Tourism is the mainstay of the town's economy. Since the late 1990's the town and municipalty have seen development of industrial sites. Rashtriya Chemicals and Fertilizers were the first industrial unit set up closer to Alibag. Other companies include Ispat Industries (Mittal Group), Vikram Ispat (Birla Group), Gas Authority Of India Limited (GAIL) and HP LPGare, which are now also located near the town.

GB (Alibaug hotel) provides most comfortable accommodation, delicious  veg and non-veg food which will stimulate your taste buds. We offer a perfect  service with personal touch at surprisingly reasonable charges.