AJARA BUSINESS WEEK #2

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July 20, 2015 #2

July 20, 2015, Issue 2

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GEORGIA

EU Assists in Recovery of Degraded Forests in Ajara

AJARA1

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TURKEY

Creation of coalition in Turkey shouldn’t affect energy projects, says Erdogan Pg. 4

Turkey, Azerbaijan and Russia Georgia’s Top Trading Partners in 2014

RUSSIA

Central Bank of Russia names country’s 10 most important banks

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UKRAINE

US firm to construct liquefied gas terminal in Ukraine – Yatsenyuk Pg. 6 AZERBAIJAN

Azerbaijan introduces state control over tariffs in hotel business

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ARMENIA

Euromoney names Ardshinbank Best Bank in Armenia in 2015

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WORLD

Obama, Putin congratulate each other for Iran deal Pg. 9

Georgian Wine Invades Chinese Market

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eorgia’s Agriculture Ministry is stepping up its promotion of the country’s wine and winemaking culture in China; with the unveiling of a promotional centre and winemaking house during an official visit of the Agriculture Ministry to China. The opening event for the centre, located in capital Beijing’s Nutrition and Alcohol Research Institute, was led by Minister Otar Danelia and included a presentation and tasting of Georgian products. The event was attended by China’s deputy agriculture minister, wine importers and industry representatives.

Danelia said the centre aimed to promote Georgian culture and winemaking and contribute Georgia’s efforts to export its products to “strategic” markets. The centre will be led by vice president of the Institute, with a special coordinator contributing from Georgia.

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Batumi Hosts Ajara Business Week’s Presentation

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n official presentation of the Ajara Business Week (ABW), a new English-language business-economic weekly, was held at Hilton Hotel in Batumi, the Autonomous Republic

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of Ajara. The event was attended by representatives of the local business sector and the local government, interested audience and the media sector.

The presentation was led by GEPRA consulting company’s senior partner Kakha Maghradze.

Specific Reasons for Which Oil Products Importers Will Pay 55 million GEL Fine

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he national competition agency of Georgia has imposed a total of 55 million GEL fine on oil products importer companies and the owner of 5 major networks of fueling stations.

Price collusion is named as a reason for forfeiting the companies. The competition agency head

Giorgi Barabadze told the July 15 news conference the fuels commodity market exploration has showed starting 2008 the companies had violated the competition protection principles.

What specific principles have the companies violated and what are their plans regarding the penalty sanctions?

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Food Production Costs, Tobacco Prices Rise in Georgia

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monthly inflation rate.

Latest data from Georgia’s National Statistics Office, Geostat, revealed a change in manufacturing prices in June 2015 had contributed to an increased Producer Price Index (PPI).

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“The weakening of the lari is a “continuation of sabotage. Kadagidze’s actions led to the lari’s depreciation again,”- Mikheil Dundua, 2030 organization member, an economist, says commenting on the recent fall of the lari exchange rate. Pg. 4

he cost to manufacture food and to buy chemical products and tobacco are on the rise in Georgia, however prices of some food items are dropping thanks to a slight fall in the

Central Bank’s Policy Further Devalues the National Currency ast week, the Georgian lari gained some of its value against the major currencies, continued its fluctuations due to the National Bank’s actions, as some experts believe.

Mamia Berdzenishvili: Tourism Infrastructure Development in Ajara will Boost Competition and Balance Prices

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Ronny Solberg: A company is a Success, When it Demonstrates a Responsibility For the Country and the Society, in Which it Does Business

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Teona Baghdavadze: We Should Popularize Ajara Through Sea Resorts and Other Sectors Without Direct Relation With Sea Pg. 7 Giorgi Abramishvili: Only Tourism Sector Cannot Develop Ajara Region. We Should Also Strengthen Other Economic Segments

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Batumi Heats Up with Sanremo Stars’ Weekend

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veryone’s favorite Italian singer Umberto Tozzi and the near-legendary Ricchi e Poveri graced the newly constructed stage on the Batumi Tennis Courts with their hit songs. “Heat Batumi 2015” moved to an active phase last weekend as 17th to 19th of July saw the Sanremo Stars’ days. The concerts were led by David Gomarteli, who by no mere coincidence is a lover of all things Italy, starting from the language and cuisine and ending with the music. This made him the perfect host for the weekend events. Ricchi e Poveri is an Italian pop singing group. They have recorded both in Italian and Spanish and the group had some of the most popular Italian songs.

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Zero Year Anniversary Coming Soon

TOP STORY

2 MAIN EVENTS GEORGIAN PARLIAMENT ADDRESSES STATE BUDGET AMENDMENTS

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he Parliament of Georgia is today discussing amendments to the state budget for 2015, introduced by the country’s Finance Ministry in response to a downgraded economic growth forecast.

Members of Parliament (MPs) gathered today in Kutaisi for an extraordinary meeting to discuss the state budget amendments. Georgia’s economy growth forecast has been downgraded from five to two percent however Deputy Finance Minister Giorgi Kakauridze said economy growth might reach three percent.

TURKEY, AZERBAIJAN AND RUSSIA: GEORGIA’S TOP TRADING PARTNERS IN 2014

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eorgia is exporting fewer products and importing more from abroad, says the country’s National Statistics Office, Geostat.

The volume of Georgia’s exports is on a slight downward trend while imports are on the rise, according to latest information by the country’s National Statistics Office, Geostat.

This week Geostat published dataabout external trade of Georgia for 2014 and compared it with earlier data; in the past five years Georgia’s export volumes has increased until now, while imports has steadily risen since 2010.

EU Assists in Recovery of Degraded Forests in Ajara

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n excessively grazed forest in Adjara is being given new life using new machinery purchased by European Union (EU) funds. Forest restoration works will start soon in Georgia’s Adjara region thanks to new equipment that enables the Forestry Agency of Adjara (FAA) to remove tall grass and other ground vegetation and promote the regeneration of valuable forest trees.

In the framework of the EU-funded €9 million Forest Law Enforcement and Governance Programme (FLEG II), WWF Caucasus has pur-

ne month after hundreds of people lost their homes in the deadly Tbilisi flood, victims are beginning to receive compensation for their loss.

After the severe flood hit Tbilisi, 400 people from 80 families were deemed to be victims of the flood and many of these were forced to leave their homes. The Georgian Government stated the process had now begun to compensate these victims of the natural disaster.

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o note, 3 land plots, locating in Batumi, Abuseridze str,15 and Pirosmani str.5 are brought at the auction. The initial price of the land plot of 3206 square m amounts to 495 000 USD, while the bid totals to 10 000 USD. The investor should pay the sum within 1-year term after the agreement signing. The company must build multi-functional complex and make investment not less than 8 million USD. The second land plot totals to 2935 square m, the initial price is defined by 453 000 USD, the bid is 10 000 USD. The investor should pay

eorgia’s Prime Minister has offered a message of hope to the prisoners inside Rustavi #16 penitentiary facility as he officially opened the refurbished prison.

PM visited the prison and said: “I wish you to return to your families soon and never come back and we will make sure that you serve you sentence with dignity”.

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ube Tower hotel will be built in Batumi with Azerbaijani investment.

According to Mikheil Dzodzuashvili, Director of Adog Georgia company engaged in the hotel construction, works will start in about ten days.

A few days ago Adog Georgia signed a contract with the construction company ANAGI. Dzodzuashvili says that at least $ 40 million will be invested in the project that is scheduled to

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ferry service operating between Georgia and Bulgaria is increasing its trip frequency to bolster vehicle and cargo turnover and bilateral tourism between the two countries.

The ferry currently travels across the Black Sea between Georgia’s port cities Poti and Batumi with Bulgaria’s second largest city Burgas.

Today Georgia’s Prime Minister Irakli Garibashvili met with representatives from Bulgaria’s bank holding BACB to discuss future cooperation between Georgia and Bulgaria, including tourism development.

During the negotiations the parties agreed that Georgian transport and logistics carriers will be allowed to use BACB’s large logistic centres

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espite the ongoing financial crisis in Greece the country is still among the top donor countries in terms of volume of money transfers to Georgia, lagging only behind Russia.

Last month $13.8 million USD was transferred from Greece to Georgia, announced National Bank of Georgia (NBG), taking up 13.7 percent of all money transfers. This was less than was transferred in May when Georgia received $15.3 million.

E-SIGNATURE REPLACES PAPER OPERATIONS IN GEORGIAN BANKS eorgia is developing an electronic signature system that will allow clients of the country’s three large banks to sign their important documents from a signature pad, saving the time and money to print and sign official papers.

The e-signature idea was initiated by the National Bank of Georgia (NBG) last year. ProCredit Bank, the first bank to join the initiative, got involved in the early stages and has significantly contributed to its development. As of today, all ProCredit Bank branches offer e-signature service to its customers.

be completed in 2017. Cube Tower will be a 30storey hotel consisting of 180 rooms with a terrace pool arranged in one of the cubes.

Adog Georgia was founded in Batumi in 2011, its head office is located in Baku. Dzodzuashvili confirms that in 2011 the company has purchased the area of 1 621 square meters for 1 GEL. According to the undertaken commitment, the investor should build a 22 – storey hotel complex.

Georgia and Bulgaria Strengthen Ties in Tourism, Turnover

GREECE – SECOND DONOR COUNTRY FOR GEORGIA AFTER RUSSIA

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the sum within a year and must build multi-functional complex. Supposed investment volume is 7 million USD. The third land plot amounts to 2095 square m. The initial cost is 323 500 USD, while the bid – 7000 USD. The investor should invest not less than 9 million USD in the construction of multifunctional complex.

The complexes, which will include hotels, hotel type apartments, parking areas, trade, entertainment and fast food objects, must get under the exploitation within 40 months after signing of an agreement with the investor.

Construction of Cube Tower Starts in Batumi

PM GARIBASHVILI OFFERS MESSAGE OF HOPE TO PRISONERS

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chased a mini-tractor, drilling mechanism, cultivator and rotating cultivator for the FAA. In addition to removing the tall grass and other ground vegetation the FAA will be able to begin fencing works, which is planned to start at the end of July and beginning of August.

