Market Analysis

A tourism competitive market analysis is a comprehensive evaluation that compares and contrasts the strengths, weaknesses, opportunities, and threats of a specific destination against its competitors. It aims to identify the distinct advantages and unique selling points of the destination in comparison, to understand market trends, and recognize areas for improvement to enhance its competitiveness in vying for the same target audience. This section will provide both demographic information on the types of travelers visiting the region along with any available statistics to help understand who is currently visiting and opportunities for attracting new market segments.

National Visitation Statistics

Regional Visitation Statistics

Visitor Spending

Competitor Destinations

Visitor Profiles

Visitor Experience Analysis

National Visitation Statistics

Located at the crossroads of Europe and Asia, Georgia has become an increasingly popular tourist destination in recent years. The country's diverse landscape, which includes the stunning Caucasus mountain range, has attracted a range of visitors from around the world. In terms of demographics, Georgia's tourism industry has seen a mix of solo travelers, couples, families, and groups, with a particular increase in the number of millennial travelers in recent years. According to the Georgian National Tourism Administration, in 2019, the country welcomed over 9 million international visitors (all international border crossing and non-residents), with the majority coming from neighboring countries such as Turkey, Azerbaijan, and Armenia. However, there has been a recent push to attract visitors from further afield, particularly from Europe, Gulf states, Central Asia and North America. Read More.

Tourism has become a significant contributor to Georgia's economy, and the country has experienced an increase in the number of international visitors over the years, particularly between 2010 and 2019. According to data provided by the Georgia National Tourism Association, Georgia received 9.4 million international visitors in 2019, a record number and an 8% increase over 2018.

The tourism industry has faced significant challenges in recent years. Like most countries, Georgia was affected by the COVID-19 pandemic in 2020, which led to a sharp decline in tourist arrivals by 82.3% compared to the previous year due to travel restrictions and border closures, and the Russia-Ukraine War has also had an impact. Despite these challenges, the Georgian government and the tourism industry have taken steps to revitalize the sector, including launching promotional campaigns and implementing safety measures. As a result, there are signs of recovery, with the number of international tourist arrivals increasing by 34.6% in 2021 compared to the previous year. In 2022, the total international tourist arrivals hit 5.4 million, 188% over the previous year. By 2022 the number of international visits encountered 88% compared to the 2019, also trends towards a longer stay and more visitors spending is certainly a positive sign that economic impact has already overcome the pre-pandemic period.

According to the World Travel and Tourism Council, the tourism sector in Georgia directly employed 170,000 people in 2019, which represented 5.6% of total employment in the country. The pandemic’s impact on the tourism industry caused a significant 40% reduction in the number of people employed in the sector by the end of 2021 from 2019 levels. With recovery on the rise, according to a report by TBC Capital, revenue generated by international visitors amounted to 3.16 billion USD in 11 months of 2022, exceeding the 11M 2019 levels by 4%. Compared to 2019, travel receipts fully recovered by July of 2022. The trip expenditures in 2022 averaged 2,298 GEL (equals to 919 USD), which is significantly higher than it was pre-pandemic (350USD). However, this unprecedented increase is also an effect of the temporary migration of the citizens of Russia, Ukraine and Belarus due to the Russian-Ukrainian war.

Regional Visitation Statistics

The Racha-Lechkhumi Kvemo Svaneti region is less popular than other destinations in Georgia, with its share of international visitors being about 0.2% on average and 1.74% of total domestic visits (2017-2021, GNTA). Domestic visitors far exceed the number of international visitors and both statistics show significant impact by seasonality. Until a government levy is established, additional statistics should be gathered and conducted through the collaboration of guesthouses and hotels reporting on the volume and demographics of their guests. Historical records such as signed guestbooks could also be documented. Restaurants could report on the percentage of locals, Georgian visitors and international guests to their establishments. Read More.

Figure 2: Georgia Domestic Trips Over Time

Source: UNWTO

Domestic tourism coming mostly from the capital city produced 16.3 millions trips in 2022, according to the GNTA. The main purpose of the trips (51%) are to visit relatives and only 9.7% travel for leisure. 4.2% visited Samegrelo Zemo Svaneti for leisure, and 3.5% Racha Lechkhumi-Kvemo Svaneti.

Visitor Spending

Estimating tourist expenditures in Oni includes calculating the average amount spent by tourists on accommodation, dining, transportation, activities, and souvenirs. Once estimated, these numbers can be projected out using visitation numbers to calculate economic impact.

