Hospitality Industry Assessment in Georgia

Commissioned by the International Finance Corporation (IFC), to the project entails an assessment of the hospitality industry in Georgia. The objective of doing so is to overview the current trends and dynamics of this industry in Georgia to determine regulatory and sector-specific challenges, along with market bottlenecks hindering investment opportunities. Leveraging this comprehensive assessment of the tourism sector in Georgia, the project sets out to identify potential areas for IFC engagement and intervention, ultimately providing clear short-, medium-, and long-term recommendations for actionable interventions to unlock Georgia’s potential in the hospitality industry specifically and the tourism sector as a whole.

Generally, in pursuit of the project’s goals, PMCG is completing the following tasks:

• Analyzing trends in international and domestic tourism, including spending and preferences, in Georgia;
• Evaluating the economic contribution of tourism to Georgia’s GDP and employment;
• Identifying and mapping key players in the tourism sector (e.g., government agencies, industry associations, businesses, and investors);
• Examining the financial health and performance of major tourism businesses;
• Mapping sub-national tourism clusters and destinations;
• Assessing the current regulatory framework for the tourism sector and identifying potential gaps therein;
• Picking out and investigating non-regulatory barriers impeding tourism’s growth in Georgia; and
• Developing actionable policy and investment recommendations for the IFC to boost the competitiveness of Georgia’s tourism sector.

In the course of preparing the first draft of a report on the hospitality industry assessment in Georgia, the following activities are being implemented:

• Desk Research – The assessment begins with an extensive desk research phase, during which macro data and trends relevant to the tourism sector in Georgia are gathered and analyzed to gain insights into the industry’s overall performance and dynamics;
• Qualitative Research – Here, primary data are collected through interviews with relevant stakeholders including representatives of the public sector destination management organizations (DMOs), private sector associations (such as the Georgian Tourism Association and the Georgian Hotel Restaurant and Café Federation), and global hotel chains, as well as investors; and
• Recommendations – Taking a holistic approach, PMCG will combine qualitative analysis and insights gleaned from the desk research to develop actionable research-based recommendations addressing challenges and opportunities related to policy, as well as with regard to the private sector and investment.

In addition, the following work will also be undertaken:

• Obtaining IFC feedback and incorporating this into the final report;
• Preparing engaging materials for discussions.

Ultimately, PMCG will issue a final report to the IFC, outlining market constraints, key players, important market dynamics, and investment trends, and essentially providing a broad roadmap for IFC interventions to develop the hospitality industry in Georgia.