Development of Snow Park in Bangalore
Transcription
Development of Snow Park in Bangalore
GOVERNMENT OF KARNATAKA INITIATIVE DEVELOPMENT OF SNOW PARK IN BANGALORE PROJECT REPORT Detailed Project Report TOURISM PROJECTS FOR INVESTMENT OPPORTUNITIES INVEST KARNATAKA 2016 January 2016 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Table of contents 1. Introduction ....................................................................................................... 4 1.1 Background .............................................................................................................................. 4 1.2 Objectives ................................................................................................................................ 4 1.3 Approach and Methodology .................................................................................................... 5 2. Overview of Bangalore City ........................................................................... 8 2.1 Advantage of Bangalore........................................................................................................ 10 2.2 Demography & Population Growth ....................................................................................... 12 2.3 Rise of the Middle Class ......................................................................................................... 13 2.4 Regional Connectivity ............................................................................................................ 15 2.5 Weather and Climatic Influence ............................................................................................ 15 2.6 Infrastructure Initiative.......................................................................................................... 16 2.7 Tourist Footfall....................................................................................................................... 17 2.8 Need of the Project ................................................................................................................ 17 3. Amusement Parks Scenario ........................................................................ 18 4. Project Concept ............................................................................................... 23 4.1 Tourism Policy........................................................................................................................ 23 4.2 Project Component ................................................................................................................ 23 4.3 Project Drivers ....................................................................................................................... 25 5. Suggested Project Location ......................................................................... 26 Road Infrastructure: .......................................................................................................................... 26 Proposed Development: ................................................................................................................... 28 6. Project Implementation Structure ........................................................... 26 5.1 Proposed Implementation Framework ................................................................................. 31 5.2 Types of Private Sector Participation Framework ................................................................. 31 5.3 Recommendation .................................................................................................................. 36 7. Project Financial Viability Analysis ......................................................... 38 2 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE List of Tables Table 1: Overview of Bangalore City ....................................................................................................... 9 Table 2: Urban Branding of Cities ......................................................................................................... 12 Table 3: Urban Household Annual Household ...................................................................................... 13 Table 4: Urban Branding of Cities ......................................................................................................... 14 Table 5: Weather & Climatic Influence in Bengaluru ............................................................................ 16 Table 6: Annual Tourist Footfalls (2014 Tourist Data) .......................................................................... 17 Table 7: Categorization of Amusement Parks in India .......................................................................... 21 Table 8: Comparative analysis of Project Implementation Options ..................................................... 30 Table 9: Base Construction Cost ........................................................................................................... 38 Table 10: Project Cost ........................................................................................................................... 39 Table 11: Details of Snow World Hyderabad ........................................................................................ 39 Table 12: Entry Fee Details of Snow Park ............................................................................................. 40 Table 13: Utilization of Games Facility.................................................................................................. 40 Table 14: Revenue from FEC ................................................................................................................. 41 Table 15: Retail area details .................................................................................................................. 41 Table 16: Capacity of Snow World ........................................................................................................ 45 Table 17: Pricing considerations ........................................................................................................... 46 Table 18: Facilities at Mall of Emirates, Dubai ...................................................................................... 48 Table 19: Admission Prices ................................................................................................................... 52 List of Figures Figure 1: Approach to the study ............................................................................................................. 6 Figure 2: SEC Share across Cities........................................................................................................... 12 Figure 3: Income Groups across Major Cities in India .......................................................................... 14 Figure 4: Proposed Project Implementation Plan ................................................................................. 31 Figure 5: Location of Snow World, Hyderabad ..................................................................................... 43 Figure 6: Location of the Mall of Emirates ............................................................................................ 47 3 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 1. Introduction 1.1 Background Department of Tourism (DoT) Government of Karnataka (GoK) is determined to boost the tourism industry in the state. The Tourism Sector has been identified as one of the key sectors propelling the country’s economic growth. Karnataka State has been ranked as the 3rd preferred destination among domestic tourists in the tourism sector. Karnataka’s thriving economy has created many opportunities across the State in the last decade. For GoK, the tourism sector constitutes a real priority because it is an important sector for the generation of employment, therefore various initiatives are been undertaken with the involvement of all stakeholders, both public and private, that will foster a more favourable environment for the development and consolidation of the tourism sector. One of the initiatives in this direction is the formulation of Karnataka Tourism Policy for 2015-20. GoK intends to encourage the investors to invest in the tourism sector. A host of incentives and concessions are provided to the investors in tourism sector, in the New Tourism Policy for 2015-20. A large emphasize has been laid on enhancing hospitality services and standards, promoting innovative developments and rejuvenation of older tourist attractions, with the aim of offering visitors the experience that will commensurate with higher expectations. With this background, DoT has prepared a shelf of Project Reports of potential tourism projects which could be undertaken for development along with collaboration with the Private sector. Development of Snow Park in Bangalore is one of the projects identified for development. Games offered at snow parks provide a unique experience which people living in tropical climates (Karnataka) do not experience. Snow Parks offer snow setting for skiing, snowboarding and tobogganing or just playing in the snow. Snow Parks are present in Dubai, Singapore, Malaysia and in India at Delhi and Hyderabad. 1.2 Objectives GoK intends to develop the Snow Park in Bangalore to: i. Provide an unique experience to the tourists 4 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE ii. iii. iv. Attract footfalls, encourage extended stays and provide a wholesome experience to the tourists. Encourage entrepreneurship and livelihood opportunities for the locals. Encourage and promote Private Sector Participation in the development of tourism sector. Department of Tourism, Government of Karnataka, the agency responsible for promoting tourism in Karnataka has been at the forefront in attracting large number of tourists to the state and branding Karnataka as a tourist destination. The Unique Selling Proposition of Karnataka Tourism is that it is a “Mini Incredible India” in its tourism offerings. One state encompassing the spectrum of many worlds of tourist interest in one state – be it the heritage and pilgrim centres of the old world, or the Hi-tech IT and Bio-tech of the modern world or the adventure sports of the new world. At one end it is recognized as the “Cradle of stone architecture” of the old civilization and contrastingly on the other, as the “Silicon Valley of India” of the modern e-civilization. The Tourism Policy 2015-20 would act as a catalyst to promote development of tourism infrastructure and related facilities without straining the budget of the state. The utmost importance would hence be given to the developments under Public Private Partnership (PPP) framework. One of the thrust areas of the afore-mentioned policy is the development of Theme and Entertainment Parks/ promoting adventure sports and creating high-end accommodation through various public-private partnership (PPP) frameworks in Bengaluru and other places in Karnataka. One of the key initiatives of DoT in the regard is to explore the possibility of setting up of a large, multi-attraction, integrated theme park in a suitable location near Bengaluru on a Public Private Partnership (PPP) basis on the lines of large international theme parks like Disneyland, Six flags, Universal Studios etc. 1.3 Approach and Methodology The Approach to the entire assignment is depicted in the flow chart below. The detailed analysis and inferences drawn at each stage have been covered in detail in the each of the following sections. 