Development of Disney Land Theme Part at Bengaluru
Transcription
Development of Disney Land Theme Part at Bengaluru
Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE GOVERNMENT OF KARNATAKA INITIATIVE DEVELOPMENT OF DISNEY LAND THEME PARK AT BENGALURU Detailed Project Report PROJECT REPORT TOURISM PROJECTS FOR INVESTMENT OPPORTUNITIES INVEST KARNATAKA 2016 NOVEMBER 2015 1 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Table of contents 1. Introduction ....................................................................................................... 5 1.1 Background ............................................................................................................................. 5 1.2 Objectives................................................................................................................................ 5 1.3 Approach and Methodology ................................................................................................... 7 2. Sector Profile ..................................................................................................... 8 2.1 Tourism Industry Overview ..................................................................................................... 8 2.1.1 In the Indian Context .......................................................................................................... 8 2.1.2 Tourism in Karnataka .......................................................................................................... 9 2.2 Amusement Park Industry Overview .................................................................................... 10 2.2.1 Indian Amusement Park Industry ..................................................................................... 10 2.2.2 World Amusement Park Industry...................................................................................... 12 3. Overview of Bengaluru ................................................................................. 16 4. Competition Analysis .................................................................................... 26 5. Infrastrucutre Assessment .......................................................................... 28 6. Project Concept ............................................................................................... 31 6.1 Tourism Policy ....................................................................................................................... 31 6.2 Project Component ............................................................................................................... 31 6.3 Project Drivers....................................................................................................................... 32 7. Suggested Project Location ......................................................................... 33 Road Infrastructure: .......................................................................................................................... 35 Proposed Development: ................................................................................................................... 36 8. Statutory & Legal Frameworks .................................................................. 38 9. Project Structuring Options ........................................................................ 39 9.1 Review of different PPP Frameworks ................................................................................... 39 9.2 Proposed Structure ............................................................................................................... 40 9.3 Responsibility of the developer ............................................................................................ 41 9.4 Implementation Structure .................................................................................................... 42 9.5 Risks assessment ................................................................................................................... 43 9.6 Types of Bidding .................................................................................................................... 43 9.7 Salient features of Instruction to Bidders (ITB)..................................................................... 45 2 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 9.8 Salient Features of Draft Project Development Agreement (PDA) ....................................... 47 10. Estimation of Project Costs ......................................................................... 53 11. Way Forward.................................................................................................... 55 10.1 Critical Success factors .......................................................................................................... 55 10.2 Way Forward ......................................................................................................................... 55 Annexure I - Case Studies ................................................................................... 56 1.1 Walt Disney World Resort, Florida, USA ............................................................................... 56 1.2 Genting Highlands, Malaysia................................................................................................. 72 1.3 Sentosa, Singapore................................................................................................................ 82 1.4 Six Flags ................................................................................................................................. 95 1.5 Universal Studios................................................................................................................. 101 1.6 Wild Wadi Water Park, Dubai ............................................................................................. 102 3 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE List of Tables Table 1: Investments in Tourism Sector.................................................................................................. 9 Table 2: Key Features of Theme Parks in India ..................................................................................... 11 Table 3: Urban Branding of Cities ......................................................................................................... 21 Table 4: Urban Household Annual Household ...................................................................................... 21 Table 5: Urban Branding of Cities ......................................................................................................... 22 Table 6: Weather & Climatic Influence in Bengaluru ............................................................................ 23 Table 7: Top visited Theme Parks in the World .................................................................................... 26 Table 8: Comparative Martrix of Theme Parks ..................................................................................... 28 Table 10: Requirements of difference PPP frameworks ....................................................................... 40 Table 11: Features of proposed DBFOT structure ................................................................................ 40 Table 12: Scenarios for Annual Payment .............................................................................................. 50 Table 13: Termination payments for Force Majeure Events and Event of Default .............................. 51 Table 14: Force Majeure Events ........................................................................................................... 52 List of Figures Figure 1: Approach to the project ........................................................................................................... 7 Figure 2: Top 10 Largest Amusement Park Corporation in the World ................................................. 13 Figure 3: Top 10 Largest Amusement Parks in Asia-Pacific Region ...................................................... 14 Figure 4: SEC Share across Cities........................................................................................................... 20 Figure 5: Income Groups across Major Cities in India .......................................................................... 22 Figure 6: World Map indicated location of Large Amusement/Theme Parks ...................................... 27 Figure 7: Implementation Framework..................................................................................................... 42 Figure 8: Implementation Framework .................................................................................................. 42 Figure 9: Types of Bidding ..................................................................................................................... 43 Figure 10: Stages of Bidding .................................................................................................................. 44 Figure 11: Critical Success Factors ........................................................................................................ 55 4 Development of Disney Land Theme Part at Bengaluru 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 emphasis 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 be 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. One of the projects identified for setting up of a large sized integrated theme park on the lines of Disney Land at Bengaluru. 1.2 Objectives GoK intends to develop a Disney Land Theme Park at Bengaluru to: i. ii. iii. 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. 5 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 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. 6 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 1.3 Approach and Methodology The approach to the entire assignment is depicted in the flow chart below. 7 Figure 1: Approach to the project Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 2. Sector Profile 2.1 Tourism Industry Overview 2.1.1 In the Indian Context India is fast emerging as an important tourism destination in the World. The campaign "Incredible India" which showcases the best that India has to offer to the tourists has now attracted worldwide attention. The proactive policies of the Government of India have ensured that tourism enjoys an important priority among all the States. Indian tourism industry is one of the fastest growing in the world, ranking among the world’s top five most popular tourist destinations. While the country has a lot to offer, it lags behind in certain regulatory aspects, bringing its competitiveness index ranking in this Sector to 62 among 133 countries. State policies are working actively to mitigate these drawbacks, to realise the high potential in this Sector for income and employment growth1. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich flora & fauna, and strong creative industries in the country. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 20192. Tourism is an important sector of the economy and contributes significantly in the country’s GDP as well as Foreign Exchange Earnings (FEE). With its backward and forward linkages with other sectors of the economy, like transport, construction, handicrafts, manufacturing, horticulture, agriculture, etc., tourism has the potential to not only be the economy driver, but also become an effective tool for poverty alleviation and ensuring growth with equity. Infrastructure development holds the key to India’s sustained growth in the tourism sector. Therefore, Ministry of Tourism made consistent efforts to develop quality tourism infrastructure at tourist destinations and circuits. To focus on development of infrastructure at places of national and international importance, the Ministry, through its scheme of providing financial assistance to the State Governments and Union Territory Administrations, has identified 38 mega tourism projects out of which some are under various stages of implementation. These mega projects are a judicious mix of culture, heritage, spiritual and eco-tourism in order to give tourists a holistic perspective. 1 Advantage Karnataka (GIM)-Sector profile 2 Travel and Tourism Competitiveness Report 2009 by the World Economic Forum 8 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE There are various initiatives under the New Tourism Projects as declared by the MoT. There is higher focus on Rural Tourism, Cruise Tourism (Ocean and River), Golf Tourism, Adventure Tourism, Medical Tourism, Wellness Tourism and Sustainable/Eco Tourism. The individual states also have their own Tourism policies which are drawn in line with MoT and also with the vision of state to promote the sector. It is expected that the tourism industry has the potential to bring in revenue worth US$ 51.4 billion by 2019. 2.1.2 Tourism in Karnataka The tourist flow into the state has steadily been increasing with a growth of more than 16 per cent. There has been major thrust to further improve tourism in Karnataka and it is proposed that all 30 districts in Karnataka will soon have their own tourism master plans. This is expected to attract tourists to little known places with potential and thus improve the prospects of Karnataka becoming one of India’s leading tourism destinations. With the largest number of institutes in hotel management and catering technology in the country, the State has a large pool of skilled human resources. The Sector is attracting significant investment by domestic and global players as infrastructure is being ramped up to meet the needs of the growing tourist activity Table 1: Investments in Tourism Sector Measures & Indicators/ Projections Arrival of Foreign Tourists (in lakhs) Employment generated by tourism (in lakhs) Arrival of domestic tourists (in lakhs) Revenue due to tourism (in Rs. lakhs) Forex earnings due to tourism (in Rs. lakhs) Tourism contribution to State GDP (%) 2005 2.53 4.49 244.89 28,587 39,153 13 2010 2020 3.23 5.26 5.72 9.32 359.82 776.83 46,039 1,19,413 49,970 81,396 15 25 Source: Govt. of India, Department of Tourism, Market Research Division, Final Report on 20 year Perspective Plan for Development of Sustainable Tourism in Karnataka – March 2003 Prepared by Dalal Mott MacDonald Karnataka has Tourism Master Plan 2010-20 prepared with a vision to improve and give a boost to the tourism sector in the state. The Master plan aims to place Karnataka in the “Numero Uno” position in terms of tourist arrivals, tourism spend, capital inflows for infrastructure development and other critical indicators of tourism growth and development in the state. The Tourism Master Plan of the Government of 9 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Karnataka draws its inspiration from the vision of the State as enshrined in its Vision 2020 document. One of the thrust areas as listed in the Vision Document was Theme and Entertainment Parks wherein it is stated that Theme and Entertainment parks will be promoted and established in Bengaluru and other places in Karnataka. Private enterprise will be encouraged to establish such entertainment parks through appropriate PPP model. The private Sector has shown considerable interest in the tourist industry in Karnataka. Given the high growth potential, the State has attracted investment from the hotel industry. All top-end luxury hotel chains have properties in and around Bengaluru, while others are expanding. At the same time, the Government has been actively working to aid private investment. There are 9 projects under implementation in the hotels and resort segment under PPP mode with the Government. Worth an investment of more than Rs. 300 crores at the following locations: Jog Falls, Banvasi, Agumbe, Badami, Pattadakkal, Aihole, Belur, Bijapur and Gokarna, the projects include development of theme parks, civic amenities, hotels and restaurants, organised retail etc; in short creating a tourist friendly environment at chosen locations. As of June 2009, there were 99 projects under implementation in the hotel Sector in Karnataka, approved by the Government, with an investment of Rs. 2,490 billion. 10 2.2 Amusement Park Industry Overview 2.2.1 Indian Amusement Park Industry 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. 