Extrapolated by taking the daily expenditure of one person and multiplying that with the max occupancy (~1,200) of the region we can estimate the daily economic impact during the high tourist season. Right now these estimates result in a wide range between 132,000₾ and 708,000₾ in one max capacity day, say during a summer festival. With more specific numbers recorded and tracked, these forecasts can become much more accurate and provide insight into Cluster business planning.

Competitor Destinations

Oni Municipality is a relatively lesser-known destination in Georgia, known mostly by domestic tourists for its natural, relaxing beauty. While it may not have direct international competitors in terms of popularity, there are Georgian destinations and other locations worldwide that offer similar attractions and experiences, attract tourists with similar interests, and can serve as a model for sustainable tourism development in Oni:

Mestia, Svanti

Mestia in Svaneti, another mountainous region in north Georgia, is known for its picturesque landscapes, medieval towers, and rich cultural heritage. It offers trekking and hiking opportunities, similar to Racha, and is a UNESCO World Heritage Site. The majority of tourists that arrive in Mestia come from Poland, Israel, Russia, Germany, and Ukraine (Capucci et al., 2015). Therefore, it can be assumed that the international tourists visiting Oni would come from similar countries. Mestia is defined in its brand by the remnants of its mystical heritage and the extreme adventure it offers to adrenaline-seeking mountain sports enthusiasts.

Strengths: Natural beauty, ski infrastructure, cultural heritage, homestays and local hospitality

Weaknesses: limited accessibility, limited infrastructure

Key Attractions: UNESCO World Heritage Sites (Mestia & Ushguli), Svanetian Towers, Chalaadi Glacier

Brand Adjectives: Mystical, Extreme, Spirited

Charismatic, Storied

Tusheti, Akhmeta

Tusheti is another mountainous region in Georgia, similar to Racha and Svaneti. It is known for its remote villages, alpine pastures, and traditional way of life. Its rugged terrain invites hikers to explore the stunning Omalo to Shatili trail, which winds through picturesque landscapes and medieval fortifications. Tusheti also provides a unique cultural experience with its traditional villages, allowing visitors to immerse themselves in local traditions, cuisine, and the timeless charm of the Caucasus Mountains.

Strengths: scenic beauty, cultural festivals, hiking and trekking

Weaknesses: seasonal dependency, limited services due to isolation - no road, lack of modern infrastructure and accessibility

Key Attractions: Shenako and Diklo Villages, Tusheti National Park, Omalo to Shatili Trek, Abano Pass, Girevi Village

Brand Adjectives: Traditional, Sacred, Undisturbed, Isolated, Preserved

Stepantsminda, Kazbegi

Kazbegi, in northeast Georgia's Caucasus Mountains, provides a wealth of tourism opportunities for travelers. Outdoor enthusiasts can enjoy challenging hikes with stunning views, including of the picturesque Gergeti Trinity Church. Visitors can also explore the region's rich cultural heritage and savor local cuisine while immersing themselves in the serene natural beauty of waterfalls, lakes, and the Stepantsminda plateau, making Kazbegi an ideal destination for those seeking adventure, culture, and breathtaking landscapes.

Strengths: scenic beauty, cultural exploration, skiing and winter sports

Weaknesses: seasonal dependency, language barrier, lack of more modern infrastructure

Key Attractions: Gergeti Trinity Church, Ananuri Fortress, Dariali Gorge. Mount Kazbek, Kazbegi National Park, Village Juta

Brand Adjectives: Majestic, Awe-Inspiring Sublime, Grandiose, Expansive

Bakuriani, Borjomi

Located in Borjomi municipality, Bakuriani competes assertively with Oni in the tourism sector. The town stands out for its winter sports scene, notably the Bakuriani Ski Resort, distinguished by well-maintained slopes and modern amenities. Beyond winter, Bakuriani transforms into a year-round destination with diverse outdoor activities amidst green landscapes. The convergence of meadows, spa resorts, and recreational options positions Bakuriani as a competitor, inviting travelers to explore Georgia's natural and recreational offerings.

Strengths: winter-sports infrastructure, scenic beauty, mineral spa resorts, cultural and historical sites

Weaknesses: limited accessibility, seasonality, limited international recognition

Key Attractions: Bakuriani Resort, Kokhta-Mitarbi and Didveli Ski areas, Borjomi-Kharagauli National Park, Timotesubani Monastery, Tatia’s Bridge, Bakuriani Botanical Garden

Brand Adjectives: Adventurous, Invigorating, Sanctuary, Alluring

Dilijan, Armenia

Located in the Lori region of Armenia, Dilijan is known for its mountainous landscapes. Dilijan is a retreat for nature and culture enthusiasts. The town is situated within Dilijan National Park, offering opportunities for outdoor activities like hiking. Dilijan's architectural appeal is seen in its historic buildings, contributing to its reputation as a spa resort with a Swiss countryside feel. The region's cultural richness is highlighted by ancient monasteries such as Haghartsin and Goshavank. With a straightforward blend of natural beauty and cultural heritage, Dilijan stands as a compelling competitor, inviting travelers to explore Armenia's mountainous tourism.

