Baihe Nature Reserve. An Eco Tourism Project in Jiuzhaigou, China

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Quentin Paul
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1 Baihe Nature Reserve An Eco Tourism Project in Jiuzhaigou, China

2 Aba Tibetan Qiang Autonomous Prefecture Aba Tibetan Qiang Autonomous Prefecture is located on the southeastern rim of the Qinghai Tibet Plateau and the northwestern part of Sichuan Province in China. It is mainly inhabited by the Tibetan and Qiang ethnic groups. The prefecture covers 83,426 square kilometers and has a population of 790,000 with 13 counties under its jurisdiction. Aba is famous for its beautiful scenery, distinctive ethnic customs, and abundant tourist resources. Aba is also home to many precious and rare wildlife, including giant pandas, golden monkeys, deer, roe deer, bear, and leopards.

3 Jiuzhaigou County Situated in the depths of the mountains in Aba Tibetan and Qiang Autonomous Prefecture, is a fairyland called Jiuzhaigou Nine Village Valley, which is the home of nine Tibetan villages. Jiuzhaigou is a great introduction to China s diverse and unbelievable landscape. It is an extravaganza of natural wonders, a pure unspoiled land which contains waterfalls, alpine lakes, tranquil grasslands, snowy mountains views and Tibetan villages. Jiuzhaigou, with more than 100 lakes of varying sizes scattered through the valley, is incredibly picturesque particularly in autumn when the mountains, valleys, lakes are shrouded in autumn colors. In 1992, UNESCO entered this scenic area onto the world natural heritage list.

endangered plant and animal species, including the giant panda (Ailuropoda melanoleuca), golden monkey (Pygathrix roxellana), and the Sichuan takin (Budorcas

4 Jiuzhaigou s Ecosystems Jiuzhaigou is the last home to many endangered animals and rare plants. Covering an area of 5290km2 in northern Sichuan province, the rugged valleys and mountains of Jiuzhaigou are home to 140 bird species and a number of endangered plant and animal species, including the giant panda (Ailuropoda melanoleuca), golden monkey (Pygathrix roxellana), and the Sichuan takin (Budorcas taxicolor). Reaching an altitude of 4,800m, the area has diverse forest ecosystems. The primeval forest at Jiuzhaigou is nearly 30,000 acres and contains more than 2,500 rare plants and a dozen rare animals under state protection.

5 The Need for Eco Tourism Jiuzhaigou is now a popular tourist site in China, attracting an average of more than 7,000 tourists per day, the tourism industry here generates a large amount of revenue for Jiuzhaigou management authorities. Within Jiuzhaigou, the Zharugou Valley, with an area of 106km2, was recently opened to tourists and is focus on ecotourism. The area shares a boundary with Baihe Nature Reserve, which is an important habitat for the endangered golden monkey. A recent investigation found that mass tourism to Zharugou would not only negatively impact Zharugou, but also Baihe and other surrounding nature reserves. However, small scale ecotourism would greatly minimize the impact to the biodiversity within the new site and nearby reserves. Endangered species including the golden monkeys, musk deer (Moschus moschiferus), Tibetan brown bear (Ursus thibetanus), leopard, and takin live in and around Zharugou and Baihe.

6 WWF s Ecotourism Focus in Jiuzhaigou Jiuzhaigou is one of seven priority for WWF China s Minshan Initiative project, which aims to increase the extent and quality of forests in the Minshan Mountains for the benefit of key species, while enhancing the livelihood security of local communities. The project s recent socio economic investigation revealed that tourism development is a big challenge to biodiversity conservation in this area. WWF aims to help promote best practice on ecotourism in Jiuzhaigou. Inappropriate tourism developments and practices degrade habitats and landscapes, deplete natural resources, and generate waste and pollution. Ecotourism, as defined by the International Tourism Society, is responsible travel to natural areas that conserves the environment and sustains the well being of local people. This includes improved planning, management, marketing, and regulation and ensuring equitable distribution of benefits to all stakeholders.

