TBC Capital published a report on Georgia’s Tourism Industry. According to the report, average occupancy rate of hotels reached 22% in May. Since January, the figure has been recovering for large hotels (40% in May), attributable to increasing number of overnight trips, activity of domestic visitors and also their competitive advantage.
The report reads, that large number of medium and small hotels remain closed. In this segment, occupancy averaged 7% in May. For select large hotels, occupancy displayed an increase in all regions. The figure was highest in Batumi, at 47% in May, only 1pp lower than in May 2019. Occupancy of large hotels averaged 42% in Kakheti, followed by Tbilisi and Other Regions, at 38% and at 35%, respectively.
“Following a sharp decrease in Q2 2020, non-cash spending in hotels started to improve gradually in Tbilisi, with QTD decline at -57%. In the same period, the decrease was more moderate for hotels in regions, with change standing at -42% relative to 2019. Non-cash spending is recovering swifter in large hotels (>120 rooms), down by -17% in May relative to 2019. Improvement is less visible for small hotels, hostels and guesthouses, with decrease standing at -67%”, the report reads.
According to TBC Capital, recovery is more evident in Adjara and Kakheti, dynamics have also noticeably strengthening in Tbilisi and Mtksheta – Mtianeti.
“In Batumi, recovery of non-cash spending in hotels is largely attributable to activation of overnight visits, mostly from Israel and Ukraine. For Kakheti and Mtskheta-Mtianeti, with increasing arrivals, strengthened dynamics is further supported by domestic tourists, driven by close distance from Tbilisi. Hotels in Tbilisi are recovering more gradually and at a steady rate. Recovery of non-cash spending is visible but slow for hotels located in other regions”, the report reads.
