kind angel of the world cyprus international theme park services, inc
TRANSCRIPT
Kind Angel of the World Cyprus
International Theme Park Services, Inc.
Background
International Theme Park Services, Inc.
• A world-wide management and consulting firm located in Cincinnati, Ohio (USA) established in 1983.
• Formed to fill the demand for practical knowledge and hands-on experience in leisure and attendance driven industries.
• A full service organization that offers complete consultation and management services in the areas of: Theme Parks, Amusement Parks, Resorts, Waterparks, Observation Towers, Specialty Attractions, Family Entertainment Centers, Malls, Aquariums, and Zoos.
• Maintains a complete database of most current industry information and research.
• Stays up to date on the leisure industry and its trends. Remains abreast of current economic influences, state-of-the-art advances, and knowing what visitors expect.
• Defines, develops and establishes programs and procedures specifically for each project.
• Approaches each project with vitality and a commitment to excellence.
• Works to ensure that the highest standard of quality and professionalism are planned and integrated throughout the entire project.
ITPS and IAAPA (Industry Association)
• Dennis Speigel is a past president of IAAPA and currently serves on the Board of Directors.– Chaired the Education committee – Created the Cornell University
Education Institute Program– As part of the IAAPA Strategic
Planning Committee, Dennis recommended, developed and chaired the first long range plans / goals for IAAPA
– 2010 Lifetime Service Award• ITPS staff have chaired on
numerous association committees.
• ITPS staff have written numerous articles for IAAPA publication.
• ITPS brought IAAPA to Russia.
Report Methodology
• No pre-conceived notions.• Visit the marketplace. • Undertake due diligence in gathering data and most recent
research.• Experience other leisure opportunities.• Tour the site and determine key site characteristics.
Industry Overview
Industry Overview
• The Kind Angel of the World would be entering the overall leisure and attractions industry, an industry that boasts a very long and successful history. Detailed data is shared through the industry’s global governing bodies.
• Specifically, the Kind Angel of the World, although distinctive as a monument / statue of an Angel symbolizing peace, is proposed to operate as a commercial vertical structure that offers observation levels and other ancillary components of a cultural and entertainment nature.
• The vertical structures / towers industry evolved out of the leisure and attractions industry. Its foundations date back several years. Through the years, more tower operations have been built – and continue to be built - all over the world.
• The towers and vertical structures industry is monitored through several organizations, most notably the World Federation of Great Towers.
Concept Review
Towers, Vertical Structures, & Monuments
Concept Review
• The approximate height of the proposed Kind Angel of the World is 135 meters (443 feet).
• The structure would be a “green” operation, boasting a self-sustaining environment.
• The following components have been currently proposed for inclusion in the Kind Angel of the World in Cyprus.– Concert Hall– Bar-Restaurants– Cafes– Mini-Bars– Meeting Rooms– Office Space– Exhibition Hall– Observation Platforms
Concept Review
Site Review
Site and Location
• Cyprus is the third largest island in the Mediterranean and today is one of its most popular tourist destinations.
• Available modes of transport are by road, sea and air. Cyprus offers a modernized roadway system connecting its main districts, and has two international airports.
• The proposed location for the Kind Angel of the World is near the village of Monagroulli, about five to seven kilometers east of Limassol, Republic of Cyprus. The exact location encompasses 6.3 hectares (15.5 acres, 63,000 square meters) along beachfront property near Alamanos Beach.
Site and Location
• Limassol is the second largest city in Cyprus and is located on the southern coast at Akrotiri Bay. It is the largest port in the Mediterranean transit trade. Built between the two ancient cities of Amathus and Kourion, Limassol has become an important tourism, trade and service center. Many annual festivals are held in Limassol.
• The proposed site for the project can be easily accessed from the main roadway linking Limassol and Larnaca. While some travel is necessary on secondary roads, the distance from the main road is not a hindrance.
Site and Location
• Although the project site is not far from Limassol, there are no other nearby demand generators to bring people to the site, except for a couple of nearby restaurants.
• The reported development of a nearby university will greatly enhance the site’s overall marketability.
• Further, ITPS believes the impact of the Kind Angel of the World operation in the area will help to generate new commercial ventures, thus ultimately bringing more traffic to the site.
