Gujarat Ecology Commission. Pre-feasibility Assessment of Marine Research, Conservation & Information Centre. Final Pre-Feasibility Report

Transcription

1 Pre-feasibility Assessment of Marine Research, Conservation & Information Centre Final Pre-Feasibility Report This report contains 173 pages.doc 2009 KPMG Advisory Services Private Limited, an Indian private limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

2 Disclaimer The report contains KPMG s analysis of secondary sources of published information and incorporates the inputs gathered through meetings with industry sources. Information obtained from the public domain has not been verified for authenticity. Our analysis is based on the prevailing market conditions and regulatory environment and any change may impact the outcome of our review. In performing this engagement and preparing this Report, KPMG: has used and relied solely on data and material gathered through research reports as well as discussions with personnel within KPMG and our networks within the industry has not independently investigated or verified such Information. assumes no responsibility for the accuracy and completeness of the Information and will not be held liable for it under any circumstances. i

3 Contents 1 Executive Summary iv 2 Objectives of this assignment 1 3 Scope of Work 2 4 Approach and Methodology Overall A&M Phase-wise details Phase Phase Phase Phase Phase Key Timelines and Deliverables 9 5 Findings Understanding Marine Facilities Key Concepts for a Marine Facility Features of a Marine Facility Defining the Concept for a Marine Facility Identified Concepts for a Marine Facility Selection of suitable Concept for the proposed MRCI Centre Framework for selection of Concept Selection of a suitable Concept Location Assessment Identifying the potential locations Framework for assessment of locations Evaluation of locations Selection of suitable location for the proposed MRCI Centre Environmental/Ecological Assessment Objective Key Considerations Technological Assessment Objective Key Technical Considerations Regulatory Assessment Objective Relevant Acts and corresponding Rules and Regulations Summary of regulatory approvals, challenges and mitigation International Accreditations 61 ii

4 5.8.1 World Association of Zoos and Aquariums (WAZA) Benefits to the MRCI Centre Challenges for the MRCI Centre Primary Survey Objective Implementation of the survey Methodology Findings of survey with end customers Response from Schools Response from the Tour Operators Finalized Concept for the MRCI Centre Features Positioning Socio-Economic Benefits Ecological Benefits Social and economic benefits Financial Feasibility Key Assumptions for the Financial Model Key Financial Results Key Scenarios Public Private Partnership for the MRCI Centre Types of PPP arrangements Project Risks and Mitigation PPP arrangement for the MRCI Centre Implementation Plan Details of Key Steps Time schedule Appendices Questionnaires for primary survey Questionnaire for primary survey in Dwarka Questionnaire for primary survey in Ahmedabad/ Vadodara/ Saputara Questionaire for Primary Schools Questionnaire for primary survey with Tour Operators Concept Cards Concept Overview Card Features Card Meetings Held Meetings facilitated by GEC Others 165 iii

5 1 Executive Summary (GEC) intends to establish an MRCI Centre. In relation to this; KPMG is assisting (GEC) in assessing the preliminary feasibility for setting up an MRCI Centre, with private sector participation. As part of this project, a high level assessment of potential interest for the MRCI Centre has been carried out along with detailed financial, ecological, technical and regulatory feasibility assessment. In addition, suitable location for the project has also been identified. Concept Selection Various marine facilities across the world have been studied to gain an in-depth understanding of the various features defining the concept of a marine facility. Four Key Concepts have been identified across the world. Each of the Key Concepts has been assessed for suitability to GEC based on sync with GEC objectives and various enabling factors. Evaluation across the identified parameters revealed the difference across suitability levels for each Key Concept. The most suitable concept for GEC has been identified as Small sized Marine Facility. Location Identification Five locations namely Dwarka, Shivrajpur, Okha, Positra and Narara have been identified across the Gulf of Kutch as potential locations for setting up the MRCI Centre. Each of the locations was assessed for suitability for setting up the MRCI Centre based on four parameters - importance as a tourist location, connectivity infrastructure, accommodation infrastructure and future prospects. Evaluation of the locations across the identified parameters has shown that Dwarka is the most suitable location. Ecological, Technical and Regulatory Feasibility Assessment The key ecological considerations for setting up the MRCI Centre have been identified based on primary interactions during the field visit, discussions with international consultants and through secondary research. These include bio-diversity for the MRCI Centre, water quality required to be maintained at the MRCI Centre, selection of flora and fauna for each tank, sources for obtaining the flora and fauna, transportation of flora and fauna to the MRCI Centre site and replicating the natural habitat. These have been analyzed in the context of the identified location for GEC. Key technical considerations have been identified for setting up an MRCI Centre based on the interactions with technical experts and aquarium equipment contractors - national as well as international and secondary research. These considerations include acrylic panels, life support systems, interior and exterior decoration and support infrastructure. Each of these has been studied to understand the key requirements for setting up a successful and efficient MRCI centre. Key regulatory considerations for setting up the MRCI Centre have been studied based on which a list of clearances required was identified. Also, key regulatory risks have been identified including difficulty in meeting laid out norms and standards, ambiguity in iv

