AJARA BUSINESS WEEK #5

DISTRIBUTED FREE OF CHARGE

BUSINESS WEEK Partner News Agency WWW.ABW.GE ajara business week

August 10, 2015 #5

August 10, 2015, Issue 5

AJARA1

BE INFORMED, DO BUSINESS IN AJARA

T

wo new casinos opened in Batumi in June. The third one will open in August.

Earlier-registered 6 casinos have been honestly paying taxes to the budget. Moreover, the government has obliged various companies to open 8 additional casinos and several other companies also plan to unveil new casinos by their own initiative. All these efforts signify at least 20 casinos will operate in Batumi in 2-3 years.

Will the city of Batumi with 160 000 residents become the center of casinos? What a threat may the casinos business pose to Batumi?

Pg. 5

More Than Three mln International Guests Visited Georgia in 2015

A

n increase in visitor numbers was reflected in latest statistics, which showed the country enjoyed increased number of visitors in July 2015. Latest data from the Information-Analytical Department of the Ministry of Internal Affairs showed in July this year the number of visitors to the country was 9.5

GEORGIA

Georgia should Restrict Imports of Juices Containing Unhealthy Concentrates Pg. 4 TURKEY

Low-cost Turkish Carrier Pegasus sees 10 pct rise in Passenger Traffic Pg. 9

AZERBAIJAN

Azerbaijan Allocates $60 mln in Subsidies to Farmers Pg. 9

WORLD

Putin’s Answer to Sanctions Pg. 9

percent higher than in the same month in 2014.

In the second quarter of 2015 number of international arrivals in Georgia equaled 1 345 937, percentage increase 8% over the same period of the last year. The largest share of international arrivals was registered from the neighbouring countries. In the 2nd quarter of 2015 number of international arrivals from these countries was 1

175 583, which is 87% of the total international arrivals. The largest share of visitors, 85% arrived in Georgia by land transport. In the second quarter this number was 1 141 466 international arrivals. The number of accommodation units registered in the database of the Georgian National Tourism Administration was 1 420, while number of bed places 48 996.

Batumi to Host Batumi 2015 International Investments Forum

O

n September 18-19 the Batumi 2015 international investment forum will be held in Batumi by the initiative of the Autonomous Republic of Ajara and the National Investment Agency of Georgia.

The region’s leading companies and specialists will attend the event to receive information

on Georgia’s future opportunities in the tourism and real estate sectors and on the ongoing investment projects. The forum will make focus on the Ajara Region’s investment opportunities, the investment environment of Georgia and business commencement procedures, financed projects, government’s investment offers and the region’s successful companies.

Pg. 8

New Residential Buildings to Replace Barracks in Batumi

N

ew residential buildings will be constructed in Batumi to replace the old barracks. LLC Batumi Building company will implement the project as part of the program called as New Residential Buildings in Batumi instead of Barracks. The project is an estimated

1.5 million USD. The 12-floor building will include 73 apartments. The project will employ 50 persons. The company has already dismantled three buildings on 789 square meters. Families have been paid 127 500 USD in compensations.

The new residential building will include a 1 090 square meter residential space.

Pg. 4

Archil Khabadze: Ajara Region’s Total Investments Portfolio Accounts for 1 754 500 000 USD

Pg. 3

Giorgi Chogovadze: Four Months Record Rise in Visitors Inflows Pg. 7 Temur Gamtsemlidze: “This Amount will Increase to 100-120 million USD by the time of Unveiling the Hotel Complex”

Pg. 6

Irakli Gogolishvili: Anagi Development Company Reported to Be Implementing 15 Various Projects in 2015

Pg. 4

GOVERNMENT

2 MAIN EVENTS

Chinese Delegation Pays Two-day Visit to Ajara

JULY INFLATION RECORDS 31 MONTHS’ MAXIMUM

A

nnual inflation has been accelerated up to 4,9%, despite the monthly deflation in July.

According to “Sakstat”, annual inflation in July is on the maximum of 31 months.

The analysis of consumer market has shown, that price reduction of 0,8% has been fixed on food-staff and non-alcohol beverages in July comparing to June, vegetable and greens have been decreased in price by 9,2%, fruit and grape – 11,6%, while dairy products and egg – by 2,7%, however cost on fat has been increased by 1,4%.

BATUMI WILL HOST THE FIRST WINE FESTIVAL

B

atumi will host the first wine festival. The first wine festival – Wine Weekend Batumi 2015 is organized by “regional winemakers guild” and will be held on August 9 and August 29 in Batumi Boulevard, near colonnade at 17:00 till late night. In frames of Wine Weekend Batumi 2015,up to 100 different types, colors and ages of the wine, alcohol and other beverages will be produced by large and small cellars pitcher.

AZERBAIJANIAN BUSINESSMEN ARE INTERESTED IN BATUMI

A

zerbaijanian Export and Investment Foundation “AZPROMO” invites business people to the Investment forum.Information is spread by Azerbaijanian media. For instance, investors will gather in September 4-5.

As “vzglyad.az” writes, in 2014 foreign direct investment volume was 1 billion 272 million dollars, which is 39% more compared to 2013.

According to the publication, in 2014, Azerbaijan’s share of 302 million portfolio. Azerbaijan in Georgia is on the third place by the volume of investments, ahead of China and thus lower than Netherlands.

D

elegation of Republic of China is in Ajara. During the visit members of the delegation met the Chairman of Ajara AR Government Archil Khabadze, Minister of Fi-

T

oday Shuamtoba was celebrated in mountainous Ajara. Traditionally inhabitants of mountains gather and celebrate the beginning of summer’s last month ob first weekend of August in Khulo Municipality resort “Beshumi”. On this day Ajarians from all over the Georgia come to see their relatives, who come to their mountain houses for three months.

Today, as usually, together with Chairman of Ajara AR Government Prime-Minister Irakli Garibashvili visited Khulo. Prime-Minister Irakli

B

y July 1, Adjara is the leader among the regions by crediting volume with 29,9%-share (H1/2014 – 26,5%).

Total portfolio amounts to 3,857 billion GEL (H1/2014 – 2,914 billion). Currency loans (1,775 billion GEL) increased by 49%. However, 32% is exchange rate effect and 17% - real growth.

CHINA-CAUCASUS-EUROPE TRANSPORTATION CORRIDOR IMPROVEMENT UNDERWAY

T

rans-Caspian transport route is already opened and has great potential of development. Azerbaijan received first test train sent from China on Monday.

It is expected that the next train, which will bring cargo from China to Turkey via Georgia, will be sent in September.

SOCIALLY VULNERABLE FAMILIES TO RECEIVE ELECTRICITY SUBSIDIES

T

he government will refund part of the cost of consumed electricity to the socially vulnerable families, whose rating score is less or does not exceed 70 000.

The government’s decree “on partial subsidies of consumed electricity cost to the socially vulnerable families” has entered under the force.

The participants talked about different issues on the meeting. The visitors showed great interest of the region, especially in terms of tourism and agriculture. The delegation members also expressed interest in deepening relations between Ajara Region and Dzilin Province. Chinese delegation discussed partnership with Ministry of Economy and Finance.

As Davit Saganelidze says, they talked about railway infrastructure and future collaboration with Batumi Maritime Academy. Soon Representatives of Ministry of Agriculture of Ajara will visit China to deepen the partnership and exchange the experience. The officials of Ajara AR will attend different international tourism and economic exhibitions.

Garibashvili arrived to the celebration with Bishop of Skhalta Diocene Spiridon Abuladze and Mufti of West Georgia Beglar Kamashidze. Officials of Ajara AR also attended the event.

“The main thing is to stay together and do that, what will be helpful for our village, region and country. Only with common work we can achieve the aim and receive the desired result. I am proud that Khulo is region of Ajara.” – said Archil Khabadze after the celebration.

