Russia sets date for construction of $3bn city

Construction on Russia’s ambitious ‘city of millionaires’ is due to start by the end of this year. Rublyovo-Arkhangelskoye, just outside Moscow, is the largest mixed-use development project in Russia. It will house 30,000 people with a total construction area of 2.7m sqm and is planned to be built just 3km from Moscow on a 430-hectare area.

The project will cost more than $3bn. It has been developed by British architectural firm John Thomson & Partners. Among its various features will be a ‘historic’ centre comprising a citadel, old town, fishermen’s village and villas in the woods. It will also contain a business park.

Oleg Lipatov, general director of the project, says the preparatory phase is close to completion, including planning and approvals. A group of international and Russian architectural companies have been commissioned with planning the various districts of the town and other elements of infrastructure necessary for the first phase.

Higher number of foreign tourists expected in Bulgaria this year

Between three and five per cent more foreign tourists are expected to visit Bulgarian summer resorts this season. The increase will mainly come from the Russian and the British tourism market. A drop in the number of German tourists visiting the country was also noted by the State Agency for Tourism (SAT).

However, the rise in foreign tourists this year will be lower than the increase for the previous season. Bulgaria lost German tourists because of coastal over-construction and the repair works that go on throughout the summer season the agency said. But this year construction has been banned throughout the season.

Meanwhile, a recent report by Agence France-Presse has noted that the lack of control over construction in Bulgaria has led to inconsistencies and outrageous developments with hotels being constructed on the beach itself north of Varna. The agency quotes a hotel owner from Golden Sands resort who believes that a number of hotels were constructed without profit intentions but for the sole purpose of money laundering.

German, British and Scandinavian tourists that have been visiting Bulgaria every summer for several years also commented in the report that they have noted the changes and destruction of nature from over-construction.

Money flowing in to Egypt

FDI inflows in Egypt are set to reach $5bn and GDP growth to clock in at 6%, according to JP Morgan, the international investment bank.

Governor of Bank of Spain issues a warning

The Governor of the Bank of Spain, Jaime Caruana, has warned Spaniards to exercise greater caution before taking on anymore debt, because he foresees tougher world economic conditions ahead.

Destiny USA

Plans to turn Syracuse into a leading entertainment and technology city have been approved.

The project includes an expansion of the Carousel Center into the country's largest shopping centre and a 1m sq ft (93,000 m²) technology complex several miles to the north, in the town of Salina.

According to the plans, over 4.5m sq ft (400,000 m²) will be devoted to the construction of 13,000 hotel rooms, an indoor aquarium, an indoor recreation of the Erie Canal, a stadium and performing arts centre, three golf courses, a 100 acre (400,000 m²) glass-enclosed indoor park, and a 20 acre (80,000 m²) artificial lake. The Pyramid Company claim this resort would create approximately 120,000 new jobs and bring millions of tourists to the Syracuse area.

Completion for the projects have been earmarked for 2008.

Ryanair announce twenty new routes to Morocco

Ryanair has followed Easyjet's lead and announced that it intends to set up new flight routes to Morocco.

Ryanair has committed to opening up twenty new Moroccan routes, with the aim of delivering one million passengers a year by 2011.

Deputy chief executive Michael Crawley reportedly said: "This represents a singularly important initiative in the development of tourism and business for the country. The government has recognised that low cost air access is a growth vehicle for tourism throughout Europe and by joining the open skies regime and embracing Europe's leading low fares airline, the government in Morocco has made a clear statement about its intentions to develop its tourism industry in the next five years."

Crawley added: "Ryanair's commitment to establish up to 20 routes and carry close to one million passengers per annum on flights to Morocco is a vote of confidence by the airline in the excellence and attractiveness of Morocco as a destination both for weekend breaks, mid-week trips and longer holidays."

Romanian property prices "exaggerated"

Romanian property prices are appreciating at an unsustainable rate, according to Mugur Isarescu, the governor of the National Bank of Romania.

Speaking at the recent Southeastern European Financial Forum, Isarescu said: “We have an assets bubble in the north of Bucharest. One does not need to be an analyst to see that the price of land and houses is exaggerated,”

Bank of Estonia Predicts impressive economic growth

The Estonian economy escalated by 9.8% in 2005, according to official figures from the Bank of Estonia (Eesti Pank).

The bank's latest quarterly bulletin now forecasts economic growth of 8.1% in 2006, 7.6% in 2007 and 6.9% in 2008.

However, despite this impressive economic growth, the inflation rate is predicted to fall to 3.6% in 2006 and to 3% in 2007.

Darren Goodson, author of 'How to profit from one of the biggest property booms in Eastern Europe' says: "The impressive growth of 9.8% last year will most certainly have a positive impact on the property market in Estonia, especially in Tallinn.

"In terms of FDI, which incidentally more than doubled last year, 82% is actually invested in Tallinn. Also you will find that around 60% of the entire country's GDP is also produced in the Tallinn area.

"The growing economy means more new businesses and more new jobs, wages in Estonia increased by 12% in 2005.

"Last year, average Estonian property prices rose by 30% and up to 50% in the city centre area. I forecast a 15-20% price increase for 2006 and 20-25% increase during 2007 in the lead up to joining the euro."