Georgians hammered by Russia, Ukraine problems, potentially violent protest planned

Georgians hammered by Russia, Ukraine problems, potentially violent protest planned

The former Soviet republic's tourism industry is crumbling as tourists struggle with their own economic problems in nearby Russia and Ukraine, and it could result in unrest.

Tourism in Georgia is crumbling to pieces, and it’s having a devastating effect on the economy.

Georgia, which is a mountainous nation on the Russian border in the South Caucasus, relies on exports and tourists who seek out the mountains and beaches that the country has to offer, according to a Fox Business report.

The report highlights a 64-year-old woman who spends her pension on medicine and relies on sales of cheap jewelry to tourists in the market who come from Russian and Ukraine. With visitors shrinking due to the economic crisis, she is struggling to make ends meet.

Those tourists she had relied on so heavily are enduring their own economic struggles, and it’s resulting in grave effects on the Georgia economy.

The lari, Georgia’s currency, has declined by more than 20 percent against the U.S dollar, and the nations where tourists come from haven’t done much better: Ukraine’s hryvnia has lost 60 percent of its value, and the Russian ruble has declined 50 percent.

Economic tensions are likely to drive a protest today in the capital of Tbilisi, and there are concerns the protest could get violent due to a fierce political divide in the government.

Georgia has a complicated history as a former part of the Soviet Union. The country was created with the dissolution of the Soviet Union in 1991. Georgia voted for its independence then, but still keeps its close ties to Russia and the Ukraine — a difficult situation now that the two countries are in conflict over Crimea. That conflict has resulted in sanctions against Russia, which along with sinking crude oil prices has further hammered the Georgian economy.

Imports are now more expensive due to the falling lari, but it has declined at a slower pace than the Russian ruble in the past year, which has made exports to Russia much more difficult. The wine industry in the country has been heavily impacted by the situation.

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