The Government of Georgia is encouraging regional entrepreneurs to build new hotels and develop the hospitality industry in Georgia’s diverse regions, by offering state co-financing.
For this purpose the Government of Georgia is expanding the ‘Produce in Georgia’ state program by adding the ‘Host in Georgia’ sub-component to it.
As part of this the state will co-finance entrepreneurs willing to build new hotels in any area of Georgia expect capital Tbilisi and Black Sea resort town Batumi. Entrepreneurs will also be free to expand existing hotels or bring foreign brands into the Georgian market as a franchisee.
Shatili, a historic highland village in Georgia. Photo by N. Alavidze/Agenda.ge.
In the last few months we have seen a positive dynamic [in terms of growing tourist numbers to Georgia] and the infrastructure should also follow this trend. The ‘Host in Georgia’ program offers the business society in the regions to build new hotels together with the state,” said Georgia’s Prime Minister Giorgi Kvirikashvili after presenting the ‘Host in Georgia’ program today.
The Government will co-finance the business project of anyone who took a bank loan to build a hotel in the region. For the first two years of the loan the Government will pay 50 percent of the total loan and the interest.
Furthermore, Kvirikashvili announced the Government was working on a national four-season development strategy to best promote Georgia at all times of the year.
Today Georgia's Prime Minister Giorgi Kvirikashvili presented the 'Host in Georgia' state program. Photo by Georgia's Ministry of Economy.
He said the Government was creating new tourist-friendly areas and sites to make Georgia’s regions more attractive for visitors, and as an example, Kvirikashvili named the Bakhmaro development plan, which the Government outlined last week.
Kvirkashvili said the Government will introduce the country’s infrastructural development plan "in the nearest future”.
There will be completely new roads in Kutaisi-Abastumani and Kutaisi-Svaneti directions. Also a new road will link Gomi and Racha. We will develop [highways] very fast,” Kvirikashvili said.
The Georgian Government launched the ‘Produce in Georgia’ state program in 2014. Today it supported more than 150 enterprises and offered state co-financing of 370 million GEL (about $150 million/€138 million*).
Mestia - the main regional centre of Svaneti, Georgia. Photo by N. Alavidze/Agenda.ge.
Last week the Government made changes to the ‘Produce in Georgia’ program that enhanced state support for small and medium-sized (SME) businesses in Georgia.
Changes applied to the amount businesses can borrow under the scheme. The minimum amount of preferential loans granted by local commercial banks now ranged from 150,000 GEL* (instead of 250,000 GEL**) for locals and $75,000 USD ($150,000 USD) for foreign investors.
Meanwhile in January 2016 the Government added the ‘Film in Georgia’ sub-component to the ‘Produce in Georgia’ program to stimulate the country’s film industry.
• Currencies are as of today’s National Bank of Georgia exchange rate.