AJARA BUSINESS WEEK #21

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December 28, 2015 #21

December 28, 2015, Issue 21

AJARA1

BE INFORMED, DO BUSINESS IN AJARA

ARCHIL KHABADZE: AJARA HAS ATTRACTED 521 MILLION USD INVESTMENTS FOR BUILDING HYDRO POWER PLANTS

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MERRY CHRISTMAS AND HAPPY NEW YEAR 2016 DAVID BALADZE: : AVTANDIL BERIDZE: : GROWTH IS EVIDENT IN 2015.

WE PLAN TO INCREASE CURRENT INDICA TORES IN 2016 Pg. 7

AGL will complete construction of Shuakhevi HPP in a year

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AJARA IS GEORGIA’S SECOND BIGGEST EMPLOYER REGION

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MAMUKA BERDZENISHVILI: THE 2016 MAIN CHALLENGE CONSISTS IN IMPROVING SERVICE QUALITY Pg. 9

UKRAINOCHKA IN BATUMI

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MAIN EVENTS ajara business week

December 28, 2015 #21

MAGNOLIA 2015 FORUM AWARDS SUCCESSFUL Archil Khabadze: Tourism is Our Priority Direction TRAVEL COMPANIES

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otel Leogrand has hosted Magnolia 2015 regional tourism forum in Batumi. The event was organized by the Ajara Tourism and Resorts Department. The forum was held for the first time in 2015 with the aim to improve the service standards in the Region’s tourism sector.

About 200 representatives of private companies involved in the tourism business, donor organizations, government and nongovernmental organizations, as well as the Ajara government chairman Archil Khabadze attended the regional tourism forum Magonia 2015.

The results of the Mystic Visitor project were introduced at the Forum, under which in 2015 the Ajara tourism and resorts department carried out secrete visits to 150 facilities, including accommodation and food facilities, travel agencies for inspecting the quality of services.

At the end of the Forum successful companies of the tourism sector were awarded in 17 nominations. The winner companies were determined as part of the Mystic Visitor project, as well as by inquiry of Georgian based travel agencies and estimations of users of BOOKING. COM and Trip Adviser booking companies.

Magnolia 2015 Forum will be held every year to stimulate the sector participant companies and individuals. This year has recorded a growing inflow of tourists to the Region, Archil Khabadze said.

“The tourism sector is our top priority direction. This sector has brought positive results. This year has recorded a growing inflow of tourists.

The number of countries where we have carried out AD campaigns and from where we attract foreign tourists has increased to 11 ones from 7.

We provide intense efforts to improve the quality of tourism services and introduce new services.

Consequently, the annual award ceremony will stimulate the sector players and employees. Forum Magnolia 2015 will be held every year with the aim to improve the service standards in the tourism sector in the Ajara Region”, Archil Khabadze said.

At the event the projects of Recommended by the Tourism Department and the TrainingConsulting Center were introduced. The projects will be implemented starting 2016. The projects were introduced by Mamia Berdzenishvili, the chairman of the Ajara Tourism and Resorts Department.

“We expect the number of nominated companies will increase in the future. Moreover, we have updated the forum guests on the projects that the department will implement in the region for improving the service quality starting 2016”, Mamia Berdzenishvili said.

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AGL

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December 28, 2015 #21

The Shuakhevi HPP construction is currently in its main phase. The project will be complete in a year and Georgia will have a power station capable of generating 187 MW of clean power. Power produced by the plant will be supplied to the Georgian population during the winter months. During the summer when there is a surplus of power generation in Georgia, electricity will be exported to Turkey.

Construction of the Shuakhevi HPP is managed by the project’s deputy director, Mr. JOSH GERARD.

AGL WILL COMPLETE CONSTRUCTION OF SHUAKHEVI HPP IN A YEAR 63% of the Construction Work is Already Complete SHUAKHEVI HPP: • INVESTMENT - 416 MILLION USD; • INSTALLED CAPACITY OF 187 MW; • POWER GENERATION STARTING DATE – 2017; • AVERAGE PRODUCTION - 450 GIGAWATT HOURS (GWH).

- Mr. Gerard, what is the current state of the Shuakhevi HPP construction?

- We have made a lot of progress in project construction. As you are aware, the Shuakhevi Hydropower Plant is one of the largest investments in Georgia’s infrastructure.

Construction of the Shuakhevi HPP is currently 63% complete in terms of civil work, 68% complete in terms of electrical/ mechanical work and 63% complete for the overall project.

The estimated completion date for the Shuakhevi power house is the first quarter of 2017 inclusive of commissioning both units (turbines and generators).

- The tunnels through which the Shuakhevi HPP cascades will be connected are, in total, 38 km long. What is the progress of tunnel construction? What difficulties do you face during the construction process?

- Before we started the project, we conducted many surveys and studies. Based on these studies we were aware of all the potential difficulties we might face and were ready to deal with these challenges. The project is being constructed by the team of professionals, and there are no difficulties which they cannot solve. For the current phase, 72% of the work is complete.

I think that our main challenge is safety. It is important that the project be carried out with maximum consideration for all safety concerns.

There are very strict safety rules in place for each construction site, and these are strictly followed

by employees and visitors. I consider this to be our main challenge during the construction of not only tunnels, but also of dams and the power house. Safety is our main priority.

- What benefits will construction of the Shuakhevi HPP bring to Georgia?

