Georgia’s Deposits of Preserved Gold

Nino Arveladze

Today Georgia’s export potential has become a subject of serious discussion. Yet, what wealth do we possess, how can we rouse the world market’s interest and what place should we have on it, by what can we strengthen lari, from where should we expect currency inflows and how can we repay rather serious foreign debts?

These questions are not new. There had always been an abstract discussion till Russia closed its market for the second largest item of our trade balance – wine and wine raw material export. So, it is interesting what kind of situation is being shaped as to the foreign trade balance and the export basket.
Scrap metal has the leading position that is characterized by a decreasing trend, at the end of 2005 a serious increase was observed in wine and wine raw material, as well as dried nut and nut export. In 2006 most of this is under threat, there will be a serious decrease both from the viewpoint of wine raw material and mineral waters, and the unprecedented trade deficit that took place in 2005 (minus 1142 million USD) will be aggravated still more.
It is clear that the country will not become a techno-park in a few days and that our re-orientation from Russia to Europe will take rather a long time. At the same time, service export market is characterized by growing and seriously convincing trends.
According to this chart, incomes from service export have increased by 30.6% against the fourth quarter of the last year. Out of this, tourism made up 60.9 million USD, it is almost equal to the total transport indicator. In spite of the fact that in the final quarter of the last year Georgia’s commodity and service balance deteriorated by 46.7%, there is a serious liquid reserve here. And this reserve is the local curative tourism, for which there is a great demand both in Georgia and abroad. What is most important, it has no large investment capacity in comparison with industry and can make a profit in a short period of time. Here implied are Tbilisi balneal resort, Tskaltubo, Akhtala, Tsaishi,Abastumani, Nunisi, etc. To what extent do we recognize this sphere as a priority one, what is going on in it and what should be done for its revival and turning of a real export resource into a real export?
Nika Saakashvili, the Director of Tbilisi Balneal Center
– I shall begin the conversation with a trite and standard phrase, which you may have often heard and will hear many times as well but with the difference that it will have value – Georgia is country of resorts. This statement really corresponds to the situation existing in Georgia. However, today it is difficult to speak about utilization of the resorts. Of course this concerns the international arena and service export, since in 1990s the basic material and technical basis was ruined. In some cases it was made artificially, in other ones – in a natural way, and sometimes in view of combination of subjective and objective reasons. In this situation the Balneal Center might have suffered the same fate, but I want to emphasize that before I became the director the collective put up heroic resistance to the authorities of that time, in order to save it from complete ruining. Many people are irritated by the word “heroic”, but it is a reality. I state this with full responsibility, after seeing the photo materials the difference between the former and the current situation is obvious. In 1999 I took over this establishment and joined the collective struggle for its retention; now, we can say without any boasting that reanimation of Tbilisi Balneal Resort took place, and I want to emphasize it. Though this establishment was lifeless from economic point of view, it has strengthened economically thanks to a selfless work of our team. When I came here, the establishment’s monthly income did not exceed 100-150 GEL a month. I say nothing of the salary was paid on paper, it made up about 90 tetri only. The employees had not received their salary for nearly 15 years. In short, there was a catastrophic situation and everything was going towards an artificial bankruptcy, and the purpose was the establishment’s elimination. It can be said that we had an escape. Now I can say that this establishment can be considered as one of the leading organizations for further development of balneology. In general it includes the development of resorts and curative health-improving tourism. Medicinal- health-improving tourism is a very interesting matter. There is the following name on our establishment’s signboard – “Tbilisi balneal resort, Georgian scientific-practical center of balneology, physiotherapy, rehabilitation and medicinal tourism.” It is a symbiosis of two establishments – the former “All-Union Institute of Balneology and Physiotherapy” and “Scientific-Practical Institute of Rehabilitation”, which was ruined, but we managed to restore it in a different form, i.e. in complex with the balneal resort. I would like to add that it is a scientific-practical center and not an institute. Laboratories were added to all the departments, the scientific laboratory has an appointed director in the field of science, that receives a fixed salary. In general, everything comes to finances. We are on self-finance. It was the first establishment in the Soviet Union where reception of patients took place on the basis of self-finance.