The project aimed to help to recover Caucasian fir and spruce trees which are significantly degraded due to excessive grazing through fencing of more than 100 ha of degraded forest.

Read the full article about how EU helps Georgia in restoring the forest.

Government of Adjara Invites Investors in Order to Construct Multi-functional Complex

TBILISI FLOOD-AFFECTED FAMILIES OFFERED FULL COMPENSATION

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July 20, 2015 #2

ajara business week

that are located in the Balkans.

As well as PM Garibashvili, Georgia’s Economy Minister and Vice PM Giorgi Kvirikashvili, also attended the meeting.

Afterwards he said: “The [bank] holding also includes a tourism company that owns several resorts in Bulgaria. We discussed future plans regarding establishing a partnership between our and Bulgarian mountain resorts.”

“The partnership should be about selling joint packages. I hope all what was planned will be fulfilled in the nearest future,” said Kvirikashvili.

The sides also discussed the possibilities of launching direct air flights between the two countries.

Georgia Postpones Mandatory Labelling of Soft Drinks

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eorgia has postponed the enforcement of mandatory labelling of non-alcoholic beverages.

Georgia’s Prime Minister Irakli Garibashvili has commissioned the Finance Minister to postpone mandatory labelling of soft drinks.

BUSINESS WEEK

AJARA The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili Address: Aleksidze Street #12 Editor-in-chief: Zura Kukuladze. Tel: 599 00 82 12 Mobile phone: +995 591 013936 WWW.ABW.GE Email: ajarabusiness@gmail.com

The move comes after soft drink producers requested PM Garibashvili to postpone the labelling process after voicing their concerns about the difficulties they encountered associated with installation of labelling devices.

According to a bill drafted by the Ministry

of Finance, labelling of carbonated, mineral and fresh water was due to start on September 1, 2015.

PM Garibashvili upheld soft drink producers’ request and commissioned the Finance Minister to postpone mandatory labelling of non-alcoholic beverages until November 1, 2015.

The English-language weekly is distributed to over 1000 assets in Ajara, including, major companies, commercial banks, international organizations, state offices, high-class hotels, shopping malls, Batumi airport, Kobuleti, Sarpi. Businessmen and Managers Read ABW.

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

July 20, 2015 #2

PRESENTATION ajara business week

BATUMI HOSTS AJARA BUSINESS WEEK’S PRESENTATION

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n official presentation of the Ajara Business Week (ABW), a new English-language business-economic weekly, was held at Hilton Hotel in Batumi, the Autonomous Republic of Ajara. The event was attended by representatives of the local business sector and the local government, interested audience and the media sector. The presentation was led by GEPRA consulting company’s senior partner KAKHA MAGHRADZE. He widely overviewed the reasons and goals for issuing an English-language newspaper with a focus on Ajara-based business entities: “Ajara is a very active region in terms of economic development – there is a quite high pace of economic activity in the region compared to the remaining country. Moreover, Ajara’s peculiarity consists in various foreign investors operating in the Region. Therefore, we have decided to issue an English-language newspaper. The edition is mainly oriented on decision-makers in the business sector and various organizations around the business sector. The edition is also designed for top officials, managers of the small and medium business sectors and the civil sector employees interested in the region’s business and economic activities”.

The ABW’s concept, goals and objectives were also overviewed by ABW editor-in-chief ZURAB KUKULADZE. “With multiyear experience in the business media, our team fully realizes the business potential the Autonomous Republic of Ajara holds in the current situation. This team will act as a certain mediator between the Authorities, the business sector and the society in terms of unbiased and qualified coverage. We believe our undertaking will increase the attractiveness of the Region’s business environment.

We will provide qualified analysis on Ajara’s business potential to the interested audience. The newspaper will actively cover achievements, challenges and potential of the local business.

We plan to tightly cooperate with local and central governments to deliver valuable information on governmental initiatives and reforms to the interested audience and provide additional opportunity to local major and smaller businesses and investors to better realize and perceive the region’s huge potential.

In one word, our team will have friendly relations with the Region’s business sector and lobby the local initiatives and highlight the Region’s opportunities. I hope the local business and the society will accept our friendship and fruitfully cooperate with our team”, Kukuladze noted.

The ABW editor LEVAN BEGLARISHVILI has introduced the editorial board’s plans regarding organizational management, frequency of issuance and distribution aspects.

“I would like to welcome the presented society and congratulate you on the newspaper issuance that, first of all, will promote the local business.

The newspaper will be issued in a weekly format without seasonal breaks. The edition will cover Ajara’s business and governmental initiatives throughout the year. The newspaper will be delivered free of charge to representatives of the Ajara government, business, media and civil society sectors. Ordinary citizens will be able to receive the newspaper at local hotels, restaurants, cafes and other public places. The newspaper will be also delivered to the local airport and air pas-

sengers. ABW is also distributed to Tbilisi and other cities of Georgia.

Moreover, the ABW will share its news and articles to the very popular foreign media platforms. As a result, international attractiveness of the Ajara Region will further increase”.

The local government officials have also delivered speech at the presentation. They expressed gratitude to the ABW editorial board for this beneficial undertaking and showed willingness to cooperate with our newspaper.

Batumi Mayor GIORGI ERMAKOV pointed he was pleased to welcome any similar media edition with a focus on the region’s processes, especially, on the Batumi developments and events, that will deliver information on the region’s and Batumi’s events and process to its audience, foreign media partners and potential investors.

“I imply the investments the Ajara government has been making in the Region. I also mean the business environment that enables perspective foreign investors to receive required information. I also mean summertime culture events in Batumi. Besides information delivery to the interested audience, this is also a very good opportunity to valuably advertize the region and the city. Batumi City Hall is also ready to tightly cooperate with the edition and provide all due information in continuous regime on the Batumi City Hall activities and performance, about the municipal innovations. All these efforts will contribute to improving the economic situation and developing the tourism sector in Ajara and the whole country”, Giorgi Ermakov said.

AVTANDIL BERIDZE, the Ajara Supreme Council Chairman: The Ajara residents appreciate you have issued this newspaper. In the name of the Ajara Supreme Council we pledge to ensure overall and efficient cooperation with this edition. I imply that our government has prioritized the agriculture sector. This field is a priority direction in the Ajara Region. There is an advertisement of the Produce in Georgia state program on the 6th page. And we know this program makes focus on the agriculture sector and this is of vital importance, as the agriculture sector is interrelated with the tourism sector. All tourists need food products. Therefore, it is important that food products be produced in Georgia. We will cooperate with the newspaper in this direction.

Moreover, the Ajara Supreme Council has set up a special commission for financial and economic issues. This commission works very successfully and discusses bills, amendments to the legislation and we welcome the newspaper will highlight all amendments and changes and this information will be very interesting to the business sector and foreign investors”.

Ajara Economy Minister GIORGI BALADZE: I welcome you have issued this newspaper.

This is a good opportunity for investors to receive information in the international language and they will not need any more to apply to various local governmental offices to have real and valuable information. This is a definitely step forward for our region, where foreign investors have been actively operating. I am sure our government and the newspaper will tightly cooperate to valuably cover the region’s economic developments and the determined directions. I would like to wish a success and all the best to the ABW editorial board”.

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ECONOMIX

4 TURKEY CREATION OF COALITION IN TURKEY SHOULDN’T AFFECT ENERGY PROJECTS, SAYS ERDOGAN

ajara business week

Specific Reasons for Which Oil Products Importers Will Pay 55 million GEL Fine

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reation of a coalition government in Turkey shouldn’t affect the implementation of energy projects, Turkish President Recep Tayyip Erdogan said.

Erdogan said that the possibility of freezing the energy and construction projects in the country by the coalition government is out of question, Hurriyet newspaper reported July 14. Earlier, the Republican People’s Party (CHP) said that if it enters the coalition government, it will demand to revise some energy and construction projects.

Turkish Prime Minister Ahmet Davutoglu started talks with Kemal Kilicdaroglu, leader of the Republican People’s Party (CHP) on forming a coalition government July 13.

Although in general, the views of the AKP and CHP contradict with each other, they have a similar attitude to the process of democratic settlement of the Kurdish problem that started in 2009 at the initiative of the country’s President Recep Tayyip Erdogan.

Moreover, both parties support Turkey’s accession to the European Union.

TURKEY WELCOMES AGREEMENT ON IRAN ’S NUCLEAR PROGRAM

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urkey welcomes the agreement on Iran ’s nuclear program, Turkish President Recep Tayyip Erdogan said.

He added that this agreement is of special importance for the region, TRT Haber news channel reported July 17. Iran and P5 +1 (the US , UK , France , Russia , China and Germany ) reached a historic agreement on Iran ’s nuclear program July 14.

The negotiations ended with adoption of a joint comprehensive action plan. If Iran carries out this plan, the economic and financial sanctions earlier imposed on it by the UN Security Council, the US and EU will be lifted.

TURKISH COMPANY TO PROVIDE TANAP WITH GAS TURBINES

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urkish GE Petrol&Gaz company will provide TANAP with gas turbines, Anadolu agency reported.

A corresponding agreement has been signed between the sides, however, its cost is not disclosed, according to the agency.

The groundbreaking ceremony of TANAP was held in Turkey’s Kars province with participation of Azerbaijani, Turkish and Georgian presidents March 17. TANAP project envisages transportation of gas of Azerbaijan’s Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey.

TANAP’s initial capacity is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the rest of the volume to Europe.

Following the completion of a legal implementation procedure, TANAP’s shareholders list will be as follows: SOCAR – 58 percent, Botas – 30 percent and BP – 12 percent.

TURKEY WINS ARBITRATION CLAIM AGAINST GREEK DEPA

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he arbitration court has made a decision in favor of Turkey against Greek DEPA public natural gas supply corporation, Milliyet newspaper reported July 16.

Following the arbitration decision, Turkey received $100 million from DEPA, according to the newspaper. Commenting on this decision, Turkish Minister of Energy and Natural Resources Taner Yildiz said Ankara understands that Greece has much debt, but Turkey’s interests are more important. Turkey’s BOTAS Petroleum Pipeline Corporation applied to the arbitration court on the prices for gas delivered from Turkey to Greece in 2011.

