tourism

Georgian National Investment Agency 2013

TOURISMTOURISM

VESTORGIA

www.investi ngeorgia.org

IN IN GEO

FAST GROWING SECTORFAST GROWING SECTOR

• Tourism contributes 6.7 % of GDP

• Number of visitors increased 38% in 2011 reaching 2.8 million and 56% in 2012 reaching 4.4 million

• Majority of visitors come from : Turkey (34.9%), Azerbaijan (21.2%), Armenia (20.5%), Russia (11.6%)

Europe (9.4 %)

• Average durati on of stay - 9 days, the median visitor stays - 2days / Average spend of USD 330

• Overall capacity of < 15,110 rooms

• Already operati ng internati onal brand hotels - Sheraton, Radisson, Marriot, Holliday Inn, (under constructi on - Kempinski, Hillton) etc.

POTENTIALPOTENTIAL

• Youth Olympics in 2015

• Free tourism zones – summer resorts

• Availability of gambling business – gaming is parti ally or completely banned in Russia, Ukraine, Azerbaijan, Kazakhstan,Turkey, Israel, Iran, Iraq

• 8 nati onal parks

• 2400 springs of mineral waters

www.investi ngeorgia.org 1

TOURISM

VESTORGIA


GEORGIA IS EXPECTING SIGNIFICANT GROWTH TRAJECTORY IN TOURIST ARRIVALS

RGIA 0.6

1.0 1.1 1.3 1.52.0

2.8

4.4

5.5

INTERNATIONAL ARRIVALS INTERNATIONAL ARRIVALS HAVE SEEN ~40% YEAR-ON-YEAR GROWTH

TOTAL INTERNATIONAL TOURIST ARRIVALS NUMBER OF ARRIVALS INTO GEORGIA

Source: Georgian Nati onal Tourism Administrati on

IN IN GEO


INTERNATIONAL LUXURY HOTEL CHAINS DOING WELL: MORE ARE COMING TO THE MARKET

VERBATIMS OF INTERNATIONAL HOTEL BRANDS IN GEORGIAVERBATIMS OF INTERNATIONAL HOTEL BRANDS IN GEORGIAUPCOMING UPCOMING INTERNATIONAL HOTEL INTERNATIONAL HOTEL BRANDS BEFORE 2015BRANDS BEFORE 2015

LOCATION

BATUMI

TBILISI

BATUMI

TBILISIBATUMI

TBILISI

“We have seen 7-8% more guests in our hotels every year. Business and leisure travelers are our two biggest client group and they come from all over the world. Best occupancy period is summer from May to September”

– Alexander KvaratskheliaMarketi ng Manager

“We have seen signifi cant increases in occupancy rate and fi nancials since 2010. This year [2012] high season has seen a very promising start. We have advance reservati ons booked for almost the whole summer”

– Omer Subasi General Manager

“We are very opti misti c as demand has been increasing rapidly. Hotel occupancy hovers around 85%. Our guests come from all around the world representi ng various sectors including business, sportmen and tourists”

– Oto BerishviliSales & Marketi ng Manager

HOTEL CHAIN HOTELIER’S ASSESSMENT OF PERFORMANCE

VESTORGIA


INVESTMENT OPPORTUNITIES IN TOURISM SECTOR

“SUN-BEACH” RESORTS

Expansion of summer ”sun and beach” franchise focusing on high-end segment

• All inclusive summer resorts• New master resort development

• Batumi• Anaklia• Kobuleti • Other Black Sea locati ons

WINTER SKI RESORTS

Master development of winter resorts with unique profi le equivalent to the Alps

• Government is fully committ ed to provision of basic infrastructure

• Mesti a• Gudauri• Bakuriani• Goderdzi

SUMMER MOUNTAINS RESORTS

Four season resort value prepositi on

• Majesti c landscapes allowing for a wide range of summer tourism acti viti es such as trekking, horse riding, bird watching and river racing

• Mesti a• Gudauri• Bakuriani• Goderdzi• Kazbegi• Other locati ons

SPA RESORTS

Development of Spa Resorts

• Include hotels, Diff erent types of Clinics, fi tness,Outdoor acti viti es

• Tskaltubo• Akhtala• Other locati ons

REGIONAL CASINO CITY

Development of large-scale integrated casino complex to Serve regional markets.

