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Identi cation Number : 404430576
Area: 69,700 sq km
Popula on: 4.5 mln
Life expectancy: 75 years
Official language: Georgian
Literacy: 100%
Capital: Tbilisi
Currency (code): Lari (GEL)
GDP 2014: USD 16.5 blnArea: 69,700 sq km
Popula on: 4.5 mln
Life expectancy: 75 years
Official language: Georgian
Literacy: 100%
Capital: Tbilisi
Currency (code): Lari (GEL)
GDP 2014: USD 16.5 bln
Invest
in
GEORGIA
About Seven Seas Consultants LLC
We, Seven Seas Consultants LLC, are a registered
legal entity since 2012, for assistance with investing in
Georgia in various sectors such as Agricultural and
Food processing, Tourism, Hospitality and real estate.
We are an investment consultancy firm , set up to be a
bridge between investors and opportunities available
in domestic as well as international market.
The thought process is to perform as investment
destination promoters , whereby counseling the client
in context of his aspirations , professional expertise,
financial standing and matching the profile with
business opportunities available.
The counseling process involves, extensive probing of
the client in context of his aspirations , professional
expertise, financial standing and matching the profile
with business opportunities available. Sharing
information on ways to setting up / incorporate a
business enterprise, undertake study tours for first
hand information on the business scenario, legal
paperwork, office / boarding / lodging assistance,
residency laws and filling of the same.
About Georgia
Georgia is a country located at the eastern end of the
Black Sea on the southern flanks of Greater Caucasus
Mountains. It is bounded on the north and northeast by
Russia, on the east and southeast by Azerbaijan, on
the south by Armenia and Turkey, and on the west by
the Black Sea. The capital of Georgia is Tbilisi.
The current republic of Georgia has been independent
since 1991. Georgia is a member of the United Nations,
the Council of Europe, the World Trade Organization,
the Organization of the Black Sea Economic
Cooperation, the Organization for Security and
Cooperation in Europe, the Community of Democratic Choice, the GUAM Organization for Democracy and
Economic Development, and the Asian Development Bank.
Key reasons to invest in Georgia
A politically stable investment destination
Ef cient, pro-business and corruption-free government
Enlargement of market size by Free Trade Agreement
Competitive cost of labor and energy
Entry gate in the region
Stable and conservatively managed banking sector
Very low crime - rate
Solid sovereign balance sheet
A Glimpse on Georgia
1
Sevenseas Consultants LLC
DOING BUSINESS IN GEORGIA
Up from 112 in 2005
Country's impressive progress in improving business climate has been well documented
in a number of international indices. Source: World Bank, 2015
(Rank out of 189 countries)
Georgia is considered as essentially a corruption-free investment destination where rule of law
has been given the right way
Source: Transparency International 2013
(GLOBAL CORRUPTION BAROMETER)
EASE OF DOING BUSINESS
GLOBAL CORRUPTION BAROMETER
CORRUPTION FREE COUNTRY
2Sevenseas Consultants LLC
ECONOMIC STRUCTURE AND TRENDS
GDP: STRONG REBOUND AFTER
A RELATIVELY SMALL
CONTRACTION IN 2009
RAPIDLY GROWING GDP PER
CAPITA RAPIDLY GROWING GDP
PER CAPITA
LEADING TRADE REGIMES
FTA with CIS countries: Ukraine, Azerbaijan
Armenia, Russia, Moldova, Kazakhstan, Kyrgyzstan,
Tajikistan, Uzbekistan, Turkmenistan
FTA with Turkey
DOFTA (Deep and Comprehensive free Trade Agre-
ement ith EU was signed on June 27, 2014
GSP agreement with USA, Norway, Switzerland,
Canada, Japan
Member of WTO
Very simple and service
oriented customers policy
and administration
Almost no custom duty - 80
percent of goods free from
import tariffs
No quantitative restrictions
PREFERENTIAL TRADE REGIMES CUSTOMS
3
Sevenseas Consultants LLC
Population of Georgia - 4.5 million