6 applicability of regulations and difficulty in getting the approvals. These however can be mitigated by partnering with international contractors with established credentials and involving relevant authorities initially itself to obtain their buy-in. Demand Assessment, Pricing and Final Concept for the MRCI centre A primary market survey was commissioned to Market Search India Pvt. Ltd to understand the high level potential interest for the MRCI centre in the city of Dwarka. A series of face-to-face interviews with the 240 target respondents has been conducted guided by detailed questionnaires. Key analysis drawn from the survey results were the high level demand assessment, price points and favorable features for the MRCI centre. In addition to interviewing respondents, school authorities, tour operators and bus operators were interviewed to understand the interest levels and travel behavior of students and tourists respectively. Based on the past behavior and intention to visit the MRCI centre, an estimate for footfall for the first year of operation has been arrived at as 3,87,284 and the favorable total package price for adults as INR 225. In addition, a final concept has been drawn for the MRCI centre. The MRCI centre would have a walkthrough tunnel with 180 degree view, a dolphin show, a restaurant, game zone and a souvenir/ gift shop in the facility. It would also have educational activities targeted at students of grade 5 and above. In addition to this, the MRCI centre would involve conservation and research activities. Key social, economic and ecological benefits The MRCI Centre would be contributing towards the social and economic development through education, employment and infotainment and also towards and ecological development of the area and its people through improvement in marine life awareness, conservation and research activities. Financial Feasibility Assessment A high level Financial Model has been developed for the MRCI Centre with revenue, operating expenses and profit projections over the next thirty years. The key inputs to the financial model have been based on interactions with national and international technical experts and aquarium equipment contractors as well as primary survey and secondary research. The revenue increases from INR 6.54 Crore in FY13 to INR Crore in FY 42. CAGR for the first five years is 16%. This is primarily driven by increase in footfalls over the initial five years of operation. Revenue grows in a step wise manner because of the step wise growth in ticket price. Opex increases from INR 5 Crore to INR 83.4 Crore in FY42. CAGR for the first three years is 13%. This is primarily driven by high increase in salary expenses as well as expenses on marketing activities. v

7 The total project cost at the end of the construction period will be INR Crore. Out of this the private party contribution will be INR Crore. It has been assumed that the GoG funding is 30 Crores. The private player will fund INR 20.9 Crore of the first year project contribution. INR crore of this is towards Capex, interest during construction on loan and funding the operating losses. INR 15.6 is through long term debt and INR 5.3 is through equity. The profit after taxes turns positive from FY16. For a footfall of 3,87,284, with a blended price of INR and operating expenses of INR 5 crore, the equity IRR is 18.1%. Public Private Partnership For a project of such type and scale a public private partnership (PPP) arrangement would be favorable for GEC. Current and upcoming marine facility PPP arrangement show that a Design- Build-Finance-Operate-Transfer (DBFOT) PPP arrangement is favorable for this project. The financing arrangements and operating parameters need to be developed in order to adequately address the various project risks. Implementation Plan Key steps have been identified for the MRCI centre that defines the way forward. These important steps include 1. Obtaining Agreement on the Pre-feasibility report from key stakeholders, 2. Commissioning development of Detailed Feasibility Report 3. Finalizing and obtaining Agreement on the Detailed Feasibility Report from key stakeholders 4. Obtaining regulatory approvals and procuring the required land 5. Finalizing a Private Partner 6. Signing the Concession Agreement 7. Starting Program Management of the development and construction period vi

8 2 Objectives of this assignment (GEC) intends to establish a Marine Research, Conservation and Information Centre ( MRCI Centre ) and is also evaluating participation of private sector in the same. In relation to this, KPMG is assisting (GEC) in assessing the preliminary feasibility for setting up an MRCI Centre, with private sector participation. ( the assignment ). The key objectives of this assignment are: To assess the high level potential interest for an MRCI Centre To assess the feasibility - ecological, regulatory, infrastructural and financial To identify the proposed project location between Dwarka to Jamnagar City 1