- First of all I would like to talk about the construction process.

650 Georgian citizens, most of whom live in the mountains of Adjara, are employed in both the project construction and in the many social projects which we are conducting.

The project has created new jobs – and many people have gained valuable experience in the process. As a result, the Georgian labour market will have new professional staff after the project is complete. We are also implementing a number of social projects whose aim is to help the longterm development of mountainous Adjara. These include a number of infrastructure projects, such as road construction, school and kindergarten facilities and water system rehabilitation. In addition, were are conducting a variety of educational projects and are helping people who live in the area develop small businesses. We try to stand by and support every person living in the project area, and it is very important for us that all of them feel that their quality of life has improved.

Also, after the Shuakhevi HPP starts producing electricity, Georgia will have a power station capable of producing more than 187 MW of clean power. Power produced by the plant will be supplied to the Georgian population during the

winter months and exported to Turkey during the summer months when there is a surplus of electricity in Georgia.

At the same time it is important to mention that, since we are building property, we are paying property taxes which go towards local municipal budgets. We have already paid approximately 3 million Georgian lari in property taxes, and this amount will only increase after construction is complete. In doing so, we are helping to contribute to the financial prosperity of the municipalities where our plants will be located.

- This is the first hydro project which you are implementing in Georgia. What is it like working with Georgian colleagues?

- Working with Georgian colleagues has been very interesting, and it has been a pleasure both for myself and for the other foreign staff to work with them. I have worked in many countries, but never have I met such warm and hospitable people.

All of the Georgian colleagues that I work with on a daily basis are true professionals.

Their contribution to the

successful completion of the Shuakhevi HPP project has been extremely important in terms of bringing the project to its current state of development.

I would also like to mention that I actively follow developments in Georgian current events and often meet and talk with people from different generations. From this I can see that this country is clearly on a path to development. Georgia is developing fast and the younger generations expect a better future for their country.

- 2016 is coming soon. This will be the most significant year yet for your project. What are your expectations? Do you expect any special difficulties during the final phase of the project construction?

- Construction is progressing rapidly and soon the Shuakhevi HPP will be added to Georgia’s power generating resources. I think 2015 was a successful year and would like to thank each person for the huge contribution that they made towards the completion of the project.

December 28, 2015 #21

INTERVIEW ajara business week

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ARCHIL KHABADZE: AJARA HAS ATTRACTED 521 MILLION USD INVESTMENTS FOR BUILDING HYDRO POWER PLANTS Archil Khabadze: The Year of 2015 has Largely Contributed to Popularizing the Region’s Investment Potential

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he Ajara government chairman is content with the Region’s macroeconomic achievements in 2015. All indicators are growing, including GDP, employment, budget payments, investment inflows, business sector output, Khabadze noted.

-How would you characterize the outgoing year? What challenges had the Ajara government to overcome in 2015?

- In 2015, after the privatization deals, we started major investment projects with the aim to boost the region’s economic growth and the tourism sector development.

Namely, Alliance ltd has started constructing a 100-suite hotel. The complex will be operated by Marriott international brand. The investor will put at least 30 million GEL in the project implementation; JSC Metro Atlas Georgia is constructing a hotel with at least 200 suites and a casino. The project’s investment value is 20 million USD. AR Meridians is constructing a hotel with at least 220 suites, a residential complex with 600 apartments, a casino, a conference hall, a sports and fitness complex, various food outlets. The project is estimated at least 30 million USD. This year we have developed the Heroes Alley project that creates a good opportunity for starting new constructions and attracting new investments.

At this stage, we have already privatized three land plots worth 31 million USD. This year we opened Goderdzi Ski Resort. Both domestic and foreign visitors are able to enjoy the existing tourism infrastructure. We have also chosen a football stadium construction project and the building works will start in 2016.

Our government has commenced elaborating the Batumi Boulevard development concept. For the first time in its history, the boulevard will have a development plan. The new document calls for outlining the Boulevard development perspectives and strategy. The boulevard development will be carried out in compliance with the Florence Charter.

The construction of multi-profile hospital in Batumi is a genuinely important project. The medical facility with 170 beds. The new hospital with modern technologies and inventories will provide ultramodern services for patients. The hospital’s supposed investment value is 27 855 955 GEL. The multifunctional hospital construction works will end in spring 2018.

-Is the Ajara Government Chairman content with the Region’s macroeconomic parameters?

- Macroeconomic parameters such as total added value, employment, revenue taxes paid to the state budget, investments, the business sector’s production volume are growing and this factor points to positive tendencies in the region’s economic development.

In January to September 2015, the autonomous republic’s budget collected more than 122 million GEL revenue taxes.

The figure has increased by 23% compared to the same period of 2014 and by 41% compared to 2012. The growth in revenue tax payments to the autonomous budget points to increasing employment in the Region.

Total added value exceeds 1.798 million GEL, up 47% compared to 2008. The business sector’s production volume in 2014 increased by 25% compared to 2013.

According to the January to September statistics, private direct investment inflows have increased by 42% compared to the same period of 2014 and marked 260 million USD, in which foreign investments constitute 80%.

According to the information of GeoStat, the national statistics service of Georgia, the 2014 employment level increased by 9.8% compared to the same period of 2013 and by 22.3% compared to 2012.

-As to the investment inflows, how much will the 2015 indicators differ 2014 report? Which business sector was the most attractive for making investments in 2015?

