Challenges of Employment in the Tourism Sector

Natia Barbakadze

Journal number 2 ∘ Natia Barbakadze ∘
Challenges of Employment in the Tourism Sector

journal N2 2025

Annotation. The tourism industry plays a crucial role in the global economy, contributing significantly to employment, GDP, and infrastructure development. Georgia's tourism sector holds great potential due to its rich cultural and natural heritage; however, challenges such as job instability, low wages, and insufficient professional training hinder its sustainable growth.

This study analyzes the employment structure, availability of professional training programs, and key barriers in the sector. The findings highlight limited access to specialized education and inadequate support for stable employment, both of which impede the industry's development.

The research recommends improving training programs, promoting job stability, and implementing regulatory reforms. A collaborative approach involving businesses and educational institutions will help unlock the sector’s full potential and foster long-term economic growth.

Keywords: Tourism industry, employment, qualified personnel

JEL Codes: J21, J61, L83, Z30, Z39

Introduction

Relevance of the Topic: Tourism plays a significant role in the global economy and is one of the fastest-growing industries, as various statistics demonstrate. According to the World Tourism Organization (UNWTO), by the end of the 20th century, international tourist travel worldwide amounted to less than 700 million. By 2024, this number had risen to 1.7 billion, and forecasts suggest that by 2030, it will exceed 1.9 billion (UNWTO, 2024).

The importance of tourism is also evident in the number of people employed in this sector. Unlike many other industries, tourism has a strong interconnection with a wide range of economic activities. As a result, it creates significant employment opportunities and engages a large portion of the population in the economy (Mekvabishvili, 2016, p. 86).

Tourism is a significant source of employment globally (UNWTO, 2025; Mekvabishvili, 2016, p. 87). It is among the leading sectors in job creation, encompassing a wide range of skills and offering opportunities for the rapid integration of the workforce, particularly for youth, women, and migrant workers. In several countries, the role of tourism in employment is critically important (Mekvabishvili, 2016, p. 88).

The tourism and hospitality sectors offer diverse employment opportunities across various fields. Accordingly, qualified and well-educated personnel are essential for the success of any tourism development strategy (Smith & Brown, 2022, p. 55). However, the sector faces several challenges, including job instability, low social status, long and unsociable working hours, and inadequate wages. These issues lead to difficulties in attracting qualified staff and result in high employee turnover, which can significantly hinder the industry's success (Jones et al., 2021, p. 47).

The involvement of qualified personnel is a crucial prerequisite, especially in a competitive environment and in ensuring the sustainable development of businesses. The link between human resources and tourism is evident in two main aspects: first, the growth of the industry depends on the availability of skilled and sustainable labor; second, fair treatment of employees by managers and customers is essential for promoting social justice. Additionally, the professionalism of staff has a strong impact on the quality of tourists' experiences and their perception of a destination (OECD – Organisation for Economic Co-operation and Development, 2024).

The tourism sector serves as a cornerstone of Georgia's economy, making a significant contribution to the country’s GDP and creating opportunities for increased income, entrepreneurship, and infrastructure development. The evaluation of global and regional tourism indicators relies on official data from the Organisation for Economic Co-operation and Development (OECD, 2024) and the World Tourism Organization (UNWTO, 2024). The analysis of tourism-related labor characteristics is based on assessments provided by relevant authors, ensuring a comprehensive and in-depth exploration of the issue.

Due to the country’s rich natural and cultural heritage attracting millions of international visitors annually, tourism plays a significant role in employment. However, it also gives rise to numerous employment-related challenges, making this topic highly relevant for research. In Georgia, the tourism industry holds strong potential in terms of reducing unemployment and improving employment rates (OECD – Organisation for Economic Co-operation and Development, 2024). Nevertheless, inefficiencies in the labor market and the lack of structured vocational training in tourism-related professions limit its ability to fully realize this potential (World Bank, 2022).

Object of the Study: The object of this study is the employment environment within Georgia’s tourism sector. This includes employees engaged in tourism-related activities, the structure of job opportunities, factors influencing employment dynamics, the role of educational and training institutions, and the impact of regulations on labor conditions within the sector.

Subject of the Study: The subject of the study is the employment challenges in the tourism sector and the possible solutions to address them.

Research Aim and Objectives: The aim of this research is to examine the employment challenges in Georgia's tourism sector, identify barriers to stable and sustainable employment, and propose appropriate strategies to promote workforce development, improve job quality, and ensure the sector’s long-term growth and sustainability.

To achieve the aim of the research, the following specific objectives have been identified:

To examine the structure and characteristics of employment in Georgia’s tourism sector, focusing on the qualification requirements of job positions, the demographics of the workforce, and regional distribution.
To assess the accessibility and effectiveness of vocational retraining programs tailored to tourism-related professions in Georgia.
To identify and evaluate the needs and challenges facing the sustainable development of tourism.

Research Hypothesis: Employment challenges in Georgia’s tourism sector significantly hinder the sector’s ability to achieve sustainable development and increase its contribution to the national economy.