Moreover, Ankara applied to the International Court of Arbitration regarding the price on Iranian gas in March 2012.

Gas prices are not officially disclosed. But according to the Turkish media, Turkey buys Iranian gas at $490 per 1,000 cubic meters.

July 20, 2015 #2

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he national competition agency of Georgia has imposed a total of 55 million GEL fine on oil products importer companies and the owner of 5 major networks of fueling stations.

Price collusion is named as a reason for forfeiting the companies. The competition agency head Giorgi Barabadze told the July 15 news conference the fuels commodity market exploration has showed starting 2008 the companies had violated the competition protection principles.

What specific principles have the companies violated and what are their plans regarding the penalty sanctions?

After an 8-month research work, the competition agency has introduced an 1100 page report that imposes financial fines on SOCAR Petroleum Georgia (14 381 385 GEL), SUN Petroleum Georgia (11 267 384 GEL), Rompetrol Georgia (10 885 806 GEL), Wissol Petroleum Georgia (10 426 393 GEL) and Lukoil Georgia (4 740 260 GEL). The report concludes these companies have violated the competition protection principles, the agency chairman Giorgi Barabadze said.

“They had set artificial barriers in the im-

ports, production was restricted and colluded prices were introduced. Therefore, the main market players, namely, Wissol, Lukoil SOCAR, Rompetrol, Gulf and other economic agents with tight distribution relations with the named five companies were imposed due sanctions”.

Besides the five above-mentioned major companies, the competition agency has imposed 2000 GEL fines on 32 small companies too on the fuel market.

Vano Mtvralashvili, a chairman for the Union of Oil Products Importers, asserts the fined companies do not recognize they have violated the competition principles and they are expected to sue against the competition agency to the court: “They assert they have not breached the law on competition. Hence, they plan to take certain steps. They are supposed to sue against the decision to the court and the legislation entitles them to act so”.

Beka Kemularia, a head for the consumer rights protection association, welcomes the competition agency has finally justified its mission and taken efficient steps. The competition agency has carried out high-quality research work Georgia has never conducted before. Beka Kemularia

assures the competition agency will cope with the task even if the fined companies sue to the court, because the conclusion contains strong arguments and proofs: “We have witnessed a rude violation of the legislation. They have fixed prices and this factor has made direct negative influence on the state economy and the population. The companies were acting in collusion and they have set high prices. This signifies they have been penetrating the pocket of each citizens and stealing money from there”.

Economic expert Gia Khukhashvili abstained to comment on how the petrol retail prices affect the market tendencies and on an expected decline in fuel prices after exposure of law- breaker companies. It is positive the competition agency has taken real steps, but it would be better to prevent cartel collusion instead of imposing penalty sanctions, because the fines calculation issues are questionable, Khukhashvili said.

There is no information how these fines were calculated, he said and added the companies will include the fines in the product prices and this factor may lead to further rise in fuel prices.

“The one thing is when the regulations are politically determined and they follow these rules of game. I have some questions about the introduced regulations for calling the companies to account. As to the present period, this is the competence of the agency, but the main function implies preventive measures to avoid similar collusions.

Government officials have also made comments on the competition agency has forfeited the companies. Prime Minister Irakli Gharibashvili said this decision should not irritate the companies. Health competition should be practiced in the country and the Authorities will not interfere in these issues, the Prime Minister added.

Vice Prime Minister Kakha Kaladze said the companies are entitled to apply to the court and the dispute may be continued in the court system.

The forfeited companies abstain from making comments on the decision.

Central Bank’s Policy Further Devalues the National Currency National Bank’s actions will speed up reforms in this sector

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ast week, the Georgian lari gained some of its value against the major currencies, continued its fluctuations due to the National Bank’s actions, as some experts believe.

“The weakening of the lari is a “continuation of sabotage. Kadagidze’s actions led to the lari’s depreciation again,”- Mikheil Dundua, 2030 organization member, an economist, says commenting on the recent fall of the lari exchange rate.

“On July 14, the NBG President increased commercial banks lending by GEL 75 million and a loan volume amounted to 855 million that resulted in the exchange rate further falling . On July 15, the central bank increased a volume of the so-called overnight loans by 265 million. The loan totaled GEL 1,120 billion and hit a historical maximum. As a result, the lari fell to 2.27. This is an obvious continuation of the policies aimed at the deliberate devaluation of the lari , “- Dundua says noting that the lari devaluation has nothing to do with natural processes and is intended to create a stir and panic as the lari’s further fall will raise indignation among the population.

According to the expert, it serves a specific purpose. So those who will buy dollars will lose because the current rate of the national currency is a result of the central bank’s deliberate policy and the lari will strengthens positions in the near future again. Dundua brings the data for the period from July 1, 2013 to July 15, when the National Bank’s debt to commercial banks reached GEL 630 million, in 2014 this figure amounted to 70 million,

the current figure covering the period from July 1 to July 15 increased from 635 million to 740 million. “These data show that we are dealing with a radically different picture. If before the National Bank focused on contraction of the money supply to stabilize the lari , from January 2015 we clearly see the opposite, which, of course, led to excessive money mass that has a very negative impact on the lari, “- Dundua explains.

He stresses that this is a temporary process and in a few days the Georgian lari will stabilize

again. In his words, the National Bank’s structural reforms are important to stabilize the situation, it is also necessary to increase the level of confidence and reveal whether the National Bank exerts pressure on the commercial banks, etc.

“When the banking supervisory functions will be separated from the National Bank, the central bank will be deprived of an important lever, namely , to consciously and deliberately instigate the devaluation, which will ultimately have a positive impact on everything,” – he points out.

July 20, 2015 #2

TOURISM

Tourism Infrastructure Development in Ajara Will Boost Competition and Balance Prices Sea resorts season in Ajara enters an active phase. The region meets tourists with many interesting innovations. The infrastructure has been improved, various culture and traditional events have been scheduled, where Ajara visitors will relax, get entertained and enjoy the vacation.

Ajara also offers interesting innovations in terms of ski resorts.

Mamia Berdzenishvili, the Ajara tourism department chairman, talks about the mentioned issues.

- How is Ajara meeting the summer tourism season? What are the current problems and expectations?

- The region is meeting the 2015 tourism season with many pleasant innovations, first of all, in terms of hotels infrastructure. Along with five-star hotels, the city has acquired many guesthouses and hotels for the medium segment. Many other similar assets will open for the low-budget category until 2016. At this stage, the Ajara Region has got additional 819 suites with 1700 beds.

In 2002 there were only 278 suites with 10367 suites in Ajara, but today there are 433 suites with 14 286 beds. The figure will further increase in the coming years. Growth tendencies are also noticed in the segment of food assets: Every year café-restaurants with various new services and kitchen open in the Region.

This year the Ajara Region, for the first time, will host an unprecedented project of Heat Batumi 2015 with various category festivals and entertainments in continuous regime for three months. Starting July 6 to the end of September every Sunday Batumi will host various events under the same umbrella. The Heat Batumi 2015 represents a state project with a focus on popularizing the Ajara tourism potential and the whole country both in the domestic and foreign markets.

The Heat Batumi 2015 unites over 200 events. In this period a total of 259 art figures will visit the Ajara Region from 20 countries. Over 50 organizations and about 2000 participants are involved in the project implementation.

The January-June statistics has showed positive tendencies with a 2% upturn year on year.

Despite unfavorable social and political realities in our target countries, the June indicators have increased by 0.44% year on year. As to the country statistics, a total of 496 758 foreign tourists have visited Georgia as of June 2015, up 9.3% year on year. The ratio of the foreign visitors who have stayed in Georgia for 24 hours and more has increased by 3.4% year on year.

- Sea resort tourism is considered to be the Ajara region’s priority direction, but ski, eco and culture tourisms also contain much potential. What projects are being carried out to advance these segments too in Ajara?

- The Ajara Region with special tourism potential is perceived by a major part of visitors as a sea resorts zone. The Ajara tourism and heath resorts department has been providing active job to promotr various directions of the tourism busi-

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ness and develop new products in order to make the tourism season longer and upgrade the living conditions of the Region’s population. Ajara’s ski resorts are also famous for their tourism potential: rich flora and fauna is a good opportunity to draw eco-tourists and adventurers, even more so amid the current tourism tendencies in the globe, these segments are recorded as the most growing tourism directions. Special focus is made on rural tourism, wine tourism and birds supervision tourism in Ajara.

We have developed digital and print versions of special ecotourism maps to enable visitors to independently plan ski tours to Ajar’s beautiful highlands. The map includes all routes that were marked by our department for accommodation places and food assets, culture sightseeing and views. Ecotourism map and travel routes were published on our new website www.gobatumi.com We are popularizing new tourism products through thematic brochures and various materials that are being introduced to various international tourism exhibitions worldwide. We also offer ski resorts’ routs to visitors who apply to the tourism information centers. We are also advertising new products through online marketing.

The Goderdzi sky resort will also play significant role in the region’s tourism potential development for all four seasons. The resort will receive first tourists at the end of 2015.

The state sector will finish infrastructure works at resorts in the near future. Starting August 2015 various activities will start in the Goderdzi resort. By 2016 the government will ensure such an investment environment that the resort will receive and serve about 3500 visitors simultaneously. To reach these indicators, the government should draw private investments to the asset.

- How would you appraise the tourism infrastructure condition? What innovations have been introduced and how is the sea water quality controlled?

- We have carried out seasonal infrastructure works in almost all active tourism places: Batumi boulevard, dolphinarium, botanical garden. The seaside strengthening works are being carried out in Kobuleti. In some places the infrastructural works were delayed, but thanks to the Ajara government efforts and involvement, similar misunderstandings have been eradicated.

As to the sea water quality, it is far better compared to the previous years. We are monitoring the Black Sea water quality every 10 days after the summer season inauguration in line with

European standards in 8 places of the Region from Sarpi to Choloki. In some places we have improved the water quality 15 times compared to the previous years.

- Naturally, the tourism sector development depends on development of other business sectors. Do you think today the tourism sector and other segments are being equally developed?

