Tourism, Doing business

Invest in Georgia

“Batumi, the coastal city of Georgia, offers a unique combination of assets combining history, culture and beautiful nature. With its magnificent beaches and central park, Batumi is at the heart of tourist activities. Our new tourism investment guide highlights the characteristics of the Georgian tourism sector, including apartment and hotel rentals, suitable for travelers looking for an unforgettable vacation. The varied average rental price in Batumi reflects the diversity of accommodation options available. Having carried out extensive reforms and established a business-friendly environment, Georgia, with cities like Tbilisi and Batumi, represents a promising market for investors. We are confident that this guide will be a valuable tool for investors interested in Georgia’s dynamic tourism sector. »

UN Tourism Secretary-General Zurab Pololikashvili

‘Tourism Doing Business’ – Investing in Georgiais a comprehensive resource for tourism professionals and investors to deepen their knowledge of the Georgian tourism sector and the investment opportunities it offers.

It showcases Georgian natural and cultural heritage as well as efforts to strengthen the economy, highlighting the best hotel and apartment rentals in Batumi and Tbilisi. Travelers can choose from a wide range of accommodation in the heart of the city or by the beach. The Government's emphasis on responsible tourism and economic stability makes Georgia a promising market beyond conventional expectations, combining cultural wealth, breathtaking mountain views and economic potential.

Since 1991, the country has undertaken vast economic reforms to liberalize its market, eliminate corruption and attract foreign investment. These reforms have created an environment conducive to economic activity, with Georgia ranked seventh in the World Bank's Ease of Doing Business Index. Cities like Batumi, with its numerous hotels and apartments, and Tbilisi, the historic capital, bear witness to this dynamic.

Diversified landscapes and natural attractions

In addition to being a thriving economic center, Batumi and Georgia offer a great diversity of landscapes that delight tourists from all over the world. From pebble beaches to lush botanical gardens, the region offers several national parks and natural sites that captivate visitors. The floral richness and biodiversity of these places, such as Orbi Park and Batumi Beach, attract both nature enthusiasts and those seeking a pleasant setting for relaxation or varied tourist activities.

Economic outlook

The guide begins with an overview of Georgia's macroeconomic situation, noting that it has enjoyed strong growth of 5% over the past decade. Georgia has shown remarkable resilience as GDP grew from USD 17.6 billion in 2014 to USD 30.6 billion in 2023. Moving forward, the growth rate is expected to average 5.1% per year over the next three years. Georgia, with attractive cities like Batumi and Tbilisi, is therefore a choice destination for investment, despite inflationary pressures around the world and the greater uncertainty surrounding the global geopolitical situation.

Investing in the architectural heritage of Batumi

Batumi is distinguished by its unique architecture, a harmonious blend of old Soviet-era structures and modern buildings with avant-garde designs. Among the most iconic features are the Alphabetical Tower, the Gothic Notre-Dame Cathedral, numerous futuristic skyscrapers and charming seaside cafes. This architectural eclecticism attracts tourists seeking authenticity and modernity in the same trip, making Batumi one of the best Georgian cities for an unforgettable stay.

Value proposition

The publication outlines Georgia’s strong value proposition for investment in the tourism sector. The country has a rich cultural heritage and numerous archaeological sites, notably in the old town of Batumi and the museums of Tbilisi. Its booming tourism sector is taking a central place in the economy, contributing significantly to job creation and economic growth. Travelers thus discover a dynamic region with a multitude of activities through its numerous towns and parks.

There are many reasons to invest in Georgia, but we will especially remember five particularly interesting elements:

1. Diversity of natural and cultural attractions and reception structures: Georgia offers a rich network of natural beauty and cultural heritage, knowing that there are more than 12,000 historical monuments and four UNESCO world heritage sites. In addition, Georgia has an important role as a historic Silk Road corridor and an emerging hub in the field of medical and wellness tourism.
2. Good connectivity and ease of access: Georgia benefits from a strategic location between Europe and Asia and has modern transport infrastructure. In addition, its liberal visa regime allows nationals of 98 countries to travel there without a visa, making it an accessible destination for tourists and businesses.
3. Hospitality and real estate potential: In 2023, Georgia received 6.2 million international visitors, generating USD 4.1 billion in revenue. The expansion of international branded hotels and the strength of the real estate market, which has attracted more than USD 500 million in FDI in recent years, are indicative of this potential.
4. One of the lowest taxes in the world: Georgia's tax system is one of the most favorable in the world, with a low total tax rate of 9.9%. There are no capital gains, wealth or inheritance taxes and there are many business incentives. These are taxed at 0% on reinvested profits and at a competitive rate of 15% on dividends paid. The personal income tax rate is a fixed rate of 20%, which simplifies compliance with tax obligations.
5. A stable and favorable economic environment:Georgia is known for its transparency and regulatory efficiency. Economic reforms such as the Association Agreement and the Deep and Comprehensive Free Trade Area with the EU, as well as the recent achievement of candidate status for EU membership, underline the country's commitment to progress on the path of integration and development. The work of investment promotion agencies like Enterprise Georgia and strong free trade agreements with major markets further strengthen the country's appeal.

