Tourist fee business perception survey for the introduction of the tourist fee in the Autonomous Republic of Adjara

The research goal was to study the feasibility and desirability of imposing tourist fee in the Adjara region: municipalities of Batumi and Kobuleti.

The study of tourism tax was done by employing qualitative and quantitative research methods. In particular a) 368 accommodation representatives in Kobuleti and Batumi were interviewed by face-to-face method; b) 5 focus groups in-depth interviews conducted; c) 3 in-depth face-to-face interviews with policymakers conducted. This approach ensured the overall sampling error results in 2.2% at the 95% confidence level. Also, the obtained results are representative of the municipalities of Batumi and Kobuleti (3% error)

Short summary:

• Survey results showed overall positive attitude (52%) of the Adjara region private sector representatives. Therefore
• The main challenges in terms of imposing the tourist fee are: a) Limited knowledge of tourism tax in private businesses; b) Possible unwillingness of accommodation providers to pay the tourist tax; c) Accommodation facilities may face higher costs, both in terms of money and time, due to tax implementations; d) Concerns about how municipalities handle money and spending trust. e) Addressing the challenge of managing tourism tax through electronic administration.
• Ways to overcome challenges and recommendations for stakeholders are developed: a) establish advisory board comprised from the private sector (mainly accommodation representatives) to spend the tourism tax generated budget properly b) 5 main spheres to spend the tax generated budget are defined by municipalities of Batumi and Kobuleti c) minimum tax amount is recommended for foreign tourists.

The study is funded by the USAID Economic Governance Program in Georgia.