5 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE The overall framework for the assignment is explained in the chart below. The assignment would involve five key activities Case studies of snow parks & theme parks in the region Assessment of the Amusement Park Industry in India / Bangalore Activities, components, footfalls, price points & key learning points Profiling of target population & quantification Assessment of demand, infrastructure & support facilities Design Standards & Development Control Regulations Preparation of tender documents for inviting tenders on a PPP framework Discussions with key amusement park operators Technical Specifications 6 Bid process management for selection of a private developer / operator for the Project Figure 1: Approach to the study i. Assessment of the amusement park industry would involve the following tasks: Overall trends, analysis, key drivers and market share analysis including key subsectors. Economic advantage, key infrastructure requirement, revenue spinner effect, etc. SWOT analysis for ‘leisure & entertainment’ sector Existing and proposed investments in the sector. Review of case studies of similar snow parks established in India and abroad, to arrive at the activities, components, footfalls, prices points and other key success drivers for the Project. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE ii. iii. Profiling of target population & quantification would involve the following tasks: Identification of target population for the proposed Project. Definition of criteria for quantification of target population for mid-term (7-10 years) and long term (10 years and above). Profiling of target population according to an appropriate system (including SEC). Assessment of demand, infrastructure & support facilities would involve the following tasks: Identification of various normative standards for quantifying the demand. Demand estimation, scenario analysis and indicative pricing points. Infrastructure support required to realize the demand. Potential market share for the proposed Project. iv. Preparation of tender documents for inviting tenders on a PPP framework would involve the following tasks: Listing of key development regulations applicable for amusement / theme parks. Minimum design and safety standards. Preparation of technical schedules. v. Bid process management for selection of a private developer / operator for the Project would involve the following tasks: Marketing of the Project to potential developers / operators of amusement parks. Assistance in conducting the pre-bid meeting including drafting clarifications to the queries raised by the bidders. Evaluation of the bids received. Assistance in negotiations and signing of contractual documents with the selected bidder 7 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 2. Overview of Bangalore City Karnataka State comprises of 30 districts and has been classified into four divisions namely Bangalore, Belgaum, Gulbarga and Mysore Divisions. Bangalore, the capital city and the largest city of Karnataka State is popularly known as the ‘Silicon Valley of India’ and has come to be one of Asia’s fastest growing cities since emergence of the IT-ITeS industry. Karnataka itself is globally known for its vibrant economy and investment potential. Being a major industrial and commercial center of the country, Bangalore is also the nerve center of India’s software industry and is well connected domestically and internationally, thus attracting people from all over the country and beyond for meetings, seminars, conferences and exhibitions. It is home to some of the most high tech industries, IT organizations and some of India’s premier scientific establishments. Bangalore is regarded as a high-tech city with offices or development centers of a number of mega software companies having wholly owned subsidiaries or joint ventures including IBM, Hewlett-Packard, Texas Instruments, Oracle, Novell, Fujitsu, and Digital Equipment. Bangalore is also headquarters to a large number of Indian software companies. Bangalore produces more than 35 percent of all software that India currently exports. In a short time, Bangalore has experienced rapid growth and international recognition in the field of software development. This has resulted in placing the city at a promising position in the international market for software. Bangalore is home to over 688 multinational companies, out of which 87 are from the Global Fortune 500 companies. Sustained efforts of both the Government of India and the Government of Karnataka in the last five decades have resulted in Bangalore becoming a major industrial and commercial hub in Asia. With over 103 Central and State research and development institutions including the Indian Institute of Science (ranked as the 18th globally), National Law School of India, 69 Engineering Colleges, world class health care facilities/medical colleges and institutions, and a host of other institutional infrastructure, Bangalore is a much sought after destination for trade, commerce and industry. Bangalore is even gaining the status of the ‘Floriculture Capital’ due to the present boost of the flower export from the city. Due to the rich stone resources Bangalore is also known as the ‘Stone City’, especially for its granite deposits. The salient features of Bangalore City are presented in the table below. 8 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Table 1: Overview of Bangalore City Aspect Details City Bangalore Population (2011 Census) 8.52 Million Area Municipal Area (BBMP): 741 sq. km Planning Area (Bangalore Development Authority): 1,307 sq. km Development Area (Bangalore Metropolitan Regional Development Authority): 2,190 sq. km Geographic Location 770 37’ E Longitude and 120 8’ N Latitude. Elevation: 920 m above the mean sea level. Connectivity and Linkages Air: The city has an international airport with regular flights from & to important destinations both in India and abroad. Bangalore International Airport started its operations of Phase 1 in April 2008. Road: The city is strategically located on NH-4 (ChennaiBangalore-Pune), NH-7 (Bangalore-Hyderabad), NH-48 (Mangalore), NH 207 (Chikaballapur), & NH-209 (Coimbatore) and State Highways to other cities in the State. Rail: The city has three railway stations, viz. Central, Cantonment and Yeshwantpur. The city is well connected to all major Indian cities by rail network. Climate Tropical climate March to May (warmest months) December to February (coldest months) July to September (rainy - southwest monsoon) November to December (rainy - northeast monsoon) Temperature Highest maximum temperature of 33o C Lowest minimum temperature of 14o C Languages Regional language: Kannada English, Hindi, Telugu and Tamil are widely spoken and understood. 9 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Aspect Details City Administrator Greater Bangalore Municipal Corporation (Bruhat Bangalore Mahanagar Palike) City Functions Administrative Capital, IT capital of the country Distance of International Airport from CBD 35.0 km Key Advantages of Bangalore Availability of world class skilled manpower Location advantage - good connectivity and linkages Salubrious climate Reform oriented governance Cosmopolitan culture Excellent social, education & health facilities Telecom connectivity Presence of multinational companies Fastest growing city in Asia and availability of ‘Grade A’ properties Source: Jones Lang LaSalle Report 2010 Apart from the industrial importance, Bangalore city also has few other characteristics such as a cosmopolitan culture, higher spending capacity, large percentage of young population and existence of International airport all of which together promote Bangalore as an idyllic place to develop entertainment and amusement parks. Developing a snow park will be very constructive to attract more domestic and international tourists in the city. Snow Park will also act as a weekend destination for the city – dwellers. 2.1 Advantage of Bangalore Karnataka has one of the highest per capita (Rs 5,217) plan expenditures in the country and there has been a continuous increase in the share of plan expenditure (42 per cent) in total expenditure in the state. The Economic Survey of Karnataka estimated its Gross Domestic Product (GDP) at constant prices to grow by about 8.2 per cent during 2010-11, driven by higher growth in primary and tertiary sectors. The per capita Net Income (per capita NSDP at factor cost), at current prices, is estimated at Rs 60,000 for 2010-11 as against Rs 51,858 for 2009-10, which brings the growth in 10 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE per capita net income at 15.7 percent during 2010-11 as against 12 per cent during previous year. Karnataka has been repeatedly show-cased as: Manufacturing hub for leading Auto & Auto components Global outsourcing hub for IT & ITES Preferred destination for outsourcing of IT projects/product design & development Home for Drug discoveries & Biotech clusters Leader and pioneer of BT Revolution Base for several international apparel brands for various international brands like Tommy Hilfiger, NIKE, GAP, Wal-Mart Aero-space hub and base (Bengaluru) for aviation majors such as HAL, NAL, GE, Honeywell, Rolls Royce Base for oil and gas majors – MRPL (ONGC), excellent connectivity to Ports The state has had many pro active developments indicating willingness of the governance in showcasing Karnataka as the preferred state. Some of the statistics which support this understanding are listed below; The State Level Single Window Clearance Committee approved 378 industrial projects with an investment of Rs 6,087.37 crore with an employment potential of 1.03 lakh. The High Level Clearance Committee cleared 130 mega projects with an investment of Rs 1,46,566.89 crore, which has potential to create 4.63 lakh jobs. The Global Investors Meet held on June 3-4, 2010 attracted investment of about Rs 4, 73, 000 crore and with an employment potential of 85,000 new jobs. Karnataka's exports in 2009-10 amounted to about Rs 1,42,871.41 crore, which accounted for 13.3 per cent of the country's exports indicating the increased inflows During 2010-11, Karnataka created 283.72 lakh person days employment compared to 278.22 lakh person days in the previous year indicating the improved employment levels in state. The tourist flow into the state has steadily increased from 2.52 crore in 2005 to 3.32 crore in 2009, which indicates a growth of 16 per cent. There are various measures by DoT to further enhance the tourism sector as discussed earlier. There have been various initiatives such as Master Planning of Heritage areas, creation of Tourism circuits, focus on improving infrastructure and encourage entrepreneurs for construction of hotels with concession on loans and VAT exemption provided. 11 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 2.2 Demography & Population Growth One of the most attractive employment destinations in the country over the last decade, Bengaluru's population has grown by 46.68 per cent between 2001 and 2011, up by nearly 12% over the growth rate of 35 per cent in the previous decade. The City’s decadal growth rate is the highest among all the metros in the country. Indeed, at 36.35 per cent, over a third of Karnataka’s population increase in the last decade has happened in Bengaluru. Bengaluru city's population is growing faster than ever before and by the end of the year its head count is likely to cross the one-crore mark. The city's population stands at 9,588,910, according to provisional Census 2011 data released. (Source: censusindia.gov.in) Bengaluru also has one of the highest SEC A & B population (33%) across the major cities in India. The graph illustrates the socio-economic categorization carried out by City Skyline. 