Tourism development plan of the Spa-Francorchamps destination Wallonia- Belgium Offering Memorandum www.spi.be/fr/destination-francorchamps March 2013 Preamble Preamble The project destination Spa / Francorchamps is aiming to build an "innovative tourist resort" based on the current and future activities of the Spa / Francorchamps circuit and the green region. The region is characterised by its nature, forests and lakes and has the Walloon region's richest concentration of tourism resources: spa and wellness, nature and outdoor activities, skiing and walking trails, mountain biking and cycling, gastronomy, heritage and historic towns in the nature reserve of Hautes Fagnes (the largest nature reserve in Belgium). This project will be implemented through a partnership between public authorities and private operators. It aims to structure and organise an overall tourism product focused on diverse leisure activities and day trips, as well as on stays in charming accommodation (boutique hotels, rural houses, bed and breakfasts, ...), eco- resorts and innovative accommodation options (glamping, a forest village, ...) and a golf course residential development. The role of the Public Authorities of Wallonia will be to: The role of Private Operators / Investors will be to: • Ensure the good land management of the project and guarantee its • Invest in tourism projects which offer tourists / visitors a quality experience. sustainability; • The different business projects may be divided or grouped into batches in • Develop the necessary basic infrastructure and appealing attractions order to offer attractive opportunities to operators (theme park based on (circuit, ...); automotive experience and transport history, bistros and restaurants, outdoor activities in natural settings, fitness activities, sports). • Ensure consistency in urban planning and development. 2 Table of Contents The opportunity Page 4 Background information on the destination Page 8 Concept Page 20 Conceptual Masterplan Page 23 Project Components Page 27 Development Programme Page 40 Financial and Economic feasibility Page 42 Appendice Page 69 3 A unique opportunity 4 The Opportunity The implementation of the project Implementation of the project The project can be entrusted to a single operator/investor or a developer associated with partners in each industry. It can thus be awarded in several homogeneous lots, namely • Theme park: Energy Motion focused on Automobile, transportation and technological innovation; • Experience in the Forest focused on outdoor activities in the nature, the Village in the trees, mountain bike, cycle touring and rambling; • Accommodation, namely ecological and unusual accommodation, the Spa/Wellness Hotel, Glamping, tourism Resorts in the region surrounding the circuit. These can be conceded in different lots (real estate golf, boutique hotel and wellness, unusual accommodation and glamping). The various projects around the Francorchamps circuit will be related to existing sites: Botrange Nature Centre, Berinzenne Forest House, the Libert Farm bike park , Ovifat and Mont des Brumes ski slopes, Stavelot Abbay and Malmedy Monastery, as well as the Spa thermal centre, in order to build anetworkof facilities which offers quality leisure experiences. 5 Preamble A unique opportunity to operate an innovative tourism destination in the Ardennes with great potential 1. The Destination Destination easily accessible by road and motorway; Destination close to the main markets for short stays and excursions : • Dutch market: 15 million inhabitants • German market of the Rhur Region: 30 million inhabitants • Belgian market: 10 million inhabitants This destination is a green oasis in the highly industrialised and urbanised north-west of Europe This destination welcomes large numbers of tourists all year round in every season (summer, autumn, winter, spring) 2. The project The project is an innovative and ecological tourism resort; It addresses many different customer segments on the basis of the new consumption trends; It is based on experiencing nature actively and on new transportation technologies; It offers educational fun (edutainment) in a unique environment 3. An initiative of the Walloon Region and the regional stakeholders The Walloon Region, main public funding contributor, backs the project and guarantees its sustainability along with that of the urban framework. The project is supported by local stakeholders 4. Key financial numbers of the project Investments IRR Net Present Value Public Private Components only Total investment Components only Total investment €25,6 million € 36 millions 9,1% 1,7% + €3,5 millions -€18,4 millions 6 Preamble This project is supported by the Public Authorities This project is supported by the