Existing FTA = 400 million
DCFTA + 0.5 million
OPPORTUNITY - MARKET SIZE
TAXATION IS SIMPLE, LOW, EFFICIENT AND FAIR
No payroll tax or social insurance tax
No capital gains tax
No wealth tax and inheritance tax
Personal income tax for interest, dividend, royalty - 5%
Foreign-source income of individuals fully exempted
Accelerated depreciation on capital assets
Loss carry forward for corporate pro t tax purposes
(10 years)
No restricting on currently convertibility or repatriation of
of capital & pro t
Acess to - 900 million market
without customs duty
TOTAL - 0.9 BILLION
4Sevenseas Consultants LLC
TRANSPORT NETWORK IN GEORGIA
15 Berths, 8-11, draft
Container(500k TEU) oil
products/bulk (10ln.t/year)
APM terminals
11 Berths, 1 Offshore, 9-12m draft
Oil/products (15min.t/year). bulk
(2mln.t.year). containers (100 000 TEU)
JSC KazTransOil
New ICT
1,575.386 million passengers in 2014
Capacity: 3 million passengers
Serving 35 destinations
213,439 million passengers in 2014
218.003 passengers in 2014, 2014,
incl. low-cost airline
LABOR AVAILABILTY
Unemployment rate - 14.6 %
Young labor - 50% of unemployed population are aged between
20-34
Average monthly salary in 2014 - 490 USD (including white and blue
collar workers)
According to Heritage Foundation, Labor Freedom Index is 91.2 out
of 100 score
Flexible Labor Code
All ILD core conventions are rati ed by Georgia
Vocational Education Training Centers around Georgia provide
professional courses in different types of practical subjects and most
of the course fees are nanced by the Government of Georgia.
Poti Seaport
Batumi Seaport
Tbilisi International Airport
Batumi International Airport
Kutaisi International Airport
5
Sevenseas Consultants LLC
INVESTMENT OPPORTUNITIES IN GEORGIA
WHY TO INVEST IN AGRICULTURE & FOOD PROCESSING
MARKET SIZE
• Rapidly growing local demand
• Deep and Comprehensive Free
Trade Agreement) with EU
• FTA (Free Trade Agreement)
with CIS countries
• FTA with Turkey
• 22 micro-climates
• 18 micro-zones of wine
• Large quantity of renewable water
NATURAL RESOURCES AND VARIOUS
• Pure, rich and pesticide free soil
• Financial Support
• Technical Support
• Infrastructural Support
SUPPORT FROM THE GOVERNMENT
6Sevenseas Consultants LLC
Overview
• 22 Micro-climates of Georgia vary from cool and dry to
warm and humid. This results in longer than normal
harvesting season and a wide range of growing conditions
• Agriculture accounts for 9.2% of GDP
OPPORTUNITIES
• Import substitution opportunities-poultry, beef, pork, dairy
products (milk, cream, yogurt, butter), etc.
• Export opportunities - wine, hazelnuts, walnuts, citruses,
fruits, sheep meat, etc.
Opportunities for processing - tomatoes, apples,
cucumbers, potatoes, stone fruit, citrus, olive
oils, etc.
•
PRODUCTIVITY
• The root cause for under performance lie in fragmented
industry structure, lack of investment, obsolete machinery
POTENTIAL TO CAPTURE GROWING DOMESTIC
DEMAND AND EXPORTS
• Based on competitiveness and productivity gain potentials, Georgia can select priority crops/
livestock to exploit exports and import substitution potentials
7
Sevenseas Consultants LLC
AGRICULTURE TRADE FIGURES
299 250 316 349
437 512
774
824776 861
724
870
1088 1165 1180 1180
‐478
‐611
‐408 ‐521
‐651 ‐652
‐406 ‐356
‐1000
‐500
0
500
1000
1500
2007 2008 2009 2010 2011 2012 2013 2014
TRADE IN AGRICULTURAL PRODUCTS USD MLN
Export
Import
Net Trade
183Nuts
183Wine
137Water
SHARE OF TOP EXPORTS
2014, USD min
22
22
27
152Wheat
134Meat
73Oilsand fats
64Sugar
61Chocolate
60Vegetables
SHARE OF TOP EXPORTS
2014, USD min
13
11
6
5
5
5
POTENTIAL PRIORITY CROPS/LIVESTOCK
TO FOCUS DEVELOPMENT EFFORTS
HIGH POTENTIAL PROJECTS GEORGIA'S COMPETITIVENESS
8Sevenseas Consultants LLC
Regarding support from Government side, last year Government
started two new projects which support agriculture development
in Georgia :*
Cheap agro-credit program - the program has been initiated by the Ministry of Agriculture in 2013.
