Skip to main content

Tbilisi: hotel construction not keeping pace with rise in tourism

In 2009 the number of overnight stays in Tbilisi accommodation facilities amounted to less than 700,000. TSBC Consulting (Financial, January 27, 2014) indicated that this was equivalent to Ljubljana in Slovenia, with a quarter of the population of Tbilisi in Georgia. Tbilisi’s population is about 1.5 million.
Tourism has been one of the fastest growing and most significant sectors in Georgia since 2009. To meet this demand, the renovation of hotels and the construction of new ones have been increasing, and subsequently the overnight stays have increased. The estimated number of overnight stays in 2012 was almost 1.7 million - equivalent to Bratislava in Slovakia (with a population of about 460,000) and Riga in Latvia (population 693,000). From 2009-2012 Tbilisi’s overnight stays have surpassed Vilnius in Lithuania (population 537,000) in and Sofia in Bulgaria (population about 1.4 million). It is almost level with Bucharest in Romania (population 1.9 million) and Tallinn in Estonia (population 430,000), reports TSBC Consulting. Both Bucharest and Tallinn each have an annual tourist demand of about 2 million.
The growth rate of overnight stays in Tbilisi, from 2009-2012, is unprecedented. No city in Central and Eastern Europe has increased its hotel stays to this significant extent.


However, the supply of hotels has not caught up with the demand. Although this is good for hotels, which have occupancy rates estimated at 79% (compared with the average hotel occupancy rates for Central and Eastern European cities of 30-50%), tourists are having a challenge to find accommodation.


More hotels are currently being constructed in Tbilisi, with more planned. These are predominantly 4-star hotels. As the number of hotels rise in this segment, the more the competition will intensify for hotels to attract tourists, and their hotel occupancy rate will likely decline as a result of the hotel saturation. Small family hotels supply 70% of the tourist market and these will also face strong competition as the number of 3-star hotel chains increase.


Nevertheless, TBSC Consulting maintains that the hotel market in Tbilisi will continue to offer ample opportunities – if not for tourists, then perhaps for investors. However, for many international investors, Georgia is seen to be a small and unknown market. Current inflow from foreign investment, particularly from Europe, has been minimal. This may change as, according to TBSC Consulting, there is scope to increase supply and particularly to foster diversity in the hotel market.




Labels:

Comments

Post a Comment

Popular posts from this blog

Pir-E-Kamil - The Perfect Mentor by Umera Ahmed: book review

The Perfect Mentor pbuh  (2011) is set in Lahore and Islamabad in Pakistan. The novel commences with Imama Mubeen in medical university. She wants to be an eye specialist. Her parents have arranged for her to marry her first cousin Asjad. Salar Sikander, her neighbour, is 18 years old with an IQ of 150+ and a photographic memory. He has long hair tied in a ponytail. He imbibes alcohol, treats women disrespectfully and is generally a “weird chap” and a rude, belligerent teenager. In the past three years he has tried to commit suicide three times. He tries again. Imama and her brother, Waseem, answer the servant’s call to help Salar. They stop the bleeding from his wrist and save his life. Imama and Asjad have been engaged for three years, because she wants to finish her studies first. Imama is really delaying her marriage to Asjad because she loves Jalal Ansar. She proposes to him and he says yes. But he knows his parents won’t agree, nor will Imama’s parents. ...
1 comment
Read more

Flaws in the Glass, a self-portrait by Patrick White: book review

The manuscript, Flaws in the Glass (1981), is Patrick Victor Martindale White’s autobiography. White, born in 1912 in England, migrated to Sydney, Australia, when he was six months old. For three years, at the age of 20, he studied French and German literature at King’s College at the University of Cambridge in England. Throughout his life, he published 12 novels. In 1957 he won the inaugural Miles Franklin Literary Award for Voss, published in 1956. In 1961, Riders in the Chariot became a best-seller, winning the Miles Franklin Literary Award. In 1973, he was the first Australian author to be awarded the Nobel Prize for Literature for The Eye of the Storm, despite many critics describing his works as ‘un-Australian’ and himself as ‘Australia’s most unreadable novelist.’ In 1979, The Twyborn Affair was short-listed for the Booker Prize, but he withdrew it from the competition to give younger writers the opportunity to win the award. His autobiography, Flaws in the Glass...
Post a Comment
Read more

Sister cities discussed: Canberra and Islamabad

Two months ago, in March 2015, Australia and Pakistan agreed to explore ways to deepen ties. The relationship between Australia and Pakistan has been strong for decades, and the two countries continue to keep dialogues open. The annual bilateral discussions were held in Australia in March to continue engagements on a wide range of matters of mutual interest. The Pakistan delegation discussed points of interest will include sports, agriculture, economic growth, trade, border protection, business, and education. The possible twinning of the cities of Canberra, the capital of Australia, and Islamabad, the capital of Pakistan, were also on the agenda (i.e. called twin towns or sister cities). Sister City relationships are twinning arrangements that build friendships as well as government, business, culture, and community linkages. Canberra currently has international Sister City relationships with Beijing in China and Nara in Japan. One example of existing...
1 comment
Read more