EMEA Hotel Market
Hotel markets across the EMEA differ and are highly dependent on macro-economic prosperity and, at a local level, on tourism arrivals. Eurostat – yearly recording the number of overnight stays – saw arrival numbers between 2007 and 2009 fall by an average of 2.2% in the European Union. Although there were countries that saw increases in hotel tourism, this was dominated in the nights spent by domestic visitors, reflecting the substitution of trips abroad for holidays in their own country. Between 2009 and 2011 there was an overall increase of 4.0% of hotel nights per year with Eastern Europe regions showing the greatest increases. Colliers International forecasts this trend of increasing hotel nights to continue across Europe due to the growth of world tourism as international tourist arrivals are expected to increase by more than 50% until 2030 (UNWTO). Middle East and Africa are expected to double their arrivals by 2030
Following the World Tourism Organisation, arrivals in emerging countries in the EMEA region are forecast to grow 4.4% a year until 2030. This is double the pace predicted for advanced economy destinations. Investors in hotels are advised to also focus on these regions as arrivals are expected to exceed those in advanced economies by as soon as 2015. In 2030, 57% (compared to 30% in 1980) of international arrivals are expected to be in emerging economy destinations.
Arrivals of Non-Resident Visitors
Arrivals of non-resident visitors in Georgia have been growing since 2005, during last eight years number of visitor has increased about ten times reaching its maximum – 5,392,303 in 2013. About 40% of total visitors have stayed for 24 hours or more and can be accounted as tourists. In the first eight months of 2014, total number of visitors increased by 3% compared to the same period last year. According to the UNWTO Georgia has one of the highest growth rates of international tourist arrivals during the last three years among European countries. Georgia was the fourth country in Europe by the growth rate of international tourist arrivals in 2013 after Iceland, Bosnia & Herzegovina and Greece. In 2012, Georgia occupied the first position in the region with 35.7% annual growth. 2011 and 2012 years showed dramatic y-o-y increase of international visitors, who stayed in Georgia 24 hours and more – 24% and 36% respectively. In 2013 the growth rate declined to 15% and total the number of travelers amounted just over two million. During the first eight months of 2014, almost 1.6 million non-resident travelers arrived in Georgia (12% more than same figure in 2013). Stabilized 8-10% growth of international tourists is expected during next five years.
Around 53% of tourists in Georgia in 2013 stayed in hotels and hostels, which accounts for about 1,100,000. To meet this demand supply has been growing for several years, but despite increased number of supplied rooms and beds, occupancy rates have increased due to bigger rise in demand compared to rise in supply. For now supplied number of rooms and beds are 16,786 and 39,108 respectively. Number of rooms and beds in accommodation units has increased by 6% compared to the same figure in the previous year. Based on announced future project further rise is expected in next few years.
Most Visited Destinations
Most visited cities are Tbilisi and Batumi, 45.8% and 40.8% of total tourists go to above-mentioned cities respectively. To fulfil the demand supply of accommodation units has increased in Tbilisi by 17 from 2013 to 2014 and reached 147 to date, further increase is projected in upcoming year. Several international hotel brands are presented in Tbilisi, their number is expected to increase. Number of accommodation units in Batumi has increased by 40 from 2013 to 2014 reaching 102, to meet increased demand. There are several announced project, including international brand hotels, which will be complete in next few year, increasing supply of accommodation units.