Free tourist zones hand-in-hand with gambling business
16 December, 2010
Free tourist zones hand-in-hand with gambling business

To attract investors to Georgian free tourist zones, Government boosts gambling business there. Soon another free tourist zone exempted from property and income taxes will be deployed in Anaklia, Samegrelo region.
Anaklia, one of the most beautiful resorts of Georgian Black Sea littorals, is a potential Free Tourist Zone (FTZ) site. Shortly after the creation of free tourist zone in Kobuleti this November, Georgian government announced another tourist zone in Anaklia last week and appealed to

the parliament to approve the initiative in an accelerated way. Georgian government does not rule out announcing of free tourist zones throughout Georgia if the two said projects become successful. Mestia, in Svaneti [Caucasian highland resort] is named as one of the potential free tourist zones.
Anaklia is supposed to enjoy similar taxation preferences as Kobuleti FTZ: Businessmen, who will invest at least GEL 1 million in hotel construction in Kobuleti/Anaklia and sustain the hotel profile during 15 years, will be exempted from the property and income taxes for the same period. The construction sites will be handed to such investors for the symbolic price of GEL 1. Government will ensure organization of the adequate infrastructure for the hotels and leisure complexes with the purpose of fostering development of corresponding projects.
Contracts with investors concerned will be concluded by the end of January 2011, and construction works of hotels must be completed in 18 months.
The controversial issue is that according to the governmental initiative, entrepreneurs will enjoy the tax-exemption only if they manage to get through with construction works in Kobuleti and Anaklia till August of 2011 and 2012 respectively. On the other hand, government offers to investors who fail to save timetables to inform Georgian government beforehand and the project implementation period can be prolonged by 3 months. However, some experts still fear that these timetables can be a trap for the investors.
Levan Kalandadze, Director Executive of Georgian Association of Small and medium Business, likes the FTZ project in its essence but fears that it lacks a clear strategy and legal basis that may lead to the violation of investors’ rights ultimately.
“The preferences granted by the FTZ project remain on verbal level and are not built in any law as of yet. Who can guarantee that government does not change its mind? And why they fix that short construction deadlines for investors, where do we speed up, what’s all for? Uncertainty makes me alert, were I an investor I would never have invested under such unclear circumstances,” He said.   
Davit Narmania, Executive Director of the Institute of Caucasus Economic and Social Research, thinks that Georgian FTZ investments are long-term projects as they cannot be paid-back in short period.
“Georgia is a small market and cannot compete with neighboring huge Turkish market by price and service, therefore hotels built in Kobuleti and Anaklia can bring profit not earlier than 3-5 years. They will be profitable but only in long-term prospect,” he elaborated.
However to rival with the neighboring tourist market Georgian government decided via boosting gambling business. According to the recent amendment made to the law on Licenses and Permission Tolls, gambling business operated with the newly constructed hotels [accommodating at least 100 rooms] is exempted from tolls imposed on gambling permission for 10 years. The amendment covers only hotels constructed in Ajara seaside including Batumi, Kobuleti and Khelvachauri districts, as well as Anaklia in Samegrelo.
The point is that gambling business is prohibited in neighboring Russia, Azerbaijan, Armenia and Turkey. And according to Narmania, government uses its regional advantage quite dexterously to attract tourist to Georgia.

Print
Other Stories
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
23.06.2019
24.06.2019
USD
1
USD
2.7798
2.7798
EUR
1
EUR
3.1442
3.1442
GBP
1
GBP
3.5220
3.5220
RUB
100
RUB
4.4129
4.4129
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.7798
EUR
1
EUR
3.1442
GBP
1
GBP
3.5220
RUB
100
RUB
4.4129