100% 90% % of Urban Households 80% 70% 60% 12 50% 40% 30% 20% 10% SEC B SEC C SEC D Pu n e ai mb Mu ata Ko lk rab Hy de Ch SEC A ad lhi en De na i e lor ga Ba n Ah m ed ab ad 0% SEC E Figure 2: SEC Share across Cities Table 2: Urban Branding of Cities Cities Ahmedabad SEC A 14% SEC B 16% SEC C 28% SEC D 26% SEC E 16% SEC A&B 29% Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Cities SEC A SEC B SEC C SEC D SEC E SEC A&B Bengaluru 18% 15% 29% 24% 14% 33% Chennai 16% 15% 27% 26% 16% 31% 8% 20% 23% 24% 25% 28% Hyderabad 15% 18% 22% 26% 19% 33% Kolkata 16% 15% 19% 23% 27% 31% Mumbai 15% 20% 28% 25% 12% 35% Pune 11% 14% 29% 28% 18% 25% Delhi Source: City Skyline 2.3 Rise of the Middle Class Bengaluru also has a significant population (68%) across the major cities in India, who have income levels more than INR 150,000 per annum. The graph illustrates this categorization carried out by City Skyline. Table 3: Urban Household Annual Household 13 INR 75k- INR 150kINR150k INR 300k > INR 300k Above 150k Ahmedabad 0.3% 12% 37% 50% 87% Bengaluru 10% 23% 37% 31% 68% Chennai 5% 18% 30% 47% 77% Delhi 2% 7% 46% 46% 91% Hyderabad 3% 19% 48% 30% 78% Kolkata 8% 25% 26% 40% 67% Mumbai 1% 6% 42% 52% 93% Pune 11% 30% 23% 36% 59% Cities < INR 75k Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 100% 90% % of Urban Households 80% 70% 60% 50% 40% 30% 20% 10% < INR 75k INR 75k- INR150k INR 150k- INR 300k e Pu n ai mb Mu ata Ko lk ad rab Hy de lhi De na i Ch en e lor ga Ba n Ah m ed ab ad 0% > INR 300k Figure 3: Income Groups across Major Cities in India The table below shows the broad urban branding of Indian Cities. Interestingly no city has entertainment tagged and Bengaluru could take first mover advantage and capture the title of entertainment capital of India, if it decides that it would like to establish itself as a major tourism destination in Asia. Table 4: Urban Branding of Cities Urban Branding Cities Bhubaneshwar Emerging IT Hub New Delhi Financial and Entertainment Capital Political Capital Guwahati Education Hub Bengaluru Silicon Valley of India Jamshedpur Industrial Hub Chennai Established IT Hub & Detroit of India Established IT Hub Ludhiana Industrial Hub Nashik Emerging Industrial Hub Gurgaon Established IT & Industrial Hub Patna Emerging Education & Agriculture Hub Noida Established IT Hub Kochi Emerging IT Hub Kolkata Gateway to East Nagpur Education Hub Pune Established IT & Indore Commercial & Industrial Cities Mumbai Hyderabad Urban Branding 14 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Cities Urban Branding Cities Automative Hub Ahmedabad Chandigarh Coimbatore Urban Branding Hub Commercial Hub in the West Emerging IT Hub Jaipur Tourism Hotspot Surat Diamond Capital of India Emerging Industrial and IT Hub Vishakapatnam Emerging IT & Logistics Hub 2.4 Regional Connectivity Bangalore city is well – connected via Air, Rail and Road way. Bangalore city railway station and Yeshwantpur Railway Station are the main railway stations serving the city – dwellers, connecting the city with the rest of the country. Bangalore comes under the South – Western Railways section of the Indian Railways. Presently the State owned run buses as well as private tour operators also run buses and luxury buses to all parts of the city and connecting Bangalore to other cities like Bijapur, Hubli, Dharwad and Belgaum. The main bus depots are Kempegowda Bus Station, Shantinagar Bus Depot and Shivajinagar Bus Depot. The NICE ring road which is intended to connect Bangalore with Mysore, is also connecting the city with other major towns namely Srirangapattana, Pandavapura, Mandya, Maddur, Channapattana, Ramanagara, Kengeri etc. As mentioned earlier, the city is strategically located on NH-4 (Chennai-Bangalore-Pune), NH-7 (Bangalore-Hyderabad) and NH-48 (Mangalore). Many state highways connect the State Capital City to other cities in the State. Bangalore is vey well – connected to all major global destinations via air transport services. The city has an international airport with regular flights from & to important destinations both in India and abroad. BIA started its operations of Phase 1 in May 2008. Considering the inflow of tourist population in Karnataka and especially in Bangalore, developing a snow park with high entertainment value will attract high revenue. 2.5 Weather and Climatic Influence Weather is a major influence factor in any entertainment destination across the world. The following table indicates the advantages of Bengaluru on this factor. 15 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Table 5: Weather & Climatic Influence in Bengaluru Climatic Zones Basic Wind Speed (Based on the 50 years Return Period) Average Thunderstorm days in a year Seismic Zone It is seen that the state has a warm climate. Bengaluru has a pleasant climate owing to the elevation over sea level It is seen that the state and Bengaluru has moderate wind speeds. This is of great importance particularly in the design and safety of high rides. It is seen that Bengaluru has a few number of thunder days in a year. This is of particular importance for large amusement parks with a significant number of outdoor rides. Bengaluru and the majority of Karnataka fall in Zone 1. Thus the chances of major earthquakes are minimal and design parameters would minimal. 2.6 Infrastructure Initiative There are various proactive measures taken up by the GoK in augmenting & expanding the region in terms of physical infrastructure and developing major infrastructure projects to encourage overall economic development. The under – construction NICE road is 111 km long and connects two important cities of Karnataka i.e, Bangalore and Mysore, touching various cross sections of state and national highways. The NICE road is expected to impact the city connectivity scenario majorly as it connects Electronics City, Bannerghatta Road, Magadi Road, Madiwala and other strategic locations. The Bangalore – Mysore Infrastructure Corridor is also getting developed along NICE and is expected to bring in various commercial and tourism zones along it. One of the largest infrastructure projects which will be witnessed by Bangalore city – dwellers in the upcoming years is completion of construction of Bangalore Metro Project. This is another project which is expected to impact the city transportation majorly. Apart from these, widening of Sarjapur Outer Ring Road connecting it to the peripherial ring road and several elevated expressway at various junctions of the city will definitely improve the connectivity further. The completion of the above mentioned projects will have significant impact on the regional and economic development of the region as well as it will induce more no. of tourist population. 16 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 2.7 Tourist Footfall Tourist destinations in Bangalore together experience nearly 1.75 crores of annual tourist footfalls throughout the year. Table 6: Annual Tourist Footfalls (2014 Tourist Data) District Bengaluru (Rural) Tourist Destinations Domestic International Total Ghati Subramanya 10,86,257 0 10,86,257 3,78,914 0 3,78,914 Shivagange 8,18,449 0 8,18,449 Lalbagh 36,85,517 14,148 36,99,665 21,99,195 576 21,99,771 48,69,395 591 48,69,986 Iskcon Temple 39,00,879 35,000 39,35,879 Tippu Palace 3,91,365 20,000 4,11,365 Bangalore Palace 1,55,192 3,942 1,59,134 Tippu Birth Place & Fort Devanahalli Viveshwaraiah Museum Bengaluru Bannerughatta (Urban) National Park Total 1,75,59,420 Thus, the average tourist footfall in Bangalore will be 11 lakhs. Taking into account that nearly 50% of the total number of tourists would visit the newly developed snow Park, the annual tourist footfalls of the project would be nearly 6 lakhs. 2.8 Need of the Project i. Lack of entertainment parks in and around the city meeting the increased demand. ii. Need to boost up the Tourism Industry in Karnataka through designing such medium and large scale entertainment parks. iii. Rising middle class & Increased Affordability throughout the state. iv. Providing a new and unique experience to the visitors. v. Expected Increase in Tourist Footfalls in the city. vi. Encourage livelihood opportunities for the local population. 17 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 3. Amusement Parks Scenario Amusement Park and Theme Park are terms for a group of rides and other entertainment attractions assembled for the purpose of entertaining large numbers of people. An amusement park is more elaborate than a simple city park or playground, usually providing attractions meant to cater to children, teenagers, and adults alike. Amusement parks evolved in Europe from fairs and pleasure gardens which were created for people’s recreation. The oldest amusement park in the world (opened 1583) is Bakken, at Klampenborg, north of Copenhagen, Denmark. In the United States, world's fairs and expositions were another influence on development of the amusement park industry. Most amusement parks have a fixed location, as compared to traveling funfairs and carnivals. These temporary types of amusement parks are usually present for a few days or weeks per year, such as funfairs in the United Kingdom, and carnivals (temporarily set up in a vacant lot or parking lots) and fairs (temporarily operated in a fair ground) in the United States. The temporary nature of these fairs helps to convey the feeling that people are in a different place or time. In common language, Theme Park is often used as a synonym for the term 'Amusement Park'. A 'Theme Park' is actually a distinct style of amusement park, for a theme park has landscaping, buildings, and attractions that are based on one or more specific or central themes. Like any other developing country, India has also undergone rapid urbanization resulting in higher population and high income levels in urban areas. Due to increase in income levels, the consumers 18 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE have more disposable income, part of which they would like to spend on recreational and leisure activities. With more people traveling abroad and experiencing theme parks like Disneyland, a need for India’s own amusement park was felt in 1980’s. As a result of this, Appu Ghar, India’s first amusement park was set up in 1984 that tried to fulfill the latent demand for entertainment and theme parks. With the success of Appu Ghar, more amusement parks started coming-up mainly in the outskirts of the cities like Essel World in Mumbai, Fun ‘n Food in Delhi and Nicco Park in Kolkata. But today after around twenty-five years since its inception, the industry is still not at par with its global counterparts. The amusement parks in India still lack the driving force to attract visitors on a standalone basis. Also, in some growing cities, despite the willingness to pay for the entertainment destinations, no significant products have been introduced. Thus there is a tremendous scope for amusement and theme park industry in India. Family Entertainment Center (FEC) is another developing concept in the entertainment industry which started coming up in India with the advent of Mall and Multiplex culture. Providing for wholesome indoor entertainment experience to kids and adults, FECs can be seen both as a standalone entity and as part of malls, multiplex and amusement parks. They target indoor amusement like video games, simulators, miniature golf, bowling alley, pool/snooker, bumping cars, kids play stations etc. 3.1 Evolution of Amusement Parks – Globally Global amusement park industry has had a long evolutionary history. Tracing its origin to pleasure gardens of medieval Europe which provided line entertainment using rides, games, music and fireworks, the industry got its modern form in US in the late 19th century. The formation of Disneyland in 1955 led to the start of the theme park era, which changed the landscape of global amusement park industry. The global amusement parks can be categorized into destination resorts, regional parks and local parks, based on their target audience and products: i. Destination Resorts These include themed dry & wet rides and other attractions along with facilities for on-site accommodation. These parks act as resorts attracting both domestic and international tourists and command high ticket prices. Examples of such 19 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE resorts include Disneyland Resort, Sentosa