TURKMENISTAN: AVAZA NATIONAL TOURIST ZONE OPENS

UNCLAS SECTION 01 OF 03 ASHGABAT 000769

SENSITIVE
SIPDIS

STATE FOR SCA/CEN

E.O. 12958: N/A
TAGS: PGOV PREL ECON TX
SUBJECT: TURKMENISTAN: AVAZA NATIONAL TOURIST ZONE OPENS


1. (SBU) SUMMARY: President Gurbanguly Berdimuhamedov
officially opened the Avaza National Tourism Zone on June 15,
accompanied by the government, the diplomatic corps,
businessmen, and international journalists. "Avaza" consists
currently of two hotels. Although plans are for an
artificial river, an indoor ski resort, a race car track, an
amusement park, fountains, and artificial islands, it is a
long, long way from the Turkmen Las Vegas officials claim it
will become. Between a projected $1500/week price tag for
hotel stays and Turkmenistan's restrictive visa regime, few
foreign tourists may actually make their way to Avaza.
Turkmen officials admit that foreign tourists, if they come,
will likely only come once. On the bright side, the opening
featured, a real press conference with international
journalists, unprescreened questions, and reasonably
professional answers, as well as a real pop concert,
featuring international (FSU) stars, gyrating in the same
skimpy outfits they would wear anywhere. END SUMMARY.


2. (SBU) On June 15, President Gurbanguly Berdimuhamedov
officially opened the new facilities in the Avaza National
Tourism Zone, located just north of Turkmenbashy. As per
usual for presidential provincial travel, Berdimuhamedov was
accompanied by high government officials, the diplomatic
corps, and businessmen. In a break from the past,
international journalists were also on this trip. In his
speech, Berdimuhamedov said that Avaza is the first free
economic zone in the country aimed at development of the
tourism industry. He said that all investors, both local and
foreign, are provided with significant tax breaks and customs
privileges. Berdimuhamedov said that total cost of the
facilities under construction already exceeded $1.5 billion.
During the next or second phase of development, another 10-15
world class sanitoria will be built as well as aqua parks,
yacht and sports clubs, restaurants, camping areas
attractions, and shopping centers. Construction has already
started on a long artificial river that will transverse the
resort as well as on a new airport terminal in Turkmenbashy.
Berdimuhamedov asserted that new highways, gas turbine power
stations, water purification facilities, and water pipes are
also under construction and Turkmenbashy seaport will be
renovated. Berdimuhamedov said Avaza will become a Turkmen
Las Vegas with numerous casinos and other entertainment
centers.

TURKMEN LAS VEGAS?


3. (SBU) Although Berdimuhamedov bragged that Avaza will
become like Las Vegas, there is little there now that hints
it will ever really become a world-class, highly popular
resort. The only buildings in Avaza are two hotels - the
Watanchy (owned by the Ministry of Defense) and the Hazyna
Hotel (owned by the Central Bank). The President only
inaugurated one building in person - the Watanchy - and
opened the Hazyna and the Charbak (in Turkmenbashy - owned by
the Ministry of Water Management) - remotely by video
conference. And while the Watanchy and Hazyna are nice
hotels, there is little else. The Watanchy was particularly
luxurious, replete with mineral bath and offices for medical
specialists. However, one has to wonder if guests really
want to go to Avaza to see a gynecologist or cardiologist.
Nevertheless, the beach was dirty. It was not grated and the
sea by the shore was full of seaweed. There was little to
entice guests to lay on the beach or swim along the shore.


4. (SBU) And while the rooms in the hotels were nice, it was
all a bit "Potemkin." Meals were provided to the government
officials, diplomats, businessfolk, and journalists buffet
style, so there was no opportunity to try out restaurant
meals and check prices. There was a 24-hour open bar. The
wait staff flew in Ashgabat with the guests and returned to
the capital with them as well. As soon as the two-day
official opening ended, the hotels shut down and the lights
were turned off in Avaza.