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 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE remain: low per capita income, low consumer willingness to spend, inefficient infrastructure support, non availability of land and financing issues. There are a good number of examples of medium to large size parks which have been successful in India. The following table covers the main features of such parks: Table 2: Key Features of Theme Parks in India Sl No Name of the Park Location 1 Noida Entertainm ent City Noida Area (in Acres) 150 2 Kishkintha Chennai 120 3 Essel World Mumbai 80 4 Veegaland Kochi 30 5 Athisayam Amusemen t Park MGM Dizzy World Madurai 70 6 8 Tamil Nadu Ocean Park 27 20 Hyderab ad 9 Ramoji Film City 2000 Hyderab ad Main Attractions 3 entertainment Zones with more than 30 rides for different age groups, Food Courts and a Shopping Complex Theme water park with many dry rides also for all ages ranging from 6 to 60 79 racy rides and zippy slides with other attractions including ice skating, bowling, cricket zone and discotheque etc. Ecofriendly amusement park with 26 rides and other attractions like musical fountain, laser show and visual theatres Water theme park with about 40 games and 20 rides With around 60 rides, the major attractions here are the water chute, parachute tower, pirate boat and a 110 feet “dizee shake” challenger. Water theme park with a spectacular mix of internationally popular Water Rides and Amusement Rides for all age groups and provides full day entertainment to all its patrons. World’s largest integrated film studio complex,It is also a popular tourism and recreation centre, containing both natural and artificial attractions including an amusement park. Year of establis hment 2000 Visitors (in Lakhs per year) 3.5 1995 Not available 1996 18 2000 6.5 Not available 1994 Not available Not available 1996 15 11 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Sl No Name of the Park Location 10 Wonderla Bengalur u 11 Adventure islands Delhi Area (in Acres) 82 62 Main Attractions The rides area is limited to about 20 acres. The park has 28 rides apart from other attractions including cinemagic simulation and musical fountain. The major attraction at Wonderla is the 30 m high Ferris wheel mounted on a 15storey high building and a thrill ride Hurricane. This amusement parks has around 20 different rides, imported from major European manufactures, in order to get the original feeling. Some of the major rides in this park are a freefall ride, a merry-goround, demolition derby, and other such rides. Kids of all ages, and adults will both enjoy the rides. Year of establis hment 2005 Visitors (in Lakhs per year) 13 2006 Not available 2.2.2 World Amusement Park Industry The Theme Park and Amusement park industry started to grow with the success of Disneyland which started operation of its first park in 1955 at California and the second park at Florida in 1971. There are maximum numbers of Theme/Amusement Parks in North America. The expansion of Disney in terms of geographical spread shows the success of the concept of themed entertainment and amusement. The footfalls are from the large theme parks in Florida and California. From the top 25 parks in the world 12 are located in USA. The Second highest footfall to such amusement parks is witnessed in Asia Pacific region which accounted to about 65.5 million. Japan is the largest contributor to these high footfall numbers followed by China and they take a share of 31% of the global market. Disneyland and Disney Sea at Tokyo are the most successful parks in this region which have contributed to these high footfalls. Asia Pacific region has had many new entrants since early 2000 and have already captured most of the eastern market share. A rush of theme park construction across Asia that will result in new homes for Mickey Mouse, the Monkey King and Hello Kitty is also providing a financial lifeline for the world’s elite group of entertainment designers. 12 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE New theme parks, resorts and casinos are scheduled to open from Singapore to Seoul over the next several years as property developers and entertainment companies aim to draw Asia’s rapidly growing middle classes. They’re betting there will be a big market for family amusement rides, live shows and the chance to pose for a picture with Snow White. Theme parks in the US struggled last year, with modest attendance gains as the economy eked out a muted recovery from recession3. Six Flags Entertainment Corp, which runs 19 parks in North America, filed for bankruptcy protection in 2009 because of heavy debt. The situation is similar in Europe, where operators are mostly renovating or buying smaller rivals. One of the few new parks planned in coming years is being built on Spain’s Mediterranean coast, where officials are teaming with US film company Paramount. Annual Attendance in Millions Figure 2: Top 10 Largest Amusement Park Corporation in the World 1 Walt Disney Parks and Resorts United States 140 2 Merlin Entertainments Group United Kingdom 120 3 Universal Studios Recreation Group United States 100 4 Parques Reunidos Spain 80 5 Six Flags Inc. United States 60 6 Cedar Fair Entertainment Company United States 40 7 SeaWorld Parks & Entertainment United States 20 8 OCT Parks China People's Republic of China 0 9 Herschend Family Entertainment Corporation United States 2008 2009 2010[3] 10 Compagnie des Alpes France Not so in Asia: Disney’s long-awaited US$3.7 billion park is scheduled to open in Shanghai in 2016. The Pasadena-based Hettema Group is designing a Hello Kitty park set to open southwest of Shanghai in 2014. Burbank-based Thinkwell Group is working 3 Source of Graph- TEA/AECOM 2010 Report 13 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE on a Monkey Kingdom park near Beijing based on the classical Chinese epic novel, also scheduled for 2014. Outside China, Southeast Asia’s first Universal Studios theme park opened last year in Singapore, part of a US$4.4 billion resort that also includes the city-state’s first casino. Another Universal Studios is slated to open in 2014 in Seoul, South Korea. Asia’s first Legoland is scheduled to open in southern Malaysia in 2013. A US$2 billion, five-star hotel and amusement park slated to open in southern Vietnam in 2014 has lured Joe Jackson, father of the late king of pop Michael Jackson, as one of its investors. Asian theme park attendance is forecast to grow to 290 million next year from 249 million in 2007, while spending in that period will rise from US$6.4 billion to US$8.4 billion, according to PricewaterhouseCoopers4. Figure 3: Top 10 Largest Amusement Parks in Asia-Pacific Region 16 1 Tokyo Disneyland Japan 14 2 Tokyo DisneySea Japan 12 3 Universal Studios Japan Japan Annual Attendance in Millions 10 4 Everland South Korea 8 5 Lotte World South Korea 6 6 Hong Kong Disneyland China 4 7 Ocean Park Hong Kong China 2 8 Nagashima Spa Land Japan 9 Yokohama Hakkeijima Sea Paradise Japan 0 2008 4 Taipei times article in July2011 2009 2010[3] 10 Happy Valley China 14 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Water Parks are more popular in USA followed by Asia Pacific Region. Top 9 parks in USA had almost 10.0 million footfalls in year 2009 and Asia Pacific Region had about 9.3 million footfalls in the same period. The notable ones in USA are Typhoon Lagoon and Blizzard Beach, both at Walt Disney World Resort. Chime-Long water park in China witnessed highest footfalls in the Asia Pacific region. Middle East has Wild Wadi water park at Dubai which alone witnessed about 0.67 million footfall in year 2009. Ancillary offerings Apart from rides and attractions, amusement and theme parks across the world offer a variety of ancillary services to generate additional revenues. These products and services generally depend on the profile of the park’s target customer segment and their spending pattern. Some of the key facilities include: 1. Hospitality Accommodation/ Hotels Themed restaurants/Cafes and bars/ Food pavilions Convention centers 2. Retail Souvenir shops/Shopping malls/ Shopping complexes/ Factory outlets 3. Live Entertainment Live shows/ Theaters/ Cinemas/ Concert halls 4. Conveniences Car parking/ ATMs/ Baby care centers Transportation - Electric convenience vehicles/ Facilities for differently abled persons 5. Sports Golf course Gym The relationship between merchandising and theme park visits clearly has potential for further growth, and the advantages of stimulating this demand are becoming increasingly recognized by theme park operators. They are maximizing profits out of their rides, activities and exhibits by linking rides to merchandise and placing goods at spots where visitors are most likely to buy, and that is close to the key rides, activities and exhibits. 15 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 3. Overview of Bengaluru 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. 16 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Table 3: 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. City Administrator Greater Bangalore Municipal Corporation (Bruhat Bangalore Mahanagar Palike) 17 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Aspect Details 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 Disney Land Theme Park will be very constructive to attract more domestic and international tourists in the city. The Disney Land Theme Park will also act as a weekend destination for the city – dwellers. 3.1 Advantage Bengaluru 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 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: 18 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 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. 3.2 Population Growth of hotels with concession on loans and VAT exemption provided. 19 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 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) Demographic Development 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% 80% % of Urban Households 70% 60% 50% 20 40% 30% 20% 10% SEC A SEC C SEC D e Pu n ai ata mb Mu Hy de SEC B Ko lk ad lhi rab en Ch De na i e lor ga Ba n ed ab ad 0% Ah m 3.3 SEC E Figure 4: SEC Share across Cities The table shows the broad urban branding of Indian Cities. Interesting, 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. Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Table 4: Urban Branding of Cities Cities SEC A SEC B SEC C SEC D SEC E SEC A&B Ahmedabad 14% 16% 28% 26% 16% 29% Bengaluru 18% 15% 29% 24% 14% 33% Chennai 16% 15% 27% 26% 16% 31% Delhi 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% Source: City Skyline 3.4 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 5: Urban Household Annual Household 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 21 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Figure 5: Income Groups across Major Cities in India 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 Mu mb ata Ko lk ad rab Hy de lhi De na i en Ch e lor ga Ba n Ah m ed ab ad 0% > INR 300k The table shows the broad urban branding of Indian Cities. Interesting, 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 6: 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 & Automative Hub Indore Commercial & Industrial Hub Cities Mumbai Hyderabad Urban Branding 22 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Cities Ahmedabad Chandigarh Coimbatore 3.5 Urban Branding Cities Urban Branding 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 Infrastructure Bengaluru and Karnataka have good connectivity to the rest of India and the world. The major infrastructure developments in Bengaluru have been covered earlier in the report. In addition, the city and the state enjoy excellent access through international airports at Bengaluru and Mangalore and the Golden Quadrilateral passes through Bengaluru. 3.6 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. Table 7: 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. 23 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 3.7 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. 3.8 Tourist Footfall Tourist destinations in Bangalore together experience nearly 1.75 crores annual tourist footfalls throughout the year. Table 8: Annual Tourist Footfalls (2014 Tourist Data) District Tourist Destinations Ghati Subramanya Bengaluru (Rural) Tippu Birth Place & Fort Devanahalli Shivagange Bengaluru (Urban) Lalbagh Viveshwaraiah Museum Domestic International Total 10,86,257 0 10,86,257 3,78,914 0 3,78,914 8,18,449 0 8,18,449 36,85,517 14,148 36,99,665 21,99,195 576 21,99,771 24 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Bannerughatta 48,69,395 591 48,69,986 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 National Park Iskcon Temple Total 1,75,59,420 Thus, the average tourist footfall in each tourist destination of Bangalore will be 11 lakhs. Taking into account that nearly 50% of the total number of tourists would visit the newly developed Disney Land Theme Park, the annual tourist footfalls of the project would be nearly 6 lakhs. 3.9 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. 25 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 4. Competition Analysis In 2009, roughly a quarter of Disney's revenue came from overseas operations. Asia contributed just 5%, therefore leaving a large potential untapped. In 2009, eight of the world's top 20 amusement parks (by number of visitors) were in Asia, according to a report by Themed Entertainment Association as indicated in the table below: Table 9: Top visited Theme Parks in the World Rank Amusement Park Location 2009 1 Florida, USA 17,233,000 2 3 4 Magic Kingdom at Walt Disney World Resort Disneyland at Disneyland Resort Tokyo Disneyland Disneyland Paris California, USA Tokyo, Japan France 15,900,000 13,646,000 12,740,000 5 6 Tokyo Disney Sea Epcot at Walt Disney World Resort Tokyo, Japan Florida, USA 12,004,000 10,990,000 7 Disney's Hollywood Studios at Walt Disney World Resort Florida, USA 9,700,000 8 Disney's Animal Kingdom at Walt Disney World Resort Universal Studios Japan Everland Disney's California Adventure at Disneyland Resort SeaWorld Orlando Universal Studios Florida at Universal Orlando Resort Ocean Park Hong Kong Nagashima Spa Land Florida, USA 9,590,000 Osaka, Japan South Korea California, USA 8,000,000 6,169,000 6,095,000 Florida, USA Florida, USA 5,800,000 5,530,000 Hong Kong, China Kuwana, Japan 4,800,000 4,700,000 Florida, USA 4,627,000 Hong Kong, China 4,600,000 9 10 11 12 13 14 15 16 17 Islands of Adventure at Universal Orlando Resort Hong Kong Disneyland 18 Yokohama Hakkeijima Sea Paradise Yokohama, Japan 4,500,000 19 Universal Studios Hollywood California, USA 4,308,000 20 Lotte World Seoul, South Korea 4,261,000 Source: The Global Attractions Attendance Report, 2009 by Themed Entertainment Association 26 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Some of the Large Amusement/Theme Parks across the World are shown on the world map below: Figure 6: World Map indicated location of Large Amusement/Theme Parks 27 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 5. Infrastrucutre Assessment Large Parks: Comparative Matrix of Large Sized Amusement Parks Table 10: Comparative Martrix of Theme Parks Walt Disney World Genting Highlands Resort, Florida Sentosa Location Orlando, USA Malaysia Singapore Operator Owned and operated by the Walt Disney Parks and Resorts segment of The Walt Disney Company Resorts World Genting RWG is Resorts World operated by Singapore and Genting Malaysia Universal Studios Berhad Year of Opening 1971 1971 1972 RW Sentosa 2010 28 Distance nearest City from 35 km (Orlando) Estimated number 50.97 of footfalls visitors 50 km Lumpur) 0.5 km from main (Kuala Singapore City Isalnd million 19.9 million visitors 7.83 million (2009) Estimated Cost* Historical* Resorts World at Sentosa cost Multi-million Ringgit S$6.59-billion theme park* (~Rs. 30,973 Crores) Overall Area 28,000 acres 14,800 acres 5,000 acres Theme Park Area 1072 acres 80 acres RW Sentosa - 121 acres Universal Studios Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE - 50 acres 1,800 rooms No of Keys (Hotel 40 Hotels with over Six Hotels with over spread across six Rooms) 35,471 rooms 10,000 rooms hotels with varying themes. * - Rides & facilities were added over the years. It is that typically for a large amusement park requires around 100 acres for the core theme park area and sufficient area additionally for ancillary offerings and hotels. A large park accommodating players like Disney would need a minimum of 750-1000 acres. Some major initiatives by the government which would boost the performance of such projects are: 1. Development of the Tourism Industry as envisioned in the Karnataka Tourism Policy Tourists comprise the major customer segment in the industry. For instance, domestic and international tourists together contribute more than 50% of the footfall in Walt Disney World, a major Disney theme park. As India has no such significant regional park region, Karnataka could develop this niche over a period of time. Bengaluru is already known as Garden City and developing regional parks would give a booster to the region. The current National Tourism Policy by the Government of India has recognized the power of “Brand Positioning” and “Source Marketing” as part of the “Incredible India” strategy. The Karnataka Tourism Policy is significantly aligned with it to ensure international, national and regional focus in attracting foreign and domestic tourists in large numbers, for extended stay and higher share of their wallet. This provides first mover advantage for Bengaluru and Karnataka in this segment of L&E and Tourism. Amusement parks ideally should be seen to be part of the social infrastructure required by all modern cities, which would justify the high initial capital investments. 2. Infrastructure and Linkage: The most critical role where the local government has to play a role is to ensure the success of any proposed amusement park development. All successful parks have multiple modes of affordable and comfortable transport. Certain operators have been seen to set up parks in proximity to expressways/ interstate highways to facilitate easy accessibility. The journey to the park should be seen to be part 29 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE of the overall customer experience. 3. Incentives for the establishment of amusement parks: The incentives can be in terms of reduced taxation laws, support in land acquisition process, helping the land acquisition costs not to spiral upwards due to high RE anticipations. The presence of large players in the market is important for the overall development of the industry as it results in increased customer interest and participation. Before finalizing the location for its Disneyland in Europe, Disney was in negotiations with the Spanish and French governments. The French government won the bid with tax breaks, loans and land provided at below cost. For the year 2010, Disneyland Park emerged as the most popular theme park in Europe, registering a footfall of approximately 10.5 million. It is also to be noted that in India, the entertainment industry faces high taxation by state governments. Certain tax breaks will provide an incentive on the same lines, which has been the primary source of concern for the industry. Although ET is charged at cinemas, circus, and clubs, the concept of this tax was to restrict people from consuming/ acquiring 'harmful' products such as cigarettes, and alcohol. 