7 Baihe Nature Reserve Baihe Nature Reserve, built in 1963, covers an area of 16,000 hectares adjacent to the Jiuzhaigou Valley and the Huanglong (Yellow Dragon) Scenic Area, which had been included on the list of world natural heritage spots by the United Nations Education, Science and Culture Organization (UNESCO). It is the home to 46 kinds of rare animal species including the giant panda and Sichuan Golden Monkeys. The Reserve also possesses abundant resources of other rare animals and plants, virgin forest, snow mountains, lakes, rivers and waterfalls. It is adjacent to the Zharugou project and will follow the same principles for developing ecotourism in the Zharugou area include limiting tourists to the area, limiting road construction and other impacts on the environment, increasing the participation of local communities, and providing educational opportunities for visitors to learn about nature.

8 Baihe Project Summary The Baihe (means Write River in Chinese) Nature Reserve s total project land area is hectors, including 1510 hectors of Nature Reserve and hectors of community land use. The project is constituted of the development of the Baihe Wild Life and Nature Reserve as an ecotourism project; and a unique opportunity to develop the only resort community in the Jiuzhaigou area on a 1200 mu (about 183 acres) area at the Taipinggou community at the entrance of the Reserve. The Nature Reserve s main objects of protection are the virgin forest where Sichuan golden monkey live dominantly and many other wild lives. Tourists can see Sichuan golden monkeys in a very near distance and enjoy the natural beauty of thousand year virgin forest, snowy mountains and deep valley, high peaks and Lakeland as well as rivulet and waterfalls.

9 Baihe Project Summary The project company has acquired 50 years right for development of the eco tourism and leisure tourism which will be constructed in the Reserve s experimental area (covers 10% of the total protected area) The Taipinggou Community, outside Baihe Nature Reserve, is a 1200 mu (about 183 acres) area consisting streams and woodland surrounded by high mountains. The Project Company is under contract to acquire the commercial landuse right at a preferential price of RMB 28,000 per mu to develop a cultural entertainment and vacation resort community. The plan allows the Project Company to develop a mix use resort community of about 3,500 units to support the growing tourism needs of the area.

10 Location Map Jiuzaigou Airport, which has flights from and to Chengdu, Chongqing, Xi an, Kunming and Zhangjiajie, and will open its direct flight to Beijing, Shanghai, Guangzhou and Shenzhen within A railway will be constructed to Lanzhou, Xi an etc.

11 Area Location Map

12 Beihe Nature Reserve Current Airline Routes from Chengdu Current Direct Flights to & from Jiuzhaigou Airport: Shanghai Beijing Guangzhou Shenzhen

13 Project Location Map

14 Reserve Functional Map

15 The Sichuan Golden Monkeys According to recent surveys, China currently has only 10,000 15,000 Sichuan golden monkeys living in wild. Among the three different species of monkeys in China, only the Sichuan monkey has golden yellow hair, and it also has the best chances for survival. Also known as the golden snub nosed monkey, the Sichuan Golden Monkey has beautiful reddish gold hair and bluish face with a small upturned snub nose and lappets at the side of its mouth. They inhabits high mountainous forests, reaching elevations of around 3000 meters, but they may descend to lower altitudes in winter. They live in temperate broadleaved and coniferous forests. They feed on fruit, tender branches, sprouts and leaves. As forests have been cut down, their population is declining. As one of the first classed protected animals, they are protected by the Chinese government.

16 Golden Monkey in Baihe Baihe Nature Reserve covers an area of 163 km2. Survey shows that there are over 1500 to 1800 Sichuan golden monkeys and many giant pandas living in the Reserve. Unique to China, the golden monkey, or Rhinopithecus roxellanae, is under top state protection in China. This species is endemic to southwestern China along the Tibetan plateau. The largest populations occur in Baihe Nature Reserve. More than 1,600 golden monkeys, a rare species under top state protection in China, have been found at the Baihe Nature Reserve. They live in an area covering five square kilometers at the center of the nature reserve. They are divided into four to six tribes. The nature reserve has set up two monkey protection centers, and another one is being built.

