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Rising Tourism Numbers Do Not Translate Into Higher Profits for Georgian Businesses - Giorgidze

ალექსანდრე გიორგიძე
Natiko Taktakishvili
22.10.26 11:30
• 33

Aleksandre Giorgidze, founder of AG TRAVEL & ADVENTUR, says Georgia’s tourism growth has not translated proportionally into higher profits for businesses across the sector. Speaking to TV program Business Course, he noted that rising inflation and operating costs are limiting the benefits for travel agencies, hotels, restaurants, tour guides and drivers.

Giorgidze explained that higher fuel prices and agricultural product costs are squeezing profit margins, meaning increased visitor numbers do not necessarily result in stronger financial performance for tourism businesses. He stressed that the sector’s growing figures should be assessed alongside inflation and rising expenses.

According to the National Tourism Administration, Georgia recorded more than 6 million visits by international travelers in January–September 2026, up by 0.04% year-on-year. Tourist visits exceeded 4 million, reaching a record high and increasing by 2.3% compared with the same period in 2025.

The National Bank of Georgia reported that international tourism revenue reached $3.8 billion during the first nine months of 2026, marking a 4.4% annual increase. However, Giorgidze’s assessment suggests that rising costs are preventing many tourism-related businesses from benefiting proportionally from the sector’s growth.

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