- Along with the hotels infrastructure, the region is also developing a transportation infrastructure. Batumi is one of the special cities in terms of attainability. The city is accessible to land and air and seaborne transports (Sochi-Batumi-Sochi Thursdays, Batumi-Ylichevsk-Batumi Saturdays).

Recently modern standard railway station Batumi Central was unveiled near the city center on King Tamar Highway in Batumi. The complex includes a bus station, a business center, entertainment centers, cafes and other multifunctional assets. Batumi International Airport performs regular and charter flights from Ukraine (Kyiv, Odessa), Russia (Moscow), Poland (Warsaw, Poznan, Katowice), Israel (Tel Aviv).

It should be noted Kutaisi Airport makes huge contribution to drawing European tourists to the Ajara Region. Low-cost WizzAir performs regular flights from Poland, Hungary, Lithuania, Ukraine and Russia.

Naturally, the market demand boosts competition and balances prices. Similar tendencies are discerned for accommodation assets in Ajara in 2015. High prices are still maintained on flights to Batumi and this factor makes Ajara tours expensive and many potential tourists prefer to visit other places. Along with the tourism sector stimulation, new airlines should also enter the Georgian market to perform low-cost flights. Both the Georgian Economy Ministry and the Ajara government have been providing active job in this direction.

RUSSIA RUSSIA SAYS IN TALKS FOR SUPERJET SALES TO IRAN

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ussia’s Transport Minister Maxim Sokolov says his country is in talks to sell Sukhoi Superjet 100 passenger planes to Iran, Press TV reported. “Such talks are being held,” Sokolov told reporters of possible sales of the 108-seat SSJ100 which is Russia’s first new airliner developed since the fall of the Soviet Union. “Not only Superjets, but also other technology of certain interest to our Iranian comrades is being met (by Russia),” Russian media quoted him as saying. There was no immediate comment from Iranian officials on the subject.

The SSJ100 project has full state support, with President Vladimir Putin taking a personal interest to revive Russia’s commercial aircraft industry and compete with the world’s leading jetmakers.

Last year, Putin announced $1.8 billion to prop up Sukhoi’s parent company United Aircraft Corporation in the face of EU sanctions.

Since its maiden flight in 2011, as many as 50 Sukhoi Superjet 100s have been delivered. Russia’s Aeroflot is reportedly the only operator of the aircraft.

RUSSIA APPROVES $760MN LOAN TO BELARUS

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he Russian government has approved an agreement to grant Belarus a loan of $760 million in 2015, according to a statement from the Russian governmental website of legal information. The loan amount is granted in rubles at the exchange rate of the Central Bank of Russia; on the date the agreement was signed.

The money is intended for the repayment and service of Belorussian state debt to the Russian Federation and the Eurasian Fund for Stabilization and Development. Belarus will make the last payment on February 15, 2025. Russian Finance Minister Anton Siluanov said in July that Belarus had asked Russia for a new loan in the amount of $3 billion, and that the authorities were working on the issue.

CENTRAL BANK OF RUSSIA NAMES COUNTRY’S 10 MOST IMPORTANT BANKS

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ussia’s Central Bank has published a list of 10 systemically important banks, which have a significant impact on the country’s overall financial system. The list includes, Sberbank, VTB, Russian Agricultural Bank, Gazprombank, UniCredit Bank, Raiffeisenbank, Rosbank, Alfa Bank, FC Otkritie Bank and Promsvyazbank. The ten banks account for over 60 percent of Russian banking sector assets as of June 1, according to the CBR.

RUSSIA PLANS FUEL SHIPMENTS TO SYRIA FROM CRIMEA

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ussia plans to supply Syria with 200,000 tonnes of liquefied petroleum gas (LPG) per year via the Crimean port of Kerch, two trading sources told Reuters.

The plans are a further sign of cooperation between the two countries despite hopes in the West that Russia might stop shielding President Bashar al-Assad from pressure to step aside.

Moscow had been shipping significantly lower volumes of LPG to Syria via Kerch before Russia annexed the Crimea peninsula from Ukraine in March 2014. The United States and the European Union, which say the seizure of Crimea violates international law, have imposed sanctions on individuals and business in Crimea, which include restrictions on use of the Kerch port.

Russia is a staunch ally of Syria and an exporter of arms to Damascus. President Vladimir Putin reaffirmed support for Assad last month, saying Moscow opposed any use of external force to try to end four-and-a-half years of conflict.

“There are talks about LPG to first be shipped to Kerch and then to Syria, about 200,000 tonnes per year,” one trader said.

A second trader confirmed this separately, adding: “Syria needs the Russian fuel badly.”

6 UKRAINE US FIRM TO CONSTRUCT LIQUEFIED GAS TERMINAL IN UKRAINE – YATSENYUK

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merica’s Frontera Resources Corporation along with Naftogaz will build a liquefied natural (LNG) gas terminal in Ukraine, according to Prime Minister Arseny Yatsenyuk. The announcement comes as Kiev is actively looking for alternatives to Russian gas.

“Naftogaz of Ukraine signed a memorandum with Frontera. The American company will start the construction of a LNG-terminal and supply natural gas to Ukraine through it”, Yatsenyuk told Ukraine’s Parliament on Friday, according to RIA Novosti.

Frontera will work on the possibility of bringing LNG to Ukraine from its ongoing gas exploration projects in Georgia, the company said in a statement published on Wednesday.

MOSCOW HAS DONE EVERYTHING TO RENEW GAS SUPPLIES TO KIEV – ENERGY MINISTER

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ussia has removed economic obstacles for Ukraine to buy Russian gas and to place it into underground storage facilities, Russian Energy Minister Aleksandr Novak told reporters. “All the necessary conditions for buying and injecting gas have been created for Ukraine. The fact that they are not pumping gas now is not an economic issue. That is because Naftogaz has no money or because they want to aggravate the situation,” TASS cited him as saying. Ukraine has stopped purchasing Russian gas since July 1, after becoming dissatisfied with Russia’s prices.

UKRAINE PASSES LAWS FOR $1.7BN TRANCHE FROM IMF

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kraine’s parliament, the Verkhovna Rada on Thursday passed laws necessary for the IMF’s release of the next tranche from a $17.5 billion bailout loan. Bills on utility prices, anticorruption efforts, deposit guarantees and improvements in the ability of the state energy company to collect receivables, are among those approved. The $1.7 billion aid is expected to be approved on July 31, according to Ukraine’s Central Bank.

UKRAINE LOOKS FOR $1BN FROM WEST TO BUY GAS

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estern financial institutions may provide Kiev with $1 billion to purchase natural gas for the heating season, according to Ukraine’s Energy and Coal Minister Vladimir Demchishin. “During our visit to the United States, we held a number of meetings with the representatives of the US government, the International Finance Corporation (IFC) and the World Bank. The decision to provide financing to purchase natural gas for the heating season will be reached in the near future,” the minister said. Ukraine expects to receive $1 billion, with $300 million from the World Bank, $300 million from IFC, and the remainder from other donors,” he added. Ukraine’s Energy Ministry has said there are not enough sources to buy natural gas for the heating season.

UP TO 1.3 MILLION IN PARCHED UKRAINE FACE WATER CRISIS: UNICEF

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p to 1.3 million people in war-torn eastern Ukraine are facing acute water shortages and a serious water crisis due to damaged or destroyed infrastructure, the United Nations children’s agency UNICEF said on Tuesday. Many in the Luhansk region have to rely on water trucks or travel to neighboring villages to get water. In Mariupol, a city of 500,000 in the Donetsk region, they rely on water from a “rapidly depleting” reservoir, UNICEF said.

“Water is one of the most acute needs of children and adults in eastern Ukraine,” Giovanna Barberis, UNICEF representative to Ukraine, said in a statement.

“No children and families should have to risk their lives in order to access one of life’s basic necessities for survival.”

With little rain and high temperatures, conditions are becoming increasingly difficult. The risk of waterborne diseases is also rising as people are unable to store and transport water safely, UNICEF said.

CEO

ajara business week

July 20, 2015 #2

Adjaristsqali Georgia CEO: A company is a Success, When it Demonstrates a Responsibility For the Country and the Society, in Which it Does Business Adjaristsqali Georgia LLC has a new CEO Ronny Solberg. Mr. Solberg has got multiyear work experience on top managerial positions in many countries. Ronny Solberg has contributed to the successful implementation of several multimillion projects.

- Mr. Solberg, how useful is the implementation of hydro power projects for the Georgian economy development?

- Georgia has substantial hydroenergy resources and a development of these resources is very important for the country’s economy.

The energy from hydropower stations is one of the cheapest and most environmentally friendly sources of energy. The enhancement of this sector, reduction of energy imports in the Georgian energy system and increase of energy exports are extremely important in order to gain energy independence for the country. Georgia has great hydropower energy capabilities from 300 of its 26 000 rivers, however, only 18% of these resources have been developed.

It is also necessary that hydropower projects are carried out in compliance with all standards, mitigating the impact on the environment. This can be done with constant monitoring and control.

- What is the benefit the Ajara Region and the whole country will receive after the Shuakhevi HPP project implementation?

- Shuakhevi HPP is not just a 187 MW hydro power plant. It means much more for Ajara and Georgia as a whole.

Investments of 400 000 000 USD Adjaristsqali Georgia will make signifies: a development of the hydropower sector, creation of new job places, money inflows to the state budget in terms of taxes, an increase of qualified staff in the Georgian labor market, the development of the Ajara region, contribution to the independence of the Georgian energy system and implementation of social projects which are designed to assist in the long-term development of the Ajara highlands.

- How many workers has the Shuakhevi HPP employed from the villages around the construction area?

- As of today, over 650 citizens of Georgia are employed in the Shuakhevi HPP project. It should be noted that 90% of the hired labor force is from the local municipality. The hired people are not working only on the construction, a part of them are involved in social projects funded by our company. For example, I would like to mention the rehabilitation of drinking water supply

initiated by our company in Makhalakidzeebi village, the Shuakhevi municipality or the rehabilitation project of the public school in Vashlovani village, the Khulo municipality. Both of these projects are currently being implemented right now with a direct participation of local workers.

