MEASURING THE SECONDARY ECONOMIC IMPACT OF COVID-19 ON THE TOURISM INDUSTRY OF GEORGIA

Abstract

Georgia experienced a substantial increase in the number of international visits during the last few years, boosting interest among the locals looking for new business opportunities. The optimistic expectations of future tourist flow led to an enormous amount of investments, mostly in the hospitality industry. The reality did not meet expectations after the world pandemic deteriorated the tourism flows leading to catastrophic losses for the tourism industry all over the world, including Georgia. This study employs a macroeconomics analysis tool - input-output model to identify the secondary economic effects of decreased tourism flows caused by COVID-19 in Georgia.