17 Reserve Wildlife Distribution

18 Reserve Tourism Area Map

19 Project Development Progress Project company has signed 50 year Contract and Agreement on cooperative development of the Sichuan Baihe Nature Reserve with Jiuzhaigou County government and the administration office of Sichuan Baihe Nature Reserve, respectively and acquired the sole right to develop the project; Project company has conducted land acquisition, disbursement, and relocation of residents of the Taipinggou road, total area is 130 mu; Project company constructed road (Taipinggou Road) from Baihegou to Caimadi (the proposed entrance to the natural reserve), 7.26 km long. Available for motor vehicles passage; Concluded an agreement with Jiuzhaigou Bureau of Management on cooperation intent regarding tourists distribution.

20 Project Planning & Approvals Sichuan Zhonglin Environment and Art Design Institute co., Ltd. and Sichuan Urban and Rural Development Design Institute were entrusted by project company for planning documents and reports, including: Master plan of eco tourism, Community construction controlling detailed plan, EIA, surveying and mapping, Mild biodiversity impact investigation report, Scenic sights detailed plan, Detailed provisions for community, Fire and ambulance highway measurement plan for scenic sights and Feasibility study report; Master plan of eco tourism has been approved by Sichuan Forestry Office. ( 川林函 [2007]51 号 ); Mild biodiversity impact investigation report, EIA report, etc. have been approved by the expert assessment from Sichuan Forestry Office and Environmental Protection Bureau;

21 Resort Community Development Site (Phase Two) Nature Reserve Development Area (Phase One)

22 Baihe Wildlife Nature Reserve Phase One Development

23 Current Reserve Status Map

24 Land Use Plan

25 Master Plan Map

26 Baihe Nature Wildlife Reserve Caimadi Entrance Rendering

27 Caimadi Current Conditions

28 Caimadi Site Plan

29 Caimadi Landscaping Plan

30 Caimadi Electric & Telecom Engineering Plan

31 Caimadi Water & Sewer Plan

32 Outpost Cottages

33 Lower Outpost Electric & Telecom Plan

34 Upper Outpost Electric & Telecom Plan

35 Lower Outpost Water & Sewer

36 Upper Outpost Water & Sewer

37 Scenic Spots Map

38 Golden Monkey Viewing Spots

39 Scenic Spots Renderings

40 Environmental Protection Planning Map

41 Roadway Planning Map

42 Walking Trail Construction

43 Electricity & Telecom Map

44 Phase One Financial Summary Phase one of the project is to develop infrastructures for the opening of the Baihe Wildlife Nature Reserve by end of April, 2008 in time for the Labor Holiday and the Summer Olympic Games in China. The Baihe Wild Life Reserve s total infrastructure and development costs is estimated at around $15 USD. Tourist traffic for the Jiuzhaigou Reserve for 2006 was 2.3 million with a ticket price of RMB310 per visitor. There is over 3 million tourists visiting Jiuzhaigou in Our estimated annual tourist arrival to our Reserve is 1.25 million visitors, with entry ticket priced at RMB180 per person, the entrance fee alone will be RMB225 million, of which, the local authorities will be entitled to 30% of the entrance fee or RMB67.5 million. Therefore, the admission for the reserve will bring in RMB157.5 million or $21 million USD for the project in the first year!

45 Taipinggou Resort Community Phase Two Development

46 Tourism Market Overview In 2006, according to the governmental statistics of Sichuan Travel Bureau, the tourist arrival to Jiuzhaigou has reached 2.31 million per annum and the revenue from the entrance ticket collection is RMB 420 million. That is an increment of 31.9% from the previous year. While Leisure Travel represents 62% of the tourism market worldwide; it is only begin to gain popularity in China and it is the fastest growing market segment in China. The Baihe eco tourism area is part of the Jiuzhaigou Tourism Destination. Its virgin forest, wild animals and plant resources represented by golden monkey complements with the Jiuzhaigou scenic spots. Its leisure and vacation facilities can make up for the severe insufficiency of entertainment and hospitality infrastructure in Jiuzhaigou, and it can prolong tourism stay for the area.