Shuamtoba celebration in Khulo ended with fireworks.

Archil Khabadze Meets Turkish Cooperation and Coordination Agency

D

AJARA IS LEADER IN TERMS OF CREDITING VOLUME

nance and Economy of region Davit Baladze and Minister of Agriculture Zaur Putkaradze. Chairman of Ajara AR Government Archil Khabadze met the guests in the airport.

The delegation includes: Bin Yue – Ambassador of China in Georgia, Chivei Wang – Chairman of Foreign Affairs Bureau of Dzilin Province, Huehua Zhao – Deputy General Director of First International Department of China Communist Party, Huadzun Ing – Head of the office of Communist Party in Dzilin Province, Tsinsien Su – Third Secretary of Communist Party of Dzilin Province, member of 18th committee of China Communist Party and Lan Iao – third Secretary of 6th Inthernational Department of Central Committee of China Communist Party.

Feast “Shuamtoba” Celebrated in Mountainous Ajara

DAR BUILDING TO DEVELOP BATUMI’S TOURISM INFRASTRUCTURE AR BUILDING company will develop the tourism infrastructure on the territory of the Heroes Alley in Batumi.

DAR BUILDING has won a repeated auction announced by the Ajara Finance and Economy Ministry and bought a 2925 square meter nonagricultural land plot by term auction at 463 GEL. The property is located at Pirsomani Street 5/ Tb. Abuseridze Street 15.

August 10, 2015 #5

ajara business week

A

rchil Khabadze met Turkish Cooperation and Coordination Agency. Minister of Health and Social Care Nugzar Surmanidze attended the meeting. Sides discussed projects realized by the Agency and Ajara region and future projects.

Turkish Cooperation and Coordination Agency is planning to rehabilitate Batumi Infectious Diseases Hospital. In 2015 the topic of rehabilitation of Batumi Infectious Pathology, AIDS and Tuberculosis Regional Center or building the new hospital was discussed. As the representatives of Agency say, the work on the project is in process. The final agreement on this issue was reached during the visit of Chairman of Ajara AR Government Archil Khabadze and Minister of Health and Social Care Nugzar Surmanidze in Tukey in January, 2015. Sides also talked about trainings of Batumi Republican Clinical Hospital staff in Turkey.

“TIKA” supports 140 countries in different directions. At this stage, Agency implements

about 2000 projects. Mainly this projects cover people’s needs, especially in educational and health care spheres. For us Agency is one of the donor organizations, as well as other our partner organizations”, - says Archil Khabadze.

In 2010-2011 TIKA rehabilitated and equipped polyclinics of Keda, Khulo and Shuakhevi. Totally about one million gel was spend on this project; in 2010 Agency participated in trainings of medical staff of preventive medical institutions of Ajara. In 2012-2013 rehabilitation centre for people with disabilities was fully rehabilitated and equipped; in 2013 Agency built and equipped First Aid Point in village Tskhemlari; in 2015 Batumi Rehabilitation Center for People with Disabilities was opened.

Natural Disaster Victim Children to Rest in Batumi

W

ith the initiative of Chairman of Ajara AR Government Archil Khabadze and organization of Ministry of Health and Social Care children from the disaster affected families visited Batumi today. Archil Khabadze visited the children on the first day of their arrival and observed their living conditions.

19 children, whose age is from 10 to 15, together with 8 parents have already arrived in Batumi. Children will rest in Batumi and pass

rehabilitation course from 3June, 30 to August, 15. The camp style conditions will be organized for them in rehabilitation centre “Tana”. The children were sent-off by Deputy Mayor Irakli Lekvinadze, Chairman of faction “Georgian Dream – Democratic Georgia” Rima Beradze and Deputy Minister of Health and Social Care of Ajara Zurab Tenieshvili. Security Service sees off the bus to provide children’s safety.

According to schedule, children will begin their morning with encouraging exercises. During

15 days they will participate in different cultural, sport and educational events. Excursions in Botanical Garden, Local History Museum, Art Museum and Gonio Fortress are planned. Children will attend the dolphins show, concert in Batumi Summer Theatre and Batumi Musical Center will walk in Batumi New and Old Boulvards, Parks of Youth, will observe night Batumi, mountainous Ajara, will visit amusement park “Tsitsinatela”.

Children will be provided with four meals a day and other necessary living conditions.

New Cultural Space in Batumi

T

he new stage of Batumi State Ilia Chavchavadze Drama Theatre was officially opened. The new stage was opened by premier of Liliana Cavani’s “Night Porter” stage version.

Chairman of Ajara AR Government and ministers

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

attended the premier. Specially, for the premier, held on new stage, Minister of Culture Mikheil Giorgadze arrived in Batumi. He congratulated the troupe and wished them success. The new stage, situated in 32 Melashvili Street, will be new alternative space not only for drama theatre troupe, but

also for theatre lovers. By the decision of Ajara AR Government,240 000 laris were allocated from the budget to build the small stage. According to the project one floor building was constructed with the hall for around 100 people. Works were fulfilled by company LDT “GTI 2007”.

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

INTERVIEW

August 10, 2015 #5

3

ajara business week

Ajara Region’s Total Investments Portfolio Accounts for 1 754 500 000 USD The gambling business enjoys special preferences in the Ajara Region. Investors are exempted from license fees if they construct a 100-suite hotel in Batumi, Kobuleti and Khelvachauri.

ARCHIL KHABADZE, the Ajara government chairman, talks about the major projects implemented since 2012, the efforts the local government takes to draw new investors and several other interesting issues.

- How would you assess the business sector’s performance in the Ajara Region? How favorable environment does the local government provide to foreign investors?

- Flexible business and investment environment is provided for both domestic and foreign investors in the Ajara Region and across the whole country.

The favorable taxation system and liberal trade policy ensures convenient environment for the business sector.

Special terms run for the gambling business in Ajara. Investors are exempted from license fees if they construct 100-suite hotels in Batumi, Kobuleti and Khelvachauri. The Ajara Finance and Economy Ministry is actively working to draw new investors.

We hold business forums, prepare information materials about the Region’s investment potential in English, Russian and Georgian languages; Foreign investors take qualified consultations from professional experts and receive required information. We remain open to any offer. We meet with both beginner and acting investors. We provide equal and unbiased conditions to all investors. We equally promote each of them. As a result, the investment inflows have increased in the first quarter of 2015. Private direct investments of 76.4 million USD were made in the Ajara Autonomous Republic., including 59.1 million USD foreign direct investments (FDI) and 17.3 million USD domestic private direct investments.

The private direct investments in the first quarter of 2015 exceeded the year on year indicator by 41%.

The ratio of economic sectors in the private direct investments in the Ajara Autonomous Republic is as follows: tourism sector – 39%, power sector – 39% and housing sector – 19%.

- What are the efforts you, as the Ajara Region’s leader, take to bolster the small and medium business sectors? It is important to promote enterprises, develop regional markets, grow incomes of citizens and introduce micro business promotion programs in such a vulnerable region as Ajara.

- I do not agree Ajara is a vulnerable region in terms of business-economy issues. Growing economic processes are permanently supported here as our region represents frontier-transit zone. The government has been carrying out the small and medium tourism business promotion programs for the second year. A total of 25 enterprises have enjoyed the program benefits.

Liberty Bank has issued 1 401 800 GEL preferential loans, while state

financial support constituted 56 048 GEL starting September 2014. The program is being still continued.

Agriculture sector support programs are being implemented in the Region and in 2013-2015 farmers have received various agriculture machines through the co-financing mechanism, including: 917 multifunctional motor blocks and 77 trailer carts, 61 movable garden sprinkler systems. All five municipalities of the Region have issued more than 3 million elite virusfree plants of tomato, Bulgarian pepper, cucumber and eggplant. Farmers received fruits plants (12 000 plants of American Nut, 20 000 units of filbert, 4 000 units of mandarin, 7 500 plants of persimmon, 15 750 plants of bilberry and 5 000 plants of Kiwi).

