Transcript pirdapiri ucxouri investiciebi saqarTveloSi - Smile-Expo

Investment Climate &
Gambling Business Opportunities in Georgia
Georgian National Investment Agency
(GNIA)
2015
Georgia - Country Overview
Area:
69,700 sq km
GDP 2014 (est):
USD 16.9 bln
Population:
4.5 mln
GDP real growth rate 2014 (est):
4.7%
Life expectancy:
75 years
GDP CAGR 09 -14 (USD) (est):
5.6%
Official language:
Georgian
GDP per capita 2014(est):
US$ 3763
Literacy:
100%
Inflation rate 2014 :
3.1%
Capital:
Tbilisi
Currency (code):
Lari (GEL)
Total Public Debt to Nominal
GDP (%) 2014 (est):
34.6%
www.investingeorgia.org
2
Advantages of Investment Climate in Georgia
 A politically stable investment destination
 Efficient, pro-business and corruption-free government
 Enlargement of market size by Free Trade Agreements
 Competitive cost of labor and energy
 Entry gate in the region
 Solid sovereign balance sheet
 Stable banking sector
 Very low crime-rate
BB- Stable
www.investingeorgia.org
BB- Positive
Ba3 Positive
3
Doing Business in Georgia
Country's impressive progress in improving business climate has been well documented in a
number of international indices.
Ease of Doing Business
Singapore
1
United States
7
United Kingdom
8
GEORGIA
Index Of Economic Freedom
Up from 112 in 2005
15
Latvia
Netherlands
Bulgaria
Armenia
Turkey
Russia
23
27
38
45
55
62
Azerbaijan
China
Ukraine
Source: World Bank, DB 2015 (Rank out of 189
countries)
www.investingeorgia.org
80
90
96
Hong Kong
United States
United Kingdom
Germany
GEORGIA
Sweden
Armenia
Kazakhstan
Turkey
France
Azerbaijan
China
Russia
Ukraine
1
12
13
16
22
23
Up from 99 in 2005
52
69
70
73
85
139
143
162
Source: The Heritage Foundation, 2015 (Rank out of 178 countries)
4
Corruption Free Country
Georgia is considered as essentially a corruption-free investment destination
Global Corruption Barometer
GEORGIA
Denmark
Hungary
0%
1%
Norway
1%
Korea (South)
1%
Hungary
1%
Canada
2%
Switzerland
2%
UK
Percentage of users paying
a bribe to tax authorities in
the past year
9%
Armenia
9%
Ukraine
2%
Norway
2%
Korea (South)
2%
Canada
2%
UK
United States
Turkey
GEORGIA
GEORGIA
Denmark
Switzerland
4%
United States
Armenia
Turkey
15%
18%
1%
Ukraine
2%
Percentage of users paying
a bribe in registry and
permit services
5%
11%
14%
16%
20%
22%
Source: Transparency International 2013 (GLOBAL
CORRUPTION BAROMETER)
www.investingeorgia.org
5
Economic Structure and Trends
Rapidly growing GDP per capita
GDP: Strong rebound after a relatively small contraction in 2009
Nominal GDP (US$bln)
18
16
14
12
10
8
6
4
2
0
12.3%
9.6% 9.4%
5.9%
5.1
6.4
7.8
12.8
Real GDP growth, y-o-y (%)
16.9
15.8 16.1
14.4
10.2 2.3% 10.8 11
7.2%
-3.8% 6.3%
3.2%
4.7%
6.2%
12.0%
7.0%
2.0%
-3.0%
-8.0%
4000
3500
3000
2500
2000
1500
1000
500
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
E
2921
2315
1188
1484
3231
2455 2623
1764
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
E
Source: Geostat, MOF
Source: Geostat, MOF
Favorable public debt situation
Broad-based and diversified nominal GDP structure in 2013
Health and social
work
6%
Agriculture,
forestry and fishing
9%
Other sectors
12%
Total Public Debt to Nominal GDP (%)
70%
Industry
17%
Education
5%
60%
40%
Construction
7%
Financial
intermediation
3%
Transport and
Communication
11%
www.investingeorgia.org
Hotels and
restaurants
3%
Trade
17%
30%
20%
10%
External Public Debt to Nominal GDP (%)
63.2%
50.5%
50%
Public
administration
10%
3763
3523 3600
41.0% 42.4%
40.0%
32.0%
44.9%
25.5%
31.2%
34.5%
26.8%
21.1%
23.5%
36.5% 34.9% 34.7%
31.7% 33.6% 28.8%
27.6% 27.2%
16.8%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Geostat, MOF
Source: Geostat, MOF
6
Liberal Trade Regimes
• Very simple and service oriented customs policy and administration – customs clearance in 15
