In Q2 of 2024, unlike the previous quarter, overnight visits did not fully recover to 2019 levels. Hotel representatives attributed this lag in recovery to civil protests and political instability in May over the Georgian government’s passing of the “Law on Transparency of Foreign Influence.” The biggest increase in visits was recorded from China (127%), which is likely due at least in part to the number of direct flights between China and Georgia doubling. From April to August 2024, average hotel prices in Adjara increased for 3-star hotels (5% YoY), 5-star hotels (10% YoY), and guesthouses (13% YoY), while the average 4-star hotel price declined by 15%.

Our latest Quarterly Tourism Update offers insight into Georgia’s tourism indicators in Q1 of 2024. In Q1 of 2024, international visits to Georgia increased by 25%, compared to Q1 of 2023. For such visits, Türkiye was the leading country of origin, closely followed by Russia. In Q1 of 2024, visits to Georgia’s protected areas did not recover to pre-pandemic levels for the corresponding period.  In Q1 of 2024, average hotel prices in Georgia generally increased compared to the same period in 2023.

Our latest Quarterly Tourism Update offers insight into Georgia’s tourism indicators in 2023. In 2023, international visits to Georgia increased significantly (by 31%) compared to 2022, but still did not recover to pre-pandemic levels, reaching only 80% of the 2019 total.  In 2023, international visits to Georgia's mountain resorts did not recover to pre-pandemic levels.  In 2023, average hotel prices in Georgia experienced a general decrease compared to 2022.

In Q1-Q3 of 2023, the number of outbound visits made by Georgian residents reached 1.6 million, marking a 42% rise compared to Q1-Q3 of 2022. Notably, the number of outbound visits almost recovered to the pre-pandemic level, reaching 95% of the corresponding period of 2019. In Q1-Q3 of 2023, a significant proportion of outbound visitors chose Türkiye (44%) as their destination, followed by the EU (15%), Armenia (15%), and Russia (12%). Throughout Q1-Q3 of 2023, the number of visits to Russia was the most pronounced since Q2, following Russia’s decision to reinstate the visa-free regime for Georgian citizens and lifting the flight ban in May 2023. The expenditure of outbound visitors in Q1-Q3 of 2023 reached GEL 1.5 billion, which is 6% lower than in Q1-Q3 of 2019. A shift in expenditure distribution was observed in the covered period, with a significant increase in the share spent on shopping (+10 pp) and a decline in the share assigned to food and drink (-6 pp).

During the first three quarters of 2023, turnover in the Georgian accommodation sector reached 823.9 million GEL, representing a 10.2% increase compared to the same period of 2022. This significant growth can be directly linked to record-high income from international visits in 2023 so far. In Q1-Q3 of 2023, both the average number of persons employed and the average monthly salary in the Georgian accommodation sector rose compared to Q1-Q3 of 2022 by 5.7% and 11.4%, respectively. Notably, in Q3 of 2023, total salary fund in the sector reached an all-time high, amounting to 26.6 million GEL. In November 2023, compared to November 2022, the Hotel Price Index (HPI) in Georgia decreased by 13.2%, with the yearly HPI at its lowest under the “guesthouses” category (-21.5%). Meanwhile, compared to October 2023, the HPI in November 2023 dropped by 6.6%.

In Q3 of 2023, the number of international visits reached 2.3 million visits, recording a 21% YoY increase, however, only reaching 83% of visits in Q3 of 2019. Among the top countries of origin for international visits, in the following periods, visits from Israel are expected to decline due to geopolitical issues. However, visits from China are set to increase gradually with the new visa-free policy. Additionally, India’s tourism market remains promising, despite some border crossing challenges for visitors. In Q3 of 2023, income from international travel reached USD 1.4 billion, which significantly surpasses the pre-pandemic number by 28%, however, showing an incremental 5% rise compared to Q3 of 2022. In October 2023, compared to October 2022, the Hotel Price Index (HPI) in Georgia decreased by 11.1%, with the yearly HPI at its lowest under the “guesthouses” category (-18.7%). Meanwhile, compared to September 2023, the HPI in October 2023 dropped by 11.3%.

