Hotel bookings continue to grow in Batumi even off-season

Investment company Galt & Taggart has published a report on the results of the Georgian tourism industry in the fourth quarter and throughout 2024. Analysts noted a sharp increase in indicators in Batumi hotels and predicted an increase in the flow of visitors and income in the country as a whole in 2025.

Fourth quarter

Traveller visits. The number of international visitors in the fourth quarter of 2024 increased by 5.1% year-on-year to 1.4 million. The figures for the main leisure segment increased by 8.4%, while for same-day visitors they decreased by 4.8%. The number of tourists has fully recovered from the Covid pandemic, reaching 100.8% of the level in the fourth quarter of 2019. The total number of visits in 2024 was 100.2% of the results of 2019.

The publication notes that the recovery in tourist flow for the full year was largely due to the strong performance of the first quarter of 2024 (recovery by 106.4%). The increase in visitor numbers in October-December was mainly due to a large number of arrivals from Israel and Russia - an increase of 136.1% and 15.4% year-on-year was recorded. Guests from India and China increased significantly (44.7%). The majority of travelers came from neighboring countries (60.9%), followed by the EU (6.4%), Israel (5.8%), India and China (4.2%) and Kazakhstan (2.3%).

Tourism revenues in Q4 2024 amounted to USD 963.7 million, an increase of 10.3% compared to the same period in 2023. The largest increase was recorded in October-November. Overall, revenue growth was positively impacted by Israel (+128% year-on-year), other non-traditional markets (+18.9%), and Russia (+2.5%). The main sources of tourism revenue in the fourth quarter were Russians (18.2%), Turks (13.9%), EU residents (11.9%), and Israelis (11.8%).

Hotels

Tbilisi saw hotel performance decline in Q4, while Batumi saw year-on-year growth. Average occupancy increased to 52.5% from 36.9% in the same period of 2023. ADR remained stable. According to analysts at Galt & Taggart, this was driven by a strong increase in arrivals from the Middle East, which accounted for more than half of the total number of overnight stays sold in the city.

The number of hotels in Georgia increased by 2.4% year-on-year to 1,212 units, while the room stock increased by 4.7% year-on-year to approximately 37,000. Demand for Airbnb increased by 9.5% to 151,300 total nights booked in Tbilisi from October to December, driven by an increase in arrivals from new markets. In Batumi, the number of nights booked increased by 20.8% in the fourth quarter to 56,200.

Airbnb prices decreased in Tbilisi, where quarterly ADR was US$50 (-4.6% y/y), and increased in Batumi to US$37 (+13.4% y/y) in Q4 2024.

According to the Georgian government, in 2012 there were less than 800 hotels in the country, and in 2024 there were already almost 2,400. The number of beds increased from 23,000 to 108,000.

Figures for 2024

The number of international visitors, according to Galt & Taggart, reached 6.5 million (+4.6% y/y) in 2024. The indicators for tourists (a total of 78.9% of the total number of visitors) increased by 9% to 5.1 million. One-day guests decreased by 9.2% to 1.4 million.

The growth in the number of tourists was driven by Israel, China, India, Iran, Saudi Arabia and Central Asia. The increase in visits from Asian markets was supported by the expansion of flight programs with direct flights and the liberalization of the visa regime with India and China.

Recall that according to the National Tourism Administration, more than 7.3 million visits by international travelers were recorded in 2024, which is 4.2% more than in 2023. The figures for arrivals for tourist purposes in official statistics are approximately the same - 5,091,732.

Russia remained in first place in terms of the number of visits – over 1.4 million, Turkey was in second place – over 1.3 million, and Armenia was in third place – 948,299. Israel took fourth place in the ranking of countries by arrivals with an annual growth of 43.3% – from 217,065 in 2023 to 310,982 in 2024. Azerbaijan rounded out the top five – 219,356 (+9.8%).