minutes
• ~80% of goods free from import tariffs
• No quantitative restrictions
Preferential Trade Regimes:
• FTA with CIS countries and Turkey
• DCFTA (Deep and Comprehensive
Free Trade Agreement ) with EU was
singed on June 27, 2014
• GSP agreement with USA, Norway,
Switzerland, Canada, Japan
• Member of WTO
Duty free access to ~0.9 billion market
provided by FTAs and DCFTA
www.investingeorgia.org
7
Taxation - simple, low, efficient and fair
Before
Number of
Taxes
Current
Change year
 No payroll tax or social insurance tax
 No capital gains tax
21
6
2005-2007
VAT
20%
18%
2005
Personal
Income
Tax
1220%
20%
Social Tax
33%
-
Corporate
Profit Tax
20%
15%
2004 - 2009
 Personal income tax for interest, dividend,
royalty – 5%
 Foreign-source income of individuals fully
exempted
 Accelerated depreciation on capital assets
2008
Customs/
import Tax
0%, 5% or 12%
Excise Tax
Depends on goods
Property
Tax
Up to 1%
www.investingeorgia.org
 No wealth tax and inheritance tax
 Loss carry forward for corporate profit tax
purposes (10 years)
 No restrictions on currency convertibility or
repatriation of capital & profit
 Double taxation avoidance treaties with 47
countries
8
Leader in Forbes rating (Tax Misery & Reform Index)
According to the latest Tax Misery & Reform Index, released by Forbes Business & Financial
News, Georgia is the fourth least tax burden country after Qatar, UAE and Hong Kong
www.investingeorgia.org
9
Georgia is expecting significant growth trajectory in tourist arrivals
Number of international visitors has been growing rapidly
+22%
5.4
4.4
+56%
2.8
+38%
2.0
0.6
2005
1
2006
1.1
1.3
1.5
2007
2008
2009
2010
2011
2012
2013
Source: Georgian National Tourism Administration
www.investingeorgia.org
10
Hospitality - Fast Growing Sector
Fast growing sector
• Tourism contributed 6.5% of GDP in 2013.
• Number of visitors increased by 38% reaching
•
•
•
2.8 million in 2011 and by 56% in 2012 reaching 4.4 million.
Georgia had 22% more visitors in 2013 reaching 5.4 million. Number of international arrivals reached 4 657 525
mln during the first 10 months of 2014. (2% increase compared to the same period of the last year).
Majority of tourists come from: Turkey (30%), Armenia (23%), Azerbaijan (19%), Russia (14%), Ukraine (2%).
Tourist number of international visitors from Europe increased by 3 % in 2014
Average duration of stay - 5 nights, average spend - USD 650
Potential
• European Youth Olympic Festival 2015; UEFA Super Cup 2015.
• UNESCO heritage sites; 8 national parks
• Curative climate; mineral waters;
• According the IUCN criteria there are 84 different categories of Protected Areas(Total area – 520 811 ha; 7,47% of
the country’s territory)
Source-Georgian National Tourism Administration
www.investingeorgia.org
11
More international luxury hotel chains are coming to the market…
Existing Hotel Chains (8 pipeline hotel projects in Tbilisi)
With the growth of tourists the
demand for hotel rooms has been
growing in the last years in Georgia,
which has stimulated investments in
the hotel sector.
Average occupancy rate of
international brand hotels in Tbilisi
Reached to 80% in 2013 , Tbilisi
hotel market is expected growth
this year of an estimated 83%;
Supply of the rooms increased, but
still there is a huge capacity for
development of Hotel Industry.
Upcoming international
hotel brands in Georgia
Batumi
Tbilisi
Batumi
Tbilisi
Batumi
Tbilisi
Tbilisi/Li
kani
Source: TBSC Consulting
www.investingeorgia.org
12
Investment opportunities in Hospitality & Real Estate
“Sun-beach”
resorts
1
Expansion of
summer ”sun and
beach” franchise
focusing on highend segment
Description
All inclusive
summer resorts
New master resort
development
Potential
location
 Batumi
 Anaklia