Literature Review

The literature review laid the foundation for shaping the objectives of this research. Several relevant academic articles, journals, and media sources published over the past decade were selected and analyzed. These materials help to better understand current trends and issues related to employment in the tourism industry.

Cooper’s research emphasizes the importance of skill diversification and vocational education in tourism employment. He argues that the labor-intensive nature of tourism creates opportunities for marginalized groups, but also often leads to high employee turnover due to seasonal demand and low wages. His findings underline the necessity of government policies that support skill development programs—aligning with Georgia's efforts to address workforce shortages in the sector (Cooper et al., 2023).

Baum’s study focuses on global tourism employment examples, particularly highlighting the disproportionate impact of crises (e.g., COVID-19) on the tourism sector and economies that rely heavily on it. The research examines how temporary employment and lack of job security present challenges to sustainable development. This is particularly relevant to Georgia, where a significant portion of tourism-related employment is seasonal and informal (Baum & Hai, 2020).

Richards explores the role of cultural and creative tourism in the employment sector. His research reveals a positive correlation between cultural tourism initiatives and job creation, particularly within small and medium-sized enterprises (SMEs). In the Georgian context, where cultural tourism is an emerging niche, these insights highlight the potential for expanding employment opportunities through targeted initiatives (Richards & Wilson, 2012).

Scheyvens' research focuses on inclusive tourism and its impact on local communities. He argues that empowering local populations through skill development and employment opportunities contributes to long-term economic benefits. This perspective is especially relevant to Georgia, where tourism-related employment could help reduce regional economic disparities (Scheyvens & Biddulph, 2018).

Based on the reviewed literature, it can be concluded that the diversity of tourism services generates a wide range of qualification requirements and employment opportunities. However, certain challenges also emerge—such as the prevalence of temporary employment, unstable working conditions, safety issues, and low wages—which call for targeted policy and structural interventions.

Employment Prospects in the Tourism Industry

According to the Organisation for Economic Co-operation and Development (OECD), the tourism industry is one of the most accessible sectors for employment. The organization’s experts have emphasized tourism as a key solution to employment challenges, particularly those faced by young people (OECD, 2024).

Tourism primarily functions as an economic activity that promotes the growth of local areas as tourist destinations. As previously mentioned, tourism involves mobility, which leads to various effects. Some of these impacts are direct and closely related to tourism, such as the improvement of hospitality services, while others are more indirect (Yasarata, 2024, p. 67).

Direct employment includes all jobs that are directly supported by travel and tourism activities. Examples include positions in hotels, restaurants, travel agencies, tourism information centers, museums, protected areas such as national parks, palaces, religious sites, monuments, and transportation services such as airlines and railways (both publicly and privately owned), as well as roles like tour guides, chefs, and more. These positions also extend to industries such as cruise lines, resorts, retail shops, souvenir production, photography services, sightseeing tours, rural guesthouses, and family-run accommodations (United Nations World Tourism Organization, 2023, p. 41).

Indirect employment, on the other hand, includes jobs in sectors that indirectly support the development of tourism. These include suppliers for restaurants, construction companies responsible for building and maintaining tourist facilities, infrastructure development firms, aircraft manufacturers, handmade craft producers, marketing agencies, and accounting firms. These industries rely on the income generated by businesses that provide direct employment (Abesadze, 2015, p. 35).

The economic impact of tourism is evaluated based on factors such as income, employment, investments, development, and the balance of payments. As a labor-intensive industry, a significant portion of income comes from wages paid to employees who either directly serve tourists or indirectly benefit from tourist expenditures. Tourist destinations that attract large numbers of visitors, encourage longer stays, and offer a variety of activities generate more revenue due to increased consumer spending.

Other factors that contribute to the diversification of employment opportunities in the tourism sector include the global popularity of travel and tourism, the recognition of travel as a fundamental right, and the efforts of destinations to meet tourists’ needs with high-quality services. Tourists now have a wide range of leisure options and benefit from international standards set by national and global tourism organizations, ensuring quality customer experiences that support sustainable development in the sector (Ivane Javakhishvili Tbilisi State University, Vakhtang Bagrationi Institute of Geography, 2013, p. 112). Additionally, the reduction in international oil prices has lowered travel costs, further boosting tourism. Various sources describe the relationship between tourism and space in three main phases to explain the progression of these connections:

Discovery phase, where local infrastructure and businesses are still in the early stages of organization.
Development phase, in which tourism becomes a significant economic force in the region, playing an important role in the local economy.
Maturity phase, where a structured network of tourists and various organizations is created, and local institutions establish the region’s tourism policies (Butler, 1980).

This framework is often referred to as the “tourism area life cycle” (Butler, 1980). At each of these stages, tourism can have both positive and negative impacts on the territory of Georgia.