11 major banks are involved in this program, where part of loan interest payments are subsidized by
APMA (Agriculture Projects Management Agency under the Ministry of Agriculture), cheap agro-
credit program includes two types of loans :
• Credit for capital assets (12 000-600 000 USD) - rates are between 12-15% ad APMA covers 11%.
• Credit for working capital (20 000-100 000 GEL) - rates are between 14-15% ad APMA covers 8%.
Grants for agro processing companies - new agriculture processing factories (minimum value of
project 200 000 USD) can get grants (maximum 500 000 GEL or 40% of total project) from the
APMA. However grant should be used only for purchasing of capital assets (excluding land and
buildings) and/or training & technology implementation. Additionally factory should use local /
Georgian raw materials and labor. The project supports only speci c sectors and speci c regions
(production of wheat, our, wine and other alcohol beverages aren't covered by this scheme)
•
INCENTIVES *FOR FOOD PROCESSING
ACCESS TO AFFORDABLE FINANCE :
APMA nances purchase of plants (up to 70% of value) and implementation of irrigation systems (up to
50% of value) for farmers interested in seeding of permanent crops. The species for each region and the
maximum price of plants is prede ned by the agency.
Agriculture processing projects can get grants (up to 40 % of total
project) from the APMA if the project will be implemented in prede ned sectors.
BENEFICIARY GRANT COMPONENT CHEAP AGRO CREDIT OR LEASING
STRUCTURE OF FUNDING*
Cheap agro-credit program has been initiated by the Ministry of Agriculture in 2013. 17 banks and
micro nance organizations are involved in this program. Part of the loan interest payments are
subsidized by APMA (Agriculture Projects management Agency under the Ministry of Agriculture).
By January 2015, the program had 27208 bene ciaries, with the total sum of cheap agro credit 717
million GEL
•
GRANTS FOR PERMANENT CROPS PLANTING :
GRANTS FOR AGRO PROCESSING COMPANIES :
•
•
9
Sevenseas Consultants LLC
* All incentives at the discretion of APMA and conditions apply.
WHY TO INVEST IN HOSPITALITY & REAL ESTATE IN GEORGIA
VISA LIBERALIZATION WITH
MORE THAN 150 COUNTRIES
• REGIONAL CENTER
• FAST GROWING SECTOR
• CONTINUOUS INCREASE OF INTERNATIONAL VISITORS
INCENTIVES AVAILABLE•
VARIOUS TYPES OF RESORTS•
NO REAL ESTATE OWNERSHIP RESTRICTIONS•
VERY LOW CRIME RATE•
RICH NATURAL AND CULTURAL RESOURCES•
24%
23%
26%
15%
3%
9%
2014 Year: Top 5 Countries by Arrivals
GEORGIA IS EXPECTING SIGNIFICANT GROWTH
TRAJECTORY IN TOURIST ARRIVALS
Georgia has predominantly proved to be a highly
desirable location for the hospitality and real estate
sector
Number of international tourist arrival is expected
to grow by 8-10% during the next ve years
Source: Colliers International (2015)
10Sevenseas Consultants LLC
0.6
1 1.1 1.3 1.5
2.0
2.8
4.4
5.4
5.6
Source: Georgian National Tourism Administration
Number of international travellers 2014: 5 600 000
The same period 2013: 5 392 303
Tourist number from Europe in 2014 increased by 3%
Increase (over the same period 2013)1.9%
Average duration of stay - 5 nights, average spend -
USD 650
REAL ESTATE - FAST GROWING SECTOR
Real Estate is one of the main FDI driver (USD 87 min in 2014, Total USD 1271 min)
Real Estate growth rate was 40% in 2014, compared to the periods of 2013
INTERNATIONAL HOTEL BRANDS IN GEORGIA
Average occupancy rate of international brand hotels in Tbilisi reached 70% in 2014.
ALREADY OPERATIONAL INTERNATIONAL HOTEL BRANDS
Given the large share of business tourism in Tbilisi, all international hotel chains are positioned in
the higher segment.
