New investment opportunities in Hotel infrastructure and Tourism - Focus Abkhazia
Highly attractive opportunities from the new emerging market of Abkhazia-Hotels and Resorts!
By: Invest Abkhazia
Tourism is the most important of Abkhazia's industries. The country boasts spectacular beaches, wooded mountains, countless historical sites and a rich cultural legacy. Its picturesque nature makes Abkhazia a popular tourist destination. The number of tourists increasing every year hitting 2 million visitors from neighboring Russian and demonstrating the clear lack of newly built or refurbished hotels replying to the expectations of the modern guests. Construction of the modern facilities and hotels oriented on the comfortable and healthy lifestyle are a part of the strategic program of infrastructure development. Sochi, a Russian town which is only twenty kilometers north of the Abkhazian-Russian border, won the bid for the 2014 Winter Olympics. Abkhazia has offered support for development projects in preparation for the Olympics. Given the proximity of such a huge investment project and Abkhazia’s construction sector, the Winter Olympics will become a significant boost for the economy. For decades Abkhazia has been the destination of choice for millions of visitors from Russia and CIS, many of them return to its shores year after year. The loyalty and new trends in the market ensures the sustainable development of the destination and it is success among connoisseurs of this ecological and generous land.
Key factors of Tourism development in Abkhazia:
Excellent Climate and Natural Resources. Abkhazia managed to preserve its unique and virgin natural parks and resources. The water resources are every abundant: there are 10 glaciers in mountains, 2 large and 5 medium size rivers, numerous geysers, few lakes, 150 mineral water springs, and huge underground water deposits. The range of altitude, temperature and soil variability has created an enormous ecological diversity and a huge wealth of biological resources. The climate is subtropical, with mild winter and warm summer. All climatic zones - from the humid subtropical climate on the coast, to the vast grassland on the slopes of the Caucasus mountain range, there is even a zone of perpetual snow on the mountain tops. Climate Abkhazia may envy even the French Riviera resorts - 220 days of sunshine here - more than on the Cote d'Azur.
Between Mountain and Sea. The Black Sea entry point, Abkhazia spread on 125 km of coastline along virgin beaches and natural parks what offers today exclusive and exceptional in its is kind opportunities for Tourism business activities. There are following investment opportunities Abkhazia offers:
Proximity to the Olympics 2014. For the reason of the strategic proximity and exceptional market potential, Abkhazia has offered support in the development of projects for the Olympics.
National Scale of project. The tourism infrastructure projects are all included in the Program of the national economy strategic development and will benefit best conditions possible in terms of investments, government support and tax relieves.
Efficiency of the transport system. Abkhazia is strategically located and its geographical proximity to Russia has a direct implication to its tourism services export. In the country there are functional roads, railways, 2 airports and sea ports.
Low cost labor force and utilities. Abkhazia is a very competitive market in terms of wages and electricity rates. There are 3, 2 milliards kilowatt-hour electricity produced daily at the Inguri hydroelectric power station, which is exporting energy to neighboring countries and use locally around 1,6 milliards. The rates of electricity are about 0, 02 USD kilowatt-hour.
Investment opportunities. Nowadays Abkhazia is offering to foreign investors absolutely unique and priceless opportunities in the following sectors:
• Investments in Sea and Ski Resorts
• Development of Balneal resorts
• Refurbishments of existing hotels and facilities
• Development of new Hotel chains (European standards)
• Construction of modern Marina and Boat facilities
• Development of the liner –cruise business
• Development of the ecotourism and extreme tourism
• Diving, speleology and hang gliding
• Mountain tourism and trekking
All supplementary details on projects, properties and country will be sent upon your request and confirmation of the interest in specific FDI area. We are aiming to meet the expectations of both the savvy investors and the first time investors that’s why we are learning every case with maximum precision and accuracy. Moreover, we will provide the complete services by involving experienced consulting experts and lawyers who know how to maximize the potential returns and guarantee the profitability and safety of investments. Comparatively to Abkhazia, prices have shot up by 50 percent in Sochi, the fastest-growing resort in Russia, as investment has flooded in on thoughts that the city will be successful in its bid to host the 2014 Winter Olympics. At the same time, Abkhazia still offers cheap accommodation, properties, and the absence of a visa requirement for Russian tourist, altogether providing the long-term benefit and easy entry mode to the newly established market.
Ms Regina LAMOUR (MA, MBA)
Representative in MENA Region
Director of the Project «Invest Abkhazia»