In all five municipalities farmers have received 350 units of simple greenhouse constructions. As a result, local farmers have launched small businesses. Beekeeping is also widespread small business trade in Ajara. We have transmitted modern two-stage hives of polystyrene material to beekeepers and 130 honey squeezing machines.

We have been also promoting the milk production. In this respect farmers and agro businessmen have received 500 units of milk mechanic separators and 50 units of butter production facilities.

We have carried out parasites-disease identification works in 50 farms across the region throughout the year.

We have developed respective recommendations. We have explored 5 500 patterns of the local soil and the ministry has delivered defecats to the municipalities for improving the soil conditions.

In 2015 farmers will receive 250 units of 50 square meter greenhouses as part of the planned subprograms, as well as 4 units of 200 square meter strawberry greenhouses along with polyethylene constructions, , 2-ton irrigation barrels, drip irrigation tubes, water pumps, organic fertilizer BioHumus, high-quality seedlings of strawberry and refrigerator chambers, 125 units of fruits and vegetables facilities, 87 units of high-production Jersey milk cows. In autumn we will also issue 23 000 plants of filbert, 10 500 plants of bilberry and 10 100 plants of nuts.

The local business incubator provides consultations to beginner and acting service companies in terms of various legal services and developing business projects.

The commerce promotion center that was created on the basis of

the business incubator has provided trainings for over 2000 listeners on the following topics: Imports and Exports; logistics; taxation; accountancy, marketing and management grounds; business automation; We have placed these training courses in the form of video lessons on our official website.

More than 36 companies have passed the business incubator programs since 2009, of which 21 ones have successfully overcome the incubation period.

Namely, enterprisers have set up their businesses and implemented them successfully. Nine of them continue operation.

We continue working on the small and medium business sector development.

In the future, we plan to introduce more interesting programs, because we prefer to teach our population how to catch fish than to just hand over fish to them.

- There are many suspended construction projects in the Region. Do you plan to introduce new regulations to oblige the owners of the assets to finish the construction works?

- I do not agree there are suspended construction projects in the Region. The implementation of infrastructural projects is in active phase in Ajara and this process is noticeable in the city. Our government has continued many development projects that had been suspended because of fines.

When property transition agreement is signed with an investor with concrete obligations, naturally, we prioritize these schedules and terms be met timely and qualitatively. Our objective is to prevent suspension of projects that hamper the city development and damages its appearance. Therefore, the investors who face certain problems for outer reasons in the part of fulfillment of obligations and there are due proofs, we take into account these mitigating circumstances and extend the deadlines and schedules.

Several major projects have been implemented in Ajara since 2012.

The new boulevard has become the center of various development projects for the last 2 years.

The investors’ interest grows every day in this territory, while in previous years this territory was absolutely useless in terms of investment projects. In Several years our city will have one of the most active urban zones with arranged infrastructure in the form of the New Boulevard. Among major projects I would name a 90 million USD project that Metro City company is implementing in the New Boulevard. The project of LLC Metro Atlas Georgia consists of a 13-floor hotel complex and 594 apartments in 3 buildings. The project calls for employing 1500 persons and it is of

crucial importance in terms of employment problem resolution.

Besides the Metro City project, two new investments projects worth of 50 million USD are underway in the New Boulevard. LLC Metro Atlas Georgia will build a 22-suite hotel, while LLC AR Meridians will construct a 200 apartment building. The world’s famous brands will carry out management of the finished hotels.

Both projects will employ more than 800 local residents.

I would like to mention the projects that started after 2012. LLC Alliance is implementing a 30 million GEL investment project to construct a 100-suite hotel. Rekan Group Georgia is also implementing a 50 million USD project. LLC Mega Palace is carrying out a 6 million USD investment project. LLC Orbi Group is implementing several projects simultaneously. Recently the investor has started construction of the Orbi Beach Tower hotel with an investment value of 40 million USD.

The Region’s total investment portfolio accounts for 1 754 500 000 USD. In 2015-2020 investment projects of 1 251 800 000 USD will be implemented, while this year projects of 366 200 000 USD will be carried out.

- Ajara’s highland zone provides the best conditions for the tourism business development. What concrete projects will be implemented in this direction?

- I have always insisted that thanks to its geographical characteristics, landscape and variety of nature, Ajara would raise the interest of not only seaside tourists, but also ski resorts visitors. My persuasion deepened for the last years. I frequently visit highland villages to monitor the ongoing works. The Ajara’s nature provides the best opportunity for the ecotourism development. The village tourism and medical tourism directions also contain huge potential. We have already prepared a village tourism development strategy and we will implement this concept stage by stage. At this stage a special attention is paid to the wine tourism and birds supervision tourism.

We have developed digital and print versions of the ecotourism map to enable visitors to independently plan tours to picturesque places of the highland Ajara.

The map indicates all the tourism routes that the Ajara Tourism Department has marked in terms of accommodation places, food assets and culture sights.

Ajara actively participates in tourism exhibitions in various countries.

We provide comprehensive information on the highland Ajara tourism routes to the foreign visitors, who apply to the tourism information center.

Lately, I visited the Goderdzi ski resort by the Shuamtoba Fest. The ropeway works valuably and the infrastructure arrangement will be finished in the near future. I was said travel agencies have already starting tours to the Goderdzi ski resort, but the intensity is still low, because there is a lack of accommodation places in the Goderdzi hotel.

In the near future the Ajara Region will officially introduce its own ski resort of Goderdzi with yearlong services with nearby summer resort of Beshumi.

Visitors will get to the Goderdzi ski resort in two hours from Batumi.

In 2016 we will also launch rehabilitation of the Khulo-GoderdziAkhaltsikhe motorway to alleviate transportation and locomotion in this direction. The motorway arrangement will accelerate the infrastructure development issues and local residents will earn higher incomes. The Goderdzi ski resort will officially receive first visitors at the end of 2015.

The Government is about finishing main infrastructural projects at the ski resort. In 2016 the investment environment will reach the conditions, when the ski resort will be able to host about 3 500 visitors simultaneously. Foreign specialists highly appraise the quality of the Goderdzi Pass snow and skiing conditions are maintained till May there. Long winter and unique nature at 2025 meter above the sea level is unusual for many European ski resorts. We have launched negotiations with various investors to make a full use of this potential. We want to choose the best variant and project.

Negotiations are underway.

Giorgi Siradze

4

SMALL BUSINESS ajara business week

August 10, 2015 #5

Anagi Development Company Georgia should Restrict Reported to Be Implementing Imports of Juices Containing 15 Various Projects in 2015 Unhealthy Concentrates Anagi is one of the few development companies that are implementing projects both in the capital city and regions. The company plans to carry out several new important projects in 2015 too. Anagi director general IRAKLI GOGOLISHVILI talks about the company performance and activities.

- With a 25-year history of operation your company is implementing projects in both the capital city and regions. What is the way the company has passed? When did Anagi enter the market and from where has the company launched operation?

-Anagi was founded in Ajara in 1989 as a cooperative. The company had to take first steps and establish first economic and market relations in the Soviet Space.

The 1990s brought difficulties with business registration issues. Anagi made focus on establishing healthy and valuable business relations in the existing chaotic bank and taxation systems and this was a motivation for the future success and development. Today, we have an entirely dif-

ferent reality.

- Anagi holds branches in Tbilisi and Batumi. Did your company launch operation in Batumi and later moved to Tbilisi?

- For many years the company used to operate in Batumi. Later, the company started receiving orders from various cities (Kutaisi, Zugdidi, Senaki, Aspindza). Having inaugurated many and major projects in Tbilisi, we realized Anagi was to move to the capital city to provide more comfort services to clients and tighten control over the assets.

