4. TOURISM
FAST GROWING SECTOR
• Tourism contributes 6.7 % of GDP
IN
• 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 duration of stay - 9 days, the median visitor stays - 2days / Average spend of USD 330
• Overall capacity of < 15,110 rooms
• Already operating international brand hotels - Sheraton, Radisson, Marriot, Holliday Inn, (under construction -
Kempinski, Hillton) etc.
IN GEO
POTENTIAL
• Youth Olympics in 2015
• Free tourism zones – summer resorts
• Availability of gambling business – gaming is partially or completely banned in Russia, Ukraine, Azerbaijan,
Kazakhstan,Turkey, Israel, Iran, Iraq
• 8 national parks
• 2400 springs of mineral waters
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GEORGIA IS EXPECTING SIGNIFICANT GROWTH
TRAJECTORY IN TOURIST ARRIVALS
VEST
INTERNATIONAL ARRIVALS HAVE SEEN ~40% YEAR-ON-YEAR GROWTH
TOTAL INTERNATIONAL TOURIST ARRIVALS
NUMBER OF ARRIVALS INTO GEORGIA
ORGIA
RGIA
5.5
4.4
2.8
2.0
1.3 1.5
1.0 1.1
0.6
Source: Georgian National Tourism Administration
6. INTERNATIONAL LUXURY HOTEL CHAINS DOING WELL:
MORE ARE COMING TO THE MARKET
VERBATIMS OF INTERNATIONAL HOTEL BRANDS IN GEORGIA
IN
UPCOMING
INTERNATIONAL HOTEL
HOTEL CHAIN HOTELIER’S ASSESSMENT OF PERFORMANCE BRANDS BEFORE 2015
“We have seen significant increases in occupancy
rate and financials since 2010. This year [2012] high
LOCATION
season has seen a very promising start. We have
advance reservations booked for almost the whole
summer”
– Omer Subasi BATUMI
General Manager
IN GEO
“We are very optimistic as demand has been
increasing rapidly. Hotel occupancy hovers around
TBILISI
85%. Our guests come from all around the world
representing various sectors including business,
sportmen and tourists”
– Oto Berishvili
Sales & Marketing Manager
BATUMI
“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 TBILISI
from May to September” BATUMI
– Alexander Kvaratskhelia
Marketing Manager
TBILISI
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INVESTMENT OPPORTUNITIES IN TOURISM SECTOR
“SUN-BEACH” WINTER SKI SUMMER SPA RESORTS REGIONAL
RESORTS RESORTS MOUNTAINS CASINO CITY
VEST
RESORTS
DESCRIPTION
Expansion of Master development Four season resort Development of Spa Development of
summer ”sun and of winter resorts value preposition Resorts large-scale
beach” franchise with unique profile integrated casino
focusing on high- equivalent to the complex to Serve
end segment Alps regional markets.
