Georgia is no longer viewed as an inexpensive destination by many foreign travelers, according to Tamar Bagdavadze, founder of Coste Hotel Group. Speaking to BMG, she said rising prices for restaurants, tours, and other services have changed the country’s image, with returning visitors often surprised by the higher cost of travel.
Bagdavadze noted that many tourists, particularly repeat visitors, now compare Georgia’s prices with those of other European destinations. She added that higher airfare and increased costs for everyday services have reduced the country's traditional price advantage.
Despite these challenges, she said the hotel sector has seen a stronger performance since May, following a difficult start to the year marked by booking cancellations linked to regional tensions. Hotel occupancy has remained high through May, June, and July, with growing interest from Europe, Armenia, and Slavic countries. Guests are also increasingly spending on additional services such as dining and city tours.
According to the National Tourism Administration, international visitor trips to Georgia fell 4.5% in the second quarter of 2026, while tourist visits declined 2.7% year-on-year. The sharpest drop came from Iran, where visits fell by nearly 49%, followed by a 14% decline in visitors from Israel, amid ongoing regional conflict.
