Small Hotel Industry in Ajara: Main Aspects of the Post-Pandemic Recovery

Abstract

The COVID-19 pandemic has had a substantial negative impact on the tourism economy in the Autonomous Republic of Ajara. A comprehensive scientific study examining the effects of the COVID-19 pandemic on tourism in the region, specifically focusing on the small hotel industry and the subsequent recovery phase, has not been carried out to date. This paper is the first attempt to fill this gap. The study was carried out in July and November 2021-2023 within the scope of the targeted scientific-research grant project of the Faculty of Social and Political Sciences at Ivane Javakhishvili Tbilisi State University. Ajara is a unique region in Georgia that has experienced significant tourism growth since the country won independence. Prior to the pandemic, tourists’ influx to Ajara in 2018-2019 stood at approximately 2 million visitors while in 2020, this figure decreased by 4 times and more. In 2022 post-COVID 19 period, the number of foreigners reached 4,7 million, surpassing the previous year's total by 173%. However, the number of visitors would not be so large if it were not for the high international mobility of the population from our neighboring Slavic countries due to Russia's military aggression against Ukraine. The objectives of the study were to identify the main strategy for the post-pandemic recovery of the tourism industry in Ajara, the effectiveness of government support and changes in the activities of small hotels in the region. The subject of the study is the small hotels of Ajara, which are located in the coastal area of the region ‒ city of Batumi, town of Kobuleti and the resort settlement of ​​Gonio. The paper uses a qualitative research method in the form of in-depth interviews and discourse analysis. The research tool is a discussion plan for target groups - owners/managers of small hotels. The study found that neither the central government nor the government of the autonomous republic could develop a post-pandemic tourist recovery strategy. However, the recovery of tourism occurred rapidly, partly due to the flow of tens of thousands of residents from the warring nations and Belarus into Georgia as a consequence of the Russia-Ukraine war. While a portion of them have departed the country, the remaining individuals have established their own bubbles (including in the tourism industry), serving specifically their ethnic segment. Consequently, the entrepreneurial activity of Georgian citizens is significantly impaired. Tourism in Georgia has primarily evolved in an unplanned manner. Insufficient focus is given to the introduction of business innovations or the engagement of all stakeholders in the field. This is particularly evident in the small hotel industry. The enactment of the Law on Agents of Foreign Influence in May 2024 prompted the mobilization of large-scale demonstrations in Tbilisi, Batumi and other urban centers across the nation. The Georgian tourism sector's rehabilitation process can be severely hindered by political instability, potentially causing serious harm.