Walloon region, main owner of the site and main public operator supported by the local stakeholders (provincial, intermunicipal, municipal and the whole of the tourism/catering industry). This project provides many guarantees for Operators / Investors and is a unique investment opportunity for the tourism/leisure business in the Wallonia territory: • Investment and employment incentives from the Walloon regional authority • It is located in the centre of the golden triangle of the Belgian Ardennes; • It is very accessible for the Dutch (15 million inhabitants), German-Ruhr (30 million inhabitants) and Belgian markets (10 million inhabitants); • Sound land management will be ensured by the public authorities; • The successful completion of the project is guaranteed by the strong presence of public investment and consistent planning (design, action and management unit) within the framework of the signing of long-term contracts between public authorities and private partners; • It will generate wealth, prosperity and employment Private operators will be able to work with a unique and powerful partner for the monitoring and development of the territory. The incentives, the quality of the resource, the guarantees of the government and the support from public organizations involved - make this project a unique business opportunity for the tourism business in Wallonia 7 Background information on the destination 8 The destination of Spa-Francorchamps The destination of Spa Francorchamps is located in south- eastern Belgium in the province of Liège. Situated in the Ardennes, this region is particularly green making it a popular destination for sports and eco-tourism. It is perfect for a holiday centred around extreme sports, as well as being ideal for hiking and exploring nature. This region borders on Germany and Luxembourg making it an ideal venue for hosting international tourists. Moreover, it is particularly well served by several transport modes such as air, rail and road. For example, the E42 motorway goes through the centre of the region on its way to Germany; the station of Liège receives high speed trains and the airports of Liège and Maastricht are located at less than 100 km. 9 9 Potential clients in the project region The high population density means that within a Volume of population, among the most affluent in Europe, within a 50 to 300 km radius in southern Belgian around the provinces of Namur-Luxembourg (in millions) radius of 50 to 300 km south of Belgium there are more than 66 million people, representing an important customer potential for Wallonia 2 Million inhabitants This population represents potential clientele with easy access to Wallonia, particularly from the provinces of Namur, Luxembourg and Liège 9 Million inhabitants In addition, the GDP per capita of the countries around Wallonia, are among the most affluent in 20 Million Europe (figures in Euros in 2012): inhabitants • Luxembourg: €69,170 • Netherlands: €33,450 60 Million • Belgium: € 30,290 inhabitants • France: € 27,550 • Germany: € 31,320 Site of Spa • Great Britain: € 27,870 Francorchamps In the particular case of Francorchamps, estimated 50 million consumers are within a 250 km radius of the city Source: CITW and T&L research 10 Accommodation supply in the Walloon Region Distribution of tourist accommodation capacity (in beds) in 2008 Social Regional tourism; tourism; 6.597; 7% The offering of tourist accommodation consisted of 20.572; Holiday 21% towns; 97,003 beds in 2008, including all types of 17.275; 18% accommodation, of which camping represents 31% and hotels 23% of beds Hotels; Camp - grounds; High density of tourist accommodation in the south-east 22.502; 23% 30.057; of the region: provinces of Luxembourg, Namur and 31% the south of the province of Liège Accommodation capacity in beds (2008): distribution by province Liege Province has 25% of the tourism beds registered Namur; 19% in the Walloon Region Luxembourg; Brabant 43% Wallon; 4% Hainaut; 9% Liège; 25% Sources: Strategic structural plan and evaluation of the tourist offer of the Wallonia region, KPMG, 2007 and CITW 11 Attractions in Wallonia There are many tourist attractions in Wallonia, generally of small size and intended for all segments Attractions classified by categories Castles and Historical homes fortresses; 8% and buildings; 6% More than 8 out of 10 attractions register less than 50,000 visitors per year Nautical attractions; 9% Recreational There are a large number of attractions, especially of traditional types, in centres and parks; Museums; 55% scattere d ltilocations and mostlywith low atten dance figures 10% Natural attractions; 12% Museums are the most visited type of attractions followed by nature attractions and recreation parks Tourist attraction