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Ineza Vatsadze
DEVELOPMENT OF RURAL TOURISM BUSINESS AS A REALIZATION FACTOR OF GROWTH CONCEPT OF INCLUSIVE ECONOMY

Summary 

Recently the Georgian Government made effective steps with a positive impact but still it is not enough to make dramatic changes in improvement of the social-economic situation of the country. Unemployment and poverty is still a challenge for the country.

Therefore it was necessary to elaborate new approaches for solving these problems and to create the “Strategy on Social-Economic Development of Georgia (Georgia2020) in 2014.” This strategy is an important innovation of the macro-economic policy of Georgian Government. 

The idea is to focus on increasing support for inclusive economy. It implies engaging more population in the process of increasing economy. Based on this, economic policy of the country should be focused on developing the sector of the industry, which has more potential of employment and less hindering processes. 

The main purpose of my paper based on the reviewed literature resources is to show that developing rural tourism is one of the promising tools of realization of the concept of inclusive economic growth.

Georgian government in the growth of inclusive economy suggests involving all social layers in creating GDP and equal distribution of the wealth obtained as a result of appropriate economic growth.  

The experts have different approaches to the concept of inclusive economic growth.

One group of specialists fully support declared position of The World Bank experts.  According to which,h inclusive growth is one of the models of economic growth which demands involvement of wide range of all social layers in the process of economic growth and fair distribution of received wealth  using the established standard instruments.

Another group of experts think that inclusive method does not assist economic growth; on the contrary, it delays the process and the main tool of fair distribution of the common wealth is to increase taxes for the large tax payers, expropriate their property and distribute among the poor people and etc.. Such kinds of activities are truly disincentive and damaging market economy.

We think that those who support inclusive economy have more arguments to prove their position. Based on this our objective is to prove that it is possible to employ rural population on the basis of development of rural tourism for achieving effective results in social-economic growth within the region and throughout the country.

Nowadays Rural Tourism is recognized as a dynamic, rapidly growing and promising direction all over the World, which is already very popular in the west European countries. WTO has considered rural tourism as one of the five main developing strategic directions of tourism until 2020. 

Studied literature resources truly approve that development of rural tourism can be recognized as an achieving tool of Inclusive Economic development, - as a main concept of modern strategy for Georgian social-economic development.

This will enable us to rationally use rural resources, to do rural business spending few finances, to get quick and effective turnover from invested capital and to achieve planned social-economic results - such as increasing jobs, employment and decreasing poverty level. 

Keywords  : Rural Tourism, Inclusive Economy,  Inclusive Economic growth, increasing jobs