VAT and excise tax breaks will give incentives to the business operators, - Vato Asatashvili, the founder of Heliski Georgia, told BMG about this while talking about the state's role in promoting the tourism industry.
"The state must somehow decline the annual budget revenue of GEL 1 billion, which provides excise and VAT tax break. This will lower prices and give incentives to business operators. Also, short-term financial resources should be accessed and not subsidized, which is a disaster. I mean instant funds, which will be available during the season," he explained.
According to Vato Asatashvili, the state needs the so-called "fastening the belts too".
"We know the cases of overmanning, as well as pointless subsidized projects. The tightening of belts should encourage such vulnerable sectors as tourism. This process should be at least seasonal by the end of September. Because the operators would be able to employ a little more people and reduce the outflow of staff from the industry," - said Asatashvili.
He also talks about a specific scheme by which the state can help the tourism business.
"If the state is able to become a guarantor of small operating credit products, which will be an overdraft for the tourism industry at the beginning of the season, these are the funds that companies have to accept in the form of deposits at the beginning of the season, but have not been able to receive. As a result, they try to work without any financial resources. Today, the state can compensate for these lost deposits in the tourism industry and the banking institutions can get them back during the next season," Asatashvili said.
