Otar Nadaraia, Chief Economist at TBC Group, noted that Georgia’s tourism sector, which peaked during the winter season, is currently experiencing a slowdown. Speaking on BMG TV’s program Analytics, he highlighted that the most noticeable decline is in Batumi, with similar trends in Kutaisi, while overall numbers remain near 2025 levels.
Nadaraia emphasized that while the slowdown is evident, it does not yet constitute a sharp drop. Flight volumes in November–February had shown strong growth, but recent figures indicate stabilization, particularly at Tbilisi Airport. He also stressed that sentiment and currency conversions are critical, noting that the National Bank previously intervened heavily, purchasing over $400 million in February to stabilize the lari.
The initial wave of conversions, estimated at around $300 million, has passed, and the currency market is now balanced. Current exchange rate movements for the dollar and euro remain neutral.
However, Nadaraia warned that the ongoing slowdown could negatively impact Georgia’s economic growth this year. The ultimate effect will largely depend on how long regional conflicts persist and how they influence investor and tourist confidence.
