GeorgiaInvestment Perspectives

2011

2.8

2012 2013

5.35

2014

5.55.9 mln

4.9

Citizens of 97 countries can travel to Georgian without visa, including:

OECD countries

EU

CIS countries

2015

Mln

vis

itors

Fast Growing number of international visitors

International Visitors Inflow, mln

Top 5 Countries by Arrivals in 2015

0.14

0.9

1.3

1.4

1.4

Ukraine

Russia

Turkey

Azerbaijan

Armenia

Inflow of visitors in Georgia by 2025 (Georgian

Tourism Development Strategy)

11 million

2.6 mln visitors in 6m 2016

(y/y increase 12.9%)

2016

3

“SUN-BEACH”RESORTS

WINTER SKIRESORTS

MOUNTAINRESORTS

SPA RESORTSREGIONAL

CASINO CITIES

DES

CR

IPTI

ON

Expansion of summer “sun and beach” franchise focusing on high and mid segments

Master development of winter resorts with unique profile equivalent to the Alps

Four season resortvalue preposition

Development of SpaResorts

Development oflarge-scaleintegrated casinocomplex to serveregional markets.

PO

TEN

TIA

L LO

CA

TIO

NS

All inclusive summer resorts New master resort

development

Government is fully committed to provision of basic infrastructure

Majestic landscapes allowing for a wide range of summer tourism activities such as trekking, horse riding, bird watching and river racing

Include hotels, different types of clinics, fitness, outdoor activities

Include hotels, casino entertainment, family services and shopping

Fiscal incentives available

Batumi Gonio Anaklia Kobuleti Other Black Sea locations

Mestia Gudauri Bakuriani Goderdzi

Mestia Gudauri Bakuriani Goderdzi Kazbegi Other locations

Tskaltubo Akhtala Other locations

Opportunities in Tourism Sector

12 000 historical and cultural monuments 103 resorts and 182 resort areas; 84 protected areas 2400 spring of mineral waters UNESCO heritage cites

4

2013 2014 2015 2016 2017 2018

0

5000

10000

15000

20000

210 234 243 247 257 262

5036 5481 5967 63578025 8955

1002512038 13045 13898

1754419577

Number of Accomodation units Number of Rooms Number of beds

Existing and upcoming supply in Tbilisi hotel market 2013-2018F

0

5000

10000

15000

2013 2014 2015 2016 2017

87 116 135 141 147

2553 3207 40284915

62405706

70798782

10716

13605

Accomodation units Number of rooms Number of beds

Existing and upcoming supply in in Batumi hotel market 2013-2017F

Occupancy rates in Tbilisi (2015)

7265

49

0

20

40

60

80

International Brands Local upscale and Middle class Local Budget/Economy Class

%

Upcoming Brand Hotel in Georgia

Hotel market in Georgia

F F F F F

Source: Colliers International

%

%

Population 1 175 200

Population Density 2 398.4 person/sq.km

City Area 490 sq. km

Number of Local

HotelsMore than 200

Number of

International Brand

Hotels

Existing: Radisson, Tbilisi Marriott, courtyard

Marriott, Holiday Inn, Apart'hotel Citadines, Best

Western Tbilisi, Sheraton Metekhi Palace, Mercure,

Hotels & Preference.

Upcoming: Park Inn by Radisson, Millennium,

Rixos, Intercontinental, Hyatt Regency, Moxy,

Kass.

Infrastructural

facilities

Tbilisi International Airport, Tbilisi Railway Station,

Underground.

Tbilisi Profile

Park territory

Theme Park Development

Distance to the Railway

station 20 km

Usable area

for construction

Park Territory

City Center

Airport

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.

Land Area: 7 252 113 sq.m.

Usable area for construction: 1 162 925 sq.m.

Land owner: State

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.

Theme Park Territory

7 813

1923

28 31 3126

2013

8

-2 -13

812

1620 20

1510

40

Average High Temp °C Average Law Temp °C

6 6 812 13 12

9 10 9 11 9 7

0

5

10

15

Avarage Rainfall days

Average Temperature °C in Tbilisi

3.2 3.64.6

5.76.9

8.3 8.3 86.9

5.3

3.4 3

0

2

4

6

8

10

Avg. daily hours

Average rainfall days in Tbilisi

Average Daily Sunshine in Tbilisi

Country Distances

Turkey

Azerbaijan

Armenia

40 km

Gonio, Batumi profile

Population 154,000

City Area 64.9 sq. km

Number of accommodations

More than 100

Number of InternationalBrand Upscale and Midscale Hotels

Existing: Radisson, Sheraton, Hilton, Divan.

Upcoming: LeMeridien, Swissotel, Courtyard

Marriott, Rooms Hotel, etc.

Infrastructural Facilities

Batumi International Airport, Batumi Railway Station,

Batumi Sea Port

Gonio

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.

Old Gonio territory is famous with its merged

historical architecture, the Gonio fortress, stony

beaches and admirable landscapes.

Land Plot

Location

Gonio DevelopmentThe 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 municipalinfrastructure (roads, sewerage, water, support of electricity,communications and network, support of gas) up to the landterritory.

Planning and construction of the bridge for vehicles across the BlackSea.

Gonio Feasibility Study and Development concept was prepared by Colliers International in Association with HOK. However, Government of Georgia is open discuss anyadjustments to the concept/different development concept.

10

Poti

Batumi

Armenia

Azerbaijan

Russia

Turkey

Black

SeaKutaisi

MRN

Railway

Kulevi

Tbilisi

Mestia

Tskaltubo

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

Buildings: 203,370 m2

Ownership: 100% State

Dis

tan

ce • Kutaisi (international airport)– 20 minutes

• Tbilisi – 3.5 hours

• Batumi – 2 hours

• 16 buildings under privatization

• Total hotels build up area 220 000 m2

• Investment volume USD 700-800 mln

• Development term 10 years

Tskaltubo - Medical and Wellness Spa Resort

Investment field

Note: The Feasibility study and general master plan of the resort was conducted by the Austrian company “Kohl &Partners”.

16 13

12

13

10

19

9 7 11

1

514

15

3

48

17

18

2

6

Contact Person:

Ms. Nino Tsetskhladze

ntsetskhladze@economy.ge