High level of demand for mid range hotels (low cost brands)
MICE locations
Source:TBSC Consulting
CONSIDERABLE POTENTIAL TO DEVELOP HOTEL & LEISURE
RESIDENTIAL, RETAIL AND OFFICE PREMISES
11
UPCOMING
INTERNATIONAL HOTEL
BRANDS IN GEORGIA
Source: GNIA
Sevenseas Consultants LLC
INVESTMENT OPPORTUNITIES IN FREE TOURISM ZONES
Easy access to Batumi international
airport (30 minutes)
Easy access to higway connecting with
Batumi
Georgia's seaside health resort on Black
Sea coast
1 operating hotel, 3 hotels under
construction
Favorable and warm climate
Pre-planned development area of 11.3
ha for 27 hotels
Affordable investment range of USD 1-3
million
Free hotel Master Plan
Fully provides utilities network and
outdoor infrastructure
Free land and tax exemption may be
applied
Free Casino license for hotel capacity
over 80 rooms
UPCOMING
TOURIST
DESTINATION
EASY ACCESS
AND MODERN
INFRASTRUCTURE
PREPACKAGED
PROJECTS
INCENTIVES
HOSPITALITY & REAL ESTATE INVESTMENT OPPORTUNITIES
Potentially interested developers in hospitality sector could be mid-class, MICE and Conventional
center developers
Development of A class European standard of ce buildings is one of the investment opportunities in
Tbilisi (Number of state owned city center locations are available for sale)
From the 1st of August (2015) Georgian Government will co- nance international hotel Brand Franchise
fee. Georgian Government will co- nance the interest on the bene ciary's loans from commercial banks
(obtained for Hotel Industry reasons for up to 25 months), the credit amount should be 500 000 - 5000
000 GEL and the Government will encourage partial collateral guarantee of 50% for 2-4 years (Not more
than 2 000 000 GEL)
Sevenseas Consultants LLC 12
Conditions Apply
Conditions Apply
+91 97810 00606 I 98147 12344 I skype: sachin.chd I sevenseasge@gmail.com
Suite no 411, Regus, 4th Floor,
Plot no 70, Phase 1, Industrial
Area, Chandigarh, India.
# 4, Gudiashvili Square
Tbilisi, Georgia.
Georgia Office : India Office :
The content of this brochure are purely conceptual and have no legal bindings on us. All information have been sourced from GNIA , APMA website and the
incentives / opportunities offered are under specific rules and critieria being met and under the discretion of respective department. Visa / residency laws are
subject to unpredictable changes and are at the sole discretion of Georgian govt rules applicable from time to time.

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Invest in Georgia

  • 1. Identi cation Number : 404430576 Area: 69,700 sq km Popula on: 4.5 mln Life expectancy: 75 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) GDP 2014: USD 16.5 blnArea: 69,700 sq km Popula on: 4.5 mln Life expectancy: 75 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) GDP 2014: USD 16.5 bln Invest in GEORGIA
  • 2. About Seven Seas Consultants LLC We, Seven Seas Consultants LLC, are a registered legal entity since 2012, for assistance with investing in Georgia in various sectors such as Agricultural and Food processing, Tourism, Hospitality and real estate. We are an investment consultancy firm , set up to be a bridge between investors and opportunities available in domestic as well as international market. The thought process is to perform as investment destination promoters , whereby counseling the client in context of his aspirations , professional expertise, financial standing and matching the profile with business opportunities available. The counseling process involves, extensive probing of the client in context of his aspirations , professional expertise, financial standing and matching the profile with business opportunities available. Sharing information on ways to setting up / incorporate a business enterprise, undertake study tours for first hand information on the business scenario, legal paperwork, office / boarding / lodging assistance, residency laws and filling of the same. About Georgia Georgia is a country located at the eastern end of the Black Sea on the southern flanks of Greater Caucasus Mountains. It is bounded on the north and northeast by Russia, on the east and southeast by