The positive impact primarily relates to the economy and rural development. Increased income and job creation are among the main benefits that the tourism sector brings. Another important benefit is ecological; previously underdeveloped areas can generate financial resources for environmental management after the introduction of tourism. However, as noted, tourism development can also cause negative effects on Georgia’s territories. It can damage the natural, social, and cultural environments. This risk is especially evident during the development phase, when mass tourism attracts a large number of visitors (Mekvabishvili, 2016, p. 87).

As a result of these factors, the tourism sector, together with supporting industries, creates broad and diverse employment opportunities to meet the increasing demands of growing tourist numbers.

Employment Challenges in the Tourism Sector

In Georgia, various types of employment challenges exist, shaped by both global trends and domestic factors. One of the main challenges is the seasonal nature of employment, which, according to the National Statistics Office of Georgia (2025), increases by up to 30% during peak seasons. Tourist jobs in Georgia are often concentrated in this limited period, rather than being consistent throughout the year. This seasonality affects employment figures, as more than 40% of workers are hired on temporary contracts, which often lack long-term prospects or career development. The tourism industry emerges as a socio-economic phenomenon that may not yet be fully resolved as an economic issue (Bakker & Twining-Ward, 2020, p. 54).

Employment in Georgia presents a distinct problem closely linked to the secondary proportional development of the tourism industry’s economic significance. According to the National Statistics Office of Georgia (2025), tourism accounts for 10% of the country’s GDP. The level of tourism products and prices influences the labor capital structure. A significant challenge in hospitality is the shortage of wages; the unemployment rate in the sector reached 25% in 2025 (National Statistics Office of Georgia, 2025). This identified labor deficit causes various issues, including environmental changes and deeper systemic concerns such as education, where up to 20% of students receive tourism-related education (National Statistics Office of Georgia, 2025). Additionally, Georgia’s tourism industry is characterized by a lack of qualified workforce; many employees are either unskilled or semi-skilled. This creates challenges related to service quality and professional growth within the industry (Kilic & Okumus, 2021, p. 34). There is a significant demand for better training programs and educational initiatives to equip employees with the necessary skills to compete effectively in the global market (Dredge & Jenkins, 2020, p. 78).

The COVID-19 pandemic further exacerbated the challenges in the tourism sector, manifesting as a sharp decline in the number of tourists and, consequently, a reduction in employment within tourism-related sectors. The hospitality industry was particularly hard hit, with tourist numbers significantly lower compared to previous years. As a result, incomes of employees in this sector sharply decreased, substantially worsening their economic situation. However, domestic tourism played an important role in 2022, as the global pandemic continued to create uncertainty. In 2021, Georgia experienced noticeable growth in domestic tourism, following the global trend of relying more on local tourism in the short term (European Travel Commission, 2021, 16).

Analysis of domestic tourism trends showed that short travel distances from major cities such as Tbilisi and Batumi, combined with well-developed resorts and diverse tourist offerings, were strong drivers of demand. Due to the pandemic and international travel restrictions, Georgia's tourism sector became increasingly dependent on domestic tourists. In 2021, local tourists accounted for nearly 70% of hotel stays outside the city limits of Tbilisi (Vekua & Tsertsvadze, 2022).

In the second quarter of 2021, the average number of domestic visits increased by 27.3% compared to the same period in 2019, which was a significant improvement considering that growth was only 0.8% in the second quarter of 2019 compared to 2018. Additionally, the average overnight stays among domestic tourists doubled in the second quarter of 2020 compared to the same period in 2019, but in the second quarter of 2021, this figure dropped by 32% (Kilic & Okumus, 2021, 34).

The pandemic exposed the vulnerability of tourism markets, where countries that contributed the largest share of international visitors to Georgia—such as Armenia, Azerbaijan, and Russia—recovered to less than 15% of their 2019 levels. This highlighted the importance of diversifying tourism markets toward more stable and stronger regions (Vekua & Tsertsvadze, 2022).

The crisis period also emphasized the resilience of emerging markets, including Israel, Ukraine, and the Middle East, which showed consistent growth and were expected to remain key sources of demand in the post-pandemic years (Sigala, 2022, 75).

Beyond the impact of the global pandemic, other structural issues, such as low wages and poor working conditions, continue to affect the sector. There is also a gender imbalance, with women disproportionately represented in lower-paid and less secure positions. Most studies have emphasized the significant challenges faced by workers in the tourism industry.

Synthesis of Identified Trends

The reviewed studies collectively highlight the complex relationship between employment opportunities and challenges in tourism. In many cases, the topics include:

The strong need for effective vocational training programs to address skill mismatches.
The importance of cultural and creative tourism in generating diverse employment opportunities.
The role of inclusive policies in ensuring fair benefits for local communities.

Employment Characteristics in Georgia’s Tourism Sector

These conclusions provide a foundation for studying the employment sector in Georgia’s tourism industry. The focus on vocational training and cultural tourism aligns with Georgia’s goals to diversify employment opportunities and enhance workforce capabilities.