47 Resort Community Development Summary Seven hotels with about 3,500 rooms total Retail and Commercial area Renovation of the original four tribal villages Ski resort development with ski lifts and paths Winter Olympic Training Center Camp grounds and Amenities Mountain Cottages and Cabanas Wild Life Exhibition Center Destination Activities Welcome Center and Information Center Community Center and Support services Convention Center & Hotel Performing Arts and Cultural Center Health Clinics and Animal Protection Center Tibetan and Chinese Natural Medicine Clinic & Healing Spas Schools and Education facilities for Tibetan & Qiang Culture

6 12 15 10 1 2 9 8 7 18 11 5 4 16 3 13 14 17 Resort Community Map 1. Four Star Hotel 2. Family Suite Hotel 3. Ski Resort 4. Ski Lodges & Cabins 5. Convention Hotel 6.

48 Resort Community Map 1. Four Star Hotel 2. Family Suite Hotel 3. Ski Resort 4. Ski Lodges & Cabins 5. Convention Hotel 6. Natural Healing Medi Spa & Resort 7. Tibetan Hotel 8. Qiang Hotel 9. Commercial & Entertainment Center 10. Tribal Village One 11. Tribal Village Two 12. Tribal Village Three 13. Tribal Village Four 14. Information & Activity Center 15. Welcome Center 16. Winter Olympic Training Center 17. White Water Rafting 18. Performance Arts Center

49 Community Facilities Summary Information and Activities Center Situated at the entrance of the community provides information and supporting services for tourists and tourism industry. Outdoor Sports Activities Center provide equipments and trainings for an array of outdoor activities including white water rafting, mountain climbing, etc. Welcome Center Situated by the ticket office at the entrance of the Bahei Nature Reserve providing equipment rentals and shops to restaurants and emergency services for all reserve tourists. Town Center It is the Resort Community s town center for business and entertainment including: Wild Life Protection & Exhibition Center Cultural Performing Arts Center Tribal Villages The Resort Community incorporates the original four tribal villages in the area into its community planning and let the different ethic tribes live in their traditional lifestyle. Winter Olympic Training Center Provide training facilities for Winter Olympic Sports.

Hospitality Facilities Summary Four Star Franchise Hotel A Four Star standard 500 room international franchise hotel located at the entrance to the resort community on about

It will be the first and only all suite family style resort in the area with average 2 bedroom 2 baths family suites.

51 Hospitality Facilities Summary Four Star Franchise Hotel A Four Star standard 500 room international franchise hotel located at the entrance to the resort community on about 10 acres. All Suite Family Resort A 500 unit all suite family resort located within the resort village on about 15 acres. It will be the first and only all suite family style resort in the area with average 2 bedroom 2 baths family suites. Ski Resort Hotel & Cabanas A Five Star 800 Room Ski Resort Hotel located next to the ski area and the Winter Olympic Training Center. 200 Private Cabanas along the hillside close by the ski resort and its activity centers. It enjoys the management and amenities of the Ski Resort.

Hospitality Facilities Summary Natural Medicine Resort and Spa An exclusive Chinese and Tibetan Medical Spa and Resort

300 rooms situated in a sacred valley on about 20 acres.

52 Hospitality Facilities Summary Natural Medicine Resort and Spa An exclusive Chinese and Tibetan Medical Spa and Resort consisting of a 60,000 square feet natural healing spa and clinic using traditional herbal medicine and remedies; plus 300 rooms situated in a sacred valley on about 20 acres. Convention Center and Hotel A Five star full service Convention hotel with I,000 rooms on a plateau of a hill on 30 acres. The International Convention Center will be located on the tip of the plateau with magnificent views of the entire community. Themed Boutique Hotels Two boutique hotel of about 100 rooms each in the Tibetan Village and the Qiang Village. Each represent the unique culture of Tibetan and Qiang.

54 Phase Two Financial Summary The 1200 mu (183 acres) has been contracted to be acquired by the developer at a preferential price of RMB 28,000 per mu, which are valued at RMB 250,000 per mu. Therefore, the developer is able to acquire a parcel of land that is valued at about $40 million USD at a cost of less than $5 million USD. Total of all Infrastructure, relocation and improvements on tribal villages, information and support centers, community amenities and other costs for the community is estimated at USD $38 million. Development of the seven resorts and hotels including the cottages are at estimated USD $250 million. The estimated IRR generated by the project are over 100%.

55 For more information Please contact:

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