ASHGABAT 00000769 002 OF 003


WHAT THE FUTURE HOLDS


5. (SBU) On June 15, Bedimuhamedov and his guests listened to
a number of presentations by companies hoping to participate
in phase two. These included the company hoping to build the
race track, an indoor ski resort, an artificial island shaped
like Turkmenistan, a 25-hectare amusement park, a series of
sea fountains, a shopping center, sanatoria, an irrigation
system, and more hotels. After the presentation (these
projects were obviously vetted beforehand),Berdimuhamedov
pronounced them good and signed the orders authorizing them.
Afterward, the President was given the key to the city.

A REAL PRESS CONFERENCE


6. (SBU) One interesting development during the tourist zone
opening ceremonies was that Turkmen officials held a very
real press conference. Approximately 40 foreign journalists
were present, including representatives from Associated
Press. There were no pre-screened questions. Deputy Foreign
Minister Komekov, and representatives from the Ministry of
Nature Protection, Oil and Gas Ministry, and Migration
Service took questions on environmental impact statements,
visas, Turkmenistan's economic potential, the feasibility of
the Avaza project, cost of a tourist package ($1500/week!),
the budget for ads to attract tourists, and the number of
tourists they expect to attract.


7. (SBU) The most interesting question was from a journalist
from the Russian newspaper Kommersant. She noted the
importance of the oil and gas sector and how revenue from
that sector is used to fund the Avaza project. She then
asked for the state of negotiations with Gazprom, whose
Chairman of the Board of Governor's, Aleksey Miller was
visiting, and what this meant for relations with Russia. The
official from the Ministry of Oil and Gas gave a very skilled
non-answer. The official from Migration Service, however,
was a bit flustered and was obviously not used to answering
real questions. When a visitor from Austria asked how
Turkmenistan hoped to attract Austrian tourists when the visa
regime was so difficult. The Migration Service official said
the law was the same for everyone, and there was no special
visa regime for different countries.

AND A REAL CONCERT


8. (SBU) Two official concerts were held to commemorate the
opening. The President attended the one on the first night.
In addition to local artists, there were also a number of pop
singers that are famous throughout the FSU, including
Russia's Philip Kirkorov and Zara, Ukraine's Ani Lorak, and
Uzbekistan's Firuza Jumaniyazova. The more interesting of
the two concerts took place the second night. Although it
was held in the concert hall in Turkmenbashy under official
auspices, with several Deputy Chairmen and ministers in
attendance, it was more like a concert you would see
elsewhere in the world. The artists gyrated in skimpy
costumes. They tried to involve audience participation,
attempting to get the audience to sing along with them. The
audience members clapped wildly for the foreign performers
(all of whom noted this was their first time in
Turkmenistan). Large numbers of those present, especially
young people, waved their hands in the air or got up and
danced at their seats. The sense of freedom and enjoyment
was palpable. This was all a first for Turkmenistan. And
even more groundbreaking, the concert was later broadcast on
national television.


9. (SBU) COMMENT: Avaza is a long way from being a tourist
mecca and may never be one. It is unlikely it will ever be
able to compete with Turkey or even Sochi. Officials admit
that it is likely that only local tourists will come the
first few years. And, later, when there is more of an
international clientele, foreign tourists will only come
once. The $1500/week price tag will scare off many potential

ASHGABAT 00000769 003 OF 003


visitors, and the restrictive visa regime will keep others
out. (The Turkmen have apparently given up the idea of a
special visa zone for Avaza, realizing that anyone coming all
the way to Turkmenistan will want to see Merv and other
ancient sites.)


10. (SBU) COMMENT CONTINUED: As already noted, the attempts
at press freedom and cultural freedom were the most
interesting developments of the opening. Hopefully, after
seeing that the international press does not bite and more
open press conferences do not result in embarrassment, they
will try it again. And we can also hope that they will
expand cultural freedom. The artists who performed in Avaza
and Turkmenbashy are the same ones that people watch nightly
on Russian MTV or other Russian television channels. So,
there was nothing new for the audience, except the pleasure
of having these stars perform live. END COMMENT.
MILES