4. Single Window Clearances Providing access to Single Window Clearance to these high profile and high capital intensive projects for faster implementation to minimize time –loss in the process to commence operations would be a great boost to the investor community. This is important since it gives the required investor comfort required by the Government and helps quicker clearances at offices without getting bogged down by bureaucracy and rules. 5. Regulation of safety practices GoK has been an equity partner in major projects as in BIAL which have become international landmarks within city. The success of the same can be a strong benchmark to plough into the L&E Tourism sector and enable in setting up India’s first Disneyland. 30 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 6. 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 Disney Land Theme Park in the context of the Tourism Policy of Karnataka and other similar facilities established in India and abroad. 6.1 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. 6.2 Project Component Based on the review of such theme parks in India and abroad and analysis of the amusement park industry, the following components are suggested at the proposed Disney Land Theme Park in Bangalore: Components Indicative size / area Disney Land Theme Park 50,000 sq.ft Rides 50,000 sq.ft Resorts 20,000 sq.ft Water Park 25,00 sq.ft Food Court 5000 sq.ft. Live Show/ Program Zone 15,000 sq.ft Land scaping & Support Infrastructure 15,000 sq.ft The Disney Land Theme Park is proposed to be developed in an area of around 15 acres. To make the project financially viable for a private developer / operator, in addition to the Disney Theme Park, other entertainment activities such are also proposed as indicated in the above table. For improving footfalls to the proposed park, it is suggested that new rides / games / packages and innovations are introduced periodically and the park be developed in a phased manner. This would ensure 31 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE repeated visits from customers who would like to revisit for newer rides and entertainment. The facilities proposed to be developed are detailed out in the table below: Sl. No Facility Components 1. Disney theme based Would comprise of Disney based theme zones entertainment zone with a built up area of 50,000 sq.ft. 2. Rides with a built-up area Would comprise of adventure rides of 50,000 sq.ft 3. Resorts in area of 20000 Would comprise of theme based resorts. sq.ft 4. Water Park with a built-up Would comprise theme based rides: area of 25,000 sq.ft Water Slides into a swimming pool Aqualoop Sea life aquarium Multi-liner racer etc 5. Live Show/ Program Zone Would include an open air theatre and seating area with a built up area of 15,000 sq. ft. 6. Food court with a built-up Sufficient space for food court to manage the the area of 5,000 sq.ft visitors. 7. Landscaping Would include open space planning, gardening, picnic zones and other spaces 8. Support Infrastructure Would include toilet, parking etc. 6.3 Project Drivers The following issues are critical in ensuring the implementation and success of the Project: 32 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE i. Land The minimum land requirement for the Project would be 15 acres. DoT would need to finalise the land parcel required for development of the proposed 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 Disney Land Theme 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. 7. Suggested Project Location Considering all the factors mentioned in the earlier chapters, the ideal location for developing a Disney Land Theme Park would be North Bangalore. The supporting analysis of identifying North Bangalore as the project location is discussed below. 33 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 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 the Disney Land Theme Park will be North Bengaluru. IT & ITES Finance & Business Districts SEZs 34 Medical Hub Proposed Development in North Bengaluru Residential Aero Industry Hospitality & Entertainm ent Development of Disney Land Theme Part at Bengaluru 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 7: 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. 35 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Figure 8: Bangalore International Airport Planning Area - Outline Development Plan 36 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 Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 37 Figure 9: North Bangalore Map Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 8. Statutory & Legal Frameworks There are no comprehensive safety regulations for amusement parks. There are design standards for individual components like wave pools but a holistic approach primarily from the safety point of view is essential. The safety best practices of Six Flags have been looked additionally for this purpose. (Medium Parks Report) It has been seen that fatal accidents as in the case of Sammy’s Dreamland in Bengaluru resulted in bad publicity, legal ramifications and eventual closure of that park. IAAPA (Indian Association of Amusement Parks & Industries) has certain safety regulations in place. These need to be strengthened further and State should also help in further improving the concern on the factor which adds to consumer comfort. Several state governments in the US have enacted laws under which qualified safety inspectors need to inspect rides annually. This brings uniformity and aids institutionalization of safety standards. On the other hand, in Japan, the safety guidelines for amusement and theme parks are specified in the Japanese Industrial Standards (JIS). Under the JIS, park operators are obliged to conduct one or more safety checks every year. The development and dissemination of the industry-wide standards initiated by regulatory bodies improves customer confidence and safety. Most countries also regulate safety practices in the industry through the enactment of laws and provision for annual ride inspection. India has yet to development industry standards in terms of design and safety norms to ensure a safe environment in proposed amusements. Similar standards and procedures can be developed. 38 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 9. Project Structuring Options This chapter sets out the salient features of the different structuring options for undertaking the implementation of the project under a suitable PPP model and recommendation on the most suitable structure. 9.1 Review of different PPP Frameworks There are mainly three different frameworks for contracting work under the PPP model as described below: 9.1.1 Service Contract: A specific service (discrete and clearly defined) is contracted out by the public agency to a private operator. Payment is usually on fee per package basis. Service contracts are subject to frequent competition and usually last for shorter term like one year. It is also common to give out separate contracts for different parts of the project to more than one operator, thereby enabling comparative competition. 9.1.2 Management Contract: Under this arrangement, the private sector assumes the responsibility for core activities such as operations and maintenance of units in a specific geographical sector (which could comprise the whole or only a part of the entire project) or at a defined level of responsibility. Public entities legally remain the owners of the assets. A private company may agree to take over the responsibility for managing a service to specified standards but using the staff, equipment, vehicles and buildings of the public entity. In such a situation the private company would bring in its management expertise, however is unlikely to make major capital expenditure under such a structure. 9.1.3 BOT/ Concession Contracts: The private operator is responsible for financing new investment in entire project over the life of the contract. The assets are owned by the public entity; however, the private operator takes over responsibility of managing assets, creating new assets where required, raising finance for the new investments, providing the service, operations and maintenance, collection of charges, if applicable. This arrangement could apply to a specific jurisdiction or geographical area. The private operator would pay an annual fee or may receive an annual subsidy depending on the financial circumstances of the service. Such arrangements may apply in respect of commercial operations owned by an authority where the user charge either covers or represents a substantial proportion of the total cost. 39 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 9.1.4 Review of the requirements for different frameworks Table 11: Requirements of difference PPP frameworks Framework Service Contract Management Contract Concession Technical Expertise Yes Yes Managing Expertise No Yes Operating Efficiency No Yes Capital Investment No No O&M Investment No No Yes Yes Yes Yes Yes Based on the above available frameworks, the following structure has been analyzed for undertaking the project: 9.2 Proposed Structure The salient features of the proposed structure are detailed out as shown below: Table 12: Features of proposed DBFOT structure S. No 1 2 Particulars Details Framework for implementation of Development of Disneyland Theme Park under project Design, Build, Finance, Operate and Transfer (DBFOT) model Facilities to be • Theme Park developed/maintained • Allied infrastructure 40 3 4 Agreement period Parties involved period/Contract 30 years (including 3 years for construction) 5 Ownership of assets 6 7 Capital investment Operation & Maintenance 8 9 Revenue accruals Payment Mechanism 10 Target category of private sector Authority (DoT or any Government Agency who owns the land) Developer (Developer) Auhtority (Handback of all assets by the developer at the end of the agreement period) By the Developer Responsibility of the Developer To the Developer Developer could make annual payment to the Authority with an escalation per annum or a revenue sharing mechanism can be adopted Theme Park operators Adventure sports operators Real Estate developers The advantages and disadvantages of the structure are listed below: Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE a. Advantages: i. ii. iii. iv. v. vi. vii. Bidder is allowed flexibility to develop the area in accordance with Authority’s requirements Ownership of the asset remains with the Ahthority. 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 handed back to the Authority at the end of the concession period. Risk of time bound completion, cost overruns and revenue risk is transferred to the Bidder. Revenues streams are assured and fixed. b. Disadvantages i. ii. iii. Technical proposals of the Bidders may need to be evaluated. Time for development may increase slightly in cases of conditions precedent not being completed on time All risks are borne by the Bidder and hence the Bidder may expect higher returns from the project 9.3 Responsibility of the developer Under this framework, the responsibilities of the developer would be: a. To design, finance and develop the project facilities in line with the Authority’s requirement b. Recover the investment by levying entry fee and user charges on the various components c. Operate and maintain the facilities throughout the agreement period d. Make annual payments as agreed in the Project Development Agreement e. Handback all the assets to the Authority at the end of the agreement period 41 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 9.4 Implementation Structure Figure 11: Implementation Framework Project Engineer/Authority Auhtority Figure 10: Implementation Framework 42 The following diagram depicts the overall framework of the project execution: The following would be the salient features of the implementation framework: a. Handover of the Project site by the Auhtority on execution of the Project Development Agreement (PDA) to the developer (SPV formed for undertaking the project under PPP model) along with the grant of development rights for development of the project as per terms of the PDA. b. The project would be developed by the developer wherein it would be responsible for designing, financing, development, operation & maintenance and transfer of the project at the end of the agreement period. c. Concession payments would be made by the developer to the Authority against grant of the development rights. Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE d. Project implementation would be monitored by a Project Engineer employed by the Authority for overlooking the day to day activities as well as overall performance of the project. e. The developer would be allowed to levy and collect entry fee and user charges from the users of the project facilities f. On expiry of the agreement period, the developer would hand back the project site and facilities developed on ensuring that the quality and condition of all the facilities developed are in good and working condition 9.5 Risks assessment Under the above framework, following are the risks that would be transferred to the developer: a. b. c. d. The mobilization of finances would be the responsibility of the private developer and the risks associated with the financial aspects in terms of profitability and returns would lie with the developer. The risk of adhering to the Applicable Law would be passed on to the private developer. The risk of time-bound completion of the Project would be passed on to the private developer. Since the revenue streams for the private developer from the Project would commence only after completion of the Project, it would be in the interest of the private developer to complete the Project as early as possible. The risk of over-runs in construction cost and operational expenses would be borne by the private developer. 9.6 Types of Bidding The process of selection could be through an open competitive bidding process using objective bidding parameters for evaluation of proposals. The bid process could be either a single stage or multi stage process. Figure 12: Types of Bidding Single Stage Involves low level of preparation and less preparatory lead time Assumes significant industry knowledge Can be used for Projects of low complexity Two-Stage process Complexity of the Project is high/ Project is new to market High cost of preparation of proposal by Bidders 43 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE a. Single stage Bid Process A single stage bidding process is used when the contracting agency has sufficient sector knowledge and the Project implementation framework is a tested one. It is hence used for Projects with low complexity. Under this bidding structure, the Bidders are required to submit documents confirming to qualification criteria (technical capability and financial capability), technical proposal and their Financial Bid in two separate envelopes. The contracting agency evaluates the technical proposals and the Financial Bids of the qualified bidders are then opened for evaluation and selection of developer. Single stage process results in a lower lead time for bidding. Generally pre-qualification of bidders is assumed or is used for an approved / short listed group of bidders. One of the important considerations for such bidding process is adequately defining the contours of the Project. b. Two stage process This process is adopted for Projects with high complexity or Project is new to the market or high cost of preparation of proposals. A typical two stage bidding process comprises of the following steps: Figure 13: Stages of Bidding RFQ Stage 44 RFP Stage Developer In the first stage that is the RFQ stage, the Bidders are short listed on the basis of their qualifications required for the Project. The qualification is assessed on the basis of past experience of the Bidders in carrying out similar Projects and their financial capability. RFP documents setting out the terms and conditions of the Project are then issued to the short-listed Bidders. The Bidders are required to submit documents confirming to qualification criteria (technical capability and financial capability) and technical proposal in the first stage. Subsequent to short listing of qualified bidders at this stage, the qualified bidders are then invited to submit the Financial Bid. Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE It is recommended to adopt a single stage bid process for the Project. The bidding process would involve preparation of tender documents and carrying out a bid process for identification of the developer. 