December 16, 2020
Construction of hotels in Kazakhstan
- Legislation of the Republic of Kazakhstan in the field of hotel construction
- Features of the implementation of hotel construction: a brief overview
1. Legislation of the Republic of Kazakhstan in the field of hotel construction
The hotel business, being one of the components of tourism, is an important aspect in the development of the country’s economy and the spread of the culture of the people. Kazakhstan is known for its active participation in organizing meetings, negotiations within the framework of participation in international organizations and the international exhibition EXPO-2017. The current course of the state is the development and maintenance of tourism and hotel business. In this connection, the topic of building hotels in Kazakhstan is of great interest among investors.
The construction of hotels on the territory of the Republic of Kazakhstan is regulated by the following regulatory legal acts:
– Code of the Republic of Kazakhstan dated July 7, 2020 No. 360-VI “On Public Health and Healthcare System”;
– Code of the Republic of Kazakhstan dated 20 June, 2003 No.442 “Land Code of the Republic of Kazakhstan”;
– The Law of the Republic of Kazakhstan dated 16 July, 2001 No. 242 ” On Architectural, Town-planning and Construction Activity in the Republic of Kazakhstan”;
– The Law of the Republic of Kazakhstan dated 13 January 2012 No. 541-IV “On Energy Saving and increase of Energy Efficiency”;
– order of the Chairman of the Committee for Construction, Housing and Utilities of the Ministry of Investment and Development of the Republic of Kazakhstan dated June 12, 2018 No. 131-nқ. “On approval of building codes of the Republic of Kazakhstan” (Registered with the Ministry of Justice of the Republic of Kazakhstan on July 4, 2018 No. 17157);
– order of the Minister of National Economy of the Republic of Kazakhstan dated November 30, 2015 No. 750 “On approval of the Rules for organizing construction and passing licensing procedures in the construction sector”;
– decree of the Government of the Republic of Kazakhstan dated August 28, 2013 No. 876 “On approval of the list of facilities of the Republic of Kazakhstan vulnerable to terrorism”;
– decree of the Government of the Republic of Kazakhstan dated April 3, 2015 No. 191 “On Approval of Requirements for the System of Anti-Terrorist Protection of Terrorist-Vulnerable Objects”;
– order of the Minister of Tourism and Sports of the Republic of Kazakhstan dated November 11, 2008 No. 01-08/200 “On approval of the Rules for the classification of tourist accommodation” (registered in the Register of State Registration of Normative Legal Acts No. 5367);
– order of the Minister of Energy of the Republic of Kazakhstan dated March 20, 2015 No. 230 “On Approval of the Rules for the Installation of Electrical Installations” (registered in the Register of State Registration of Normative Legal Acts under No. 10851);
– order of the Minister of Internal Affairs of the Republic of Kazakhstan dated November 29, 2016 No. 1111 “On approval of the Technical Regulation “Requirements for equipping buildings, premises and structures with automatic fire extinguishing systems and automatic fire alarms, warning and people evacuation management in case of fire” (Registered with the Ministry of Justice of the Republic of Kazakhstan on March 7, 2017 No. 14858);
– order of the Minister of Internal Affairs of the Republic of Kazakhstan dated June 23, 2017 No. 438 “On approval of technical regulations” Requirements for the safety of fire fighting equipment for the protection of facilities “(registered in the Register of State Registration of Normative Legal Acts under No. 15511);
– order of the Minister of Internal Affairs of the Republic of Kazakhstan dated June 23, 2017 No. 439 “On approval of technical regulations” General requirements for fire safety “(registered in the Register of State Registration of Normative Legal Acts under No. 15501);
– ST RK 12.4.026 “Signal colors, safety signs and signal markings. General technical conditions and application procedure”.
2. Features of the implementation of hotel construction: a brief overview
Before carrying out the construction of the hotel, it is necessary to purchase a land plot on which the construction of the facility is supposed to be. Often, the construction of hotels / hotels in Kazakhstan is carried out at the expense of investors and foreign construction companies.
