Georgia Loses Tourists from Azerbaijan

The devaluation of the Azerbaijani national currency Manat has once again hit Georgian tourism hard. This is especially true of the ski resorts Gudauri and Bakuriani, where traditionally large numbers of visitors head over from Azerbaijan for the winter season, particularly during the New Year holiday. This season saw a distinctive reduction in the number of Azeris on the slopes.

The loss comes as a second blow to the tourism sector of Georgia following on from the introduction of the visa regime. Custom saw 80-90% of tourists in the winter resorts being citizens of Georgia’s neighbouring Azerbaijan, a fact that many small family hotels depended on. This year the situation changed, claimed the hotel owners, who say that they’ve also noticed a general decrease in tourists, not only Azeris.

While the Georgian National Tourism Administration (GNTA) is doing all it can to promote the image of Georgia as the place to be this winter, the depreciation of a currency is too great a force to overcome, with the Azerbaijani Manat having recently fallen in value by 50%.

According to the management of the hotel ‘Vere Palace Bakuriani,’ where a one bed room costs USD100 a night and a suite USD300, the current New Year holidays have seen far fewer tourists from Azerbaijan. “Our main customers are the Azerbaijanis, but now the flow has visibly decreased, as well as there being a reduction in the number of local tourists. The Azeris do not come in such quantity as before because of economic difficulties [in their country]. Due to the devaluation of the Manat, revenue has declined sharply, and now they have no money to spend on this kind of trip.”

A significant reduction in the number of Azerbaijani tourists has also negatively affected the running of hotel ‘Europe Bakuriani,’ where a one bed room starts at 90 GEL. “In the past our guests comprised mostly of citizens of Azerbaijan. The situation has changed- because of the crisis Azerbaijanis just cannot come to ski in Georgia this year,” said a ‘Europe Bakuriani’ representative. “It’s having a very negative impact on the situation of hotels located in Bakuriani. As for Georgian tourists, their number also decreased. Many of those who have the money have bought an apartment in Bakuriani, and now they don’t need to spend money on hotel accommodation.”

The situation is repeated in hotel ‘Ritz’ who last year claimed 80% of its guests as Azerbaijani. “Now that number has reduced,” they said.

The ‘Hotel Apartment Company’ claim that because of the devaluation of the Manat, there is an increased tendency of Azerbaijani guests cancelling previously made reservations.

On December 21, 2015, the Central Bank of Azerbaijan announced the transition of the national currency – the Manat - at a floating rate, and then immediately made a 50% collapse. On January 7, 2016, Azerbaijani banks stopped sales of the currency and the State imposed restrictions on the purchase of dollars and euros.

Dimitri Dolaberidze