- As to your projects, what projects have you implemented in Ajara and what projects are you implementing currently?

- We have implemented many projects in Ajara such as Batumi Opera, Piazza hotel, Georgian Palace Hotel in Kobuleti. We have recently finished the Hilton hotel construction in Batumi.

- How would you appraise the development sector’s performance in the Region? Is this sector profitable in the Ajara Region?

- The development sector is being quickly developed in the Region. Many famous brands have launched operation in Ajara and the business environment advancement has created more reliable and stable environment for investors.

- What are the company’s future plans?

What new projects will Anagi implement in the future?

- Currently, Anagi is implementing 15 projects, including a trade-entertainment center in Tbilisi on the airport highway, M2 on Nutsubidze and Tamaratshvili Streets, State Chancellery building in Tbilisi and so on. We will also commence several new interesting projects in the near future. Continuous development with a focus on quality and modern standards is a fundamental plan of Anagi company.

Batumi-based Citro company manufacturers juices through direct squeezing of natural fruits.

The company competes with such giants as Sandora, Parmalat, Santal and other domestic and foreign companies that basically manufacture juices from concentrates.

The Ajara Business Week (ABW) has interviewed Citro director GIA METREVELI on the sales volumes, the Georgian consumers’ preferences between prices and quality and several other interesting issues.

- Initially, we are interested in a brief description of your company. What kind of products do you manufacture and what makes your products special compared to competitor companies?

- We produce healthy juices from natural fruits through direct pressure without concentrates. Our production is based on seasonal principle. In winter we produce citrus juices – orange, mandarin, grapefruit. In summer we produce juices of various fruits such as cherry, cornel, peach, bilberry and so on. We manufacture juices from almost all fruits that grow in Georgia. We use only Georgian raw materials. We squeeze out juice on seasonal basis, then we bottle juice and sell the final products throughout the year.

- How expensive is the juice production from natural fruits? Do you manage to compete with concentrates-containing juice products that are widely imported to the country?

- Our competitor companies make juices from concentrates and their production expenditures are lower. Therefore, we also try to maintain low tariffs. Our products are 10 times better, but we try to keep as low prices as possible.

Additional problem is that raw materials in Georgia vary in prices every year and we cannot change juice prices in line with the raw material prices. Therefore, we try to maintain the same prices and frequently, we have to maximally cut our profits.

- What are the current challenges before the company? What should be corrected and improved in the market?

- Today our major challenge is related to sales. Indeed, we are smaller company compared to Sandora and Santal, but we manufacture higher-quality product and ecologically cleaner

products from natural fruits. Regretfully, we cannot provide respective AD campaigns for our products. Therefore, the clients are not informed which products are better: juices from concentrates or our products that are directly squeezed out form natural fruits. The consumers have no information on the difference and consider all juice products to be of the same quality.

- What should be done to popularize highquality natural products so as consumers do not pay regard to lower prices?

- Our population should receive corresponding information that imported juices such as Santal, Sandora and so on are made of unhealthy concentrates, while we manufacture our juices from natural fruits and raw materials. Almost all imported juices are made of concentrates.

Public awareness should increase and imports of juices from unhealthy concentrates should be restricted, even more so, even concentrates differ in quality. Various companies use various volume of concentrates in their juice production. The ratio of concentrates in imported juices range from 10% to 90% and they are unhealthy products.

Therefore, our consumers should be provided with respective information.

- Despite the current problems, how do you manage to sell your products and do you export your products abroad?

- In Georgia only LIVO company buys and sells our products. As to our exports, we export our products to Russia, Ukraine and various other markets. In the near future we will enter the Polish market too. In foreign countries there is higher public and consumers appreciate natural products. Currently, we have no problems with exports of our products.

New Residential Buildings to Irma Inashvili: “We Try to Replace Barracks in Batumi Convince Farmers of Modern Systems’ Efficiency”

N

ew residential buildings will be constructed in Batumi to replace the old barracks. LLC Batumi Building company will implement the project as part of the program called as New Residential Buildings in Batumi instead of Barracks.

The project is an estimated 1.5 million USD. The 12-floor building will include 73 apartments.

The project will employ 50 persons. The company has already dismantled three buildings on 789 square meters. Families have been paid 127 500 USD in compensations. The new residential building will include a 1 090 square meter resi-

dential space. The construction works will end in 2017.

The Ajara government has developed the program jointly with Batumi City Hall for arranging a healthy and safe residential environment. The project calls for improving residential conditions of the residents, drawing investments and creating new job places, stimulating the construction business.

Experienced in implementing similar projects, Bank of Georgia has expressed interest in the project. Consequently, Bank of Georgia and the Ajara government have already signed a cooperation memorandum, the Ajara Finance and Economy Ministry says.

The project calls for removing amortized, useless, barrack-style buildings with unsatisfactory sanitation conditions that are located within the administrative borders of Batumi. The government of the Autonomous Republic of Ajara assumes mediation before the financial organization in behalf of an interested party. The mediation amount makes up 20 million USD. After the agreement between the interested party and the financial institution, the issue will be discussed by a special commission. New residential buildings will replace barracks in two other places in Batumi.

Several days ago Ajara Finance and Economy Minister David Baladze laid a foundation of a new residential building jointly with the company director Mamuka Merkviladze, Batumi vice mayor Bagrat Manvelidze and Bank of Georgia representative Archil Jankarashvili. The company director updated David Baladze on the construction project details.

S

ince 2010 Georgia’s Ministry of Agriculture and the International Fund for Agriculture Development (IFAD) have been carrying out the Agriculture Support Project (ASP).

The project’s goals are to end infrastructural problems and support farmers’ economic growth.

An important part of the project is the rehabilitation of irrigation systems and dealing with issues regarding irrigation water in various regions across Georgia. This will greatly contribute in developing local agriculture.

In order to improve the information given to farmers regarding the carried-out rehabilitation activities, as well as defining certain benefits, various Georgian regions saw workshops being held with local farmers. The workshops were led

by Irma Inashvili, an expert from the Georgian University, who noted while talking with CBW that due to Georgia’s natural climate conditions, programmed harvest cannot be yielded without proper ameliorating procedures (irrigation and drying), once again emphasizing the importance of their proper upkeep.

“Traditionally, surface-level self-streaming irrigation is most widespread in Georgia and requires certain care, since irrigation erosion may develop in the soil and lots of water can be lost due to filtration and vaporization, but Georgian farmers still prefer it due to cheapness. As for modern approaches, irrigation sprinklers are quite economic in terms of water usage, along with a cheaper and efficient alternative which is drip

irrigation, which is mainly used in hot and dry climates. While meeting with the farmers we try to convince them of modern systems’ efficiency and advice on which specific approach to use on certain territories,” noted Irma Inashvili.

According to her, from 1990 to 2011 the development of agricultural amelioration was practically halted and existing irrigation and drainage systems went out of order. “Due to the structural and organizational activities, as well as ongoing rehabilitation and technical exploitation programs, by 2013 it was possible to irrigate up to 56 thousand hectares of land in the amelioration sector, and 88-90 thousand in 2014, which is over thrice as much as the irrigated area index from 2012.” – noted Irma Inashvili.

The International Fund for Agriculture Development (IFAD) is one of the most generous donors in the agriculture sector. It has been financing various projects in Georgia since 1998.

Areas of activities are the Inner Kartli, MtskhetaMtianeti, and Samtskhe-Javakheti municipalities, where 6 irrigation systems were rehabilitated.

August 10, 2015 #5

T

wo new casinos opened in Batumi in June. The third one will open in August. Earlier-registered 6 casinos have been honestly paying taxes to the budget. Moreover, the government has obliged various companies to open 8 additional casinos and several other companies also plan to unveil new casinos by their own initiative. All these efforts signify at least 20 casinos will operate in Batumi in 2-3 years.

