BATUMI BUSINESS TOUR 27 SEPTEMBER - 01 OCTOBER 2016 BUSINESS TOUR
GENERAL INFORMATION ABOUT GEORGIA Area: 69,700 sq km Population: 3.7 mln Life expectancy: 75 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) GDP 2015 (E): USD 14 billions GDP real growth rate 2015 (E): 2.8% GDP CAGR 2010-2015 (GEL) (E): 4.9% GDP per capita 2015: USD 3743 Inflation rate 2015: 4% Total Public Debt to Nominal GDP (%) 2014: 35.5% ECONOMY AND BUSINESS ENVIRONMENT Located between Europe and Asia on a historical Silk Road, the economy of Georgia is highly integrated with international markets. BATUMI tbilisi BLACK SEA GEORGIA
STARTING A BUSINESS RULE OF LAW INDEX New Zealand 1 Canada 3 Hong Kong SAR, CHINA 4 Georgia 6 Singapore 10 Ireland 25 Netherlands 29 Russia 41 United States 49 Poland 85 Turkey 94 Germany 107 China 136 Denmark 1 Singapore 9 United Kindgdom 12 United States 19 Georgia 29 Romania 32 Croatia 35 Bulagria 45 Moldova 69 DIVERSIFIED NOMINAL GDP IN 2015 Ukraine 70 Russia 75 Turkey 80 Source: Geostat, MOF Other sectors 10,0% forestry and fishing 9,2% Health and social work 6,0% Education 4,9% Industry 16,5% Public administration 9,3% R eal estate, renting and business activities 6,6% Communication 10,7% Trade; Repair of goods 16,6% Constructio 8,0% Hotels and Restaurants Source: Geostat, MOF
GROWING GDP PER CAPITA (USD) Source: Geostat, MOF The average monthly salary in Georgia amounts to 410 USD. Unemployment rate is 12.4%. No working permits are required and citizens of 94 countries can stay in Georgia without visa during whole 1 year. GEORGIA IS A COUNTRY WITH LOW TAX RATES AND TRANSPARENT TAX SYSTEM CORPORATE PROFIT TAX - 15% VALUE ADDED TAX (VAT) - 18% PERSONAL INCOME TAX - 20% EXCISE TAX - DEPENDS ON GOODS IMPORT TAX - 0%, 5% OR 12% PROPERTY TAX - UP TO 1%
Georgia s liberal trade regimes provide investors with a favorable opportunity to not only access the country s 3.7 m residents, but the wider region s markets, as a direct result of the absence of customs and import tariffs. Georgia is in a highly strategic location in that it serves as an entry gate to the Caucasus and Central Asia. Georgian transport economy is transit oriented. Up to 60% of cargo flow in Georgia is transit. Logistics accounted for around 9.5% of GDP in 2015 and about 3,3% of employment. TRANSPORT NETWORK IN GEORGIA: Poti seaport Batumi seaport Kulevi oil terminal Supsa oil terminal New Deep-sea port Railway Main Road Network Tbilisi international airport Batumi international airport Kutaisi international airport GEORGIA IN RANKINGS: #1 Reformer for The last 8 years (World Bank. 2014) 1st Place in Property Registration (World Bank. 2014) 8th Place in Ease of Starting Business (World Bank. 2014) 8th Place in Ease of Doing Business (World Bank. 2014) 1st Place in Official Documents Issuance (Life in Transition Survey, EBRD) 2nd Place in Effective Service Delivery (Life in Transition Survey, EBRD) #9 low tax rate economies (WEF global competitiveness report) 6th safest country in the world s 117 countries (Data aggregator of city and country statistics, Numbeo,2016)
AUTONOMOUS REPUBLIC OF AJARA Coat of arms Flag Administrative Centre Total area Population International border Coastline lenght Administrative division Urban population BATUMI 3 THOUSAND SQ. KM (4.2% OF TOTAL AREA OF GEORGIA) 400 000 (93% GEORGIANS) WITH TURKEY TO THE SOUTH 57 KM; BATUMI AND 5 ADMINISTRATIVE REGIONS (KHULO, SHUAKHEVI, KEDA, KHELVACHAURI, KOBULETI) 48% TOURISM Tourism is one of the priority sectors in Ajara (33% of the total investments) Diverse nature offering wide varieties of tourism activities all year round Rapidly developing hospitality infrastructure International hotel brands represented in Ajara Intensive promotion of the region as all-year round tourist destination No license for operating a company in the tourism sector No license fee for opening casinos in hotels with more than 100 rooms No VAT on the revenue received from incoming tourists 18 new high class hotels will be opened in Ajara by 2020 AGRICULTURE Main Traditional Supplementary Citrus Growing Arboriculture Vegetable Culture Livestock Breeding Viticulture Fishery Graing Growing Beekeeping Tea Breeding Silk Growing Tobacco Growing Medical Plants Breeding Land for agricultural purposes in Ajara, due to its mountainous terrain, covers 72 862 ha, which is about 25% of its territory. Advantages of Agricultural Sector in Ajara: Favourable trade regimes Competitive labour force Fertile soil and diverse climate conditions
ENERGY There are 5 hydro power plants in Ajara operating under the license of the Georgian National Commission on Energy Regulation. Their overall capacity is 22.2 thousand kilowatts/hour and annual energy generation is 28.5 million kilowatts/hour which is only 0.8% of the whole potential of Georgia. Hydro Power Potential of Ajara: According to experts calculations, the potential annual capacity of Ajara is 1000 megawatts, which generates 8760 million kilowatts/hour. During the last 20 years, 50-92 million kilowatts/ hour was generated annually, which is only 1% of its potential. TRANSPORT Georgia with its strategic location creates natural logistic bridge between Caucasus and Central Asia. The transport infrastructure in Ajara is a critical part of the country s logistic infrastructure. Huge amount of cargo is imported and exported via Batumi Sea Port and Batumi-Istanbul Highway.