9 3 Scope of Work KPMG s scope of work, as defined in the Terms of Reference, covers the following tasks: Task A: Identification of Key Concepts for MRCI Centre Task B: Selection of a suitable Concept for the proposed MRCI Centre Task C: Identification of the proposed project location along the Gulf of Kutch Task D: Primary survey with end users to evaluate consumer interests and pricing estimates for the selected Concept Task E: Assessment of the environmental, technological and regulatory feasibility for the selected Concept Task F: Development of the high-level project concept Task G: Evaluation of the financial attractiveness for the project Task H: Development of a proposal for private sector investment in the project Task I: Development of an implementation plan 2

10 4 Approach and Methodology 4.1 Overall A&M We followed a structured approach to conduct this pre-feasibility study. Details are provided in the schematic below: PHASE Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Project planning A Identification of key concepts D Primary survey with end users G Evaluation of financial attractiveness H Development of proposal for PPP TASKS Information requirements B Selection of suitable concept E Assessment of envir., tech. & reg feasibility I Development of implementation plan C Identification of project location F Development of high-level project concept Figure 1 Overall A&M 4.2 Phase-wise details The various phases have been detailed below in terms of key tasks and their corresponding activities, outcomes and timelines Phase 0 The objective of this phase is to initiate the assignment and gather all the data requirements. The key tasks performed under this phase are as below: Develop Project Plan outlining the key activities, timelines and deliverables Prepare Information Requirement List outlining key data points to be collected through primary research 3

11 4.2.2 Phase Task A: Identification of Key Concepts for a Marine Facility The objective of this task is to study the various marine facilities across the world to gain an indepth understanding of the various concepts defining a marine facility. Key Activities Key Outcomes Timelines Conduct secondary research on international Marine Facilities to understand the concept, best practices, key success factors etc Conduct secondary research on planned Indian Marine Facilities to understand the concept, positioning etc Identify high-level concepts for a Marine Facility Key Concepts for a Marine Facility Week 1 to Week Task B: Selection of a suitable Concept for the proposed MRCI Centre The objective of this task is to select the most suitable concept for the MRCI Centre out of the list of identified Marine Facility concepts based on certain parameters like vision of GEC for the MRCI Centre, investment outlook etc Key Activities Key Outcomes Timelines Develop a framework for selection of a suitable Key Concept for the MRCI Centre Implement the framework to assess the various Key Concepts Conduct discussions with the client to select a suitable Concept for the MRCI Centre Framework to test suitability of Concept Suitable concept for the proposed MRCI Centre Week Task C: Identification of the proposed project location along the Gulf of Kutch The objective of this task is to identify the most suitable location out of the various possible locations along the Gulf of Kutch for setting up the MRCI Centre. Key Activities Key Outcomes Timelines Identify the various locations for setting up the MRCI Centre along the Gulf based on interaction with GEC Framework to test suitability of location Week 3 4

12 Key Activities Key Outcomes Timelines Develop a framework for assessing the suitability of each location across parameters like importance of location as a tourist destination, flora/fauna availability etc Implement the framework to assess the various locations Conduct discussions with the client to select a suitable location for the MRCI Centre Suitable location for the proposed MRCI Centre Key Deliverables Inception Report Phase Task D: Primary survey with end users The objective of this task is to commission a primary survey with end consumers to understand and evaluate consumer interests towards the Concept and pricing estimates for the selected Concept Key Activities Key Outcomes Timelines Conduct research to understand the demographic profile, behavioral profile, existing competition etc around the project location Identify the target customer profile for the MRCI Centre Develop Questionnaire for the primary survey Commission the survey though a marketing agency Questionnaire for the primary survey Primary survey Week 4 to Week Task E: Assessment of the environmental, technological and regulatory feasibility The objective of this task is to understand the various environmental/ecological and technological considerations for the development of the MRCI Centre around the project location. Also identify key legal and regulatory requirements as well as infrastructural requirements for the MRCI Centre. 5

13 Key Activities Key Outcomes Timelines Conduct primary and secondary research to understand the ecological considerations for setting up the MRCI Centre around the project location Conduct primary and secondary research to understand the technological considerations for setting up the MRCI Centre around the project location Conduct primary and secondary research to understand the regulatory considerations for setting up the MRCI Centre around the project location Develop a list of clearances required Conduct primary and secondary research to understand the infrastructural considerations for setting up the MRCI Centre around the project location Identify the existing infrastructural connectivity Outline the infrastructural improvements required for the MRCI Centre Ecological considerations for the MRCI Centre Technological considerations for the MRCI Centre Regulatory and legal clearances required for the MRCI Centre Existing infrastructure at the proposed location and improvements required Week 4 to Week Task F: Development of the high-level project concept The objective of this task is to develop the high-level concept for the MRCI Centre by improvising the initial concept based on the results of the primary survey as well as ecological, technological and regulatory feasibility assessment. Key Activities Key Outcomes Timelines Analyse the results of the primary survey to define the concept Develop Mid-Term Draft Report outlining the key concept Assess the key risks associated with the MRCI Centre Revised Key concept Mid-Term Draft Report and Workshop to discuss the report Week 6 6

