Russia and Korea sign deal on tourism development in North Caucasus

Russia and Korea will establish a joint venture for development of tourism in the North Caucasus, RIA Dagestan cites the Resorts of the North Caucasus Company as saying.

An investment deal was signed at the second public forum “Dialogue Russia – Republic of Korea” in Saint-Petersburg on November 2.

50% of shares will belong to the Resorts of the North Caucasus, 40% - to Korea Western Power, 10% to CHT Korea. The company will work on energy supplies for tourism facilities. This includes building coal, solar and wind power plants, as well as air purifying facilities. Korea will invest $1 billion. Official processes will be concluded by late 2011.

The CEO of Resorts of the North Caucasus, Ahmed Bilalov, says that the initiative will create hundreds of thousands of jobs and boost the economy.

French companies are also involved in tourism. KSK and France-Caucase (a subsidiary of Caisse des Depots et Consignations) are forming a joint venture. Its charter capital will be equal to 10 million euros, the KSK will hold 51% of the shares, the French company – 49%. The special representative of the French President to Russia, Jean-Pierre Toma, believes that French business may bring 15-20 billion euros to the Russian Caucasus.

Russia plans to build 5 world-class resorts in the region: Lagonaki (Krasnodar Territory, the Republic of Adygea), Arkhyz (Karachay-Cherkessia), Elbrus-Bezengi (Kabardino-Balkaria), Mamison (Republic of North Ossetia - Alania) and Matlas (Republic of Dagestan). Ski routes will be 900 km long with 179 cable ways. Hotels will have rooms for 89,000 visitors. The resorts will see 150,500 tourists daily and 5-10 million annually. The project will gradually create 330,000 jobs.

The project is worth a total of 451 billion rubles. The government will invest 60 billion rubles in transport and infrastructure of housing and utilities. Private business will finance infrastructure of the resorts.