– How many patients would it be possible to receive at one time?
– According to my information, 1000-1200 a day.
– How many days does one course take?
It depends on the disease. That is why it is not justified to speak about duration of a standard course. The diseases of bones and joints, central nervous system, women’s diseases, gastrointestinal disturbances require different treatments. In general, all diseases, besides oncological ones, that have chronic character can be treated at our resort. All diseases have a definite duration and specificity.
– Is water the basic therapeutic agent?
– There is no monotherapy here. It is not only water and mud. Often the matter concerns a complex treatment. Often – monotherapy, where mainly natural resources are used, for instance: water, which is unique from the viewpoint of its composition, curative mud from Kunisi and Akhtala, physio procedures, therapy with minimal medicament dose, also massages, therapeutic physical training and, what is most important, diagnostics. Today we carry out diagnostics by means of modern equipment.
– What countries did patients come from?
– I do not know how correctly the reform of public health service was implemented in 1990s. I think that there were a lot of omissions in it. Probably the idea was right but I did not agree to it in many respects. I think that the principles of insurance medicine were to be formulated first. Now much attention is paid to insurance companies, insurance medicine and state insurance systems. It was not so then. By the way, the Soviet time experience of Tbilisi balneal resort was used as a model of public health service’s reform in relation to financial relations. As to the number of arriving people, it was not limited in the literal sense of the word. There was the following status during the Soviet period – “All-union sanitary establishment”. As you know, relations with foreign countries were difficult at that time. Mainly people from soviet republics came to be treated here. They were Russia, Kazakhstan, Ukraine, Azerbaijan, Armenia. There is statistics confirming it. Unfortunately, all this was left in the past. Today our great wish is to revive balneology and, at the same time, elements of curative health-improving tourism. If we consider this issue from financial point of view, we shall be able to lay one big brick in the matter the country’s economic development. At first sight, the development of one resort is not very important. But the issue is serious, it can cause the revival of Georgian economy. I, personally, along with my associates, aspire for it. Let us consider a very little scheme, which is an amateurish from an economist’s point of view. Our establishment is located in the centre of the city, in the place where our city was born. Here there are those sulphuric waters, in which, according to the legend, a pheasant drowned. It is already a history. From the viewpoint of tourism, starting of its development from here is purposeful. The second question I would formulate as follows – what is tourism? There are many explanations of this term. In my opinion, tourism is prevention and rehabilitation. Let us say that we take part in a tourist arrangement. Each person has a prevention period when he wants to retain his health. People ski, swim, arrange excursions, relax psychologically. This is prevention, they try to overcome stress situations. But there is also another choice – a recovered person who needs rehabilitation. It can be stationary or dispensary one. During this period, active rehabilitation is most justified. And this is a kind of tourism – dosated walk, quieting of the nervous system, examination, getting of intellectual information, physical conditioning and sanitation. In short – tourism can be a combination of prevention and rehabilitation. It can be of many kinds. What does a tourist live on during his tourist activity? – Climate, soil, water. One journalist asked me how often it is possible to arrange exhibition related to tourism and if there is a necessity to hold them every year. My reply was as follows – it is necessary to do it not every year, but every day. Of course, he was very surprised. In Georgia there is a possibility of development of many kinds of tourism. Let us start from curative health-improving tourism, devote a few days to its exhibition, invite people and make a proper advertisement to it. Wine tourism is relevant, as early as two years ago I actively raised this question. However, there was no response. A lot of arrangements are held, but I am afraid that it is a bit late. Besides, it would be better if it were done in a different way. At the same time we should start thinking about the development of tourism in this direction. We all know that Kakheti, according to its historical monuments, is a tourist country. There is a great number of monuments there. Let us take tourists there, show vines to them, tell them about vine’s history, show them the technology of wine-making and the content of wholesome substances in grapes. It is necessary to build tasting room of light construction where a person can go to and rest. In short, a tourist should have a wish and conditions to spend his money. This is money obtained by work, the gifts of nature and will be useful to the country.
– It is calculated that a tourist spends almost a thousand USD a week.
