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.
Real estate and hospitality (culture) in Georgia
Over recent years, Georgia has seen a dynamic growth of international visitors. Georgia received only 2 million international visitors in 2010, but in 2020, the number of visitors reached a record high of 9.4 million (7.8 % y/y growth). Taking into consideration the fact that the population of Georgia is only 4 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 2020 was 6.2 nights and average spending per day above USD 641, and since the 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 2020.
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), 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 2020.
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 interest rates for new projects, franchise/management contracts, consulting services.
To get more information about the best investment opportunities, Georgian news, and consult with our experienced consultant please do not hesitate to contact us at Avageorgia.ge and Get in touch with us.