Azerbaijan, on the south by Armenia and Turkey, and on the west by the Black Sea. The capital of Georgia is Tbilisi. The current republic of Georgia has been independent since 1991. Georgia is a member of the United Nations, the Council of Europe, the World Trade Organization, the Organization of the Black Sea Economic Cooperation, the Organization for Security and Cooperation in Europe, the Community of Democratic Choice, the GUAM Organization for Democracy and Economic Development, and the Asian Development Bank. Key reasons to invest in Georgia A politically stable investment destination Ef cient, pro-business and corruption-free government Enlargement of market size by Free Trade Agreement Competitive cost of labor and energy Entry gate in the region Stable and conservatively managed banking sector Very low crime - rate Solid sovereign balance sheet A Glimpse on Georgia 1 Sevenseas Consultants LLC
  • 3. DOING BUSINESS IN GEORGIA Up from 112 in 2005 Country's impressive progress in improving business climate has been well documented in a number of international indices. Source: World Bank, 2015 (Rank out of 189 countries) Georgia is considered as essentially a corruption-free investment destination where rule of law has been given the right way Source: Transparency International 2013 (GLOBAL CORRUPTION BAROMETER) EASE OF DOING BUSINESS GLOBAL CORRUPTION BAROMETER CORRUPTION FREE COUNTRY 2Sevenseas Consultants LLC
  • 4. ECONOMIC STRUCTURE AND TRENDS GDP: STRONG REBOUND AFTER A RELATIVELY SMALL CONTRACTION IN 2009 RAPIDLY GROWING GDP PER CAPITA RAPIDLY GROWING GDP PER CAPITA LEADING TRADE REGIMES FTA with CIS countries: Ukraine, Azerbaijan Armenia, Russia, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan FTA with Turkey DOFTA (Deep and Comprehensive free Trade Agre- ement ith EU was signed on June 27, 2014 GSP agreement with USA, Norway, Switzerland, Canada, Japan Member of WTO Very simple and service oriented customers policy and administration Almost no custom duty - 80 percent of goods free from import tariffs No quantitative restrictions PREFERENTIAL TRADE REGIMES CUSTOMS 3 Sevenseas Consultants LLC
  • 5. Population of Georgia - 4.5 million Existing FTA = 400 million DCFTA + 0.5 million OPPORTUNITY - MARKET SIZE TAXATION IS SIMPLE, LOW, EFFICIENT AND FAIR No payroll tax or social insurance tax No capital gains tax No wealth tax and inheritance tax Personal income tax for interest, dividend, royalty - 5% Foreign-source income of individuals fully exempted Accelerated depreciation on capital assets Loss carry forward for corporate pro t tax purposes (10 years) No restricting on currently convertibility or repatriation of of capital & pro t Acess to - 900 million market without customs duty TOTAL - 0.9 BILLION 4Sevenseas Consultants LLC
  • 6. TRANSPORT NETWORK IN GEORGIA 15 Berths, 8-11, draft Container(500k TEU) oil products/bulk (10ln.t/year) APM terminals 11 Berths, 1 Offshore, 9-12m draft Oil/products (15min.t/year). bulk (2mln.t.year). containers (100 000 TEU) JSC KazTransOil New ICT 1,575.386 million passengers in 2014 Capacity: 3 million passengers Serving 35 destinations 213,439 million passengers in 2014 218.003 passengers in 2014, 2014, incl. low-cost airline LABOR AVAILABILTY Unemployment rate - 14.6 % Young labor - 50% of unemployed population are aged between 20-34 Average monthly salary in 2014 - 490 USD (including white and blue collar workers) According to Heritage Foundation, Labor Freedom Index is 91.2 out of 100 score Flexible Labor Code All ILD core conventions are rati ed by Georgia Vocational Education Training Centers around Georgia provide professional courses in different types of practical subjects and most of the course fees are nanced by the Government of Georgia. Poti Seaport Batumi Seaport Tbilisi International Airport Batumi International Airport Kutaisi International Airport 5 Sevenseas Consultants LLC