Market
Total Projected Market
2014 2015 2016 2017 2018
RESIDENT MARKET
Primary Market
Lemesos (Limassol) 246,200 250,100 254,000 258,000 262,100
Larnaka 143,300 145,500 147,800 150,100 152,500
Subtotal Primary Market 389,500 395,600 401,800 408,100 414,600
Secondary Market
Lefkosia (Nicosia) 333,500 338,700 344,000 349,400 354,900
Pafos 83,600 84,900 86,200 87,600 89,000
Ammochostos (Famagusta) 48,300 49,100 49,900 50,700 51,500
Subtotal Secondary Market 465,400 472,700 480,100 487,700 495,400
Total Resident Market 854,900 868,300 881,900 895,800 910,000
TOURIST MARKET
Tourist Arrivals 2,244,900 2,263,200 2,281,700 2,300,400 2,319,200
Excursionist Arrivals 366,200 392,500 420,800 451,000 483,400
Total Tourist Market 2,611,100 2,655,700 2,702,500 2,751,400 2,802,600
TOTAL MARKET 3,466,000 3,524,000 3,584,400 3,647,200 3,712,600
Attendance and Demand
Market Penetration and Attendance
Estimated
Market Segment Size Low Probable High Low Probable High
Resident Market: 854,900 18.2% 20.0% 22.0% 155,436 170,980 188,078
Tourist Market: 2,611,100 22.7% 25.0% 27.5% 593,432 652,775 718,053
Totals 3,466,000 748,868 823,755 906,131
Annual Attendance
Year 1 Year 2 Year 3 Year 4 Year 5
Market Segment 2014 2015 2016 2017 2018
Market Size:
Resident Market: 854,900 868,300 881,900 895,800 910,000
Tourist Market: 2,611,100 2,655,700 2,702,500 2,751,400 2,802,600
Market Penetration:
Resident Market: 20.0% 20.0% 20.0% 20.0% 20.0%
Tourist Market: 25.0% 25.0% 25.0% 25.0% 25.0%
Market Segment Attendance:
Resident Market: 170,980 173,660 176,380 179,160 182,000
Tourist Market: 652,775 663,925 675,625 687,850 700,650
Annual Attendance 823,755 837,585 852,005 867,010 882,650
Potential
Market Penetration
Potential
Annual Attendance
Potential Market Penetration
Projected Annual Attendance
790,000
800,000
810,000
820,000
830,000
840,000
850,000
860,000
870,000
880,000
890,000
2014 2015 2016 2017 2018
Year 1 Year 2 Year 3 Year 4 Year 5
823,755
837,585
852,005
867,010
882,650
Financial Analysis
Per Capita Revenues
• The financial analysis for the Kind Angel of the World in Cyprus utilized data and information from the attractions and leisure industry, in particular that of other tower and vertical structure operations, in the projection of revenues and operating expenses.
• The forecasts and projections were based on the current concept and attendance projections, and have indicated the financial or economic potential and viability of the project through financial measures.
Year 1 Year 2 Year 3 Year 4 Year 5
Per Capita Revenues 2014 2015 2016 2017 2018
Admissions $17.09 $17.77 $18.48 $19.22 $19.99
Parking $0.25 $0.26 $0.27 $0.28 $0.29
Food & Beverage $16.23 $16.88 $17.56 $18.26 $18.99
Conferences / Events $3.42 $3.55 $3.70 $3.84 $4.00
Merchandise $4.27 $4.44 $4.62 $4.81 $5.00
Theater / Museum $1.50 $1.56 $1.62 $1.69 $1.75
Miscellaneous $0.10 $0.10 $0.11 $0.11 $0.12
Total Per Capita $42.86 $44.57 $46.36 $48.21 $50.14
Operating Revenues
• Based on comparisons of leisure pricing, and after examining price relationships of other vertical structures to waterparks or amusements parks within the same market, ITPS has assumed an adult admission price of $25.00 USD for the Kind Angel of the World.
