Number of Russian tourists drops by 78.6% after 2 weeks of the travel ban

The number of Russian tourists, who arrive in Georgia by air, has dropped by 78.6% after two weeks the Russian ban on direct flights with Georgia took effect.

The information was released by the TBC Research, which added that despite the sanctions, the tourism growth in Georgia remains positive.

The weekly data on travelers from Russia indicate that in the first week of July before the actual ban had entered into force, the decline of Russian visitors was more moderate (-4.1%). Over the same period, the number of flights retreated by 11%.

However, after the ban was activated on July 8, the number of Russian citizen arrivals fell by 21.4% in the 2nd week of July.

“The arrivals by air were hit harder with a reduction of 78.6% YoY, while the decline through other borders was more moderate at 1.7% YoY,” the survey reads.

TBC Research says that despite the complete abolition of direct flights, a significant part of Russian citizens still arrived by plane, suggesting the alternative routes are already active and are expected to substitute direct flights increasingly.

“Indirect arrivals of visitors by plane coupled with only a moderate decline of arrivals through other means of transportation indicate that Georgia still remains an attractive destination for Russian tourists,” the report reads.

The survey adds that thanks to the diversified sources of tourism inflows, despite the 21% decline of travelers from Russia in the second week of July, the growth of the total number of travelers remained on a positive trajectory (+3.2% YoY).

“The initial period following the restrictions is likely to be the toughest as a more active marketing campaign targeting other countries has been launched, and therefore tourism inflows may strengthen,” TBC Research predicts.

TBC Research represents the joint project of TBC Bank Economic Team, and TBC Capital created to provide analysis of developments in the economy of Georgia and various sectors, as well as the regional environment. TBC research covers topics of interest for investors, corporates, and broader audience.

On June 21, 2019, Russian President Vladimir Putin signed a decree banning Russian airlines from flying to Georgia from July 8 in response to anti-Moscow rallies in Tbilisi.

Following of the rallies in Georgia, Kremlin had said the inward ban was to “ensure Russia’s national security and protect Russian nationals from criminal and other unlawful activities” after the large-scale rallies were launched in Georgia following the arrival of Duma MPs in Tbilisi Parliament on June 20.

As Russian tourists amount 25% of the Georgian tourism market, it is believed the country will experience around $700 million loss as a result of the sanctions.