14 Key Deliverables Mid Term Draft Report outlining the key concept Phase Task G: Evaluation of the financial attractiveness for the project The objective of this task is to evaluate the financial attractiveness of the project and viability gap (if any) for the project Key Activities Key Outcomes Timelines Develop high level financials for 7 years outlining: Demand projections Revenue projections based on demand and pricing Operating Expenses Capital Expenses Income and Cash Flow Assess the financial viability of the MRCI Centre Identify the viability gap funding, if any Revised Key concept High-level financials for 7 year period Viability gap funding, if any Week Phase Task H: Development of a proposal for private sector investment in the project The objective of this task is to propose a PPP arrangement for the implementation of the MRCI Centre project Key Activities Key Outcomes Timelines Identify the requirement of PPP Identify the key risk sharing principles PPP details arrangement Week 8 7

15 Key Activities Key Outcomes Timelines Identify the arrangement details with respect to financing, contracting, key risks etc Task I: Development of an implementation plan The objective of this task is to develop a high-level implementation plan outlining key milestones and timelines for implementation of the proposed project Key Activities Key Outcomes Timelines Develop an implementation plan with key milestones and timelines Develop Draft Report outlining the financial projections, PPP details and implementation plan Implementation Plan Draft Report and Workshop to discuss the report Week Key Deliverables Draft Report The feedback received during the workshop would be incorporated in the Draft Report and the Final Report would be submitted in Week 9. 8

16 4.3 Key Timelines and Deliverables Phase 0 Project Initiation Information Requirments TIMELINES Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Phase 1 Task A: Identification of Key Concepts for an MRCI Centre Task B: Selection of a suitable Concept for the proposed GEC MRCI Centre Task C: Identification of the proposed project location along the Gulf of Kutch Phase 2 Task D: Primary survey with end users to evaluate consumer interests and pricing estimates for the selected Concept Task E: Assessment of the environmental, technological and regulatory feasibility for the selected Concept Task F: Development of the high-level project concept Phase 3 Task G: Evaluation of the financial attractiveness for the project Phase 4 Task H: Development of a proposal for private sector investment in the project Task I: Development of an implementation plan Deliverables Week 3 - Inception Report Week 6 - Mid-Term Draft Report Week 8 - Draft Report Figure 2 Key Timelines and Deliverables 9

17 5 Findings 5.1 Understanding Marine Facilities Aquariums across the world have been classified into following generations: Type of Aquarium Details Year of set up 1 st generation Fish tank with one side glass nd generation Systematically arranged wall tanks rd generation Large window giving real sea life experience th generation Walk through tunnel having 180 view th generation Walk through tunnel having 360 view G 4G 5G Figure 3 3rd, 4th and 5th generation marine facilities 3 rd to 5 th generation aquariums are large marine facilities which present an ocean habitat with marine animals, especially large ocean dwellers. They are established mainly for the following purposes: Education Conservation Research Functions performed by marine facilities Infotainment Figure 4 Functions performed by marine facilities 10

18 5.2 Key Concepts for a Marine Facility Features of a Marine Facility A Marine facility has several features which allow it to perform its various functions. These are as listed below. EDUCATION, RESEARCH, CONSERVATION (A) Educational programs for kids Research contributing to better understanding of the marine life Conservation of marine life INFOTAINMENT FEATURES (B=X+Y+Z) Core (X) Add-ons (Y) Filler (Z) 3 rd Generation Aquarium: Large window giving real sea life experience 4 th generation: Walk through tunnel having 180 view 5 th generation: Walk through tunnel having 360 view Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp 4D theatre Restaurant Gift shops Ball room/ Marriage hall Game zone Defining the Concept for a Marine Facility A combination of features from each category of education, research and conservation (A) as well as infotainment (B=X+Y+Z) would define the Concept for a Marine Facility (A+B). Educational programs for kids Research contributing to better understanding of the marine life Conservation of marine life Illustrative EDUCATION, RESEARCH, CONSERVATION (A) INFOTAINMENT FEATURES (B=X+Y+Z) Core (X) Add-ons (Y) Filler (Z) 3 rd Generation Aquarium: Large window giving real sea life experience 4 th generation: Walk through tunnel having 180 view 5 th generation: Walk through tunnel having 360 view Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp 4D theatre Restaurant Gift shops Ball room/ Marriage hall Game zone Figure 5 Illustrative concept of a marine facility 11