Research Methods

Data Analysis

The research methodology was selected based on the analysis of existing literature, reports, and statistical data, which helped formulate appropriate approaches for the study. Statistical-analytical, classification, and factor analysis methods were employed to examine employment opportunities and challenges in Georgia’s tourism sector. The findings were organized into thematic categories related to employment challenges, opportunities, and sector-specific trends.

The research was conducted in the following stages:

Literature Review – to study the main problems and trends in employment within the tourism sector.
Statistical-Analytical Methods – to quantitatively assess employment opportunities and challenges based on official data and studies.
Classification and Factor Analysis Methods – to identify differences, trends, and key factors within the main employment segments.
Verification and Generalization Methods – for comparative analysis of the results and formulation of conclusions.

Main Research Questions:

What are the primary challenges related to employment in the tourism sector?
What opportunities exist for employment within the sector?

Data Sources:

To ensure a multidimensional perspective, the study incorporated statistical data and reports from reputable organizations, including:

United Nations World Tourism Organization (UNWTO)
World Travel & Tourism Council (WTTC)
Ministry of Culture of Georgia

These sources played a crucial role in contextualizing the challenges and opportunities within Georgia’s tourism sector, while also providing global and regional comparisons.

Findings

The analysis revealed key aspects regarding the current standards and gaps in employment within the tourism sector. Special attention was given to factors influencing employment diversification and the effectiveness of training programs. These factors aim to address the workforce’s needs adequately.

Statistical-Analytical Methods

To assess employment opportunities and challenges in the tourism sector, statistical and analytical methods were employed. These are based on official statistical data as well as scientific studies and reports. Below are specific data points and their sources, reflecting employment trends, wages, and working conditions in accordance with academic standards.

Quantitative Analysis of Employment in the Tourism Sector

According to data from the National Statistics Office of Georgia (GeoStat), approximately 45,000 people were employed in the tourism sector in 2024, indicating growth compared to previous years. Taking seasonal fluctuations into account, employment numbers increase in summer and decrease in winter, reflecting the impact of the tourist season on the labor market.

Comparison of Salaries, Working Conditions, and Other Key Indicators

In 2023, the average salary in the tourism sector was 1,200 GEL, which exceeds the general average salary in the economy. However, working conditions vary across subsectors; for example, employees in hotel management recognize the need for improvements in working conditions (ILO, 2022).

Assessment of Key Trends and Variables in Georgia

Economic growth has had a positive impact on employment in the tourism sector. After a decline in 2020 due to the pandemic, steady growth was observed from 2021 to 2023. Technological changes, such as online booking systems and digital marketing, increase employment opportunities but also demand new skill development from employees (UNWTO, 2023).

Diagram #1: Growth in Employment Numbers in the Tourism Sector in Georgia (2020-2023)
Description: This diagram would illustrate the upward trend in the number of people employed in Georgia’s tourism sector over the years 2020 to 2023, showing the dip in 2020 due to COVID-19 and subsequent recovery and growth in 2021-2023.

Classification and Factor Analysis Methods

Classification of Employment Forms and the Role of Professional Qualification in Georgia Includes:

Official Sector:

Employees in this sector work in organizations that are officially registered and provide employment conditions compliant with labor laws. Employment conditions in this sector often include mandatory employee benefits such as health insurance, pension schemes, and legal protections.
The number of employees in this sector could increase if regulations regarding labor conditions and wages become more strictly enforced.

Unofficial Sector:

There are forms of informal employment in the tourism sector that are not registered with relevant authorities and often operate without formal oversight, which reduces resource allocation in the official sector. Informal employment is often associated with unstable conditions, lower wages, and insufficient benefits.

However, this sector may offer more flexible and rapid employment opportunities, though it raises concerns about inadequate labor conditions.

Professional Qualification:

The role of professional qualification is very important for employment in the tourism sector because, in most cases, the chances of employment depend on the professional level and specialization required for the job.

Diagram #2: Distribution of Skilled and Unskilled Professionals in the Tourism Sector

Skilled Professionals (60%): Includes tour operators, tourism managers, and highly qualified specialists. These workers tend to have more stable employment within the formal sector and better career prospects.

Unskilled Professionals (40%): Comprises less qualified individuals who may also be employed but often face unstable working conditions and lack formal protections.

In Georgia's tourism sector, highly skilled professionals such as tour operators, tourism managers, and other specialists tend to have more stable employment within the official sector. Meanwhile, individuals with relevant skills have opportunities to increase their income, though their working conditions may not always be secure.

Key Challenges in the Labor Market

The main labor market challenges in the tourism sector include:

Skills Mismatch:

One of the most significant challenges discussed in the tourism sector is the skills mismatch, where employees' qualifications do not align with the tasks they perform. For example, many individuals who are not adequately prepared for professional roles in tourism may work as interns or be employed in informal positions.

In Georgia’s tourism sector, the lack of training and higher education programs further exacerbates this issue, making it more difficult to bridge the gap between skills and job requirements.

Working Conditions:

In many cases, working conditions do not meet the required standards in both the public and private sectors. For example, employees in seasonal jobs often do not receive all labor benefits, including paid days off.

