Georgia Investment Perspectives Fast Growing Number of International Visitors
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Georgia Investment Perspectives Fast Growing number of international visitors 2.6 mln visitors in 6m 2016 International Visitors Inflow, mln 5.9 mln (y/y increase 12.9%) 5.5 5.35 4.9 2.8 2011 2012 2013 2014 2015 2016 Top 5 Countries by Arrivals in 2015 Inflow of visitors in Georgia by 2025 (Georgian 11 million Armenia 1.4 Tourism Development Strategy) Azerbaijan 1.4 visitors Turkey 1.3 Citizens of 97 countries can travel to Georgian without visa, including: Mln Russia 0.9 OECD countries EU Ukraine 0.14 CIS countries Opportunities in Tourism Sector “SUN-BEACH” WINTER SKI MOUNTAIN REGIONAL SPA RESORTS RESORTS RESORTS RESORTS CASINO CITIES Expansion of summer “sun and Master development of winter Four season resort Development of Spa Development of beach” franchise focusing on resorts with unique profile value preposition Resorts large-scale DESCRIPTION DESCRIPTION high and mid segments equivalent to the Alps integrated casino complex to serve regional markets. All inclusive summer resorts . Government is fully . Majestic landscapes allowing . Include hotels, different . Include hotels, casino . New master resort committed to provision of for a wide range of summer types of clinics, fitness, entertainment, family development basic infrastructure tourism activities such as outdoor activities services and shopping trekking, horse riding, bird . Fiscal incentives available watching and river racing . Batumi . Mestia . Mestia . Tskaltubo . Gonio . Gudauri . Gudauri . Akhtala . Anaklia . Bakuriani . Bakuriani . Other locations POTENTIAL LOCATIONS POTENTIAL . Kobuleti . Goderdzi . Goderdzi . Other Black Sea locations . Kazbegi . Other locations 12 000 historical and cultural monuments 2400 spring of mineral waters 103 resorts and 182 resort areas; 84 protected areas UNESCO heritage cites 3 Hotel market in Georgia Existing and upcoming supply in Tbilisi hotel market 2013-2018F Existing and upcoming supply in in Batumi hotel market 2013-2017F 13605 19577 20000 17544 10716 15000 13045 13898 15000 8782 12038 7079 10025 10000 5706 8955 6240 8025 5000 10000 4915 5481 5967 6357 4028 5036 2553 3207 0 5000 210 234 243 247 257 262 87 116 135 141 147 0 2013 2014 2015 2016 F 2017F 2018F 2013 2014 2015 2016F 2017F Accomodation units Number of rooms Number of beds Number of Accomodation units Number of Rooms Number of beds Occupancy rates in Tbilisi (2015) Upcoming Brand Hotel in Georgia 80 72 % 65 % 60 49 % 40 20 0 International Brands Local upscale and Middle class Local Budget/Economy Class 4 Source: Colliers International Tbilisi Profile Population 1 175 200 Population Density 2 398.4 person/sq.km City Area 490 sq. km Number of Local More than 200 Hotels Existing: Radisson, Tbilisi Marriott, courtyard Marriott, Holiday Inn, Apart'hotel Citadines, Best Number of Western Tbilisi, Sheraton Metekhi Palace, Mercure, International Brand Hotels & Preference. Hotels Upcoming: Park Inn by Radisson, Millennium, Rixos, Intercontinental, Hyatt Regency, Moxy, Kass. Infrastructural Tbilisi International Airport, Tbilisi Railway Station, facilities Underground. Theme Park Development The Government of Georgia intends to select an investor for the development of multifunctional leisure area in the Krtsanisi Park territory, Tbilisi, Georgia. The area should include destination park with high class rides, attractions and appropriate services on – site. City Center Land Area: 7 252 113 sq.m. Usable area for construction: 1 162 925 sq.m. Distance to the Railway Land owner: State station 20 km Airport PROJECT ADVATAGES Untouched parkland environment that has huge Development potential. Proximity to the city center and all main transport infrastructure. Absence of regional entertainment destination (theme park, destination park, etc.). Access to the market with 40 million consumers within 500 km area. Park Territory Usable area for construction Park territory Theme Park Territory Average Temperature °C in Tbilisi Average Daily Sunshine in Tbilisi 10 8.3 8.3 31 31 8 28 26 8 6.9 6.9 23 5.7 5.3 19 20 20 20 6 4.6 16 15 13 12 13 3.2 3.6 3.4 3 7 8 8 10 8 4 3 4 2 -2 -1 0 0 Average High Temp °C Average Law Temp °C Avg. daily hours Average rainfall days in Tbilisi Country Distances 15 Turkey 10 12 13 12 5 9 10 9 11 9 6 6 8 7 40 km Azerbaijan 0 Armenia Avarage Rainfall days Gonio, Batumi profile Population 154,000 City Area 64.9 sq. km Number of More than 100 accommodations Number of Existing: Radisson, Sheraton, Hilton, Divan. Land Plot International Brand Upscale Location Upcoming: LeMeridien, Swissotel, Courtyard and Midscale Marriott, Rooms Hotel, etc. Hotels Infrastructural Batumi International Airport, Batumi Railway Station, Facilities Batumi Sea Port Gonio which is one of the oldest inhabited areas of Georgia is located on the south part of Batumi city. The first settlements in Gonio appeared in VIII-VII B.C. Gonio Old Gonio territory is famous with its merged historical architecture, the Gonio fortress, stony beaches and admirable landscapes. Gonio Development The Government of Georgia intends to select an investor to develop 314 HA state-owned territory in the Best possible manner that comprises both commercial viability of the project and sustainable growth of Georgian economy. Distance to: Batumi International Airport – 5 minutes Batumi City Center – 10 minutes Turkish border – 10 minutes Basic Requirements for the Project Development Concept Principles of sustainable development, environmentally friendly economy and green landscape design. Public structures/area should occupy no less than 30% of the territory. Residential area should not exceed 10% of the whole project and should not be located on the first line (from seashore) of the development. The Government of Georgia undertakes: Construction and connection of engineering and municipal infrastructure (roads, sewerage, water, support of electricity, communications and network, support of gas) up to the land territory. Planning and construction of the bridge for vehicles across the Black Sea. Gonio Feasibility Study and Development concept was prepared by Colliers International in Association with HOK. However, Government of Georgia is open discuss any adjustments to the concept/different development concept. Tskaltubo - Medical and Wellness Spa Resort Tskaltubo is a well-known medical resort and destination in the Imereti region, in the West of Georgia. Famous Brand in CIS countries, served market of 300 mln people. Tskaltubo is rich of unique thermal curative waters. Land: 79 ha Tskaltubo Buildings: 203,370 m2 Russia Ownership: 100% State 6 Mestia 2 17 9 7 11 8 Kulevi 19 4 Black 10 3 15 Sea Poti Kutaisi 12 18 Tbilisi 16 13 Investment field Batumi • 16 buildings under privatization 5 14 • Total hotels build up area 220 000 m2 Turkey MRN • Investment volume USD 700-800 mln Railway Armenia Azerbaijan • Development term 10 years 1 • Kutaisi (international airport)– 20 minutes • Tbilisi – 3.5 hours • Batumi – 2 hours Note: The Feasibility study and general master plan of the resort was conducted by the Distance 10 Austrian company “Kohl &Partners”. Contact Person: Ms. Nino Tsetskhladze [email protected].