Our company is trying to ensure that Shuakhevi HPP have a positive impact on the standard of living of the local population.

- Your company is implementing social projects in the Ajara region. What projects are we talking about and are they are oriented on a long-term development of the region?

- Our priority is to support the long-term development of Ajara. In this regard, our company is distinguished by high social responsibility that we have in relation to the communities where we work.

Our projects cover various areas such as education and awareness-raising, community empowerment programs, local infrastructure development, etc. For example, this year we funded BA tuition fees for 8 students, who are studying at higher educational institutions. In summer we are starting a students’ internship program, which aims to support Georgia in preparation of qualified personnel in engineering. Also we have started community empowerment program, which provides grants and support for family business.

We have a great list of projects that we are implementing together with local municipalities.

It is important for us that our projects are primarily tailored to the interests and needs of local communities. In order to be a successful project, it is a prerequisite that the project have been planned jointly with involvement of local communities and municipalities.

All social projects that are implemented by Adjaristsqali Georgia are focused on long-term goals. We will do our best that our planned projects bring sensible results in the region’s development process.

- Our society, business sector and the Authorities frequently appraise Adjaristsqali Georgia as a company of high social responsibility.

What role should be given to the business sector in the social development process?

- I am proud that our company is one of the most socially responsible companies in the Georgian market. It has implemented all the social projects in this region and it is serving for the better future of Georgia.

I have a family, children, and what can we do the most valuable for them? I think certainly we should guarantee high-quality education for them. Our company’s priority is focused exactly on the implementation of social projects oriented on education.

I believe a company is a success, when demonstrates its responsibility for the country and the society, in which it does business, when it tries to help to the social development, analyzes public needs.

- In addition to the above-mentioned, what kind of benefits can the construction of Shuakhevi HPP hbring to our country?

- One of the largest and most important things that Georgia will acquire with this project is qualified, skilled, talented people, who in the future will have their say in the development of the country. With this experienceand accumulated knowledge they will successfully carry out important projects for both state and private sector.

On the other hand, as it is known to the public, before the beginning of this project there were a number of trainings conducted for local residents who had different kinds of work in the construction process. They learn and develop their skills with the professionals, and when this project will be completed, it will not be difficult for experienced and qualified personnel to find jobs. They will be always in demand in the Georgian labor market.

- Finally, what do you think about Georgia, what is your attitude towards this country?

- My first emotion, when I came to Georgia for the first time, was its amazing nature is very similar to the nature of my country, Norway. I have tasted Georgian food and I like it enormously; I have managed to visit Svaneti – it is very beautiful and impressive region of Georgia, what I have seen so far has exceeded my expectations.

I like the villages of Ajara highlands. Each of them has an amazing view, a lot of greenery around, and the most important is that the most kind, warm and very open-hearted people live there.

Adjaristsqali Georgia is a Georgian company, which is doing very important work for this country. This is a strong team, I would say it is more like a family, who works hard for the success of the project.

On the one hand, a success of the project means construction of the Shuakhevi HPP and, on the other hand, improvement of living standards of the people, who live in the areas of construction. When these two important goals will be reached, only then we can consider the project as successful.

July 20, 2015 #2

INTERVIEW

Teona Baghdavadze: We Should Popularize Ajara Through Sea Resorts and Other Sectors Without Direct Relation With Sea In her interview with the Ajara Business Week (ABW) PR technology specialist Teona Baghdavadze talks about the Ajara’s tourism potential and the Region’s popularization methods, the role of a business-economic media outlet in covering the Region’s business potential and ABW’s perspectives for mediating between the state and the business sectors.

- We have introduced a new media platform with a focus on the Ajara Region’s business potential. How would appraise our undertaking?!

Do you expect it to be interesting and beneficial to the local business and the audience?

- I welcome the media space has acquired a new edition to cover the business sector’s activities in the Ajara Region. Ajara’s business-economic potential is of vital importance for Georgia’s economic development and advancement, including, in terms of the tourism sector, exports or imports indicators. Therefore, highlighting these sectors is very important for both directions, namely, promotion of the small and medium business sectors and encouraging the major business in order to boost their involvement in the Ajara Region development.

- Do you expect ABW to mediate between the state and business sectors? In general, what is your opinion on the media role in business development and what specific objectives should the ABW strive for?

- It is a little difficult to answer these questions.

All these aspects are supposedly determined in the development concept of the media owners. I believe this edition should not be confined with only mediating between the state and business sectors. I do believe any edition should provide the audience with unbiased, valuable and comprehensive cover-

age of the regional developments.

- Ajara is one of the most important resort zones in Georgia with major tourists’ inflows annually. How would you appraise the Region’s popularization strategy on domestic and international levels? What innovations and PR campaigns should be carried out to further promote the Ajara Region?

- Several interesting companies have already carried out a full-fledged PR campaign to advertize the Ajara Region in 2015. I believe these companies are able to maximally expose the region’s tourism potential in various directions. The region should be popularized through sea resorts and other sectors that have no direct relations with the sea. We should raise interest in the Region’s various tourism opportunities, including sea resorts, mountains and other tourism directions, routes and so on.

- The public opinion on large-scale culture events and festivals usually splits. One part asserts these events popularize the region, another part assures money is spent without purpose. What would you, as a PR specialist, say about this issue?

- I do not agree that money is wasted without purpose on larger-scale tourism events and international festivals. Similar events have many partners, sponsors and these factors make positive effect on the Region’s prestige and popular-

ization. Therefore, I do believe similar criticism is ungrounded.

- Do you think the Authorities follow a valuable and reasonable strategy for popularizing Georgia as a country?

- It would be unserious from me with my profession to criticize this strategy, because I do not know it. If the tourists’ inflows grow in the longterm perspective and various interested parties obtain specific indicators, then we will be able to analyze positive and negative aspects of the strategy.

It would be expedient that the people, who have developed this strategy, talk about these issues.

Giorgi Abramishvili: Only Tourism Sector Cannot Develop Ajara Region. We Should Also Strengthen Other Economic Segments The Autonomous Republic of Ajara and, especially, Batumi are one of the important economic zones in Georgia. For the last decade an extreme growth in the construction industry has further promoted the tourism sector. from the Soviet-period attractive resort Ajara was gradually transformed into a regional resort. The AJara Region has become a subject of rising interest in both Georgia and foreign countries.

How should we develop and popularize the Ajara Region? What is a real value of the Ajara Region’s tourism potential?

Giorgi Abramishvili, a research director for Market Intelligence Caucasus, talks about these relevant issues in his interview for ABW. - What is your opinion on the Ajara Region’s development? Should we develop specific cities separately (for example, Batumi, Kobuleti) or we should develop the Ajara Region as a whole project?

-The region should be developed on equal basis to reach good results in the long-term perspective. If we develop only Batumi, its travel and economic environment and potential, other municipalities of the Autonomous Republic of Ajara will become less interesting and attractive. Residents of these municipalities will lose the interest of doing business in their places and they will move to the nearest regional center, Batumi. As a result, we will receive uncontrolled and irreversible migration. Similar tendencies have been long making negative effect on Tbilisi, for example.

Finally similar tendencies will damage Batumi too. Many countries have passed the so-called Syndrome of Tadpole and now they are trying to overcome the negative results of this syndrome.

We should take into account their experience.

- How should we popularize the Ajara Region and promote its future? Should we follow a certain strategy and plan or we should rely on decisions of this or that person or a group of similar persons, like the case with Batumi?

- Any developed and popularized place and region brings revenues, welfare and so on. At the same time, we should appraise and assess planned activities and expected effects. No one has made similar assessments in Georgia. The development of Batumi and the whole region of Ajara, any other issues related to the Region and the city should not be decided by one person or

7

ajara business week

a group of similar persons. Moreover, each decisions and steps and risks should be valuably and professionally analyzed and assessed despite position and goodwill of the mentioned category of people. Many countries spend billions of USD to earn more and more billions. Do you think Dubai was developed thanks to the goodwill of one or several persons? No. For many years a lot of research works and consultations are being till today carried out on the Dubai development issues.

Various architects, planning and market specialists and other professionals are involved in the research process. They are invited prior to laying a brick on another to precisely explore whether there is a genuine need of laying one brick on another. We should first of all calculate and assess if we want to know whether this or that project will bring real benefits. In we are no capable for conducting similar research works, we should invite foreign experts and pay to them. This is an investment, but expenditures. These investments will bring better life and welfare to us and our future generations.

- How would you appraise the Ajara Region’s tourism potential. Is it a valuable tourism region with valuable infrastructure? Is Ajara capable for becoming one of the most attractive tourism regions?

-Only tourism sector cannot guarantee the economic development and welfare, neither in Ajara nor in the whole country. Why? Because the tourism sector is one of the most vulnerable economic fields. Only one fact of natural disaster may damage and shake the infrastructural image and reputation of the region and the country. As a

AZERBAIJAN AZERBAIJAN INTRODUCES STATE CONTROL OVER TARIFFS IN HOTEL BUSINESS

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he Azerbaijan’s Ministry of Culture and Tourism has decided on directions of its activity for simplification and reduction of tariffs for touristic services.

According to Minister Abulfas Garayev, the works will be performed in three directions.

“The first direction is simplification of visa regime for foreign tourist. Currently more than 60 travel companies issue electronic visas and this year they have issued more than 10,000 such visas. In accordance with the Presidential order, visa issue term will be reduced from 10 to 3-5 days and we have already prepared some proposals,” the Minister said.

“We have already recommended local executive authorities, local businessmen and all appropriate structures to check all tourist projects and ensure that they are working in accordance with the standards of the Tourism Ministry. Today the legislation has no any specific standards and we believe that the businessmen should determine such standards together with the Ministry of Culture and Tourism, as such standards will also affect regulation of tariffs,” the Minister said.

Garayev said that some businessmen present their hotels as 3-4 star hotels though their service quality doesn’t conform to this rating.

AZAL CONSIDERING REDUCING TICKET PRICES

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zerbaijan’s largest airlines, AZAL, together with other relevant departments has begun to fulfill orders President Ilham Aliyev gave on July 13 during the meeting of the Cabinet of Ministers. AZAL is considering various options for reducing the ticket prices. “That will take some time,” the company stressed. The airline said that after discussions the customers will be provided with detailed information on this issue. At the meeting, President Aliyev instructed his Cabinet to reduce airline ticket prices.