The need to improve the work environment and conditions has become one of the most pressing issues among tourism sector employees

Labor Policy Issues:

Labor policy challenges in Georgia relate to the underdevelopment of labor legislation. At times, legislative processes do not provide adequate support, leading to deteriorating working conditions. Regulations are often unclear for private companies, which undermines labor market stability.

These issues highlight not only existing problems but also the strengths of the current system, which require further attention and informed use of research findings in future studies.

Diagram #3: Challenges in the Labor Market

Skills Mismatch: 40%
Working Conditions: 35%
Labor Policy Issues: 25%

Diagram #4: Various Aspects of Key Employment Challenges in the Tourism Sector (2020-2024)

Diagram #5: Labor Policy Issues

Insufficient Legislation: 50% - The legislative process does not provide adequate support.

Weak Regulations: 30% - Lack of clear regulations in private companies.

Lack of Support: 20% - Insufficient support from employers/employees.

Verification and Generalization Methods

Comparative Analysis with International Experience

Comparative analysis with international experience is one of the most effective methods to assess the current situation. It allows us to analyze how certain parameters influence the practices of other countries and what lessons can be learned from these examples. Comparing Georgia’s tourism sector with countries such as Spain, Italy, Turkey, and Hungary helps identify both strengths and weaknesses.

Practical Examples and Analysis:

The experience of these countries shows that successful tourism policies are determined by several key factors:

Establishing Professional Qualification Standards in Tourism: For example, in Italy and Spain, vocational schools closely collaborate with tourism companies to ensure that the workforce meets market needs. Similar standardization is not yet developed in Georgia, which lowers the professional level of the sector.
Stability of Seasonal Employment: In Turkey, there is a practice where seasonal workers undergo additional training between seasons, ensuring their continuous professional development. In Georgia, seasonal jobs are often unorganized, leading to a shortage of qualified personnel.
Professionalism of Tourism Managers: In Hungary, tourism managers regularly undergo certification processes, whereas in Georgia, professional standards in this field are less regulated.
Collaboration Between Tourism and Local Authorities: In Germany and France, cooperation between the public and private sectors has become one of the key mechanisms for tourism development. This experience indicates that the sector’s success often depends on coordinated actions between central and local governments. In Georgia, such collaboration remains fragmented and reveals a lack of a systematic approach.

International Trends and Georgia’s Positioning

International trends show that the development of the tourism sector is directly linked to state involvement and strategic partnerships with the private sector. Successful countries implement updated educational programs, establish standards, and adopt policies tailored to market demands. In Georgia, the tourism sector is still at an early stage of development in these areas. The main challenge is the skills mismatch—the gap between the education system and sector needs—which reduces competitiveness in the international market.

Therefore, it is essential for Georgia to actively consider international practices, adapt them to the local context, and develop clear policies to promote standardization and professional development in the tourism sector.

Reasons for Skills Mismatch:

The skills mismatch in Georgia’s tourism sector is caused by several factors:

Existing educational programs in tourism are not fully synchronized with the current market demands. The outdated curricula and the lack of practical components hinder the effective training of personnel.

In recent years, the tourism sector in Georgia has rapidly developed, creating an urgent need for professional workforce preparation. However, the education system and the network of professional training have not kept pace with this growth.

Despite some efforts, state programs supporting the tourism sector (e.g., subsidies for professional retraining) remain fragmented and do not cover all sector needs.

Comparative Analysis Based on International Examples:

Spain and Italy: In both countries, tourism policy is closely integrated into the national economic strategy. For example, in Spain, tourism is considered one of the main economic sectors, supported by special educational platforms and strategic plans. As a result, strong vocational schools and internship programs have been established to equip newcomers with practical skills.

France and Germany: In these countries, local governments not only promote tourism development but also directly participate in regulating the sector and developing professional standards. For example, in France, tourist guides hired by companies are required to have special licensing, which helps to improve the quality of services.

Strategic Steps Necessary for Georgia:

It is necessary to update vocational education programs based on the specific needs of the tourism sector. This should include practical experience, foreign language training, and the use of modern technologies.
A mandatory certification and professional licensing system should be established to help improve service quality.
It is essential to develop a strong public-private partnership model where the government supports private initiatives, and the private sector actively works on improving professional skills.

Considering International Trends:

If Georgia does not take into account international experience and does not implement systemic changes, it will lose its competitive position in the global tourism market. Modern tourists are no longer satisfied with just natural resources — they demand quality service, professionalism, and a safe environment, which makes comprehensive reform of the tourism sector mandatory.

Discussion of the Obtained Results

Despite the dynamic growth of Georgia's tourism sector, research materials and statistical data indicate problems with employment stability, especially regarding seasonal employment. According to the National Statistics Office of Georgia (2024), approximately 32% of employees in tourism-related sectors depend on seasonal work, which poses a serious threat to their labor security. Comparative analysis shows that in countries where labor rights are strictly regulated (for example, Spain, Portugal), the impact of seasonality on employment is significantly lower (Eurostat, 2023). This supports the conclusion that improving labor legislation in Georgia is necessary to enhance employment stability.