GAMBLING BUSINESS

5

ajara business week

Will the city of Batumi with 160 000 residents become the center of casinos? What a threat may the casinos business pose to Batumi?

The largest casino in the Caucasus - in these words the Leogrand hotel management appraises Leogrand casino that opened in Batumi last week.

“The hotel of Leogrand consists of 180 luxury apartments, 5 conference halls, an open terrace, a spa center, a night club and the big-

gest and most fashionable casino in the Caucasus”, the Leogrand hotel management’s statement reads. The casino of Leogrand holds 24 gambling tables, 280 gambling machines, a VIP salon on 500 square meters, two bars and a restaurant with international kitchen to serve the casino guests. Leogrand casino occupies 3 000 square meters on 3 floors.

Compared to the casino of Peace nearby the hotel of Sheraton, one of the first casinos

in Batumi with 20 gambling tables, Leogrand casino is genuinely impressive.

Besides Leogrand, last week casino Campione also opened in Batumi. The asset is smaller, but it is located in a building with special design. In August casino Austria will also open at the hotel of Hilton.

Moreover, TAM GEO (Babylon Tower), System Insaat, President Palace and Batumi Tower also plan to unveil casinos.

BATUMI – Paradise for Casino Business Benefits the Country Receives from Casinos

Casinos Business in Georgia

T

B

atumi residents were found unaware of how much casinos pay to the state budget a year. We have tried to obtain this information from public offices. According to unspecified calculations, the companies that own casinos in Batumi should have paid over 46 million GEL to the state budget for a year.

This year, according to the January to June report, the figure exceeds 31 million GEL. Presumably this year the state budget will mobilize a higher amount of revenues compared to the previous year. Indeed, this signifies Batumi is considered one of the favorable markets for casinos.

Shota Amiranashvili, one of the managers of Peace casino, also confirms this consideration.

“Along with opening new casinos, the number of visitors and clients also grows”, he said.

State budget revenues from casinos are not confined with only the mentioned figures.

Last year the gambling business paid 7 102 303 GEL duties, while across the country duties from casino tables marked 30 904 479 GEL for the last 16 months.

Besides duties on tables, casinos also pay license fees. For instance, last year license fees from Batumi based casinos made up 1,250 million GEL. This year the casinos have already paid 1.5 million GEL. It should be also noted last year only 5 casinos have paid license fees and three ones were exempted from this duty.

The state budget has collected 26 750 000 GEL from casino licenses (casinos located at 100suite hotels are exempted from license fees in Batumi, but casinos that are not located at 100-suite hotels pay 250 000 GEL annual license fee. In Tbilisi the license fee makes up 5 million GEL).

Casinos pay certain taxes to the municipal budget too. For example, in the January to June period duties from gambling tables to the Batumi municipal budget made up 2.667 million GEL. Duties from gambling machines made up 3 984 320 GEL. The figure exceeds the 2012 total duties.

Archil Vanadze, a head of the Batumi City Hall service of finances, noted before opening two new casinos, a total of 72 gambling tables and 949 gambling machines operated in Batumi. Under the law, a casino pays quarterly 18 000 GEL on a gambling table and 2 000 GEL on a gambling machine.

Casino as Business

A

ll of us have heard various stories how relatives, friends, neighbors, or just familiar persons have ruined their families – they have played and lost the

apartment.

Casinos are considered to be playing serious role in family misfortunes.

There are many legends and stories how Georgian citizens get impoverished from entertainment in casinos. According to certain considerations, Georgia practices the most liberal legislation on casino business and it should be tightened. For example, the age limit should be extended from 21 to 25 years old. Discussions started 3 years ago, but no practical steps have been taken yet.

Certain circles in Georgia, including, politicians agree with the opinion that casinos themselves should create the so-called black list of casino-addicted citizens to prevent them from entering gambling assets.

Casino-addicted citizens should be treated and healed like overdosed drug addicts.

Another group asserts Georgian citizens should be banned entering casinos, but more comfortable environment should be created for foreign citizens to draw more people to Georgia so as the country receive more profits and revenues. www.batumelebi.ge

urkish investments prevail – according to representatives of casinos, their clients mainly arrive from abroad. They visit Batumi casinos through charter flights, by train and even minibuses.

Many clients visit Georgian casinos from Turkey, Israel, Russia and Azerbaijan.

Shota Amiranashvili, assistant to the casino Peace executive director, agrees with this consideration: “96% of our clients are Turkish citizens, because we have the Turkish management and Turkish citizens always give preference to assets of their compatriots. We have also provided comfortable services to Turkish citizens starting from Turkish kitchen ending with Turkish-language staff.

Clients from Tbilisi and Azerbaijan visit our casino in only summer, while Batumi residents are not registered to our database at all, Shota Amiranashvili noted.

“Georgians would supposedly prefer casinos with Georgian atmosphere and environ-

ment”, Shota Amiranashvili noted.

As to the legislation, he agrees the law on gambling business is liberal. At the same time, Shota Amiranashvili objects to tightening the law. Our country cannot afford legal restrictions on casinos, he noted. Any restrictions will grow into nonsense and criminal situation will be aggravated, he said.

“The restriction will push the business into the underground sector and the number of criminal cases will increase. Casinos are banned in our neighborhood, except for Armenia, where this business is very weak, but we know what happens there”, Shota Amiranashvili pointed out.

The last period has recorded an appearance of digital casinos too. A total of 5 digital casinos are registered in Batumi. The digital casino license fee is 30 000 GEL. Casinos are banned in almost all neighboring countries. Therefore, residents of all these countries consider Georgia and Batumi as one of the favorite destinations on the map.

According to the Finance and Economy Ministry of the Autonomous Republic of Ajara, the following companies are obliged to open casinos in the near future:

Budget Payments by Taxpayers that Hold Casino Licenses in Batumi :

BUSINESS

6

August 10, 2015 #5

ajara business week

Palma Laguna Becomes Batumi’s Visiting Card Temur Gamtsemlidze: “This Amount will Increase to 100-120 million USD by the time of Unveiling the Hotel Complex” Therefore, the complex will include one outdoor and three indoor swimming pools.

The inaugurated aqua complex includes an outdoor swimming pool with sea water, a pavilion and an indoor gallery. All these factors enable to use the outdoor swimming pool in winter period too. The asset also includes a registry, recreation and sunbathing zones both around the swimming pool and at the open terrace of the pavilion. A bar, a food block, green recreation zone with eucalypts and palms function at the outdoor swimming pool and at the open terrace.

The multifunctional hotel and business center of Grand Hotel Batumi Black Sea has opened Palma Laguna aqua entertainment complex. Located on an 11 500 square meter space the apart-hotel includes 51 business-class residential apartments.

An outdoor swimming pool on 8 500 square meters is the first asset in Batumi that is filled by the seawater. GIMG director general Teimuraz Gamtsemlidze said similar investments are of vital importance for the region’s development.

In his interview to the Ajara Business Week (ABW), Teimuraz Gamtsemlidze appraises Ajara’s investment environment and talks about the future plans.

“

We have already spent about 63 million USD on the complex construction works.

”

This amount will rise to 100-120 million USD by the time of the new hotel complex inauguration. Under the investment obligations, the project will wholly employ 500 persons. The hotel complex will be put into exploitation in 2016.

From the very beginning we decided to rule out a seasonal character of the complex. The concept was developed to enable both domestic and foreign visitors to enjoy all services throughout the year for 24 hours, not only on season. There is no similar asset in Batumi yet. Our guests will not depend on the weather conditions in Batumi. We will provide overall conditions for recreation and entertainment. Both domestic and foreign visitors will be able to enjoy all services “under the same roof”. All projects will be based on this concept.

