In 2022, the tourism sector showed a significant recovery, which could be attributed to a combination of factors, such as the rapid inflow of international visitors after the outbreak of the Russia-Ukraine war, the alleviation of COVID-19-related restrictions, the reopening of land borders, the revival of flight routes, and sustained high demand among domestic visitors. The accommodation sector recovered significantly in Q3 of 2022, with turnover showing a 20.1% increase compared to Q3 of 2019. Notably, the turnover of the accommodation sector reached a high of GEL 794.9 mln in Q3 of 2022. In the first three quarters of 2022, the average monthly salary in the accommodation sector exceeded pre-pandemic values significantly with an average YoY increase of 22.5%. This could be attributed to a labor shortage in the tourism sector, inflationary trends, and increased demand for accommodation and food services.

In Georgia, the average cost of a room in a 3-star hotel was 167 GEL per night in December 2022, while the average cost of a room in a 4-star hotel in Georgia was 275 GEL per night and the average cost of a room in a guesthouse was 122 GEL per night. The average cost of a room in a 5-star hotel in Georgia in December 2022 was 456 GEL per night. In Tbilisi, the average price was 559 GEL, followed by Kakheti – 552, Samtskhe-Javakheti – 458, and Adjara – 429.

In December 2022, the number of persons receiving a monthly salary increased by 2.9% compared to the corresponding period of 2021 and by 6.4% compared to the corresponding period of 2020. In 2022, from July to December, the total number of vacancies published on jobs.ge amounted to 41,237, which was 26% higher compared to the corresponding period of 2021 and 159.4% higher compared to the corresponding period of 2020. In December 2022, compared to November 2022, the total number of vacancies published on jobs.ge decreased by 19%. In 2022, from July to December, a total of 11,928 vacancies were published in the field of sales/procurement, which was 41% higher than the corresponding period of 2021 and 197% higher compared to the corresponding period of 2020.

The unprovoked Russian invasion of Ukraine has shattered the lives of millions of civilians and destroyed dozens of Ukrainian cities. The damage has been enormous, with only some of it economically measurable. While we cannot assess the true cost of thousands of lives being taken, we can approximately measure the damage done to Ukraine’s infrastructure, social, and other sectors, which is discussed in this bulletin alongside the revised 2023 budget for Ukraine.

The Business Association of Georgia (BAG) Index is a joint product of the Business Association of Georgia, PMC Research Center and the ifo Institute for Economic Research. The BAG Index summarizes the BAG Business Climate, BAG Employment Barometer and BAG Investment Environment, which are calculated according to the assessments of the top managers of BAG member businesses and companies in their corporate group. In Q4 of 2022, additional questions regarding the need for labor resources were integrated into the survey. BAG and PMC Research Center publish the BAG Index on a quarterly basis from Q4 2019. For the previous reports of the BAG Index, please, visit the following link: https://bag.ge/ge/bag-index

Since 2021, international visits to Georgia have been showing signs of significant recovery. The recovery accelerated in Q3 of 2022, when the number of international visits reached 69% of the corresponding figure in Q3 of 2019. The average expenditure per visit tripled in Q3 of 2022 compared to the corresponding period of 2019, and reached GEL 2,440. Meanwhile, the total expenditure exceeded the pre-pandemic (Q3 of 2019) value by 41%, reaching GEL 4.6 billion. The average nights spent per visit increased significantly (42%) in Q3 of 2022, compared to the corresponding period of 2019, reaching 6.8 nights per visit, similar to the first half of 2022.

In Georgia, the average cost of a room in a 3-star hotel was 155 GEL per night in November 2022, while the average cost of a room in a 4-star hotel in Georgia was 233GEL per night and the average cost of a room in a guesthouse was 114 GEL per night. The average cost of a room in a 5-star hotel in Georgia in November 2022 was 419 GEL per night. In Kakheti, the average price was 575 GEL, followed by Tbilisi - 554, Guria - 381 and Adjara - 344.

In November 2022, the number of persons receiving a monthly salary increased by 1.4% compared to the corresponding period of 2021 and by 5.4% compared to the corresponding period of 2020. Overall, in Q4 of 2022, the BAG Employment Barometer amounted to 29.1 points, which is 1 point more than in Q3. In Q4 of the 2022 year, the Employment Barometer was positive for all sectors. Overall, in Q4 of 2022, according to the BAG Index Survey 35% of surveyed companies increased their number of employees, 7% recorded a decrease, and 58% reported no change. In 2022, from June to November, the total number of vacancies published on jobs.ge amounted to 43,323, which was 27.7% higher compared to the corresponding period of 2021 and 154.3% higher compared to the corresponding period of 2020. In 2022, from June to November, a total of 12,702 vacancies were published in the field of sales/procurement, which was 48% higher than the corresponding period of 2021 and 162% higher compared to the corresponding period of 2020. According to the Beveridge Curve, labor market efficiency decreased in the post-pandemic period (Q3 2022), compared to the pre-pandemic period (Q4 2019).  The latter trend could be attributed to different factors, including labor force migration, the flow of personnel to adjacent sectors, and increased wage expectations of job-seekers (i.e., the minimum wage that candidates are prepared to work for).

The main findings of the survey of Georgian economists conducted in the fourth quarter of 2022 are: Georgian economists have a positive assessment of Georgia’s present economic situation. Though their predictions for Georgia’s economic situation for the next six months are negative. Almost 90% of surveyed economists think that high inflation currently represents the highest threat to the Georgian economy. 94% of surveyed economists think that among other policy approaches tighter fiscal policy is likely to be the most effective in tackling inflation in Georgia. Similarly, 89% believe in the effectiveness of imposing a tighter monetary policy. The majority of Georgian economists (44%) think that the Estonian model for profit tax should be applied to the financial sector in Georgia from 2023.

Russia’s war in Ukraine has stifled the latter’s maritime industry. It has disrupted 15 of Ukraine’s 18 seaports as well as its inland water navigation facilities. As the maritime industry usually plays a crucial part in Ukraine’s external trade, the abovementioned disruptions have hampered the country’s exports markedly. To portray the effects of the halting of operations at Ukrainian ports on both domestic and international markets, it is essential to analyze the significance of Ukraine’s maritime industry and its role in the country’s external trade, the Black Sea, and beyond.