MOSCOW, May 29 (RIA Novosti) - Metals magnate Mikhail Prokhorov has no plans to build a "seven star" hotel on Turkey's Aegean coast, a spokesman for the billionaire's investment vehicle Onexim said on Friday.

The Milliyet daily said earlier Friday that construction work in Cheshme, on the outskirts of Izmir, is expected to start in September.

"It is untrue. We have no such plans and they have not even been discussed," the spokesman said.

The businessman plans to build a water sports center there, however, the spokesman said.

"Onexim owns a plot of land on the Turkish coast and plans to build infrastructure for water sports, particularly windsurfing. The group requested planning permission for that from the Turkish authorities," the spokesman said without giving any details on the timeline and the amount of investment in the project.

According to the Turkish Tourism Investors Association, Russia's investment in the country's tourist industry has reached $2.5 billion, mostly in hotels on the Mediterranean and Aegean coasts.

Turkish media said last week that the Mardan Palace luxury hotel owned by Russian billionaire Telman Ismailov had opened in Antalya at a cost of around $1.5 billion.

Russians "offer good prices, primarily in Antalya. New investment is expected," the association said.

Turkey is a popular destination for Russian tourists. In 2008, 2.8 million Russians visited Turkish resorts.