Mongolia should give a positive signal to foreign investors in the development of elite hotels. The hotel creates an important business infrastructure and places for international conferences.
In some places, 4 US dollars are spent on tourists. $ 1 per dollar. The dollar reaches the poor. High-class hotels provide an average of 1.5-3 workplaces in a hotel room and generate a significant portion of tax revenue.
The private financial market does not want to finance investments in the hotel because of such risk factors as country’s instability and political economy, seasonal characteristics, unstable cash flow and rapid investment in investments. This should include IFC and other investors.
Private sector investments will come after successful investment by IFC.
IFC Investment in Mongolia
• Business: Shangri-La Hotel is a luxury hotel and resort located in all corners of the world.
• Differences in the market: this is a hotel and a shopping center in Mongolia, which is the first international standard in Mongolia and contributes to the business and tourist infrastructure of Mongolia.
• IFC financing: a loan of $ 50 million.
• Impact on development: The aim of the project is to increase the provision of services in hotels to meet the needs of the five-star hotel sector in Ulaanbaatar and create a community of direct and indirect jobs. It will also support SMEs, including the procurement of materials, services and labor from local sources during the construction and operation phases, as well as with various goods and services. In addition, the Shangri-La hotel in Ulan Bator will provide a positive signal to foreign investors planning to invest in Mongolia.
It is hoped that the project will increase productivity
1. High professional level of work
2. International degree
3. Quality of construction.