• Include hotels, casino entertainment, family Services and shopping• Fiscal incenti ves available

• Batumi • Tbilisi• Other locati ons

DES

CRI

PTIO

NPO

TEN

TIA

L LO

CAT

ION

IN IN GEO


INVESTMENT OPPORTUNITIES IN FREE TOURISM ZONES - ANAKLIA EXAMPLE

• Breathtaking landscape of Black Sea’s sandy beach • 3 already operati ng hotels, 2-under constructi on• Biggest aqua park in the Caucasus• Wide range of tourist acti viti es from sun & beach, cultural heritages to adventure acti viti es• Favorable and warm climate

• Easy access to Kutaisi and Batumi international airports• Easy access to highway connecti ng with Batumi and Poti

• 4-km long seaside boulevard• Full engineering uti lity networks (water, electi city,gas)• Pedestrian bridges• Concert halls and theaters

• Prepackaged hotel projects• Free casino license for hotel capacity over 80 rooms• Free land for development may be applied• Tax exempti on may be applied

UPCOMING UPCOMING TOURIST TOURIST DESTINATIONDESTINATION

EASY ACCESS EASY ACCESS AND MODERN AND MODERN INFRASTRUCTUREINFRASTRUCTURE

STATE-LED STATE-LED INFRASTRUCTURE INFRASTRUCTURE DEVELOPMENTDEVELOPMENT

INCENTIVESINCENTIVES

VESTORGIA


INVESTMENT OPPORTUNITIES IN FREE TOURISM ZONES - KOBULETI EXAMPLE

• Georgia’s seaside health resort on Black Sea coast• Unique Fine Forest “Pichvnari” as part of Kolkheti Valley• 3 hotels are under constructi on• Biggest amusement park in the Caucasus• Favorable and warm climate

• Easy access to Batumi international airport (30 minutes)• Easy access to highway connecti ng with Batumi

• Pre-planned development area of 11.3 ha for 27 hotels• The lands available are located 140 meters from Black Sea in “Pichvnari” (Fine forest) area• Aff ordable investment range of USD 1-3 million

• Free Hotel Master Plan• Fully provided uti liti es network and outdoor infrastructure• Free Land and tax exempti on may be applied

UPCOMING UPCOMING TOURIST TOURIST DESTINATIONDESTINATION

EASY ACCESS EASY ACCESS AND MODERN AND MODERN INFRASTRUCTUREINFRASTRUCTURE

PREPACKAGED PREPACKAGED PROJECTSPROJECTS

INCENTIVESINCENTIVES

VESGRGI

IN IN GEO


FOUR SEASON MOUNTAIN RESORTFOUR SEASON MOUNTAIN RESORT• Mesti a has a great potenti al to become a place for year–round fun and adventure. • Summer in Svaneti off ers an array of stunning landscapes, lush and wild fl ora, rare wildlife, fl owing rivers and lakes.

MASSIVE INVESTMENT OPPORTUNITIES IN TETNULDI, MESTIAMASSIVE INVESTMENT OPPORTUNITIES IN TETNULDI, MESTIA• 84 EUR milion for ski resort cluster with skier carrying capacity of 7,900• 15,500 beds of diff erent types (resort village type, single-family units, multi -family units) and shopping centers to be developed

IDEAL NATURAL ENDOWMENT CONDITIONSIDEAL NATURAL ENDOWMENT CONDITIONS• 5 months of permanent snow• Average temperature in winter of -6.40C• Elevati on range of 1400 – 2300m• 12.6 hours of average daylight hours• Olympic downhill piste standard with 988m verti cal drop • Majesti c alpine plateau landscape next to UNESCO heritage site

SKI FACILITIES IN PLACESKI FACILITIES IN PLACE• New ski cable way of 1400m length with capacity of 1000 passengers per hour • 6 ski lift s in the pipeline

MASTER INFRASTRUCTURE ESTABLISHEDMASTER INFRASTRUCTURE ESTABLISHED• Mesti a internati onal airport• Ready uti liti es infrastructure: water, sewage, energy• Mesti a Development concept was prepared by famous internati onal company Ecosign –Mountains Resort Planners

INVESTMENT OPPORTUNITIES IN GEORGIA’S UPCOMING SKI DESTINATION - MESTIA

VESTORGIA


INVESTMENT OPPORTUNITIES IN GEORGIA’S EXISTING SKI DESTINATION - GUDAURI

MASSIVE INVESTMENT MASSIVE INVESTMENT OPPORTUNITIES IN GUDAURIOPPORTUNITIES IN GUDAURI

• Additi onal hotel capacity of diff erent types (resort village type, single-family units, multi -family units)

ESTABLISHED BRAND ESTABLISHED BRAND NAME IN WINTER NAME IN WINTER TOURISM IN GEORGIATOURISM IN GEORGIA

• No.1 ski desti nati on in Georgia• 1.5-hour drive from Tbilisi with improved road• 5 months of permanent snow• One of fi nest high-alti tude powder snow in Europe• Elevati on range of 2000 – 3300m• 20+ km of ski tracks with signifi cant expansion opportuniti es• Heliski as a Gudauri’s winter sport trademark• Ready uti liti es infrastructure: water, sewage, energy

FOUR SEASON RESORT FOUR SEASON RESORT VALUE PROPOSITIONVALUE PROPOSITION

• Majesti c landscapes allowing for a wide range of summer tourism acti viti es such as trekking, horse riding, bird watching and river racing