9.7 Salient features of Instruction to Bidders (ITB) This section sets out the eligibility conditions for the Bidders, description of bidding process, evaluation process to be adopted by the Authority, Financial Bid and other conditions: a. Bid Process for Selection of Private Developer It is proposed to select a suitable private developer for the Project through a transparent bidding process as per the provisions of the Karnataka Transparency in Public Procurement Act, 1999. The proposed process for selection of the private developers has been outlined below. The Bid submission shall be through hard copy or e-tendering mode and shall include the following documents: Key Submissions Qualification Submissions Technical Proposal Financial Proposal The Evaluation of the Bids would comprise the following 4 stages: i. The first stage of the bid process would involve opening and evaluation of the Key Submissions and a test of responsiveness based on the provisions of the ITB. The Bids found to be substantially responsive would be considered for the next stage i.e. Evaluation of Eligibility Criteria. ii. In the second stage, the information of the Bidders relating to their eligible experience comprising Technical Capacity and Financial Capacity (“Eligibility Criteria”) would be evaluated as per provisions of the ITB. Bidders who meet the Eligibility Criteria would be considered for evaluation of Technical Proposal. iii. In the third stage, the technical proposals of the Bidders meeting the Eligibility Criteria would be evaluated and marked. Only those Bidders who score 70 marks and above would be declared as technically qualified Bidders and shall qualify for the next stage of evaluation. 45 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE iv. The Financial Proposal of “Technically qualified Bidders” would be opened and evaluated to identify the Selected Bidder as per the provisions of the ITB. The Financial Bid would be the amount payable by the developer to THE AUTHORITY on an annual basis (Annual payment). The Bidder quoting the highest Annual payment would be the Selected Bidder. b. Evaluation Process Evaluation of bids received would be carried out in the following stages: i. Test of Responsiveness This stage involves opening of the Key Submissions and the documents would be checked for responsiveness. A Bid shall be considered responsive only if the following documents are submitted in accordance with the provisions of the ITB and as per the formats provided in the ITB and the Bid is signed, sealed and marked in accordance with the provisions of the ITB: A Demand Draft towards the cost of the RFP Document. Letter of Bid in the prescribed format; Power of Attorney for signing of Bid in the prescribed format; Power of Attorney for Lead Member of Consortium in the prescribed format , if applicable; Bid security in the form of a Bank Guarantee in the prescribed format or as Demand Draft for an amount mentioned in clause (g) below. Technical Capacity and Financial Capacity in accordance with the provisions of the ITB; Copy of Memorandum and Articles of Association of the Bidder; Copies of Bidder’s or each Consortium Member’s duly audited annual reports and financial statements; Certificate from the Statutory Auditor/ Independent Auditor for Associate, if applicable; Jt. Bidding Agreement, in case of a Consortium; and A copy of the draft Project Development Agreement (PDA) with each page initialled by the person signing the Bid. 46 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 9.8 Salient Features of Draft Project Development Agreement (PDA) This section sets out the key obligations of the Parties, events of default leading to termination, Termination Payments, hand back requirements and dispute resolution mechanism a. Obligations of the Developer The Developer shall: i. Design & develop the project facilities at its cost and expenses within the construction period. ii. Design & develop the project facilities in conformance to the approved PDP. iii. Undertake developments in accordance with requirements set out by the Authority in the Bid documents. iv. Operate and maintain the Project Facilities during the Agreement period (including the existing developments currently maintained by the Authority) as per specifications set out in the PDA. v. Make regular payments to the Authority in accordance with the payment terms set out in Bid documents. vi. Develop alternative sources of power as per assessment carried out in the approved PDP, if required. vii. Develop elaborate safety and emergency evacuation arrangements. viii. Comply with all Applicable Laws and Applicable Permits ix. Ensure that; The Project Site remains free from any type of encroachments during the agreement period No damage is done to the existing assets/properties of the Authority. Entertainment of illegal activities shall be strictly prohibited in the project vicinity x. Transfer the Project Site and Project Facilities to the Authority upon expiry / termination of Agreement. b. Obligations of the Authority The Authority shall: i. Handover proposed Project site within 6 months from Appointed Date (date of signing of the Project Development Agreement) ii. Grant Project Development Rights to the Developer iii. Assist the Developer in procuring all required approvals, permissions and authorizations etc. 47 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE iv. Undertake shifting of any utility including electric lines, water pipes etc hindering the development activities v. Upon written request from the Developer, facilitate in obtaining necessary infrastructure facilities and utilities, including water, electricity and telecommunication facilities c. Condition Precedent The timeframe for achieving Condition Precedent would be 6 (six) months from the Appointed Date or extension thereof. Developer: i. Developer shall have prepared and submitted the detailed Project Development Plan (PDP) to the Authority for approval as per the guidelines provided in the clause below ii. Developer shall have obtained approval on the design and planning of the Project submitted at the time of bid submission iii. Developer shall have obtained all applicable permits unconditionally including environmental clearance or if subject to conditions then all such conditions required to be fulfilled by the date specified therein and such Applicable Permits are in full force and effect; the Authority: i. the Authority shall have handed over to the Developer on as-is-where-is basis peaceful physical possession of the Project Site free from encumbrance and encroachment d. Project Development Plan a) The Developer shall, within 3 (three) months from the Appointed Date, prepare and submit to the Authority, a detailed plan for development of Project Facilities for implementation of the project in conformity with the set Standards and Specifications and Applicable Laws. b) The PDP shall set out in detail the following for carrying out the Project Development Activities: i. Detailed list of Applicable Permits to be obtained by the Developer, the government agency concerned for sanction and the stages in the Project when such Applicable Permits would need to be sought; 48 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE ii. List of Project facilities along with details of the capacity, location, dimensions of the same. The PDP prepared by the developer should necessarily provide for development in a phased manner on the available land parcels in such a manner that independent and well defined access of roads and other infrastructures are available to all these parcels. iii. Area statements for all Project Facilities, including FSI permissible, FSI proposed to be consumed. iv. Construction time schedules for completion of the project which shall be in accordance with the Project Completion Schedule; v. Standards & specifications of proposed buildings, project components, building materials, procedures, type, and other details of the construction activities; vi. Operation and maintenance requirements of Project Facilities in conformity with the applicable acts, rules, policies and guidelines issued by the competent authority and amended from time to time vii. Safety requirements, procedures for emergency evacuation and other usages related to the construction of Project Facilities; viii. Details of the reports to be submitted and procedure for reviews e. Damages In case the developer fails to complete any of the milestones in the timeframe specified in the approved Project Development Plan (unless in case of force majeure), it shall pay damages calculated at the rate of 0.1% of the amount of Performance Security for delay of each day until such milestone is achieved; provided further that in the event Commencement of Operations Date (COD) is achieved on or before the Scheduled Project Completion Date (SPCD), the Damages paid under this Clause shall be refunded by the Authority to the developer, but without any interest thereon. f. Agreement period The agreement period would be 30 years, including the construction period of 3 years. g. Development Guidelines The Developer would need to construct the Project Facilities in accordance with the norms specified by the Authority with respect to Design and Construction Standards 49 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE and maintain the facility in accordance with Operation & Maintenance Requirements. Along with the bid submissions, the developers would be required to submit a Project Development Plan as per the guidelines provided in the Technical Proposal. h. Payment Terms With respect to Annual payments, two scenarios can be considered under the payment mechanism: Table 13: Scenarios for Annual Payment Scenario Scenario 1 Scenario 2 Description Upfront Premium payable on signing of the Agreement and annual payments (with annual escalation of 5%) throughout the agreement period Annual payments payable from the Scheduled Project Completion Date (SPCD) and thereafter on every anniversary of the SPCD (with annual escalation of 5%) throughout the agreement period i. Penalty Any delay in the annual payments to be made by the developer to the Authority would entail a penalty of interest on the amount due at the rate of 4% above the Bank rate compounded annually, from the due date till the date of actual payment. Further, if such a delay extends beyond 60 days from the due date, the same shall form an event of default by the developer. the Authority would through an additional auditor reconcile the details of the revenues as per the annual reports submitted by the developer. In the event of a discrepancy between the windfall payments declared by the developer and the windfall payment calculated as per the annual reports, the developer would need to make the differential payments to the Authority. j. Events of Default i. Developer’s Event of Default Failure to commence commercial operations within 90 days of Scheduled Project Completion Date (SPCD) Failure to make any payments (annual payments as well as windfall payments) due to the Authority within 60 days of the due date of the payment Failure to develop Project Facilities in accordance with the approved PDP 50 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Non-adherence to O & M requirements Project Facilities have been shut down for a period of 3 months continuously or an aggregate period of 4 months in a calendar year Failure to adhere to the shareholding requirement In case of encashment of Performance Security, failure to replenish or provide fresh Performance within a period of 30 days Abandonment of the Project ii. the Authority’s Event of Default Breach of obligations envisaged under PDA Unlawfully repudiated the agreement Unreasonably withholding any approval / permission Any representation / warranty is false or misleading k. Termination Payments The Termination payments for Force Majeure Events and Event of Default are set out in the table below: Table 14: Termination payments for Force Majeure Events and Event of Default Events Sl No. Payment Obligations 51 1 Non-Political Force Majeure Event No Termination Payment shall be made by the Authority to the Developer. the Authority shall release the Performance Security, if subsisting. 2 Indirect Political Force Majeure Event No Termination Payment shall be made by the Authority to the Developer. the Authority shall release the Performance Security, if subsisting. 3 Political Force Majeure Event the Authority shall release the Performance Security, if subsisting. the Authority shall make Termination Payment equal to 100% of the Book Value less insurance proceeds, if any. 4 Developer Default Event of The Developer shall not be entitled to receive any Termination Payment from the Authority Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE The Performance Security, if subsisting, shall be invoked by the Authority. 5 the Authority Event of Default before COD the Authority shall release the Performance Security The Developer shall be entitled to receive from the Authority, Termination Payment equal to 100 % of the Book Value. 6 the Authority Event of Default after COD the Authority shall release the Performance Security, if subsisting The Developer shall be entitled to receive from the Authority, Termination Payment equal to 125% of the Book Value. l. Hand back of Project Site and Project Facilities Upon Expiry / Termination, the Developer shall comply with and conform to the following requirements: i. ii. iii. iv. Hand back vacant peaceful possession Project Site and Project Facilities to the Authority free of cost, in good operable condition and free from all Encumbrances, on as-is-where-is basis; Cure the Project Facilities from any defects and deficiencies; At least 18 months prior to the Expiry Date, submit to the Authority a bank guarantee for an amount equal to the amount of last Annual payment of the Agreement period (“Hand back Guarantee”), which shall be kept valid for a period of 24 months. Execute such deeds of conveyance, documents and other writings as the Authority may reasonably require for conveying, divesting and assigning all the rights, title and interest of the Developer in the Project. m. Force Majeure Event The Force Majeure Events are defined as given below: Table 15: Force Majeure Events Event Non-Political Indirect Political Direct Political Description Act of God, epidemic, chemical or radioactive contamination or ionizing radiation, fire or explosion, strikes or boycotts interrupting supplies and services to the Project An act of war, embargo, riot, civil commotion or politically motivated sabotage, industry-wide or State-wide strikes Change in Law, compulsory acquisition in national interest or expropriation of any Project assets 52 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 10. Estimation of Project Costs The chapter summarized the estimated project cost for developing the proposed Disney Land Theme Park. The base construction cost of the Project has been estimated at Rs. 127.0 Crores. The details of the same are presented below. Table 16: Base Construction Cost Sl. No Item Area/ Number Total Cost (Rs. Crores) Disney Land Theme Park 50,000 sq.ft Rides 50,000 sq.ft 1 35.0 2 25.0 Resorts 20,000 sq.ft 3 25.0 Water Park 25,000 sq.ft 4. 25.0 Food Court 5,000 sq.ft. 5. 6.5 Live Show/ Program Zone 15,000 sq.ft 6. 6.0 Land scaping & Support 7. Infrastructure Total Base Cost 53 15,000 sq.ft 4.5 127.0 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. 140 Crores. Considering contingency, preliminary & pre-operative expenses and interest during construction (IDC) the total Project Cost has been estimated at Rs. 144.9 Crores. Table 17: Project Cost Sl. No 1. Item Construction Cost Amount (Rs. Crores) 140 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 2. Contingency (2% of construction cost) 2.8 3. Preliminary expenses (1.5% of construction cost) 2.1 Thus, considering all components, the total project cost is estimated to be around Rs. 144.9 Crores. 54 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 11. Way Forward 10.1 Critical Success factors The success of the implementation of the project under PPP would mainly depend on the following factors: Figure 14: Critical Success Factors Development Activities • Development of a world class theme park. • Development of allied infrastrucutre like restaurants and food courts. • Roads and Connectivity improvement for the catchment region and Public Convenience (Civic amenities like drinking water, toilets, etc. parking facilities at tourist locations and signage). Coordination •Coordinated efforts required to involve all State level agencies such as: •Karnataka State Tourism Development Corporation (KSTDC) •Department of Tourism, Government of Karnataka (DoT) •District Administration (DC’s office) •Local Tourist operators Marketing Activities •Aggressive marketing and promotion of the theme park at national and international levels. 10.2 Way Forward The following actions need to be taken in order to proceed further on the project: a. b. c. Identification of large contiguous land in proximity the Bengaluru city. Critical Support Infrastructure Projects- Augmentation of basic civic amenities and improvement of road linkages, public transportation, parking facilities & signage in the region. Finalization of project structure. 55 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Annexure I - Case Studies A number of international amusement and theme parks were analyzed. Successful amusement & theme parks from across the world would form part of the basket of case studies which includes a mix of both Western and Asian. The parks listed below would be studied in detail to understand the relevant critical success factors (CSF) 1.1 Walt Disney World Resort, Florida, USA Location The Walt Disney World Resort is located 22 miles southwest of Orlando, Florida, on approximately 25,000 acres of owned land. The resort includes theme parks (the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom); hotels; vacation club properties; a retail, dining and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water parks; and other recreational facilities designed to attract visitors for an extended stay. Operator It is owned and operated by the Walt Disney Parks and Resorts segment of The Walt Disney Company. The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, the Disney Vacation Club, the Disney Cruise Line, and Adventures by Disney. The Company manages and has effective ownership interests of 51% and 47%, respectively, in Disneyland Paris and Hong Kong Disneyland Resort. The Company also licenses the operations of the Tokyo Disney Resort in Japan. The Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions as well as resort properties. 