MANUFACTURING The main industries developed in Ajara are as follows: food production, apparel, wood processing and production, and manufacture of non-metallic mineral products. PRODUCTION VALUE BY INDUSRTY SUBSECTORS IN AJARA (2014) Manufacturing Electricity gas and water supply Mining and quarrying MANUFACTURING Other branches of industry Manufacturing Manufacture of food products beverages and tobacco products 7% 12% 27% Manufacture of rother non-metallic mineral products 5% 7% 88% 9% 9% 17% 19% Manufacture of textiles Wood processing and manufacture of wood products Manufacture of rubber and plastic products Manufacture of basic metals and fabricated metal products CONSTRUCTION Construction is one of the most dynamically growing sectors in Ajara region. TYPES OF CONSTRUCTION ACCORDING TO THE CONSTRUCTION PERMITS ISSUED IN AJARA (2013-2015 NUMBER OF CONSTRUCTION AREA (M 2 ) ISSUED IN AJARA Other 26% 1 154 181 1 325 571 888 706 Residential 60% Hotels 14% 2013 2014 2015
LOGISTICS Ajara is in a highly strategic location, offering potential investors great opportunities in transport and logistic sectors. Two central highways and state border with Turkey create favorable environment for local and foreign businesses. FINANCIAL SECTOR There are following financial institutions in Ajara region: 17 commercial banks (83 service centers) 9 insurance companies 11 microfinance institutions (2 head offices, 37 service centers) 2 credit unions 316 currency exchange units 3 money transfer units 10 TOP REASONS TO INVEST IN BATUMI 1. Business-Friendly and Stable Environment 2. Strategic Geographic and Logistic Location 3. Low-cost and Competitive Labor Force 4. Simple/Low Taxes and Incentives 5. Preferential Trade Regimes 6. Developed Infrastructure (physical, financial) 7. Diverse Investment Sectors 8. Liberal Economic Legislation 9. Abundance of Natural Resources 10. Association Agreement with EU
IN BATUMI BUSINESS TOUR YOU WILL VISIT Ministry of Finance and Economy of Ajara Department of Tourism and Resorts of Ajara Autonomous Republic Ministry of Agriculture of Ajara The Chamber of Commerce and Industry of Ajara Public Service Hall Ajara Investment Portal Batumi Port Batumi Oil Terminal Batumi International Container Terminal Kobuleti Tourism Free Industrial Zone International Investment Association Some of the Biggest Casinos Some of the Leading Hotels Some of the ongoing Construction Projects YOU WILL RECEIVE USEFUL INFORMATION ABOUT Governmental policies, programs and incentives Georgia s Legislation Framework How to start a business Property Registration Getting permits Trade Documentation Tax System Investment Opportunities Customs Clearance Procedures Trade Opportunities Banking System Statistics, Trends and Plans of Tourism Industry of Georgia
YOU WILL MEET Heads of Government bodies Investment Department Representatives Members of Chambers Expert People Heads of Big Projects Holding Companies Owners/Managers of Hotels Owners/Managers of Touristic Companies Owners/Managers of Restaurants Main Players of Tourism Industry in Georgia DURING THE TOUR THERE WILL BE HELD A BUSINESS DINNER WHERE INVESTORS WILL HAVE THE OPPORTUNITY TO MEET WITH THE LOCAL BUSINESSES AND GET THE INFORMATION ABOUT THE SPECIFIC INVESTMENT PROJECTS. GUESTS WILL ATTEND BUSINESS FORUM TOURISM INDUSTRY 2016 ORGANIZED BY BUSINESS GEORGIA ON SEPTEMBER 29-30. Tour will also cover touristic sites: Batumi Botanical Garden, Black Sea Arena, Alphabet Tour, Funicular Argo, Nobel Brothers Batumi Technological Museum, Batumi Boulevard.
THE PRICE INCLUDES: 5 Star Hotel Food: Breakfast Transportation Professional Guide Translation Services* SIM card Photographers Service *- Translation is free just for English language, for other languages please contact HOW TO REGISTER? WWW.BUSINESSGEORGIA.GE/TOUR/REGISTER/BATUMI TOUR PRICE for one person in a SINGLE ROOM TWIN ROOM 800 700 Price unit: USD
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