ORGIA
• All inclusive • Government is • Majestic • Include hotels, • Include hotels,
summer resorts fully committed landscapes Different casino
• New master resort to provision allowing types of Clinics, entertainment,
POTENTIAL LOCATION
development of basic for a wide range fitness,Outdoor family Services
infrastructure of summer activities and shopping
tourism activities • Fiscal incentives
such as trekking, available
horse riding, bird
watching and river
racing
• Batumi • Mestia • Mestia • Tskaltubo • Batumi
• Anaklia • Gudauri • Gudauri • Akhtala • Tbilisi
• Kobuleti • Bakuriani • Bakuriani • Other locations • Other locations
• Other Black Sea • Goderdzi • Goderdzi
locations • Kazbegi
• Other locations
8. INVESTMENT OPPORTUNITIES IN FREE TOURISM
ZONES - ANAKLIA EXAMPLE
• Breathtaking landscape of Black Sea’s
IN
sandy beach
UPCOMING • 3 already operating hotels, 2-under
construction
TOURIST
• Biggest aqua park in the Caucasus
DESTINATION • Wide range of tourist activities
from sun & beach, cultural heritages
to adventure activities
• Favorable and warm climate
EASY ACCESS
AND MODERN • Easy access to Kutaisi and Batumi
international airports
IN GEO
INFRASTRUCTURE
• Easy access to highway connecting
with Batumi and Poti
• 4-km long seaside boulevard
STATE-LED • Full engineering utility networks
(water, electicity,gas)
INFRASTRUCTURE
• Pedestrian bridges
DEVELOPMENT • Concert halls and theaters
• Prepackaged hotel projects
• Free casino license for hotel capacity
over 80 rooms
INCENTIVES
• Free land for development may be
applied
• Tax exemption may be applied
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INVESTMENT OPPORTUNITIES IN FREE TOURISM
ZONES - KOBULETI EXAMPLE
• Georgia’s seaside health resort on
VES
VEST
Black Sea coast
UPCOMING • Unique Fine Forest “Pichvnari” as part
of Kolkheti Valley
TOURIST
• 3 hotels are under construction
DESTINATION • Biggest amusement park in the
Caucasus
• Favorable and warm climate
EASY ACCESS
AND MODERN • Easy access to Batumi
international airport (30 minutes)
ORGIA
RGI
G
INFRASTRUCTURE
• Easy access to highway connecting
with Batumi
• Pre-planned development area of 11.3
PREPACKAGED ha for 27 hotels
• The lands available are located 140
PROJECTS
meters from Black Sea in
“Pichvnari” (Fine forest) area
• Affordable investment range of USD
1-3 million
• Free Hotel Master Plan
• Fully provided utilities network and
INCENTIVES
outdoor infrastructure
• Free Land and tax exemption may be
applied
10. INVESTMENT OPPORTUNITIES IN GEORGIA’S
UPCOMING SKI DESTINATION - MESTIA
IN
FOUR SEASON MOUNTAIN RESORT
• Mestia has a great potential to become a place for year–round fun and adventure.
• Summer in Svaneti offers an array of stunning landscapes, lush and wild flora,
rare wildlife, flowing rivers and lakes.
MASSIVE INVESTMENT OPPORTUNITIES IN TETNULDI, MESTIA
• 84 EUR milion for ski resort cluster with skier carrying capacity of 7,900
• 15,500 beds of different types (resort village type, single-family units,
multi-family units) and shopping centers to be developed
IDEAL NATURAL ENDOWMENT CONDITIONS
IN GEO
• 5 months of permanent snow
• Average temperature in winter of -6.40C
• Elevation range of 1400 – 2300m
• 12.6 hours of average daylight hours
• Olympic downhill piste standard with 988m vertical drop
• Majestic alpine plateau landscape next to UNESCO heritage site
SKI FACILITIES IN PLACE
• New ski cable way of 1400m length with capacity of 1000 passengers per hour
• 6 ski lifts in the pipeline
MASTER INFRASTRUCTURE ESTABLISHED
• Mestia international airport
• Ready utilities infrastructure: water, sewage, energy
• Mestia Development concept was prepared by famous international
company Ecosign –Mountains Resort Planners
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INVESTMENT OPPORTUNITIES IN GEORGIA’S
EXISTING SKI DESTINATION - GUDAURI
VEST
MASSIVE INVESTMENT
OPPORTUNITIES IN GUDAURI
• Additional hotel capacity of different types
