Paata Kokaia, founder of Inn Group, says the government must invest significantly in promoting the spa resort of Tskaltubo to attract tourists from neighboring countries and Central Asia. He believes private investors will only be interested in purchasing former sanatoriums and developing hotels if they see a clear path to profitability.
Kokaia said Tskaltubo has lost its former reputation as a health resort among visitors from the former Soviet Union, making government-led marketing essential to rebuilding demand. He noted that his company had considered developing a hotel in Tskaltubo and had even made an advance payment to an architect, but abandoned the plan because of rising construction and operating costs.
The Inn Group founder cited the company’s experience developing hotels in Kutaisi and Akhaltsikhe, arguing that private investment can transform neglected properties when the conditions are right. He said effective promotion of Tskaltubo could help attract tourists and encourage businesses to invest in the resort’s former sanatoriums.
The National Agency of State Property has relaunched auctions for 10 former sanatoriums in Tskaltubo. Their combined starting privatization price is GEL 49.2 million, while successful bidders must commit to investing at least GEL 314.013 million, excluding VAT, in development. The auctions were announced on October 20 and are scheduled to close on November 15, with investors given five years to fulfill their investment obligations.