- The investment inflows in the January to September period have increased by 76.5 million USD (up 42%) compared to the same period of 2014.

The energy and tourism sectors occupy the leading positions in total investment inflows with 39% and 35% respectively.

It should be also noted the investment inflows are growing in the energy sector for the last several years. In previous years, the tourism sector and housing industry kept leader positions in the investment portfolio, but this year the power sector has advanced positions and we definitely welcome this tendency.

At this stage, 520 980 845 USD investments have been made in constructing hydro power plants in the Ajara Region.

The construction of new HPPs is of crucial importance for not only attracting investments, but for also creating new job places. The HPP sector is one of the major employment sources in the Region.

Currently, this segment employs more than 1800 persons and this is a very impressive figure.

-The Ajara Government and the chamber of commerce have organized three business forums.

Do you think you have done your best in 2015 in his direction? Are you content with the Region’s investment policy? Do you have plans for carrying our more aggressive policy and increasing the quality in this direction?

-The current year was very important in terms of popularizing the Region’s investment potential.

The Ajara government has organized business forums both in Georgia and abroad. The last business forum was held in Belarus, where face-to-face meetings were held with Belarus investors. At the meeting, we invited them to Ajara to introduce the Region’s investment environment to our partners.

All similar meetings with investors stimulate a commencement of new investment projects in the Region.

It should be noted we permanently update our foreign partners in the target countries on the Ajara Region’s investment potential. These efforts always reap fruitful results and our foreign partners show growing interest in our region.

In 2014, the Ajara Finance and Economy Ministry hold the first international investment forum.

Moreover, in 2014-2015 the Ministry organized investment forums in five foreign countries (Azerbaijan Ukraine, Kazakhstan, Turkey, Belarus) and four investment forums in Georgia. In 2016, we will carry out more active and efficient campaigns for popularizing our investment potential.

-The Ajara Government has fulfilled the 2015 privatization plan, but there were several attractive assets and their auction failed. Why? Do you think the lack of information has brought such a result?

- The football stadium project was one of the important undertakings in 2015.

We have carried out very zealous and multilateral working process prior to developing the project.

We promised our society that Batumi would have a valuable football stadium and we have started fulfilling this promise.

At the first stage, we selected the stadium project by competition. A special commission of 22 members gave preference to a Spanish company project, taking into account various criteria, but the chosen company failed to fulfill the agreement conditions. Namely, the company failed to submit a geological conclusion. The company was given the law-determined period in addition, but the company could not submit the geological conclusion again.

Therefore, we annulled the agreement. When the company fails the first step, the implementation of such a large-scale project becomes questionable and we could not take such a risk.

At this stage, we have selected another very good project for the new stadium. We have already selected a specific place and Batumi will have a football stadium with 20 000 seats.

-Besides the ongoing HPP construction projects, do you conduct negotiations on building additional power facilities? If so, what generation should we expect to receive for the coming 5 years from this direction?

-The budget’s capital projects are planned on the ground of the relevant design estimates. Consequently, it takes into account similar changes.

-Tourism sector is one of the priority directions in Ajara. What activities do you plan to implement for attracting more tourists to the Region?

- The tourism sector is the Ajara Region’s genuinely important field that makes much contribution to the region’s economy. The Ajara tourism and resorts department is carrying out various marketing and PR campaigns for attracting more tourists to the Region. Namely, the department participates in international tourism exhibitions and fairs, implements AD campaigns on the target markets, carries out powerful online marketing.

In 2016, the department will more expand the Region’s promo campaigns. The scales of PR/marketing campaigns grow in all countries, where the department was positioning in 2015. We are also diversifying the target markets. The next year we will enter the Russian market that is one of the major users of tourism products. _The Ajara Government deserves genuine appreciation, because the Ajara tourism sector is implementing many influential projects that are not even considered in other part of the country.

The region is a genuinely leader in this respect. Anyway, the service quality remains the region’s major challenge. What is the solution?

-To improve the service quality the Ajara tourism and resorts department has set up a consultingtraining center to assist the companies in the tourism service segment in improving their services in the most relevant and problematic directions.

Moreover, in 2016 the Department will commence the project called as The Recommended. The project calls for determining travel facilities, based on assessments of mystic visitors and other criteria,

especially, the service quality level. The selected facilities will receive status – Recommended by the Tourism Department. The facilities with this status will enjoy more public trust and client devotion.

This factor will stimulate other facilities to improve the service quality and become “Recommend”.

-The National Bank president has recently made a statement that the inflation will see its peak in the first half of 2016. Have you envisaged this forecast in the budget planning process?

What are your forecasts in terms of financial sta bility in the Region?

--The budget’s capital projects are planned on the ground of the relevant design estimates. Consequently, it takes into account similar changes.

The Ajara Autonomous Republic’s budget is replenished by revenue taxes and privatization proceeds. In 2016 the privatization process will be intensified and the region’s financial stability will strengthen.

Moreover, the region’s municipalities will receive the largest ever capital transfers totaling 65 655 000 GEL. -What are the Ajara Government plans and priorities in 2016?

-The Ajara autonomous republic’s budget, as well as the central state budget, is oriented on social programs. The 2016 budget exceeds the 2012 budget by 116 941.7 GEL and by 48 245.2 million GEL compared to 2015.

