Georgia’s tourism sector is facing pressure from a decline in high-spending visitors and rising operating costs. Germane Chelidze, founder of Tours and Tickets, said the structure and spending patterns of tourists have changed significantly, putting local businesses under financial strain.
He said arrivals from wealthy Gulf markets, including Dubai, Kuwait and Bahrain, have dropped sharply, while Saudi Arabian visitors continue to arrive to some extent. At the same time, the number of Chinese tourists has increased, but Chelidze said their spending in the wider local economy remains limited as many use Chinese restaurants and services.
The loss of high-spending visitors has directly affected tourism businesses’ revenues, while companies are also dealing with higher operating expenses. Fuel costs have been a particular concern, with diesel becoming around GEL 0.20 more expensive over the past month.
Chelidze said businesses cannot fully pass higher costs on to customers because demand remains insufficient. As a result, companies are cutting profit margins and operating on what he described as a “knife edge,” while facing continued increases in expenses such as fuel and banking fees.
