Turnover in hotels and restaurants increased 17.5% y/y to US$ 553.8mn in 2016, according to Geostat’s annual figures. Turnover reached US$ 271.7mn in 1H17, as strong visitor growth has boosted hospitality sector revenues. The sector has also posted significant gains in employment, with over 37,000 people employed in the hotel and restaurant industry in 2016.
Branded hotel supply outside of Tbilisi is set to increase significantly in coming years. Adjara Group Hospitality plans to open a 100-room Rooms Hotel in Kokhta-Mitarbi, the mountain resort near Bakuriani, which opened to visitors last season. With locations in Batumi and Sagarejo also in the pipeline, the Rooms brand could potentially have a portfolio of five hotels across Georgia by 2019.
The Agency of Protected Areas has published visitor statistics for 9M17. The number of visitors to protected areas was up 32.7% y/y to over 856,000 in 9M17 and already surpassed the 2016 annual figure. The number of domestic visitors increased 30.3% y/y to nearly 486,000, while the number of international visitors was up 36.0% y/y to nearly 371,000.
The number of international arrivals was up 20.9% y/y to 0.76mn in September 2017. Out of the top four source markets, there was strong growth from Armenia (+11.8% y/y), Azerbaijan (+15.6% y/y), and Russia (+32.0% y/y). The number of visitors from Turkey also increased (+10.5% y/y) for the third consecutive month.
The tourist category continues to drive arrival growth in September 2017. The number of overnight visitors (‘tourist’ category) was up 24.8% y/y and accounted for 49.9% of international arrivals. Same-day arrivals and transit visitors posted 12.7% y/y and 22.6% y/y growth rates, respectively. The number of tourist arrivals in 9M17 is up 28.8% y/y to 2.78mn, already higher than the number of tourists in Georgia in all of 2016.
