Hotel business withstanding tourism downturn

The recent development of the tourist business in Georgia has engendered growth in the hotel business. Despite the August events, there are not yet any visible signs of a hotel business crisis in Georgia.

According to data from the Department of Statistics, in 2007 Georgia had 324 hotels and guest houses. Of these only 7.4% belonged to the state, the rest being private. In 2007 Georgian hotels hosted 282,361 guests, of which 63% were Georgian citizens. In 35 of these hotels however more than 8,000 IDPs are now located.

Overall it could be stated that continuing tourism development might provide a further boost to the hotel business in the country, but the administration should facilitate the recovery of the international image of the country, which was damaged by the August events.