2.1. Favorable conditions for investors in the construction of hotels
The Resolution of the Government of the Republic of Kazakhstan dated February 28, 2013 No. 192 “On the draft Decree of the President of the Republic of Kazakhstan” On approval of the Concept for the development of the tourism industry of the Republic of Kazakhstan until 2020 “contains a provision that creates a favorable “climate” for investors intending to build a hotel in Kazakhstan. when allocating a land plot to an investor for the construction of hotels, the state guarantees the safety of their investments and ensures access to financial resources for appropriate investments by the following alternative mechanisms:
a) the creation of legal instruments for the acquisition of private ownership of land plots by investors in order to develop tourism projects, with the exception of SPNA (specially protected natural areas) and forest resources;
b) improvement of the existing institute for the long-term use of protected areas and forest resources for the development of tourism projects, including the improvement of the terms of the contract for long-term paid use / forest use of a land plot for the implementation of tourist and recreational activities through the following possible measures:
– increasing the maximum period of long-term paid use / forest use of the land plot;
– provision for automatic extension of the contract for the period specified in the contract;
– restriction of the rights of the authorized body to terminate the contract unilaterally, at the same time, in the event of termination of the contract on the initiative of the state in the absence of any violations on the part of the investor, the provision of compensation payments in an amount that reasonably justifies the investor’s investments;
– in the absence of serious violations on the part of the investor of the terms of the contract, an increase in the notification period (of refusal to extend the contract) for a longer period (from 5 to 10 years), such a notification must contain a justification for the refusal and be agreed with the interested state bodies, including those who originally participated in issuing a permit for the use of a land plot;
– providing for the possibility of transferring the rights and obligations of forest use for the purposes of the tourism project to third parties, subject to the continuation of the project;
c) at the same time, as an alternative measure when providing land plots for use or ownership, it is proposed to provide investors with an option to use/purchase a land plot;
d) permission for the construction of seasonal buildings and light architectural forms (coastal cafes) on land plots of waterways without the use of heavy building materials.
2.2. Hotel construction procedure
- obtaining a land plot for the construction of a facility;
- obtaining initial materials for the development of construction projects;
- development and approval of a sketch (draft design);
- development of design and estimate documentation and conduct of a comprehensive non-departmental examination of construction projects;
- notification of the authorities exercising state architectural and construction control and supervision of the commencement of construction and installation works, construction and installation works;
- acceptance and commissioning of the constructed facility.
Obtaining a land plot for the construction of a facility
First of all, the construction of a hotel begins with the selection of a land plot. The selected land plot is drawn up by an act on the selection of the land plot by the authorized body (at the location of the land plot). According to the provisions of the Code of the Republic of Kazakhstan dated 20 June, 2003 No.442 “Land Code of the Republic of Kazakhstan”, this procedure is carried out within 10 (ten) working days and is sent to the land commission for consideration and preparation of an opinion and land management project on the granting of land rights
Selection of LP→ act on the selection of the LP → land commission → opinion + land management project on the granting of land rights
Further, the local executive body makes a decision, which necessarily contains the following:
– the name of the legal entity or individual who is granted the right to land;
-the purpose of the land plot;
-the area of the land plot;
-the type of land rights, encumbrances, easements;
– the redemption price of a land plot or land use rights in the case of granting a plot for a fee, terms and conditions for concluding contracts for the sale and purchase of a land plot;
– last name, first name, patronymic (if any) of an individual or the name of a legal entity from which land plots are being seized, expropriated for state needs, indicating their size;
– information about the divisibility (indivisibility) of the land plot;
For small businesses, the purpose of a land plot for construction, regardless of the type of activity, is established as the maintenance of buildings (structures and structures).
Development and use of land plots are allowed in strict accordance with the intended purpose, as reflected in the title and (or) identification documents for land plots. It is important to note that construction without approved design (design and estimate) documentation is not allowed, unless otherwise provided by the Law.
Prior to the commencement of construction and installation work, the customer must notify the authorities exercising state architectural and construction control and supervision of the start of construction and installation work.
The construction of facilities, with the exception of cases provided for by law, is carried out:
– with the obligatory accompaniment of designer and technical supervision;
– in accordance with the design (design and estimate) documentation passed in the prescribed manner.
When carrying out preparatory work at the construction site, it is necessary to place a signboard with a construction passport, which should reflect information about customers, contractors, authors of the project, persons exercising designer supervision and technical supervision, information about the construction and installation work performed (including the timing the beginning and completion of construction).
Completion of construction means the possibility of unhindered acceptance and commissioning. Thus, the acceptance and commissioning of the hotel is carried out by the customer when it is fully prepared in accordance with the approved project and in the presence of a declaration of conformity, conclusions on the quality of construction and installation works and the compliance of the work performed with the approved project.
Operation of the constructed object without an approved act of acceptance of the object into operation is not allowed.
Further, the basis for registering an object in a state body that registers rights to real estate is an approved act of acceptance of the object into operation, registered in the structural unit of the local executive body performing functions in the field of architecture and urban planning.