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues 2014 2015 2016 2017 2018
Admissions $14,075,914 $14,884,723 $15,746,416 $16,665,059 $17,642,496
Parking $205,939 $217,772 $230,382 $243,817 $258,144
Food & Beverage $13,372,118 $14,140,487 $14,959,289 $15,831,653 $16,761,930
Conferences / Events $2,815,183 $2,976,945 $3,149,324 $3,332,980 $3,528,827
Merchandise $3,518,978 $3,721,181 $3,936,655 $4,166,224 $4,411,034
Concerts $2,400,000 $2,496,000 $2,595,840 $2,699,674 $2,807,661
Theater / Museum $1,235,633 $1,306,633 $1,382,293 $1,462,903 $1,548,863
Miscellaneous $82,376 $87,109 $92,153 $97,527 $103,258
Total Operating Revenues $37,706,141 $39,830,850 $42,092,352 $44,499,837 $47,062,213
Operating Expenses
Year 1 Year 2 Year 3 Year 4 Year 5
Category 2014 2015 2016 2017 2018
Cost of Goods Sold:
Food & Beverage $4,680,241 $4,949,170 $5,235,751 $5,541,079 $5,866,676
Merchandise $1,583,540 $1,674,531 $1,771,495 $1,874,801 $1,984,965
Concerts $1,920,000 $1,996,800 $2,076,672 $2,159,739 $2,246,128
Total $8,183,781 $8,620,502 $9,083,918 $9,575,618 $10,097,769
Operating Expenses:
Salaries/Wages $7,541,228 $7,842,877 $8,156,592 $8,482,856 $8,822,170
Marketing $3,770,614 $3,921,439 $4,078,296 $4,241,428 $4,411,085
Maintenance $1,508,246 $1,568,575 $1,631,318 $1,696,571 $1,764,434
Rentals/Services $1,885,307 $1,960,719 $2,039,148 $2,120,714 $2,205,543
Utilities $942,654 $980,360 $1,019,574 $1,060,357 $1,102,771
Supplies $1,319,715 $1,372,504 $1,427,404 $1,484,500 $1,543,880
Insurance $565,592 $588,216 $611,744 $636,214 $661,663
Miscellaneous $1,319,715 $1,372,504 $1,427,404 $1,484,500 $1,543,880
Total $18,853,071 $19,607,193 $20,391,481 $21,207,140 $22,055,426
Projected Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5
Category 2014 2015 2016 2017 2018
Operating Revenues $37,706,141 $39,830,850 $42,092,352 $44,499,837 $47,062,213
Sponsorship Revenues $565,592 $597,463 $631,385 $667,498 $705,933
Total Revenues $38,271,733 $40,428,313 $42,723,737 $45,167,334 $47,768,146
Less: Cost of Goods Sold $8,183,781 $8,620,502 $9,083,918 $9,575,618 $10,097,769
Gross Margin $30,087,952 $31,807,811 $33,639,819 $35,591,716 $37,670,376
Less: Operating Expenses $18,853,071 $19,607,193 $20,391,481 $21,207,140 $22,055,426
Less: Management Fee $1,131,184 $1,194,926 $1,262,771 $1,334,995 $1,411,866
Earnings Before Interest, Taxes,
Depreciation and Amortization $10,103,697 $11,005,692 $11,985,568 $13,049,581 $14,203,084
Percent EBITDA/Revenues 27% 28% 28% 29% 30%
Cumulative Earnings $10,103,697 $21,109,389 $33,094,957 $46,144,537 $60,347,622
Net Warranted Investment
• The projected earnings during the first five years of operation would support an investment of between $60.0 million USD and $72.0 million USD. The medium investment level is shown to be $66 million USD.
• Based on these assumptions, the internal rate of return for the project is 30 percent.
• Overall results indicate that the Kind Angel of the World in Cyprus can operate profitably if all assumptions and parameters that impact results as presented are achieved.
Factor Low Medium High
Average Earnings - Years 1 through 5 $12,069,524 $12,069,524 $12,069,524
Multiplier 5.0 5.5 6.0
Capitalization Rate 20.0% 18.2% 16.7%
Net Warranted Investment $60,000,000 $66,000,000 $72,000,000
Global Commercial Attractiveness
Global Commercial Attractiveness
THE HIGHEST MONUMENTS IN THE WORLD
Kind Angel of the World Cyprus
International Theme Park Services, Inc.