Free tourist zone to be set up in Kobuleti
14 October, 2010
Free tourist zone to be set  up in Kobuleti

A free tourist zone exempted from property and income taxes will be set up in Kobuleti, Ajara region soon. The government-initiated bill is going through accelerated parliamentary procedures so as to make the free tourist zone idea true as soon as possible. 
Certain allowances will be determined for construction of the hotels within the pine-grove at the territory of Kobuleti municipality, the Black Sea resort of Georgia in Ajara region. The construction site in the pine-grove is by 140 meters

away of the seaside and encompasses three land-spots with the total area of 11.3 thousand hectare. Three types of hotels are defined to be constructed there: 5,6 and 7-story buildings including 42, 52 and 60 rooms respectively. 27-30 hotels are supposed to be constructed ultimately.

Businessmen, who will invest at least GEL1 million in hotel construction in Kobuleti and sustain the hotel profile during 15 years, will be exempted from the property and income taxes for the equal period. The construction sites will be handed to such investors for symbolic price as of GEL1. Government will ensure organization of the adequate infrastructure for the hotels and leisure complexes with the purpose of fostering development of the corresponding project. This is a pilot project and government is interested to approve it as soon as possible. Submission of investors’ applications started on September 15, 2010 however the draft law on Assistance of Kobuleti Free Tourist Zone Development that must regulate implementation of the pine-grove project is still under parliamentary procedures. Government asked the legislative body past week to approve the law in an accelerated way that means to get through all due procedures during one plenary session week.
The problem is that according to the governmental initiative entrepreneurs will be exempted from income and property taxes only if they manage to get through with construction works till August 1st, 2011. Application submission deadline is October 30, 2010 and the draft law is desirable to be approved by that time.
Acceptance of this law will not affect the income part of the state budget, the bill explanation note assures as far as companies participating in the project are not completely exempted from all taxes. Some state budget allocations are earmarked on development of gas, water and electricity infrastructure within the free tourist zone territory. Respective ministries will insure implementation of infrastructure works. No unforeseen financial liabilities are supposed to occur due to the free tourist zone project.

According to Giorgi Khuroshvili, the Parliamentary Secretary of the Government of Georgia, the questioned project was elaborated with the aim of fostering creation of the profitable conditions for the development of entrepreneurship and tourism in Georgia.
Kakha Okriashvili, the MP called on the Government to implement the similar projects in the other regions such as Borjomi, Kazbegi, Tusheti, Dmanisi and etc. Khuroshvili does not exclude that similar project will be deployed in other tourist venues as well if the pilot project in Kobuleti is successful. According to him, the upcoming project caused quite a big interest and the Government was addressed with much more proposals that expected.
As Levan Varshalomidze, Chairman of Ajara government, is reported saying by GHN news agency on October 8, 2010, 48 investors [8 out of the figure are foreign investors] appear interested to participate in hotel construction within Kobuleti pine-grove and financial and economic ministry of Ajara will start preparation of agreements starting October 11, 2010.  2 thousand rooms are supposed to be added to Kobuleti hotel infrastructure after completion of the government-initiated project and about 500 jobs will be created.

There are some fears however that construction timetables are somewhat unrealistic and it is impossible to complete construction works in nine months.  And unsuccessful investors may face financial sanctions if they break timetables envisaged by contracts. It seems unreasonable to attract due investments when the project countdown is on while the law regulating the project is still under vision. Investors need firm guarantees that they will really enjoy profits out of the pine-grove hotel zone.
But the single proposal government offers in this case is that if investors fail to get through with the construction of hotels by the fixed deadline they can inform Georgian government beforehand and the project implementation period can be prolonged by 3 months. On the other hand MPs propose not to deprive the unsuccessful investors of the project implementation rights immediately [if they fail to meet deadlines] but give a warning first. According to Okriashvili winter in Kobuleti is quite rainy that can create setbacks to construction works even against the backdrop of the art-of-the-state technologies.
Khuroshvili elaborated at the sitting of the Sector Economy and Economic Policy on October 7, 2010 that government aims on successful implementation and fostering of the project and not on sanctions actually.
“I do not want to speak on non-implemented obligations in a strong tone for government hopes investors will honestly meet their obligations,” Khuroshvili said.
Nevertheless MPs decided to set up the scientific-advisory council under the Sector Economy and Economic Policy Committee. The council will discuss the reasonable terms for the implementation of the project. The project should supposedly be completed before August 1st, 2011.

Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
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
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30