“

Moreover, the complex includes a hotel with 232 top class suites, luxury and business-class residential blocks,

”

a movie center with 10 multiplex halls and a multifunctional entertainment center. The complex includes both sports-recreational and entertainment infrastructure.

- Mr. Teimuraz, construction works are in active phase on the complex side. What are the future plans?

- Distinct segments of the complex are put into exploitation stage by stage. Nearly two years ago we changed the investment financing algorithm.

“

Total investments in this project will reach 120-130 million USD.

”

This is not a small amount. At this same time, this type of investments cannot be returned in several years. This is a long-term investment and consequently, we have made focus on developing a correct financial model that would determine economic efficiency and expediency priorities in the project. We have developed the so-called gradual development plan calling for gradual introduction of distinct parts of the complex and generating revenues from exploitation of these segments for full or partly financing of other segments. On the one hand, this approach sensibly alleviates the company’s credit liabilities and their service burden. On the other hand, we are able to supervise and detect what problems may arise when putting

this or that part of the complex into exploitation, what we should improve and so on…! Besides this stage, we have to finish two parts of the complex – a main part of the hotel and the entertainment center jointly with the multiplex.

- How many persons are employed by your company and these construction projects?

“

Since the commencement of the complex construction works, more than 3 000 persons were employed.

”

Currently, we have concluded agreements with four companies. The construction projects employ about 100 workers at the assets, besides the staff in our company.

- How would you appraise Ajara’s investment environment? Are the investments activities as intense as previously?

- There is no perfect investment environment somewhere. I think the existing situation has not changed in Georgia. Everything depends on many factors. It is unimaginable that the company having spent 60 million USD would continue operation in an unfavorable investments environment.

We have faced no obstacles in this respect.

As to the intensity of investments activities, I think this intensity has a little declined. But this does not signify the investment environment has worsened. The initial phase is always very active.

Next phases may record deceleration in activities, but the investment environment may be still attractive. There is nothing surprising. Intensity may increase and decrease and finally, it will fit the reality.

“

Investments inflows, indeed, were higher at the initial phase.

”

- What is the reason investors show lower activity today?

- This is a very sensible aspect. Investors thoroughly study the existing legislation and take the official statements very seriously. Initial statements such as plans for closing casinos frightened many investors. Visa regime restriction has

also made negative affect on investors’ decisions.

Many considerations and opinions have been expressed concerning these issues. To be frank, it was a strange statement as if Batumi is only a myth and nothing more. These statements have hampered some of the investors.

“

Initially, the development of Batumi was genuinely like myths, but I see nothing bad in this.

”

In practice, Singapore, Monte-Carlo, and other similar places were the similar myths. There were only stones and boulders there. I love Batumi very much, but there are bad climate conditions here, the seaside is stony and so on. Without myths nothing of these assets would have been constructed. Everything starts by myths and these myths are able to create values and change the environment and finally, form more attractive reality. Trust me investors can excellently calculate money. We just should trust in and work for this myth if we really love Batumi…!

- What should the government do to boost investments inflows to Georgia?

- The government has been long taking due steps. In general, the government’s involvement should be as less as possible. I do not mean this sector should be left without legislative regulations.

“

Administrative barriers should be just minimized.

”

The main thing is that the existing investment environment should enable investors to easily answer the question: why in Georgia and nowhere else? In this case Georgia will draw more and more investments. The less state interference in this sector, the better it is. Investors seek comfortable environment with minimized administrative barriers and other procedures. Investors realize very well economic risks and threats, but despite these factors they deliberately make investments, because they are sure the government will exert all efforts to protect their investments, new job places and all similar challenges.

Giorgi Siradze

August 10, 2015 #5

INFOGRAPHICS ajara business week

More Than Three mln International Guests Visited Georgia in 2015

A

n increase in visitor numbers was reflected in latest statistics, which showed the country enjoyed increased number of visitors in July 2015.

Latest data from the Information-Analytical Department of the Ministry of Internal Affairs showed in July this year the number of visitors to the country was 9.5 percent higher than in the same month in 2014.

In the second quarter of 2015 number of international arrivals in Georgia equaled 1 345 937, percentage increase 8% over the same period of the last year.

The largest share of international arrivals was registered from the neighbouring countries. In the 2nd quarter of 2015 number of international arrivals from these countries was 1 175 583, which is 87% of the total international arrivals. The largest share of visitors, 85% arrived in Georgia by land transport. In the second quarter this number was 1 141 466 international arrivals. The number of accommodation units registered in the database of the Georgian National Tourism Administration was 1 420, while number of bed places 48 996.

Turkey was a leader with the number of international arrivals. Data (2nd quarter, 2015) showed Turkey on a first place with 343 397 (-8%), data (first 6 months 2015) adds up to 605 153 (-9%).

The largest share of international arrivals was registered from neighbor countries. Number (2nd quarter, 2015) of international arrivals from these countries was 1 175 583, which is 87% of the total international arrivals. Data (first 6 months 2015) showed 2 072 257, which is 89% of the total international arrivals. Last year this share was 88%.

There was significant increase in number

of arrivals from Armenia, Russia and Azerbaijan. It is important to mention significant role of marketing campaigns administered by Georgian National Tourism Administration.

Data showed following quantitative increase in number of arrivals: Armenia +53 030 (+20%), Russia +49 457 (+29%), and Azerbaijan +29 110 (+11%). Significant increase was observed from Belarus (+2 010, +51%), caused by intensification of direct flights and marketing campaigns administered by Georgian National Tourism Administration. Data (first 6 months 2015) showed +2 759 (+47%) increase in number of international arrivals from Belarus.

Introduction of direct flights in the direction of United Arab Emirates and marketing activities administered by Georgian National Tourism Administration boosted number of arrivals from this country. The number of arrivals was 4 607, percentage increase of 788% over the same period of the last year. In 2015, 2nd quarter number of international arrivals from European Union was 63 443 (5% of total international arrivals). Respectively first 6 months numbers were 94 797 and 4% respectively.

Border Crossing Statistics In the 2nd quarter 2015, 85% (1 141 466) arrived in Georgia by land transport, followed by air transport, 184 412. The first 6 month figure was 2 002 103 arrivals by land, followed by air transport with 292 033 arrivals. The busiest border was Sarpi (Turkish border), which saw 336 665 crossings in the 2nd quarter 2015, and 583 222 crossings in the first 6 months.

In the 2nd quarter 2015 total number of accommodation units was 1 420, while number of bed places 48 996. Tbilibsi was the leader with the number of bed places; its share was 24%. Hotels dominate with the number of bed places, their share was 65%.

QUOTE

Giorgi Chogovadze: Four Months Record Rise in Visitors Inflows

T

he tourists’ inflows to Georgia are rising for the fourth month, Giorgi Chogovadze, head of the national tourism administration, told a news conference and updated reporters on foreign visitors’ activity in July.

A total of 737 696 visitors arrived in Georgia in July, up 9.5% compared to July 2014. Moreover, the number of tourists, who have stayed in Georgia for more than 24 hours, has increased by 2.2% year on year.

“The ongoing economic and political developments in the Region that have taken place in the second half of 2014 and at the beginning of 2015 have affected the whole economy of Geor-

gia, including the tourists’ inflows. The national tourism agency has carried out intense international activities to change this negative statistics.

We have carried out marketing campaigns in 9 countries and marketing campaigns at CNN and EuroNews. We have invited more than 300 reporters for covering Georgia’s tourism potential.

As a result, it is the fourth month since April the international tourists inflows is constantly growing”, Chogovadze noted. The growth in April marked 0.4%, May – 14.7%, June – 9.3% and July - 9.5%. As to the January to July report, the foreign visitors inflows have increased by 4.9% year on year, Chogovadze noted.

