In the first half of 2023, the recovery in the number of international visits continued, however at a slower pace compared to previous periods, which could be attributed to the ongoing Russia-Ukraine War and related continuous disruptions in Georgia’s tourism sector due to ecological and geo-political issues arising from it. In particular, in the first half of 2023, the number of international visits reached 2.5 million visits, which is equal to 78.3% of the corresponding pre-pandemic (2019) number. However, this did at least represent a significant YoY increase (75.7%).
In the first half of 2023, in terms of country of origin, the highest number of visitors to Georgia came from Turkey, amounting to 582,500, marking a 16.6% rise compared to the first half of 2019. Narrowly behind in second was Russia with 577,600 visits, reflecting a 16.5% drop compared to the pre-pandemic number. Among the top 10 countries of origin for international visitor trips, the number of visits increased most from Belarus (127.0% higher compared to the corresponding figure for the first half of 2019), Kazakhstan (73.6%), and Israel (38.1%). Meanwhile, the recovery was the lowest for Azerbaijan (13.5% of the corresponding pre-pandemic number), Armenia (74.8%), and Iran (83.0%).
Notably, looking at the situation from a regional perspective, in the first half of 2023 the number of international visits originating from Europe was considerably below the pre-pandemic figure (-23.3%), while from all other regions, the number of visits reached or exceeded the pre-pandemic number. This could be attributed to Georgia perceived as less safe or suitable as a tourist location due to the Russia-Ukraine War, and consequent disruptions, such as the substantial inflow of migrants from Russia.
REVENUES FROM INTERNATIONAL TRAVEL IN THE FIRST HALF OF 2023
Despite only a partial recovery in the number of international visitors in the first half of 2023, the income from international travel in this period exceeded the pre-pandemic level significantly. This can be attributed to factors such as increased average length of stay, the broader recovery of international tourism, and inflationary trends. In particular, in the first half of 2023, income from international travel reached USD 1.8 billion, which is 24% higher compared to the first half of 2019, and 58% higher compared to the first half of 2022.
In terms of nationality, income from Russian travelers was highest in the first half of 2023 (26.7% of total income from international travel) and amounted to USD 482.1 million, which is 9.4% higher compared to 2019. In this regard, Russia was followed by Turkey (14.6% of total income), income from which recorded a 39.5% increase compared to the first half of 2019, and then the EU, which surpassed the pre-pandemic number by 14.4% despite the low level of recovery of international visits and contributed 12.0% of total income from international travel.
Among the top 10 countries of origin, the income recovery rate was the lowest for Azerbaijan (recovering to just 59.3% of its pre-pandemic figure). Meanwhile, a significant increase in income compared to the pre-pandemic period was reported for Israel (70.4%), while Ukraine also recorded a reasonable rise (30.8%).
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 one year or intending to stay for more than one year. According to IMF methodology, such people are treated as Georgian residents, and their spending is not included in the calculations of income from international travel.
HOTEL PRICE INDEX IN GEORGIA
In July 2023, in Georgia the hotel price index increased by 0.6% compared to June 2023. The 3-star, 4-star, and 5-star hotel price index increased by 1.6%, while for guesthouses, the price index decreased by 8.7%. The monthly HPI was the highest in Guria (16.3%) and lowest in Mtskheta-Mtianeti (-11.9%).
In July 2023, compared to July 2022, hotel prices in Georgia decreased by 8.6%. The prices of 3*, 4*, 5* hotels decreased by 10.2% and the prices of guesthouses decreased by 10.4%. The yearly HPI was the highest in Shida Kartli (19.8%) and lowest in Tbilisi (-16.5%).
THE AVERAGE HOTEL PRICES IN GEORGIA
In Georgia, the average cost of a room in a 3-star hotel was 174 GEL per night in July 2023, while the average cost of a room in a 4-star hotel in Georgia was 267 GEL per night and the average cost of a room in a guesthouse was 132 GEL per night.
The average cost of a room in a 5-star hotel in Georgia in July 2023 was 498 GEL per night. In Guria, the average price was 894 GEL, followed by Adjara – 550 GEL, Tbilisi – 505 GEL, and Kakheti – 466 GEL.
BASIC ECONOMIC INDICATORS IN GEORGIA