56 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Facilities Sl no Facilities Descriptino 1. Theme Parks 2. Water Parks Disney’s Blizzard Beach Disney’s Typhoon Lagoon 2. Hospitality Totally about 31 hotels under various categories with different themes such as Animal Kingdom Villas (Jambo House, Kidani Village) , Bay Lake Tower, Beach Club Villas, Lodge concepts, Contemporary hotel concepts etc. Magic Kingdom Epcot Disney’s Hollywood Studios Disney’s Animal Kingdom There are Villas, Resorts and Hotel typologies under various segments as Deluxe Villa, Deluxe, Moderate and Hotels 3 Other Facilities Deluxe Villas: 8 types Deluxe: 8 types Moderate: 15 types Value : 5 types Campground: 1 type Beach Destinations: 2 types Other Select Deluxe Hotels: 2 types Downtown Shopping Disney’s Golf Courses Disney’s Board Walk ESPN Wide World of Sports Complex Cirque Du Soleil Theater Spas Richard Petty Driving Experience 57 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Theme Parks and Resorts The Walt Disney World Resort includes theme parks (the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom); hotels; vacation club properties; a retail, dining and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water parks; and other recreational facilities designed to attract visitors for an extended stay. 1. Magic Kingdom — The Magic Kingdom, which opened in 1971, consists of seven themed lands: Main Street USA, Adventureland, Fantasyland, Frontierland, Liberty Square, Mickey’s Toontown Fair and Tomorrowland. Each land provides a unique guest experience featuring themed rides and attractions, live Disney character interaction, restaurants, refreshment areas and merchandise shops. Additionally, there are daily parades and a nighttime fireworks extravaganza, Wishes. 2. Epcot — Epcot, which opened in 1982, consists of two major themed areas: Future World and World Showcase. Future World dramatizes certain historical developments and addresses the challenges facing the world today through major pavilions devoted to showcasing science and technology improvements, communication, energy, transportation, using your imagination, nature and food production, the ocean environment and space. World Showcase presents a community of nations focusing on the culture, traditions and accomplishments of people around the world. Countries represented with pavilions include the United States, Canada, China, France, Germany, Italy, Japan, Mexico, Morocco, Norway and the United Kingdom. Both areas feature themed rides and attractions, restaurants and merchandise shops. Epcot also features Illuminations: Reflections of Earth, a nighttime entertainment spectacular. 3. Disney’s Hollywood Studios — Disney’s Hollywood Studios, which opened in 1989, consists of four themed areas: Hollywood Boulevard, Sunset Boulevard, Animation Courtyard, and Backlot. The four areas blend together as a large movie set and provide behind-the-scenes glimpses of Hollywood-style action based on movies and TV shows. The park provides various shows, attractions, themed food service and merchandise facilities. Disney’s Hollywood Studios also features Fantasmic!, a nighttime entertainment spectacular. 4. Disney’s Animal Kingdom — Disney’s Animal Kingdom, which opened in 1998, consists of a 145-foot Tree of Life centerpiece surrounded by six themed areas: 58 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Dinoland U.S.A., Africa, Rafiki’s Planet Watch, Asia, Discovery Island and Camp Minnie-Mickey. Each themed area contains adventure attractions, entertainment shows, restaurants and merchandise shops. The park features more than 300 species of mammals, birds, reptiles and amphibians and 3,000 varieties of trees and plants. 5. Downtown Disney: The Walt Disney World Resort also hosts a 120-acre retail, dining and entertainment complex known as Downtown Disney, which consists of the Marketplace, West Side and Pleasure Island. Downtown Disney is home to the 51,000-square-foot World of Disney retail store featuring Disney-branded merchandise, Cirque du Soleil, the House of Blues, and the Company’s Disney Quest facility. A number of the Downtown Disney facilities are operated by third parties that pay rent and license fees to the Company. In September 2008, the Company commenced a multi-year project to enhance Pleasure Island, which will feature new shopping and dining experiences to entertain guests of all ages. 6. Hotels and Other Resort Facilities — As of October 2, 2010, the Company owned and operated 17 resort hotels at the Walt Disney World Resort, with a total of approximately 22,000 rooms and 468,000 square feet of conference meeting space. In addition, Disney’s Fort Wilderness camping and recreational area offers approximately 800 campsites. 7. In the Downtown Disney Resort area, seven independently-operated hotels are situated on property leased from the Company. These hotels include approximately 3,700 rooms. Additionally, the Walt Disney World Swan and the Walt Disney World Dolphin hotels, which have approximately 2,300 total rooms, are independently operated on property leased from the Company near Epcot. 8. ESPN’s Wide World of Sports, which opened in 1997 under the name Disney’s Wide World of Sports, is a 220-acre sports complex providing professional caliber training and competition, festival and tournament events and interactive sports activities. The complex’s venues accommodate multiple sporting events, including baseball, tennis, basketball, softball, track and field, football and soccer. Its stadium, which has a seating capacity of approximately 9,500, is the spring training site for MLB’s Atlanta Braves. The Amateur Athletic Union hosts more than 40 national events per year at the facility. 9. Disney's Board Walk contains more than 90,000 square feet of shops, restaurants and nightclubs. It encompasses Crescent Lake and is "a village on 59 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE the water" near many Disney Resort hotels in Walt Disney World Resort. This quarter-mile entertainment, dining and shopping area is also conveniently close to 2 Disney Theme Parks. Magic Kingdom Park Enchanting entertainment, classic attractions, beloved Disney Characters and spectacular parades and fireworks in a place where fairytale dreams can come true. Epcot Attractions and entertainment dedicated to technological innovation and the culture and cuisine of 11 nations. 60 Disney's Typhoon Lagoon Disney's Blizzard Beach Attractions for the whole family— from fast waterslides to a children's area with pint-sized raft rides. Catch 6-foot waves in the Surf Pool and snorkel Shark Reef—with real sharks! Featuring one of the world's tallest and fastest waterslides, as well as slides and rides for the whole family. Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Disney's Animal Kingdom Park The world's largest animalthemed park full of attractions, adventure and fantastic animals. Disney's Hollywood Studios Shows, attractions and tours offering behind-the-scenes glimpses of Hollywood-style action. 61 Disney Board Walk It has 90,000 sq ft of retail, leisure and entertainment with a crescent shaped lake. It has many resorts part of DWR and is conveniently located near to Theme parks Other recreational amenities and activities available at the Walt Disney World Resort include four championship golf courses, miniature golf courses, full-service spas, tennis, sailing, water skiing, swimming, horseback riding and a number of other noncompetitive sports and leisure time activities. The resort also includes two water parks: Blizzard Beach and Typhoon Lagoon. Other Attractions Disney's Wedding Pavilion, Disney's Board Walk, Disney's Wide World of Sports Complex, Walt Disney World Speedway, Downtown Disney and Disney Resort Hotels Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Hospitality There are total of 40 hospitality projects within and outside of Disney World Resort. The resorts/.villas within DWR are planned under various categories with different themes such as Animal Kingdom Villas (Jambo House, Kidani Village), Bay Lake Tower, Beach Club Villas, Lodge concepts, Contemporary hotel concepts etc. There are Villas, Resorts and Hotel typologies under various segments as Deluxe Villa, Deluxe, Moderate and Hotels. Sl no. Resort/Hotel Type No of Hospitality Projects No. of Rooms 1 Deluxe Resorts 10 8,261 2 Moderate Resorts 4 7,083 3 Value Resorts 1 8,324 4 Cabins and Campgrounds 7 800 5 Disney Vacation Club Resorts/Disney Deluxe Villa Resorts 7 3,908 6 Future Disney Resorts 1 864 7 Future Residential Areas 1 450 8 On-site Non-Disney Hotels 9 5,781 40 35,471 62 Total Pricing & Revenue The pricing details of various components of the park are listed below: Particulars Theme Parks – One Day Pass Price USD 87.33 – Adult Remarks Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Particulars Price Annual Pass Remarks USD – 78.81 - Child Adult – 10 years and above USD 531.44 – Adult Children – 3-9 years USD 479.25 - Child Annual Pass - Premium USD 669.89 – Adult USD 603.86 - Child Water Park USD 48.99 – Adult USD 42.60 - Child Disney Quest USD 44.73 – Adult USD 38.84 - Child Parks and Resorts segment generates revenue from the sale of admissions to theme parks, the sale of room nights at hotels, merchandise, food and beverage sales, sales and rentals of vacation club properties and the sale of cruise vacation packages. Operating expenses include labor, costs of sales, repairs and maintenance and entertainment. Capital expenditures for the Parks and Resorts segment are principally for theme park and resort expansion, new rides and attractions, cruise ships, recurring capital and capital improvements. The Walt Disney Company (Parks and Resorts) – (USD million) Category 2006 2007 2008 2009 2010 Total revenue 9,925 10,626 11,504 10,667 10761 Admissions 3,221 3,454 3,653 -- -- Food, merchandize and games 3,085 3,342 3,623 -- -- Accommodation and other 3,619 3,830 4,228 -- -- Operating Income 1,534 1,710 1,897 1,418 1,318 63 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Operating Income (%) 15.5% 16.1% 16.5% (25%) (7%) Source: Company Annual Financial Report – Fiscal Year 2010 64 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 65 Map of Walt Disney World Resort at Florida Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Map of Magic Kingdom in Walt Disney World Resort at Florida 66 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 67 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 68 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Future Plans The $4.4 billion Shangai Disney Resort is planned on 963 acres of land. The project was approved recently by the Chinese central government, with share of 43% of the project to Disney and 57% to a trio of state-owned businesses, collectively known as the Shanghai Shendi Group. The project's costs and profits are to be divided along those proportions. The ground breaking ceremony was on 8th April 2011 and is expected to be completed in 5 years time period. Location at Shangai is within 3 hour drive from 300 million people. 69 Key Takeaways Development Time Period Disneyland at Florida started in 1971 and there has been constant addition of new concepts, themes, rides till late 1990’s. The timeperiod involved in development process is long with high capital investment and reinventing of ideas. This is one of the key success factors of Disneyland at Florida which to date commands highest footfall in the world among the Amusement/Theme parks. Wide gap in footfall (India vs the US) There is a huge gap in the footfall generated by top amusement parks in India in comparison with leading international parks worldwide. Most popular international parks see an average annual footfall that is over 10 times greater than that generated by the any of the larger amusement parks in India. Disney Cost Management Strategy Disney employs majority of workers on contractual basis to reduce labor costs which comprise huge share of outgoings. The strategy helps company to scale back its excess workforce during lean period. A Comparison of all the Disneyland Parks structures: Infrastructure Development Corporation (Karnataka) Limited Page 69 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Location Area (acres) Facilities Number of Visitors and Employees Investment Sources Remarks California 510 1. 2. 3. 4. Theme Parks- 2 (140 acres) Hotels – 3 (2224 rooms) Entertainment area- 20 acres Convention area- 2,00,000 sq.ft Employees- 20,000 Visitors- 21.95 million Wholly owned US$17 million in 1955 Florida 25,000 1. 2. 3. 4. 5. 6. 7. Theme Parks- 4 (985 acres) Water Parks-2 Golf courses- 5 Entertainment area- 120 acres Hotels- 23 (~25,000 rooms) Convention center- 6 L sq.ft Sports complex- 220 acres Employees- 62,000 Visitors-47.51 million Wholly owned NA Tokyo 494 1. Theme Parks- 2 2. Hotels -3 (1712 rooms) 3. Convention area- 1,61,000 sq.ft 4. Entertainment town- 29 acres Employees- 20,000 Visitors- 25.65 million Owned and Operated by Oriental Land Co., Ltd- pays license fees to Disneyland Total InvestmentUSD 1.4 billion in 1983 Paris 4,800 1. Theme Parks-2 (188 acres) 2. Hotels- 7 (5760 rooms) 3. Disney Village- largest entertainment complex outside Paris Employees- 12,300 Visitors- 12.74 million Public Company Walt Disney- 39% Price Al-Waheed-17% US$ 5 billion in 1994; Govt. provided US$770 million at very low interest rates and connectivity to project site 70 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Hongkong 457 Hotels- 2 (1000 rooms) Employees- NA Visitors- 4.6 million Walt Disney- 43% HK Govt. -57% US$1.5 billion (80% contribution from HK Govt.) 71 DEVELOPMENT OF DISNEY LAND THEME PART AT BENGALURU Project Structure Report 1.2 Genting Highlands, Malaysia Genting Highlands Resort with world-standard entertainment facilities encompassing indoor and outdoor theme parks and gaming facilities, has become the "City of Entertainment" and Malaysia's Premier Resort. The first hotel was started in 1971 and there has been continued development of the area to this present day to enhance Genting Highlands Resort as the premier holiday destination in the region while ensuring that the natural beauty of the rain forest is maintained. Location Genting Highlands, only fifty kilometers (less than an hour) from Kuala Lumpur, is the most developed hill resort in Malaysia. It is nestled on a mountain peak within the Titiwangsa Mountains on the border between the states of Pahang and Selangor of Malaysia. It is accessible by car from Kuala Lumpur in one hour, or also accessible by a cable car called Genting Skyway (3.38 km) which at its opening used to be the worlds fastest and South East Asia's longest gondola lift. At 2,000 meters above sea level, it offers a cool respite from Malaysia's capital city combined with all of the excitement, luxury, and entertainment of an international resort destination. Location of Genting Highlands at Kuala Lumpur Accessibility Genting Malaysia offers a wide variety of transportation to Resorts World Genting. Daily tour bus services for WorldCard members have expanded from eight locations when first introduced in 2009 to an existing 41 locations throughout Peninsular Malaysia. The “Go Infrastructure Development Corporation (Karnataka) Limited Page 72 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Genting” express bus fleet provides timely, convenient and economical journeys from five locations within the Klang Valley. The limousine fleet has grown to 56 vehicles over time, bolstered by a replacement plan policy of five years to ensure safety and comfort. While the resort is directly accessible by road, many visitors choose to enhance their experience by riding on the Genting Skyway and Awana Skyway. The cable car rides sold 2.8 million tickets in 2010 (2009: 3.1 million) Operator Resorts World Genting is operated by Genting Malaysia Berhad (formerly known as Resorts World Bhd), which also operates Awana chain of resorts & hotels. Genting Berhad is an investment holding and management company. The principal activities of the subsidiaries include leisure and hospitality, gaming and entertainment businesses, plantation, the generation and supply of electric power, property development and management, tours and travel related services, genomics research and development, investments and oil and gas exploration, development and production activities Facilities at Genting HIghlands Sl no 1. Facilities Genting Theme Park Signature Attractions at Theme Park Description Multi-million Ringgit theme park with over 40 rides. Has 3 Theme Parks : Genting Outdoor Theme Park, First World Indoor Theme Park and Water Park Flying Coaster Genting Sky Venture Haunted House Ripley's Believe It or Not! Museum Snow World Space Shot Only Land based Casino at Genting 2. Casino De Genting 73 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Sl no 3. Facilities Hotels Description First World Hotel is largest hotel in world with 6114 rooms. There are total of six hotels in the resort. Maxims Hotel First World Hotel Genting Hotel Highlands Hotel Resort Hotel Theme Park Hotel 4. Convention Facilities 20,000 square feet (1,900 m2) Convention Halls, 87,400 square feet (8,120 m2) of