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**July 1995**
REGIONAL CORNER: SOCHI
by Jennifer Alspach

Russia's only major Black Sea resort, Sochi, is emerging as one of Russia's most
promising sites for investment in tourism.  Russia's "Riviera" has long been visited
by Turks, East Europeans, and Russians themselves.  Russian President Boris
Yeltsin even held a recent summit there.   

Sochi draws vacationers year round with an appealing combination of sub-tropical
Black Sea beaches, ski areas in the nearby Caucasus Mountains, and natural
mineral springs.  Despite the beautiful setting, however, Sochi does yet not attract
large numbers of Western visitors.  This is partly the result of a lack of
infrastructure, such as an international airport and international standard hotels. 
Marketing is also a problem, since until recently Sochi didn't needed to compete
for tourists from the captive market of the former Soviet Union.

Ambitious Plans

The Sochi city government is trying to change this.  Ideally, the local authorities
would like to attract business people to the city with international-standard
facilities, and lure them back as a vacationers.  Regular sea and air connections to
Turkey and Germany are also under consideration to make Sochi more accessible
to foreign visitors.  

Recognizing both the need to modernize the city's facilities and make Sochi more
accessible to Western tourists, the local authorities held a conference on
international trade and entrepreneurship in Sochi in February.  Several proposed
projects came out of the conference.  These projects include modernization and
expansion of the current airport, including customs and other services necessary
for an international airport.  In addition, the city wants to improve its existing
tourism facilities to meet Western standards, including construction of modern
resort hotels and a business center. 

Radisson Moves In

Radisson Hotels International is one U.S. company which is taking advantage of
opportunities emerging in Sochi with the Hotel Lazurnaya, which it opened there
last year.  Built and owned by a Turkish/Russian consortium and managed by
Radisson, this four-star accommodation is equipped both with the amenities and
services of a luxury resort, as well as with a conference center, including business
services such as translation and modern telecommunications.  Radisson's
marketing effort for the Lazurnaya promote it both as a holiday destination and a
site for international business meetings and conventions. 

Sochi's development prospects are boosted considerably by the fact that it is the
only major Black Sea resort town left in Russia after the fall of the Soviet Union. 
The city's two main competitors, Yalta and Sukhumi, are now part of Ukraine and
Georgia respectively and are largely cut off to Russian visitors by economic and
political circumstances.  This enviable position makes Sochi one of the Black Sea's
prime development opportunities for companies in the tourism/hospitality industry. 
As John Norlander, president of Radisson Hotels International concluded recently,
"We are willing to be the pioneer.  We truly believe that the potential of the market
is dramatic."

For more information on doing business in Sochi, contact Vladimir M. Sheyanov,
First Deputy Mayor of Sochi, at 011 (7) 8622 92-22-77 (voice) or 011 (7) 8622
92-73-00 (fax); Vadim P. Levchkenko,  Chairman of the Sochi Chamber of
Commerce and Industry, at 011 (7) 8622 92-90-94 (voice), 011 (7) 8622
92-20-03 (fax), or by e-mail at mihas-tpp.black.sochi.su.  To reach the Sochi
Lazurnaya, contact Sam Brass, General Manager, at 011 (7) 8622 31-19-30 (voice
& fax).

Jennifer Alspach is an occasional contributor to BISNIS Bulletin.
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