Hotel business in Georgia (ABSTRACT)

Fati Mamiashvili

Hotel business in Georgia is especially profitable in large cities and resorts areas. Key warrantor of their success lies in peace and politico-economic situation of the country.

Hence, foreign visitors to Tbilisi often choose hotels in accordance with the following principle: safety system, electricity, water supply, and heating system. Naturally enough, they are more trustful towards hotels of international network like “Marriot”, “Sheraton”, etc. There are a number of public hotels in Tbilisi: some of them have been closed, ruined or turned into a temporary accommodation place for refugees. As for private sector, its incomes are much larger for two reasons: price regulation is freer and financial control of private hotels by a state is comparatively complex.State-funded local hotels have small profit, and they are in expectations of investors. Private hotel owners do not make a public report of true incomes. Apart from major drawbacks of the tax code and, in general, economic policy, information on Georgian hotels is hardly spread anywhere outside of Georgia. One can hardly find a Georgian web-site with such kind of information. Nor there are any local hotels data on foreign web sites. Of Caucasian republics we could find only an Armenian hotel “Araks” on one of Russian web- sites.