By Korston Group. Sochi-World - Scope SOCHI OLYMPIC DEVELOPMENT Sport Complexes Hotel & Convention...
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Transcript of By Korston Group. Sochi-World - Scope SOCHI OLYMPIC DEVELOPMENT Sport Complexes Hotel & Convention...
World ochi
By Korston Group
S
Sochi-World - Scope
SOCHI OLYMPIC DEVELOPMENT
Sport Complexes
Hotel & Convention Entertainment Olympic
VillageInfrastructure
Sochi-World
Sport Complexes
Hotel & Convention Entertainment Olympic
VillageInfrastructure
Sochi 2014Winter Olympic
Sochi-World Worldwide Tourist Destination
Sochi-World - Timeline
SOCHI OLYMPIC DEVELOPMENT
Sochi-World
Sochi 2014Winter Olympic
Sochi World Worldwide Tourist
Destination
2010-2013Planning
IOCCompliances
General Management
LogisticsSustainability
Long TermFeasibility
Support(Hotels, Resort)
General Management
Sochi-World Goals – Mission
• Create Sochi-World as a world wide Exhibition,
Convention and Leisure Tourism Destination
• Supporting Sport events beyond 2014 Winter
Olympics
• Protection asset value
• Return on investment
Sochi-World Goals - Vision
• Became the Leading European Convention Exhibition, Sport and Entertainment Destination:– 10 Top International / European Sport Events per
year.– Host National Sport Events and Championships– 35 World Exhibition per year. Total 3 million
visitors.– One million Convention delegates per year.– One million Room nights.
Sochi-World Goals – SWOT AnalysisSTREANGTH• All year destination• Winter sport & summer sport destination • Established VIP and official vacation destination
OPORTUNITIES• Russians favor for an own top truism destination• Russia growing outgoing tourism market• Olympic Games helps to create international brand
WEAKNESS• Unstable weather• Underdeveloped• City and regional infrastructure
THREATS• Too far from European center• Visa regime• Instability in the Caucasus Region
Sochi-World Goals – SWOT AnalysisSTREANGTH• All year destination• Winter sport & summer sport destination • Established VIP and official vacation destination
OPORTUNITIES• Russians favor for an own top truism destination• Russia growing outgoing tourism market• Olympic Games helps to create international brand
WEAKNESS• Unstable weather• Underdeveloped destination• City and regional infrastructure
THREATS• Too far from European center• Visa regime• Instability in the Caucasus Region
Integrated Infrastructure
Gaming Zone
Duty Free Zone
Single Management Company
Visa Free Zone
Sochi-World – Strategy
• Integrate infrastructure • Single management company• Duty Free status• Visa Free regime• Gaming zone
Strategy – Integrate Infrastructure
• Olympic Area– Sport Stadiums, Circus
• Resort Area I– Hotels (3*): 2100 rooms, family entertainment (Aqua park,
Amusement Park, Shopping)• Resort Area II
– Hotels (4*, 5*) 2400 rooms, Convention space (20’000 m2) & Exhibition Center (40’000 m2) , SPA, Shopping, Casinos
• Common Infrastructure– Internal transportation system CO2 emission free– Supporting services: laundry, central warehouse, etc– Engineering systems (autonomy): electro-generation, boiler, etc
Strategy – Integrate Infrastructure
Olympic Area Resort Area IResort Area II
Strategy – Single Management Company
• Manages all the facilities and staff– Runs the hotels, convention, exhibition and
entertainment– Supports sport events
• Commercializes the facilities– Operates (hotel, entertainment, convention)– Rents facilities (shopping, sport)– Marketing (promotes and advertize)
• Provides Security and Safety and Regimes• Ensures technical and engineering work
Sochi-World Strategy – Duty Free Status
• Applies to all Sochi-World territory• Entitles retail selling only (no wholesale)• Has a similar regime as in international
airports• Custom controls in the accesses• Possibility of including or excluding the
Olympic Area from the free zone
Sochi-World Strategy – Visa Free Status
• Applies to all Sochi-World territory• Migration check-points at all accesses• Foreign citizens can come without visa direct from
Airport transit area by special transfer• Russian and CIS citizens go in and out with internal or
external passport• Foreign citizens with visas can come or go according
to their visa statuses• Russian Consular officer on duty on the territory• Possibility of including or excluding the Olympic and
Resort I Areas from the free zone
Strategy – Gaming zone
• Gaming zone to be crated in part of Sochi-World territory– Excludes Olympic and Resort I Areas
• All gaming operated by Sochi-World Management Company
• Compliances with law– 18 y. o.– Possibility of exclude compulsive gamers by court
order.
