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July-August-September, 2018 NEWSLETTER

Adventure Tourism Development for Regional Economic Growth

Adventure Tourism has grown exponentially worldwide over the past years with tourists visiting destinations previously undiscovered. This allows for new destinations, like Georgia, to market themselves as truly unique, appealing to those travelers looking for rare, incomparable experiences. Through its certified wilderness guide training programs, USAID Zrda responded to growing demand for quality adventure tourism services, the expansion of which creates immense opportunities for development, particularly in remote communities where adventure travel fuels the local economy, as well as generates income and employment. Having attended the training course conducted by the professional instructors from the International Association of Professional Canyon Guides (CIC), two canyon guides from Samegrelo – Alexander Shanava and George Tsirdava took advantage of the opportunity to participate in the internship program in the French Alps. Zrda covered 20% of the two-week internship cost with the remaining 80% paid by CIC. Once back, Zrda will provide Alexander and George with equipment necessary to start canyoning business in Samegrelo. In addition, they will be included in the promotional website for all certified wilderness guides in Georgia that Zrda intends to develop for the next tourist season. Next summer, six Zrda-supported rafting guides are also invited to participate in a 2-week internship program to take place in Europe. Overall, within its adventure guide training programs, Zrda facilitated preparation of 60 wilderness guides and instructors in canyoning, rafting, hiking, trekking and diving, all catering to the variety of experience levels. The presence of qualified instructors will enable regional camps host larger groups, boost their sales and contribute to the development of high quality adventure tourism in Zrda targeted regions, as well as recruit and coach youngsters from Zrda targeted communities to help them master new professions and generate income.

First Commercial Berry Nurseries Launched in Zrda Target Regions

“Once operating at full capacity, the Rukhi Blueberry Nursery will be able to produce up to 100,000 new plants for sale annually,” – remarks agriculture specialist Revaz Jalagonia of Agora Ltd that runs the Zrda-supported commercial blueberry nursery in close proximity to the Administrative Boundary Line with the occupied territory of Abkhazia. To-date, Zrda launched six commercial Berry Nursery Production, Plant Management and Demonstration Plots across four of its target regions having supplied them with 17,500 high-quality berry plants from certified U.S. suppliers earlier this March. To strengthen the initiative, Zrda is also providing ongoing technical assistance support from Georgian and international experts on agronomy and nursery business models. This summer, the first commercial Blueberry Nursery in Samegrelo region applied softwood cutting propagation to produce about 40,000 saplings for the local market. Since September, the nursery has been providing the locals with excellent blueberry plants.

By its second year of operation, the nursery can serve a minimum of 50 farmers per year and help to arrange planting stock for a minimum 36 hectares of blueberry plantation, with the numbers increasing thereafter. The activity is a response to local market demand for fresh berries and processed berry products that continue to outpace production.

July-August-September, 2018 NEWSLETTER

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“Zrda and CHCA gave me a unique opportunity that marked an end to the years of questioning what to do with my life. Now, I am eager to realize my full potential and start a new chapter in my life!” says a 25-year-old Julietta Meparishvili, a recipient of the Zrda-CHCA-supported no-interest loan, with a determined smile on her face. She then adds, “I feel like this opportunity reshaped my life and unexpectedly forced me into the role of becoming the main breadwinner in the family.” Thanks to the joint USAID Zrda/CHCA no-interest loan program, Julietta Meparishvili received a working capital loan of GEL 2,000 ($800) to purchase a sewing machine, apparel making tool kits and fabric for uniforms. Having met the requirements for the customized uniform order from the Ganmukhuri public school, Julietta immediately earned GEL 10,000 and a reputation for reliability.

According to the parents of the Ganmukhuri public school located in close proximity to the ABL with Abkhazia, school uniforms designed and sewed by Julietta are of top quality and the prices are lower than in-store prices. Julietta’s been sewing since she was like 12 and her greatest joy was the neighborhood children. She was always making them happy with little dresses or shirts, or Cinderella and Pirate costumes during the New Year carnivals. “It was Zrda that gave me a motivation to find a job and an interest-free loan to launch the family business. Above all, it inspired me to break through uncertainty and gave me a real opportunity to create a better future,” continues Julietta. To expand her business, Julietta plans to buy an embroidery machine and further increase profit by reducing costs.

To-date, Zrda and CHCA disbursed interest-free loans to 79 entrepreneurs, like Julietta, to support business development and income generation projects in West Georgia.

Thanks to USAID Zrda assistance, I produced around 30 tons of bell-pepper yields for sale to Georgian Agro House, one of the largest production and distribution companies in Georgia. As a new crop for the Georgian agriculture market, bell pepper production was challenging for us,” - comments farmer Mirian Chkhitunidze from Marneuli of Shida Kartli region of Georgia.

Mirian is one of the four farmers in Kvemo Kartli who received technical support and subsidized equipment to establish modern production practices for bell-pepper production. Earlier this year, Zrda facilitated forward sales contracts between Georgian distribution company Georgian Agro House Ltd. and Zrda beneficiary vegetable farmers across the target regions of Kvemo Kartli, Samegrelo and Shida Kartli.