Resort and Genting Resort. ii. Regional Parks These parks offer rides and attractions and on-site accommodation facilities on a smaller scale. The visitor catchment area of such parks is normally 300-400 km and the ticket prices are usually less than the destination resorts. iii. Local Parks These parks offer rides and attractions but do not provide accommodation facilities. They mostly target providing entertainment for a day’s trip. In terms of footfalls, amusement and theme parks in North America record the highest visitors, followed by Asia-Pacific, Europe and Latin America. In 2008, the top 25 amusement parks in the world accounted for a total footfall of 186 million. The amusement and theme parks across the world offer ancillary services including hospitality, restaurants, retail malls, souvenir shops, shopping outlets, live entertainment like cinemas/concerts, sports like gym/golf course and conveniences like parking/ATMs etc. 3.2 Evolution of Amusement Parks – Indian Scenario The domestic amusement park industry is estimated to grow at 10% per annum. Currently the Indian amusement industry is approximately Rs. 4,000 crore and the leisure industry expects fresh investment of Rs. 10,000 crore by the year 2020. Global leaders in entertainment parks and attractions are mulling over investments of billions of dollars in India considering the vast potential in the region. Appu Ghar in New Delhi was the first amusement park to be set up in India in 1984. Since then, the industry has grown to more than 120 parks across the country (about 70% being amusement parks and the remaining being water parks). The amusement park industry in India is dominated by parks operated by corporations. After Appu Ghar, opened by International Amusement Limited (IAL), several other players have entered the market. These include Essel World, Nicco Park, Veegaland by V-Guard Industries etc. Several more amusement parks have been opened by IAL also that include Adventure Island - the first integrated amusement park and Mall - and Worlds of Wonder. 20 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE The industry has also seen the emergence of amusement park equipment manufacturers and suppliers like Hindustan Amusement Machines, Arihant Amusement Manufacturers, Bombay Amusement Rides, Wonderla Rides etc. Since the inception of India’s large amusement parks like Essel World, several theme parks have also opened. These include Kishkinta, Ramoji Film City and Ocean Park. The number of theme parks is still considerably low. There has also been development of integrated resorts with several ancillary facilities like hotels, retail outlets and convention centers along with the theme park rides. Some of these resorts include Worlds of Wonder in New Delhi, VGP Universal Kingdom in Chennai and Ramoji Film City in Hyderabad. India has also witnessed growth in Family Entertainment Centers (FECs). This segment gained momentum in mid-2000s with the mall revolution. Today, FECs have become an integral part of the malls, multiplexes & amusement parks across the country. Average size of these FECs is around 2000 to 10000 sq ft which is lower as compared to global FECs. The leading operators of FECs in India remain few. These include Timezone, PVR Blue-O, Jammin Creations and Orama. Amusement parks and theme parks in India can be categorized into three major groups namely, large parks, medium parks and small/local parks. This categorization is done on the basis of the park’s size and target segment. Examples of these include Essel World, Worlds of Wonder as large parks; GRS Fantasy Park in Mysore & Fun n Food Village in Delhi as medium park and Fun n Food Kingdom in Dehradun and Snow World in Hyderabad as small/local parks. Table 7: Categorization of Amusement Parks in India Parameters Large Parks Medium Parks Small Parks Capex Above Rs.150 crores Rs.20 crores - Rs.150 crores Less than Rs.20 crores Area Above 40 acres 10- 40 acres Less than 10 acres Annual Footfall Above 5 lakhs 3- 5 lakhs Less than 3 lakhs Average Ticket Price (per person) Above Rs.400 Rs.250 - Rs.400 Less than Rs.200 Attractions / Rides, live shows, Rides, live shows, Rides, food court, live 21 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Parameters facilities Large Parks accommodation, convention centers, food court, retail, theatres, etc in metropolitan cities & outskirts Medium Parks food court, retail, etc in tier 1cities & outskirts of metros Small Parks shows, etc Mainly Tier II cities & small towns. Also in Tier I cities & outskirts of metros Of all the parks in India, only 15% classify as large parks, 30% as medium parks while the remaining 55% are classified as small parks. Amusement parks can also be classified on the basis of their concepts. General trend in the industry shows that amusements parks in India target kids and youth from middle income segments with occasional promotional offers for the low income groups. The parks receive visitors mostly from local/primary market with few visitors from tertiary market as well. The parks get their revenue mainly from entry tickets and F&B with other, less contributing, sources being rentals and merchandizing. The amusement park industry in India has grown significantly since its inception. However, the size, footfalls and revenues are still very low as compared to their global counterparts. The challenges in front of the Indian amusement park industry still remain: low per capita income, low consumer willingness to spend, inefficient infrastructure support, non availability of land and financing issues. 22 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 4. Project Concept Travel and tourism, the world’s largest industry, is a key driver of economic growth. Given this background the development of appropriate infrastructure facilities for promoting tourism would go a long way in developing the state’s economy. This Section discusses the concept of a Snow Park in the context of the Tourism Policy of Karnataka and other similar facilities established in India and abroad. 4.1 Tourism Policy Karnataka Tourism Policy 2015 – 2020 also emphasizes upon undertaking an effort for developing Projects such as golf courses, cruise tourism, large entertainment studios, entertainment parks (small, medium and large), cable cars, tourism trains, filmcity, etc. to cater to different user segments. As per the Policy, various concessions are incentives are also offered by the GoK for developing projects in tourism sector. 4.2 Project Component Based on the review of similar snow parks in India and abroad and analysis of the amusement park industry, the following components are suggested at the proposed Snow Park in Bangalore: Components Indicative size / area Snow Park 20,000 sq.ft Food Court 3,000 sq.ft Family Entertainment Center Retail 35,000 sq.ft Games Arcade 40 units Bowling 5 alleys Pool 6 tables 32,000 sq.ft The proposed Snow Park would include snow slides, ice bumper cars, snow skiing, ice skating, ice volleyball, snowboarding, ice carving, tobogganing among other rides. To make the project financially viable for a private developer / operator, in addition to the Snow Park a FEC, food court and other entertainment activities such as bowling, pool, etc are also proposed. For improving footfalls to the proposed park, it is 23 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE suggested that new rides / games / packages and innovations are introduced periodically and the Snow Park be developed in a phased manner. This would ensure repeated visits from customers who would like to revisit for newer rides and entertainment. The Project could be developed on a land parcel of approximately 5 acres. The facilities proposed to be developed are detailed out in the table below: Sl. No 1. 2. Facility Components Snow Park with a built-up Would comprise: area of 20,000 sq.ft Skiing Snowboarding Tobogganing hills Snow caverns Play area Family Entertainment Would comprise: Center (FEC) with a built-up Games arcade- 40 units area of 35,000 sq.ft Bowling – 10 alleys Pool and snooker tables- 6 tables Console games- 5 units Merchandise sales 3. Food court with a built-up Easily accessible from the Snow Park and FEC, the food area of 3,000 sq.ft court should have sufficient capacity to manage the number of visitors. 4. Retail Area with a built-up Would include multiplexes, retail stores etc. area of 32,000 sq.ft 5. Infrastructure Would include landscaping of the Project Site, parking etc. Annexure-1 attached gives complete details of the two case studies on similarly themed Snow Parks in Dubai and Singapore. 24 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 4.3 Project Drivers The following issues are critical in ensuring the implementation and success of the Project: i. Land The minimum land requirement for the Project would be 5 acres. During preliminary discussions with KIADB officials, it was indicated that 5 acres in the proposed Hardware Park in Devanahalli could be assigned for development of the Project. DoT would need to pursue with KIADB for assigning the required land in the Hardware Park for development of the Snow Park Project. Availability of land is critical for commencing the Project development activities. ii. Location Location of the Project and its proximity to the city is a key factor for driving footfalls to the park. A potential site with proper connectivity, closer to the city centre needs to be identified by DoT. iii. Infrastructure The physical infrastructure including roads, water supply, power, etc for the Project site need to be in place for operationalising the Project facilities and is a key concern for the private developer / operator as well as for the public intending to visit the Project. DoT / GoK would need to plan for the basic infrastructure facilities at the identified Project site prior to commencing the bid process for selection of the private developer / operator. iv. Facilities / components The facilities offered by the Snow Park would need to be carefully planned to provide something of interest to all age groups. The success of the Project would depend on the capability of the Park to attract visitors on a continual basis. This would mean that new rides / products would need to be introduced periodically to sustain the interest of the visitors to the Park. Attractive package offers, seasonal / non-seasonal offerings and pricing would be important drivers for the success of the Park. v. Transportation To facilitate commute of visitors to the Park, it may be required to provide transportation facilities to and from the Project site at periodic intervals through the day. 25 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 5. Suggested Project Location Considering all the factors mentioned in the earlier chapters, the ideal location for developing a Snow Park in would be North Bangalore. The supporting analysis of identifying North Bangalore as the project location is discussed below. Advantages of North Bengaluru: Easily available Landbank only in the city. Airport Connectivity to Kempegowda International Airport. A cumulative investment of close to Rs. 1,15,000 Cr. worth would develop northern part of Bengaluru booming with activities. 