“Prices for flights in some cases are artificially high. The question is asked, why? High-quality services are provided? I welcome it. Indeed our airline AZAL has a high service. I welcome it. But Azerbaijan does not buy fuel abroad, but produces it itself. Kerosene is sold cheaply, unlike other countries. Why are the prices high? AZAL receives large subsidies from the state. All aircrafts are purchased through the state budget. All airports are being built with public funds. All conditions have been created by the state. Why do ticket prices have to be expensive relative to other countries,” he said.

PHYSICAL CAR IMPORT IN AZERBAIJAN SLUMPED 1.95-FOLD IN JAN-JUNE

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result, tourists inflows may be entirely ceased for a long period. At the same time, tourists’ inflows cannot increase continuously if the tourism infrastructure does not grow along with development of other economic fields. I love the Ajara Region, but we should pose a similar question: Does Italy have higher tourism potential than Ajara?

Let Our audience answer this question. And we should pose another question: Do you think the Italian economy relies on only the tourism sector, or do you think tourists travel to Italy to see only mountains and valleys and sea resorts?

In brief, tourists need infrastructure, hotels with good and polite staff, good and variety of dishes ad kitchens. We should have professional trainers in the service sector to produce good and polite hotel staff. To have similar trainers, we should have respective university degrees and courses and so on.

Finally, I would like to stress I am delighted to see the development and growth of Ajara and Batumi. I am sure this process will further continue.

But more efficient results and higher goals need three major aspects: protecting ourselves from the so-called syndrome of tadpole; exploring what we need and what will bring more benefits; We should start constructing and developing after all these research works and so on. We should not rely on only one economic sector, because we should secure ourselves from available risks and threats.

he State Customs Committee reports that for Jan-Jun 2015 the car import collapsed 1.95fold year-on-year. Thereby, the trend of 2014 when the physical import of motor vehicles fell by 39.3% increased. In 2013 import grew by 3.09% and exceeded 104,000 cars for the first time.

The SCC informs that over Jan-Jun 2015 the country imported 17640 vehicles (4,090 in January, 3,421 in February, 2,524 in March, 2,855 in April, 2,605 in May and 2,145 in June), including 15,745 (3,870, 3,161, 2,225, 2,484, 2,172 and 1,833) light cars, 1,126 trucks, 590 buses and 179 special-purpose vehicles. For comparison, in Jan-Jun 2014 the car import reached 34,359 vehicles, including 30,917 light cars.

Data on the cost of car import has not been brought for the last few years.

However, for Jan-Jun the total import of vehicles and spare parts amounted to $939.084 million, which was 2.54-fold higher than import in JanJun 2014 ($369.458 million). The share of motor equipment import in Jan-Jun 2015 made up 19.99% of total import versus 9.16% for 2014 and 13.4% for 2013. In 2014 the total import of vehicles and spare parts to them amounted to $841.898 million, which was by 41.3% lower than import for 2013.

In 2013 the country imported 104,385 cars, including 94,879 motor cars, 7,823 trucks, 827 buses and 856 special-purpose vehicles. At that, motor vehicle import for December totaled 10,699 cars (the best monthly index for 2013). Import of light vehicles reached 9,705 in December that was also the best monthly index for 2013.

ECONOMY

8 ARMENIA PROTEST ACTIONS RESUME IN ARMENIA

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tand up, Armenia!” movement uniting the participants of the protest action against the increase of electricity tariffs in Armenia, convenes a rally on Freedom Square in Yerevan at 19:00 (UTC/GMT + 4 hours), July 17, said the message on the Facebook page of the movement, RIA Novosti reported.

“As a result of the public discussions in Baghramyan Avenue, a mechanism has been worked out for adopting decisions on coordinating the movement against the increase of electricity tariffs,” said the message.

The Council of the “Stand up, Armenia!” movement has been created which includes the participants of the discussions, according to the message.

On June 23, the Armenian police broke up a rally in the center of the country’s capital. The rally was held in protest against the increased electricity tariffs.

The protests in the streets resulted in use of water cannons against people. Over 230 people got arrested as a result of violent crackdown, including journalists of Gala TV, the Radio Liberty’s Armenian office, the Haykakan Zhamanak newspaper, the Hetq, News.am, Panarmenian.net news agencies.

On June 17, Armenia’s Public Services Regulatory Commission, considering a request from the distribution company, Electric Networks of Armenia, which is a subsidiary of the Inter RAO UES, raised the electricity tariffs by 6.93 Armenian drams (about $0.015).

This caused discontent among the population that believes the rise in the cost of electricity will lead to higher prices for essential goods and many services.

EUROMONEY NAMES ARDSHINBANK BEST BANK IN ARMENIA IN 2015

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n July 9, “Euromoney” magazine in London named Ardshinbank the Best Bank in Armenia in 2015.

“Reputable international financial institutions signify the track record of the bank in its ability to maintain sustainable growth in market share in such a challenging environment.

Ardshinbank is also the first Armenian private entity to have a successful bond issue in international capital markets,” reads the press release disseminated by the Bank.

The Best Bank in Armenia award has been, above all, achieved through mutually successful and effective cooperation with the customers and partners of the bank.

RUSSIA INVESTMENTS IN ARMENIA ECONOMY REDUCE BY 65%

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he Russian Federation (RF) has increased its investments in Azerbaijan’s economy by 1.7 times in the first half of the current year, as compared to the same period last year, reported Chorrord Ishkhanutyun daily.

“This fact is noteworthy in the sense that [the Republic of] Armenia’s [RA] strategic ally Russia, which is also [Armenia’s] main economic partner—also in the EEU [i.e. the Eurasian Economic Union]—has reduced its investments in the RA in recent years. “The 2015 first quarter data are so far publicized according to which, the direct RF investments in Armenia have dropped by 65 percent, and in general, the RA investments have decreased by half,” wrote Chorrord Ishkhanutyun.

ARMENIA GDP COULD GROW BY 2% IN 2015

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he GDP of Armenia may grow by 2 percent in the current year, said economist Ashot Tavadyan, at a press conference on Thursday. In his view, this indicator can be achieved in case of favorable dynamics in the country’s agricultural sector, and in the absence of major errors by the government. “At any rate, it’s difficult to make clear forecasts, and that’s why they are so different,” noted Tavadyan.

ajara business week

July 20, 2015 #2

Turkey, Azerbaijan and Russia - Georgia’s Top Trading Partners in 2014

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eorgia is exporting fewer products and importing more from abroad, says the country’s National Statistics Office, Geostat.

The volume of Georgia’s exports is on a slight downward trend while imports are on the rise, according to latest information by the country’s National Statistics Office, Geostat.

This week Geostat published dataabout external trade of Georgia for 2014 and compared it with earlier data; in the past five years Georgia’s export volumes has increased until now, while imports has steadily risen since 2010.

In 2014 the total value of Georgia’s exports was $2,861 million USD, while the value of all imports was $8,593 million USD. To compare, in 2013 the total value of Georgia’s exports was $2,910 million USD, while the value of all imports was $8,012 million USD. Geostat noted in 2014 Europe was the largest importer of Georgian goods (worth $1,095 million), followed by countries in Asia ($1,453 million), America ($287 million), Africa $25 million) then Oceania region ($1 million).

Similarly, last year most imports came from Europe ($3,599 million), followed by countries in Asia ($4,479 million), America ($450 million), Africa ($61 million) and finally Oceania region countries ($4 million).

Overall, the Geostat data showed Asia took the largest share of Georgian external trade (51.8 percent) followed by Europe (41 percent), America (6.4 percent) and Africa and Oceania (with 0.8 percent combined).

Georgia’s top trading partners in 2014 in terms of turnover were Turkey, followed by Azerbaijan, Russia, China, Ukraine, Germany, Armenia, the United States, Bulgaria and Japan – collectively these nations generated 68 percent of total turnover while countries in ‘other’ category made up the remaining 32 percent.

Georgia’s top ten export markets in 2014 were Azerbaijan with $545 million ($710 million in 2013), Armenia with $288 million ($315 million in 2013), Russia with $275 million ($190 million in 2013), Turkey with $239 million ($184 million in 2013), United States with $207 million ($138 million in 2013), Bulgaria with $167 million ($151 million in 2013), Ukraine with $140 million ($193 million in 2013), China with $90 million ($34 million in 2013), Kazakhstan with $89 million ($4,104 million in 2013) and finally Italy with $86 million ($81 million in 2013).

Meanwhile the top ten countries that imported Georgian goods in 2014 were: Turkey with $1,727 million ($1,409 million in 2013), China $733 million ($612 million in 2013), Azerbaijan $638 million ($653 million in 2013), Russia $575 million ($584 million in 2013), Ukraine $546

million ($601 million in 2013), Germany $466 million ($449 million in 2013), Japan $368 million ($320 million in 2013), Romania $311 million ($323 million in 2013), United States $287 million ($254 million in 2013) and Italy $222 million ($221 million in 2013).

WHICH COMMODITIES DID GEORGIA EXPORT/IMPORT LAST YEAR? Motor cars were the main commodity item exported last year (18.1 percent of total exports), followed by Ferro-alloys (10 percent), copper ores (8.7 percent), nuts (6.4 percent), wine (6.3 percent), fertilizers (4.8 percent), mineral water (4.8 percent), alcoholic spirits (3.3 percent), medicaments (3.2 percent), metal bars (2.2 percent) and other (32.1 percent).

Conversely, Georgia’s main imports were petroleum (10.7 percent of total imports), motor cars (8.3 percent), gases (4.3 percent), medicines (3.7 percent), telephones (2.3 percent), copper ores (1.9 percent), wheat (1.8 percent), cigarettes (1.3 percent), automatic data (1.2 percent), structures (1.1 percent) and other (63.5 percent).

TEA, COFFEE, CROPS, CONFECTIONERY Georgia exported $1,377,300 worth of black tea in 2014 and imported $8,008,000 worth of the same product. Exports of green tea reached $951,500 and import volume reached $564,700.

