Chinese capital has become more active in Georgia’s hotel sector in recent months, according to Mikheil Chelidze, head of the Small and Medium Business Association. Speaking to TV-program Business Course, Chelidze said Chinese companies are buying mostly small hotels, primarily to serve Chinese visitors rather than for conventional commercial expansion.
“Chinese investors have become more active recently. They are buying many hotels, but not for commercial purposes. They have large capital and businesses in China and are opening branches here to control the flow of Chinese visitors themselves,” Chelidze said. According to him, the investors are mainly interested in hotels in cities and are following a model also used by some German businesses.
The increase in Chinese investment comes amid growing visitor flows from China following the introduction of visa-free travel between the two countries. Chinese companies have been expanding their presence in Georgia as demand from Chinese travelers has increased.
In the first six months of this year, Georgia recorded 54,554 visits from China. China ranked eighth among Georgia’s source countries by the number of visits during the period, although Chinese visitors still accounted for only around 2% of the country’s total tourism flow.
