Georgia: Hotels on the Verge of Bankruptcy due to Coronavirus Risk

For several days now, the hotel industry representatives in Georgia have been talking about the risks and losses caused by the new coronavirus.

Hotels are appealing to the government to address the problems posed by the coronavirus, to petition banks and prolong payments.

Travel companies also talk about reducing tourist flows. They claim that travelers cancel reservations in various countries because of the spread of the coronavirus and demand refunds of already purchased tours. Tour operators are pointing at the current difficult situation they have to face and are appealing to the National Tourism Administration for help.

"Due to the global spread of the coronavirus, up to 90% of hotel reservations in Georgia have been canceled," the chairman of the Federation of Hotels and Restaurants, Shalva Alaverdashvili, stated after the meeting of representatives of the Georgian tourism sector, dedicated to the impact of the new virus on the country's economy.

"The tourism industry of Georgia has been one of the first to receive a blow from the coronavirus. 

"During the last 6 days, 80-90% of reservations for hotel rooms in March - April have been canceled, which means that the industry is almost on the verge of bankruptcy.

"Coronavirus is a global problem and no one is to blame, we just have to think about getting out of the situation now so that at least we don't have to fire our employees,” Alaverdashvili said.

He noted that Georgia's capital of Tbilisi has received the heaviest blow compared to regions, where the tourist season is either over or has not yet begun.

The chairman of the Federation of Hotels and Restaurants added that besides the issue of possible layoff of employees, the problem is the relationship with banks and the repayment of loans in the light of the current situation, as well as the payment of property taxes.

By Ana Dumbadze