Electricity expenses account for 30–40% of total costs for hotels in Mestia, according to Ekaterine Gvelesiani, founder of Hotel “Paliani.” She discussed the issue on the TV program Business Morning.
Hotel operators say that the higher electricity tariffs, combined with a decline in tourist numbers, are putting even more pressure on an already struggling sector.
Gvelesiani notes that most bookings for March and April have been canceled.
“We are essentially always working in survival mode. This isn’t new for us - it’s our everyday reality. We constantly deal with different challenges, and now the increase in electricity tariffs makes an already sensitive issue even worse,” she said.
She explains that higher electricity prices affect much more than utility bills:
“A higher tariff means not just more expensive electricity - it raises the cost of all goods and services, creating additional burden for businesses. Our situation is especially difficult because the region is not supplied with natural gas, and electricity is the only source of heating. In winter, 30–40% of our expenses go to electricity, and with tariff increases, this will rise even further.”
Tourism has also dropped significantly:
“In March, we had almost no bookings. April is also close to zero. Summer bookings remain for now, but new reservations are barely coming in, and even existing bookings are at risk of being canceled.”
