In Tbilisi, both hotel occupancy and room rates increased this year compared to the same period last year. In Batumi, occupancy declined, while room rates continued to rise.
As for broader tourism dynamics, Georgia hosted 1.2 million international visitors in the first quarter of 2026, generating $829.8 million in tourism revenue.
For a clearer picture, let’s take a closer look at the data presented in Galt & Taggart’s report, which outlines market trends for Q1 2026.
Tbilisi & Batumi: Hotels VS Airbnb
Nearly 60% of Georgia’s accommodation infrastructure is concentrated in Tbilisi and Adjara.
Tbilisi / Hotels – In the first quarter of 2026, hotel KPIs in Tbilisi improved in terms of both occupancy and pricing.
Specifically, the average occupancy rate reached 43%, compared to 39% in Q1 2025 (meaning that, on average, 43 out of 100 rooms were occupied during the period).
As for pricing, this also increased. The average daily room rate (ADR) stood at $89 in Q1 2026, up from $83 in Q1 2025. According to the report, this growth was driven by strong arrivals from the European Union and solid performance in the first two months of the year.
Batumi / Hotels – In Batumi, however, the trend differs. In Q1 2026, the average occupancy rate declined to 31%, compared to 47% in Q1 2025.
At the same time, room rates increased, with ADR reaching $81, up from $74 in the same period last year. This decline in occupancy is largely attributed to Batumi’s high dependence on visitors from the Middle East.
Tbilisi / Airbnb – Short-term rentals via Airbnb in Tbilisi increased by 24% year-over-year, reaching 319,000 booked nights in Q1 2026.
The average daily rate remained broadly stable at $41, compared to $40 in Q1 2025.
Batumi / Airbnb – In Batumi, Airbnb demand grew by 7% year-over-year, reaching 157,000 booked nights in Q1 2026.
However, the average daily rate declined to $28, compared to $31 in the same period last year.
International Visitors
International arrivals saw a slight decline of 0.2% year-over-year, totaling 1.2 million in Q1 2026. At the same time, the number of overnight tourists increased by 4.0% to 1.0 million, while same-day visits dropped significantly by 19.0%, reaching 0.2 million.
Growth in visitor flows from Russia (+5.2%), Türkiye (+5.8%), Ukraine (+24.5%), China (+48.6%), and the European Union (+30.2%) helped offset notable declines from the Middle East, India, Armenia, and Azerbaijan.
Visitor numbers from Israel decreased by 17.5%, while arrivals from Iran fell sharply by 48.8%, largely reflecting the ongoing regional tensions and their impact on air connectivity. Additionally, arrivals from India declined by 29.5% year-over-year.
A closer look at the data shows that Georgia’s tourism sector remains heavily dependent on neighboring countries, with more than half of all visitors — approximately 54% — coming from Türkiye, Russia, and Armenia.
The breakdown by country is as follows: Türkiye accounts for 20.4%, Russia 19.7%, and Armenia 13.7%, followed by Israel (5.7%), Azerbaijan (5.1%), Ukraine (2.6%), Kazakhstan (1.8%), China (1.8%), and India (1.6%), while other countries collectively make up 27.6%.
Revenues
Tourism revenue posted a modest year-over-year increase of 0.5%, reaching $829.8 million in Q1 2026.
The growth was primarily driven by higher inflows from the European Union (+36.4%), Türkiye (+12.2%), Ukraine (+34.2%), and Saudi Arabia (+47.6%), reflecting overall visitor trends.
In contrast, several other Middle Eastern markets recorded a decline in contribution during the same period.
Source: Galt & Taggart
Image generated by AI.
If you are considering investing in real estate in Georgia, Kedaro Group is ready to provide you with professional guidance.
Contact us:
– Email: kedarogroup@gmail.com
– Phone: +995 593 618 181
– Address: 18/22 G. Atoneli Street, 0105 Tbilisi, Georgia
