Due to the closed border with Azerbaijan, Georgia lost 1.5 million tourists and $400 million

The closed border between Azerbaijan and Georgia

The Georgian ministry of economy reports that due to the closure of the land border with neighboring Azerbaijan, 1.5 million tourists couldn’t visit Georgia, causing a $400 million loss.

Deputy minister of Economy of Georgia, Mariam Kvrivishvili, mentioned that the closed land border with Azerbaijan prevented Georgia from fully recovering its tourist flows after the pandemic.

Azerbaijan shut its land borders with all its neighbors (Russia, Georgia, Iran, Armenia) in spring 2020 due to the pandemic. Although the pandemic officially ended in May 2023, Azerbaijan has been slow to reopen its land borders. Moreover, Baku extended its quarantine measures in December 2023 until April 2, 2024.

This means that for nearly four years, travel from Azerbaijan to Georgia and back has only been possible by air. Before the pandemic, besides buses, there were also trains between the two countries.

JAMnews correspondent asked political analyst Gaji Namazov for comments on the extended special quarantine regime.

“Why does Azerbaijan stubbornly refuse to open its land borders? Over time, I think this became clear to everyone. Azerbaijan keeps its borders shut due to threats from Iran and Russia. But to say there’s a significant risk from opening borders with Iran today is an exaggeration. Relations between these two countries are normal. However, the risk of an influx of Russian citizens into Azerbaijan is still relevant. One doesn’t have to look far to see the negative consequences of such an influx — it’s visible in Georgia, where prices for almost everything, especially real estate, have soared in a short time,” says the Azerbaijani expert.

In Azerbaijan, there’s a demand to open the border with Georgia so that Azerbaijanis living in the neighboring country can visit their relatives. However, experts argue that Azerbaijan cannot selectively open the border only with Georgia without having to explain why it’s not opening borders with other countries.

Ethnic Azerbaijanis living in Georgia even appealed to Azerbaijani President Ilham Aliyev, asking to open the border so people could visit their families. The petition was initiated and published on social media by Georgian human rights activist Samira Bayramova, an ethnic Azerbaijani.

Due to the closed border with Azerbaijan, the tourist flow to Georgia has only recovered to 92 percent of the pre-pandemic situation, says Deputy Minister Kvrivishvili.

“We hope this decision changes soon, given our country lost over 1.5 million tourists and around $400 million,” the deputy minister stated.

Before Azerbaijan closed its land border, in 2019, Azerbaijan was the leading source of visitors to Georgia, ahead of Russia, Turkey, and Armenia. Last year, it ranked fifth. Neighboring countries traditionally contribute the largest share to Georgian tourism.

“We were very upset by the absence of Azerbaijanis,” hotel owners said

Speaking to Radio Liberty, hotel owners also complained about significant losses due to the lack of Azerbaijani tourists.

Balneological resorts, in particular, feel the lack of Azerbaijani guests, noted Andro Jishkariani, director of the Tskaltubo Spa Resort:

“Azerbaijan is a vital market for balneological resorts. Maintaining body health is part of this country’s culture. Now, the only way to Georgia is by plane… After arriving in Tbilisi, they have to pay more to get to Tskaltubo. Plane tickets are expensive. It’s not like four people hopping in a car and driving here. Hence, visitor numbers have drastically decreased.”

IN Group, which owns hotels in various Georgian regions – Gudauri, Bakuriani, Akhaltsikhe, Gori – has also seen a significant drop in Azerbaijani tourists, according to its CEO Erekle Kokaya:

“Maybe not all visitors from Azerbaijan stayed at our hotels, but we still had guests from there. Bakuriani was a popular destination for them. The decrease in Azerbaijani holidaymakers is noticeable here too. They are fond of mountain and spa resorts.”