IN IN GEO


INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITIES IN GODERZI, ADJARAIN GODERZI, ADJARA

• Four-season ski resort cluster with skier carrying capacity of 7,000• 633-ha area with tourism infrastructure developed by the government (investment worth EUR 11 million)• Accodomodati on of diff erent types (hotels, apartments, villas, multi - family townhouses, pensions) and shopping centers to be developed• Non-winter tourism faciliti es e.g. golf course

IDEAL NATURAL ENDOWMENT CONDITIONSIDEAL NATURAL ENDOWMENT CONDITIONS

• 5-6 months of permanent snow• Elevati on range of 1700-2400m• 150 hectares of skiable terrain• 35 km of pistes

FOUR-SEASON RESORT FOUR-SEASON RESORT VALUE PROPOSITIONVALUE PROPOSITION

• Spring: golf-course, forest hiking, green lake park, Alpine Wildfl ower display, mineral spring• Summer: Scenic mountain-top lookout, bear sanctuary and nature center• Autumn: Arti st’s studio village, cha-cha disti llery, demonstrati on farms, traditi onal workshops

GOOD ACCESSIBILITYGOOD ACCESSIBILITY

• 2-hour drive from Batumi Internati onal Airport• 3-hour drive from Tbilisi Internati onal Airport

INVESTMENT OPPORTUNITIES IN GEORGIA’S UPCOMING SKI DESTINATION - GODERDZI


VESTORGIA


RENOWNED DESTINATION IN CAUCASUSRENOWNED DESTINATION IN CAUCASUS

• Located in West Georgia, Imereti region• Widely popular desti nati on for health treatments from Soviet ti mes• Tskaltubo-famous brand in CIS countries• Existi ng and operati ng set of sanatoriums and baths receiving visitors on a daily basis

RICH NATURAL ENDOWMENTSRICH NATURAL ENDOWMENTS

• Vast reserve of thermal waters with unique therapeuti c qualiti es• Subtropical climate, Rich Nature• 2000 hours of sunshine annually

EASY ACCESS WITH MASTER INFRASTRUCTURE EASY ACCESS WITH MASTER INFRASTRUCTURE ESTABLISHEDESTABLISHED

• 7 km away from Kutaisi – 2nd largest city of Georgia • 20 minutes from Kutaisi internati onal airport• New highway• Renovated city infrastructure

Investment opportuniti es – Renovati on and redevelopment of 15 existi ng sanatoriums into luxury spa resorts

State ownership 100%

TSKHALTUBO - POTENTIAL FOR SPA & WELLNESS RESORT DEVELOPMENT


IN IN GEO

Russia

Kazakhstan

Uzbekistan

Afghanistan

Pakistan

IranIraq

Syria

Turkmenistan

Kyrgyzstan

Tajikistan

CaspianseaTurkey

Black sea

Ukraine

IsraelMediterranean sea

India

Lithuania

EgyptSaudi Arabia

Libyaa

nisia

ItalyBulgariaRomania

Germany

Russia

Kazakhstan

Uzbekistan

Afghanistan

Pakistan

IranIraq

Syria

Turkmenistan

Kyrgyzstan

Tajikistan

CaspianseaTurkey

Black sea

Ukraine

IsraelMediterranean sea

India

Lithuania

EgyptSaudi Arabia

Libyaa

nisia

ItalyBulgariaRomania

Germany

INVESTMENT OPPORTUNITIES IN GAMBLING BUSINESS

• Legislati on in surrounding countries prevents people from enjoying gambling faciliti es, but Georgia will provide them with high quality gambling experience similar to world class gambling desti nati on.• Countries where gambling is completely or parti ally prohibited: Russia, Ukraine, Turkey, Azerbaijan, Iran, Israel, Kazakhstan etc.• Easy access by Land, Sea and Air makes Georgia att racti ve gambling desti nati on for all above countries and beyond. • Gambling business is fully decriminalized.

INTEGRATED REGIONAL CASINO CITY PROPOSITIONINTEGRATED REGIONAL CASINO CITY PROPOSITION- 4-5 star hotels- Full-serviced casino faciliti es- Integrated sporti ng and recreati onal faciliti es: golf courses, water park, shopping complexes, spa faciliti es, entertainment center- Full range of services off ered from conferences & meeti ng, events management, childcare services

Regional countries banning gambling acti viti es either for locals or everyone country-wide

Fiscal incenti ves available

FFiscal incenti ves available

INVESTIN GEORGIA

GEORGIAN NATIONALGEORGIAN NATIONALINVESTMENT AGENCYINVESTMENT AGENCY

www.investingeorgia.orgwww.investingeorgia.org

E-mail: enquiry@investi ngeorgia.orgPortf olio Manager: Nino Tsetskhladze

E-mail: ninot@investi ngeorgia.org

tourism

Documents

hotel capacity

investment opportunities

free hotel master plan

sector tourism

roomsincentives free

planned development

adventure activities

days average