Our priority is to care for people, improve their being. In 2016 budget allocations for the Ministry of Labor, Health and Social Protection will increase by 1 388 400 GEL, while another priority direction in the face of the Ministry of Education, Culture and Sports will receive 4 374 100 GEL more allocations.

This signifies more students will be financed, more secondary schools will be rehabilitated, interesting cultural programs and sports competitions will be held. Financial allocations for marketing campaigns will increase y 1 million GEL. The Government has successfully implemented government programs in 2015. I believe the year of 2016 will be more interesting and fruitful for our Region.

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INTERVIEW ajara business week

December 28, 2015 #21

AJARA IS GEORGIA’S SECOND BIGGEST EMPLOYER REGION Avtandil Beridze: Central and Regional Authorities Put Maximum Efforts in Drawing Foreign Investments to Ajara Region

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ew multifunctional hotel-residential complexes such as Metro Atlas Georgia, Babylon, Prince Hotel and Porta Tower will launch operation in Batumi in the near future”. Total amount of private direct investments made up 260 million USD in Ajara in 2015. The figure has already reached 300-310 million USD, the Ajara Government chairman Avtandil Beridze said. We expect 100 percent growth compared to the 2012 indicator, when the region drew only 152 million USD private direct investments.

“The region’s budget revenues grow that constituted 129 million GEL in January to September 2015, up 26% compared to the same period of 2014, when the private direct investments in Ajara marked 276 million USD, including 55% foreign direct investments.

In the first half of 2015 investments grew by 44% year on year and marked 165 million USD. The private sector’s investments in economic sectors are as follows: Power System – 39% Tourism – 35% Housing Sector – 19%.

The private sector has invested 207.4 million USD foreign investments in the Ajara Region, of which 49% were made in the power system and 39% in the tourism sector.

The ratio of Batumi in total investments portfolio is 61%. AS to the sectors, the tourism is leader with 41%, the power and building sectors share second and third positions. Turkey, Norway and India are major investors.

According to the 1H15 report, Turkey is major investment contributor to the Ajara Region, Avtandil Beridze said.

“Major investor countries are: Turkey (40%), Norway/India (36%) and Austria (9%). Investment inflows have increased by 125.2% compared to the same period of 2012 (up 144.5 million USD). The budget has increased by 76.9% compared to the same period of 2013 (up 113 million USD), while the budget has increased by 42% compared to the same period of 2014 (up 76.5 million USD). Turkish investors have opened hotel Leogrand, the International University Clinic and University, citrus packing and processing enterprise, textile, construction materials enterprisers.

New multifunctional hotel-residential complexes of Metro Atlas Georgia, Babylon, Prince Hotel and Porta Tower will soon launch operation in Batumi. The Turkish investments are developing the housing sector. It is of vital importance for us to promote domestic and foreign investors and protect their interests. Consequently, investment and real estate purchase conditions are equal for them.

The central and regional authorities put maximum efforts in drawing foreign investments to the Ajara Region and developing the regional economic growth, creating new job places and developing the infrastructure.

The Ajara Region is the most urban zone in Georgia and it ranks second in terms of employment indicator. The region’s budget revenues also grow. In January to September 2015 the Region’s budget revenues marked 139 million GEL, up 26% compared to the same period of 2014.

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DAVID BALADZE: GROWTH IS EVIDENT IN 2015. WE PLAN TO INCREASE CURRENT INDICATORES IN 2016 David Baladze: Ajara Government Efficiently Manages Autonomous Republic’s Property

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avid Baladze, the Finance and Economy Minister of the Autonomous Republic of Ajara: “The year of 2015 is not over yet. Consequently, the 2015 macroeconomic parameters are not famous yet.

Anyway, the existing statistics proves the current year was positive. We have overcome many challenges in 2015 thanks to our tireless efforts and we have maintained the existing development paces.

According to GeoStat, the national statistics service of Georgia, the main indicators of the Ajara business sector in the 2nd quarter of 2015 show that the turnover, the output and the employment indicators have considerably increased compared to the same period of 2014.

The employment indicator in the Region has increased by 9.8% compared to the same period of 2013, while the figure has increased by 22.3% compared to the same period of 2012. The number of employees in the business sector in the second quarter of 2015 has risen by 15.1% compared to the second quarter of 2014.

As to the investment inflows in 2015, the growth is evident and we hope in 2016 we will improve the current achievements. The Ajara Government provides zealous job to draw new investments. We hold active meetings with potential investors in Georgia and abroad. The 2015 indicators have considerably increased compared to the 2014 indicators.

The January to September investments rose by 76.5 million USD (up 42%) compared to the same period of 2014.

The energy and tourism sectors are leading directions with 39% and 35% ratios in total investments portfolio, respectively. The January to September investment inflows considerably surpass the same periods of 2014, 2013. 2012.

Namely: The January to September indicators have increased by 125% (up 144.5 million USD) compared to the same period of 2012.

The January to September indicators have increased by 76.9% (up 113 million USD) compared to the same period of 2013.

The January to September indicators have increased by 42% (up 76.5 million USD) compared to the same period of 2014.

The Ajara Government takes active steps for efficient management of the autonomous republic’s property. As of November 1, 2015 the Ajara Finance and Economy Ministry has privatized 87 properties and their privatization

value marked 19 820 000 GEL. The capital revenues to the autonomous budget made up 12 393 000 GEL. This is a serious amount if we recall that the 2015 plan was 10 million GEL. Iт 2015 to 2017, under the assumed liabilities, the privatization deals are expected to bring 24 520 000 GEL. As of November 1, 2015 the autonomous budget is expected to receive the due 6 242 400 GEL in 2015.

