By Korston Group
Sochi-World - Scope
SOCHI OLYMPIC DEVELOPMENT
Sport
Complexes
Hotel &
Convention
Entertainment
Infrastructure
Olympic
Village
Sochi 2014
Winter Olympic
Sochi-World
Sport
Complexes
Hotel &
Convention
Entertainment
Infrastructure
Sochi-World
Worldwide Tourist Destination
Olympic
Village
Sochi-World - Timeline
2010-2013
Planning
Sochi 2014
Winter Olympic
Sochi World
Worldwide Tourist
Destination
SOCHI OLYMPIC DEVELOPMENT
IOC
Compliances
General
Management
Sochi-World
Logistics
Sustainability
Long Term
Feasibility
Support
(Hotels, Resort)
General
Management
Sochi-World Goals – Mission
• Create Sochi-World as a world wide Exhibition,
Convention and Leisure Tourism Destination
• Supporting Sport events beyond 2014 Winter
Olympics
• Protection asset value
• Return on investment
Sochi-World Goals - Vision
• Became the Leading European Convention
Exhibition, Sport and Entertainment
Destination:
– 10 Top International / European Sport Events per
year.
– Host National Sport Events and Championships
– 35 World Exhibition per year. Total 3 million
visitors.
– One million Convention delegates per year.
– One million Room nights.
Sochi-World Goals – SWOT Analysis
STREANGTH
• All year destination
• Winter sport & summer sport
destination
• Established VIP and official vacation
destination
OPORTUNITIES
• Russians favor for an own top truism
destination
• Russia growing outgoing tourism market
• Olympic Games helps to create
international brand
WEAKNESS
• Unstable weather
• Underdeveloped
• City and regional infrastructure
THREATS
• Too far from European center
• Visa regime
• Instability in the Caucasus Region
Sochi-World Goals – SWOT Analysis
STREANGTH
• All year destination
Duty Free Zone
• Winter sport
& summer sport
destination
• Established VIP and official vacation
destination
OPORTUNITIES
• Russians favor for an own top truism
destination
• Russia growing outgoing tourism market
• Olympic Games helps to create
international brand
Single Management
Company
WEAKNESS
• Unstable weather
• Underdeveloped destination
• City and regional infrastructure
Integrated
Infrastructure
Gaming Zone
THREATS
• Too far from European center
• Visa regime
• Instability in the Caucasus Region
Visa Free Zone
Sochi-World – Strategy
•
•
•
•
•
Integrate infrastructure
Single management company
Duty Free status
Visa Free regime
Gaming zone
Strategy – Integrate Infrastructure
• Olympic Area
– Sport Stadiums, Circus
• Resort Area I
– Hotels (3*): 2100 rooms, family entertainment (Aqua park,
Amusement Park, Shopping)
• Resort Area II
– Hotels (4*, 5*) 2400 rooms, Convention space (20’000 m2)
& Exhibition Center (40’000 m2) , SPA, Shopping, Casinos
• Common Infrastructure
– Internal transportation system CO2 emission free
– Supporting services: laundry, central warehouse, etc
– Engineering systems (autonomy): electro-generation,
boiler, etc
Strategy – Integrate Infrastructure
Resort Area II Olympic Area Resort Area I
Strategy – Single Management Company
• Manages all the facilities and staff
– Runs the hotels, convention, exhibition and
entertainment
– Supports sport events
• Commercializes the facilities
– Operates (hotel, entertainment, convention)
– Rents facilities (shopping, sport)
– Marketing (promotes and advertize)
• Provides Security and Safety and Regimes
• Ensures technical and engineering work
Sochi-World Strategy – Duty Free Status
• Applies to all Sochi-World territory
• Entitles retail selling only (no wholesale)
• Has a similar regime as in international
airports
• Custom controls in the accesses
• Possibility of including or excluding the
Olympic Area from the free zone
Sochi-World Strategy – Visa Free Status
• Applies to all Sochi-World territory
• Migration check-points at all accesses
• Foreign citizens can come without visa direct
from Airport transit area by special transfer
• Russian and CIS citizens go in and out with
internal or external passport
• Foreign citizens with visas can come or go
according to their visa statuses
• Russian Consular officer on duty on the territory
• Possibility of including or excluding the Olympic
and Resort I Areas from the free zone
Strategy – Gaming zone
• Gaming zone to be crated in part of SochiWorld territory
– Excludes Olympic and Resort I Areas
• All gaming operated by Sochi-World
Management Company
• Compliances with law
– 18 y. o.
– Possibility of exclude compulsive gamers by court
order.