Professional Qualification Renewal

According to global practice, continuous development of professional education in the tourism sector is one of the main factors for improving employment quality and competitiveness. According to the OECD report (2022), in countries where systematic approaches to retraining and skill development are implemented, the efficiency of the tourism sector and employment stability are significantly higher. Accordingly, strengthening professional retraining programs should become a priority for Georgia, which will help reduce the mismatch of skills and increase sector resilience.

Improvement of Working Conditions:

According to international studies (ILO, 2023), the improvement of the work environment and the enforcement of labor standards directly correlate with the productivity of the tourism sector and the well-being of employees. The current practices in Georgia’s tourism sector, which often feature inadequate labor contracts and lack of safety standards, require significant legal and administrative reforms. Therefore, improving working conditions in Georgia should be considered not only a matter of social protection but also a strategic direction for enhancing the competitiveness of the sector.

2. Conclusions:

Georgia’s tourism sector is currently most constrained by the lack of professional qualifications and the urgent need to improve working conditions. Therefore, attention must be focused on international experience and its adaptation to the Georgian context to regulate the issues hindering the effective development of the tourism industry.

Expansion and Promotion of Professional Education: Activating tourism professional qualification standards and developing retraining programs will significantly accelerate the development of the tourism sector in the country.

Improvement of Working Conditions: Enhancing working conditions should become a top priority for the government to ensure that employees in the tourism sector can work in a stable and secure environment.

Diagram #6: Professional Qualification and Skills Mismatch (OECD, 2024).

This diagram illustrates the percentage of skill mismatches in the tourism sector between Georgia and several European countries from 2020 to 2024. Skill mismatch refers to the gap between the qualifications required for a job and the actual skills possessed by employees.

In Georgia, one of the major challenges is the significant skill mismatch, which negatively impacts employment stability. While this issue also exists in other countries such as Spain, France, and Italy, it occurs at a lower level compared to Georgia. Overall, the skill mismatch indicator slightly increased in Georgia in 2023.

Diagram #7: Working Conditions (International Labour Organization, ILO- 2024).

This diagram shows the distribution of working conditions in Georgia's tourism sector from 2020 to 2024. It illustrates different types of employment:

Official employment: workers with formal contracts who receive social benefits and regulated working hours. This share remains relatively stable.

Unofficial employment: workers without formal contracts, lacking social protection and job security, which increases their vulnerability.

Seasonal employment: jobs available only during certain tourist seasons, without stable, permanent working conditions or benefits.

The diagram highlights that despite the stability of official employment, unofficial and seasonal jobs still make up a significant portion of the sector, posing challenges for improving working conditions and protecting employees.

Diagram #8: Labor Policy Challenges (European Commission, 2024).

This diagram illustrates the main labor policy challenges in Georgia's tourism sector from 2020 to 2024. The problems are categorized as follows:

Insufficient legislation: This refers to the lack of laws protecting employee rights, including unclear regulations regarding informal or seasonal employment.

Instability of working conditions: This highlights issues such as irregular working hours, unstable employment, and poor work environments, which are especially evident in seasonal jobs.

The data shows that these problems were most acute in 2020, but by 2024, improving working conditions and legislative frameworks remains a significant challenge.

Gender Equality and Employment Opportunities in Georgia's Tourism Sector

The hotel, food, and tourism sectors in Georgia are rapidly expanding and creating significant employment opportunities (Geostat, 2024). Women’s participation in these industries is increasing, but compared to some Western countries like the UK, Portugal, and Finland, their share in Georgia remains relatively low (World Bank, 2024; Richards, 2020). Women play an important role in hotels and the food industry (UNDP, 2023), yet challenges persist in achieving gender equality, especially regarding wages and working conditions (UNDP, 2023). Compared to countries such as the United Kingdom, Portugal, and Finland, where women's participation is higher, Georgia has potential for further improvement (Richards, 2020, p. 29).

In Georgia’s tourism sector, opportunities are available for both men and women, with a focus on hospitality, transportation services, and business-related services. Women's employment is particularly notable in the hospitality and food industries, though it may not yet match the levels observed in other regions. The primary sources of expenditure in Georgia’s tourism industry include domestic travel by residents, business travel, visitor exports, and government spending on tourism (Prayag & Ryan, 2022, p. 56).By improving conditions and opportunities for women’s employment, Georgia can adopt successful practices from countries like Canada, the USA, and Germany, where human resource management in tourism is highly developed (Prayag & Ryan, 2022). This will help strengthen the country’s position in the global tourism market.

Although women's share in the tourism workforce is still developing, Georgia can learn from countries with more established practices, such as Canada, the United States, and Germany, where tourism human resource management is highly effective (Prayag & Ryan, 2022, p. 58). By improving conditions and opportunities for women in tourism, Georgia has the potential to strengthen its position as a competitive destination in the global tourism market (Prayag & Ryan, 2022, p. 59).