(resort village type, single-family units, multi-family units)
ESTABLISHED BRAND
NAME IN WINTER
TOURISM IN GEORGIA
ORGIA
• No.1 ski destination in Georgia
• 1.5-hour drive from Tbilisi with improved road
• 5 months of permanent snow
• One of finest high-altitude powder snow in Europe
• Elevation range of 2000 – 3300m
• 20+ km of ski tracks with significant expansion opportunities
• Heliski as a Gudauri’s winter sport trademark
• Ready utilities infrastructure: water, sewage, energy
FOUR SEASON RESORT
VALUE PROPOSITION
• Majestic landscapes allowing for a wide range of
summer tourism activities such as trekking, horse
riding, bird watching and river racing
12. INVESTMENT OPPORTUNITIES IN GEORGIA’S
UPCOMING SKI DESTINATION - GODERDZI
INVESTMENT OPPORTUNITIES
IN
IN 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)
• Accodomodation of different types (hotels, apartments, villas, multi-
family townhouses, pensions) and shopping centers to be developed
• Non-winter tourism facilities e.g. golf course
IDEAL NATURAL ENDOWMENT CONDITIONS
• 5-6 months of permanent snow
IN GEO
• Elevation range of 1700-2400m
• 150 hectares of skiable terrain
• 35 km of pistes
FOUR-SEASON RESORT
VALUE PROPOSITION
• Spring: golf-course, forest hiking, green lake park, Alpine Wildflower
display, mineral spring
• Summer: Scenic mountain-top lookout, bear sanctuary and nature center
• Autumn: Artist’s studio village, cha-cha distillery, demonstration farms,
traditional workshops
GOOD ACCESSIBILITY
• 2-hour drive from Batumi International Airport
• 3-hour drive from Tbilisi International Airport
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TSKHALTUBO - POTENTIAL FOR SPA & WELLNESS
RESORT DEVELOPMENT
RENOWNED DESTINATION IN CAUCASUS
VEST
• Located in West Georgia, Imereti region
• Widely popular destination for health treatments from
Soviet times
• Tskaltubo-famous brand in CIS countries
• Existing and operating set of sanatoriums and baths
receiving visitors on a daily basis
RICH NATURAL ENDOWMENTS
ORGIA
• Vast reserve of thermal waters with unique
therapeutic qualities
• Subtropical climate, Rich Nature
• 2000 hours of sunshine annually
EASY ACCESS WITH MASTER INFRASTRUCTURE
ESTABLISHED
• 7 km away from Kutaisi – 2nd largest city of Georgia Investment opportunities –
• 20 minutes from Kutaisi international airport Renovation and redevelopment of
• New highway 15 existing sanatoriums into luxury
spa resorts
• Renovated city infrastructure
State ownership 100%
14. INVESTMENT OPPORTUNITIES IN GAMBLING BUSINESS
• Legislation in surrounding countries prevents people from enjoying
gambling facilities, but Georgia will provide them with high quality gambling
experience similar to world class gambling destination.
IN
• Countries where gambling is completely or partially prohibited: Russia, Ukraine,
Turkey, Azerbaijan, Iran, Israel, Kazakhstan etc.
• Easy access by Land, Sea and Air makes Georgia attractive gambling destination for
all above countries and beyond.
• Gambling business is fully decriminalized.
Fiscal
Fiscal incentives
available
INTEGRATED REGIONAL CASINO CITY PROPOSITION
IN GEO
- 4-5 star hotels
- Full-serviced casino facilities
- Integrated sporting and recreational facilities: golf courses, water park, shopping
complexes, spa facilities, entertainment center
- Full range of services offered from conferences & meeting, events management,
childcare services
Russia
Lithuania
Germany
Ukraine
Kazakhstan
Italy Romania
Bulgaria Black sea
Uzbekistan
Caspian Kyrgyzstan
Turkey sea Turkmenistan
Tajikistan
Syria
Mediterranean sea
nisia Afghanistan
Israel Iraq Iran
Pakistan Regional countries banning gambling activities either for
a Libya Egypt
Saudi Arabia India
locals or everyone country-wide
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15. INVEST
IN GEORGIA
GEORGIAN NATIONAL
INVESTMENT AGENCY
www.investingeorgia.org
E-mail: enquiry@investingeorgia.org
Portfolio Manager: Nino Tsetskhladze
E-mail: ninot@investingeorgia.org
