Business
Georgia's Tourism Revenue Drops 13.3% to $1.1bn in Q2 as Visitors Fall 5.2%
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Georgia's tourism sector had a weaker second quarter, with both visitor numbers and spending below last year's levels. International visitors numbered about 1.3 million in April–June 2026, down 5.2% year on year, while tourism revenue fell 13.3% to roughly GEL 3 billion ($1.11 billion), according to Geostat figures reported by JAMnews on July 30.
Average spending per visit dropped 9.2% to GEL 1,922.1, about $712. The gap between the fall in arrivals (5.2%) and the larger fall in revenue (13.3%) shows that visitors are spending less each, not just coming less often.
Who is coming
Russia remains Georgia's largest source market with 328,900 visitors, or 25.1% of the total. Türkiye accounts for 16.9% and Armenia for 10.8%. Together the three neighbours supply more than half of arrivals, which makes the tourism sector sensitive to regional currencies, flight availability and border conditions.
The Q2 slowdown arrives against an economy that is otherwise growing quickly. Georgia's GDP expanded 7.8% in the first half, and the Asian Development Bank recently raised its 2026 forecast to 6.3%, as summarised by Georgia Today. That growth has leaned on ICT, transport, finance and manufacturing rather than on tourism.
Business implications
For hotels, restaurants and tour operators, a 13.3% revenue decline in the peak spring-summer transition is material. Lower spend per visit points to weaker demand in higher-margin categories such as accommodation and entertainment, and to more price-sensitive travellers. With inflation at 5.6%, operating costs are rising at the same time as revenue per guest is falling, squeezing margins.
The effect on the wider economy is cushioned by the services mix, but tourism is a significant source of foreign currency. A sustained drop would show up in the current account and in lari demand. The National Bank of Georgia has kept its refinancing rate at 8.25%, partly because energy costs are lifting prices.
What to watch next: third-quarter data covering the peak summer season, which will show whether the decline narrowed, and whether Georgia's efforts to diversify source markets reduce reliance on Russia and Türkiye. Operators that can raise spend per visit through higher-value products will be better placed than those competing on volume.