  • 7. INVESTMENT OPPORTUNITIES IN GEORGIA WHY TO INVEST IN AGRICULTURE & FOOD PROCESSING MARKET SIZE • Rapidly growing local demand • Deep and Comprehensive Free Trade Agreement) with EU • FTA (Free Trade Agreement) with CIS countries • FTA with Turkey • 22 micro-climates • 18 micro-zones of wine • Large quantity of renewable water NATURAL RESOURCES AND VARIOUS • Pure, rich and pesticide free soil • Financial Support • Technical Support • Infrastructural Support SUPPORT FROM THE GOVERNMENT 6Sevenseas Consultants LLC
  • 8. Overview • 22 Micro-climates of Georgia vary from cool and dry to warm and humid. This results in longer than normal harvesting season and a wide range of growing conditions • Agriculture accounts for 9.2% of GDP OPPORTUNITIES • Import substitution opportunities-poultry, beef, pork, dairy products (milk, cream, yogurt, butter), etc. • Export opportunities - wine, hazelnuts, walnuts, citruses, fruits, sheep meat, etc. Opportunities for processing - tomatoes, apples, cucumbers, potatoes, stone fruit, citrus, olive oils, etc. • PRODUCTIVITY • The root cause for under performance lie in fragmented industry structure, lack of investment, obsolete machinery POTENTIAL TO CAPTURE GROWING DOMESTIC DEMAND AND EXPORTS • Based on competitiveness and productivity gain potentials, Georgia can select priority crops/ livestock to exploit exports and import substitution potentials 7 Sevenseas Consultants LLC
  • 9. AGRICULTURE TRADE FIGURES 299 250 316 349 437 512 774 824776 861 724 870 1088 1165 1180 1180 ‐478 ‐611 ‐408 ‐521 ‐651 ‐652 ‐406 ‐356 ‐1000 ‐500 0 500 1000 1500 2007 2008 2009 2010 2011 2012 2013 2014 TRADE IN AGRICULTURAL PRODUCTS USD MLN Export Import Net Trade 183Nuts 183Wine 137Water SHARE OF TOP EXPORTS 2014, USD min 22 22 27 152Wheat 134Meat 73Oilsand fats 64Sugar 61Chocolate 60Vegetables SHARE OF TOP EXPORTS 2014, USD min 13 11 6 5 5 5 POTENTIAL PRIORITY CROPS/LIVESTOCK TO FOCUS DEVELOPMENT EFFORTS HIGH POTENTIAL PROJECTS GEORGIA'S COMPETITIVENESS 8Sevenseas Consultants LLC
  • 10. Regarding support from Government side, last year Government started two new projects which support agriculture development in Georgia :* Cheap agro-credit program - the program has been initiated by the Ministry of Agriculture in 2013. 11 major banks are involved in this program, where part of loan interest payments are subsidized by APMA (Agriculture Projects Management Agency under the Ministry of Agriculture), cheap agro- credit program includes two types of loans : • Credit for capital assets (12 000-600 000 USD) - rates are between 12-15% ad APMA covers 11%. • Credit for working capital (20 000-100 000 GEL) - rates are between 14-15% ad APMA covers 8%. Grants for agro processing companies - new agriculture processing factories (minimum value of project 200 000 USD) can get grants (maximum 500 000 GEL or 40% of total project) from the APMA. However grant should be used only for purchasing of capital assets (excluding land and buildings) and/or training & technology implementation. Additionally factory should use local / Georgian raw materials and labor. The project supports only speci c sectors and speci c regions (production of wheat, our, wine and other alcohol beverages aren't covered by this scheme) • INCENTIVES *FOR FOOD PROCESSING ACCESS TO AFFORDABLE FINANCE : APMA nances purchase of plants (up to 70% of value) and implementation of irrigation systems (up to 50% of value) for farmers interested in seeding of permanent crops. The species for each region and the maximum price of plants is prede ned by the agency. Agriculture processing projects can get grants (up to 40 % of total project) from the APMA if the project will be implemented in prede ned sectors. BENEFICIARY GRANT COMPONENT CHEAP AGRO CREDIT OR LEASING STRUCTURE OF FUNDING* Cheap agro-credit program has been initiated by the Ministry of Agriculture in 2013. 17 banks and micro nance organizations are involved in this program. Part of the loan interest payments are subsidized by APMA (Agriculture Projects management Agency under the Ministry of Agriculture). By January 2015, the program had 27208 bene ciaries, with the total sum of cheap agro credit 717 million GEL • GRANTS FOR PERMANENT CROPS PLANTING : GRANTS FOR AGRO PROCESSING COMPANIES : • • 9 Sevenseas Consultants LLC * All incentives at the discretion of APMA and conditions apply.