413 MoUs were signed during Global Investors Meet (GIM) 2010. With all these investments and proposed development by Government and Private sector, the required consumer base will be created without difficulty. Average Tourist Footfalls of Bengaluru City is 89.9 Lakhs (2014 Tourist Statistics). Thus, the apt location for developing a Snow Park will be North Bengaluru. IT & ITES Finance & Business Districts Medical Hub 26 SEZs Proposed Development in North Bengaluru Residential Aero Industry Hospitality & Entertainm ent Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Road Infrastructure: As the airport is 40km (25 miles) outside the city, a new high‐speed rail link, is being planned to connect the city to the airport. The various road and rail connectivity means are as follows: Figure 4: Existing and Proposed Transit Corridors NH‐7 to BIA is 6‐lane divided carriageway. NHAI is in the process of widening the NH‐7 from existing 6‐lanes to 8‐lanes, which can sustain higher traffic due to airport expansion and expected real estate developments on either sides of the NH‐7. Bangalore Metro Rail covering a length of around 33 kms spread over the North‐ South and East‐West Corridors is under construction by Government of Karnataka at an estimated project cost of INR 64 billion (US$ 1.5 billion). In order to ensure fast and easy connectivity from Bangalore City Centre to the International Airport, Hi‐Speed Airport Rail link of around 34 kms from CBD to the Airport is under development, which will enable passengers to reach the Airport around 25 minutes. Monorail is also planned for development to serve as feeder lines to metro lines. Commuter rail system enabled to connect Devanahalli with Yeshwantpur via Yelahanka. 27 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Figure 5: Bangalore International Airport Planning Area - Outline Development Plan 28 Proposed Development: The airport is expected to act as regional hub for global connectivity and would accelerate infrastructure & real estate development in and around the airport. As part of BIA project, a Special Economic Zone and commercial developments are proposed within the Airport. The proposed growth of population and economy as per CDP is expected to generate high travel demand. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Figure 6: North Bangalore Map 29 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 6. Project Implementation Structure The mode of implementation of the Project could be either through the conventional Engineering Procurement Contract (EPC) or through Private Sector Participation. The choice of the mode of implementation depends on the risks involved in the project and its sustainability. A conceptual analysis of the two options is set out in matrix below: Table 8: Comparative analysis of Project Implementation Options Parameter EPC Contract Financing To be entirely mobilized by DoT Time and cost over-runs Typically, plagued by time and cost over-runs due to Private Sector Participation Responsibility for mobilizing finances for implementation of the Project would be entirely taken up by the Developer. The Developer is incentivized to complete the Project execution as early as possible, since the Procedural inefficiencies Developer can collect rentals from Financial constraints tenants only after completion of resulting in delays in the Project. payment leading to frequent Scrutiny and negotiation of unitstoppages in work Time over-runs would result rates not necessary as entire risk of in changes in the unit-rates Project execution (in terms of quoted thereby necessitating variations in quantities and price) protracted negotiations for is taken by the Developer. finalising revised rates Maintenance of the Project As the construction contractor is paid the entire amount upon completion (or in some cases after the maintenance period, which is usually one year after construction), there is no financial penalty on him for poor quality construction which becomes apparent only after a period of 1-2 years The Developer is responsible for the maintenance of the facility over the agreement period (including construction and operations periods). 30 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 5.1 Proposed Implementation Framework To undertake development of the Project under the PPP mode, there is a need to have access to financial resources and expertise in development and operations of such a facility. DoT intends to utilize such resources available with the private sector with a view to further its main objective of providing world class family entertainment destination for the citizens and tourists in Bangalore. The Project encompasses unique challenges in terms of development risk and Project sustainability. Considering the factors involved like the requirement of upfront finances, manpower and associated risks, it is proposed to develop the Project under Design – Build – Finance – Operate – Transfer (DBFOT) Concession framework. The concession period for the Project has been assumed to be 30 years including a construction period of 2 years. As DoT proposes to develop the Project under a DBFOT framework, the design, construction, financing and operating responsibilities would rest with the private developer selected through a bid process. The implementation structure for the Project would be as indicated in the figure below: 31 Figure 7: Proposed Project Implementation Plan 5.2 Types of Private Sector Participation Framework A PPP is a partnership between the public and private sector for the purpose of delivering a project or a service traditionally provided by the public sector. The benefits of a PPP are that both parties bring to the project different strengths, and these strengths can be exploited so as to deliver a superior project in the most economical and efficient manner. There are various contractual forms of PPP and the same is explained in the sub-sections below: i. Lease Contract Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE The selected Developer would be responsible for raising finances and carrying out the construction and development activities and subsequently enter into a lease agreement with DoT, the tenure of which is determined based on the project viability. The Developer would pay an upfront ‘premium’ and subsequently lease rentals to DoT. However, the Developer would be allowed mortgage rights on the facilities developed (and not on the land). In the event of non-performance in accordance with the conditions set out under the Lease Contract, DoT could revoke the lease and re-enter the property. Merits The commercial / social space requirement/ objective of DoT fulfilled. Assured Lease rentals from Developer Land ownership remains with DoT Demerits Lease for long period and success dependent on Developer's commitment Longer time for development Mortgaging rights rest with the Developer and the property can be mortgaged to raise finance. Hence lender can enforce encumbrance on the property. The bid parameter in this case could be any of the following; Highest ‘premium’ offered by the Developer Highest annual lease rental Lowest lease tenure ii. Joint Venture Contracts Joint Venture Contracts is another type of PPP framework by which the Developer is given ownership rights over a portion of DoT property in return to develop a portion for DoT which is handed back to DoT after completion of construction. The Developer is selected for the purpose of developing a specific project and a development agreement is entered into between DoT and the selected Developer. The development agreement would be an agreement for the Developer to develop a specific project for DoT in consideration for a title of the portion of land. Subsequent 32 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE to signing of the agreement, the portion of land to be developed by Developer for DoT is handed over to Developer for construction. After construction of the project in accordance with the development agreement, the project reverts back to DoT and simultaneously the title of the portion of land is transferred to the Developer. DoT may take possession and manage its portion of the property or can decide to permit the Developer to manage its portion of the land and may enter into a management contract with the Developer and seek periodic payments from the Developer during the period of the management contract. This contract is commonly found in projects for development of shopping complexes involving rehabilitation of existing shopkeepers, convention centers, bus terminals, houses for economically weaker sections etc. Merits DoT could develop its portion of the land as per its plan Higher returns to DoT Demerits DoT loses ownership over part of the site area DoT has no control over the development plans over the area belonging to the Bidder Collection of rent and parking fee has to be done by DoT and should employ additional personnel to ensure no siphoning of funds Some portion of O&M responsibility and marketing responsibility transferred to DoT Variable revenue streams to DoT DoT has to share the risks of the project (revenue, operational and maintenance) iii. Joint Venture Arrangement A minor variant of the Joint Venture Contract is the Joint Venture Arrangement wherein a Joint Venture Company between DoT and the Developer is set up. In a JV arrangement, both DoT and Developer bring their resources such as assets, knowledge, personnel etc. DoT would transfer assets in return for a share of equity 33 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE in JVC. The said assets could include both tangible (i.e. land, building, equipment and finance) and intangible i.e., Intellectual Property. After incorporation of a JVC between DoT and the Developer, a shareholder’s agreement is entered into between DoT and the Developer which sets outs the ownership and management of newly formed JVC. The JVC is formed for a special task i.e., development of the project and after completion of the project JVC could be wound up. The shareholders agreement would include the following: Percentage of shareholdings of DoT and Developer Number of directors each shareholders can appoint to the board of directors Frequency of board meeting How profit and loss to be shared between the shareholders Management and supervision of JVC Change in shareholders permitted or not Provisions for management disputes Details of specific task for which JVC being set up Method of winding up of JVC Merits JVC would be a separate legal entity and a limited liability company Projects by virtue of greater access to resources, skills and expertise of private sector compared to other PPP options. Demerits Asset may need to be transferred to the JVC as equity to the project. Project being under public scrutiny in the event of failure, DoT’s reputation may have an impact for partnering with an unsuccessful private party. Government/DoT would have control and power over the project to the extent of share in the JVC 34 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE The bid parameter in this case could be the highest percentage share of revenue by the Developer to DoT. iv. Concession Contracts Concession Contracts are Design, Build, Operate and Transfer contract except that the Developer recovers its investment through direct user charges or through a mixture of direct user charges and DoT payments. a. Build, Operate and Transfer (Annuity) Build, Operate and Transfer (Annuity) contracts are where the Developer is responsible for designing, building, operating and financing of the asset. The Developer recovers its costs out of annual payments from DOT and after a predetermined period the facility commonly reverts back into DOT ownership. Merits Bidder is allowed flexibility to develop the area in accordance with DoT plans Ownership of the asset remains with DoT. Length of concession period is fixed 35 Bidder would develop, operate and maintain the area over the length of the concession period The land and the facilities developed on it would be transferred back to DoT at the end of the concession period Risk of time bound completion is transferred to the Bidder Revenues stream assured and fixed. Demerits Technical proposals of the Bidders would need to be evaluated Time for development may increase slightly due to Bid Process & Financial Closure Revenue risk is transferred to DoT Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE All risk borne by bidder and may require higher returns b. Design, Build Operate and Transfer Design, Build Operate and Transfer contracts are where the facility is financed and owned by the