Strengths natural beauty, cultural heritage, outdoor activities, proximity to capital city Yerevan

Weaknesses: seasonality, infrastructure development, limited international exposure

Key Attractions: Dilijan National Park, Hagharsin Monastery, Goshavank Monastery, Parz Lake, Old Dilijan Complex, Jukhtak Vank

Visitor Profiles

Historically, the large majority of travelers (roughly 90%) to Oni are Georgians coming from Tbilisi or as a day trip from Ambrolauri. Even though the destination borders Russia, accessibility is limited because of the Greater Caucasus, with only one road going into occupied South Ossetia towards Java in Shida Kartli. This is very different from Stepantsminda, on the Russian Military Road, which caters to many more Russian tourists.

Resting in their Roots

Hometown Visits - This segment is mostly made up of families and family members who have moved away from Oni and now live in the city. Young people who have grandparents or other family members living in Oni will return to their "roots" and stay in the family guesthouse, perhaps bringing a friend or two with them or their new young family. This is a low-effort, low-budget retreat from school and work in the city. Many word-of-mouth recommendations and customer leads come from this segment, resulting in the following target audiences who will often become return visitors.

School is Out(doors)

Family Fun – This target audience are the parents who are planning a summer trip for a multi-generational family group of 3 - 6 members. The mother is most likely the person in the role of the decision-making customer, looking for a budget-friendly destination that is great for children, with fresh air, no pollution, and a variety of activities that will distract them away from modern technologies and towards more creative free-play. They usually stay for a week on average and do not have a strict schedule of tourist activities.

Weekend Getaways

Seasonal Opportunists –This segment is likely made up of a group of friends looking to escape the city for a long weekend. Their motivations for selecting Oni may include visiting a new off-the-beaten-path destination in Georgia, or a nearby place that is inexpensive but full of nature, or attending a special event. Festival goers are included in this target audience. These are “seasonal opportunists” looking to experience nature in its various prime times with particular attention to seasonal food and menus, entertainment and activities. Walk-ins without prior reservation are common in this group.

International Hiking Couples

Intrepid Adventurers – These active foreign (typically European) tourists are definitely looking for remote outdoor adventures and mountain excursions. They are “dual income, no kids (DINK)” couples or small groups of friends (2 - 4 people). They will often choose family hotels for a one-night stay, likely to prepare for or recover from a multi-day trekking and camping trip. Adventure sporting activities are important, balanced with wellness for the body, mind and spirit. They are environmentally conscious and care about the conservation of the environment. In the PMCG survey, respondents reported that Georgian visitors shop more than foreigners. This can likely be explained by limited space in their luggage and particularly by weight, for those that are backpacking.

Foreign Families

Nextdoor Neighbors – This profile is made up of families visiting from neighboring nations, as well as the Jewish families who return to visit their former home. They will come in groups of 3 - 6. This group is characterized by a unique blend of cultural nostalgia and a desire to explore the historical, religious and familial ties embedded in the region. Their visits contribute not only to the economic vitality of Oni but also to the cultural exchange and enrichment of the local community. As this profile grows, it presents opportunities for tailored services and experiences that resonate with the sentimental and exploratory aspects of their journeys.

Visitor Experience Analysis

As expected, online reviews and blogs all rave about the peaceful, relaxing and beautiful destination with almost all accommodations and points of interest rated 5 stars. Top three (of minimal) complaints were lack of food establishments, difficulty of getting around without a personal car, and limited English speakers.

It should be noted that the top and most popular guest house by a far margin is Family Hotel “Gallery” with a significant number of mentions across blogs and reviews all with 5-star ratings and return visits. AirBnB also shows guesthouse “Khatosi,” Racha Cornfield House and Mariam’s Nature Lodge in Glola as top ranked homestays. The Synagogue is the only “thing to do” listed for Oni Municipality on TripAdvisor and it has a number of Google reviews, but most mention how it is never open or how one must prearrange a visit.

Reading online reviews helps to better understand the visitor experience in Oni, what points of interest and activities are the most reviewed (meaning the experience impacted the visitor enough to want to write a review), and the things that need to be corrected to help make a visitor’s experience even better. Also, an analysis of online reviews from various platforms can reveal information about what demographics visit the destination and also use those platforms, as well as which platforms are the most popular for the region or for various target audiences.

➡️ Continue to the Strategic Plan.

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