19 Illustrative EDUCATION, RESEARCH, CONSERVATION (A) Educational programs for kids Research contributing to better understanding of the marine life Conservation of marine life INFOTAINMENT FEATURES (B=X+Y+Z) Core (X) Add-ons (Y) Filler (Z) 3 rd Generation Aquarium: Large window giving real sea life experience 4 th generation: Walk through tunnel having 180 view 5 th generation: Walk through tunnel having 360 view Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp 4D theatre Restaurant Gift shops Ball room/ Marriage hall Game zone Figure 6 Illustrative concept of a marine facility Identified Concepts for a Marine Facility Concept A: Very Large Marine Facility POSITIONING: Infotainment, Education, Research and Conservation form an integral part of this marine facility FEATURES: Infotainment Core (X) Table 1 Infotainment features of a very large marine facility Add-ons (Y) Filler (Z) Walk through tunnel - 4th or 5th generation In addition, large 3rd generation aquariums are used for display of certain species (sharks, beluga whales etc) Usually feature a variety of additional species apart from the main aquarium Have almost all of the below features Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp etc Several filler activities are added to serve as additional sources of revenue 4D theatre Restaurant Gift shops Ball room/ Marriage hall Game zone Education, Conservation, Research 12

20 These are an important part of these projects and they constitute the following activities. Programs for educating children - special movie screening for children, lecture series, Interactive sessions etc Research - contributing to the understanding of the underwater world etc Conservation - breeding and preserving endangered species SIZE AND FINANCIALS 1 : Table 2 Size and financials of a very large marine facility Project Cost (INR Cr) > 500 No of Species ~ 500 Footfall (MM/yr) > 2 Entry Fee (INR) Standard: ~ 750 Additional charges for using non-core features STRENGTHS AND WEAKNESSES: Table 3 Strengths and weaknesses of a very large marine facility Strengths Attractive as well as educative Create good identity mark for the city Scaling up by adding newer features and displays is easier, which helps to stay ahead of competition Plays a vital role in marine animal research and conservation, thus attract associations and funds from different research institutions Weaknesses Takes a longer time (typically around 10 years) to achieve break even Limited expertise in setting up such a huge facility leading to increased risk of time and cost over runs Footfalls need to be maintained consistently for meeting the high ongoing expenses (Operation and maintenance) Higher technical expertise required to run the facility of this size and scale EXAMPLE: Georgia Aquarium, Atlanta, Georgia, USA (Started in 2005) 1 KPMG Analysis 13

21 Concept A Case Study 1: Georgia Aquarium, Atlanta 2 Positioning World-class facility that provides infotainment, education, research and conservation of marine life Year of start 2005 Features Core (X) 4 th Generation Aquarium Large 3rd Generation Aquarium for beluga whales (left) and sharks (Right) Illustrative Touch pools Features Add-ons (Y) Penguins on display Illustrative Features Fillers (Z) The ball room with more than 1000 seating capacity Features two spectacular aquarium viewing windows into aquatic habitats Catering service A multi cuisine restaurant Café Aquaria opens daily one hour after the Aquarium opens and closes one hour prior to closing Two gift shops are present Aquarium apparel, collectibles, toys, etc specially designed for undersea enthusiasts are sold 4D Theater employs interactive seats and unique special effects Holds up to 250 guests per show

22 Education Education, Conservation and Research Conservation and Research Various education programs structured according to the student grade Programs available from preschool to grade 12 Aims to promote an entertaining learning experience and to teach aquatic bio-diversity and conservation. Conducts research to improve husbandry methods, develop innovative and exciting new exhibits, contribute to the understanding of the underwater world and apply new discoveries to the conservation of aquatic life Currently working in collaboration with various universities and scientific agencies Size and Financials Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) ~ ~ 2.5 ~ 780 Target Segments Families and children Youth interested in marine bio-diversity and research Misc. Promotion Advertising and marketing agreements signed with six big companies for sponsorships Group discounts, Annual pass facility to attract bulk and repeat customers Future Plans Plans to introduce dolphins by 2010 (a USD 110 million expansion) Concept B: Large Marine Facility POSITIONING: Focus on at least two of education, conservation, research and infotainment. Others may be present. FEATURES: Infotainment Core (X) Table 4 Infotainment features of a large marine facility Add-ons (Y) Filler (Z) A walk through tunnel - 4th or 5th generation And/or a large 3rd generation aquarium for displaying of certain species (sharks, beluga whales etc) Limited number of additional features amongst Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp etc Several filler activities are added to provide additional sources of revenue like 4D theatre Restaurant Gift shops Ball room/ Marriage hall Game zone Education, Conservation, Research: Education, Conservation, Research are observed in only some of such facilities 15

