supporting the Lari, although there are benefits as well as risks.
Jobs, higher incomes, tax revenues, improved infrastructure, international visibility, and increased foreign currency earnings could be thought of as assets. Property bubbles, environmental damage, congestion, overbuilding, and dependence on tourism might sound like liabilities.
Yes, the scale of construction in Batumi impresses mightily, but the success of a growing city depends less on how many towers are built than on whether the city can provide good infrastructure, affordable housing for residents, environmental protection, and a diversified economy that extends beyond seasonal tourism.
Let us hope that the purposeful, dynamic development of our beloved Batumi never comes to a halt for some unlikely reason that could occur anytime in this unstable world.
Op-Ed by Nugzar B. Ruhadze
