In June 2024, the average price of high-budget hotels reached USD 148, a slight 4% increase compared to June 2023. At this price level, the occupancy level in June 2024 increased significantly and reached 70% - a 11 pp jump compared to June 2023, - according to TBC Capital.
In 6M 2024, the international travel receipts grew by 5.2% annually and reached USD 1,898 million, surpassing 2019 level by 24%. Q2 2024 exhibited stronger growth in terms of revenues compared to Q1 2024. The countries that contributed to this growth were Israel and Saudi Arabia. It is notable that travel receipts from Armenia and EU&UK decreased in Q2 2024 compared to Q2 2023 by 12.7% and 3.2% respectively.
Turkey and Russia made up 35% of total international receipts in 6M 2024, Azerbaijan and Armenia make up a moderate 7% . As travel from Saudi Arabia and Israel continues to increase, so do travel receipts and their shares in total revenues from international visitors.
In 6M 2024, number of international visitor trips reached 2,529,517, with annual growth reaching 6.3%, which is lower compared to annual growth registered in Q1 2024 (8%). In terms of recovery to 2019 levels, visitor trips recovered by 83% in 6M 2024, whereas recovery in Q1 2024 was higher – 87%. Large scale social unrest and consequent demonstrations held in April and May are major reasons for the slow down.
There is a notable difference between the countries by recovery levels. Azerbaijan, Armenia, and Russia still lag behind their 2019 levels, with Azerbaijan being at the lowest point, 16% as land borders remain closed and impede travel between Georgia and Azerbaijan. Middle East and Israel have stayed on growth track, surpassing 2019 levels by 51% and 64% respectively. As for the EU&UK, the region has fully recovered to its 2019 level.