As to leasing, as of November 1, 2015 the Ajara Finance and Economy Ministry leased 38 properties and total leasing value marked 230 000 GEL. As of November 1, 2015 the leasing fee marked 600 000 GEL (including the leasing fees of the previous years). As of November 1, 2015 the leasing fee from the leased property marked 123 000 GEL. The Ajara Finance and Economy Ministry issues mineral extraction licenses. To ensure the process transparency and equal rights to each participant, in 2013, we introduced digital auctions. The collected funds from issued licenses is transferred to the republican budget.

In January to September 2015 the licensing department of the Finance and Economy Ministry of Ajara issued 44 mineral extraction licenses by auction. The collected amount of 940 000 GEL was transferred to the autonomous republic’s budget.

In 2014 the autonomous budget collected 1 118 300 GEL from sold mineral extraction licenses. The figure was up by 448 300 GEL compared to the previous year.

The 2013 collected funds from auctions exceeded the 2011 indicators by 150%.

We have promised our citizens that Batumi would have a valuable stadium and we have already started fulfilling this promise.

We have already selected the company that will construct the stadium under the project of

Turkish LLC BAHADIR KUL ARCHITECTS. The UEFA standard stadium will be able to receive 20 000 fans. The football stadium will also host various events and competitions in the tourism city. Commercial outlets will be arranged under the tribunes and this factor will develop the adjacent territory.

The first stage of the stadium construction works will be financed by 12 984 000 GEL (preparation of projection documents and the first stage construction works).

For many years, our city has the problem of barracks. Miserable structures used to create misappropriate environment in such an interesting tourism city as Batumi. To create valuable and safe residential environment, the Ajara Government and Batumi City Hall have developed a project to replace the existing barracks by new residential buildings.

I am glad all misappropriate structures will be removed in the city and the living conditions of our population will be improved. Moreover, the infrastructure will be brought in order in the tourism city and new job places will be created.

Currently, we are constructing three residential buildings in Batumi. Total investments value of the project is about 9 million GEL. New apartments will be handed over to 17 families that currently live in barracks. The Ajara Government will always promote the implementation of similar important projects in the Region.

The Ajara Government provides guarantees to the finance organization. The guarantee amount is 20 million USD. At the same time, the new residential spaces that are handed over to our residents exceed the existing space by 1.5 times on average.

The Ajara Government has developed this program jointly with Batumi City Hall for creating healthy and safe residential environment in the city. Bank of Georgia has showed interest in

the project implementation.

The 2015 budget was making focus on social projects like all three previous years. We aim to adjust each program to the need of the region residents, first. We allocate due funds for constructing social houses every year and hand them over to socially vulnerable families. Moreover, our budget finances many other social projects. As to the budget parameters: According to the 3Q15 report, the autonomous republic’s budget was fulfilled by 117% and made up 144 810 500 GEL. The state budget revenues without the grant component marked 139 264 200 GEL in the reporting period.

The 3Q15 indicators exceed the 3Q12 indicators by 44% (up 4 279 168.6 GEL).

The 3Q15 revenues have increased by 28 596.7 thousand GEL compared to the same period of 2014 (110.667.5 thousand GEL).

The Social House project should be emphasized separately. The Ajara Government cares for the socially vulnerable families in the Region.

Our objective is to accommodate all unsheltered families. The Social Houses construction program is a success and in 2013-2015, we have transmitted apartments to 184 families. We have constructed 236 apartments at this stage.

We have constructed: A 116-apartment social house in Batumi; A 54-apartment social house in Shuakhevi A 54-apartment social house in Keda.

A 12-apartment social house in Keda.

At this stage, we are constructing: A 50-apartment social house in Khelvachauri 72-apartment social house in Khulo 54-apartment social house in Batumi Social House will include 176 apartments. In 2013-2015, we handed over new apartments to 209 eco-migrants as part of various programs.

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December 28, 2015 #21

UKRAINOCHKA IN BATUMI

Taste Genuine Ukrainian Dishes

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estaurant Ukrainochka - a Batumibased comfortable and romantic place that enables friends to meet and spend pleasant evenings together, as well as to celebrate remarkable events.

Ukrainochka is located in the center of Batumi and is one of the best restaurants in the city.

In the near future, restaurant Ukrainochka will host clients in the Batumi Central, on King Tamar Avenue.

The Ukrainian hospitality, polite and hearty staff dressed in the Ukrainian national clothes and traditional Ukrainian dishes will make unforgettable impression on you. The interior with Ukrainian design elements makes our guests feel

themselves in Ukraine.

Tatiana Stanislavskaya, a manager at the restaurant Ukrainochka: “The menu at our restaurant is special because of it universal character, as the chef follows the best traditions of the Georgian and Ukrainian cuisines. A team of professionals is united around one idea – making your visits as much comfortable, high-quality and unforgettable as possible.

Distinguished and experienced Georgian and Ukrainian chefs will meet you at our restaurant and they will host you with various yummy dishes. Our team cares for creating joyful and pleasant mood to our guests.

-When was the restaurant unveiled and

how many persons do you employ?

