The GESEM Transformation Into Design and Innovation Center Feasibility It is carried out with the financial support provided by Karacadağ Development Agency within the scope of 2018 Feasibility Support.. Contract No: TRC2/18/FD/0038 1 2 A. EXECUTIVE SUMMARY Şanlıurfa and Harran, UNESCO World Heritage Listed Göbeklitepe and the Şanlıurfa historical city center -which is right now in the temporary Cultural Heritage list-have had a long history of significant positions as the world’s production and trade hubs. Following the industrial revolution, factories replaced crafts bazaars as the demand for hand-made goods decreased day by day. However, it is important to note that crafts are not just a production method, but a foundation, as well as a transition of cultural evolution and development. The traditional crafts are skills that began with the adventure of human’s creativity, where the standardization of their execution is largely based on passed knowledge, are functional and anonymous in character, while containing their own set of rules, as well as a magnificent oral culture with the specific relationship between master and apprentice. The aim of these labor based, high proficiency and experience skills that are transferred via tacit knowledge is to serve the society in various ways. Urbanization, industrialization, social change and globalization threaten the space that allows traditional crafts to thrive in. They are less and less in demand in response to a need. In Şanlıurfa, with the development of the tourism sector and the introduction of Far East mass-produced goods into the market, the crafts had a devastating effect. In this regard, the Project will aim to increase the socio-economic contribution of the locally produced, hand-crafted goods with an added value of design and innovation. The geographical sign system will help protect these goods and ensure quality standardization. Specifically, it is aimed to turn a 19th century heritage structure inside Şanlıurfa historical center, of 1.368,52 square meters, surrounded by 18., 19th and 20th streets, under ŞURKAV’s remit, into Design and Innovation Center. By doing this, the target is to create unity and infrastructure of crafts and design and increase compatibility of Şanlıurfa in tourism, design and innovation The Design and Innovation Center will both create the continuity of traditional crafts and will give a unique experience to the visitors, via the combination of design and crafts. Based on the financial analysis, the budget needed for this structure is an additional 2 Million TL. The reimbursement of this investment is largely based on the sale volume of the products. According to the financial analysis, the return of this investment will take 9 years. The aim of this report is to enlighten the relevant administrative bodies and to transform GESEM into a Design and Innovation center based on the feasibility study. 3 CONTENT TABLES A. EXECUTIVE SUMMARY ............................................................................................................................ 3 B. INTRODUCTION ........................................................................................................................................ 5 C. GENERAL CHARACTERISTICS AND TOURISM INVESTMENT ENVIRONMENT OF ŞANLIURFA 7 D. ŞANLIURFA TRADITIONAL HANDICRAFTS ..................................................................................... 33 E. DEMAND ANALYSIS .............................................................................................................................. 37 F. ANALYSIS AND DESIGN OF THE PROJECT AREA ........................................................................... 39 1. Capacity Analysis and Selection ........................................................................................................ 42 2. Analysis of Alternative Technologies and Selection of Technology ................................................. 43 3. Environmental Impacts, Protection Measures, and Costs of Selected Technology ........................... 44 4. Technical Design ................................................................................................................................ 44 5. Investment Costs ................................................................................................................................ 44 G. PROJECT INPUTS .................................................................................................................................... 45 H. PROJECT IMPLEMENTATION SCHEDULE ......................................................................................... 55 İ. REGIONAL, SOCIAL, CULTURAL AND ENVIRONMENTAL BENEFITS ....................................... 57 1. Regional Benefits ............................................................................................................................... 57 2. Social and Cultural Benefits............................................................................................................... 57 3. Ensuring the continuity of crafts that are about to disappear in Şanlıurfa to meet the needs and demands of the modern world by bringing design and innovation together, ................................................................... 57 4. Ensuring the development of culture, design, creativity, and innovation in the region, .................... 57 5. Ensuring quality and production standardization in craft products and ensuring that regional products are protected against unfair competition, .......................................................................................................... 57 6. Developing the economic added value of crafts and developing the entrepreneurial infrastructure for women and young people in the region, ............................................................................................................ 57 7. Environmental Benefits ...................................................................................................................... 57 J. RISK ANALYSIS ...................................................................................................................................... 58 4 A. INTRODUCTION The purpose of this Report is wto turn a historical building (1,368,52 M2) possessing the characteristics of the 19th century architecture in Şanlıurfa historical city center, with plot number 62 and parcel number 5, surrounded by the 18th, 19th, and 20th streets, owned by ŞURKAV, into a Design and Innovation Center and to provide the craft-design unity and infrastructure in order to increase tourism, design and innovation competitiveness of Şanlıurfa. This feasibility study is a projection to guide public investors and to determine a future vision for the transformation of GESEM (Traditional Handicraft Center) into a design and innovation center within the structure of ŞURKAV. Investment Subject: Design and Innovation Center for 16 different crafts Physical / spatial / financial dimensions: A historical area of 1,368,52 M2 on the plot no. 62 and parcel no. 5 surrounded by the 18th, 19th, and 20th streets in Şanlıurfa historical city center with the characteristics of 19th century architecture has been determined as the project area. It is planned that a total of 16 different crafts will benefit from the area. It is envisaged that approximately 2 million TL will be spent for restoration, furnishing, equipment, training, and promotion activities to transform the area into a design and innovation center. Components of the Investment: The feasibility consists of the following components: 1. Establishment of Design and Innovation Workshops (restoration, furnishing, and equipment) 2. Technology and Digital Design Workshop 3. Jewelry Design Workshop 4. Textile and Weaving Design Workshop 5. Weaving 6. Rug 7. Felt 8. Printing 9. Ceramics and Stone Design Workshop 10. Urban Design Workshop 11. Glass Design Workshop 12. Design and Innovation Training and Workshops 13. Certification and Quality Standards System 14. Digital Sales and Marketing Location and Duration of Application: The investment is planned to be completed within 24 months, including restoration, furnishing, and training in a historical area of 1,368,52 M2 on plot 62 and parcel 5 surrounded by the 18th, 19th, and 20th streets in Atatürk Neighborhood, Haliliye District, Şanlıurfa. The feasibility application period is 22 years including 2 years of preparation phase. The project life is assumed to be 20 years. Investment Incentive Issues: In case the Design and Innovation Center is established and received 500.000 TL or more funding, an Investment Incentive Certificate will be obtained. The certificate has the following advantages: 1. VAT Exemption (for Machinery and Equipment) 2. Customs Duty Exemption (For Machinery and Equipment) 3. Tax Reduction (Investment Contribution Rate 50%, Tax Discount Rate 90%) 4. Insurance Premium Employer Share Support (10 years) 5. Insurance Premium Employee Share Support (10 Years) 6. Income Tax Withholding Support (10 Years) 7. Interest Rate Reduction (7% for TL Loans and 2% for Foreign Currency Loans) Investment Amount An additional investment of TL 2 million was calculated for furnishing, design, equipment, and other requirements. 5 Main outputs of the project: 1. Ensuring the continuity of crafts 2. Bringing a culture of creativity and innovation to the region 3. Developing the entrepreneurship infrastructure in the region 4. Developing tourism products 5. Providing new market opportunities