– Yes, he does. I shall tell you the following in relation to these calculations. One American family consisting of four members annually goes to Africa to sulphuric waters, where it spends 40 000 USD in 10 days, i.e. this very costly and valuable for them. In Israel a few minutes of sulphuric bath cost 30 USD. What the country has is valued. Unfortunately, it is not valued in our country yet. Fortunately, I see the prospect that it will be valued. It was really valued till 1990s. In this case I do not make a political assessment.
– You mentioned Akhtala, i.e. you have relations with it.
– We bring mud from Akhtala and Kumisi.
– What is Akhtala’s mud?
– It is a mass obtained from eruptive rock, which contains singular chemical elements. It is in direct relation to treatment of a number of diseases. The matter does not concern preventive measures. Solving of the infertility problems takes place by means of Akhtala’s mud. Unfortunately, the institutes that work on infertility problems use our resources to a lesser extent and have switched to medicaments. I believe that better results could be obtained in case of a complex approach. According to its composition, this mud can be freely compared to the Dead Sea’s minerals, and Ukrainian curative mud, for the sake of which a lot of tourists go there. It is a big source of making money. Our mud is not any worse then theirs. It is possible to cure a lot of diseases by means of it. As you know, prostate gland is a man’s second heart. It is No 1 problem among men. Prostatitis is cured after 20-25 seances. It is monotherapy without drug therapy. On TV there is always advertisements of some doctor or drug that offer the ways of solving this problem to men. This all is very expensive. But our establishment has the lowest prices. Psoriasis is also a big problem. We can cure it as well. In present market economy conditions, everything should be based on business. Existence on self-finance is impossible.
– Is there an establishment similar to the balneal resort in Akhtala now?
– There are no similar ones. But there is an establishment that functions only in summer and for local population only. It has a good and energetic director. We are cooperating.
– How does renewal of this mud take place?
– It coming out all the time, and in some place of Georgia it is boiling. Many people in Georgia do not understand the importance of mud and consider it seriously, so I take it very hard. We have a huge wealth and we do not appreciate it. But the world has quite a different approach it. Let us go back to tourism again. In our capital people practice several religions. It has historical baths, fortress. It is already a museum. And in the center there is an establishment with unique natural curative resources. These facts witness that curative health-improving tourism should develop in Georgia. In this region there is a hotel in which can both live and receive treatment.
– How many resorts of this kind are there in Georgia?
– In Kumisi there is only mud, which has become a bit spoilt, since one should not breed fish where there is mud. But they do it there. There was a period when fish exhausted the mud. One should foresee everything. One should not have bored in Saburtalo and look for sulphuric water, which took place during the communist regime. As a result the balance was broken. There are similar waters in Nunisi. There is a sanatorium there. In Tskaltubo there is radon. This water is a bit different. From the viewpoint of radiation, it is more active and needs careful application.
– Does Tskaltubo fit with the scheme which is called curative resorts and export potential?
– Tskaltobo should be a locomotive with its unique radon waters, which has serious preventive, rehabilitation and curative properties. This is natural laser therapy. But, unfortunately, it has been ruined. There is Satapliis Mgvime at our disposal, where we treat the diseases of respiratory organs. Now its restoration has started. Probably, the first patient will be sent there this year. It still needs repairs. It is really something unique, where a patient from any country of the world can be brought. If a patient has fits of asthma every day, probably, after being in the microclimate under medical supervision, his fits may recur only once in six months or once in a year, and will be benign. This a kind of curative tourism. Georgia has many riches. One can speak about them endlessly. We created an “Association for restoration and development of Georgian resorts” and set the following tasks:
1. Assistance in restoration and development of Georgian resorts.
2. Advertising of Georgia abroad as a resort country.
3. Inclusion of Georgian resorts in the international resort flow.
4. Examination of Georgia’s resort places. Examination – popularization of curative properties.
5. Fitting out of Georgian resorts with modern medical equipment. Inculcation of a modern resort management system. Promotion of reforms.
6. Preparation of various recommendation works. Implementation of exchange programs for administrative-technical personnel.
