G&T Forecasts a 65% Drop in Revenue from International Tourism
According to the Galt & Taggart basic scenario, international visits to Georgia will decrease by 65% annually in 2020. Revenues will be reduced by the same amount.
The challenges and needs of the tourism industry were discussed at an investment webinar organized by the Investment Bank. It was noted that the biggest damage from the tourist zones will see regions of Adjara, Mtskheta-Mtianeti and Tbilisi. The expectations of the Georgian tourism industry are pessimistic and the sector is preparing for a long crisis.
"Domestic tourism in 2020 is important to alleviate the crisis in the sector, but its weight is small, the share of local tourists in hotels is only 26%. At the same time, domestic tourism will be encouraged by the fact that in 2020, Georgians' travel abroad will be limited.
It should be noted that the measures of the Georgian government's support package are similar to those of other countries, but there is one exception - Georgia has not been stimulated by domestic tourism. Given the expected duration of the crisis, it is expected that the $ 200 million anti-crisis packages for the tourism sector will be insufficient, as we estimate that the sector will need to ease tax and banking obligations for at least 1 year. A gradual return of tourists is expected during the post-crisis period. At the first stage, it is important to focus on neighboring countries, where most of the visitors visit Georgia by their own cars, "- said in a study.
It is noteworthy that as a result of COVID-19 the number of tourists in the world will decrease by at least 58% in 2020, which is a record drop for the industry.