In the TOP-15 for the most significant growth, the National Tourism Administration highlighted China - by 83.4%, from 48,304 to 88,583 visits. The number of trips from India increased by 46.8% - to 124,335. Guests from Uzbekistan noted an annual increase of 23.4% - to 64,259, Saudi Arabia by 21% - to 88,298. Also among the fifteen leaders was Germany with an increase of 14.3% - to 78,644. In general, the tourist flow exceeded the figures from 2020.

Tourism revenues reached US$4.4 billion in 2024, an increase of 7.3% year-on-year. This figure exceeds the level of the previous 14 years.

According to the National Bank of Georgia, in 2010, the tourism sector brought in only $659 million, in 2013 it was already more than $1.7 billion, in 2016 - $2.1 billion, in 2019 - $3.2 billion. The figures dropped sharply during the pandemic, but in 2022 they exceeded the pre-COVID level, reaching $3.5 billion. The last four years have seen rapid growth, the tourism sector has reached a new level in all sectors.

The Galt & Taggart report notes that revenue growth was driven by the Middle East, in particular Israel (+41.6% y/y), Iran (+17.9% y/y) and Saudi Arabia (+21.2% y/y), as well as Asian markets led by India and China.

If we judge not by the rate of increase, but by the volume of receipts recorded by the National Bank, then Russia is in the lead - $850 million, followed by Turkey - $612 million. Israel has broken into third place - $435.5 million. Then come Azerbaijan ($168.5 million), Armenia ($157.4 million), Iran ($151 million). The TOP countries also included Ukraine - $149 million, Saudi Arabia - $122.1 million and Belarus - $96.3 million. The indicators of the EU countries, including the UK, increased by 4% - to $571.1 million.

Prospects for the Georgian tourism industry

The baseline scenario of the company's experts predicts 5.3 million tourist visits in 2025, compared to 5.1 million in 2024. In the pessimistic scenario, no decrease in arrivals to Georgia is expected, since the number of travelers from the Middle East and Asia will continue to grow. In addition, the possible opening of the land border with Azerbaijan will be a positive factor for tourism. Galt & Taggart analysts assume that tourism revenues in Georgia will increase by $ 100 million - from 4.5 billion in 2024 to 4.5 billion in 2025.

According to the National Tourism Administration, more than 300 hotels will open in Georgia by 2028. The number of rooms will reach 18,778, and the number of guests - 37,101. Among the new hotels, 22 will be divisions of international hotel brands, they will appear in Tbilisi, Batumi, Abastumani, Sighnaghi, Kobuleti, Tskaltubo, Ganmukhuri, Borjomi, Sioni, Gurjaani, Martvili and Oni.

In 2025, 17 new hotels are planned to open in Georgia. Among the largest projects are Hilton Garden Inn Adjara and Hilton Tbilisi (200 rooms each), Hotel Sololaki Hills (188 rooms), Ambassador Batumi (182), Paragraph Golf & Spa Resort Tabori Hill (177). The most anticipated event is the opening of the first facilities of the Wyndham Grand Batumi Gonio hotel complex. This is a project in Batumi with 1,055 rooms in hotels of different formats - family residences, hotel townhouses and villas with the first all-inclusive 5* resort infrastructure in Georgia.

Abu Dhabi-based Eagle Hills Properties LLC has announced two major projects to be implemented in Georgia, worth around $6 billion. It is the largest developer in the Middle East, implementing projects in the Persian Gulf, Europe and Africa. The company is also actively developing Europe.

The projects in question are:

Krtsanisi Park in Tbilisi is a multifunctional residential and commercial complex on the waterfront, occupying an area of ​​590 hectares. Of these, 170 hectares will be allocated for parks and landscaping. Residential premises, retail areas and a modern spa and wellness center are planned;

Gonio Marina in Batumi – construction is planned in the resort area of ​​Gonio, on an area of ​​260 hectares. There will be branded residences, hotels, shopping areas, public parks and a yacht marina.

The Georgian government program notes that state investment in tourism will exceed 1 billion lari by 2028. Private investment in the hotel business is also expected to grow, with a volume of about 1 billion lari (more than $355 million). The number of tourists in Georgia by this time, according to government forecasts, will reach 11 million, and revenues from the sector will grow to $6.5 billion.

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