Analysis of Tourist Spending in Georgia

Tourism plays a crucial economic role in Georgia and is considered one of the primary drivers of the country’s development. In the second quarter of 2024, revenue from international travel in Georgia reached $1.1 billion, which is 8% higher compared to the same period last year. This growth highlights the increasing potential of Georgia’s tourism sector and its rising recognition, particularly among foreign travelers. Let’s explore the details and compare this situation with that of other countries.

According to research by PMCG, in the second quarter of 2024, the highest revenue was generated by Russian tourists, accounting for 19% of the total income. Turkey ranked second, contributing 16% of tourism revenue. However, in terms of spending per visit, tourists from Saudi Arabia spent the most—an average of $1,529 per visit. Israel follows, with tourists spending an average of $1,339 per visit.

The analysis of tourist spending shows that spending per visit varies significantly among tourists from different countries. Tourists from EU countries spend an average of $1,300 per visit, indicating a high level of interest and spending power. Tourists from Iran spend approximately $1,000 per visit, while tourists from Belarus and Azerbaijan spend an average of $800. Spending by Russian tourists is relatively low at $700 per visit, Turkish tourists spend an average of $500, and tourists from Armenia spend the least, at $200 per visit.

It is noteworthy that spending per visit decreased for tourists from Saudi Arabia, Israel, the EU, Belarus, Russia, and Armenia. The largest decrease in spending was recorded for tourists from Belarus (-8.7%), while Azerbaijan saw the highest increase, with average spending per visit rising by 9.6%.

During this period, tourists spent the most on accommodation (35% of total spending) and shopping (28%), indicating that the hospitality and retail sectors play a significant role in Georgia’s tourism revenue.

Tourist spending levels vary considerably across different countries, depending on economic conditions and the development of tourism infrastructure. For instance, in EU countries, tourist spending per visit is quite high. In France, one of the world’s most popular tourist destinations, tourists spend an average of $1,500 to $1,800 per visit. This high figure is attributed to France’s rich cultural heritage, high-class hotels, and other tourism services that increase spending.

Turkey, a neighboring country that is very popular among tourists, also has high tourism revenue, though spending per visit is relatively lower. Tourism is a significant part of Turkey’s economy, and the wide range of tourist services, often more affordable, contributes to a lower level of tourist spending.

In some Asian countries, such as Thailand and Malaysia, tourist spending per visit is around $1,000, linked to the availability of affordable services and low living costs. Meanwhile, in the United Arab Emirates, tourists spend a substantial amount per visit—an average of $2,500 to $3,000—due to the development of luxury hotels, fine dining, and other premium services.

Georgia’s tourism sector is growing annually, though spending per visit remains relatively low. Tourists from Saudi Arabia, Israel, and EU countries spend considerably during their visits, indicating a higher purchasing power and preference for premium services. However, tourists from other countries, especially Russia and Turkey, tend to spend less.

These figures suggest that there is still room for improvement in Georgia’s tourism sector to increase spending per visit. This could be achieved through diversifying tourism products, offering high-quality hotels and services, and attracting high-spending tourists. Additionally, improving infrastructure and creating new tourist attractions could enhance the overall experience for tourists, leading to increased spending.

In the second quarter of 2024, Georgia’s revenue from international travel reached $1.1 billion, demonstrating positive momentum in the tourism sector. However, the amount spent per visit by tourists is still quite low, particularly for visitors from Russia and Turkey. Georgia, as a tourist destination, continues to develop, but more investment is needed in infrastructure and service quality to increase the average spending per visit.

Considering global trends, Georgia’s tourism potential could grow significantly if the country improves its offerings for high-value tourists. To achieve this, it is essential to attract investments, develop infrastructure, and conduct active marketing campaigns, which will help attract higher-spending tourists and, consequently, strengthen the national economy.