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Grønnedal Arctic Resort Feasibility Study

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Grønnedal Arctic Resort Feasibility Study 2018 Grønnedal Arctic Resort Feasibility Study From liability to asset Version 2.02 Andreas Brogaard Buhl Arsuk Fjord Real Estate IVS 5/5/2018 Grønnedal Arctic Resort - Feasibility Study Table of Contents 1. Executive Summary ........................................................................................................... 6 2. Introduction ........................................................................................................................ 8 Background ................................................................................................................................. 8 Outline of research methodology ................................................................................................. 8 3. Proposed Hotel Facilities ................................................................................................... 8 Location and site ......................................................................................................................... 8 Existing infrastructure .................................................................................................................. 9 Hotel and family villa facilities .................................................................................................... 10 Area utilisation by sub-component ............................................................................................. 10 Accomodation Capacity ............................................................................................................. 10 Guest Hotel accommodation (Family Villas) .............................................................................. 11 Guest Hotel accommodation (hotel) .......................................................................................... 11 Restaurant, Bar, Café and conference facilities ......................................................................... 11 Health, Spa and leisure facility .................................................................................................. 11 Outdoor activities and local excursions ...................................................................................... 12 Golf course and gravel runway for fixed wing planes ................................................................. 12 Suppliers and sub-contractors identified .................................................................................... 12 Sustainable environment, energy, waste water and solid waste handling .................................. 13 Management of the proposed resort .......................................................................................... 13 Some typical management fees as seen in the hotel industry .................................................... 13 4. General information about Southern Greenland ............................................................ 14 Introduction to Greenland .......................................................................................................... 14 International Airport and main towns in Southern Greenland ..................................................... 14 Nature around the Arsuk Fjord .................................................................................................. 14 Climate around Arsuk Fjord ....................................................................................................... 14 History and culture around the Arsuk Fjord ................................................................................ 15 Government and political conditions .......................................................................................... 15 Access and transport connectivity in Southern Greenland ......................................................... 15 Passenger statistics for Greenland ............................................................................................ 16 Communications ........................................................................................................................ 16 5. Socio-economic analysis ................................................................................................. 17 Trends in population and demographics .................................................................................... 17 Political environment ................................................................................................................. 17 Local economy and investment climate ..................................................................................... 17 Private sector development ....................................................................................................... 17 Land matters and rights to property ........................................................................................... 17 1 Grønnedal Arctic Resort - Feasibility Study Development Effects of the proposed tourism development at Grønnedal. ................................ 18 Applicable taxes ........................................................................................................................ 19 6. Tourism in Greenland in general ..................................................................................... 20 Background ............................................................................................................................... 20 Arctic tourism trends from Svalbard, Iceland and Greenland ..................................................... 20 Types of tourism in Greenland, segments as identified by Visit Greenland ................................ 21 Supporting infrastructure ........................................................................................................... 22 Airports, heliports and shipping connectivity .............................................................................. 22 Relevant concessions, permits and authorisations .................................................................... 22 Manpower ................................................................................................................................. 23 7. Demand analysis .............................................................................................................. 24 Tourism in Southern Greenland ................................................................................................. 24 Market positioning of the subject resort facility .......................................................................... 24 Family and relations holidays demand ....................................................................................... 24 Nature holidays and leisure demand ......................................................................................... 24 Business demand, Conference and corporate group demand ................................................... 25 Research ................................................................................................................................... 25 Cruise tourism demand ............................................................................................................. 25 8. Supply analysis ................................................................................................................ 26 Introduction ............................................................................................................................... 26 Seasonality ................................................................................................................................ 26 Existing tourist facilities and services in Southern Greenland .................................................... 27 Local area competitive supply ................................................................................................... 27 New hotel developments ........................................................................................................... 27 Product Pricing .......................................................................................................................... 27 Transfer options ........................................................................................................................ 28 9. Financial analysis ............................................................................................................. 30 General assumptions and number of visitors ............................................................................. 30 Project pre-operation and start date .......................................................................................... 31 Revenue generation .................................................................................................................. 31 Accomodation in cabins (phase one) ..................................................................................... 32 Accommodation in hotel (phase two) and apartments (phase three) ...................................... 32 Conferences and groups ........................................................................................................ 33 Food & Beverages in Cabins and hotel .................................................................................. 33 Food & Beverages, alternative way of calculating .................................................................. 34 Local Boattrips in Arsuk Fjord ................................................................................................ 35 Cost of sale assumptions (typical
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