Issue 38: Visitors in Georgia – 2014

In 2014, the number of visitors is 101.2 thousands more compared with the corresponding indicator in 2013. The most of the visitors (86.2%) entered Georgia from neighbouring countries (Turkey, Armenia, Azerbaijan and Russia) via land border.

In this period, the number of visitors entered Georgia via land border, as well as airplanes increased ( 0.8%; 9.4%) compared to the corresponding indicators in 2013.

In the first three quarters of 2014, the exports of tourism services (4.6% ) as well the imports of tourism services increased (1.3%; ). In the same period the tourism sector value-added also increased (11.8%).

The number of visitors to Georgia is very important in terms of the foreign currency inflow, as well as for further development of the tourism sector. In 2014 5.5 mln. visitors entered Georgia. This indicator exceeds (1.9%) the indicator of 2013. The number of visitors increased in the first (7.6%) and in the third (2.2%) quarters, while it declined in the second (-0.4%) and in the fourth (-0.4%) quorters compared to the corresponding periods in 2013.

In this period, the structure of visitors by categories is the following: 24 hours and more¹ (40.4%), transit (20.2%) and other categories² (39.4%), which includes the visitors, who entered and left the country from the same border and transport, but stayed in the country less than 24 hours. In 2014 the number of visitors, who stayed 24 hours and more and the number of visitors of other categories increased (7.4%; 1.3%), while the number of transits decreased (-7.0%).

The trend of visits in the period of 2012-14 indicates, that the highest number of visitors enter Georgia in July and August. In 2014, 26.3% of the visitors entered the country during mentioned two months, and the highest increase of the number of visitors was in July (9.2%) compared to the corresponding months in 2013.

Source: Georgian National Tourism Administration

Source: Georgian National Tourism Administration

Source: Georgian National Tourism Administration

In 2014, the structure of visitors by the border type is the following: land (86.2%), air (11.7%), railway (1.3%) and sea (0.8%). The structure is similar to the structure in 2013. The number of visitors, who entered the country via railway, air and land increased respectively (13.5%; 9.4%; and 0.8%) , while the number of visitors who entered the country by the sea decreased (-2.0%).

The arrivals of visitors increased in Kutaisi and Batumi, as well as Tbilisi international airports (21.6%; 19.1%; 6.5%). Among them, 76.8% (492.0 thousands) visitors arrived from Tbilisi International Airport, 13.0% from Kutaisi (83.4 thousand) and 10.2% (65.5 thousand) from Batumi International Airports.

Taking into account that the largest number of visitors (4.7 mln.) entered teh country from the land border, it is not surprising, that in the structure of visitors by countries, the highest shares have the neighbouring countries: Turkey (26.1%), Armenia (24.1%), Azerbaijan (23.3%), and Russia (14.7%). Among them, the number of visitors from Azerbaijan, Russia and Armenia increased (19.2%; 5.6%; 2.3%;), while the number of visitors from Turkey decreased (-10.1%).

The money spent by the visitors in Georgia is one of the most important sources of foreign currency inflow in the country.

In the first three quarters of 2014, the export of tourism services (e.i the inflow of the foreign currency) expanded (4.6%; 61.2 mln. USD). In this period the import of tourism services (e.i the outflow of foreign currency) also increased (1.3%; 2.8 mln. USD), but slightly.

In the first three quarters of 2014, the volume of the export of tourism services equals 1 394.8 mln. USD, while the volume of the import of tourism services equals only 219.9 mln. USD.

Source: National Bank of Georgia

Source: National Statistcs Office of Georgia

In the first three quarters of 2014, the total value added of the tourism (accommodation places, food places, transport and travel companies) increased (6.3%; 69.0 mln. GEL) compared to the same period in 2013 and equals 1 170.0 mln. GEL. The share of the value added of the tourism sector in the total Gross Domestic Product (GDP) of the corresponding period is 6.2%, which exceeds the indicator of 2013 (0.2 percentage points).

In 2014, the value-added of the tourism sector increased in the first (16.1%; 43.4 mln. GEL), as well as in the second (10.7%; 39.6 mln. GEL) and in the third (9.6%; 35.0 mln. GEL) quarters.

FDI in Tourism Sector, 2012-14

In the first three quarters of 2014, the total Foreign Direct Investments (FDI) in the fields (hotels and restaurants, transports and communications), which facilitate the development of the tourism sector, increased (2.6 times; 164.1 mln. USD) compared to the same period in 2013 and equals 264.1 mln. USD, which is 28.6% of the total FDI in Georgia in this period.

The FDI increase in both, the hotels and restaurants (24.6 mln. USD) and the transports and communications (139.6 mln. USD) sectors. Expanding the volume of FDI in these sectors will have a positive effect on the development of these industries, hence will also facilitate the tourism sector.

 Source: National Statistics Office of Georgia

 1 According to the definition of the world tourism organization of UNO visitors are classified as tourists, if they leave their place for more than 24 hours and don’t stay there for more than 1 year.

2 International travelers, who leave country and return to their country with the same border type and don’t stay in the other country for more than 24 hours.