Developer. The Developer designs and builds the facility to meet certain DoT specifications and is also responsible for operating and maintaining the facility for a predefined period, at the end of which the facility is transferred back to DoT. Merits Bidder is allowed flexibility to develop the area in accordance with DoT plans Ownership of the asset remains with DoT. Length of concession period is fixed Bidder would develop, operate and maintain the area over the concession period The land and the facilities developed on it, would be transferred back to DoT at the end of the concession period Risk of time bound completion and revenue risk is transferred to the Bidder Revenues stream assured and fixed. Demerits 5.3 Technical proposals of the Bidders would need to be evaluated Time for development may increase slightly All risk borne by bidder and may require higher returns Recommendation Based on the evaluation of various options for implementation and the Financial Analysis carried out for the Project, it is recommended to adopt the ‘concession’ structure for successful implementation of the Project. The concession contract under a Design, Build, Finance, Operate, Transfer framework would be the preferred 36 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE option, as DoT would receive higher returns from the Project, with no investment or revenue risk of the Project. In lieu of the land being offered by DoT along with the Development rights for the setting up of the Snow Park, DoT can seek a Concession Payment on Annual/half yearly basis with an escalation of 5% every year as discussed in the Financial Viability Report. Based on the Financial Viability Report, it is recommended that the annual concession payment payable by the Developer be the bid parameter. The concession period, based on the Financial Analysis carried out for the assignment, is 30 years, including the construction period of 2 years. The summary of the financial viability carried out for the Project is presented in the next chapter. 37 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 7. Project Financial Viability Analysis The financial viability assessment has been carried out for the Pro ject.This Chapter provides a summary of the Financial Viability of the project. 6.1 Project Cost The base construction cost of the Project has been estimated at Rs. 43.6 Crores. The details of the same are presented below. Table 9: Base Construction Cost Sl. No Item Area/ Number Total Cost (Rs. Crores) 1 Snow Park (sq.ft) 20,000 12.6 2 Food Court (sq.ft) 3,000 4.4 3 FEC 12.7 Construction (sq.ft) 35,000 8.8 Arcade Games (No.) 40 0.6 Bowling (No. of alleys) 10 3.1 38 Pool/Snooker Tables (No.) 6 0.1 Console+TVs (No.) 5 0.0 32,670 10.3 4 Retail Area (sq.ft) 5 Infrastructure (acres) 4 2.5 6 Buses 5 1.2 Total Base Cost 43.6 The base cost is as per estimations carried out for the current year i.e 2015. Assuming a 2 year construction period, the cost has been escalated at the rate of 5% per annum to estimate the landed project cost. The landed construction cost could be of the order of Rs. 43.6 Crores. Considering contingency, preliminary & pre-operative expenses and interest during construction (IDC) the total Project Cost has been estimated at Rs. 53.75 Crores. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Table 10: Project Cost Sl. No Item Amount (Rs. Crores) 1. Construction Cost 46.9 2. Contingency (4% of construction cost) 1.9 3. Preliminary expenses (1.5% of construction cost) 0.7 Thus, considering all components, the total project cost is estimated to be around Rs. 53.75 Crores. 6.2 Estimation of Revenues The revenue income for each of the facilities in the Project has been estimated and the details of the assumptions made therein are presented below. i. Snow Park The details of Snow Park developed in Hyderabad as indicated below: Details of Snow World, Hyderabad: Table 11: Details of Snow World Hyderabad Sl. No. Description 1. Built-up area 2. Capacity (8 sessions with a capacity of 300 people each) Value 17,000 sq.ft 2,400 people/day As the built-up of the snow park proposed in Bangalore is about the same as the park in Hyderabad, the capacity for the proposed park has also been limited to 2400 people per day. Further, it is assumed that this capacity will be met in full only on weekends. The snow park would have 8 sessions with a maximum of 200 visitors per session on weekdays and 300 visitors per session on weekends. The total number of working days has been assumed as 300 with 100 weekends and 200 weekdays. It has been assumed that in the first year of operations, 4 lakh people would visit the snow park and the number of visitors would increase at 8% year on year and reach a 39 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE maximum of 5.6 lakh visitors in the 6th year of its operations and stabilize thereafter for the rest of the concession period. The estimated number of visitors in to the snow park in the first year is almost 50% of that recorded in Wonderla in 2009 and is hence these footfalls are likely to be generated. Table 12: Entry Fee Details of Snow Park Description Value Entry fee for snow park (Rs. per person per day) 250 Price escalation - % every 3 years 10% Number of days of non-operation 65 ii. Food Court The number of visitors to the food court has been estimated to be the same as those visiting the snow park. As the FEC and retail area proposed would also have a separate food court, the footfalls in the FEC and retail area have not been considered to estimate the revenue from the food court. Description Value Average amount spent by a visitor to Snow Park 150 Price escalation - % every year 5% iii. Family Entertainment Centre (FEC) The utilization of games facilities in the FEC and the price for each is set out below: Table 13: Utilization of Games Facility Games No. of Average number of units games/unit Number of games Weekday Weekend Weekday Weekend Arcade games 40 15 50 600 2000 Bowling 5 3 6 15 30 Pool Table 6 1 1 6 8 Console games 5 2 3 12 16 40 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Games No. of Average number of units games/unit Increase in utilization- % Number of games 5% every 3 years Table 14: Revenue from FEC Revenue components Weekday Weekend Weighted Average Price Arcade games (Rs. /game) Bowling (Rs./ game) Pool Table (Rs. /hour) Console games (Rs. / half hour) Price escalation-% every 3 years 20 80 125 92 100 150 114 75 80 75 5% Revenues from food and beverages 10% of revenues from games Merchandise sales 10% of revenues from games iv. Retail Area The assumptions for revenue from the retail area are provided in the table below: Table 15: Retail area details Sl. No Description Value 1. Built-up area 2. Area rented 3. Rent (Rs./sq.ft/month) 4. Price escalation-% every 3 years 10% 5. O&M Charges (Rs./sq.ft/month) 10 6. Price escalation-% every year 5% 32670 sq.ft 100% of built-up area 30 41 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Annexure-1 Details of Case Studies 42 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Case 1: Snow World, Hyderabad (Standalone Development) Snow World is an amusement park located in Hyderabad, Andhra Pradesh (India) within an area of about 2 acres (0.81 ha). It is located beside Indira Park and along the Hussain Sagar Tank bund. The park inaugurated on January 28, 2004 is India’s first snow theme park where one can experience snow fall and polar climate. Snow World is filled with over 200 tons of snow, temperature of minus five degree centigrade, owned by Ocean Park Multitech Ltd in 2004. The snow is made of safe elements as mineral water quality water and there will be no harmful effects of this snow. A few months after its inauguration, a snowfall feature was added. Said to be the first of its kind at any show theme park or snow dome in the world, the visitors are exposed to snowfall for ten minutes for every hour. A 40,000 square feet (3,700 m2) kart racing, built at a cost of INR 2.5 crore (US$555,000), was open to public. The indoor resemble a cave that was uniquely designed using plaster of Paris. Location Snow World is India’s first Snow Theme Park. Spread over 17,000 square feet area, on Lower Tank Bund Road, behind Indira Park, it is a landmark place in Hyderabad 43 Figure 8: Location of Snow World, Hyderabad Accessibility APSRTC buses and trains make Hyderabad easily accessible to the rest of Andhra Pradesh. Further, Hyderabad is well connected to the rest of India by air, train and road. Operator Ocean Park Multitech Ltd. took the 2 acres (0.81 ha) plot on a 33 year lease from the Government of Andhra Pradesh at the rate of 36 lakh (US$79,900) per year. The lease amount was to go up by 5% every year. Constructed at a cost of 2 crore (US$444,000), the Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 17,000 square feet (1,600 m2) facility. The facility, which was built in collaboration with the Andhra Pradesh tourism department, is India's first snow park. Attractions at Snow World The attractions of Snow World have been listed below: Table 0: Facilities at Snow World, Hyderabad Sl no Facilities 1. Snow World, Hyderabad 2. Signature Attractions at Snow World 3. Other facilities Description India’s first snow park with attractions like snowfall. Snow Dancing Snow Dining Snow Wars Snow Mountaineering Sleigh Slide Merry Go Round Snow Volley Ball Snow Fun Basket Ball Snow Sculpturing Karting (Kart Kave) Scary House (Living Dead) Snow World is a snow theme park that helps experience snow fall and polar climate. Temperature within the snow area is in between -5 and 0 degrees centigrade. A snow session duration is about one hour. In the snow world, there is a “Cryo Zone” which includes igloos, alpine forest, some figures of polar bears, penguins and some other attractions made with the help of artificially produced snow. The snow is made of safe elements as mineral water quality water and there will be no harmful effects of this snow. A person can come outside only after one complete snow session. Snow World authorities will provide a snow wear for each individual. 200 tonnes of artificial snow was laid on the layered flooring which was specially prepared to avoid seepage 44 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE or melting. Every day, the top layer of snow is cleaned and an additional two to three tonnes of snow, which is generated within the facility, is used to top the snow spread. The artificial snow is made using a patented technology from Australia. All these snow wonders will be made possible by artificially producing snow using state of the art technology supplied by Woomera Snow Guns Ltd., Australia. The snow thus produced almost matches with that found in nature and doesn’t contain any harmful chemicals and substances. The snow is produced using quality mineral water and is harmless even if consumed. The park can accommodate a total of 2,400 visitors in a day on weekdays. Every visitor gets acclimatized to lower temperatures in a step-wise manner – 20 °C (68 °F), then 0 °C, and then a sub zero temperature. This method is approved internationally. In addition, visitors are given protective clothing and a steaming cup of soup to help them acclimatize to the temperature change. The internal area, also called as the Cryo Zone, maintains a constant temperature of - 5 °C. For 1 hour, a maximum of 300 visitors at a time can explore the different facilities such as kid’s snow play area, snow wars, snow tube slide, sleigh slide, icebumping cars, merry-go-round and an ice skating rink. Capacity of Snow World is presented below: 45 Table 16: Capacity of Snow World Footfalls Capacity per Show No of Shows Visitors per day Cumulative Total Visitors per show weekdays 200 8 1600 417600 Total Visitors per show weekends 300 8 2400 249600 Total 667200 Other Attractions Snow slide, Merry go round, Ice Bumper Car are some of the rides. Snow fall is major attraction here. Cryo Zone includes