The founder of Hotel Paliani in Svaneti, Ekaterine Gvelesiani, says the hotel is facing a significant drop in revenue in 2025 due to geopolitical instability and changing tourist profiles. Speaking on BMGTV’s Women’s Narrative, she attributed the decline to regional conflicts, specifically the Ukraine-Russia and Israel-Iran wars, which have triggered cancellations from long-haul markets such as Australia.
"These countries view the region as a whole and tend to avoid travel during conflicts," Gvelesiani noted, adding that the hotel is not optimistic about the summer season following a difficult winter.
She also pointed to a growing influx of low-spending tourists, particularly from India and China segments actively targeted by Georgia’s National Tourism Administration. As a result, Hotel Paliani has had to reduce prices to remain competitive against budget family-run accommodations.
According to the Tourism Administration, visits from China rose by 40%, while from India by 28% in Q1 2025, among the highest increases after Israel.