Through its wide distribution chain, Georgian Agro House Ltd sells the agricultural produce to major hotels and supermarkets in Georgia. Earlier last year, USAID Zrda partnered with Dutch seed company Rijks Zwaan to facilitate the introduction of new pepper varieties and provide technical assistance to the selected growers. Rijks Swaan facilitated the introduction of new pepper varieties, provided technical assistance to the selected growers in Kvemo Kartli as well as contacts with exporters that are actively looking for new suppliers for these crops.

Georgian Agro House Ltd is the leading Georgian distributor company that sources entirely from the local producers and sells over 6,000 tons of agricultural products both in Georgia and abroad.

Access to High Quality Plants and Distribution Channels Boosts Yields and

Improves Quality of Production

Working Capital Loans Offer New Opportunities and Hope for ABL Entrepreneurs in West Georgia

Since 2016 Zrda’s facilitated attraction of about $1,9 million investment 62 percent off which is private sector investment.

Since April 2016, Zrda’s contributed to the creation of 889 new jobs – 480 (54%) in hospitality, 293 (33%) in agriculture and 116 (14%) in service industry – by injecting competition and economic dynamism in its target sectors and regions.

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USAID Zrda-supported Activities in Tourism

Ÿ Eight Farm Service Centers provided fee-based consultation packages and field-based laboratory services to 207 farmers.

Ÿ 17 Information and Consultation Centers completed 811 soil and foliar tests.

Ÿ 70 greenhouses and 245 open-field farmers produced and sold vegetable seedlings, flowers, herbs and vegetables to generate over $9,4 million in sales revenues.

Ÿ 12 farmers from Kvemo Kartli and Samtskhe-Javakheti high elevation communities arranged cool weather open field vegetable demo plots to generate up to $23,500 in sales revenues.

Ÿ 1, 294 vegetable, berry and beekeeping farmers trained in new agriculture technologies and international best practices.

Ÿ 43 farmers received over $210,000 interest-free loans through Zda/CHCA free loan program, boosting their income up to $600, 000.

Ÿ Zrda and APMA cooperate via AMMAR and GEF-DANIDA programs recognizing each other’s financial assistance (40%) provided to the farmers (60%) as a contribution from farmers’ side.

Ÿ Zrda and GFA, in partnership with the Georgian Farmers' Distribution Company (GFDC) and the Adjara Hospitality Group, established a mobile match-making platform “Agronavti” to fulfill local produce orders for the Adjara Hospitality Group’s hotels and restaurants. The company and its farmers living in Zrda-target areas generated $1.7 million in total sales.

Ÿ With USAID Zrda and Credo Bank assistance, Association Rural Development for Future Georgia launched www.kalo.ge - Enhanced Agriculture Platform to provide agro consultations and agro calendar, online shop and service delivery channel for agriculture products, pesticides and equipment, with an opportunity to distantly fulfil acquisition with Credo Bank’s Online Credit Purchase functionality.

Ÿ Zrda facilitated preparation of 60 wilderness guides and instructors in canyoning, rafting, hiking, trekking and diving, all catering to the variety of experience levels.

Ÿ Two canyon guides from Samegrelo participated in the internship program in the French Alps. Next summer, six Zrda-supported rafting guides are invited to participate in an internship program in Europe.

Ÿ Zrda in partnership with GNTA supported the positioning of 42 e-maps of hiking trails in Samegrelo-Zemo Svaneti region on www.wikiloc.com-search engine popular worldwide among adventure lovers.

Ÿ Meskhetian cuisine recipe book “Meskhetian Tabla” displayed for sale at Biblus book chain as the first product development initiative of the Samtskhe-Javakheti Destination Management Organization working group.

Ÿ 415 accommodation providers and restaurants/cafes in Samegrelo, Samtskhe-Javakheti, Pankisi Valley and Shida Kartli registered at Booking.com and TripAdvisor through Zrdas-supported digital marketing trainings.

Ÿ More than 16 leading Georgian tour operators explored Samegrelo, Samtskhe-Javakheti, Kvemo Kartli, and Tusheti to include the newly discovered sites into their touristic packages. As a result, value of total sales generated by tour operators and tourist destination places reached $3.2 million.

Ÿ 90 MSME guesthouses trained and 60 certified in hotel administration through the American Hotel and Lodging Association Education Institute (AHLAEI) Certificate Training Course.

Ÿ Samegrelo-Zemo Svaneti and Samtskhe-Javakheti Regional Tourism Development Symposiums held to promote regions as premier touristic destinations.

Ÿ 19 Tourist Information Center (TICs) employees from Samtskhe-Javakheti, Samegrelo and Shida Kartli regions trained to improve customer services for incoming tourists/visitors. Zrda works with four regional TICs to equip and furnish them according to international standards.

Ÿ Zrda continues supporting Chachkari Ethno Village development through planning, marketing and promotion.

Ÿ Samtskhe-Javakheti and Samegrelo regional tourism stakeholder working groups to be registered as Destination Management Organizations this year.

* The contents are the responsibility of Chemonics International and do not necessarily reflect the views of USAID or the Unites States Government.

USAID Zrda-supported Activities in Agriculture

July-August-September, 2018 NEWSLETTER