The number of international travelers declined by 95.6% in July compared to the same period of 2019, while the number of international visitors fell by 94.8% and the number of international tourists fell by 93.5%; In July 2020, compared to July 2019, the average prices of 5-star hotels decreased by 23%, which is the highest decline among the categories of the hotels; In July 2020, the hotel prices have decreased in 8 regions (out of 11), compared to July 2019. The most hit regions are Guria (-38.1%), Adjara (-26.4%) and Samtskhe-Javakheti (-23.5%); Due to distorted price data, the declines in hotel prices illustrated by our analysis are underestimated. Moreover, the analysis in July can be deemed conclusive just for Guria, Adjara and Samtskhe-Javakheti.

In Georgia, the average cost of a room in a 3-star hotel was 135 GEL per night in July 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse was 73 GEL per night.

In the first half of 2020, external trade turnover in Georgia amounted to 5.054 bln USD, which is 18% less than corresponding period of 2019; Georgian exports amounted to 1.5 bln in January-June 2020, which is 16% less than in January-June of 2019. Moreover, Georgian imports deteriorated even more by reaching 3.5 bln USD, which is 19% less than in the first half of 2019; In the first half of 2020, Georgian trade deficit decreased by 0.55 bln USD (21%), compared to the first half of 2019; There are more EU member states amongst Georgia’s top 10 export partners in the first half of 2020, compared to the first half of 2019; In the period of January-June 2020, total trade turnover with the EU and Russia decreased by 22% and 16% respectively, but increased with China by 10% compared to the corresponding period of last year; Georgia’s main trading partners in the first half of 2020 were Turkey, Russia and China. Their shares in Georgia’s total trade turnover were 14%, 12% and 10% respectively; 77.4% of Georgian exports are concentrated amongst the top ten partners. Moreover, top ten import partners occupy 69.4% of total imports.

Due to the COVID-19 pandemic, global remittance flows are expected to fall by 20% in 2020 (World Bank), while the decrease in Georgia is forecast at 15% (IMF); In the first half of 2020, remittances have declined by just 4.8% compared to the same period of 2019; Remittance inflows have been growing by an average of 8.5% over the past decade; The contribution of remittance inflows in GDP has increased significantly over time and amounted 11% on average for the period of 2015-2019; In 2020, remittance inflows saw a sharp drop (-42.3%) in April, however, the recovery in June was also strong (17.8%), compared to the same period of 2019; Remittances from Russia declined the most in the first half of 2020 compared to the first half of 2019 (-27%), while Italy recorded the strongest growth (14%).

In the third quarter of 2020, Georgian economic climate has slightly improved. In this period, Georgian economists assessed Georgia’s present economic situation negatively; Moreover, the assessment of present economic situation in this quarter has improved compared to the second quarter of 2020, but worsened compared to the third quarter of 2019. In the third quarter of 2020, Georgia’s economic situation for the next six months has also been assessed negatively by Georgian economists. Furthermore, expectations for the next six months have enhanced compared with second quarter of 2020, but deteriorated slightly compared with the third quarter of 2019.

In Georgia, the average cost of a room in a 3-star hotel was 135 GEL per night in June 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse was 73 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2020 was 322 GEL per night. In Tbilisi, the average price was 471 GEL, followed by Kakheti - 327 GEL, Samtskhe-Javakheti - 279 GEL and Adjara – 273 GEL.

Using various assumptions, in Q3 of 2020, the maximum capacity of domestic tourism expenditures is to replace 33% of revenues from international tourism;  Using various assumptions, total revenues generated from tourism (both, domestic and international) in 2020 could amount to $1730 mln, which is 44.1% of the corresponding figure in 2019; Domestic tourism in Georgia reopened on June 15th, while the reopening of borders is postponed to the near future; The number of international travelers declined by 94.6% in May compared to the same period of 2019, while the number of inter- national visitors fell by 94.1% and the number of international tourists fell by 93.8%; In June 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is just starting to recover from the COVID-19-induced crisis.

Due to the COVID-19 pandemic, global FDI is expected to fall by 30-40% in 2020 (UNCTAD), while the decrease in Georgia is forecast at 19% (IMF); Net FDI inflows have been decreasing in Georgia since 2017, based on both, yearly and Q1 data; Net FDI inflows in Georgia experience volatility over time, due to large one-off investment projects; Georgia has been leading among EaP countries in terms of the share of FDI in GDP in 2017 and 2018; Net FDI inflows decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, mainly due to COVID-19 pandemic.

The Government of Georgia introduced various support measures in order to alleviate the burden of the COVID-19 crisis on tourism industry in the period between March and May of 2020. The Government of Georgia, namely GNTA, operated 84 hotels during the lockdown, which served 19 002 Georgian citizens as a quarantine zone. The total cost of providing quarantine zones from the budget amounted 32.5 mln GEL. The Government of Georgia, developed mandatory recommendations for prevention of the spread of COVID-19 on June 5th. In May 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is non-existent due to COVID-19 pandemic.

In Georgia, the average cost of a room in a 3-star hotel was 126 GEL per night in May 2020. While the average cost of a room in a 4-star hotel in Georgia was 214 GEL per night and the average cost of a room in a guesthouse was 71 GEL per night. The average cost of a room in a 5-star hotel in Georgia in May 2020 was 362 GEL per night. In Tbilisi, the average price was 534 GELfollowed by Kakheti - 325 GEL and Imereti – 95 GEL.