Page 51 - GEORptDec19

“tourist” was 438 805, 7.8% up year on year.
The number of visitors from EU member states significantly increased: with Estonia at + 79.1%, France + 51.4%, Germany + 43.6%, Poland + 43% and the UK + 31%. Also particularly observed were logged increases from the following countries: Kazakhstan + 139.4%, Kyrgyzstan + 66.7%, China + 58.9%, Israel + 56.9%, and Saudi Arabia + 44.9%.
Over the whole first 10 months of the year, over 8mn travellers visited Georgia, 6.8% more than a year ago.
The revenues generated by Georgia’s tourism industry will still rise this year albeit at a slower rate than previously expected — by 4.3% y/y to $3.4bn — despite the Russian flight ban enforced in July, according to a Tourism Market Watch report by Galt & Taggart investment bank.
Direct flights from Russia were banned by the Russian authorities earlier this year amid a worsening of relations between the two countries. However, direct flights between Georgia and Russia might resume soon, the G&T report reads, mentioning statements from Russian government representatives.
The revised forecast accounts for a negative downgrade from the 12.3% y/y advance in revenues to $3.6bn envisaged before the Russian flight ban. The $0.2bn revision in the forecast for Georgia’s revenues from international tourism is equal to 1.2% of GDP. For comparison, the World Bank’s Europe and Central Asia Economic Update report issued October 9 estimates that the flight ban would cost Georgia 0.6% of GDP in value added terms and including entire impact on the country’s economy.
However, G&T’s projections appear to conflict with preliminary data from the National Tourism Administration showing a decline in tourism revenues this year. International travel revenues in Georgia amounted to $2.2bn in January-August, down 0.4% y/y. In the peak summer month of August alone, revenues from international travel to Georgia amount to $396mn, down 10.6% y/y, the National Tourism Administration said.
G&T also forecasts the number of tourist arrivals in Georgia will increase by 5.2% y/y to 5mn in 2019.
In September 2019, total international visitors (tourists and day trippers) were up 2.7% y/y to 0.78mn people. Out of the total, Georgia hosted 0.53mn tourists (up 0.6% y/y) and 0.24mn day trippers (up 7.7% y/y) in September.
The slow arrival growth in September, as in the two previous months, reflected significantly reduced arrivals from largest source markets, Russia and Iran.
51​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com