Logo

Some topical issues of risk management in Georgia In the tourism industry

Photo
David Vekua

,Associate Professor of Guram Tavartkiladze Tbilisi Teaching University, Doctor of Economics, ORCID iD: https://orcid.org/0000-0003-3933-7746 ; E-mail: David.vekua@yahoo.com

ცერცვაძე.jpg
Archil Tsertsvadze

Professor of Georgian Technical University, Doctor of Economics, ORCID iD: https://orcid.org/0000-0003-4588-640X . E-mail: atsertsvadze@yahoo.com

Keywords: Tourism, Risk management, Insurance, Insurance premium, Loss minimization, Venture capital, Insurance market.

Abstract

Peer review method: Double-Blind

Accepted: March 14, 2022

Published: April 04, 2022

Original scientific article

DOI: https://doi.org/10.52340/tne.2022.17.1.03

The essay discusses some current issues of risk management in the Georgian tourism industry. There are proposals which presented to improve the risk management process in this very important sector of the Georgian economy, will help to improve the safe environment and increase investment opportunities.

The paper analyzes the immanent nature of risks in the sector, internal and external risk factors. The main causes of financial risks are studied, namely: lack of working capital and credit, incorrect investment policy, inflation, increased financial liabilities, declining profitability, seasonality of tourism facilities, unqualified staff, the risk of selecting tour operators and others.

There are the statistical indicators of the type of travel insurance of Georgian insurance companies for the last three years which are analyzed, namely: number of policies issued, insurance premiums attracted, reinsurance premiums, reimbursed losses and the share of travel insurance in the structure of the insurance market.

Risk insurance is considered as an effective risk management tool in the Georgian tourism industry.

There is proposed some suggestions for minimizing losses and reducing or neutralizing the probability of risk, namely: diversification of investments, cost limitation, efficient turnover of working capital, attraction of venture capital, etc.

The New Economist N1, (2022), Vol 17, Issue 1

axali ekonomisti 1-2022 kda (1)-11.jpg
Published Date:

11/04/2022