Turkey has provided large advantage to the investors since it is a growing market and has friendly environment with one-stop investment opportunity. In the year 2002 its market share is 1.7 by visited13.2 million tourist and generated 8.5 million revenue. Those figures were recorded 5% higher for 2003. According to World Tourism Organization Turkey will be the fastest growing country in tourism demands with an annual rate of 10%.
As it has been ranked in the world first fifteen destination by 14 million visitors a year Turkey has tried to offer different projects to have developed its accommodation facilities and tourism kinds. In order to diversify the tourism product Turkey has promoted the sites located inland areas to those having different taste than 3S (sea, sand and sun) combination and coastal region as well. Currently, tourism activities in the country are concentrated along Aegean and Mediterranean coasts where about 80% of Turkey's bed capacity exists. However investments have been made on accommodations are not sufficient to correspond to the future tourism demands that will be directed to Turkey, therefore Turkey has a strong desire to attract both the national and international investors particularly in the regions mainly visited.
The sites and lands that would officially declare as `preservation and development areas of culture and tourism regions are being planned by the Ministry of Culture and Tourism. Ministry has opened up the areas for investments in terms of its priority having as a destination. For the officially designated sites, the land allocation process for the investors will be started by the approval of the macro physical plans. The physical plans for the whole region or the sub-regions, are made / get made and approved by the Ministry.
Those sites where investments would be directed are Dalyan, Tarsus, Didim, Antalya and Istanbul. Attached you will find power point presentation on the regions above. Moreover so far 160 tourist centers have been designated under the Tourism Encourage Law. Aside those sides that are still in progress, Ministry of Tourism has provided parcels on the coastlines in the well developed tourist regions such as Belek, Kemer, Fethiye.
The Tourism Encourage Law was newly updated. According to new procedure, whole region or one lot of it may be allocated to a main investor. In this case the decision is put in force by Council of Ministers and pre-permission is given to this investor by the Ministry. In case of approval of the project of the investor by the Ministry, following the arrangement of the investment license, the pre-permission is turned into the final permission by the Ministry. Investors will be determined via open tender and in the designated sites and regions, they would get an easement, including autonomous and permanent right of construction. This type of right institution allow investors to get mortgage from national or international markets. Furthermore investors have the right to sell the area or the construction to the third parties without permission of the Ministry.
The idea behind this Law is to encourage land development projects and temptation international chains and trademarks.
Furthermore those provided under the The Encourage of Tourism are mainly:
– Allocation of public land to investors for tourism investments
– Permission to employ foreign personnel and artists
– Discounts on water, electiricity and gas prices
– Priority in allocations of telephone, fax and telex lines
– Tax, Duty and Fee exceptions, such as VAT and Customs Duty
To benefit from incentives, investors should obtain an effective certificate from the Treasury Undersecretariat and a Tourism Investment Certificate from the Ministry of Tourism.
The following are the types of investment for which Tourism Investment Certificates may be issued:
1. Accomodation Facilites
2. Dining and Entertainment Facilities
3. Auxiliary Service Facilities (such as, beach facilities, congress and exhibition centers, theme parks, golf facilities)
4. Tourism Complexes
5. Personnel Training Facilities
6. Yacht Tourism Facilities
The most important aspect of any investment, particularly a tourism investment, is location. A choice of location has a direct impact on the profitability of the investment. It must be not only suitable for a tourism investment in terms of their physical characteristics, but also be allocated for tourism under land use plans. No Tourism Facilites may be constructed on land not allocated for tourism uses in Land Use Plans of any scale. If your land is located in an an allocated for tourism under approved plans, this means it is ready for a tourism investment. Then you may proceed with design work.
You may also apply for allocation of Public Land located within a tourism area or center. Tourism areas and centers are determined and announced by the Council of Ministers upon the proposal of the Ministy of Tourism which requires to be developed on a priority basis. Those which are deemed appropriate for allocation to investors are from time to time announced to tourism investors by the Ministry of Tourism through advertisements placed in newspaper. Applications are finalized by the Land Allocation Committee within 2 months. The investor should then apply to the Ministry of Tourism with the necessary documents, lay-out plans and architectural designs to obtain Tourism Investment Certificate.
Facilities to be certified with Tourism Investment Certificates must meet certain requirements as stated in the regulation. These are very detailed and include, safety and environmental protection measures, design, capacity, price tariffs, personnel training, main and optional units etc.
The allocation period is up to 49 years. The exact period shall be determined by the Land Allocation Commission taking into account factors such as the type, class and capacity of the facility and the characteristics of the location. Rent will be paid to the treasury annually and in advance. At the end of the allocation period, the facilities shall pass to the Treasury without any payment.
The Ministry also issues Tourism Establishment Certificates to establishments operating in the tourism sector in accordance with the regulations set forth by the Ministry. Hotels are classified as five, four, three, two and one-star hotels; Motes and holiday villages as, first class and second class; Restaurants as third class, second class, first class and deluxe. Minimum qualifications for each are determined precisely. Qualifications for resort houses, camping sites, apart hotels, motor caravans, hostels, rural tourism facilities, golf facilities, entertainment centers are also determined in detail.
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