igloos, alpine forest, some figures of polar bears, Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE penguins and some other attractions made with the help of artificially produced snow. Other interesting activities are ‘Ice Carving’ and Snow war. Pricing Table 17: Pricing considerations Ticket One Day Pass Price Description Adult Child 360 240 Entry Ticket covers cost of games There are eight snow sessions each day and a half hour interval is provided between two consecutive sessions. Each snow session is for duration of about one hour. Visitors should report at the venue half-an-hour before the session time. Competitive Strategies A public-private partnership venture, Snow World is the first ever snow theme park in Hyderabad and is located in the Himayatnagar. The location opposite the Hussain Sagar Lake is extremely favourable due to its easy accessibility from the rest of the city. Snow World has been developed keeping in mind the visitors of all age groups. There is a separate kids' snow play area. The facility has the ‘first-mover’ advantage in terms of experience as there no similar parks in South India and number of residents of Hyderabad have never experienced snow prior to the opening of this park. 46 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Case 2: Ski Dubai, Mall of Emirates, Dubai (Mixed Use Retail Development) Background Mall of the Emirates, the ultimate leisure, entertainment and shopping resort opened in September 2005. Strategically located in the heart of what is now deemed ‘New Dubai’, this 223,000 square meter centre offers a full range of shopping, leisure, and entertainment. Mall of the Emirates features 520 international brands, including department, fashion, lifestyle, sports, electronics and home furnishing stores and the largest Carrefour in the city. The compelling family leisure offerings include a Magic Planet family entertainment area, a 14-screen multiplex cinema, the world-renowned Ski Dubai, a five star Kempinski Hotel, The Pullman Dubai Hotel, the Mall's 500-seat DUCTAC community theatre and accompanying arts centre, and over 85 coffee shops and restaurants. Location Ski Dubai part of the Mall of the Emirates, is just off the Sheikh Zayed Road, Dubai's main thoroughfare and located in the Al Barsha area in Dubai Accessibility The mall is located within the city of Dubai can be easily accessed through public transport – bus or metro rail and by road. The map below shows location of Mall of Emirates in Dubai. 47 Figure 9: Location of the Mall of Emirates Operator Mall of the Emirates is a landmark development within the Majid Al Futtaim (MAF) Holding. This development saw over 31.3 million visitors in the calendar year of 2010. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Mall of Emirates The Mall of Emirates is one of the biggest shopping malls in the world. Being a mall it has the usual mall features including a fourteen-screen multiplex, a gaming arena, and a plethora of brand stores all in one mall. However, the biggest reason for its popularity does not rest in its size, or in the facilities it offers, but for the very unique presence of the Middle East's first indoor ski slope, Ski Dubai, inside the shopping mall. The Ski Dubai has a skiing area that is third largest in the world and this helps to differentiate the Mall of Emirates from the avalanche of malls that have descended on Dubai. The attractions of Snow World have been listed below: Table 18: Facilities at Mall of Emirates, Dubai Sl. No. 1. Facilities Description Mall of Emirates, Dubai The Mall of the Emirates features the biggest indoor ski facility - The Ski Dubai Dome. The Mall of the Emirates has been positioned the worlds first Shopping Resort. 2. Signature Attractions at Mall of Emirates Ski Dubai Dubai Community Theatre & Arts Centre Magic Planet Dining Cinestar 48 3. Other facilities Themed restaurants; St Moritz Café and Avalanche Café Magic Planet is the largest indoor family entertainment centre in Dubai, featuring several international award-winning rides and games. Spread over two levels, this centre will appeal all age groups. Magic Planet has an incredible range of fun rides, games and attractions. Racing simulators, XD Theatre - 4D theatre and the state-of-the-art RoboCoaster, a 2-person thrilling ride are some of the signature rides at magic planet. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE CineStar is wholly owned by Majid Al Futtaim, the largest developer and operator of Shopping Malls in the MENA region of the Middle East. Cine Star’s 14-cinema complex offers the latest in technology and comfort. Cine Star cinemas have introduced a giant Extreme Screen - 20 meter wide screen with crisp, bright 100% digital images ensuring a stunning realistic and fully immersive entertainment experience. Extreme Screens can screen 35mm films, digital films, RealD digital 3D movies and alternative content supplied in a Digital format, such as concerts and sporting events. DUCTAC has been incorporated for art lovers of all ages and cultures. It provides the facilities for a myriad of subjects within a fun and artistic environment. It has a 550 seat 2level theatre, 150 seat studio theatre, rehearsal spaces, large and small art galleries, 16 general and specialized classrooms/studios for activities such as painting, sculpture and photography, a music school, lending library and a café. Ski Dubai Ski Dubai has five runs of varying difficulty, height, and steepness. The longest run is 400 meters with a fall of 60 meters. There are gentler slopes for beginners and indoor black runs for more experienced skiers. Skiers and snowboarders are equally likely to enjoy Ski Dubai with snowboarders getting to perform their stunts on a 90 meter long quarter pipe. Ski Dubai also features the interactive Snow Park spread over 3,000 square meters making it the biggest indoor snow park in the world. Ski equipment and clothing is available for hire inside Ski Dubai. You can go up in the quad-chairlift with your equipment and come down on the skis or snowboard. There are also many themed restaurants like the St. Moritz Café located at the very entrance to Ski Dubai and the Avalanche Café at mid-station with views of the artificial slope. The Ski Dubai is 22,500 square meters in size and covered with real snow throughout the year. The temperature is kept between -1 and -2 degrees Celsius. The slope itself is 35 meters high and 80 meters wide. The entire place can accommodate 1,500 visitors at any given time. 1. The highlights of Ski Dubai have been listed below: 22,500 m2 covered with real snow all year round - (equivalent to 3 football fields) Temperature maintained at a comfortable -1º to -2º 85 meters high (approximately 25 stories) and 80 meters wide 5 different runs of varying difficulty and length, longest run of 400 meters 49 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Full capacity of 1500 guests Freestyle zone 3,000 m2 Snow Park with a snow cavern Quad chairlift, tow lift and flying carpets Mountain resort theme Rental of quality equipment and clothing included in the ticket price Qualified professional instructors State of the art ticketing system Changing areas with locker rental Private kids party rooms Exclusive retail shop - Snow Pro St Moritz Café and Avalanche Cafe Using technology similar to that found in the air-conditioning units, the temperature have been lowered to -80C for this initial period of snowmaking. With the temperature at rock bottom, liquid water is atomized to create a cloud inside the building which is then sprinkled with tiny ice particles, forming snow that falls from the cloud as flakes - driven snow at its very purest. 50 View of the Snow Park View of Ski Dubai Pricing The various price points at Ski Dubai have been listed below: Ticket Snow Park Price AED 120 - Adult Remarks Access to the snow park AED 110 - Child Snow Slope (2 hours) AED 180 - Adult Extension – AED 50 per hour Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Ticket Price Remarks AED 150 - Child Ski Slope Day Pass AED 300 - Adult One day access to the park AED 275 - Child Group Lessons Discovery Lesson AED 150 per hour 60 minute duration Adult Group Lesson AED 220 per hour 90 minute duration Adult Group Lesson AED 190 per hour 90 minute duration Adult Group Lesson AED 160 per hour 90 minute duration Private Lesson AED 595 per hour Competitive Strategies: Location Sky Dubai is part of the Mall of Emirates which attracts huge footfall. It is one of the L&E options within the Mall and due to unique experience it offers it is one of the most sought out option by the visitors. Strategic Partnerships A new and exciting partnership between Wild Wadi UAE and Ski Dubai, located inside the Mall of the Emirates, marks the beginning of both surfing and snowboarding competitions. Similarly, Burj Al Arab offers complimentary admission to Wild Wadi Water Park while the Madinat Jumeirah and a host of other Dubai hotels offer discounted rates and up to one hour early admission to beat the crowds. With ticket prices, pick-up and drop-off are also included; it is an attractive option for all travelers. 51 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Case 3: Snow City – Singapore Snow City is the only permanent indoor snow centre in Singapore. Wholly owned by the Science Centre Board and operated by Snow Venture Pte Ltd, it has a three -storey high and 60-metres long snow slope for visitors to ski, snowboard and snow tube. Snow City opened in 2001 and has been regularly attracting visitors with its unique winter wonderland concept. It underwent a revamp, especially of the snow chamber, in October 2007. This snow destination is popular among Singaporeans, particularly those learning how to ski or snowboard before they embark on overseas ski resort holidays. Snow City is also popular among tourists, especially from Asia, who are unable to experience sub zero temperatures at home. Key facilities at Snow City include the Snow Chamber, function rooms, phototaking services, a Hot Chocolate Bar, our Minus Zero Ice Bar. Snow City offers skiing and snowboarding lessons, Sub-Zero Disco Parties, and a variety of special events throughout the year. It also serves as a wedding venue for couples looking for a truly white wedding. Snow City is open Tuesdays to Sundays, from 9.45am to 6.15pm. It is open on Mondays during school and public holidays. Admission: adults, 1 hour $16, 2 hours $27; children, 1 hour $14, 2 hours $22; group package of 2 adults and 2 children is $49 for 1 hour. Snow City rents skiwear and offers on-site photo services. Table 19: Admission Prices 1 hour Snow Play time Adult $16/pax 2 hours Snow Play time Adult $27/pax Child $14/pax 3yrs – 16yrs Child $22/pax 3yrs – 16yrs 52 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Snow City is a 3,000 square-metre centre with its facilities spread over 2 storeys. Of this, 1,200 sq-metres is covered with snow, called the Snow Chamber. You can snow tube, snowboard or ski your way down this 'giant snow slide'. The Snow Chamber is constantly maintained at -5°C. Given below are details of other facilities available: Level 1 Snow Chamber Ice Bar Snow Gifts Shop Pictureworks (Photo Services) 53 Snow Line (Retail shop and snow sports school) Snow Cafe Stroller Parking Area Locker Rental Area Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Level 2 Function Room The 160 sq.m Function Room is a multi-purpose room, which can be used to conduct our educational programmes, seminars, meeting place and other fun ideas to conduct games for family days and corporate functions. Rental rate per hour at $220 (before GST) Programs to choose from: 1 hour Enrichment Program 1 hour Snow Play Session 30min "Winter Olympics" session 30min "Snowy Treasure Hunt" session. Rentals Gloves @ $1.60/child $2.10/adult Waterproof pants @ $3.20 for children below 16 years old, $4 for adults Function room @ $220/hr Corporate Package A Corporate Package B 1 hr of snow play + 1 program 1 hr of snow play + 2 programs Min no. of 30 pax Min no. of 30 pax $25/pax $38/pax Includes jackets and boots Includes jackets and boots Corporate Package C 2 hours of EXCLUSIVE free & easy snow play session Corporate Package D Option 1 (includes jackets & boots) 1hr of snow play + Science Centre + 1/2 hr winter olympics 2 sessions of 30mins Winter Min. 30 pax Olympics $30 (adult), $25 (child) 54 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Snowy Treasure Hunt Professional Emcee to host the 1hr of snow play + Omni-Max function Min. 30 pax Professional Entertainer to $20 (adult), $16 (child) entertain the children Option 2 Option 3 Rental of function room 30mins Mascot Appearance Complimentary game prizes for Min. 30 pax Winter Olympics and Games $24 (adult), $196 (child) 1hr of snow play + Science Centre + omni-Max activities Free parking Maximum 200 pax Cost: $12 375 Programs to choose from: 1 hour Enrichment Program. 