- The restaurant opened in 2010 and shortly it attracted the must interest of various visitors in the city. Since then we have introduced many interesting services for our devoted clients. We often invite various Ukrainian bands to make our restaurant more attractive. Currently the restaurant employs about 50 persons.

-Who are the restaurant visitors and do they like this environment?

-Georgian citizens are who mainly visit our restaurant. They traditionally gather at Ukrainochka meet each other here. Turkish citizens also visit our restaurant and they like our dishes and services very much. Ukrainian citizens and Eu-

ropean guests also enjoy our restaurant services and we are grateful to them for their devotion and appreciation.

- How would you appraise the past season?

Have tourists showed much interest in the restaurant services?

-The season was quite successful. We have hosted a great number of tourists and we expect their number will increase at the new restaurant.

Restaurant Ukrainochka in Batumi invites you to spend your time in comfortable environment and admire the beautiful views to the sea, taste Ukrainian and Georgian yummy dishes.

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TOURISM ajara business week

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MAMUKA BERDZENISHVILI: THE 2016 MAIN CHALLENGE CONSISTS IN IMPROVING SERVICE QUALITY

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amuka Berdzenishvili, the head of the Ajara Tourism and Resorts Department, positively appraises the 2015 results. Amid the existing political and economic factors in the target markets, the Region has managed to maintain the status-quo. The 2016 main challenge consists in improving the service quality in the Ajara tourism sector, developing various new products and conducting purposeful and high-quality AD and PR campaigns. In 2016, the Department will develop certain analytical information to supply it to the tourism industry.

Mamuka Berdzenishvili, the head of the tourism and resorts department of the Autonomous Republic of Ajara: The January to November period has recorded a 3% year on year upturn. We think this is a satisfactory result, taking into account the current political and economic realities in our neighboring counties and the target markets, from where we attract tourists. The Ajara Region has maintained a status-quo and we consider this is a real success in this situation.

We should also remember that in 2015 we kept making statistics due to the hotel sector workload. This practice will change in 2016. The hotel sector statistics that include information on both domestic and international visitors prove that the Region has achieved a 3% growth. It is also a logic factor that the ratio of foreign visitors in the hotel accommodation segment is 75%.

-What is the private sector’s position?

-These indicators should be satisfactory for the private sector, because they have maintained the 2014 workload in 2015. Thus, they have fulfilled their minimum plans in 2015.

-What challenges has the Ajara Tourism and Resorts Department faced in 2015 and how adequately have to responded to these challenges?

-The main challenges that exist in the industry concern not only the current year, but refer to several years, because the problems are of complex character and these problems, naturally, do not refer to this or that specific year. All these challenges were relevant in 2012, 2013, 2014, 2015 years and will be relevant in 2016 and 2017 years too.

First of all, we should deal with invaluable hospitality problems, i.e. low service quality that, finally, makes the price misappropriate to the quality and the tourists discontent grows. There-

fore, we consider the service quality improvement to be the major challenge.

-Has the GEL depreciation declined the tourist inflows to Georgia?

- I cannot name precise figures, but we can suppose, based on our everyday relations with the industry, that

this year the region visitors have spent slightly less money compared to the previous years because of the dominating economic realities. This signifies tourists were trying to avoid taking extra costs. This year the region visitors have demonstrated lower solvency compared to the previous years.

I repeat that this statistics is unofficial and is based on the information received through our relations with the private sector.

- Do you think the Ajara Region can attract the so-called Turkish segment of Russian tourists amid the recent global political developments?

- Having diversified the tourism markets, we marked the Russian Federation as the tenth target market.

This decision reflects the very current geopolitical realities.

Russian tourists are not welcomed any more in western countries and they consider Georgia one of the most important tourism destinations.

We have already allocated due budget and starting January 2016 we will launch PR campaigns in the Russia market. We want to use the current geopolitical realities in our interests.

-What are your plans and challenges in 2016?

-The 2016 main challenge consists in improving the service quality. To this end, we will implement several projects, including the program – Recommended by the Ajara Tourism Department. This program calls for introducing a quality sign that will be conferred to the hotels and restaurants satisfying minimum criteria and standards. This program will guaran-

tee minimum standards of security, service quality for our guests. On the other hand, we are sure this process will bring inspiring and stimulating effects too.

To improve the service quality, we have set up a special training-consulting center with the support of the International Cooperation and Development Foundation of Germany. The ex-

pert selected by this organization will guide the training modules. We will conduct trainings on weekly basis and they will make focus on the detected and exposed shortcomings. We will introduce brief training courses adapted to the market challenges. We will also develop a social calendar with a schedule of trainings for which anybody will be able to pass registration. Furthermore, this training center will provide consulting services that imply free consultations for any beginner businesspersons in the hotel and restaurant business sectors.

Our objective is to implement the so-called promo program and offer our marketing campaigns and budget to tour operators that perform charter flights from the target markets. We will offer them to employ our advertising campaigns in their own interests.

We have included additional elements in our PR campaigns for 2016. For example, we will hold the Ajara tourism days in four target markets – Poland, Israel, Kazakhstan and Belarus. These events call for exposing the region’s tourism potential through integrating culture elements in the promo campaigns. _You plan to introduce the so-called Discount Cards for tourists so as the visitors enjoy lower tariffs at certain facilities. Will you introduce this card in the market in 2016?