As for coffee, last year Georgia exported $290,200 worth of ground coffee and imported $13,938,700 worth of the same product. Georgia exported $136,500 worth of instant coffee and imported $19,303,900 worth of the same product

from abroad.

Georgia imported $173,228,900 worth of crops (wheat, maize, rice, barley, oats, cereals and other) in 2014 and $114 million worth of confectionery.

TROPICAL FRUITS Last year Georgia imported 17 million tonnes of banana (worth $19,983,500), one million tonnes of pineapple ($41,699,700), 269 tonnes of dates ($300,000), 41 tonnes of avocado ($108,500) and 0.8 tonnes of papaya ($5,500).

ALCOHOLIC AND NON-ALCOHOLIC BEVERAGES Mineral water was one of Georgia’s main exports in 2014.

Mineral water valued at $136,777,600 was exported last year while $327,900 worth of the same product was imported; fresh/spring water worth $346 million was exported while $153,100 was imported; and finally Georgia exported $28,715,500 worth of aerated waters containing sugar and imported $24,213,700 of the same products.

Last year Georgia exported $10,526,500 worth of fruit and vegetable juices, of which orange juice took the largest share ($15,300). As for imports, the country imported $6,124,600 worth of fruit and vegetable juices.

Almost $25 million worth of alcoholic beverages was exported last year. In particular, $24,850,800 worth of alcoholic beverages such as whiskey, vodka, liquor, rum and gin, were exported while $41,402,300 of the same products were imported.

Food Production Costs, Tobacco Prices Rise in Georgia

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he cost to manufacture food and to buy chemical products and tobacco are on the rise in Georgia, however prices of some food items are dropping thanks to a slight fall in the monthly inflation rate.

Latest data from Georgia’s National Statistics Office, Geostat, revealed a change in manufacturing prices in June 2015 had contributed to an increased Producer Price Index (PPI).

In June 2015 the PPI for industrial products increased 1.3 percent compared to May 2015.

The annual change compared to June 2014 reached 10.2 percent. The index increased 82.2 percent with respect to the 2005 average.

The monthly PPI rate in June was largely influenced by a 1.9 percent price increase in manufacturing, which contributed 1.53 percentage points to the overall index percentage change, said Geostat.

Last month prices were significantly higher for chemical products (14.1 percent). Prices also rose for manufacturing of basic metals and fabri-

cated metal products (3.4 percent).

While the PPI increased on food products, the cost of food and non-alcoholic beverages dropped 1.9 percent last month, said Geostat.

On a wider note, the annual PPI rate was mainly affected by price changes in the following sections: Manufacturing prices increased 12.9 percent year-on-year (y/y) and contributed 10.53 percentage points to the overall index growth. In this time there were comparable increases in prices for manufacturing of food products, beverages and tobacco products (17.3 percent), manufacturing of chemical products (18.2 percent) and manufacturing of basic metals and fabricated metal products (7.1percent); Supply of electricity, gas and water: Prices for these goods were 2.8 percent lower, which contributed -0.35 percentage points to the overall index.

Meanwhile the amount of money a person needs to support themselves in Georgia is slowly rising.

Geostat figures showed the minimum subsistence level for an able-bodied male in June 2015 was almost 162 GEL. This was about 12 GEL higher than in June 2014, where the minimum subsistence level was 149.6 GEL. For the average consumer, the minimum subsistence level was 143 GEL. Last month this figure was 143.4 GEL, while in June 2014 a person needed 132.5 GEL to survive.

For an average family the minimum subsistence level reached 270.8 GEL in June this year.

BUSINESS

July 20, 2015 #2

First Half Records 2.02% Upturn in Tourists Inflows to Ajara

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ccording to Tourism and Resort Department of Adjara, regional tourism statistics is based on the objects’ data registered in Adjara.

“Despite the unstable social and political situation in the targeted countries, June’s data is not merely sustained but moreover

is slightly increased (0,44%)”, - the Department declares. To remind, 496 758 international visitors have visited Georgia in June, 2015, which exceeds by 9,3% comparing to the same period of the previous year.

Annual growth of tourist number has made up 3,4% in the same period.

Georgian Wine Invades Chinese Market

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eorgia’s Agriculture Ministry is stepping up its promotion of the country’s wine and winemaking culture in China; with the unveiling of a promotional centre and winemaking house during an official visit of the Agriculture Ministry to China.

The opening event for the centre, located in capital Beijing’s Nutrition and Alcohol Research Institute, was led by Minister Otar Danelia and included a presentation and tasting of Georgian products. The event was attended by China’s deputy agriculture minister, wine importers and industry representatives.

Danelia said the centre aimed to promote Georgian culture and winemaking and contribute Georgia’s efforts to export its products to “strategic” markets. The centre will be led by vice president of the Institute, with a special coordinator

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ajara business week

contributing from Georgia.

In a separate ceremony in China’s Zhagang province, Minister Danelia opened a Georgian wine house where 30 varieties of dry, semi-dry and semi-sweet wines will be represented.

According to Ministry data, wine made up 93 percent of the country’s agricultural export, with around one million litres of wine exported to China “over the recent years”.

Danelia emphasized it was very important for Georgia to deepen trade-economic relations with China.

“Georgian wine is distinguished by its uniqueness. Georgia produces 18 wines of local origin and one geographically indicated product – Chacha. We can offer a wide variety of white, red and rosé wines. We are glad to see demand of Georgian wine is increasing in China,” Danelia said.

Meanwhile a Chinese businessman recently opened a Georgian wine house in China. The man, who was not named, stressed the uniqueness of Georgian wine and its “distinguished taste” encouraged him to open a Georgian wine house.

He believed Georgian wine had “huge potential” to establish itself in the Chinese market. The entrepreneur intended to open the same type of Georgian wine houses and a Georgian wine mu-

seum in other cities of China.

Georgia will export 100,000 bottled of wine in the first stage of the partnership. Meanwhile, in August about 20 Chinese businessmen will visit Georgia to arrange meetings with representatives of Georgian wine companies.

In recent times Georgia has worked hard to diversify its wine import markets, and this was evident in the Agency’s latest data. Export of Georgian wine had increased to “strategically important markets” like China, Eastern European countries and Canada, said Georgia’s National Wine Agency.

Canada recorded the largest percentage increase (250 percent) in terms of volume of Georgian wine imported in the first part of this year.

From January to April 2015, China also experienced an 87 percent increase in its import of Georgian wine, claimed the Agency. In recent times Georgia has made an effort to penetrate the Asian wine market, and results were now becoming evident, said the Agency. This could further be backed up as exports of Georgian wine increased by 9 percent to Japan so far this year.

In total, from January to April, Georgia exported 7,978,749 bottles of wine (0.75 litre), valued at $23 million USD to 26 countries across the world.

Real Estate Market Revived

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ccording to Public Registry, 49 138 transactions have been fixed on the real estate market in June, which exceeds by 7,3% comparing to the same month of the previous year.

However, transaction number has been grown by 17,4% through the last month. To note, the volume of primary transactions is increased by 27,7% comparing to May, while the secondary – by 15%.

Monthly index of registry transactions (December,

2010 = 100) has been fixed on 1.168-level by June, which exceeds the same index of the previous year (1.089). As for the annual index, primary (15.8%), as well as secondary transactions (5.3%) of the real estate are increased comparing to the same month of the previous year. In addition, 79.6% of registration transactions carried out in June has accounted for secondary, while 20.4% - primary registration transactions (respectively, June, 2014 – 81.1% and 18.9%).

Cost of Living Marked 161.4 GEL in June

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inimum living wage, counted according to the minimum food basket, is changed insignificantly by 50 tetri through the last month, while the figure is increased by 11,7 GEL year-over-year, “Skastat” reports. Minimum living wage of an average family totals to 270,8 GEL in June.

The minimum living wage of 1-member family amounts to 143 GEL, 2-member – 228,8 GEL, 3-member – 257,4 GEL. However, 4-member family needs 286 GEL for a living, while 6-member and more – 380,4 GEL. To remind, more than 136 thousand families need subsistence allowance in Georgia, they receive the monthly aids from the state.

Annual Growth Pace of Producer Price Index Sees 2.5 Years’ Maximum

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ccording to “Sakstat”, Producer Price Index is increased by 1,3%, while annual growth pace – 10,2% in June comparing to May, which is on the maximum of 30 months.

In addition, the index is grown by 82,2% comparing to the average of 2015.

As of “Sakstat”, price growth of 1,9% on the processing industry had a basic impact on the formation of the index through the last month, which has reflected by 1,53 percentage point to the total index of the percentage index change. Namely, prices are grown on chemical industry (14,1%), metallurgical industry and fabricated metal prod-

ucts (3.4% 0).

As for the index formation in 12-month period, price change on the processing industry and electricity, air and water production and distribution had a basic impact.

Costs are grown by 12,9% in the processing industry. Price increase has been fixed on the food staff in the mentioned period (including beverages) and tobacco production (17,3%), chemical production (18,2%) and metallurgical industry and fabricated metal products (7,1%).

It should be noted, that prices were reduced in energy, air and water production/distribution sector by 2,8%.

WORLD OBAMA, PUTIN CONGRATULATE EACH OTHER FOR IRAN DEAL

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ussian President Vladimir Putin and U.S. President Barack Obama spoke on Wednesday July 15, congratulating each other on reaching a nuclear agreement with Iran.

The Kremlin issued a statement following a telephone conversation between Putin and Obama, a call the White House also confirmed.

“Both sides stressed that the comprehensive agreement on the Iranian nuclear program meets the interests of the entire international community, helping strengthen the nuclear non-proliferation regime and decreasing tensions in the Middle East. In this respect, the presidents emphasized the role of Russian-U.S. dialogue in ensuring security and stability in the world,” according to the statement.

Putin and Obama “expressed a mutual intention to continue joint work in the interest of sustainable implementation of the Vienna agreements, as well as certain other current international matters, including countering international terrorism,” according to the Kremlin statement.

The two leaders also “congratulated one another on a special date in Russian-American relations: the 40th anniversary since the Soyuz-Apollo orbital flight.”

