New lending to Georgia’s hotel and tourism sector remains constrained, according to Mikheil Chelidze, head of the Small and Medium Business Association. Speaking to the TV program Business Course, Chelidze said the rapid expansion of the hotel market in recent years has led banks to view the sector as relatively risky, making it more difficult for businesses to secure financing.
“Tourism lending is generally a problem, especially in recent years. Many hotels have opened in Tbilisi, and banks have also reduced lending,” Chelidze said. He noted that financing has also slowed in construction and development as lenders seek to balance supply and demand and avoid excessive market concentration.
According to Chelidze, banks continue to finance the sector, but at a slower pace and with stricter requirements. For example, a hotel valued at GEL 2 million might receive only GEL 1 million in financing, with the remaining amount requiring the business owner’s co-financing. “Banks view the hotel business as risky because building a project is one thing, while managing it and ensuring stable operations is another,” he said.
National Bank of Georgia data show that as of July 2026, loans to the hotel and tourism sector totaled GEL 2.78 billion, down by 15% year-on-year, or GEL 494 million. By comparison, total lending to the business sector increased by 12% over the same period, indicating that banks have been directing a larger share of new financing toward sectors other than hotels and tourism.
