Invest in Georgian real estate and tourism industry

Over recent years, Georgia has seen a dynamic growth of international visitors in the tourism industry, Georgia received only 2 million international visitors in 2010, but in 2019, the number of visitors reached a record high of 9.4 million (7.8 % y/y growth).
People sometimes characterize culture as a choice between old and new, between classical or pop, great heritage, or modern art. Nevertheless, in Georgia it is not one or the other, it is both.

Invest in Georgia real estate and tourism industry

Taking into consideration the fact that the population of Georgia is only 3.7 million people, it is clear that the country is quickly becoming a very popular touristic destination. Due to the high demand and occupancy rates, the number of international brand hotels is rapidly growing in Georgia. The average duration of stay of international travelers in 2019 was 6 – 2 nights and average spending per day above $600, and since they share of visitors from higher spending countries increases, average spending is expected to continue rising. The number of visits from EU countries increased by around 22% in 2019.

Over the last 7 years, the occupancy rate for all types of hotels has been approximately 65%. Growth of key performance indicators, such as Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR), and hotel occupancy rates confirm the attractiveness of investment opportunities in the hospitality and real estate sector of
Georgia. An unprecedented occupancy rate of 77% was observed in Tbilisi during August month 2019.

Georgia offers considerable potential to develop beach resorts, medical and wellness destinations, winter-ski resorts, and four-season destinations. To further support the growth of the sector, the Georgian Government introduced a new incentive program for the hotel industry development in the regions of Georgia. New instruments include
co-financing of the interest rate for new projects, franchise/management contracts, and consulting services.

Tbilisi is the capital of Georgia and the key destination for tourists and business travelers. The city has monuments, castles, historical houses, churches, theatres, and authentic festivals. The number of multinational companies setting up South Caucasus and CIS headquarters in Tbilisi is increasing steadily, which ensures Tbilisi’s position as a regional business hub.

The city benefits from growing international, regional, and local visitors. Over the last 5 years, annual hotel occupancy rates in Tbilisi have been above 70%. Following international brand hotels operate in the city: Biltmore, Radisson, Tbilisi Marriott, Courtyard Marriott, Holiday Inn, Aparthotel Citadines, Best Western Tbilisi, Mercure, Hotels & Preference, Moxy and the upcoming projects include Park Inn by Radisson, Radisson Red, Radisson Blu Telegraph, Hilton Garden Inn, Rixos, Intercontinental, Hyatt Regency, Pullman Hotels & Resort.

Tbilisi International Airport has around 120 flights per week through 16 different airlines, including Turkish
Airlines, Georgian Airlines, Lufthansa, Qatar Airways, Air Baltic, etc. Tbilisi International Airport received the largest number of travelers compared to other Georgian Airports –1.5 mln in 2019. Additionally, in 2019, Ryanair, one of Europe’s low-cost and most popular airlines, also entered Georgia and launched flights from Tbilisi and Kutaisi airports.

To be able to get more information about investing in Georgia please do not hesitate to contact our experienced consultant in Avageorgia.ge