NORTH KOREA TO HOLD LOCAL ELECTIONS IN JULY, FIRST UNDER KIM JONG UN

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orth Korea announced in June that it plans to hold local elections in July, the first time since leader Kim Jong Un came to power in 2011. The elections will be held for deputy positions at provincial, city and county assembly levels, state-owned Korean Central News Agency, cited by Yonhap, reported.

The North’s local elections are held every four years, with the number of seats being determined by each district’s population. North Korea’s legislature, while nominally democratically elected, has long been criticized for its electoral process, where people eligible to vote for their district’s deputy are represented by only one candidate, who is nominated by the ruling party. The Democratic Front for the Reunification of the Fatherland coalition, which selects the candidate, is headed by the Workers’ Party of Korea.

The results of the elections are also believed to be a rubber-stamp for the Kim dynasty’s regime.

When the country held its first parliamentary elections under Kim’s leadership last March, official voting figures showed a voter turnout of nearly 100 percent.

North Korean defectors claim that the vote acts as an informal census, with local neighborhood committees being formed to monitor the voter turnout. Abstaining from the vote or failing to appear can reportedly be considered treason.

Kim, who was still the heir to the nation during its last local elections, ran in the 2014 parliamentary elections representing the dynasty’s home district, Mount Paektu, the Korean Peninsula’s highest peak.

GOOGLE’S QUARTERLY REVENUE AND PROFITS RISE

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oogle’s profits rose 17% to $3.93bn in the three months to June from the quarter last year, boosted by an 11% rise in revenues to $17.7bn. The search giant’s all-important advertising revenue was also up 11%, to $16bn.

In a statement Google’s finance chief Ruth Porat highlighted ad growth on mobile and YouTube.

Google’s shares jumped 7.5% in after-market trading as traders welcomed the better-than-expected results. The share price had already risen 3.5% during normal trading hours.

Advertisers pay Google only if a user clicks on one of their ads. “Cost per click”, or the average price of online ads, fell in the quarter, but was more than offset by the increase in ad volumes.

Google’s ad revenue has been under pressure as consumers access its services on mobile devices such as smartphones and tablets, whose advertising rates tend to be lower.

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ENTERTAINMENT ajara business week

July 20, 2015 #2

CASINO CAMPIONE OVERVIEW

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Casino Campione Batumi Complex is also integrated with an entertainment zone that has a terrace lounge bar with a gorgeous sea view, offering Georgian-European fusion cuisine.

The complex is located in one of the best tourist attractions --The New Boulevard 7th Sector at the Batumi Black Sea Coast. The place offers a harmonious environment for casino tours and visitors.

Casino Campione is only five km’s away from the Batumi International Airport, which is a five-minute drive by car.

Casino Campione’s Vision

New Boulevard, Batumi Black Sea Coast; tel: +995 422 200 175; www.casinocampione.ge

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Casino Campione’s Philosophy and Mission Statement At Casino Campione - our mission is to provide a quality entertainment experience for every guest by delivering excellent services and the best gaming products placed in a fun environment.

We respect our relationships with each other, our visitors, our neighbors and our community.

CASINO CAMPIONE OVERVIEW Anaklia to Host GEM Fest Musical Festival After Kazantip Armin Van Buuren and World’s Celebrity Musicians – Festival Schedule

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fter Kazantip Anaklia will host another large-sale youth project in 2015. According to preliminary information, GEM Fest will be one of the most exceptional and excellent festivals Georgia has hosted ever. The project was initiated and is being implemented by the same team that assumed an organization of Kazantip Festival in Anaklia in 2014. GEM Fest is an event of state importance that will be implemented with the support of the government and by the initiative of Giorgi Sigua, the former head of the national tourism administration.

The organizers will take into account all the experience they have gained from previous years, especially, from the Kazantip Festival.

Last year the organizers had enormous expectations and everyone expected for the first time Georgia would host the Festival that would assemble young people in Anaklia and the country would hold a European standard event. However, the expectations failed. The Festival did not justify even a half part of the expectations and therefore, Kazantip Festival will not be held in Georgia any more. There are many reasons for that. Some specialists refer to high prices, part of the society called the Kazantip Festival as a perverse event. The Fact is the festival has not justified in Georgia.

As a result, the idea of holding GEM Fest in Anaklia has arisen. One of the celebrity DJs Armin Van Buuren will play at this extraordinary music festival. The Festival will last from July 30 to August 7. Several stages will work on 18 hectares in 24/7 regime (one of them will be in the Aqua Park), as well as an outdoor movie theater.

GEM Fest will be organized as a multi-format, international festival with the participation of supernovas and young top stars of the world’s electronic music, celebrity activists of the modern art, choreographs, painters, designers, photographers, cinematographers, DJs, video-painters and athletes.

The following famous DJs and bands will play at the Festival: ALEX PICONE; ANDRE CROM; ANDREY PUSHKAREV; ANNA HANNA; ANRILOV; ANUSHKA; ARMIN VAN BUUREN; B VOICE; BACHO; BERO; BOOKA SHADE; CAMEA; COBERT; DALI; DAVID AUGUST; DJ T; DUBFIRE LIVE: HYBRID; EASY CHANGES; ELLEN ALLIEN; Evol Waves; FERNANDO COSTANTINI; FLEYTA; GACHA & KAIJI FREQUENCIES; Gio Shengelia; GORJE HEWEK; GREENBEAM & LEON; HVL; IAN POOLEY; JAN KRUEGER; JULIAN PEREZ; KANCHELI; KOLFORD; Lasha LIVIO&ROBY; Luciano; M.A.N.D.Y.; MAAYAN NIDAM; NAKADIA; NAKASHIDZE; NASTIA; NIKA; J Nuera Oimactta; OLGA KOROL; PETRE INSPIRESCU; PRASLEA; RADIO SLAVE; Rhadoo; ROBOSONIC; ROUSTAM; SAMMY DEE; Smailov Sofia; Rodina; SUNNERY JAMES & RYAN MARCIANO; Tale Of Us; TETE NOISE; The Forest; TIEFSCHWARZ; Timur Basha;

TOMMA; VAKO KEY; VAKO T; VINCENT; Vova Klk; W&W; WHOMADEWHO Live; Bands: Bakur Burduli; LOUDSPEAKERS; N!UTONE; NINO KATAMADZE & INSIGHT GEORGIAN BRASS & STRINGS Conductor NIKOLOZ RACHVELI; TSU ART. Both Georgian bands and DJs will take part in the Festival. Anyway the world’s celebrity DJ Armin van Buuren will add a major importance and fascination to the Festival.

As to the Festival visit and ticket prices, visitors are able to get into the GEM Fest territory through a purchase of Multi Pass or Single Pass plastic cards.

Multi Pass is a plastic card that enables to enter and exit the festival territory without limits from July 30 to August 7.

There are three varieties of Multi Pass cards: Classic Multi Pass – the price of a Classic Multi Pass will change at various stages of the sales. Just now a promo period runs and the price is 150 GEL. Full House Pass – (Classic MultiPass + a liv-

ing tent for two persons on the Festival Territory).

The price in the promo period makes up 250 GEL per person and 400 GEL for two persons.

Diamond Pass – the card provides various bonuses: guaranteed hotel booking (without a suite value); entrance into the Festival Territory with a vehicle (up to the Aqua Park), access to the backstage, VIP zones at the main scene, VIP Lockers in the Aqua Park and many other preferences. The price of Diamond Pass is 1000 USD. A special offer is offered to students. All students who go to the domestic universities are able to buy 9-day package at 200 GEL, the price of a two-person package is 300 GEL. The Students Package includes 9-day ticket (MultiPass), a tent on the Festival Territory within the town of comfortable tents, free of charge bus services, that will be off from Tbilisi, Kutaisi and Batumi to Anaklia.

MultiPass tickets are sold in advance at the website: http://eventer.ge. The tickets will be sold during the Festival at booking offices.

July 20, 2015 #2

HEAT BATUMI ajara business week

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Batumi Heats Up with Sanremo Stars’ Weekend

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veryone’s favorite Italian singer Umberto Tozzi and the near-legendary Ricchi e Poveri graced the newly constructed stage on the Batumi Tennis Courts with their hit songs.

“Heat Batumi 2015” moved to an active phase last weekend as 17th to 19th of July saw the Sanremo Stars’ days. The concerts were led by David Gomarteli, who by no mere coincidence is a lover of all things Italy, starting from the language and cuisine and ending with the music. This made him the perfect host for the weekend events.

As for the foreign performers, Umberto Tozzi is a well-known Italian singer who covers pop, rock, and various other genres, plays the keyboard and guitar, and writes, composes, and produces songs. It’s important to note that Heat Batumi 2015 marked Umberto’s first time visiting Georgia, which left him quite pleased.

Ricchi e Poveri is an Italian pop singing group. They have recorded both in Ital-

ian and Spanish and the group had some of the most popular Italian songs of the 1980s and 1990s, including “Mamma Maria”, “Se m’innamoro”, “Made in Italy”, “M’innamoro di te” and many others.

“Spaghetti Swing Band” led up to the weekend, with a performance on July 17th.

Other past events in frames of the Heat Batumi project include the dazzling week-long Georgian folk art celebration that kicked off Heat Batumi on July 6th, followed by a week of contemporary singers and artists like Vanilla Cage and the Black Sea Band.

The 60 days of Heat Batumi will, overall, cover over 200 events hosting 259 foreign artists from over 20 countries. With up to 2000 participants overall, Heat Batumi will be split into 11 thematic weeks, with each and every one of them having a unique topic and artistic accent. Heat Batumi is suitable for people of all ages and allows visitors to plan their vacation based on what they wish to see most. There’s fun going down all dayround.

INFOGRAPHIC

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PUBLICITY ajara business week

July 20, 2015 #2

• 247 guest rooms and suites • Nephele Sky Bar on 20th top floor with open terrace and best views • Pelion Restaurant, Lobby Café and Bar Tandila • Eforea spa, fitness room, indoor swimming pool and open sun terrace • 7 meeting rooms and ballroom • Complimetary Internet access throughout the hotel • Smoking rooms available • 181 car parking spaces