IMPACT OF PANDEMIC ON THE HOTEL BUSINESS IN IMERETI (GEORGIA)

Keywords: pandemic, tourism, hotel business, quarantine zones, Covid hotels

Abstract

The coronavirus (Covid-19) pandemic is the global health crisis of our time. Every day people lose their jobs and income. The World Health Organization estimates that 25 million jobs could be lost. The pandemic has caused serious damage to the tourism industry. International traffic statistics decreased by 74%.
One of the businesses that has been severely affected by the pandemic is the hotel business. More than 75% of which suffered significant revenue cuts and 46% of hotels and restaurants had to lay off staff in full.
There are 262 accommodation facilities in Imereti, where 1179 people are employed. Studies have shown that the number of employees in all hotels has been significantly reduced, while 10% of small hotels have closed altogether. Overall, from the first wave of the pandemic to the survey period, 65.8% of hotel staff were laid off (free leave was granted): small hotels reduced service staff by 71%, medium-sized hotels by an average of 65%.
Hotel revenue for the first 10 months of 2020 decreased significantly compared to the same period in 2019 (reduced by 75%).
It was found that due to delays caused by the coronavirus, additional financial resources were needed to save the business and 34% of the hotels applied to financial institutions.
The state is trying to support small and medium-sized businesses with measures such as deferral of rent, subsidies, deferral of taxes.
Quarantine zones and coveted hotels were opened in a number of hotels, which helped maintain employment and income for sector representatives and people employed in the sector.

References

UNWTO World Tourism Barometer and Statistical Annex, January 2021. Retrieved from https://www.e-unwto.org/doi/abs/10.18111/wtobarometereng.2021.19.1.1

Service Statistics, National Statistics Office of Georgia (2021). Retrieved from https://www.geostat.ge/

Georgian companies face the challenge of the Covid-19 pandemic (2020). Retrieved from https://www.pwc.com/ge/en/assets/pdf/may-2020/Georgia_Covid-19_survey_Report_Final_Georgian_21.05.20.pdf

Georgian National Tourism Administration (2020). Retrieved from https://gnta.ge/ge

Murusidze, Inga. Business Media BM.GE. (14 December. 2020 ). Retrieved from https://bm.ge/ka/article/sesxis-procenti-2200-sastumros-dausubsidirda---natia-turnava/71103/

Khasaia I. (2020) Post-Crisis Tourism in Georgia: State Policy and Coronavirus Free Zones. Retrieved from http://doi.org/10.31617/k.knute.2020-06-01.74

Hotels in Georgia During the Coronavirus Pandemic (2020-05-12). Retrieved from https://ipm.ge/index.php/ka/

Report on the measures taken by the Government of Georgia against Kovid-19. Government of Georgia. 2020, -81 p. Retrieved from http://gov.ge/files/76338_76338_444796_COVID-19angarishi...pdf

Covid-Hotels. Bisness Media Georgia. (November 06.2020). Retrieved from https://bm.ge/

Guruli I. (2020). Pandemic Review: Economic Impact and Consequences for Georgia. Tbilisi, Economic Policy Research Center. Retrieved from https://eprc.ge/uploads/Covid19Georgia_geo.pdf

Views:

191

Downloads:

152

Published
2021-03-10
Citations
How to Cite
Khasaia, I., & Nana Kvirtia. (2021). IMPACT OF PANDEMIC ON THE HOTEL BUSINESS IN IMERETI (GEORGIA). World Science, (3(64). https://doi.org/10.31435/rsglobal_ws/30032021/7512
Section
Tourism and Recreation