Tourism in rural regions of Georgia has a long tradition; however, many structures had been developed during Soviet times under the framework of a centrally planned economy and forced collectivism. Today, Rural Tourism is widely discussed by the national government and international cooperation partners as a means for regional development and as an alternative source of employment in agricultural areas and mountain regions. The purpose of this study is to develop suggestions for the institutionalization of Rural Tourism in the country and to propose relevant actions. Research methods comprised a document analysis, qualitative interviews with various stakeholders, and focus group discussions. We analyzed recent tendencies and challenges of rural tourism development in Georgia with a focus on the concept of community-based tourism and integrated rural development. We also review the challenges of the current structure of tourism marketing on the national level with regard to Rural Tourism products. The key findings of the research include recommendations to create a central leading structure for rural tourism at the national level, which will work on strategic issues and general norms of Rural Tourism. At the same time, we propose the development of destination management organizations, which will integrate general provisions in regional legislation and marketing in close cooperation with local stakeholders.