Meeting Rooms, Business Centre, Three discussion rooms and three boardrooms 5. Retail – First World Plaza The First World Plaza has over 200 shopping outlets 6. Live Performance Venues 7. Others Arena of Stars Genting International Showroom Genting International Convention Centre Pavilion Hall First World Plaza Nearly 8 Dining Options Nightlife Safari Theme Park The Genting Theme Park is a sprawling, multi-million Ringgit theme park with over 40 rides that are either indoor or outdoor. The resort has three theme parks which are Genting Outdoor Theme Park, First World Indoor Theme Park and Water Park. There also is a Casino which is one of the main attractions and crowd puller. The First World Plaza has over 70 retail outlets selling things such as trendy merchandise and fashion accessories. Outdoor Theme Park The cool mountain air makes it an exhilarating experience to enjoy the many rides at the Outdoor Theme Park. The major attractions include Thrill Rides, Spinner, Cyclone, 74 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Bumper Boats, Corkscrew, Family Rides, Tea Cup, Flying Jumbo, Boating, and Dinosaur Land. There are over 20 signature attractions which include: Flying Coaster Genting Sky Venture Haunted House Ripley's Believe It or Not Museum Snow World Space Shot The Sky Venture simulates actual skydiving without the risks. . Cork Screw Spinner Snapshots of some of the rides are shown below 75 Indoor Theme Park Both in the indoor and outdoor parks, rides have been grouped into three categories – Family, Thrill and Children’s rides. The casino can be accessed from the indoor park zone.The map below shows broadly the layout of the indoor amusement park area with the various rides offered Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Water Park The heated water play area is the only water park at 6,000 feet above sea level. The heated pool is sheltered and the attractions include Action River, Big Bucket, Rainforest Splash Pool Tornado Slide and many more! 76 Layout Map at Indoor Theme Park in Genting Highlands Hospitality There are six hotels at Resorts World Genting. These are Maxims Genting, Highlands Hotel, Theme Park Hotel, Resort Hotel, Awana Genting Highlands Golf & Country Resort and First World Hotel. First World Hotel is the world’s largest hotel with 6,118 rooms as Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE acknowledged by the Guinness World Records and Ripley's Believe It or Not. The map below shows the layout of the theme park and hotels across Genting Highlands. Layout of theme park and hotels at Genting Highlands Awana Genting Highlands Golf & Country Resort also boasts an award-winning 18hole golf course as well as other sporting and entertainment facilities. Maxims Suite is catering to the VIP clientele visiting Genting with ADR between RM 1,200 – 4,750. Majority of visitors stay at the First World Hotel, which is the largest hotel in the world with 6,118 rooms. Thus Genting Highlands has rooms to cater all types of visitors and for all budgets. The check-in time is 3:00 pm and checkout at 12:00 pm. This is to encourage over night stays in the hotels. Also, the calendar year has been divided into four seasons depending on demand, public holidays and school holidays to price the rooms. The key performance indicators are: Six hotels (3-5 stars) at RWG with over 10,000 rooms Average hotel occupancy of 93% in 2010 (2009: 92%) Average Room Rate of RM81 (USD 27) WorldCard member’s takes up more than 61% (2009: 53%) of room sold 77 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Awana horse ranch offers equestrian activities, rides for children and lessons for beginners. For golfers, the Awana Golf and Country Resort offers a challenging 18hole, par-71 golf course. Meetings, Incentives, Conventions & Exhibitions Genting International Convention Centre Genting International Convention Center or GICC is a favourite international destination for meetings, incentives, conferences and exhibitions (MICE). IT constitutes of Grand Ballroom and Convention Hall and host of other live performance stages Grand Ballroom: GICC has one of the largest column-free Grand Ballroom in Malaysia with a total built-up area of 181,467 sq ft and is equipped with state-of-the-art audio video and information technology equipment. It can accommodate up to 2,000 delegates in banquetstyle and 3,500 delegates in theatre-style seating, and the entire area can be split up conveniently into two to four sections according to clients' needs. Convention Hall: The 20,000 square feet Convention Halls is multi-purpose and can be used for any functions. It can cater up to 1,200 delegates in theatre-style seating. The hall can be split up into 3 smaller halls according to clients’ needs. The MICE facilities also have other support facilities like Business center, Meeting rooms, Board rooms etc. Live Performance Areas These large amphitheaters and stages host large concerts, shows which are again crowd pullers into Genting Highlands. These further add to the footfalls in the Theme Park. Arena of Stars: a hall where wide range of concerts are staged live by international superstars frequently. It is fully roofed amphitheatre is equipped with state-of-the-art sound and lighting system The Pavilion Hall located at First World Plaza, is suitable for concerts as well as sporting events. It has a stadium seating capacity of more than 2000 persons and the whole Pavilion can be set up to accommodate more than 6,000 persons. 78 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Arena of Stars The Pavilion Hall Genting International Showroom is a state-ofthe-art showroom supported by the latest sound and lighting system as well as theatrical stage equipment including an impressive revolving stage and flying towers. It has a seating capacity of up to 1,700 persons. 79 Pricing Particulars Typical Package - 2 Day 1Night Indoor – One Day Pass* Outdoor – One Day Pass* Price RM 110 per person RM 30 per person Remarks Daily departure roundtrip to Genting via Air-Conditioned VIP Coach with a one night accommodation at First World Hotel on twin sharing basis Signature Attraction like Sky Venture excluded RM 30 per person Signature Attraction like Flying Coaster excluded Snow World RM 20 per person RM 70 - Family Snow Park (Duration – ½ Hour) Flying Coaster RM 12 per person Roller Coaster Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Particulars Price Remarks Genting Sky Venture RM 46 - Adult RM 21 - Child RM 138 - Family Simulated Skydiving Genting Skyway RM 5 - Single Ride RM 10 - 2 way Cable Car Ride up to Genting Highland The day pass and unlimited ride pass is not entitled to Sky Venture, Snow World, First World Cineplex, Genting X-pedition Wall, Ripley's Believe It or Not, Haunted Adventure & Flying Coaster, Video Simulation Machine and Cyber Café. Tourist visits/performance A snapshot of its performance is presented below: Over 19.9 million visitors in 2010 Over 13,000 employees Over 3 million Genting loyalty World Card members Over 10,000 rooms at the Resorts World Genting EBITDA of US$647 million in 2010 Day trippers - in excess of 70% of total visitors to RWG. Malaysians took over 60% of rooms sold Competitive Strategies: The casino at Genting is a significant driver which attracts visitors. A strong 65% revenue mix caters to the mass market business. Locals form bulk of the 19.9 million visitors. Also, the variety of price points is offered to with competitive room rates, F&B and Theme Park prices. For the VIP market segment, 35% of revenue mix is derived from the premium players business. Competitive marketing and high level of service delivery have ensured repeat business. In addition to counter the threat of other destinations joint marketing initiatives with Resorts World Sentosa have been rolled out. Offerings at Genting have been expanded similar to Macau. 80 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Future Plans The Group has recently opened Resorts World New York. They wish to further expand operations to UK, USA, Egypt and Vietnam. As far as RWG is concerned, there is a continuous plan to upgrade facilities and infrastructure, with an estimated capex of RM500 million in 2011. 81 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 1.3 Sentosa, Singapore Sentosa was once a fishing village known as Pulau Blakang Mati. It later became a British military fortress until 1967 and was handed back to the newly independent Singapore Government. In 1968, the Government decided to develop the island into a holiday resort for local visitors and tourists. The public was invited to suggest names for the island and "Sentosa" - meaning peace & tranquility in Malay - was eventually chosen for the island resort. Sentosa Development Corporation (SDC) was constituted on 1st September, 1972 as a statutory board under the purview of the Ministry of Trade and Industry. Presently Sentosa is Singapore's premier island resort getaway with multi-faceted appeal, teeming with events all year round. It is a unique blend of leisure and recreational facilities including family attractions, sea sports, golf as well as hotel accommodation and retreats. It covers an area of about 5000 acres with 3.2-kilometre stretch of white sand beach. It also offers beachfront accommodation and over 670 hotel rooms with full facilities. Resorts World Sentosa integrated resort or Sentosa IR is Singapore's first 49-hectare integrated resort, officially commenced operation in early 2010. As the name states, this new development is located on Singapore's prided island-attraction, Sentosa. Within this area there are six hotels, a casino, Universal Studios Singapore, The Marine Life Park, the Maritime Experiential Museum and the Equarius Water Park. Location Sentosa has an area of 5 kilometre square and is located 0.5 km from the main land Singapore. 70% of the island is covered by secondary rainforest. Sentosa is a habitat of monitor lizards, monkeys, peacocks, parrots and other native flora. It has a beach stretching 3.2 km. Accessibility Sentosa is connected to Singapore by road, monorail and cable car. It is just 20 minutes from Singapore city accessible through cable car. It also recently opened the Sentosa Boardwalk this year - a new pedestrian facility. The opening of the Sentosa Boardwalk was timely in easing the load onboard the monorail system. The monorail service operated at maximum capacity during peak periods, carrying 4,000 passengers per hour per direction, with five trains running at an average of 3-minute 82 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE intervals. The shuttle bus service to Harbour Front Bus Interchange operated at a frequency of 3 to 5 minutes. Over half of the visitors arrive on Sentosa by public transport. About ten per cent of the guests took the new Sentosa Boardwalk to experience the new pedestrian facility. Eighteen per cent rode on the Sentosa Express monorail, while the remaining twenty-two per cent hopped on to the other public transportation services into Sentosa, including shuttle buses, tour coaches and the Jewel Cable Car ride. Guest ambassadors and traffic marshals are deployed at busier locations on and off the island, including Harbour Front Bus Interchange, Siloso Point and Imbiah Lookout, and additional queue holding areas were provided for at the Beach Station Bus Interchange, to manage any surge in operations for outbound guests. Operator Resorts World Sentosa has been conceptualized by the same group behind Malaysia’s reputed leisure and gaming destination Genting Highlands. The Sentosa offering has been enhanced and strengthened when Resorts World at Sentosa opened in 2010. Spanning 49 hectares, this S$6.59-billion (~Rs. 30,973 Crores) mega resort features Southeast Asia’s first and only Universal Studios theme park, the world’s largest Oceanarium, the region’s first integrated destination spa as well as some 1,800 rooms spread across six hotels with varying themes. 83 Facilities at Sentosa Sl no Facilities Description 1. Sentosa, Singapore It is a unique blend of leisure and recreational facilities including family attractions, sea sports, golf as well as hotel accommodation and retreats. It covers an area of about 5000 acres with 3.2-kilometre stretch of white sand beach. It also offers beachfront accommodation and over 670 hotel rooms with full facilities. Signature Attractions Universal Studios Singapore IFly Wave House Luge & Sky ride Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Sl no Facilities Description 2. Casino 3. Hotels Underwater World Resorts World Sentosa Casino - 15,000 square metre casino that runs all day long Maxims Tower Crockfords Tower Hotel Michael, Festive Hotel Hard Rock Hotel Equarius Hotel Spa Villas 4. Convention Facilities The Grand Ballroom and its spectacular grandeur with its theatre-style seating which holds a capacity of 7,300 people. Beneath the Festive Hotel is a 1,500 sqm plenary hall, large enough to seat 1,600 people. 5. Retail – Vivo Mall Vivo Mall is Singapore’s Largest Mall located at the MRT station leading towards Sentosa Island. Further there are numerous retail shops and kiosks around the island. 6. Live Performance Venues 7. Others Songs of the Sea Voyage de la Vie Crane Dance The park includes about 30 restaurants and food carts together with 20 unique retail stores and carts located around the park. Theme Park Sentosa is Singapore’s premier island resort getaway and Asia’s leading leisure destination. This resort island is home to a plethora of themed attractions, award-winning spa retreats, lush rainforests, white sandy beaches, resort accommodation, championship golf courses, a 84 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE deep-water yachting marina and luxury residences. Some of the keys highlights are defined in the map below: Map of Sentosa Island 85 There are various theme developments under each of the four concepts as defined on map. Some of these are as follows: Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE IMBIAH LOOKOUT Tiger Sky Tower: Singapore's tallest observatory tower offers panoramic views at 131 metres above sea level across Singapore, Sentosa, Southern Islands, right up to neighboring Malaysia and the Indonesian islands. The Tiger Sky Tower has a capacity of 72 in its enclosed, air-conditioned cabin. Day or night, views from the tower promise to be both scenic and breathtaking. Located adjacent to the Sentosa cable car station, the Tiger Sky Tower is a key point of interest and forms a distinctive landmark as it soars above the surrounding natural greenery. The Merlion is a 37m high structure featuring a sitting lion. It was opened in 1996. It recalled the story of Sang Nila Utama who saw a lion in Temasek (sea town – Singapore old name). Visitors may take a lift up to 12th floor to view the city state. Singapore Cable Car: The 1.6 km ride to and from Sentosa offers expansive views of lush greenery and stunning coastal sights. Sentosa 4D Magix: The state-of-the-art 4D movie theatre offers a whole new generation of movie magic. Through the synchronization of a full spectrum of visual effects, surround sound, individually-controlled motion seats and special environmental effects such as water spray, etc. Sentosa Cineblast was opened in 2007. It brings visitors on an extreme 3D long ride using the latest technology equipped with unique sound and light technology that is found in the Universal Studios in the United States. Butterfly Park & Insect Kingdom: The Butterfly Park allows one to stroll through the lush surrounds and cool outdoor conservatory. It has 15,000 butterflies of more than 50 species. The Insect Kingdom houses some 3,000 species from all over the world. SILOSO POINT Dolphin Lagoon: In the Dolphin Lagoon one gets to observe the highly intelligent IndoPacific Humpback Dolphins through a series of interactive, feeding and training sessions specially designed to demonstrate their natural ability of tail-walking synchronization. Lucky visitors might even score a peck on the cheek, or a chance to wade next to them, fully supervised by the trainers, of course. Underwater World: One of the attractions available in Sentosa is the Underwater World & Dolphin Lagoon which is an oceanarium located at the western part of Sentosa. The Underwater World Oceanarium on Sentosa is home to more than 2,500 fishes from 250 86 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE different species. The Touch Pool for some 'hands on' experience with starfish, stingrays and baby sharks. A moving travellator ferries visitors to the ocean floor through an 83-metrelong acrylic tunnel. The person is surrounded by sharks, stingrays, eels and schools of fish glide past - engrossed in their own world. Interactive programmes such as 'Dive with the Sharks' or 'Dive with the Dugong' are available upon advance booking. BEACHES Skyline Luge Sentosa: Part go-cart, part-toboggan, pure excitement - the luge is a fun-filled gravity ride that's safe for all ages. With a unique steering and braking system that allows the ride as leisurely or as exciting as one wants. Songs of the Sea: Songs of the Seas show was started in 2007 replacing the 25 years old Musical Fountain show. It is the world’s only permanent show set in the sea. Songs of the Sea brings a mesmerizing show with a live cast and dramatic effects pyrotechnics, water jets, brilliant lasers, special computer imaging, captivating music and stunning flame bursts. It is a one-of-a-kind entertainment that's not to be missed. Songs of the Sea is an outdoor all-weather event. iFly: Visitors will have a chance to experience the feeling of skydiving. They will have to wear jumpsuits and helmets before they can enter this $16 million skydiving simulator. It uses four fans to shoot air from the ground, keeping fliers hovering in the air. iFly Singapore, the first of its kind in Singapore and the world’s largest skydiving simulator facility. The facility will feature a five-storey high vertical wind tunnel that accommodates up to 20 professional flyers at one time. Wave House Sentosa: The main draw of the 70,000 square feet complex is the three-metre high barrelling wave simulator, the first of its kind in Singapore. Guests can enjoy the ultimate California beach experience as they eat, dance and surf at this new three-in-one party hotspot on Siloso Beach. 