"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