-We keep working on the card’s project. This year we prepared a pilot version. Our tourism agency was reorganized in this process and transformed into the tourism products development agency. The discount card’s project has gone to this agency. Consequently, many details will be revised. The card will unite a number of various products, including rural tourism products. We want this discount card to cover the whole region.

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PUBLICITY ajara business week

December 28, 2015 #21

December 28, 2015 #21

GUIDE ajara business week

DIPLOMATIC MISSIONS IN BATUMI: • Azerbaijan - 14 Dumbadze street; t.: 0 422 27 67 00 • Estonia - 60 Gorgasali street; t.: 0 422 27 09 10 • Turkey - 9 Ninoshvili street; t.: 0 422 25 58 00 • Iran - 83 Parnavaz Mepe street; t.: 0 422 22 86 01, 0 422 22 86 02 • Armenia - 32 Gogebashvili street; t.: 0 422 21 63 02

New Year Events In The Hotels and Restaaurants Especially for New Year Ajara Region offers a lot of events in the open air, which can be seen in the following link: Enjoy the New Year 2016 in Batumi. In addition to these measures, hotels and restaurants offer guests a variety of entertainment programs.

Information about New Year’s events in the hotels and restaurants is available below: 19 DECEMBER ► Restaurant Gaudi • Live music, entertainment program, competitions and gifts, Christmas cake.

24 DECEMBER ► Restaurant Gaudi • Live music, entertainment program, competitions and gifts, Christmas cake.

25 DECEMBER ► Hotel Hilton Batumi • Christmas Day lunch: 13: 00-16: 00 - Restaurant Pelion - gifts from Santa, tattoo, clown • Breakfast with Santa: 07: 00-11: 00 - Restaurant Pelion • Christmas dinner in restaurant Pelion: 19: 00-23: 00 - Live Music ► Restaurant Lizarran • Band Atina & BekBekson and Latino American dances 30 DECEMBER ► Hotel Hilton Batumi • New Year’s preparations in Nephele Sky Bar (Beer Festival): 22: 00-02: 00 - Nephele Sky bar, live music 31 DECEMBER ► Hotel Hilton Batumi • New Year’s Eve in restaurant Pelion: 21: 00-02: 00 - Restaurant Pelion • New Year’s feast with Berdia, “Tamada” and showman of the evening: 22: 00-04: 00 Rustaveli banquet hall, a band and a DJ, entertainment program with prizes and competitions • New Year’s Eve in Nephele Sky Bar: 22:00 - Live Music ► Sheraton Batumi • 23:00 - festive dinner with a special surprises, Sopho Khalvashi and DJ BENE and Band ► XS Galaxy - Hotel Leogrand • 23: 00-00: 30 Dj Bene (Boom Boom Beach Resident) • 00: 30-03: 00 Ksenia kamikaza (Platz Für Tanz - Riga, Latvia) • 03: 00-06: 00 SECRET GUEST • 23:00 - Famous Turkish singer Linet and entertaining show

► Coliseum Hotel Marina • Unforgettable New Year in Hotel “Coliseum Marina”: Santa and a lots of surprises ► Radisson Blu • Battle of the DJ’s: 22: 00-04: 00 - Gala Dinner in “Clouds” Bar-Restaurant, wine and alcoholic beverages, great prizes • Battle of the Bands: from night till morning, Welcome “Ecstasy” cocktail, alcoholic beverages, open bar cocktail, Party- accessories ► Restaurant lizarran • A Spanish-Georgian show program with prizes and competitions In the evening ► Hotel Georgia Palace • 23: 45-23: 00 - a festive dinner, Band “Black Sea” Live Performance ► Hotel Intourist Palace • Dancer girls from Ukraine “Go Go Dancer” with a lots of surprises and competitions, the main prize three pass for 2 persons in Istanbul’s 5 star hotel, music: Dj’s / Lasha & Babba Genre: Disco / House ► Grand Grill Restaurant • 20:00 - Live music performed by artists from Turkey ► Restaurant Old Boulevard • 23:30 - Vaja Tughushi Live ► Town Grill Restaurant • 23:00 - 05:00 - Singers: Nini Badurashvili and Iago Devadze. New Year’s Eve show will be leaded by Tatia Suluashvili and Tamuna Lekveishvili. There will be an exclusive track by the Band “Mamali Kalebi” (Comedy Show- s) Performance ► Restaurant BK • 23:00 - Ensemble Metekhi & DJ, Evening Host Ninaka Gelashvili and many surprises ► Piazza Batumi • Restaurant La Brioche: 23:00 - Live music performance - DJ NUGO • The Quiet Woman Pub: 23:00 - Live music - Georgian group Asea Sool 2 January ► Hotel Hilton Batumi • “Bedoba” in Nephele Sky Bar: 22: 00-02: 00 - Live Music

