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Mountain Resorts Generate $50 million in the Georgian Economy

Mountain Resorts Generate $50 million in the Georgian Economy

The government wants to sharply increase revenues from private sector,  as well as maintain resorts.

Minister of Economy has announced it while commenting about the memorandum, signed between “Maintain Resort Development Company” and company “Red-Co”.

According to Kumsishvili, there is a potential to increase revenues 6 times from the resorts.

“Several important research is being carried in that direction, which clearly shows that  if mountain resorts can generate 50 million USD in our economy today, the figure might be simply extended to 300 million USD, which respectively requires investments, new hotel rooms and delivery of new services.

We have made general development plan of Gudauri with Canadian company, which includes the land plot where Red-Co plans to implement the project. Thus we can say surely, that the area should be developed in line of the plan against disordered urbanization”, – Dimitri Kumsishvili has declared.

Company “Red-Co” plans to develop resort infrastructure on 50 ha in new Guaduri and to invest over 150 million USD. The first stage of the project includes urbanization of 10 ha – construction of 26 buildings, which will provide with additional beds of 4200.

However, construction of food, sport and entertainment centers are being planned.

As of today, 3 apart-hotels, several restaurants and SPA centers of “Red-CO” are operating in New Gudauri.

However, another apart-hotel should be finished by 2016-2017. However, company “Red-Co” will open new hotel of Radisson Blu in new Gudauri, which implements additional investment of 15 million USD.

Source: GBC