23 Educational programs like field trips for children, interactive activities (dolphins, seals etc) and sleep over programs Research projects undertaken are focused on conservation of biodiversity SIZE AND FINANCIALS 3 : Table 5 Size and financials of a large marine facility Project Cost (INR Cr) No of Species ~ 300 Footfall (MM/yr) Entry Fee (INR) Standard: ~ 700 Additional charges for using non-core features STRENGTHS AND WEAKNESSES: Table 6 Strengths and weaknesses of a large marine facility Strengths Offers a complete infotainment package on a large scale Can serve as a good infotainment identity mark for the city Weaknesses Limited scope of research than Very Large marine facilities as they keep lower number of species/specimens Very Large marine facility can easily eat up revenues if present in the same city/surrounding area EXAMPLES: Epson Aqua Stadium, Tokyo, Japan (Started in 2005), Lisbon Oceanarium, Portugal (Started in 1998) 3 KPMG Analysis 16

24 Concept B Case Study 1: Epson Aqua Stadium, Tokyo, Japan 4 Positioning All-round family infotainment facility Year of start 2005 Features Core (X) 4 th Generation Aquarium About 20,000 organisms of 300 different species Tanks of tropical fish, sharks, ray submarines are special attractions Features Add-ons (Y) Dolphin show in the pool with 1350 seats Sea lion show in the pool with 393 seats Other add-ons available are Penguins Coral reefs Life in icy seas Illustrative Features Fillers (Z) Theme restaurant Roller coaster rides Virtual ride theatre Concert hall Souvenir and gift shop Education, Conservation and Research No education, research and conservation related activities present. This facility is for infotainment purposes Size and Financials Project Cost (INR Cr) No of Species Footfall (mn/yr) Entry Fee (INR) ~ 900 (including dolphin pool, sea lion pool) Misc. Promotion Huge, glossy advertisement outside the Prince hotel, in the middle of shopping plaza Target Segments Families, kids Leisure tourists (is attached to the prince hotel)

25 Concept B Case Study 2: Planned in Kochi, India 5 Positioning Asia's largest and most technically advanced marine facility providing infotainment to visitors and research facilities for marine life Features Core (X) 250 meters long, 2.4 meters wide transparent curved acrylic tunnel 360 degree view of the water world Tunnel will have a slow moving walkway, so also a fixed platform inside the tunnel for the visitors to step aside if they wish to view a particular species of their interest in detail Add-ons (Y) Dolphinarium and aquarium to showcase dolphins General aquarium to showcase different variety of fish from all over the world Micro-world museum to display small creatures Marine museum to display marine animals and plants Ponds for tortoises, sharks Special zones for coral reefs Filler (Z) World standard convention centre for holding international marine conferences and seminars related to marine life studies, with a seating capacity for 1000 people Space for events Amphitheatre for sound and light shows Books and library Musical fountain Food court Research 10 acres have been allotted to the Centre for Marine Living Resources and Ecology to shift its research activities A marine biological research centre will also be set up so that researchers can study marine life and habits at a closer level Tie up with Indian Universities in order to undertake marine research projects in collaboration with similar centres abroad and facilitate local research centre with opportunities to do live research projects in Marine biology and biotechnology Marine research is expected to get a big boost as breeding, feeding and observing of the marine life will help in a strong research and development through this built-in study centre. Size and Financials Project Cost (INR Cr) ~ 350 Area (Acre) ~ 50 Shareholding Model of Investment Public Private Partnership model Private parties 51% Government of Kerala, Ministry of Earth Science and GoI 49%