AJARA TOURIST INFORMATION CENTRES: • Batumi boulevard information centre - 2, Ninoshvili str.; m.: 577 90 90 91; t.: 0 422 29 44 12; w.h.: 09:00-22:00 (Everyday) • Batumi cable-way information centre Gogebashvili street; m.: 577 90 90 93; t.: 0 422 29 44 10; w.h.: 24/7 • Batumi airport information centre - 220, Airport highway; t.: 0 422 29 44 14; w.h.: according to flights schedule • Sarpi information centre - Sarpi Customs; mob: 577 90 90 72; w.h.: 09:00-21:00 (Everyday) • Kobuleti information centre - 642 Aghmashenebeli street; tel: 0 422 29 44 13; w.h.: 09:00-20:00 (Everyday) • Keda information centre - Aghmashenebeli street; w.h.: 09:00-19:00 (In summer) • Shuakhevi information centre - 22 Rustaveli street; w.h.: 09:00-19:00 (In summer) • Khulo information centre 29 M. Abashidze street; w.h.: 09:00-19:00 (In summer) SIGHTSEEING AND CULTURE BATUMI CIRCUS - 13 Services: Parking, Toilet The staff speaks: Georgian, English, Russian Prices; Discounts are available CONTACT • Mob.: 599 68 02 23 PUPPET AND YOUTH STATE THEATRE - 13 Working hours: 10:00-17:00 Services: Parking, Toilet The staff speaks: Georgian, English, Russian Prices; Ticket: 2 Gel Discounts are available CONTACT • Tel.: 0 422 27 62 34 • Mob.: 599 40 45 38 • E-Mail: info@puppet-show.org • CINEMA APOLLO - 13 • Working hours: 12:00-00:00 • Services: Credit cards accepted, Free Wi-Fi, Exhibitions, Cafe, Toilet • The staff speaks: Georgian, English, Russian • Prices • Ticket: 6-10 Gel • Tel.: 0 422 22 72 27 BATUMI BOTANICAL GARDEN - 13 Working hours: 09:30-18:00 Services: Credit cards accepted, Free Wi-Fi, Exhibitions, Guide service, Cafe, Information board, Parking, Toilet The staff speaks: Georgian, English, Russian, German Prices Ticket: 8 Gel Guide service: 30 Gel Discounts are available • Tel.: 0 422 29 49 29 • Mob.: 577 10 16 07 • E-Mail: info@bbg.ge AJARA KHARITON AKHVLEDIANI STATE MUSEUM - 13 Working hours: 10:00-17:00 Services: Free Wi-Fi, Exhibitions, Guide service, Information board, Parking, Toilet The staff speaks: Georgian, Russian Prices Ticket: 2 Gel Guide service: 5 Gel Discounts are available • Tel.: 0 422 27 11 75 AJARA STATE ART MUSEUM - 13 Working hours: 10:00-18:00

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Services: Exhibitions, Guide service, Information board The staff speaks: Georgian, English, Russian Prices Ticket: 2 Gel Guide service: Free Discounts are available • Tel.: 0 422 27 38 94 BATUMI ARCHEOLOGICAL MUSEUM Working hours: 10:00-18:00 Services: Exhibitions, Guide service, Information board The staff speaks: Georgian, Russian Prices Discounts are available • Tel.: 0 422 27 65 64 • Mob.: 599 15 41 50 THE NOBEL BROTHERS BATUMI TECHNOLOGICAL MUSEUM Working hours: 10:00-18:00 Services: Exhibitions, Guide service, Information board, Parking The staff speaks: Georgian, Russian Prices Ticket: 3 Gel Guide service: 5 Gel Discounts are available • Mob.: 599 43 03 68 DANCING FOUNTAINS Working hours: 20:00-00:00 Services: Parking • PricesTel.: 0 422 27 88 08 • E-Mail: info@boulevard.ge Ticket: Free BATUMI ILIA CHAVCHAVADZE STATE DRAMA THEATRE Working hours: CLOSED until late June / early July 2015 Services: Parking for around 15 cars. Accessible for disabled people with 10 wheelchair spaces. Toilets (but not accessible). No theatre bar or restaurant but plenty of bars and restaurants nearby.

The staff speaks: Georgian, Russian, English, Turkish • Tel.: 0 422 27 06 14 • Mob.: 555 36 63 99 • E-Mail: info@batumitheatre.ge BATUMI SUMMER THEATRE Batumi Summer Theatre is located in a central part of Batumi Boulevard and is designed for concerts and other entertainment events. An architecturallyunique wooden building is adorned with wooden ornaments and features a ceiling painted in imitation of the sky. The Summer Theatre has a long history. It was renovated in 2013 and has operated since then.

• Tel.: 0 422 29 45 24 Adress: Batumi boulevard BATUMI ART CENTER Working hours: 10:30-22:00 Services: Exhibitions, Parking, Toilet, Café, Concerts, Performances, Opera, Traditional Georgian Folk Song and Dance, Orchestra Performances The staff speaks: Georgian, English, Russian, Turkish, French Tel.: 0 422 27 62 40 • Mob.: 555 37 75 99 • E-Mail: info@muscenter.ge ZOO Working hours: 11:00-19:00 (Except for Monday) Services: Parking, Toilet The staff speaks: Georgian, English, Russian el.: 0 422 22 17 30 • E-Mail: office@parkbatumi.ge CONTEMPORARY ART SPACE Working hours: 11:00-19:00 (Except Monday) The staff speaks: Georgian, English, Russian • E-Mail: batumiartspace@gmail.com Working hours: 11:00-20:00 The staff speaks: Georgian, English, Russian Prices:Free entrance • Tel.: 0 422 27 97 00 RUSUDAN PETVIASHVILI ART CAFE-GALLERY Working hours: 11:00-24:00 The staff speaks: Georgian, English, Russian • Mob.: 599 74 52 23

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PUBLICITY ajara business week

December 28, 2015 #21