REGISTRATION FORM FOR PROJECTS DATABASE FOR TERRITORIAL

DEVELOPMENT PLANNING
1. PROJECT NAME
Clustering and Partnerships Development Center
2. APPLICANT OF THE
PROJECT / PROPONENT OF
THE PROJECT
3. PROJECT DESCRIPTION Gabala, as one of the most beautiful places of Azerbaijan is the
second tourism center of Azerbaijan after Baku. It is worth noting that
Gabala is the most advanced tourist destination in the country
attracting both domestic and international tourists. In 2017-2018,
number of foreign tourists in Gabala increased from 79123 to 137202
while domestic tourists decreased by 10% (from 61194 to 55327).The
district has a developed tourist infrastructure, including Tourist
Information Centre, the Gabala Tourism and Hotel Business Vocational
Training Centre and more than 100 large and small tourism facilities
available in Gabala.The district is an attractive destination for skiers,
hikers,mountain sports seekers, tourists visiting cultural and historical
places, and festivals or events with differente importance. However ,
the experience of a tourist is still based on the overall impression of the
destination visited,which means that the guest may not return to the
hotel,even if the stay was excellent if for instance the restaurant
nearby offered poor service.Therefore,the development of the
destination means much more than individual tourism business’
potential,so that achieving growth lies outside the power and the
influence of one or a few specific companies. From that point of view, a
well-working system of players can create added value in any sector.A
typical example of it is a tourism cluster.For example,the quality of a
visitor’s experience depends not only on the appeal of the primary
attraction but also on the quality and efficiency of complementary
businesses such as hotels,restaurants,shopping outlets,and
transportation facilities.Because members of the cluster are mutually
dependent ,good performance by one can boost the success of the
others.This means that operators in tourism and travel industry can
increase their collective markets and capacities by working
together.Destinations like clusters generally arise naturally,but may
need to be developed to reach their fulliest potential.Their course of
development may be influenced by a number of factors,such as strategy
plans,government support and investments in infrastructure or joint
marketing efforts.The interdependence of attractions, services,
transportation,information and promotion highlights the need for
collaboration and it is evident that companies locatd in a destination
have a lot to gain from being located in close proximity.To this end, this
project aims to establishment of clustering in the tourism sector
through ecouragement of entrepreneurs from this sector with various
initiatives such as awareness raising,technicall assistance,public private
partnership support and so on.In order to facilitate this goal a
Development Center wil be established in the district for entrepreneurs
 and various stakeholders who will be trained in this center on all
aspects and benefits of cluster approach.Consultancy services will also
comprise ,start-up development,marketing,accounting ,law, and
different advisory servicees.The center will remain operational even if
the region becomes a real active tourism cluster.One of the main
purposes will be establishment of intersectoral cooperations among
entrepreneurs from different sectors within this Center.
3.1. The purpose of the The purpose of the project is :Supporting the development of
project sustainable tourism sector
3.2. Project objectives Describe the meaning of the project?

Project wants to achieve the following objectives:

OO – Overall Objective: Supporting tourism and hospitality

sector actors to develop cohesively in fully operational tourism
cluster

SO, 1 – Specific Objective 1: Creation of cluster development

training centre

SO, 2 – Specific Objective 2: Supporting intersectoral

cooperation initiatives

3.3.Project Activities Specific project activities and their cost include:

(A.1.) Establishment of the training center. (145,000 Euro)

(A.1.1.) Allocation of the place for the building.
(A.1.2.) Pre-feasibility study for the center
(A.1.3.) Contracting with a construction company.
(A.1.4.) Construction of the building.
(A.1.5.) Opening of the center and hiring staff

(A.2.) Conducting awareness raising activities.(85,000 Euro)

(A.2.1.) Organization of meetings and workshops with
stakeholders to explain the advantages of clusters.
(A.2.2.) Organization of meetings with different groups of
stakeholders to explain the services provided by the new
Center.
(A.2.3.) Organization of study tours for the member
stakeholders of the Center to foreign countries specialized in
tourism clusters
(A.2.4.) Publishing of learning materials for members.

Total budget is 230,000 Euro

3.3. Project field

 Economic
 Education
 Tourism
 R&D
4. THE AREA WHERE THE
PROJECT IS RUNNING Gabala district, Azerbaijan
5. IN WHICH PHASE IS THE
PROPOSED PROJECT
 Project idea
 Project fiche
 Prefeasibility study, engineering design, cost estimate;
 Feasibility and business plan;
 Financial approval under condition to review and
monitoring
 Main engineering planning, economic impact, detailed
costs, licenses and permits; financing agreement
 Tendering, contracting, and monitoring of works and
implementation

Mark one of the options (or highlight in other way)

6. ENVISAGED START OF 01 January 2021
THE PROJECT

7. TOTAL ESTIMATED 24 Months

DURATION OF THE
PROJECT
8. WHAT IS THE TOTAL
PROJECT BUDGET 230,000 Euro
9. PROJECT FINANCING XX % own funds (funds of the project proponent)
STRUCTURE XX % funds from the state budget and state institutions
___10_% funds from the EU
___60___% State funds
___10___% loan funds
___5__% private funds
__15___% other sources (NGOs)

(For projects that are performed, and have co-financing, enclose confirmation.
For projects that are under construction please give suggestion)s.

10. OWNERSHIP Indicate whether all ownership issues are resolved if the project includes
construction.
QUESTIONS
 Yes
X No

It needs to be discussed with potential stakeholders for identification of

ownership
11. LOCATION AND Indicate whether all location / building permits for the project are provided.
BUILDING PERMITS
o Yes
X No
 If not, you can specify the permissions that can be realistically obtained within 6
months

12. ADDITIONAL Please indicate here if you will need additional technical assistance support and if
yes, please indicate concrete support
TECHNICAL ASSISTANCE
REQUIREMENTS
X Technical assistance in engineering
X Technical assistance in finance
X Technical assistance in feasibility study
X Technical assistance in environment and economic impact
study

13. PLACE AND DATE OF Baku, July,2020

THE PROJECT PROPOSAL
14. CONTACT PERSON
PROPOSING THE PROJECT SRRD Project