Issue 1, 2013 February-March - Investor.ge

(HoReCa) sector in Georgia totaled $228million,” the report noted.“Additionally, for the period of 2007-2012, foreign direct investment in theHoReCa sector in Georgia amounted to$516 million.”Based on those projects, KPMG predictsthe number of hotel beds in Tbilisiwill grow by eight percent annually overthe next four years.“To be honest, I think there is [room]for more hotels…I have got a feeling thatthe demand will grow further because itis great to do business here. If you stepin, you see how many big companieshave settled down here, big internationalglobal players,” Heidingsfelder noted. “Ibelieve the demand for hotels will grow.”But while the increase in tourists hasbeen good for the industry, the sheervolume of hotel beds set to hit the marketcould have an adverse affect on allthe hotels, Steve Johnson, the owner ofBetsy’s Hotel, warned.“In 2011there was 68 percent occupancy,in 2012 a 82 or 83 percent[occupancy rate] and we really had towork hard; we have 57 rooms,” he said.“The rates are going down, down,down…With the government pushingthree stars to come in, it is just going tokill everybody who is above a three starbecause they are going to charge $60,$65 – they are going to go to Europeanrates.”With more hotels to choose from,travelers’ preferences will shape thefuture of the Tbilisi market.KPMG found that out of five factorsfor choosing a hotel room (friendlinessof staff, cleanliness of rooms, location,image/reputation, and price), travelersput more importance on the staff thanany other single indicator.