Tourism, Hotels, Investments and Destinations under analysis in this short presentation featuring the main highlights of the Mediterranean market in 2015.

1. Mediterranean Destinations in 2015
An After-Debt Market Insight
By Víctor Corraliza
es.linkedin.com/in/victorcorralizagutierrez

2. Bussy markets by tourist activity: hot spots
+ Activity
- Activity

3. Main Obstacles for Tourism
Development Map
Obstacles/Risks:
+ Relative Obstacles/Risks
- Relative Obstacles/Risks
Legal
Few Investors
Lack of Finance
Political Risk

4. Obstacles/Risks:
+ Relative Obstacles/Risks
- Relative Obstacles/Risks
• Banks unwilling to finance Real Estate
Developments
• Political difficulties, populist / terrorism
threats
Legal
Few Investors
Lack of Finance
Political Risk
• Perceived corruption and tax evasion
Main Obstacles for Tourism
Development Map

5. Obstacles/Risks:
+ Relative Obstacles/Risks
- Relative Obstacles/Risks
• Economic Instability / Lack of Finance
• Visas permit to grant access to potential
markets (i.e.: Iran, Azerbaijan)
• Few Investor for 4 months seasons
• Claims over expropriated land plots.
• Political Instability
• Weak economy and fear to invest
• Capital Flight
• Perceived Political Corruption
• Potential Social Turmoil
• Law out of the European System
• Lack of transparency in permitting
• Neighboring conflicts
affect:
• Political Perceived
stability
• Investment Safety
• Legal Effectiveness
and transparency in
permitting.
Legal
Few Investors
Lack of Finance
Political Risk
Main Obstacles for Tourism
Development Map

6. Obstacles/Risks:
+ Relative Obstacles/Risks
- Relative Obstacles/Risks
• Economic Instability / Lack of Finance
• High Level of corruption affecting
permitting.
• Out of UE affecting investment
regulations and safety
• Claims over expropriated land plots.
• Neighboring conflicts affect:
• Political Perceived stability
• Investment Safety
• Legal Effectiveness and
transparency in permitting
• Terrorist Threats.
• Recent social Turmoils
• Weak Banking System
• Political Instability (2 Cyprus)
• High Level of Perceived Political
Corruption
• Lack of transparency
Legal
Few Investors
Lack of Finance
Political Risk
Main Obstacles for Tourism
Development Map

7. Obstacles/Risks:
+ Relative Obstacles/Risks
- Relative Obstacles/Risks
• State Unrecognized by 95 UN
Members
• Countries Currently Facing
Active Armed Conflicts
• High Level of Perceived Political
Corruption
• Potential Social Turmoil
• Lack of transparency in permitting
• Lack of VISA permits’ agility
• State Controlled Economy
Legal
Few Investors
Lack of Finance
Political Risk
Main Obstacles for Tourism
Development Map

8. Where and What can be found key development
opportunities?
- Activity
Established
Destinations
Established
Destinations
+ Activity
Emerging and Existing Destinations
Existing Destinations
• Main Gateway Cities
• Including Athens & Istanbul
• Existing or new properties
• Mixed used considered
• Management widely accepted
• Rentals normally preferred.
• Franchises Welcomed
• Prime Locations
• Urban Hubs / Established
Resorts
• New Developments for resorts
• Opportunities in
Military Existing plots
and buildings
• Existing properties for
Urban developments
• Well established destinations with a proper
sales force to compensate seasonality
• New Developments Preferred
• Mixed Projects start to be considered
again with caution
• Guaranteed Management / Rentals
Preferred.
• Main Gateway and Capita Cities + Well
established destinations with a proper sales
force to compensate seasonality
• New properties
• Local Equity Availability plus some Institutional Finance.
• No Mixed Use
• Management accepted
• Rental Preferred
• Second residences
investors prefer
established markets
• No Mixed Use
• Franchise over
Management
• Little Hotel Value to
sustain mixed
projects

9. Finance and Investment Analysis
- Activity
Established
Destinations
Established
Destinations
+ Activity
Emerging and Existing
Destinations
Existing Destinations
• Foreign and Local Equity and
Finance Availability
• Foreign capital seeks mainly
development
• Asian Equity eager for
management as well
• Lack of Private Equity or Finance
• Banks focus on new developments
• Institutional Investment may be Available
• Active players are mainly local:
• Looking to enter at the cycle’s bottom
• Local Equity Availability plus some
Institutional Finance.
• Middle East Sovereign Funds
• Some Private Local Equity
• Middle East / Russian Private
Equity
• Foreign & Local Equity Availability • EPC Costs
Difficult to
control
• P&L Difficult to
Compare
• Chinese & Russian Institutional
Funds
• Infrastructure Preferred.