2.3. Building codes: important aspects
Building codes are detailed in the provisions of the order of the Chairman of the Committee for Construction, Housing and Utilities of the Ministry of Investment and Development of the Republic of Kazakhstan dated June 12, 2018 No. 131-nқ. “On approval of building codes of the Republic of Kazakhstan”.
The legislator establishes a very reasonable functional requirement for the designed hotel buildings, which consists in creating conditions for safe and comfortable living.
Hotel buildings are designed and constructed in such a way that during its service life, when people live and stay in them, there is no threat to human health associated with the presence of pollutants in the indoor air, microclimate, lighting, insolation, sun protection, noise, vibration and radiation.
The construction of hotels must strictly comply with the requirements set out in:
– TR “General requirements for fire safety”;
– TR “Requirements for equipping buildings, premises and structures with automatic fire extinguishing and automatic fire alarm systems, warning and evacuation control in case of fire”;
– TR “Requirements for the safety of fire fighting equipment for the protection of facilities”;
– state standards in the field of architecture, urban planning and construction.
Some of the requirements of the legislator are of particular interest, some of which are:
- with a building height above 50 meters, fire-safe zones are provided. The buildings are equipped with a complex of fire protection systems. On the covering of the upper floor of the building, a site is provided for rescuing people by firefighting helicopters;
- placement of dry heat baths on residential (except for one- and two-storey buildings) and underground floors is not allowed. In the residential part of hotels, it is allowed to place baths with wet processes (wet, steam, herbal and others);
- guarded parking lots are provided for hotels of 3 “stars” category and higher;
- for hotels with a capacity of up to 30 places of categories 1 “star” – 2 “stars” entrances and communications combined with other enterprises and institutions are allowed;
- when designing hotels with a capacity of more than 100 beds and in hotels of 3 “stars” and higher categories, it is necessary to exclude the combination and intersection of economic and production routes (loading, etc.) of the internal institutions of the hotel with the routes of residents and visitors;
- placement of living quarters in basement and basement floors is not allowed;
- in hotels with a category of 3 “stars” and higher, Internet access is provided;
- on the residential floors of hotels of categories 1 “star” – 2 “stars” it is allowed to arrange public premises (bars, cafes, buffets, television lounges, rooms for business meetings, children’s rooms, etc.), provided that the noise protection of the residential premises;
- in hotels of 4 “stars” – 5 “stars” curtains of hot air are provided to protect against temperature extremes, in hotels below 4 “stars” these curtains are preferable.
3. Hotel business in Kazakhstan: current situation
In the hospitality industry, as a rule, the comfort and safety of the client and / or guest plays an important role. As noted earlier, building codes also highlight an important functional requirement for hotel construction in Kazakhstan.
Each potential client / guest, when choosing a hotel, pays attention to the number of stars. At least the international hospitality practice shows a similar trend, which has become a custom among tourists. The category, or star rating of the hotel, is determined by each state independently, but it is recommended to take the recommendations of the World Tourism Organization as a basis.
So, when determining the number of stars, the minimum requirements for the hotel are taken into account – for the building and the surrounding area, technical equipment, rooms, public sanitary facilities, premises for the provision of catering services, for personnel and their training. However, in Kazakhstan, obtaining such a category / star rating is not a mandatory requirement for a hotel, but represents only a recommendation. Therefore, hotel owners have the right to independently decide on the passage of the category.
Mrs. Khodorovskaya (representative of the Kazakhstan Association of Hotels and Restaurants) in her interview for Kursiv.kz mentioned the statistics of “star rating” of hotels in Kazakhstan. According to the Kazakhstan Association of Hotels and Restaurants, at the end of 2018, out of a little more than three thousand organizations, only 23 hotels had five stars, four – 79, three – 120, two – 24 and one – 14 hotels. In total, the share of hotels with a star was only 7.8% of the total number of placements.
The UN World Tourism Organization has determined the course of tourism for 2020 with a focus on the development of rural tourism. The situation with COVID-2019 has made significant adjustments in the field of tourism and hospitality. In this connection, the countries have sought to support local tourism, despite a sharp decline in tourist flow and hotel occupancy rates.
Following this course, Kazakhstan actively developed directions to Alakol, Balkhash, the Caspian Sea, Burabay and Kapchagai. In addition, the city of Turkestan has received tremendous development. For example, the Rixos Khadisha Turkestan hotel was built in the city of Turkestan, and this summer, the Rixos Water World Aktau was opened in the city of Aktau.
Thus, the choice of the course by the state in the development of tourism directly affects the prospects for the development of the hotel business. During the construction of hotels in Kazakhstan, it is necessary to carry out all the step-by-step stages set out in the above-mentioned regulatory legal acts in strict compliance with building codes and regulations.