26 Status and Way Forward Current Status The required land for the project (~50 acres) has already been acquired and surveying has also been completed Feasibility assessment is under study by the Kerala State Industrial Infrastructure Development Corporation Way Forward Post the feasibility assessment study, global tenders would be called to appoint a consultancy for the project Plan to start the construction work by this year end Expected to complete the project by the end of Concept C: Medium Sized Marine Facility POSITIONING: Focus on at least two of education, conservation, research and infotainment. Others may be present. FEATURES: Infotainment Core (X) Table 7 Infotainment features of a medium sized marine facility Add-ons (Y) Filler (Z) Either a walk through tunnel - 4th or 5th generation And/or 3rd generation aquariums Usually feature one or two of the additional features as star attractions Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp etc Few filler activities are added to serve as additional sources of revenue. Commonly observed ones are Restaurant/ cafes Gift shops Game zone Education, Conservation, Research: Education initiatives such as sleep over programs, field trip, marine life related workshops typically are to attract school groups Conservation and breeding practices are also prevalent among few medium sized Marine Facilities 19

27 SIZE AND FINANCIALS 6 : Table 8 Size and financials of a medium sized marine facility Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) Standard: Additional charges for using non-core features STRENGTHS AND WEAKNESSES: Table 9 Strengths and weaknesses of a medium sized marine facility Strengths Serves as a good infotainment destination for the city Faster break even due to lower initial investment and high footfalls due to presence of star attractions Weaknesses Limited scope for research activities as they keep only attractive species Larger marine facilities can easily eat up revenues if present in the same city/surrounding area EXAMPLES: Underwater world, Sentosa, Singapore (Started in 1991), Busan Aquarium, Korea (Started in 2001), Shanghai ocean world, China (Started in 2002), Melbourne aquarium, Australia Concept C Case Study 1: Busan Aquarium, Korea 7 6 KPMG Analysis

28 Positioning To provide an educational and entertaining experience to visitors Year of start 2001 Illustrative Features Core (X) Underwater tunnel that extend over 80 meters in length. Large 3rd Generation Aquarium Main tank houses sharks and rays and thousands of fish in 3,000 ton water A total of 35,000 kinds of fish, algae, reptiles, and amphibians belonging to about 250 species are on display Features Add-ons (Y) 40 separate exhibits which include penguins, otter, piranha, sea jellies Notable attractions include electric eels and deep coral reefs, 2.5-meter- long shark and giant turtle Star Attractions: Grey nurse shark - the largest gray nurse shark captive colony in Korea Jackass penguin - the largest jackass penguin colony in captivity in Korea Chinese giant salamander - the first appearance to the public in Korea Touch tank for a close up look at a variety of sea creatures Boat trip in the largest aquarium including fish feeding Illustrative Features Fillers (Z) Apart from these, it also has Resting place and Outdoor Park Special attraction Simulator Shark dives Education The Ocean School provides service to schools who visit the Aquarium A trained education officer with the school group throughout the visit Student worksheets to capture their learning Program for different grades E.g. kinder program - helps children learn about aquatic animals through songs, games, play and dance E.g. high school- helps learn classification, behaviors etc 21

29 Size and Financials Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) ~ ~ 1 ~ 550 Misc. Development Details Designed by a combined Australian and Korean team led by Aquaria 21, company incorporated by Oceanic Group, specialist in marine technology Two years of construction Developed on a BOT basis with Aquaria 21 as the sole investor As per the agreement, Aquaria 21 will operate the aquarium for a period of 20 years with an option for another 10 years before donating it back Target Segments Visitors from all over Korea and the world Promotion Group discounts to attract bulk customers Yearly marketing (and supporting six monthly) action plans New and innovative campaigns are developed around key events, festivals and new exhibits Concept C Case Study 2: Underwater world, Sentosa, Singapore 8 Positioning To provide an entertaining and educational experience to visitors Year of start 1991 Features Core (X) 4 th Generation Aquarium Over 2,500 marine animals of 250 species 83 metre long travelator that moves visitors along a submerged 6.0 mm thick acrylic-windowed tunnel from which they can look at an array of marine life including coral reef, string rays, moray eels, turtles, sharks, and other fishes Features Add-ons (Y) Dolphin Lagoon - several "Meet-the-Dolphins" sessions are held daily to allow visitors to enter the waist-deep pool and interact closely with the dolphins Various Dive & Swim Programs with dugongs, seals etc Dolphin lagoon Unique activity at Fish Reflexology with gentle feet nibbling session done by a school of spa fish 8 Haw Par Annual reports 22

