Kish Free Zone Organization

The Baghoo Tourism Complex


The Baghoo Tourism Complex

A- Project Introduction

1. Project title: The Baghoo tourism complex

2. Sector: Services Sub-sector: Tourism

3. Products / Services: Traditional residence, tea room and restaurant, showing livestock and agriculture and traditional crafts marketplace

4. Location:

Free zone  Special Economic Zone  Industrial Park  Main location

5. Project specifications
This project is about construction of a tourism complex in Baghoo village and near Louver old native trees located in west-south of the island including traditional residential area, tea house and restaurant, displaying traditional animal husbandry and agricultural and a market for handicrafts.
Tourism complex of Baghoo village in this project has 30 rooms, each 35m and 5 suites, each 60m near a market with an area of 300sqm and a traditional restaurant with an area of 500sqm. Based on relevant requirements and regulations, financial estimations are carried out by considering using light structures and maximum height of 2 storeys A property with an area of 5500sqm is considered for this project that 2850sqm of that area belong to the buildings and the rest to green area and yard
The project provides jobs for 36 people and its annual capacity is 7,000 residential and over 50,000 visitors
6. Annual Capacity: 7,000 residential and over 50,000 visitors per year
7. Land requirement: 5,500Sq.m
8. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be
leased to investors.

9. permissions:
The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from
other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject
10. Construction and operation period:

The construction project will be done in 1 years and the operation phase is 15 years
11. Target market:

Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures
testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the
recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.
12. Access to Infrastructures:

Distance to project locationInfrastructure requiredtem
At the siteWater1
At the siteElectricity2
At the siteTelecommunication4
At the siteThe main road5
380kmRailway station8

B- Financial structure:
13. Cost and benefits

USD $ 1.5 millionCapital expenditure
USD $ 1.8 millionOperating Revenue
USD $ 0.3 millionOperating cost

14. Financial index

USD $ 1.4 millionNet benefit
5.1Benefit–cost ratio (B/C()
1.7 YearsPayback Period

15. Economic index

USD $ 4.8 millionNet present value (NPV)
69 %Internal rate of return (IRR)
11 %Break-even point

16. Methods of participation:
For this project, investor may proceed with individual investment by obtaining necessary permits or undergo partnership with Kish Free Zone Organization for carrying out project through various
partnership models.
C- Incentives, features and advantages of the project:

17. Incentives:

• Simplified formalities for re-export and goods transit
• Tax exemption and the benefits of accessing to foreign
• 20year tax exemption for any type of financial business
• Preferential rates of land to build hotels and recreational tourism places.
• Customs duties exemption to imports raw materials and industrial machinery of the production units
• No restrictions on entry and existence of the exchange currency on any amount and the possibility
to transfer money to foreign companies.
18. Support and legal advantages:

• Foreign nationals’ entrance with no visa
• Legally protecting and ensuring foreign investors.
• Registering company with 100 percent foreign ownership
• Have the right of entry and exit the capital and the profits
19. Special and unique benefits of the region:

• Having access to the international free waterways
• Having an energy source (gas) independent of the mainland
• The ability to transit goods to neighboring CIS countries and Iran
• High level of security and social peace and low levels of social disorder
• A harbor with the ability of berthing vessels with 12,000 tones capacity.
• Exporting products to foreign countries without paying customs and harbor duties
• International Securities Exchange activity and oil and petrochemical products stock
• Having good optical fiber network and an independent private mobile network privileges
• Having an independent airline and shipping lines with the possibility of transporting vehicles