Human Capital Strengthening and Sustainable Development in Georgia’s Tourism Industry

In Georgia, to achieve high customer satisfaction, labor should not be viewed merely as a cost but as valuable human capital (Pearce & Wu, 2023, p. 90). A highly qualified workforce promotes greater competitiveness and innovation, improves employment prospects, and helps businesses adapt to changing market conditions (Pearce & Wu, 2023, p. 92). Research conducted in the Central Asian region emphasizes that employment and human resource issues must be at the forefront of research and analysis in Georgia’s tourism industry. Tourism plays a significant role in reducing extreme poverty in Georgia, offering women the opportunity to break the cycle of poverty through formal and informal employment, entrepreneurship, training, and community development (Ivanov & Webster, 2020, p. 67). However, not all women benefit equally (Kattara & El-Said, 2022, p. 18).

Collaboration among all stakeholders—including the Georgian government, local authorities, non-governmental organizations, and community-based tourism initiatives—aims to promote equal opportunities and treatment. This may include reducing gender pay gaps, increasing women’s representation in managerial and decision-making roles, and respecting local customs and traditions. Regular discussions among stakeholders, in cooperation with international organizations, are crucial for improving wages, working conditions, and promoting fair employment practices. It is essential to create stable, full-time jobs with fair wages, benefits, and labor regulations that protect human rights, prohibit forced labor and child labor, and eliminate discrimination based on race, gender, religion, political beliefs, or social origin (Jones & Hillier, 2021, p. 101).

For the development of Georgia’s tourism and hospitality sector, it is essential to foster a democratic, participatory management culture that recognizes employees as valuable assets. Employers should reward top-performing staff and strengthen connections with educational institutions to offer training programs closely aligned with the needs of the tourism industry. This includes promoting open and remote learning, which ensures accessible educational opportunities for a wide range of industry personnel (Mekvabishvili, 2016).

International organizations, including the United Nations Environment Programme and the International Labour Organization, acknowledge the importance of standardization and certification in improving environmental and social practices and meeting consumer demand for responsible tourism (Hall & Gössling, 2022, p. 45). In Georgia, the introduction of certification schemes is possible across various types of tourism enterprises, including hotels, resorts, travel agencies, tour operators, transportation services, as well as tourist destinations and natural resources. The need for certification in Georgia is driven by the dynamic development of the tourism sector and the necessity to uphold quality standards, which significantly impact the country’s tourism image and long-term sustainability. Through the certification process, it is possible to systematically ensure the quality and sustainability of services and resources (International Labour Organization, 2023, p. 30).

To address the challenge of seasonality in Georgia’s tourism industry, implementing a clear and comprehensive policy is crucial. According to recommendations by the World Tourism Organization (UNWTO), managing seasonality requires the use of multifaceted strategies. Specifically, efforts should focus on targeted development of off-season markets, which helps distribute visitor flow more evenly throughout the year. Additionally, offering seasonal discounts is advisable to reduce demand drops and improve sales performance during less active periods. Organizing events and cultural activities during the low season is also recommended, as this stimulates interest and increases tourist arrivals. Furthermore, it is important to establish alternative employment programs for seasonal workers to encourage retention of human resources and enhance job stability. These measures are based on global best practices and aim to mitigate the negative effects of seasonality in the tourism sector (UNWTO, 2023). For example, adapting working hours to seasonal patterns while maintaining benefits, or ensuring consistent employment with the same employer each season, can be effective (Mekvabishvili, 2016, p. 87). When necessary, employees should be provided with essential services such as accommodation, food, and healthcare, ensuring these facilities meet high standards (Abesadze, 2015, p. 25). Moreover, the distribution of service fees should be transparent and well-documented to guarantee fairness and clarity for all stakeholders involved in the tourism sector (Abesadze, 2015, p. 29).

Research Results and Analysis

Key Findings on Employment Challenges

The research identified the main employment challenges in Georgia’s tourism sector as follows:

Professional Deficit: One of the most significant challenges is the lack of professionals, particularly highly qualified specialists. This means there is an insufficient number of personnel with the necessary professional qualifications to fully meet the demands of the tourism sector, which reduces the overall efficiency of the industry.

Seasonal Fluctuations: Seasonal jobs, mainly concentrated in the summer months, create an imbalance in employment patterns. Employees often lack stable working conditions, which not only affects professional and social stability but also frequently fails to guarantee adequate rights and benefits for workers.

Opportunities within the Tourism Sector

The study revealed several promising opportunities for employment in the tourism sector:

New Sectors: The increasing number of tourists from East Asia and Arab countries creates opportunities to develop new areas of tourism services. Specifically, cultural tourism, ecotourism, and medical tourism stand out as sectors offering new employment opportunities.

Interpretation of Research Data

The research results highlight a clear connection between employment deficits and working conditions. It was found that the majority of employees in Georgia’s tourism sector lack sufficient professional qualifications and often work in informal arrangements, which creates additional challenges for them. According to the findings, individuals employed without adequate preparation are at greater risk of unstable working conditions and violations of labor rights.

