Announcement of Major Tourism Resort to be Developed on Turkey’s Mediterranean Coast with the Assistance of the World Bank on July 8, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/5 JULY 8, 1976 MAJOR TOURISM RESORT TO BE DEVELOPED ON TURKEY'S MEDITERRANEAN COAST WITH THE .1SS1STANCE OF THE 'WORLD BANK A major tourism resort will be developed near Antalya, Turkey, with the assistance of a $26 million loan from the World Bank. The project, which will be implemented by the Ministry of Tourism and Information, is the first Bank-financed tourism project in Turkey, and is also Turkey's first integrated planned effort in the tourism sector. It will develop South Antalya into a major tourism resort ai~ed primarily at the European mass market. In spite of a growing influx of tourists, Turkey's impressive tourism assets are still largely untapped, particularly on the southern Mediterranean coast; the total number ·of foreign tourists arriving in Turkey remains well below the number of tourists visiting some other Mediterranean countries. The project area, which covers about 15 kilometers of coastline, • south of the city of Antalya, is an ideal resort spot and should be especially attract·ive for vacationers from European countries. The site is endowed with natural beauty and offers sunny weather for eight months of the year, excellent beaches, a dramatic landscape of forested mountains set against the Mediterranean, and possibilities for one day excursions to the ancient cities and archaeological sites of Phaselis, Side, Olympos, Perge, and Aspendos. Direct air and sea routes connect Antalya with most European countries. · The $66 million project wi 11 provide for construction of basic in- frastructure and recreation facilities (roads, water supply and sewerage, electricity and telecommunications systems, a small craft harbor, camping and public beach facilities, urban infrastructure, a hotel training school and employee housing) in four project sites in and around the village of Kerner. Private investors are expected to finance construction of 2,250 hotel and vacation village room~ by 1981, and a total of 5,750 rooms by 1990. By 1990, about 160,000 visitors, 80% of them foreign, are expected to visit the project area annually. Visitor expenditures should result in in- cremental net foreign exchange earnings for Turkey estimated at $17.7 million in 1983, and rising to about $29.3 million per year at full development. When fully operational, the project will create some 7,000 jobs in hotels and other resort facilities, and an additional 6,000 jobs in construction and in handicrafts, transportation and other tourist services. The World Bank loan to Turkey will be for a term of 25 years, • including 6 years of grace, with 8.85% interest per annum. The project will bring total World Bank lending to Turkey to $1,321.2 million for 42 projects . NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: South Antalya Tourism Infrastructure Turkey $66 million • BANK FINANCING: $26 mi 11 ion, for 25 years, induding 6 years of grace, with interest at 8.85% per annum. OTHER FINANCING: Government of Turkey IMPLEMENTING ORGANIZATION: Ministry of Tourism and Information, Gazi Mustafa Kemal Caddesi, Ankara, Turkey. PROJECT DESCRIPTION: It wi 11 include: (a) completion of the main highway from Antalya to the project area and construction of access roads to the tourism sites; (b) water supply, sewerage, sol id waste disposal, electricity and telecommunications for the tourism sites; (c) water supply, sewerage, electricity, telephone, streets, sports accommodations, park health clinic and ser- vice buildings for the tourism support center of Kerner; (d) hotel training faci 1 ities; (e) construction of housing for hotel employees; (f) construction of a small craft harbor at Kerner; (g) campgrounds, day-use beaches, beach and other f~cilities in the national park; (h) preservation works at the Phaselis archaeological site; and (i) funds for project management, studies and consultants, PROCUREMENT: ~Jjor civil works and equipment contracts wil 1 be awarded under international competitive bidding in accordance with Bank guide1 ines, with the exception of road construction and other minor civil works (together not to exceed $4 mill ion) which will be on force • account. Project items will be grouped to the extent possible in order to encour- aqe such competitive bidding. Local competitive bidding will be used for civil works contracts up to $500,000 and equipment contracts up to $100,000. The total amount of such contracts is estimated not to exceed $2.5 mill ion. In order to attract both local and foreign bids, contracts wi1 l be broken down into elements which will be tendered individually or combined into bidding groups at the bidders' option. In evaluating international bids for equipment contracts, domestic manu- facturers will be allowed a preferential margin of 15 percent of the CIF price of competing imports or the prevailing level of customs duties, whichever is lmtJer. CONSULTANTS: (a) A hotel advisor to help hotel investors prequalify and aid them in planning hotels for efficient operation and in negotiating suitable management contracts (36 man-months). (b) Marketing consultants to help devise a marketing strategy and ensure that satisfactory con- tracts with tour operators are signed well in advance of the commencement of oper- ations (40 man-months). (c) Consultants for technical assistance in small craft harbor management, operation of public utilities, and for ah economic study on hotel profitability and tourism incentives (75 man-months). (d) Consultants for technical assistance in teacher training, curriculum preparation and operation of • the hote 1 training school in Kerner ( 126 man-months). ECONOMIC RATE OF RETURN: 17% ESTIMATED COMPLETION DATE: 1981 - 0 -