  • 11. WHY TO INVEST IN HOSPITALITY & REAL ESTATE IN GEORGIA VISA LIBERALIZATION WITH MORE THAN 150 COUNTRIES • REGIONAL CENTER • FAST GROWING SECTOR • CONTINUOUS INCREASE OF INTERNATIONAL VISITORS INCENTIVES AVAILABLE• VARIOUS TYPES OF RESORTS• NO REAL ESTATE OWNERSHIP RESTRICTIONS• VERY LOW CRIME RATE• RICH NATURAL AND CULTURAL RESOURCES• 24% 23% 26% 15% 3% 9% 2014 Year: Top 5 Countries by Arrivals GEORGIA IS EXPECTING SIGNIFICANT GROWTH TRAJECTORY IN TOURIST ARRIVALS Georgia has predominantly proved to be a highly desirable location for the hospitality and real estate sector Number of international tourist arrival is expected to grow by 8-10% during the next ve years Source: Colliers International (2015) 10Sevenseas Consultants LLC
  • 12. 0.6 1 1.1 1.3 1.5 2.0 2.8 4.4 5.4 5.6 Source: Georgian National Tourism Administration Number of international travellers 2014: 5 600 000 The same period 2013: 5 392 303 Tourist number from Europe in 2014 increased by 3% Increase (over the same period 2013)1.9% Average duration of stay - 5 nights, average spend - USD 650 REAL ESTATE - FAST GROWING SECTOR Real Estate is one of the main FDI driver (USD 87 min in 2014, Total USD 1271 min) Real Estate growth rate was 40% in 2014, compared to the periods of 2013 INTERNATIONAL HOTEL BRANDS IN GEORGIA Average occupancy rate of international brand hotels in Tbilisi reached 70% in 2014. ALREADY OPERATIONAL INTERNATIONAL HOTEL BRANDS Given the large share of business tourism in Tbilisi, all international hotel chains are positioned in the higher segment. High level of demand for mid range hotels (low cost brands) MICE locations Source:TBSC Consulting CONSIDERABLE POTENTIAL TO DEVELOP HOTEL & LEISURE RESIDENTIAL, RETAIL AND OFFICE PREMISES 11 UPCOMING INTERNATIONAL HOTEL BRANDS IN GEORGIA Source: GNIA Sevenseas Consultants LLC
  • 13. INVESTMENT OPPORTUNITIES IN FREE TOURISM ZONES Easy access to Batumi international airport (30 minutes) Easy access to higway connecting with Batumi Georgia's seaside health resort on Black Sea coast 1 operating hotel, 3 hotels under construction Favorable and warm climate Pre-planned development area of 11.3 ha for 27 hotels Affordable investment range of USD 1-3 million Free hotel Master Plan Fully provides utilities network and outdoor infrastructure Free land and tax exemption may be applied Free Casino license for hotel capacity over 80 rooms UPCOMING TOURIST DESTINATION EASY ACCESS AND MODERN INFRASTRUCTURE PREPACKAGED PROJECTS INCENTIVES HOSPITALITY & REAL ESTATE INVESTMENT OPPORTUNITIES Potentially interested developers in hospitality sector could be mid-class, MICE and Conventional center developers Development of A class European standard of ce buildings is one of the investment opportunities in Tbilisi (Number of state owned city center locations are available for sale) From the 1st of August (2015) Georgian Government will co- nance international hotel Brand Franchise fee. Georgian Government will co- nance the interest on the bene ciary's loans from commercial banks (obtained for Hotel Industry reasons for up to 25 months), the credit amount should be 500 000 - 5000 000 GEL and the Government will encourage partial collateral guarantee of 50% for 2-4 years (Not more than 2 000 000 GEL) Sevenseas Consultants LLC 12 Conditions Apply Conditions Apply
  • 14. +91 97810 00606 I 98147 12344 I skype: sachin.chd I sevenseasge@gmail.com Suite no 411, Regus, 4th Floor, Plot no 70, Phase 1, Industrial Area, Chandigarh, India. # 4, Gudiashvili Square Tbilisi, Georgia. Georgia Office : India Office : The content of this brochure are purely conceptual and have no legal bindings on us. All information have been sourced from GNIA , APMA website and the incentives / opportunities offered are under specific rules and critieria being met and under the discretion of respective department. Visa / residency laws are subject to unpredictable changes and are at the sole discretion of Georgian govt rules applicable from time to time.