31.Jul .2022 11:42

Galt & Taggart Update on Tourism Dynamics

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Total international visitors stood at 387,781 persons – up 164.4% y/y and accounting for 53.3% of 2019 level, highest in two years.

According to Galt and Taggart, Georgia’s leading investment bank, this growth was predominantly driven by an increase in tourist arrivals recovering at 64.1% of 2019 level (up from 62.3% recovery in previous month).

Recovery in same-day trips slightly accelerated, recovering at 33.3% of 2019 level (up from 28.6% recovery in previous month) reflecting gradual easing of regulations of neighboring countries.

Top country by arrivals was Russia (23.3% of total), followed by Turkey (16.0%), and Armenia (16.0%). Notably, the number of visitors from Kazakhstan, Belarus and Uzbekistan surpassed 2019 levels. Tourism revenues stood at a post-pandemic record high US$ 301.7mn in June-22, up almost 4 times y/y and accounting for 88.7% of 2019 level (down from 95.6% in previous month).

According to Galt and Taggart, this tourism revenue figure also captures migrants' impact (from Russia, Belarus, Ukraine), arriving in Georgia after the Russia-Ukraine war started.

Galt and Taggart estimate that around 80,000-120,000 visitors relocated in Georgia for longer term than regular tourists. Russia accounted for 22.7% of tourism revenues in June-22, followed by EU countries (10.1% of total), Belarus (9.3%) and Turkey (9.3%).

Galt and Taggart expect tourism revenues to recover at 85% of 2019 level in a baseline scenario, however considering strong figures in May-June and migrant impact, full recovery is also likely.

Airbnb demand recovery also continued in June-22 (70.8% of June-19 levels), reflecting tourism recovery dynamics like in previous months. Hotel demand recovery also continued in June-22, with hotels in Adjara benefiting most.