Private Sector-driven Hospitality Skills for Employment (PS-HOST)

Georgia’s growing tourism and hospitality sector is recognised as a key contributor to employment, and economic development, with spillover effects  on business activity in transport, retail, local agri-food supply chains, food services, and recreational services. However, growth is constrained by persistent skills gaps. Cooperation between private sector actors and vocational education training (VET) providers is not systematic, training provision and content do not meet  labour market needs, and recruitment processes need  improvements. As a result, graduates often lack the required competencies and  do not find adequate positions within the sector. This leads to underemployment and limited career progression  – with constraints being especially high for rural populations. Simultaniously, hospitality businesses struggle to recruit and retain qualified staff.  

While the policy framework promotes public–private partnerships and demand-driven skills development, implementation remains uneven. Strengthening an industry-led, market-oriented VET system in the hospitality sector is critical to improve skills, employability and income in particular of disadvantaged groups.  Indirectly this supports the competitiveness of Georgia’s tourism economy. 

The core target roups are rural youth, women and men from municipalities  outside Tbilisi with limited access to quality training and employment  opportunities. 

Specifically,  priority will be given to those earning below the nominal income in  the hospitality sector or living in mountainous areas.  

Other target groups include:  

• Hospitality jobseekers and employees who benefit from upskilling and  reskilling. A key private sector partner will be the GMT Group. Max. 15% of the HTC trainees will be GMT staff.  
• Private sector actors engaged in training design, delivery and co-financing.  
• Training providers and public institutions strengthening demand-driven VET systems. 

Outcome 1: The private sector takes a leading role in sustainably financing,  steering, and delivering high‑quality, market‑relevant career guidance, training and recruitment in the hospitality sector. 

Outcome 2: Youth, women and men (including disadvantaged groups) are equipped with market‑aligned skills that enhance their employment prospects in Georgia’s hospitality sector. 

Risultati principali attesi:  

• The privately owned hospitality training center (HTC) is established and operational. 
• Private sector links with public actors to deliver hospitality market relevant  career guidance and recruitment services  
• Career guidance and recruitment services in hospitality sector is improved  
• Youth, women and men, including disadvantaged groups, are attending hospitality trainings  
• Rural Host Network is strengthened to provide practical training,  peer‑learning and linkages with employment opportunities 
• Impact Linked Finance (ILF) is in place to ensure social inclusion of hospitality trainings 
• Voucher system is piloted to ensure social inclusion in hospitality trainings. 

Risultati fasi precedenti:  

• Existing VET provision is insufficiently aligned with labour market needs.  
• Cooperation between training providers and companies is fragmented and ad  hoc, lacking structured mechanisms for sustained engagement. 
• Private sector’s interest in skills development (e.g. training design and delivery) is limited. 
• Institutional frameworks for VET reform and public–private partnerships are  in place, but implementation capacity remains uneven.