Papava, Vladimer2019-11-142019-11-142018III International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2018, pp. 291-293978-9941-13-764-8https://dspace.tsu.ge/handle/123456789/4651. საქსტატი (2018) საგარეო ვაჭრობა. საქართველოს სტატისტიკის ეროვნული სამსახური, http://www.geostat.ge/?action=page&p_id=133&lang=geo. 2. Charaia V. (2018). FDI Motivation and Benefits for Georgia. Ekonomisti, No. 1. 3. Kakulia M. (2007) Labour Migrants’ Remittances to Georgia: Volume, Structure and Socio-Economic Effect. Georgian Economic Trends, October. 4. Papava V. (2010) The Economic Development Complex in the Black Sea Area: The Impact of the Global Financial and Economic Crisis. Xenophon Paper, No. 9. Athens, ICBSS, http://icbss.org/media/113_original.pdf. 5. Papava V. (2017) Necroeconomics of Post-Soviet Post-Industrialism and the Model of Economic Development of Georgia and Russia. Journal of Business and Economics, Vol. 6, No. 5, http://www.academicstar.us/issueshow.asp?daid=1197. 6. Papava V. (2018) Georgia’s Economy in a “Tourist Trap”. Rondeli Blog, July 25, https://www.gfsis.org/blog/view/854. 7. Samson I. (2008) Medium-Term Prospects for the Georgian Economy. Georgian Economic Trends, February. 8. Silagadze A., Zubiashvili T. (2016) Foreign Direct Investment in Georgia. International Journal of Arts & Sciences, Vol. 9, No. 2. 9. Shmidt M. (2007) Foreign Direct Investment to Georgia: Can Active Investment Promotion Policies Make a Difference? Georgian Economic Trends, January.Georgia’s economic model is based less on increasing production and more on stimulating consumption. In 2017 imports have been exceeding exports by 3.8 times, and the share of imported goods in the consumer basket, as well as the food basket, consistently reaches about 80%. A knowledge-based economy must be declared by Georgia’s government a priority. It is also compulsory for the government’s vision to focus on developing the real sector of the economy through its industrialization.geeconomic model; tourism, consumer paradox; tourist trap; knowledge-based economy; industrializationArticle