Diversity of natural and cultural attractions and reception structures: Georgia offers a rich network of natural beauty and cultural heritage, knowing that there are more than 12,000 historical monuments and four UNESCO world heritage sites. Furthermore, Georgia has an important role as a historic Silk Road corridor and an emerging hub in the field of medical and wellness tourism. Good connectivity and ease of access: Georgia benefits from a strategic location between Europe and Asia and has a modern transport infrastructure. In addition, its liberal visa regime allows nationals of 98 countries to travel there without a visa, making it an accessible destination for tourists and businesses. Hospitality and real estate potential: In 2023, Georgia received 6.2 million international visitors, generating USD 4.1 billion in revenue. The expansion of international branded hotels and the strength of the real estate market, which has attracted more than USD 500 million in FDI in recent years, are indicative of this potential. One of the lowest taxes in the world: Georgia's tax system is one of the most favorable in the world, with a low total tax rate of 9.9%. There are no capital gains, wealth or inheritance taxes and there are many business incentives. These are taxed at 0% on reinvested profits and at a competitive rate of 15% on dividends paid. The personal income tax rate is a fixed rate of 20%, which simplifies compliance with tax obligations. A stable and favorable economic environment: Georgia is known for its transparency and regulatory efficiency. Economic reforms such as the Association Agreement and the Deep and Comprehensive Free Trade Area with the EU, as well as the recent achievement of candidate status for EU membership, underline the country's commitment to progress on the path of integration and development. The work of investment promotion agencies like Enterprise Georgia and strong free trade agreements with major markets further strengthen the country's appeal.

Living culture and events

Batumi is not only a city of business and investment; it is also a rich and dynamic cultural center. The city, in the heart of Adjara, hosts many annual festivals, such as the Jazz Festival and the Classical Music Festival, which attract artists and spectators from all over the world. Situated on the Black Sea, Batumi also offers stunning views of the surrounding mountains. These events provide an added attraction for visitors looking to immerse themselves in a vibrant and cultural environment, making Batumi a premier European vacation destination.

Competitiveness

Finally, the report analyzes Georgia's competitiveness in the tourism scene more broadly, noting strong growth rates. Georgia ranks third among the countries with the lowest tax burden in the world, according to the World Bank Group, seventh out of 190 countries globally in the World Bank's 'Doing Business' 2022 ranking. Cities like Batumi, with its many hotels and apartments, demonstrate this competitiveness in the Georgian tourism sector.

In the tourism sector, the country has shown its dynamism and resilience when it comes to international tourism in the country since 2018. While it is true that the COVID-19 pandemic caused a sharp decline, the sector has continued to recover since then, receiving 1.6 million tourists in 2021, then 3.7 million in 2022 and 4.7 million in 2023. Batumi, with its beaches and parks, has particularly contributed to this growth by attracting many travelers for their vacations.

According to the Georgian Tourism Administration, in the first six months of 2024 alone, the country received 2.7 million tourists. International tourism receipts have already exceeded pre-pandemic levels, with revenue recovering faster than international tourist arrivals. Batumi, with its luxury hotels and apartment rentals, plays a key role in this economic recovery.

In the first half of 2024, international tourism receipts amounted to USD 1.9 billion, an increase of 30% compared to 2019. This is a trend that reflects a clear recovery from the pandemic, but also shows that the level of tourist spending per stay is increasing, which is beneficial for the Georgian economy. Popular destinations like Batumi and its lively cafes contribute significantly to this increase in traveler spending.

The main investors come from the United Kingdom, the Netherlands, Azerbaijan and Turkey. The guide also highlights the diversity of natural and cultural attractions, the potential in hospitality and real estate, an attractive tax system with a total tax rate of 9.9%, and a stable and favorable business environment. Cities like Batumi, with its many hotels and apartments, are at the heart of these tourism investment opportunities in Georgia.

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