Strategy – complex approach
Strategy
Impact in
Image
Impact in
Visitor Count
Impact in
Revenue
Integrated
Infrastructure
Sochi-World
perceived as
one
Destination
Increases
total
headcount,
Maximizing
multiple use
Investment
Savings
Up to
Increases
up to 10%,
15% more
by 40%
Operating
savings 5%
Single
Management
Stronger
Promotion of
the brand, by
consolidating
marketing
resources
Up to
25%
more, by
avoiding
price
dumping
Impact in
Cost
Savings
up to 10%
by pooling
resources
Impact in
Profit
Increases by
230%
(reduces pay
back period
three times)
Strategy – exploiting opportunities
Strategy
Impact in
Image
Impact in
Visitor Count
Impact in
Revenue
Duty Free
Zone
Positive
associations
“modern”
“special”
“international”
Increase
Local
Up to
23%
Up to 70%
Visa Free
Zone
Positive
associations
“visitor friendly”
“international”
Increases
International
Up to 30%
Up to 50%
Up to 80%
Up to 300%
Gaming
Zone
Impact in
Cost
Impact in
Profit
Sochi-World - Management Company proposal
• Korston Group is ready to form, finance and
support the creation and operation of SochiWorld Management Company
Korston Group – Highlights
•
•
•
•
•
•
More than 1000 Rooms under management
More than 20’000 m2 Convention space
25 Restaurants
40’000 m2 in Entertainment Center
100’000 m2 Shopping Centers
600’000 m2 Under development in Russian
Regions
• Shareholder of Nizhny Novgorod Trade Fair
• Employees: 1’500 (3’500 before July 1st 2009)
Korston Group – Management Team
AREA
Years
Experience
Anatoly Kuznetsov President
(Russia)
30
Entrepreneur: Hotel, Casino, Trade, Retail,
Entertainment, Development, Construction
Lisandro Platzer
(Argentina)
Strategy
15
Executive: MBA, Hotel Chains, Development,
Casino, Strategy, Consultancy, IT
Hans Stohs
(Austria)
Business
Development
40
Executive: Development, Hotel, Congress,
Resorts, Over 30 openings in 19 countries.
Clive Tilley
(UK)
Gaming
20
Entrepreneur: Gaming, Hospitality,
Entertainment
Alain Bourdin
(France)
Finances
30
Executive: MBA, Finances, Banking, IT, Sport
Giordano Borri
(Italy)
Operations
20
Executive: Hotelier, Resort, F&B Congress,
Marketing, Sport, Leisure
Yuriy Kosenko
(Russia)
Security
30
Major General (R), Security Services
Denis Monolenko
(Russia)
Legal &
5
administration
Legal Counsel, Corporate Governance,
Property Rights, Investment
Korston Group – Key Factors
• Russian Company
– Transparency
• Required experience
– In all the Areas
– International
– Comparable sizes of operations
• Readiness
– To deploy required manager team (7 days)
– To supply 300 million Rubles to the Management
company (5 days)
Schedule of Interaction – Three Stages
2010-2013
Planning
Sochi 2014
Winter Olympic
Sochi World
Worldwide Tourist
Destination
SOCHI 2014 OLYMPIC COMITEE
IOC
Compliances
General
Management
Sochi-World Management Company
Logistics
Sustainability
Long Term
Feasibility
Support
(Hotels, Catering)
General
Management
Schedule of Interaction – Stage II (Games 2014)
Winter Games
Sochi 2014
Russian
Government
Sport
Authorities
Asset
Owners
SOCHI 2014 OLYMPIC COMITEE
2014 Winter Olympics
Game Administration
Accreditations
Media Center
Transportation
Security & Safety
Games Marketing
Ticket Sales
Olympic Village
Management
Infrastructure
Management
Korston
Group
Sochi-World
Management Company
Hotel Management
Logistics
F&B Catering
Schedule of Interaction – Stage I (till 2013)
2010-2013
Planning
Sport
Authorities
Russian
Government
Asset
Owners
Coordination
Board
Korston
Group
Sochi-World Management Company
Sochi-World
Brand Concept
SOCHI 2014 OLYMPIC
COMITEE
IOC Compliances
2014 Winter Olympics
Requirements
Olympic Objects
Planning
General
Planner
Sustainability
Logistics
Long Term Feasibility
Hotels & Other
Facilities Planners
Sochi-World - Organization Structure
Sochi World
Worldwide Tourist
Destination
Russian
Government
Korston
Group
Supervisory
Board
Asset
Asset
Owners
Owners
Sport
Authorities
Sochi-World
Management
Company
Sochi-World
Hotel &
Conventions
Entertainment
& Shopping
Infrastructure
& Security
Sport
Complexes
Next Steps
•
•
•
•
Government act
Management company to be created
Management agreement
Korston immediately assisting with planning
and project management