ROLE OF GAMBLING BUSINESS IN THE FORMATION OF CITY AND HOTEL REVENUES ACCORDING TO THE CASE OF BATUMI

Abstract

Ekaterine Bakhtadze 
 Email:bakhtadze.ekaterine@bsu.edu.ge 
 Associated Professor, Batumi Shota Rustaveli State University
 Batumi, Georgia
 https://orcid.org/0009-0005-4663-4134
 
 Nargiz Phalavandishvili 
 Email:phalavandishvili.nargiz@bsu.edu.ge 
 Assistant Professor Batumi Shota Rustaveli State University
 Batumi, Georgia
 https://orcid.org/0009-0009-5766-1815
 
 Irine Tavadze 
 Email: irina.tavadze@bsu.edu.ge 
 Associated Professor, Batumi Shota Rustaveli State University
 Batumi, Georgia
 https://orcid.org/0009-0006-4652-4231
 The tourism sector is a great contributor to the economy of Adjara region. The share of tourism is 14% in the gross domestic product (GDP) of the region, including accommodation, food, art, entertainment and recreation. After Covid-19 pandemic, the tourism started recovering since 2022, when more than 2 million foreign visits were recorded in the region. 58% of Adjara hotels are located in Batumi. Tourists, who are attracted by gambling business, namely by casinos, hold the quite large niche at the tourist market of Batumi. It is the gambling business that enables to load the international brand hotels during the off-season period. The given survey was aimed at analyzing of the gambling business role in the formation of revenues of Batumi city municipality and international brand hotels. Revenues received from fees paid for gambling business and income tax paid by casinos is important for the city budget. The casino has a special place in the additional income of the hotel. Hotel rooms, provided to casinos at a discount, become the guarantee for the stable occupancy. On average, casinos provide more than 50% of the annual occupancy index of hotels, which often gives the possibility to cover the hotel off-season operation charges. Regulation of the gambling business by the government enables to reduce its disadvantages. With a responsible approach to the gambling business, the role of casinos is huge in generating revenues for tourist destinations and businesses.