 Kobuleti
 Other Black Sea
locations
www.investingeorgia.org
Winter ski
resorts
2
Master
development of
winter resorts with
unique profile
equivalent to the
Alps
Government is fully
committed to
provision of basic
infrastructure
 Mestia
 Gudauri
 Bakuriani
 Goderdzi
Summer
mountains resorts
Spa
Resorts
4
3
Four season resort
value preposition
Development of Spa
Resorts
Majestic landscapes
allow for a wide
range of tourism
activities such as
camping, climbing,
rafting, fishing,
hunting etc.
Include hotels,
different types of
clinics, fitness,
outdoor activities
Gambling
5
Development of
large-scale integrated
casino complex to
Serve regional
markets.
Include hotels, casino
entertainment, family
Services and shopping
Fiscal incentives
available
 Mestia
 Gudauri
 Bakuriani
 Goderdzi
 Kazbegi
 Other locations
 Tskhaltubo
 Akhtala
 Other locations
 Batumi
 Tbilisi
 Other locations
13
Map of Regional Countries Fully of Partially Banning Gambling
Activities
• Legislation in surrounding
•
•
•
countries prevents people from
enjoying gambling facilities, but
Georgia will provide them with
high quality gambling experience
similar to world class gambling
destination as Las Vegas or
Monte Carlo
Countries where gambling is
completely or partially
prohibited: Russia, Turkey,
Azerbaijan, Iran, Israel,
Kazakhstan, Saudi Arabia etc.
Easy access by Land, Sea and Air
makes Georgia attractive
gambling destination for all
above countries and beyond.
Gambling business is fully
decriminalized.
www.investingeorgia.org
14
Gambling Business in Georgia
• There are couple of choices for starting Gambling Business in Georgia:
•
 Casino
 Slot Machines
 Table Games
 Bookmaker
 Bingo
 Lotto
 Promotional Drawing Game
Georgia Revenue Service (Tax and Customs Administration of Georgia) is
responsible for issuing permits, regulation and supervision of gambling
business
15
Casino Fees
Annual fees:
• 5 000 000 GEL (with exceptions)
• These exceptions vary according to the location of the company:
 Batumi, Kobuleti, Borjomi, Bazaleti Lake, Gurjaani district, vill. Katchreti – 250 000 GEL
 Akhaltsikhe – 100 000 GEL
Some of the regions are totally exempt from annual state fees:
 Gudauri, Khazbegi, Bakuriani, Sighnagi and Tskaltubo – are totally exempt from annual fees with no
conditions
 Batumi, Kobuleti, Khelvachauri, Anaklia and Ganmukhuri are exempt from an annual fee on a condition
that the casino will operate in newly opened 100 or 80 room hotel
Quarterly fees:
• For each Casino Table - 15 000 - 30 000 GEL (Tournaments tables are not subject to quarterly fees )
www.investingeorgia.org
16
Casino Fee Payment Map
Exempt from annual fee + 100 Room Hotel
Exempt from annual fee + 80 Room Hotel
Exempt from annual fee with no conditions
250000 GEL annual fee
100000 GEL annual fee
www.investingeorgia.org
17
Other Gainful Games Fees
Slot Machines
Annual State Fees:
50 000 – 1 000 000 GEL (Tbilisi – 1 000 000 GEL)
In case of locating slot machine club within Casino in Tbilisi: 100 000 GEL
Quarterly Fees: For each Slot Machine: 1500 – 3000 GEL
Table Games
Annual state fees:
Only Casino permit and gaming machine permit holders are allowed to open table gaming club
Casino Permit holders are allowed to open 3 Gaming Clubs in any part of Georgia for free
Gaming Machine Permit holders are allowed to open 1 Gaming Club in any part of Georgia for free
Each following Gaming Club: 10 000 – 50 000 GEL
Quarterly fees: For each Table in Table Game: 3 000 – 10 000 GEL
Bookmaker
Annual state fees: 30 000 - 300 000 GEL
Quarterly fees: Free
Bingo/Lotto
Annual state fees: 15 000 GEL
Quarterly fees: Free
Promotional Drawing Game
Annual fees: 15 000 GEL
Quarterly fees: 10% of Prize Fund
18
Land Based Gambling and Gainful Games Taxing
•
Casino