1 hour Snow Play Session. 30min “Winter Olympics” session. 30min “Snowy Treasure Hunt” session. Rentals Gloves @ $1.60/child $2.10/adult Waterproof pants @ $3.20 for children below 16 years old, $4 for adults. Function room @ $220/hr Winter Olympics A compulsively enjoyable programme fit for anyone who just want to have a roaring good time. Conducted exclusively in our very own Snow Chamber, Winter Olympics is a culmination of carefully tailored activities that challenge the mind while testing your physical agility. It is a program catered to the young and the young at heart because afterall, there are absolutely no age limits to having fun! After all, having fun has absolutely no age limit. Winter Olympic is a specially designed programme that effectively incorporates team building into its host of activities with light- 55 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE heartedness and exhilaration. For any game planner, it is an extremely versatile programme, as it allows the planner to mix and match from its pool of activities based solely on his/her objective. Activity Category Synopsis Speedo Adults and Children (above 8 years old) Each player from each team will slide down the slope one by one. Every team will be timed. Timing starts at the point when the first player slides down and ends when the last player of the group completes the slide. The team with the fastest time recorded will be the winner Breakage Adults and Children (above 8 years old) Everyone in a team will log his or her arm to form a chain, with different formation, and slide down the slope together. The chain should not break. The team with no breakage will win the game. The Mad Ball Adults and Children (above 8 years old) Each player from each team will use his or her mouth to hold a plastic cup, containing a ping pong ball. They will slide down the slope one by one. Once he or she reaches the bottom of the slope, he or she will place the ping pong ball into a big container. Whichever team has the most number of ping pong balls in the big container wins the game. Balloon Hurray Adults and Children (above 8 years old) 2 players from each team will hold each other's hands with a balloon in between them. They will slide down the slope together. Upon reaching the bottom of the slope, they will place the balloon into the big container. Whichever team with the most balloons in the big container wins the game. Puzzles Frenzy Adults only To search and solve puzzles. The puzzles are placed in the tug of snow. Each player will slide down from the slope and search for the puzzles (they must dig using both hands). Each player can only take one puzzle at a time. Once all the puzzles are collected, all the team players will get together to solve the puzzles. Whichever team solves the puzzles first wins the game. 56 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Musical Chairs (Adult version) Adults only Rubber tubes will be arranged in a circular form. In pairs, they have to walk round the rubber tubes once the music starts, holding hands. Once the music stops, they have to quickly sit down on a rubber tube and must keep holding each other's hands. The pair who is unable to find a rubber tube to sit down will be penalized once. They are given up to 3 chances. If they are penalized thrice, they will have to perform for the rest of the groups. Musical Chairs (Children version) Adults only Rubber tubes will be arranged in a circular form. The children have to walk round the rubber tubes once the music starts. Once the music stops, they have to quickly sit down on a rubber tube. The one who is unable to find a rubber tube to sit down will be penalized once. He or she is given up to 3 chances. If he or she is penalized thrice, he or she will have to perform for the rest of the children. Bursting Balloons Adults only Each player from each team will slide down one by one. Once he or she reaches the bottom of the slope, he or she will have to burst a balloon with both hands. Only when he or she has burst the balloon, will the next player able to slide down and repeat the process. There is a time limit of 10 mins. The team, which is able to burst the most balloons within the time limit, wins the game. Dress Me Up Adults only One player from each team will be dressed to the minimum, for example, in only T-shirts and jeans, and stands at the bottom of the slope. Several items will be given to the other team players, which are the hat, jacket, waterproof pants, ski boots, ski and poles. They will then slide down one by one, carrying one item at a time, and dress up the player standing at the bottom of the slope. The objective is to dress him or her up as a skier. The team, which finishes first, wins the game. 57 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE 58 Snowy Hunt Adults and Children (above 8 years old) All the team players will slide down to the bottom of the slope. Once they reach the bottom of the slope, they will have to start searching for white envelopes, containing one poker card, which is being cut into 2. They will have to try to join the poker cards with their other halves. For example, if a player finds half of spade queen, he will have to look for the other half of spade queen. The team with the most number of joined poker cards will win the game. Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Corporate Subzero Building Package Ice Bar 1) Ice Bar Package Price: $70 per pax * Only available from 7pm onward. * Min 2 hours booking * Min 30 paxs Package Include • 2 hours exclusive use of ice bar • 7 bottles of Vodka (42 below brand) served with ice shot glasses • Free flow of beer (Heineken/Tiger) maximum 100 bottles (350ml) • Bartender Service • Jacket, boots and gloves included 2) Blizzard Party Package Price: $100 per pax * Only available from 7pm onward. * Min 3 hours booking * Min 100 paxs Package Include • 3 hours exclude use of snow chamber • Free flow of beer (Heineken/Tiger) maximum 500 bottles (350ml) • 20 Complimentary Vodka (42 Below brand) served with ice shot glasses • Bartender Service • Professional Emcee • Sound system/lightings • Dance floor • Jacket, boots and gloves included • Subsequent hour: $500 per hour (Subject to GST charges) Ice Bar Rental 3) Booking rate for Ice Bar 59 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE * Only available from 7pm onward. * Min 2 hours booking * Min 30 paxs Time Rates: Weekday 7.00pm - 12.00am $500 per hour Weekend/Public Holiday 7.00pm -12.00am $750 per hour Education Packages Snow City adheres to the above educational mantra. Hence it developed various educational programs, which caters to both visual and experiential learners and enthusiasts. The park offers a new team-building ‘Winter Olympics’ program. Conducted by Game Masters, ‘Winter Olympics’ aims to foster group dynamics and cohesiveness while having a ball of a time at it. Below is the list of carefully planned programs that focus on learning, fun, and team-building. Min 30 pax: Inclusive of boots & jackets. Function room @ $220/hr Education Package A Teacher $10 Education Package B Teacher $10 Education Package C Teacher $10 Education Package D Teacher $15 Student Student Student Student $13 $15 $23 $30 Birthday Form Birthday Party @ Snow City! Be the cool kid who has everything, including your birthday in Sub-zero temperature! Hold your party in snow and at our Party Room, which promises lots of fun and games. Have a snowball of a time, tubing down our slope and playing with snow at our snow play area; explore the igloo with your gang of friends or have simply have a snowball fight! After all the snowy cool fun in our -5 degree Celsius chamber, proceed to Party Room for food and more games to celebrate your birthday! 60 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Snowy Birthday Package at a glance! Snowy Birthday Party Package A Price: $35 per pax For Children age between 312 years old Package Includes • 1hr of snow play + 1hr of party • Inclusive of jackets & boots • Min 20 pax • 1hr use of party room • Inclusive use of sound system • Inclusive of Party Host • Face painting for kids • Door gifts for kids • Buffet reception • No outside food Snowy Birthday Party Package B Price: $50 per pax For Teenagers only(12-18yrs old) Package Includes • 30mins Winter Olympic + 30 mins Free & Easy Snow play + 1hr of party • Inclusive of jackets & boots • Min 20 pax • 1hr use of function room • Inclusive use of sound system • Inclusive of Party Host • Dance Floor • Door gifts • Buffet reception • No outside food Rental of gloves: Adult - $2.10, Children (below 16 yrs old) - $1.60. Rental of waterproof pants: Adult - $4, Children (below 16 yrs old) - $3.20. Cost of per ticket is SGD 38 (minimum 20 tickets) Similar Concepts From Across the World Traditionally, snow sports have been associated with ski resorts located in mountainous regions. Snow sports have traditionally been an expensive sport limited to a certain periods of the year. Most of these ski destinations are located in places that require people to fly or travel for a few hours. In addition, once at the ski resort one has to pay for lift passes, rent ski equipment, stay at a hotel, ski lessons, meals, snow gear, and other miscellaneous expenses. This is certainly an expensive proposition for a family that has never been to a ski resort or ever tried skiing. 61 Development of Snow Park in Bangalore GOVERNMENT OF KARNATAKA INITIATIVE Dry Ski Slope Dry ski slopes are artificial slopes that mimic the attributes of snow and allow people to ski where natural slopes are inconvenient or unavailable. These slopes are lubricated using a mist or jet system to increase speed and prevent damage to equipment. These dry ski slopes are ideal to introduce skiing to beginners, but at the same time they also provide an opportunity for more avid and learned skiers to keep their skills sharp year round. The technology related to dry slopes has evolved over the past several decades. Dry slopes offer 365 days of skiing on artificial material that mimics the attributes of snow. Prices at facilities located in Europe range from $9 to $24 per hour including equipment rental. Unlike traditional ski resorts, where the slope conditions depend on the snowfall and weather, a dry ski slope offers a consistent skiing experience. The most popular activity on dry slopes is freestyle skiing and snowboarding. Dry ski slopes present an opportunity for developers, resorts and existing amusement park operators that are considering expansion to add a unique new feature to the list of amenities. With improvements in dry slope technology, such facilities can now be built in major urban areas as stand-alone facilities with an attached family entertainment center and in resort destination locations with an attached hotel. The lower cost of building and operating such a facility compared to a typical ski resort makes snow sports more affordable and brings the slopes to the masses. 62