This research examines socio-economic living conditions of the population in two mountainous regions in Georgia. Household data and data regarding intended behavior of private households intentions to enhance their (or start) activities in the tourism sector is analyzed with structural equation models.A descriptive analysis of the household data shows that animal husbandry and the cultivation of potatoes are more common in the Kazbegi region than in the Borjomi region. There is a discernible difference between the two main villages and smaller villages. Agricultural activities are slightly higher in the smaller villages and self-employment in agriculture is an important source of income. Touristic activities are more prominent in the main villages. Diversification of income sources in the sense of being active in both agriculture and tourism is stronger in the main villages than in the smaller villages. Comparing the smaller villages to the main villages, it shows that their income is particularly low, but in comparison to other parts of Georgia the income of the main villages is also low.The Theory of Planned Behavior (TPB, Fishbein & Ajzen 2010) serves as the theoretical framework for the analysis of intentions to start or enhance activities in the tourism sector. According to the TPB, three latent constructs influence intention to carry out a certain behavior. The basic model provides evidence for significant influences from subjective norm (i.e. the respondent s perceived approval of the behavior from others) and perceived behavioral control (i.e. the respondent s felt ability to carry out the behavior) on the intention to enhance tourism supply within the next year. This is in accordance with the TPB. However, the model could not prove that the respondent s attitude towards the behavior (the theory s third construct) significantly influences intention.A special feature of this research is the inclusion of belief-based measures. The analysis of beliefs reveals that in the case of subjective norm, family , friends and neighborhood are the most important referent groups while the respondents do not look for the government s approval. In the case of perceived behavioral control, likelihood of bank loans and feeling ill or tired significantly influence the construct. So to improve conditions for private households to start or enhance working in the tourism sector, credits should be granted and mechanisms for times of illness need to be installed. The fact that no significant influence from attitude on intention was found and subjective norm has the strongest standardized influence is not in line with many other studies that have used the TPB. It shows that the cultural background differs from that of the majority of studies with the TPB; they concentrate on Western societies. This study provides evidence for the fact that the TPB can also be applied in collectivist cultures but with a shift in the importance of the latent explanatory constructs.A modification of the model was tested to see if perceived behavioral control moderates the influence of attitude and subjective norm on intention (Yzer 2007). A moderation effect cannot be confirmed, but it is possible that the sample was too small to detect a significant effect since statistical power is low.The integration of experience in the tourism sector as a background variable shows a mediated influence from experience on intention. The constructs subjective norm and perceived behavioral control and the belief family mediate the influence of experience on intention: the more experience a household has in the tourism sector, the more favorable is the subjective norm, the higher is the perceived control and the more positive is the perceived support from the family towards enhancing such activities and in consequence the higher is the intention of doing so.Altogether the analyses show that households in both research areas use agricultural activities mainly for subsistence purposes with only some exceptions of households that sell part of their production. The tourism sector offers another opportunity for income. In order to facilitate households intentions to become active or enhance activities in this sector, programs should foster affordable credits along with a support system in cases of illness while taking into account the social surrounding of households. It has to be kept in mind, though, that tourism is not an option for everyone: especially in smaller and secluded villages the number of tourists is slim to none. On the other hand, a better offer for tourists could lead to more tourists which can also create more opportunities for work in other sectors.
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