Personal income tax (salaries) – 20%; Property tax – up to 1%; Corporate Income Tax– 15%; W/H - only during
tournament – 20%;
•
Slot Machines

•
Table Games

•
Personal income tax (salaries)– 20%; withholding liability- only during tournament – 20%; Property tax – up to 1%;
Bookmaker

•
Personal income tax (salaries)– 20%; Property tax – up to 1%;
Personal income tax (salaries) – 20%; Property tax – up to 1%;
Bingo/Lotto

Personal income tax (salaries)– 20%; Corporate Income Tax– 15%; withholding liability – 20%; Property tax – up to
1%;
•
Promotional Drawing Game

Personal income tax (salaries) – 20%; Corporate Income Tax– 15%; withholding liability – 20%; Property tax – up to
1%;
www.investingeorgia.org
19
iGaming Permits
•
iGaming permit is only issued to the land-based permit holders (of Georgia).
•
Gambling and gainful games may be arranged by internet for:
•
A company in Georgia is prohibited from providing iGaming services to an offshore
company
•
iGaming permit holders pay quarterly fees. Quarterly fees are determined by Local
Administrations, which vary from 30000 to 60000 GEL
 Casino
 Slot machines
 Bookmaker
 Promotional Drawing Game
www.investingeorgia.org
20
iGaming Taxation
•
Casino
 Personal income tax (salaries)– 20%, Corporate Income Tax – 15%, property tax – up to 1%, withholding
liability– only during tournament -20%
•
Slot Machines
 Personal income tax (salaries) – 20%, Corporate Income Tax – 15%, Property tax – up to 1%.
•
Bookmakers

•
5% of the turnover (gross revenue). Personal income tax (salaries) –20%; property tax–up to 1%.
Promotional Drawing Game

personal income tax (salaries)– 20%; property tax – up to 1%, Corporate Income Tax– 15%; withholding liability - 20%
www.investingeorgia.org
21
GEORGIAN NATIONAL INVESTMENT AGENCY
• STATE AGENCY
– Promoting Georgia internationally
Investors
– Supporting foreign investments and investors
before, during & after investment process
• “One-stop-shop” for investors
Local
Companies
GNIA
Government
• Moderator between Investors,
Government and Local Companies
Mission - Attracting Greenfield and M&A Investments
www.investingeorgia.org
22
WHAT YOU CAN GET FROM GNIA
• INFORMATION - General data, statistics, sector researches
• COMMUNICATION - Access to Government at all levels/Local partners
• Organization of site visits & Accompanying investors
• AFTER CARE - Legal advising & Supporting services
www.investingeorgia.org
23
www.investingeorgia.org
GEORGIAN NATIONAL INVESTMENT AGENCY
7 Bambis Rigi, Business Center Mantashevi,
II floor 0105, Tbilisi, Georgia
Tel: (+995 32) 2 473 696
E-mail: [email protected]
24