87 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE RESORTS WORLD SENTOSA Resorts World Sentosa integrated resort or Sentosa IR is Singapore's first 49-hectare integrated resort, officially commenced operation in early 2010. Within this area there are six hotels, a casino, Universal Studios Singapore, The Marine Life Park, the Maritime Experiential Museum and the Equarius Water Park. Universal Studios has commenced operation and the details are provided below. The other three attractions are underway and to be operated in soon. UNIVERSAL STUDIOS, SINGAPORE Occupying an area of 20 hectares, Universal Studios Singapore has a total of 24 attractions and 18 of them have been specially designed for the new park. A theme park for the whole family, Singapore's Universal Studios has attractions for everyone from the young, to the young at heart. Adults can seek thrills on the heart-pounding roller coasters and thrill rides while kids can enjoy the magic of gentle rides like the Dino-Soarin’ attraction. Even senior citizens can enjoy the park, with live shows like “Monstrocity” and family friendly rides such as Madagascar: The Crate Adventure. Seven Uniquely Themed Zones Guests at Universal Studios Singapore will get to experience seven distinct zones in the park: Hollywood, New York, Sci-Fi City, Ancient Egypt, Lost World, Far Far Away, and Madagascar. The park boasts 24 rides and attractions in total, 18 of which are unique to Universal Studios Singapore. Visitors will also enjoy a plethora of dining options and gift shops to satisfy even the most discerning tastes. Map of Universal Studios at RW Sentosa Hollywood 88 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE The entrance to the new park makes up the first zone, Hollywood. The Hollywood zone replicates the gorgeous art nouveau buildings of 1940’s Hollywood and all of the glamour that went with the time period. The streets of Hollywood are lined with unique shops, such as Silver Screen Collectibles and tasty restaurants such as Mel’s Diner. Guests can watch a live Boradway musical performance "Monstrocity" at Pantages Theater. It's the only themed zone that opens at night every Friday to Sunday. New York From the streets of Hollywood visitors suddenly stroll onto the streets of New York, the next zone in Universal Studios Singapore. The streetscape of 1940’s New York, complete with brownstones and faux gas lamps provides a front for attractions that take guests behind the scenes of movies and television. Sci-Fi City After leaving New York visitors emerge into Sci-Fi City, the perfect zone for fans of science fiction and fans of the hit show Battlestar Galactica. In Sci-Fi City guests can choose to side with Humans or Cylons and ride one of two unique roller coasters that twine together creating several “near misses” that are not only terrifying but also very symbolic of the battle between Humans and Cylons in the show. Ancient Egypt From the future to the past, guests next step into Ancient Egypt, the fourth zone in Universal Studios Singapore. In Ancient Egypt guests can enter the popular movie The Mummy or seek buried treasures. The Lost World Trekking out of Ancient Egypt leads visitors even further back in time, to The Lost World. In the Lost World guests can experience hit action movies Jurassic Park and Waterworld. Whether riding down a river plagued with voracious T-Rex’s or watching talented stunt men in the explosive Waterworld live action show, guests are in for a lot of excitement in this area. Far Far Away Based on the whimsical and hilarious movie Shrek, Far Far Away features exciting 4-D Shrek films and live concerts with everyone’s favorite equine, Donkey. If guests need refreshing they can make a stop at the Fairy Godmother’s potion Shop to mix up a quick magical potion at the juice bar before heading to the final zone. 89 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Madagascar Rounding out the experience at Universal Studios Singapore is the Madagascar zone. Based on the charming animated movie chronicling the antics of shipwrecked animals, the Madagascar zone offers a river ride for the whole family. Hospitality In total there are 11 hotels and 7 Spas at the Sentosa Island. This comprises of 6 hotels within RW Sentosa IR and 5 on the Sentosa island. The hotels on Sentosa Island are Costa Sands Resort, Capella Singapore, AMara Sanctuary Resort, Movenpick Heritage Hotel, Shangri-La’s Rasa Sentosa Resort. Six Hotels each with a Unique Theme Resorts World Sentosa integrated resort has six different hotels with completely different themes. These in total offer over 1800 rooms. The hotels at RW Sentosa IR are Maxims Tower, Crockfords Tower, Hotel Michael, Festive Hotel, Hard Rock Hotel or Equarius Hotel, every single one of them is distinctively created to sweep you off your feet. Meetings, Incentives, Conventions & Exhibitions Resorts World Sentosa integrated resort isn’t all about fun and play. The Grand Ballroom with its spectacular grandeur with its theatre-style seating which holds a capacity of 7,300 people. Beneath the Festive Hotel is a 1,500 sqm plenary hall, large enough to seat 1,600 people. With the latest audio-visual equipment, the place is suited to host major events, product launches and even its resident musical extravaganza, Voyage de la Vie. Sentosa Flowers 2011 Sentosa Flowers 2011 ended on a high note with a record visitorship of 690,000. This is almost double the number of visitors at the last Sentosa Flowers event in 2009. The 11-day annual floral extravaganza featured more than 200 types of flowers, plants and trees from around the world. For the first time, the festival stretched from the recently-opened Sentosa Boardwalk, into Resorts World Sentosa and Sentosa’s Imbiah Lookout as well as Beach Plaza, and spanned seven hectares of event grounds featuring colourful blooms and unique photo points. 90 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE In 2010, Sentosa Flowers was replaced with Lights of Spring, a night-based Lunar New Year event. Sentosa saw a total island visitorship of 845,000 visitors over the duration of Sentosa Flowers. Of this, 690,000 visited the 11-day floral event. Tourist visits/performance Sentosa has been a seven-fold jump over the past decade, which saw visitors grow from 3.4 million in 2001 to 6.2 million in 2009. It is seen that 52% of the visitors are tourists and 48% are localities. Sentosa Guest Arrivals FY 2009/2010 Tourist 4,073,000 52% Domestic 3,760,000 48% 7,833,000 100% Source: Company Annual Report Pricing The admission fee to enter Sentosa Island has been listed below. Further, Sentosa has been divided into distinct zones and the monorail has three stations for access into various areas on the island. Attraction Sentosa Cable Car Jewel Cable Car Ride Price Description Adult - S$24/ 26 Child - S$14/ 15 One/ Two Ride by Cable Car & Island Admission S$3 Island Admission & Mono-Rail Sentosa Express Some of the prices of the distinct attractions on Sentosa have been listed below: Attraction Price Butterfly Park & Insect Kingdom Adult - S$16; Child - S$10 Images of Adult - S$10; Child - S$7 Description Museum showcasing history & 91 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Singapore culture of Singapore Sentosa 4D Magix Adult - S$18; Child - S$11 Sentosa CineBlast Adult - S$18; Child - S$11 State of the art cinema simulator rides Sentosa Luge & Skyride Luge & Skyride Combo S$12 3 rides - S$20 Ride - 1.2 km World's first lit tracks for night luge rides Tiger Sky Tower Adult - S$15; Child - S$10 Air-conditioned ride. Height 131m above sea level Adult - S$8; Child - S$5 37m high Merlion The Merlion Plaza Voyage De Lavie Theatre S$68-128 Underwater World Adult - S$25.90; Child S$17.60 83m long tunnel oceanarium Meet the Dolphins Show Wave House Sentosa Catch a wave - S$15-30/ hr Flowrider - S$35/hr Asia's first simulated wave surfing & surf shop Crane Dance Free Dance of 2 ten storey tall cranes - a mulltimedia spectacle of lights, sound and watre Songs of the Sea S$10 Night Song & Dance Musical Show Duration - 20 mins S$89 – Adult; S$79 – Child Simulated Skydiving S$18-25 Entertainment Imaging iFly Digital Photographs of Rides The pricing of tickets into Universal Studio has been listed below: 92 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Universal Studios Singapore Ticket Pricing Weekday/ Weekend Adult (13-64 years) Child (4-12 years) Senior (65 years & Above) One Day Weekday Pass S$66 S$48 S$32 One Day Weekend Pass S$72 S$52 S$36 Two-Day Pass S$118 S$88 S$58 Adult (13-64 years) Child (4-12 years) Senior (65 years & Above) Fun Pass S$318 S$238 S$188 Superstar Pass S$1098 S$828 S$736 Annual Pass Note – 1. Adult refers to 13 years old and above; child 4 to 12 years old and senior 65 years old and above. 2. Unlimited Access to all Shows & Rides including Battlestar Galatica World's tallest dueling roller coasters Competitive Strategies: Think Big: Built at a cost of S$6.5 billion, Resorts World Sentosa, Singapore’s first Integrated Resort (IR), houses the first Universal Studios theme park in Southeast Asia, and features four luxurious hotels and a casino. Riding on the momentum of this first-phase opening in February 2010 is the second phase development, including two other hotels, a destination spa, the world’s largest Marine Life Park, and the Maritime Xperiential Museum. Among the highlights at the Museum will be the replica of the “Jewel of Muscat”, a 9th Century Arab dhow given to Singapore by the Sultanate of Oman. 93 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Further, Universal Studios Singapore is the fourth Universal Studios theme park in the world and Southeast Asia’s first. The 20-hectare park brings to life movie-themed attractions within seven different themed areas ranging from ancient Egypt to exotic Madagascar. Boosting the theme park’s offerings are eateries and retail outlets selling souvenirs, apparel and film merchandise. World’s Best Operators: Sentosa Development Corporation has roped in Resorts World and Universal Studios – some of the world’s most successful park operators. Brand recall for visitors, customized theme designs and professional management is likely to ensure longterm success of Sentosa. Sentosa has been branded as “Asia Favorite Playground”. Location and Accessibility: The S$6 billion Resorts World, situated on the island of Sentosa, is near to some of Singapore's attractions and landmarks - Mount Faber, which makes for the perfect place to enjoy the sights and sounds of the harbour and the Straits of Singapore, and where you may ride on a Cable Car that brings you over to the island; VivoCity, Singapore's largest shopping mall, conveniently connected to the Harbour Front MRT Station, and a one-stop solution to all your shopping needs; St James Power Station, one of Singapore's most happening nightspots for frequent clubbers; and Singapore Cruise Centre, the place you should be if you want to sail the seas and explore the region. Scale of Operations: The sheer size of the park and offering make repeat visits necessary. The number of offerings has multiple options for all age groups and palates. The option of annual passes encourages repeat visits and the island has the option and area for future expansion and new rides. Future Plans Sentosa’s many priorities for the coming financial year include helping Resorts World Sentosa to meet its development objectives, enhancing the Merlion Plaza and Merlion Walk between the integrated resort and its beaches, and adding more child-focused attractions to its family-themed Palawan Beach. These plans also include developing the travel network leading into the island, with a special focus on the new boardwalk. Pedestrians using the boardwalk can look forward to canopy-covered travellators offering protection against the weather, and a range of food and beverage offerings. 94 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 1.4 Six Flags Six Flags Fiesta Texas is a seasonally operated theme park located on approximately 216 acres of land in San Antonio, Texas. Six Flags Fiesta Texas is the major entertainment component of USAA's La Cantera, a 1,600 acre (6.5 km²) master-planned development in northwest San Antonio. "La Cantera" means "rock quarry" in Spanish and refers to the former use of the property on which the development sits. Six Flags Fiesta Texas has a combination of theme and water parks. Permanent resident population of approximately 2.1 million people live within 50 miles of the park and about 3.7 million live within 100 miles. Six Flags parks generally operate from May to September (approximately 85% of park revenue comes from attendance during the second and third calendar quarters of the year). They are also open on weekends, before and after the operating season, generally in association with themed events. Six Flags puts emphasis on exciting rides, cleanliness, through maintenance and good theming and has novel characteristics such as ’pay-one-price’ access ticket, professional shows and relaxing picnic areas. Location Six Flags Fiesta Texas is located just 15 minutes from downtown San Antonio. It is located along the interstate I-10 West and Loop 1604. It is well situated with major road access and can be easily accessed by care from main towns. Accessibility Six Flags Fiesta Texas is located just 15 minutes from downtown San Antonio. It is easily accessible through the I-10 interstate near La Cantera Parkway. Bus Services: VIA Metropolitan Transit bus to Six Flags Fiesta Texas from downtown on Route 94 during park operations. Alternately visitors could board on Route 94 from Crossroads Mall on weekends. 95 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Operator Six Flags Inc is the one of the largest regional theme park operator in the world and owns or operates 19 theme parks throughout North America. The company's only business segment involves the operation of its regional theme parks which generates theme park admission revenue and in-park sales income. Six Flags holds exclusive long-term licenses for the use of Warner Brothers and DC Comics characters like Bugs Bunny, Daffy Duck, Batman, and Superman; in addition to planting walk-around characters in its parks and using licensed characters for advertising, Six Flags builds character-inspired rides that are an important marketing tool. The company’s parks have an annual attendance of around 24 million people. The company earned $912 million in revenue but incurred a net loss of $64 million in 2009. Six Flags operates as a seasonal business - over 84% of park attendance and revenues are generated between the second and third quarters of the calendar year - and primarily generate its income through ticket sales, in-park food and merchandise sales, and sponsorship revenue. Facilities at Six Flags Fiesta Texas Sl no Facilities 1. Six Flags Fiesta Texas 2. Signature Attractions at Fiesta Texas 3. Hotels Description Six Flags Fiesta Texas celebrates the history, culture and uniqueness of Texas through five themed areas. The Rattler Kiddee Koaster Road Runner Express Boomerang: Coast to Coaster Poltergeist Superman: Krypton Coaster Big Spin Goliath There are about eight hotels at proximity to the theme park. These hotels have grown around the park over the years to cater to the latent demand from visitors to the San Antonio area. Westin La Cantera Inn & Suites Town Place Suites, Mariott Hyatt Place Comfort Inn Fiesta Howard Johnson Express Inn Courtyard San Antonio, Mariott Staybridge Suites Hampton Inn San Antonio 96 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Theme Park Concept & Planning of Fiesta Texas When the owner group in San Antonio, Texas began to think in terms of developing a major theme park, they faced significant competition in the area. There were parks in Dallas, Houston, and the recent Sea World Park in San Antonio itself. Based on the competition, the opportunity in San Antonio and the direction of the theme park industry in the USA, the concept for Fiesta Texas was defined as a destination market and a musical show park. The park contains all types of activities, many of which are not dependent upon good weather, including indoor shows, games and arcades. While some rides and shows may close due to rain or wind, these rides and shows are opened as soon as the weather clears. Refunds and rain checks are not offered. There are broadly five theme areas within Fiesta Texas: Sl no Facilities 1. Crackaxle Canyon Description This western town is home to country music, mouthwatering barbeque, and awesome shows. Crackaxle Canyon is also the home of the famous Rattler, a 180foot tall wood coaster that races at 65 miles per hour. In the evenings, head to Lone Star Lil's Amphitheatre where an incredible laser and fireworks extravaganza can be experienced. 