Transactions through international payments cards have also risen and this factor makes positive influence on foreign currency inflows too, Chogovadze added.

“The volume of transactions through international payment cards in April rose 47%, May – 43%, June – 24%. A major inflow of tourists in July 2015 was reported from Turkey, Azerbaijan, Armenia, Russia and Ukraine. The January to July report shows positive tendencies from the EU countries, including, growing inflows are reported from Lithuania, Czech Republic, Great Britain, Germany, Latvia and the Netherlands.

Kazakhstan, UAE and Saudi Arabia are also worth mentioning in terms of growth in visitors inflows”, Chogovadze said.

7

VARIOUS

8

ajara business week

August 10, 2015 #5

Batumi to Host Batumi 2015 Ajara Fulfills January to July International Investments Forum Consolidated Budget Plan by 26% Excess

O

n September 18-19 the Batumi 2015 international investment forum will be held in Batumi by the initiative of the Autonomous Republic of Ajara and the National Investment Agency of Georgia.

The region’s leading companies and specialists will attend the event to receive information

on Georgia’s future opportunities in the tourism and real estate sectors and on the ongoing investment projects.

The forum will make focus on the Ajara Region’s investment opportunities, the investment environment of Georgia and business commencement procedures, financed projects, government’s investment offers and the region’s successful companies.

The Batumi 2015 forum aims at popularizing Ajara as the best investment-making destination.

Representatives of the central and regional governments, foreign and domestic companies, various associations, the chamber of commerce and media companies and other interested parties will attend the international investment forum.

Ajara Region’s Hotel Sector will Acquire 2080 Additional Suites by 2016

T

he Ajara Region’s hotel sector will acquire 2080 additional suites by the end of 2015, the Tourism and Resorts Department of Ajara updated reporters at the introduction of the first half’s report.

The department head Mamuka Berdzenishvili introduced the report at Hilton hotel and updated reporters on results of AD campaigns

and PR activities in 10 countries, the first half’s performance in the tourism sector, new tourism products and services, innovations in the tourism sector’s growing industry.

According to the statistics, the number of visitors to the region rose by 2.02% in the first half of 2015. Growth tendency was recorded from Belarus (+7.9%), Lithuania (+3.1%), Russia and Israel (+2.3%; 2.3%) and so on.

T

he January to July consolidated budget plan has been fulfilled by 26% excess. The initial plan constituted 114 486 400 GEL, the fulfillment marked 143 828 300 GEL, that is 125.6%, the Ajara Finance and Economy Ministry says. According to the statistics, the revenues part of the January to July consolidated budget was fulfilled by 123%, the part of other revenues was fulfilled by 133.7%, while the part of nonfinancial assets was fulfilled by 140.1%.

As to the Ajara’s republican budget fulfillment, the January to July budget was fulfilled by 129.7%. The Ajara Finance and Economy Ministry says the January to July consolidated budget of Batumi self-government was fulfilled by 113.8%, the Kobuleti municipal budget was fulfilled by 142.3%, the Shuakhevi municipal budget was fulfilled by 165.8%, the Khulo municipal budget was fulfilled by 188.6%, the Khelvachauri budget was fulfilled by 99.3% and the Keda municipal budget was fulfilled by only 47.3%.

Ski Resorts Development Company to Take Goderdzi Pass in Management

T

he Goderdzi ski resort will be handed over to the Ski Resorts Development Company in management. The company head Sandro Onoprishvili told the Commersant news agency the ski resort was officially transmitted to the company on August 1. The Goderdzi Ski resort is a unique resort and our main objective is to make it one of the favorite ski resorts, Sandro Onoprishvili said and unveiled the future plans. The company will implement AD campaigns in several countries, take part in tourism exhibitions to popularize the

Nefele Sky Bar at Batumi

region’s ski resorts. The Tetnuldi Resorts construction works will end by 2016 and the company will accept the asset in management. A new master plan is being developed for the Gudauri resort too. The Kobi-Gudauri ropeway construction project is also under discussion. The ropeway will be constructed in 2016. This master plan will draw many investors to make investments in Gudauri and Bakuriani. The Ski Resorts Development Company also plans to install ski toboggan in Didveli. In Several years tourists inflows will sensibly increase, Sandro Onoprishvili concluded.

Ratatouille foodblog (http://ratatui.me/)

A

nother new bar opened this year: the Nefele Sky Bar on the 20th story of Hotel Hilton.

With a 300-degree circular view looking at the sea from one side and the Batumi park lake from the other, along with a huge terrace, tasteful music and a diverse range of cocktails – this is how one would shortly describe the bar.

I like the view a lot, where Hilton’s multicolored balcony-ridden building is flanked by the Dolphinarium, which in turn is flanked by various intertwined apartments. The sea and the lake are, obviously, far grander in terms of beauty, but this is the more memorable and authentic Batumi.

A bar is defined by the menu, the cocktails, the prices, and the service.

Because of the fact that the Nefele Sky Bar was already packed by 9 o’clock (at least the huge terrace area) and we only managed to find a seat in the inner hall, it’s safe to assume that this bar has already gained popularity in Batumi. Even when it’s raining or windy, which obviously is much more noticeable on high floors, it’s no trouble to simply throw a blanket around and not hurry away.

The menu boasts many exclusive, original cocktails, like the non-alcoholic Batumi Berry Breeze and Chachito. They stand alongside traditional and popular cocktails like the mojito, pina colada, margarita, and others.

Many snacks are available for ordering (along with a fantastic alternative of dining down on Hilton’s first floor at the Pelion restaurant).

Interesting offers exist for couples or friends: specially designed glasses in original shapes for sharing drinks between two or four people.

GENERAL OVERVIEW Prices: above average Cocktail range: diverse Service: fast, good What stands out: Fantastic view and environment Address: Batumi, Hilton Hotel, 20th floor

WORLD NEWS

August 10, 2015 #5

9

ajara business week

Putin’s Answer to Sanctions

Banned Western Food and Possible Embargo on Georgian Wine

R

ecently, Russia’s Ministry of Agriculture confirmed to Russian news agency RIA Novosti that the Ministry had started discussing a proposal to impose embargos for several countries, one of which was Georgia.

Russia has bulldozed illegally imported European cheese as the government started its campaign to ban Western food, From the countries that supported the EU’s sanctions that were imposed on Russia on July 31, 2014 in response to Russia’s involvement in the conflict in Ukraine that started in early 2014.

Putin plans for mass destruction of food imports that provoked outrage in a country, where poverty rates are soaring, due to this situation, Hundreds of thousands of Russians are petitioning against President Vladimir Putin’s decree to destroy food from the US, EU, Canada, Australia, and Norway.

However, the authorities are determined to press on with destroying illegal imports they consider “a security threat.” Russian TV showed a small mountain of illegally imported European cheese being bulldozed on Thursday while even before the official start, zealous workers threw boxes of European bacon into an incinerator.

Officials say the embargo will encourage Russian producers to fill the gap. Now the authorities are also proposing to limit imports of X-ray machines and defibrillators for hospitals, which are already complaining of poor equipment.

Meanwhile Russia’s Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) declared Georgian wine producers “constantly violate” safety regulations and Georgia’s monitoring agencies “do not control the production properly The volume of Georgian wine exported to Russia decreased by 63% in the first half of 2015,

Armenia to have Specialized Ruble hits 6-month Low Customs Against Major Houses Currencies

T

he Russian ruble plunged to a six-month low, hitting 64 against the US dollar and 70 against the euro during Thursday’s trade on the Moscow Exchange. Low crude prices are said to be the key driver of the ruble dive.

The Russian currency continued to follow sliding oil prices as Brent futures for September on Thursday dropped by 54 percent to $49.32 a barrel at 15:30 MSK, which is about half its five-year average price. West Texas Intermediate (WTI) was down 1.06 percent at $44.67 a barrel.

