The Role of International Tourism in Georgia’s Economic Development: Boom or Bubble?

“Tourism is the only industry that invites the world to your home and pays you for the privilege.”

 Between Asia and Europe, where empires once clashed and ancient trade corridors once met, Georgia has always been in the middle. What was once a hidden treasure for explorers and travelers is now bursting onto the global stage. The turnaround is breathtaking. From 2023 to 2025, not only did Georgia recover from the shock of the pandemic, but it also unleashed a tourism boom that reshaped its economy.

 But since the growth is accelerating, another question raises its head deeper: Is this sustainable growth or the early signs of a weak bubble? 

In 2023, Georgia welcomed approximately 6.2 million foreign tourists, representing around 80% of its pre-pandemic visitor numbers. Recovery was already nothing short of phenomenal, but it didn't stay at that level either. In 2024, it increased to 7.37 million, representing a 4.2% year-on-year increase. Most importantly, over 5 million of them were overnight stay tourists, reflective of widespread engagement, not just border crossings or brief transits.

By mid-2025, Georgia had already recorded over 2.8 million international tourists and earned over $2 billion in half a year. By December 2025. At this pace, the year will probably end with $4.6 billion in tourism earnings, an all-time high.

 For a country with only 3.7 million people, the numbers are staggering. But they're measured. While overseas tourism in 2023 had only reached around 88% of where it was before the pandemic, Georgia was well ahead of many of the world's superpowers. At a growth rate of nearly 37% since 2022, it outpaces that of Italy, Greece, and even some of the larger Southeast Asian resorts. It's rebounding, yes, but it's shooting ahead. 

What’s most interesting about Georgia’s tourism growth is the shift in the origin of its visitors. For many years, the country was dependent on neighboring Russia, Turkey, and Armenia, which still share a large percentage. Russians made up 22% of overall arrivals in 2024, due in part to the Ukraine war and visa-free travel. Georgia's clientele, however, is getting more diversified. Israel has led the charge, with over 310,000 visitors in 2024, an unprecedented 43% increase in visitor arrivals from last year. 

China and Indian visitors are also on the rise, following relaxed visa restrictions and enhanced air connections. Indian arrivals increased by more than 30% in 2025, while Chinese arrivals rose by up to 83%. And on top of that, include the growing numbers from the UAE, Saudi Arabia, Oman, and Qatar, and it's clear: Georgia's no longer a Caucasus insider tip; it's a full-blown global destination. But what exactly is everyone here for? 

Because of a rare mix of authenticity, affordability, and charm. 

Tbilisi, though, with its patchwork of ancient churches, Art Nouveau buildings, crumbling balconies, and nascent cafe scene, remains the center of the Georgian universe. Cosmopolitan, eccentric, and rich with history, it is. 

Batumi, on the other hand, offers contrast: a tacky, recently gentrified beach resort town where casinos, high-rises, and subtropical beaches attract summer tourists, mostly regional and Gulf-based. 

But the most magical magic is further away. Amongst the mountain landscapes of Svaneti and Kazbegi, travelers hike along alpine trails, pass medieval towers, and stay overnight in family-owned guesthouses where dinner is still cooked over wood stoves. In Kakheti, Georgia's wine region, tourists taste amber wines fermented in buried clay pots, a UNESCO-approved tradition predating any vineyard in France or Italy. 

Even the long-abandoned region of Javakheti is catching up, luring eco-tourists to its volcanic lakes, bird flyway wetlands, and blended Armenian-Georgian cultural legacy. But this growth has its risks. The top-line figures are lovely, but the growth is slowing down. The double-digit growth rates of the last few years are slowing down.

 In 2024, same-day arrivals from neighboring nations fell by 9%, and in some quarters, total tourism growth fell under 5%. Furthermore, the sector is rather vulnerable to political shocks. In November 2024, the country was shaken by widespread anti-government demonstrations. Hotel bookings collapsed. In the capital city of Tbilisi, occupancy rates plummeted to a low 20% during December, a dizzying drop that showed the precarious link between politics and tourism. More basic problems exist as well. 

Can Georgia create tourism in a sustainable way? 

Residents of Batumi and Tbilisi are already complaining about expensive rents, gentrification, and mass tourism. In the mountains, roads and villages are filling up with unmanaged traffic, threatening fragile ecosystems. Infrastructure, especially roads, sanitation, and low-cost transport, lags behind supply. While in Europe, budget airlines carry 20–35% of passengers, in Georgia, it is less than 5%, limiting their popularity among youth and budget travelers. 

And then there is the question of culture: what happens to the soul of the country as Georgia becomes a global brand? 

Will Svaneti be left alone when ski resorts run rampant? 

Will hippie Tbilisi withstand the exogenous tide of commercialization?

 Outside of all these concerns, economic facts are difficult to refute. Tourism directly accounted for 7.2% of Georgia's GDP in 2022, and its overall impact (including indirect effects) is more than 25%. It now generates over a third of all export earnings. Average length of stay has increased from 4 nights in 2019 to over 6.5 nights, and international visitor expenditure per day continues to increase. It is dependent on small enterprises, from guesthouses and tour operations to local artists and winemakers. 

To many rural towns, it's the main alternative to migration or unemployment.

 Boom or bubble, then?

The signs all point to a boom. What makes the country appealing? Its authenticity, its affordability, and its openness have to be preserved. This requires some serious investment: in infrastructure, in environmentally sound tourism, in environmental protection, and most of all, in political stability. 

The future of Georgian tourism is as much a function of governance as geography. Tourism is no longer an occasional bonus. It is the economic heartbeat of Georgia, an industry that makes money, creates diplomacy, shares culture, and stimulates rural communities. The challenge now is to nurture the heartbeat without letting it beat so fast that it becomes out of control. 

If Georgia wins that contest, it won't just be a warm spot. It will be a model of how small nations can use tourism not just to grow but to thrive.