Tskaltubo has enormous tourism potential, but putting its former sanatoriums up for auction is not enough to attract investors, says Erekle Kokaia, CEO of hotel chain Inn Group. He believes the resort’s revival requires close cooperation between the private sector and the government, as well as a dedicated marketing strategy to generate demand.
Kokaia made the remarks in an interview with TV program Tsertili, discussing the government’s latest attempt to privatize 10 former sanatoriums in Tskaltubo. The National Agency of State Property has relaunched electronic auctions for the facilities, with a combined starting price of GEL 49.2 million. Winning investors will be required to invest at least GEL 314.013 million in their development, excluding VAT.
Kokaia said restoring a single sanatorium could require $20-25 million, including renovation, operations and marketing. However, current demand for Tskaltubo is not sufficient to justify such an investment. “If you gave me $25 million now, would I take it and invest it in Tskaltubo? I would be lying if I said yes. I wouldn’t,” he said, stressing that demand must be created before large-scale private investment can become viable.
He proposed a joint action plan involving investors and public institutions, including the Ministry of Economy and the Georgian National Tourism Administration. The state, he argued, should help restore infrastructure such as the resort’s bathhouses and fund a dedicated international marketing campaign. Only two bathhouses currently operate in Tskaltubo, one state-owned and one privately owned. Kokaia also called for businesses and the government to agree on specific commitments, with each side responsible for delivering its part of the development plan. He concluded that the tourism sector must overcome its fear of change, saying that progress is impossible without it.
