Despite a busy tourist season in 2025, Hotel Paliani in Svaneti reports a significant decline in revenue. Founder Ekaterine Gvelesiani revealed on BMGTV’s Women’s Narrative that the hotel’s income has dropped by around 40% compared to last year, largely due to forced price reductions and a shift in the tourist segment.
According to Gvelesiani, heavy competition pushed the hotel to reduce its rates by 30–40%, which directly impacted profitability. “Although the summer season was active and filled with tourists, financial results do not reflect this demand, since we had to significantly lower prices,” she explained.
One of the most pressing concerns is the sharp decline in high-value European visitors. This year, European tourists accounted for only 7–8% of arrivals, compared to much higher figures in the past. “European tourists practically no longer come to Svaneti. Instead, the region is increasingly attracting low-budget travelers from Asia, Russia, and Turkey,” Gvelesiani said.
She warned that this shift threatens the region’s positioning as a premium destination:
“When a resort becomes oriented toward low-spending tourists, high-spending ones stop coming. This change damages the market balance,” - she added.
On a positive note, domestic tourism has grown. This year, Georgian travelers made up 20% of visitors to Svaneti, an increase compared to the previous year. However, Gvelesiani stressed that while local tourists are important, they cannot fully compensate for the absence of high-spending international visitors, as most fall into the middle-income category.
Gvelesiani emphasized that artificially lowering prices undermines Svaneti’s long-term potential. She believes the region has the natural beauty and infrastructure to compete with world-class destinations like Switzerland, but achieving this requires a sustainable pricing strategy and careful management of the tourism sector.