In the first half of 2023, the number of domestic visits amounted to 9.2 million, which is 15% higher compared to the corresponding period of 2022. The upturn in domestic visits this year, following a year-on-year decline in the previous year, was especially pronounced in the Q2 of 2023, where the number of visits rose by 25% compared to the Q2 of 2022. The total expenditure of domestic visitors reached GEL 1.4 billion in the first half of 2023, which is 14% higher compared to the corresponding period of 2022. By categories, in the first half of 2023, compared to the first half of 2022, the expenditure of domestic visitors on shopping (by 17%) and food and drinks (25%) increased significantly. In September 2023, compared to September 2022, the Hotel Price Index (HPI) in Georgia decreased by 10.0%, with the yearly HPI at its lowest under the “guesthouses” category (-14.3%). Meanwhile, compared to August 2023, the HPI in September 2023 dropped by 6.2%.

Since the beginning of 2023, the tourism sector in Georgia has been showing signs of significant recovery. Therefore, with this background, it is interesting to analyze the latest hotel price dynamics in Georgia. Since the beginning of 2023, the year-on-year (YoY) Hotel Price Index (HPI) in Georgia has experienced notable fluctuations, with a significant decline in the summer months. That drop was mainly attributed to the YoY price decrease for guesthouses. To provide a better understanding of the latest price changes of hotels, the regional analysis is crucial. In the summer months of 2023, the YoY HPI in Adjara was positive and significant for all categories of hotels (16%) in June, followed by a decline in July (-2.8%) and August (-0.2%). This could partially be attributed to the relatively low demand in seaside locations, in some instances due to visitors’ sea safety concerns.

In the first half of 2023, the number of international visits to Georgia reached 2.5 million visits, which is 21.7% lower than in the first half of 2019 (referred to as the corresponding pre-pandemic figure). This relatively slow recovery could be attributed to the ongoing Russia-Ukraine War and related disruptions to Georgia’s tourism sector. From a regional perspective, the number of international visits originating from Europe in the first half of 2023 was well below the pre-pandemic number (-23.3%), while for all other regions, the number of visits matched or exceeded the pre-pandemic figure. Despite only a partial recovery in the number of international visitors in the first half of 2023 against the corresponding period of 2019, income from international travel reached USD 1.8 billion, representing a 24% increase compared to the first half of 2019. According to the National Bank of Georgia, as of 30 June 2023, 38.4% of Russian citizens, 34.9% of Belarusian citizens, and 28.0% of Ukrainian citizens residing in Georgia were estimated to have been living in the country for at least one year or were intending to stay for more than one year. Considering these estimates, income from Russian travelers was at its highest in the first half of 2023 when it amounted to USD 482.1 million (equating to 26.7% of total income from international travel), which is 9.4% higher compared to the same period of 2019.  

In 2022, the recovery level of international tourist arrivals to Georgia (72%) was higher compared to the averages of the world (63%), and Central/Eastern Europe (59%), yet lower than that of Europe as a whole (80%). The rate of recovery for Georgia accelerated in Q1 of 2023, reaching 96%, above the averages of the world (80%), Europe as a whole (90%), and Central/Eastern Europe (59%). However, among selected comparable countries in which tourism makes a large contribution to the national economy, Georgia’s performance was not so outstanding in 2022. Specifically, high levels of recovery in the number of international tourists were evident in all such nations, with Albania even exceeding its pre-pandemic figure, followed by Greece and Croatia showing a strong rebound, while Georgia performed the worst among these four countries. In a regional context, Turkey and Armenia showed better performance regarding the recovery of international tourist arrivals than Georgia both in 2022 and in Q1 of 2023.