That is what we have implemented. Since we have no financing, the Association’s first step was attracting of the sums, by means of which a partial rehabilitation of the resort took place. This money was received from charity and was not invested by the government. This Association, along with the Center of Balneology and one of scientific groups, also managed to prepare projects of rather serious changes in the Georgian legislation having to do with resorts and tourism. The project is being improved and will be submitted to the parliament. Changes in the legislation will help us in overcoming of the problems we are speaking about. The Law on Tourism and Resorts was written in an amateurish way. We have corrected it. I shall draw you an example for understanding of the basic correction principle – in Tskaltubo all baths in which water is running have been sold. There is no patient treatment system there any more. People pay money, enter and sit there as long as they wish.
– And the water there is radioactive.
– Of course. Undesirable processes in the body can be initiated. Its application without a detailed examination is harmful to health. “Sairme” water is also harmful if it is not used as required. The water at Tbilisi balneal resort is sulphuric water of the blue bath and lying in it for hours drinking beer may lead to death. That is why those people who buy this kind of baths should take into account that medical supervision is necessary. The institution of physicians-balneologists used to exist before – cardiologists, gynecologists, dermatologists, etc., they knew the specificity. This is a major problem now. The changes that are to be introduced in the law are related to it.
– Are there up to fifteen serious units in Georgia that can be called a resource, and which we can consider as the export potential’s center of this kind?
– Tbilisi balneal resort should be at the head of curative health-improving tourism and balneology in Georgia. It should also become a scientific practical center of physiotherapy, rehabilitation and curative health-improving tourism. It should carry out medical personnel’s training. We have already created a training group. As soon as the law is adopted, their retraining will start. In no circumstances the existence of the directing organization should be ruled out. It is clear that there is the Department of Resorts. However, it has quite different functions. It is policy making.
– The Department of Tourism should be a corner stone for Georgia.
It should. If the changes that we submitted are adopted, the direction establishment will be founded, which will be in charge of the issues related to balneology and curative tourism in Georgia. Methodological management should be implemented in this sphere. It cannot be done otherwise, since this sector will not be developing. I repeat once more that the Department of Tourism is a different structure. It is ideology and policy making. Our establishment should be a practical one giving recommendations, since professionals worked, work and will work here. The drain of physicians-balneologists has started. Some of them died, others changed the place of employment. There is a threat that in the near future there will be no physicians-balneologists in Georgia. We clearly see it. I had a conversation with a newly appointed rector of the Medical University, Gia Menabde. I explained to him that this sphere should be revived in Georgia and it needs specialists. A department was established where balneology, rehabilitation and curative health-improving tourism will be one of the main directions.
– Does seasonality apply to these resorts?
– It can be said that it does not.
– Thus, Georgian curative resorts can receive 500 000 tourists a year.
– It is difficult to say. In conditions of a correct investment program and promotion they can receive even more.
– Does Georgia have the resource for that?
– There is no doubt that it does. If Tbilisi balneal resort only received 1000-1500 patients a day, just imagine how many patients Tskaltubo huge resort will be able to receive.
– Thus the number is approaching one million. In conditions of good investments the resort will be more capable of functioning. Can this kind of tourism attract a million of tourists to Georgia?
– At the end of 1980s 4.5 million tourists came to Georgia. Half of them came for curative tourism purposes.
– Let us say that 2 million tourists came here and spent 1000 USD. It is 200 million of export revenue for the country.
– As a balneologist I tell you that tourism and balneology in Georgia should be considered through the same prism. There is an amateurish approach even in the Department. They speak of tourism only. They refer wine, curative health-improving and mountain ski tourism to prevention. That is why all the roads lead to Rome. This is a medial sphere. Speaking of calculations we have to take into account that we should promote balneology along with tourism. They say that Georgian resorts are not in such condition so that we could speak of the development of balneology. This is ridiculous. Balneology does not mean buildings. With time it will be settled as well, since the infrastructure should develop.
– I agree with you. When we speak of tourism development, it does not mean that we shall take a tourist to Kobuleti sea-front only, since it will not be better than the Mediterranean Sea shore. We should show him our riches. If the approach changes and a donor finds out about our treasure, he will start thinking otherwise.