Conclusion

This article discussed the employment challenges in Georgia's tourism sector, including job instability, low wages, lack of structured professional education, and high turnover, which significantly hinder the sustainable growth of the sector. The research confirmed that despite the tourism industry's potential economic contribution, labor market inefficiencies and the absence of comprehensive professional training limit its ability to fully realize this potential.

Content analysis emphasized that improving the employment environment is essential for developing and stabilizing the workforce's skills, which will support the industry's development and increase its contribution to the national economy. Addressing these issues could bring long-term benefits not only to tourism but also to the broader economy by creating new jobs, fostering entrepreneurship, and developing infrastructure.

In terms of challenges, there is noticeable diversity within this sector. Issues arise in both the public and private sectors as well as in local communities. As a result, the methods and difficulties in overcoming these challenges vary.

The challenges and ways to overcome them are diverse and involve the public sector, private sector, and local communities. Social and economic impacts show that tourism development is accompanied by sector growth, increased employment, strengthened service industry, and infrastructure development. However, the positive impact of tourism growth in some areas is still limited.

From a socio-economic perspective, tourism development in Georgia has significant effects, such as:

Growth of tourism-related sectors
Increased employment and participation in the service industry
Strengthening of local infrastructure

Additionally, tourism development can bring benefits such as encouraging people to return to their regions, promoting agricultural progress, and strengthening the local budget, which local authorities can use to improve the environment. However, the impact of tourism growth in these areas remains limited.

Regarding spatial aspects, despite its small size, Georgia is rich in diverse tourist resources that attract various interests. These include cultural tourism, ecotourism, medical and wellness tourism, adventure tourism, and others. Furthermore, the research showed that Georgia’s geographical location significantly influences its tourism development. Its proximity to neighboring countries and coastal zones increases the likelihood that its tourist destinations will attract more visitors and industry professionals. However, the country’s transport infrastructure poses challenges in accessing certain tourist sites.

The development of theoretical approaches and the analysis of research results emphasized that the unique characteristics of tourism development in Georgia correspond to the main economic development theories discussed in the article. Additionally, clear challenges related to the sector’s sustainable development were identified.

In conclusion, the theoretical and practical significance of this study is quite important. The research demonstrated that tourism development in Georgia largely aligns with the discussed theoretical frameworks (balanced and unbalanced growth theory, rational expectations theory, dual economy theory). It also revealed that the government’s approach to sustainable development is often more of a formal declaration than a fully implemented strategy. Specifically, although tourism has benefited certain groups, this benefit has not been widely distributed across the population, nor has it made a significant contribution to the development of the agricultural sector alongside regional tourism growth. This study may serve as a valuable example for future tourism research.

It is also important to note the practical outcomes of this study. The research highlighted the challenges and trends in employment development in Georgia’s tourism sector, which may interest business professionals involved in tourism and local governments. They can use these conclusions for future decision-making. The findings of this article may also serve as a basis for developing Georgia’s tourism strategy.

Based on these conclusions, the study proposes several strategies, including improving professional training programs, strengthening job stability, and addressing regulatory issues related to labor conditions. If implemented, these solutions could significantly enhance the sustainability and inclusiveness of Georgia’s tourism industry, helping it become a more effective driver of economic growth and a better employer in the long term. The main aim of this article was to examine the key trends and challenges of Georgia’s tourism sector. Based on theoretical materials and analysis of various research data, it was determined that the country has significant tourism development potential but also faces many challenges. Additionally, the article aimed to explore the sector’s socio-economic and spatial aspects in Georgia.

Recommendations

Ways to Promote Employment

Professional Training: It is necessary to create and implement professional training and retraining programs that help employees improve their qualifications and become competitive in the labor market. These programs should include both general and specialized courses that meet the growing demands of the tourism sector.

Improvement of Working Conditions: The government and private sector should actively work on improving working conditions. This includes protecting employee rights, regulating working hours, providing days off, and developing social benefits for employees. Ensuring stability in seasonal employment is also essential.

Strategic Vision for the Development of the Tourism Sector

Employment Stability and Growth: Employment stability and growth in the tourism sector are directly linked to an overall sectoral strategy. A long-term strategy should include:

Tourism Diversification: It is important that Georgia achieves growth and creates new employment opportunities by developing diverse tourism directions. Special attention should be given to ecotourism, cultural tourism, and medical tourism.

Investments in Education and Technology: Investments should serve not only infrastructure but also the development of human resources, which will help create a stable and highly qualified workforce.

Future Research Directions

Digital Transformation: Research should consider the impact of digital transformation on employment in the tourism sector. Modern technologies, such as machinery, software, online payments, and tourism applications, create new jobs and improve working conditions.

Sustainable Tourism: It will be important to determine how sustainable tourism, which involves preserving the environment and local communities, can create new employment opportunities.

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