Strategy – complex approach
Strategy Impact inImage
Impact in Visitor Count
Impact in Revenue
Impact in Cost
Impact in Profit
IntegratedInfrastructure
Sochi-World perceived as one Destination
Increases total headcount, Maximizing multiple use
Up to 15% more
Investment Savingsup to 10%,Operating savings 5%
Increases by 40%
SingleManagement
Stronger Promotion of the brand, by consolidating marketing resources
Up to 25% more, byavoiding price dumping
Savingsup to 10%by pooling resources
Increases by230%(reduces pay back period three times)
Strategy – exploiting opportunities
Strategy Impact inImage
Impact in Visitor Count
Impact in Revenue
Impact in Cost
Impact in Profit
Duty FreeZone
Positive associations“modern” “special”“international”
Increase Local
Up to 23% Up to 70%
Visa FreeZone
Positive associations “visitor friendly”“international”
Increases International Up to 30% Up to 50%
GamingZone Up to 80% Up to 300%
Sochi-World - Management Company proposal
• Korston Group is ready to form, finance and support the creation and operation of Sochi-World Management Company
Korston Group – Highlights
• More than 1000 Rooms under management• More than 20’000 m2 Convention space • 25 Restaurants• 40’000 m2 in Entertainment Center• 100’000 m2 Shopping Centers• 600’000 m2 Under development in Russian
Regions• Shareholder of Nizhny Novgorod Trade Fair• Employees: 1’500 (3’500 before July 1st 2009)
Korston Group – Management TeamAREA Years Experience
Anatoly Kuznetsov(Russia)
President 30 Entrepreneur: Hotel, Casino, Trade, Retail, Entertainment, Development, Construction
Lisandro Platzer(Argentina)
Strategy 15 Executive: MBA, Hotel Chains, Development, Casino, Strategy, Consultancy, IT
Hans Stohs(Austria)
BusinessDevelopment
40 Executive: Development, Hotel, Congress, Resorts, Over 30 openings in 19 countries.
Clive Tilley(UK)
Gaming 20 Entrepreneur: Gaming, Hospitality, Entertainment
Alain Bourdin(France)
Finances 30 Executive: MBA, Finances, Banking, IT, Sport
Giordano Borri(Italy)
Operations 20 Executive: Hotelier, Resort, F&B Congress, Marketing, Sport, Leisure
Yuriy Kosenko(Russia)
Security 30 Major General (R), Security Services
Denis Monolenko(Russia)
Legal & administration
5 Legal Counsel, Corporate Governance, Property Rights, Investment
Korston Group – Key Factors
• Russian Company– Transparency
• Required experience– In all the Areas– International– Comparable sizes of operations
• Readiness– To deploy required manager team (7 days)– To supply 300 million Rubles to the Management
company (5 days)
Schedule of Interaction – Three Stages
SOCHI 2014 OLYMPIC COMITEE
Sochi-World Management Company
Sochi 2014Winter Olympic
Sochi World Worldwide Tourist
Destination
2010-2013Planning
IOCCompliances
General Management
LogisticsSustainability
Long TermFeasibility
Support(Hotels, Catering)
General Management
Schedule of Interaction – Stage II (Games 2014)
SOCHI 2014 OLYMPIC COMITEE
Sochi-World Management Company
Winter Games Sochi 2014
Security & Safety
2014 Winter OlympicsGame Administration
F&B Catering
Hotel Management
Logistics
Korston Group
RussianGovernment
SportAuthorities
Asset Owners
Infrastructure Management
Games MarketingTicket Sales
Transportation
Olympic VillageManagement
Accreditations
Media Center
Schedule of Interaction – Stage I (till 2013)
SOCHI 2014 OLYMPIC COMITEE
Sochi-World Management Company
2010-2013Planning
IOC Compliances
2014 Winter OlympicsRequirements Long Term Feasibility
Sustainability
Logistics
Soch
i-Wor
ld
Bran
d Co
ncep
t
Korston Group
RussianGovernment
SportAuthorities
Asset Owners
General PlannerOlympic Objects
PlanningHotels & Other
Facilities Planners
CoordinationBoard
Sochi-World - Organization Structure
Sochi-World
Sport Complexes
Hotel & Conventions
Entertainment& Shopping
Infrastructure& Security
Sochi-World Management
Company
Korston Group
Asset Owners
RussianGovernment
SupervisoryBoard
SportAuthorities
Asset Owners
Sochi World Worldwide Tourist
Destination
Next Steps
• Government act• Management company to be created• Management agreement• Korston immediately assisting with planning
and project management