– We have wonderful Abastumani. According to my information, there is nothing similar in the world. There is plenty of O3 there. That is why patients with tuberculosis are cured there without any drugs. However, now it ruined and no one pays attention to it. Any patient with tuberculosis in the world will pay a large sum of money for treatment in Abastumani.
I shall draw you a simple example, in introduction of changes to the tourism and resorts legislation we had to do it in a roundabout way. And again because this establishment is not promoted. Though it has a large historical, necessary and intellectual potential.
In conditions of current urbanization natural factors are like a balm which is sold and money is received.
– In the export basket we sell saltpeter, scrap metal, the amount of which is decreasing. There are problems with wine. We also sell fruit and curative herbs to Germany. We should learn to pack and export. Georgia should make a promotion of “Made in Georgia”. We should convince the investors that it is possible to earn money in Georgia. The matter concerns the investments of more than 500 million. Private interests of our businessmen are limited to house construction. The Department of Tourism should look at everything what we have just talked about from the viewpoint of serious investments.
– As early as in 1999 when I came to work here, the first question that I raised was that I asked elementary attention from the government, by means of which I would have brought more incomes to Georgia than beer and Coca-Cola. Let the government invest money. Any establishment or hotel can be sold.
– What should the government invest money in?
– It should invest money in the development of such establishments as ours. An ordinary hospital can be sold. But is the only one in which everything can develop in a harmonious way. If the government invests 1 GEL in the development of our infrastructure, it will get 5 GEL in a short period of time. This is not an exaggeration. One should not be a great economist to know it. Balneology and tourism is the sector which remains balneology and tourism in any country and under any regime. This is one of the levers of the country’s economic development.
– The sate should create a program for curative policy. By 2007 10 million GEL should be invested. Maintenance and rehabilitation of resources, institutional research and training will be the direction. Something will happen to find funds in 2007 budget for this purpose.
– Retraining of the personnel should take place, so that everybody could render first aid.
– Our export resource does not have much to compare with it.
– I emphasize that balneology should develop along with tourism. It should become a priority in the development of the country’s economy. A complex program should be elaborated with the purpose of creation of both the infrastructure and technical conditions and retraining of physicians and personnel, as well as for achieving of international promotion and marketing.
I believe that this issue, as a fundamental direction of the export potential, should be considered at a special conference. It will help in creation and implementation of the state strategic plan.

Tbilisi Spa Resort

Tbilisi Spa Resort is included in the group of Tbilisi resorts. It is situated in the south-east part of Tbilisi. The resort’s territory (along with dwelling houses located on it) is 400 hectares. In the north-east and east it borders upon the Mtkvari river and “300 Aragveli” garden, in the west and south-west Tbilisi – upon botanical garden, and in the south – upon Tabori height and Krtsanisi. The resort’s relief is a part of Tbilisi depression (at the height of 406-522 meters above the sea level). The territory is rich in gardens, squares and parks, among which the Central Botanic Garden of the Georgian Academy of Sciences is particularly notable.
Here the winter is warm, blanket of snow is unstable (average temperature in January is + 0.90C). The summer is very warm, sunny and dry (average temperature in August is + 24.20C). Annual rainfall makes up 555 mm. Relative humidity – 66%. The duration of the solar day – 2150 hours a day; as a rule, there are no strong winds.
Tbilisi mineral, sulphuric, warm springs are known since ancient times. According to their chemical composition, the waters are referred to chloride-hydrocarbonate and hydrocarbonate-carbonate-sodium chloride ones with low mineralization (0.3-0.4 g/l). The total amount of sulphides in it ranges within 10-20 mg/l. The springs’ daily flow makes up 800 thousand liters.
Tbilisi Spa Resort is functioning during the whole year. Patients are attended at balneo-physiotherapy clinic, therapeutic mud-bath and medical-diagnostic department of the resort, which is fitted out with up-to-date diagnostic equipment.
Now the resort is united with the Georgian Center of Balneology, Physiotherapy, Rehabilitation and Curative Tourism and is a strong medical health-improving unit, on the basis of which the State Medical Academy’s Chair Balneology and Physiotherapy and the Association of Restoration and Development of Georgian Resorts are functioning.