2. Los Festivales Guests at Los Festivales will be provided with the perfect party atmosphere. Take a ride on Goliath, a coaster that climbs 10 stories before literally flying up and over a heart-pounding vertical loop. After you've finished screaming, head to Teatro Fiesta for an elaborate Latin show. 3. Spassburg This German village includes all sorts of attractions, including the Schi-Kugel Family Arcade. You can also take a ride on Superman: Krypton Coaster, Der Twister, or Die Fledermaus. After experiencing your favorite rides and games, make your way back to Sangerfest Halle to enjoy a delicious meal and an award-winning show. 4. Fiesta Bay Boardwalk The Fiesta Bay Boardwalk will sweep you away with the sounds of summer. Get your adrenaline pumping on the Big Spin - a thrilling coaster that defies gravity, then enjoy a panoramic view of the park from the top of the 97 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Sl no Facilities Description Crow's Nest Ferris Wheel 5. Rockville Turn on the jukebox and twist and shout on the unforgettable 50's! Then take a ride on Poltergeist, which propels you from zero to 60 mph in just under 3.5 seconds. Then, cool your jets with a ride on the Amerigoround or relive your high school days with the Rockville High School gang in our energetic and zany musical production. ENTERTAINMENT In addition to the thrilling rides there are various family entertainment programs that are present here. The kind of entertainment that is planned is described below: Show Description Bugs Bunny and Friends Texas State Square & Outside Rockville High School Grab a hug and a picture with some of your favorite Looney Tunes characters including Bugs Bunny, Daffy Duck, Sylvester, Tweety, Pepe Le Pew, Foghorn Leghorn Ritmos del Corazon Teatro Fiesta This energetic Latin show features talented singers and live musicians. Straight Country Sundance Theater Program to Join the performers and live band for a tribute to some favorite Bluegrass and Country Classics. Rockinâ the Country Sundance Theater A showcase of the many diverse styles of country and Southern Rock music (from present and past). Show runs late May through mid-August. Looney Toons Show The show has Bugs Bunny, Daffy Duck, Tweety and the Looney Toons pals charm and delight kids of all ages 98 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Rockin' at Rockville High The Rockville High Theater - energetic, fun musical production featuring high school students as they prepare for a TV talent show. Groovinâ at Rockville High The Rockville High Theater - A musical journey through the decade of the 70's. – pop, rock classics of the era and disco fever. Lone Star Nights — New Addition in 2011 Lone Star Nights Laser & Fireworks Celebration is recent addition. This technically-advanced presentation includes enhanced video projection, new lasers, audio, pyrotechnics and special effects. The resulting spectacular features not only bigger, brighter, more animated images, but a new celebratory storyline as well. WATER RIDES The huge two-tier water park features numerous tubes, slides, kid's area and wave pool in the shape of the state of Texas. Ride Location within the Park Description Texas Tumble White Water Bay Large-scale rafting experience featuring high speed, steep drops, and a maze of twists and turns. Big Bender White Water Bay Bender has plummeting dips, dark twisting tunnels, and refreshing waterfalls. White Water Bay You man the controls in this family-friendly, interactive waterpark. Just watch out for the massive water tank spill. 36" min. for slides. White Water Bay Get slammed to the wall of an awesome 40foot bowl by irresistible centrifugal force&mdashthen, drop fifty feet to a thrilling splashdown. Hill Country Racer White Water Bay The whole family will love this super-fast water slide. Up to six riders race downhill on individual mats. Lone Star Lagoon White Water Bay A wave pool shaped like Texas, the Lagoon Texas Treehouse Whirlpool 99 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Location within the Park Ride Description holds over half million gallons of water. Splash water Springs White Water Bay Designed especially for young children, Splash Water Springs is a kid-sized water complex featuring numerous rides and attractions The Mine Shaft White Water Bay Take the whole family on this enclosed, tubular water slide. Ride in a single or double person tube. The Six Chuter White Water Bay This wild and wooly tubing delivers tight twists and turns — and a good soaking. Ride in a single or double person tube. White Water Canyon White Water Bay A relaxing river journey with whirlpools, waterfalls, river rapids, and cliffs. Tornado White Water Bay Drop more than seven stories into a 60-foottall, 132-foot-long water funnel. Then navigate through 5,000 gallons of churning water Tourist visits/performance Six Flags operates as a seasonal business - over 84% of park attendance and revenues are generated between the second and third quarters of the calendar year - and primarily generate its income through ticket sales, in-park food and merchandise sales, and sponsorship revenue. A snapshot of its performance is presented below: Park Location Type Six Flags Fiesta Texas San Antonio Theme & Water Park Primary Secondary Market Market 2 million people 3.6 million people Site (Acres) Visitors Year of Opening 216 1.5 million 1992 Note: Primary Market – Permanent residing population within 50 miles Secondary Market – Permanent residing population within 100 miles 100 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 1.5 Universal Studios Universal Orlando Resort is a theme park resort in Orlando, Florida. It is a joint partnership between NBC Universal and the Blackstone Group. The resort consists of two theme parks- Universal Studios Florida and Universal's Islands of Adventure, Universal CityWalk (a night-time entertainment destination), and three Loews Hotels. Unive rsal Orlando Resort is the largest property owned by Universal Studios Theme Parks. It is also the second-largest resort in Greater Orlando, after the Walt Disney World Resort. It is a unique blend of leisure and recreational facilities including family attractions, sea sports, golf as well as hotel accommodation and retreats. It covers an area of about 5000 acres with 3.2-kilometre stretch of white sand beach. It also offers beachfront accommodation and over 670 hotel rooms with full facilities. 101 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE 1.6 Wild Wadi Water Park, Dubai Wild Wadi Dubai or Wild Wadi Water Park is considered to be among the top ten Dubai attractions. Wild Wadi Dubai is a popular water theme park with several options for entertainment and fun. It has a wave pool, along with several water slides as well as artificial surfing machines. It has one of the largest water slides that are located in the region. There are also two gift shops in the theme park from where the guests can collect their souvenirs and gift items. There are three restaurants where the visitors can order for sumptuous meals. In addition, there are several snack stands as well, from where the guests can pick up items for their munching. The park is available to host corporate and family events too. This water park was designed like an Arabian wadi (oasis) with characteristics from Arabian folklore and has rides and attractions, many of which interconnect. The Arabic word “wadi” means a type of riverbed or valley that fills with water when rainfalls are heavy. Wild Wadi UAE is patterned after an incredible oasis with many interconnecting attractions and rides. Location Tucked in between the Burj Al Arab and the Jumeirah Beach Hotel bordering famous Jumeirah Beach, is one of the most exciting family attractions in the UAE, Wild Wadi Waterpark Dubai. Aside from the sandy shores along Dubai beaches, Wild Wadi Water Park is one of the most exciting places to visit for water sports and leisure. Accessibility Comprising twelve acres of incredible ‘wet and wild’ fun, Wild Wadi in Dubai is less than a half hour drive from the heart of the city. Those heading to the park can easily get there along Jumeirah Beach Road. Public transportation makes the trip numerous times daily. Travellers to the United Arab Emirates (UAE) for a holiday are likely fly into either the Dubai International Airport or the Abu Dhabi Airport. There are more and more flights landing in neighboring Sharjah as well as travel to the UAE increases. Service from Dubai and Abu Dhabi is offered to the majority of main European destinations, throughout the Gulf region as well 102 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE as to India, Africa and Australia. Operator Wild Wadi is managed and operated by Jumeirah International LLC which is owned by HH Sheikh Mohammed Bin Rashid Al Maktoum. Jumeirah Hotels & Resorts is regarded as among the most luxurious and innovative in the world and have won numerous international travel and tourism awards. Facilities at Wild Wadi Snapshot of facilities at Wild Wadi Sl no Facilities 1. Wild Wadi, Dubai 2. Signature Attractions at Wild Wadi Description Wild Wadi has emerged as a popular water park within the city of Dubai 3. Other facilities Jumeirah Sceirah Flow Riders Juha's Journey Breaker's Bay Juha's Dhow and Lagoon Wadi Wash Flood River Flyer Tantrum Alley Burj Surj. At Wild Wadi, shopping is another pleasure visitors can enjoy. Wild Wadi"s Souq Al Wadi, fashioned after a deep, mysterious cavern, offers numerous retail items and souvenirs for the entire family. Wild Wadi dining includes favorite fast food items like pizza and hotdogs as well as healthy options, a barbeque station and a number of stands offering treats like ice cream and sodas. 103 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Theme Park Wild Wadi's variety of rides suit kids of all ages, make it a favourite water sports area in Dubai. The theme park is purely water-based and has thirty heart-racing, modern slides, rides and other attractions ideal for all ages to enjoy. Wild Wadi has the largest water slide outside of North America and also has other features like the 18m (59 ft) waterfall that goes off every 10 minutes and the family-friendly wave pool that is the largest in the Middle East. There are surf simulators, single and double ring rides, and giant tubes which can be ridden in groups. There also are two gift shops, three restaurants and two snack stands. Wild Wadi Waterpark Dubai closing hours differ throughout the year. The park always opens at 11 am. From November through February the park closes at 6 pm, in September and October and from March through May it closes at 7 pm and June through August the closing hour is 9 pm. Some of the highlights are defined in the map below Map of Wild Wadi 104 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE RIDES AT WILD WADI The most popular ride is the Jumeirah Sceirah. This ride is the tallest and fastest free-fall water slide outside of North America. Rising to 33 meters (108 feet) and thrusting riders up to 80 kmph, make it a great experience for thrill-seekers. Master Blaster: With 8 Master Blaster slides in Wild Wadi that are described as uphill water roller coasters, where riders can sit on either a single or double ring, which are propelled uphill by high-powered water jets. These rides are Flood River Flyer, Wadi Leap, White Water Wadi, Falaj Fury, Wadi Twister and Wadi Basher. There are certain height restrictions for the rides for the guests. Ring Rides - Wild Wadi Dubai contains 7 Ring Rides that are described as downhill gravity slides, where riders sit in either a single or double ring sliding down fast to the bottom of the slide. There are many traditional slides in Wild Wadi Water Park, which go downhill. There are two types of sitting arrangements in each ride - one, which includes single sitting arrangement, and the other, which includes double sitting arrangement. Ring rides are quite popular among all the Wild Wadi Rides, as they are downhill rides. There are other adrenalin gushing thrilling modifications of this ride, which include Rushing Rapids, Tunnel of Doom, Falcon Fury, Tumble Falls and other similar kinds of fun rides. The different rides available for the visitors who are hungry for extreme fun and excitement include – the falcon fury, tunnel of Doom, Rushing Rapids, Tumble Falls, and the Thunder Rapids. Other Rides - The other rides in Wild Wadi Dubai include Flow Riders, Juha's Journey, Breaker's Bay, Juha's Dhow and Lagoon, Wadi Wash, and Flood River Flyer. Family Ride is another family ride. This is actually a 2-part ride. Summit Surge is the first half of this exciting ride, in which the riders can have an uphill blast in a pool area. The second part of the ride is the Rushdown Ravine, in which the riders are taken on a 560 ft downhill slide. Other rides include the lazy river trip down Juha’s Journey, Flood River with more than 20-foot waves and over 100,000 liters of cool water and Breaker’s Bay wave pool. 105 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Breakers Bay is another attraction of the Wild Wadi Water Park. This is said to be the largest wave pool of the Middle East. In this pool, swimmers can enjoy crossing and parallel waves, which are almost 5 feet high and splash in many configurations. Flood River: This is all fun in 100,000 liters of water. Swimmers enjoy in the wave, which are over 1 meter in height. Like in Breakers bay, there is no restriction on age of the swimmers, but to keep infants and toddlers safe, parental supervision is made mandatory. Lifejackets are available free of cost, as protection for the guests. Juha’s Journey, is a 360-meter long lazy river. Guests of all ages can enjoy this relaxing ride around a river with a gentle current. Juha’s Dhow: This is another popular ride among the other Wild Wadi rides, which can be the perfect family getaway, where they can have hours of fun surfing the waters and enjoying some of the best colorful body rides Surfing FlowRider Rides, Ripetide and Wipeout are the rides for those who are fond of surfing or would like to try out surfing in this theme park. There are surfing stimulators that shoot out water in great sheets through various foam sheets. These rides are able to create realistic effects, and the riders get to feel the effects of knee board surfing, body board surfing or other types of surfing. Another interesting ride of the several Wild Wadi Rides is the flowrider. Surfers get a thrilling wave effect which is just perfect for the adventure sports lovers who are fond of knee boarding and body boarding. There are some restrictions for these rides also. Wild Wadi Waterpark Dubai also features the Wave Park where a double-point wave break is tackled by some of the best surfers and visitors. Wild Wadi Waterpark unveiled the latest additions to the park - Tantrum Alley and Burj Surj. The Tantrum Alley: It incorporates two large sections of downhill waterslides and three exciting tornadoes. Guests seated on a four-person tube will travel downhill to enter the first tornado where they slide back and forth several times, then circle around and around in the eye of the storm before exiting and hitting the second tornado, after which they splash 106 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE out into the pool. The new rides are the first in the world to push thrill seekers to the limit through the incorporation of three funnels. The equally adventurous ‘Burj Surj’ consists of three large sections of downhill waterslides and two looming ‘Bowls’. Guests are seated on a four-person tube, travelling downhill to the bowls, where they are hurtled into a spiralling spin and then dropped into the slide, ending with a screaming splash in the pool. Pricing The admission fee to enter Wild Wadi has been listed below. Type of Pass Price Description AED 200 - Adult One Day Pass Single day admission fee AED 165 - Child AED 170 - Adult Sundowner AED 135 - Child AED 850 – Adult Summer Pass AED 650 - Child AED 2000 – Adult Annual Pass AED 1000 - Child For admission for the last 2 hours before the park closes Unlimited use of Wild Wadi for the season of Ramdan Unlimited use of Wild Wadi for the entire year Note – Child refers to children below 1.1m Admission includes body boards, rubber tubes and life jackets as well as access to all the park’s attractions. Almost one hundred lifeguards are on throughout each day allowing parents to relax and have fun too Tourist visits/performance A snapshot of its performance is presented below: Park Location Type Number of Rides Site (Acres) Visitors Year of Opening Wild Wadi Dubai, UAE Water Park 30 12 677,000 (2009) 1999 107 Development of Disney Land Theme Part at Bengaluru GOVERNMENT OF KARNATAKA INITIATIVE Wild Wadi has been Dubai’s favorite family destination for the last eleven years and the new rides, which are a first for this region, can be enjoyed by the entire family, providing thrilling hours of fun for all ages. Competitive Strategies Right Sizing to weather visitor and economic downturns: Wild Wadi had 677,000 (2009) guests visiting the park which was a 17.9% drop from the previous year. Wild Wadi was able to weather the economic downturn unlike other parks in the region. The most significant fall-out was the shelving of Dubai-Land. The once-high expectations for Dubai and the UAE have been curtailed, for the time being at least. Dubai is playing a major role in the large scale touristic process with the planning of very large parks like Dubailand. However the economic turmoil in 2008 resulted in the mega-project to being temporarily shelved. Partnering ensures mutual success: 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. The 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. Further the concept of sundowner is interesting as Wild Wadi is located within Dubai City and number of people can visit the park after work and yet cant burdened by paying the full day price. 108