Challenges and Development Prospects of Small and Family Hotel Business in the Regions of Georgia

Abstract

The number of family hotels in the Georgian tourism and hospitality sector is increasing year by year. A family hotel is a small-scale enterprise, but just as important and necessary as a large hotel. A family hotel is a means of accommodation with a small number of rooms and limited services. Small family businesses play a major role in the development of the peripheries of many countries. The depopulation of villages remains a major problem in rural areas of Georgia. Family business is a unique opportunity for the sustainable development of local communities. Small entrepreneurial activity in family tourism reduces unemployment, increases the quality of life, promotes the sale of local ecological products, attracts the recreational market, develops the local economy, protects the environment, and many other positive factors characterize the family hotel business. A family hotel tells the history of the region with its authenticity, cultural value, and traditions. The paper analyzes the trends in the development of the guest house market in the tourism market and its relationship with tourism development. The research identified challenges related to tax problems, service quality, practical skills, green entrepreneurship, pricing policy, ecological accommodation facilities, and digital marketing opportunities in the guest house business, etc.