"DUBAI ON THE CASPIAN" LIKELY TO STILL BE "LAKE ERIE ON A

UNCLAS ASHGABAT 001335 SIPDIS SIPDIS SENSITIVE STATE FOR SCA/CEN E.O. 12958: N/A TAGS: PREL EPET ECON ETRD TX SUBJECT: "DUBAI ON THE CASPIAN" LIKELY TO STILL BE "LAKE ERIE ON A CALM DAY" DESPITE BILLIONS INVESTED REF: ASHGABAT 0968, ASHGABAT 0970 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: A December 3 business forum showcased multi-billion dollar, world-class plans for the Avaza Tourism Zone. World-renowned design companies, architectural firms, and developers are involved in the project, guaranteeing that the finished project will probably look great. Nevertheless, serious doubts persist whether international tourists will be willing to come to Avaza. Even some of the companies involved are lobbying the government to listen to consultants in order to give the resort a shot at success. Given the drawbacks, such as a convoluted visa process, while Avaza may end up looking fantastic, we doubt very much that very many international tourists will show up. END SUMMARY. ¶3. (SBU) During the December 3 Avaza Tourism Zone development conference, EmbOff saw business development plans and presentations from some of the best companies in the field to attract foreign tourists. H.O.K International, an American design and architectural firm whose designs include the National Air and Space Museum in Washington, D.C., drew the master plan, which calls for hotel islands, a tennis village, and an artificial canal zig-zagging through hotel complexes. Turkish firm Garanti Koza LLP, the construction firm and organizer behind Turkey's foray into the world of professional tennis with the Istanbul Cup, will build Avaza's tennis village, complete with 30 tennis courts, a tennis academy, and 5,000 seat stadium. A contract developer for Dubai's World Islands and Knowledge City in Saudi Arabia, American design and construction company GreaterKingdom, will construct artificial hotel islands just off shore from Avaza beach. ¶4. (SBU) Creating a new market for tourism where one has never existed before is not cheap. Major improvements are required in infrastructure, from electricity and water supplies, to airports and sea ports. Hotels, shopping malls, and recreational facilities are also needed. President Berdimuhamedov made a $1 billion down payment to seed the work and invited companies from around te world to invest in Avaza with incentives like land grants and tax free business. Businesses are heeding the call. The President announced $3 billion in private investment. Turkish firm Sehil Insaat will invest $40 million in the construction of villas and vacation homes. Pars Energy of Iran will invest $30 million in shopping malls. Turkish Polimeks intends to invest $25 million in a yacht club and water park. French construction company Bouygues plans to invest $25 million in a business center. ¶5. (SBU) The Turkish Ambassador told us that most of the foreign companies that have invested so far in Avaza are Turkish. Several of them have approached the government, begging officials to listen to foreign consultants so that the resort has a chance at success. One suggestion that the consultants have offered so far is that Avaza be turned into a Vegas-style gambling destination. ¶6. (SBU) COMMENT: The plans for Avaza may result in an impressive-looking resort. However, that may not be enough to bring a flock of international tourists there. The Caspian seacoast has none of the attraction of the Mediterranean. In fact, one person described Turkmenistan's Caspian coast as reminiscent of "Lake Erie on a calm day." In addition, the letter of invitation/visa process is slow, difficult, and off-putting. Moreover, even if someone was able to reach Avaza, observers doubt they will find international standards of service, so the early word of mouth is unlikely to encourage more tourism. Therefore, while Avaza may end up looking fantastic, we doubt very much that very many international tourists will show up. END COMMENT. CURRAN