S

pecialized customs houses will be set up in Armenia, and the respective decision was made at Thursday’s Cabinet meeting.

The Deputy Minister of Finance, Armen Alaverdyan, stated at the session that they are planning to set up regional and specialized customs houses on Armenia’s borders with Iran and Georgia, and at the Ararat provincial customs house.

These customs houses will be set up for the customs clearance of motor vehicles, excisable goods, international postal parcels and valuable international transportation, and pursuant to the Law on Customs Regulations.

exporting 6.5 m bottles to Russia. Rospotrebnadzor representatives said these accusations were supported by quality analysis results.

Georgia’s Ministry of Agriculture published a statement noting the Ministry had begun to study Rospotrebnadzor’s accusations “in great detail”.

In the special statement the Ministry

claimed the quality of Georgian wine was strictly controlled by various agencies and laboratories.

Wine is one of Georgia’s most significant export products therefore the state as well as producers and exporters are deeply interested in wine quality meeting all safety standards,” the Ministry’s statement read.

Azerbaijan Allocates Low-cost $60 mln in Turkish Subsidies to Carrier Pegasus sees Farmers 10 pct rise in Passenger Traffic

A

T

urkey’s Pegasus Airlines saw a 10 percent rise in the number of passengers using the low-cost carrier to 10.17 million in the first half of the year. The number of domestic flight passengers rose by 10.2 percent to 6.33 million and of foreign flight passengers by 9.6 percent to 3.84 million in the first six months of the year compared to the same period of 2014.

While the number of total seats rose by 12 percent to 13 million in the same period, the load factor decreased by 1.4 percent to 77.9 percent, said the company. The number of scheduled destinations increased from 84 to 91 in the first half of the year, according to the statement.

Pegasus Airlines had increased its passenger numbers by 10.8 percent in the first three months of the year from the same period of 2014.

zerbaijan has allocated 63.2 million manats ($60.21 million) to farmers for purchasing fuel and motor oil for the equipment used in the cultivation of lands.

The relevant decision was taken on August 5 at a meeting of the state commission, Azerbaijan’s Agriculture Ministry reported on August 8.

The subsidies were distributed among 372,234 farmers in 60 regions (cities) to cultivate around 1.264 million hectares land. The relevant paperwork was submitted to the country’s Finance Ministry, Kapital Bank, and the executive authorities of regions (cities). The state commission also discussed providing 50 manats ($47.6) per hectare of cultivated area to farmers from the state budget and subsidizing 70 percent of the cost of fertilizers sold to farmers of Agroleasing Open Joint Stock Company and other legal entities and individuals. Azerbaijan, a post-Soviet country with excellent natural conditions and unique priorities, has been allocating subsidies to agricultural producers since 2007.

Azerbaijani farmers are exempt from all taxes (excepting land tax) in accordance with the law on providing tax privileges to agricultural producers adopted on November 27, 2001.

REAL ESTATE

10

ajara business week

SELL Rustaveli str Total area:

SELL Sherif Khimshiashvili str Total area:

120 m2

33 m2

Price:48000$

SELL Parnavaza Mefe street Floor:8 Total area:

40 m2

Price:26000$ SELL Javakhishvili str Total area:

48 m2

Price:49800$

Price:35000$

SELL Gonio Total area:

SELL Mcvane koncxi LAND Total area:

387 m2

2000m2

Price:90000$

Price:60000$

SELL Sherif Khimshiashvili str.

Total area:

SELL Adlia LAND Total area:

33 m2

1500m2

Price:47000$

Price:105000$

SELL Sherif Khimshiashvili str.

Total area:

SELL Makhinzhauri LAND Total area:

30 m2

171m2

Price:29000$ SELL Pirosani str Total area:

August 10, 2015 #5

Price:42750$

SELL Gonio Total area:

SELL Sherif Pirosmani str Total area:

50 m2

36 m2

145 m2

Price:150000$

Price:18500$

Price:36000$

SELL Gorgasali str Total area:

SELL Pushkin str Total area:

SELL Kobaladze str Total area:

52 m2

37 m2

32 m2

Price:50000$

Price:40000$

Price:40000$

August 10, 2015 #5

EVENT

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

In frames of “Heat Batumi 2015” “Kids’ Days” are Finished

F

abulous spectacle of “Fingers Theatre” has surprised little visitors.

The “Heat Batumi 2015” project continues and is always ready to provide the best entertainment events in parallel with leisure and relaxation. The organizers thought of kids, as well as adults.

The coastal city paid host to the “Kids Days” from July 27 to August 2. Batumi Colonnades, Boulevard and the city’s streets hosted plays, theatrical performances and a variety of recreational activities.

Within the “Heat Batumi 2015” “Kids Days” are finished. So many cartoon characters surrounded us for 5 days that we all thought ourselves to be at Wonderland. Dancing, singing, games, quizzes... Kids spent unforgettable days

with fairy tale characters in the coastal city.

Children’s program is varied and quite interesting with performances and concerts including: Basti Bubu, Studio Lipoposa and Jazz band concert, along with the musicals: “Celebration in Magic Palace”, “The Adventures of Pinocchio” and “Mowgli”.

Fingers Theater invited kids on the premiere of “Kai and Gerda Island Adventure”. They were surprised by the fabulous spectacle of “Fingers Theater”. The streets were full of fiery fireworks and neon shows. The kids’ days also included the Disneyland program, contests and fun quizzes.

In addition, on July 28, “Fanta Love Land” was organized by Coca-Cola, which ended on August 2. It was an encompassing one-week activity with lots of gifts, kites and show programs.

In frames of “Heat Batumi 2015”, the International-Scale Adjara Fashion Week Ended

I

n frames of “Heat Batumi 2015”, the Adjara Fashion Week of international scale has finished. Batumi hosted the first fashion week where up to 15 designers showcased summer collections to visiting guests and citizens of the seaside town. Everything was at the highest level for the week!

In frames of “Heat Batumi 2015” on Kempinski, the Fashion Group and Georgia’s Fashion and Design Association organized the first international Fashion Week in Adjara. Maka Kvitsiani’s showcase opened the second day. Emphasis was put on Georgian themes, and the various seasonal collections were presented by both local and foreign designers. The tourist season-aware fashion week went on for three days and ended on Augusts 2nd, at the old city center on the “Piazza” hotel square, with the showcase of Sasha Arutinov’s couture collection.

Adjara Fashion Week presented the SpringSummer collection to the audience, an occurrence that will become annual. The project aims to promote the country and the the development of art and fashion, while also giving the designers the opportunity to present and share their works to the invited international buyers from Europe and Asia. This, in turn, is a prerequisite for ad-

vancement and promotion of the Georgian fashion industry.

During the event, a variety of high-ranking guests visited Batumi; critics, buyers, bloggers, journalists, editors and designers of popular fashion publishings were all hosted by the Adjara Fashion Week for 3 days.

Among the visitors was the organizer of Azerbaijan and Kazakhstan Fashion Week GYLA Sabaev. “Georgians have a sense of style.

It comes easy to me to distinguish them from various nationalities. They bravely try on a new dress, shoes, and accessories. There’s a new reason for visitors to come to Batumi now: The Adjara Fashion Week. “- says GYLA Sabaev.

In frames of the Adjara Fashion Week, through the efforts and financial support of the Enterprise Development Agency, the city was visited by the so-called buyers Kazakhstan and Azerbaijan.

Enterprise Development Agency was actively involved in the fashion week and their work contributed to Georgian designers and production companies to move their products abroad, which helps facilitate connections between world brands.

Adjara Fashion Week has ended, but “Heat Batumi 2015” project still continues! Fun’s going down all day-round!

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

11

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

12

PUBLICITY ajara business week

August 10, 2015 #5