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Invesment Procedures in Tourism

1.   TYPE OF INVESTMENT

In order to make profitable tourism investment for foreign tourism in particular and to be eligible for incentives provided to the tourism sector, the Ministry of Tourism must certify the investment. Tourism Investment Certificates are issued under the “Regulation on the Required Qualities of Tourism Investment and Establishments” provided that the requirements of the said regulation are fulfilled.

For this purpose, the type of investment has to be chosen under the terms of “Tourism Investments and Enterprises Properties Regulations”.

2.LAND

After having decided on the type of investment the land for investment should be chosen. There are 3 alternatives:

The investor owns or will buy the land.

The investor will apply for allocation of public land located within a tourism area or center.

The investor will apply for allocation of public land located outside a tourism area or center.

The procedures concerning these three possibilities are listed below:

If the investor owns or will buy the land 

  a.Land-use plan

First the investor should find out the status of the land as shown on the land-use plan. This information may be obtained form:

Municipalities, if the land is located within municipal and adjacent areas,

Provincial Public Works and Settlement Directories, if it is located outside municipal and adjacent areas,

The Directorate General of Investments of the Tourism Ministry, if the application is filed together with a map scaled 1/25.000 on which the exact location of the land is indicated. 

Map Scaled 1/1.000

No tourism facilities may be constructed on land not located for tourism uses. If the land is not located within the boundaries of any plan, a land use plan must be made first in order for the tourism investment to proceed. For this purpose it will be checked whether there is a current map scaled 1/1.000(with the concerned Municipality if the land is located within municipal and adjacent areas; if not, with the concerned Provincial Public Works and Settlement Directorate).

If there is no such map, a current map will be made and approved by the concerned Municipality if the land is located within municipal and adjacent areas and by the provincial Public Works and Settlement Directorate, if not.  

Land on Coast

If the land is located on the coast, a shore line determination will be made(pursuant to the provision of the Regulation concerning the Coastal Law).

Allocation of public land located within a tourism area or center

Of such public lands which are placed at the disposal of the Tourism Ministry and which are located in places allocated for tourism under land use plans in tourism areas and centers, those that are deemed appropriate for allocation to investors are from time to time announced to tourism investors by the Tourism Ministry through advertisements placed in newspapers (the Official Gazette and dailies) indicating their

Location

Land use status

Infrastructure condition

Maps and characteristics

Application deadline for allocation

The investor may apply for the allocation of such a plot of land, which is appropriate to the size, and nature of the investment, provided that the project meets the conditions stipulated in the “Regulation for the Allocation of Public Land for Tourism Investments” and attach the required documents. A file containing the information and documents indicated in the specification which the investor may obtain from the General Directorate of Investments of the Tourism Ministry within an application period of about 1 to 1,5 months following the date of the newspaper advertisement shall be submitted to the Tourism Ministry. The Land Allocation Committee shall finalize applications within 2 months. Allocation decisions become final upon the approval of the Minister of Tourism.

Allocation of public land located outside tourism area or center

The investor must submit to the Tourism Ministry an application file which contains:

A certified copy(by the Provincial Public Works and Settlement Directorate) of a map scaled 1/25.000 showing the location of the land,

A report indicating the type, class, capacity and characteristics of the facility the investor intends to construct on said land and putting forth infrastructure solutions and marketing/management ideas,

A report giving the financial description of the person or organization.

The application will then be examined with regard to land use plans. If it is found to be appropriate the investor will be notified of the allocation decision through advertisement, as in the case of land located within tourism area and center.

3.PRELIMINARY AUTHORIZATION AND TOURISM INVESTMENT CERTIFICATE

The investor is given a preliminary authorization for a period of 6 months, which is the first stage in carrying out the investment. Within this period the investor must fulfill the requirements stated in the “Regulations for Allocation of Public Land for Tourism” and receive a Tourism Investment Certificate.

Following the receipt of the Tourism Investment Certificate and the performance of the other requirements, the land will be allocated to the investor definitely and the investment process begins.

4.CONSTRUCTION PERIOD

To start construction the investor must obtain a “Construction Permit” by the local administration (the concerned Municipality if the investment is carried out in municipal and adjacent areas or the concerned Provincial Public Works and Settlement Directorate, if not). The architectural design Project, the static reinforced concrete, installation and electrical designs and calculations which have been submitted to the Tourism Ministry and which constitute the basis for the Tourism Investment Certificate must be enclosed to the application fort he construction permit. If the Treasury Undersecretariat certifies the investment with the Tourism Investment Certificate by the Tourism Ministry and with the Incentive Certificate, the investor will be examined from permit fees.

5.TOURISM OPERATION CERTIFICATE

Following the completion of project of Investment Certificate a “Building Utilization Permit” must be obtained by the local administration. Application for operation is made to the Tourism Ministry together with the Building Utilization Permit. If the construction is found in confirmity with the plans and designs, a “Trial Operation Certificate” is granted.

The Tourism Ministry determines the trial operation period. At the end of this period the Classification Committee; formed by the General Directorate of Enterprises of the Tourism Ministry will carry out an assessment to determine whether the facility has been operated properly within the trial period. If the result is positive the “Tourism Operation Certificate” will be issued.

 

 

Detailed information on Tourism Facilities can be seen in the website of the Ministry of Culture and Tourism, General Directorate of Investment and Enterprises.

Click here to access the website

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