30 Features Fillers (Z) Two souvenir shops with gifts ranging from sea animals backpacks, mugs, exclusively designed T-shirts, huggable soft toys to educational marine life guide 2-3 small restaurants and many food & beverage kiosks Education Education and Conservation Conservation Educational programs for school visits like Living in the Ocean Sleepover, Hands-on Educational Fun Workshops, and the Ocean Ambassador, encouraging fun learning and understanding of the undersea life Committed to the conservation and breeding of marine life through active involvement in several environmental projects Size and Financials Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) ~ 736 Target Segments Families, kids Tourists from outside Singapore Misc. Competition Upcoming marine life park and integrated resort called Resorts World Future Plans To launch new displays Concept D: Small Marine Facility POSITIONING: Focus on at least two of education, conservation, research and infotainment. Others may be present. FEATURES: Infotainment Core (X) Table 10 Infotainment features of a small marine facility Add-ons (Y) Filler (Z) A walk through tunnel of 5th generation Or a walk through tunnel of 4th generation Or 3rd generation aquariums Usually feature one or two of these features as star attractions Dolphin shows Penguin/ Polar animals displays Seals, Sea lion shows/ displays Touch Pool Coral Reef, kelp etc The filler activities are main sources of revenue. Commonly observed ones are Restaurant/ cafes Gift shops Game zone Education, Conservation, Research: 23

31 Conservation activities are prevalent among few small sized facilities Education activities taken up primarily to attract school children groups SIZE AND FINANCIALS 9 : Table 11 Size and financials of a small marine facility Project Cost (INR Cr) <80 No of Species ~100 Footfall (MM/yr) ~0.4 Entry Fee (INR) Standard: 600 Additional charges for using non-core features STRENGTHS AND WEAKNESSES: Table 12 Strengths and weaknesses of a small marine facility Strengths These aquariums have a large portion of their revenues from non-aquarium sources like restaurants, gift shop etc Weaknesses These do not help to create the identity mark for the city. EXAMPLES: Nanjing Underwater world, China (Started in 2000), National Aquarium of New Zealand (redevelopment in 2002), Underwater World Pattaya, Thailand (started in 2003) Concept D Case Study 1: Nanjing Underwater World, China 10 9 KPMG Analysis

32 Positioning Infotainment facility Year of start 2000 Features Core (X) 4 th Generation Aquarium Underwater World features an array of aquariums which contain about 100 different species The highlight is a pedestrian walkway that tunnels through a large aquarium that includes sharks, rays, fish and one very big turtle. Features Add-ons (Y) Features apart from the aquariums include live performances by dolphins and sea lions. Artic foxes Penguins Polar bears In 2007, they started a new exhibit called "Polar World". This includes a polar bear, arctic foxes, penguins and reindeers Features Fillers (Z) Food court Games floor Gift shops Size and Financials Project Cost (INR Cr) No of Species Footfall (mn/yr) Entry Fee (INR) NA ~800 Misc. Families Target Segments Kids Concept D Case Study 2: National Aquarium of New Zealand

33 Positioning Infotainment, education and conservation Year of start Redevelopment in 2002 Features Core (X) 4 th Generation Aquarium National aquarium of New Zealand features a 50 m long, 180 degree under water tunnel through which over 1500 fish can be seen. Apart from this, the facility has plenty of smaller tanks with sea creatures, reptiles, exotic fish and native birds Features Add-ons (Y) Swimming with the sharks and sting rays Touch pool and rock pool Features Fillers (Z) Fishbowl Cafe Gifts available in the Aquarium Gift shop Getting married in the tank Education and Conservation Educational programs are created and presented by a fully trained teaching team. Various educational facilities are made available like AV room, laboratory, library, behind the scenes technology area etc Various on-going conservation projects and public events are organized to preserve marine life 26

34 Size and Financials Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) 40 > Adult 445, Child 230 Misc. Families Target Segments School Children Concept D Case Study 3: Underwater World Pattaya, Thailand 12 Positioning Focus on infotainment and education. Few conservation efforts Year of start 2003 Features Core (X) 4 th Generation Aquarium Over 2,500 marine animals of 250 species 100 meter long underwater tunnel which showcases shoals of fish, predators and other marine creatures Features Add-ons (Y) Various Dive & Swim Programs with sharks and sting rays Touch pools Reef Tanks 12 Haw Par Annual Reports 27

35 Features Fillers (Z) Restaurant Gift shop Education and Conservation School visits are supported, and new educational programs are constantly being developed Underwater world Pattaya is involved in marine conservation activities Size and Financials Project Cost (INR Cr) No of Species Footfall (MM/yr) Entry Fee (INR) ~0.475 Adult 639, Child 355 Target Segments Families, school children Tourists from outside Thailand Misc. Concerns Decreasing footfall due to political uncertainties in Thailand Future Plans Aggressive marketing Introduction of innovative activities Summary of Key Concepts The identified concepts have been summarized below: Details of the facilities Focus on at least two of education, conservation, research and infotainment. Others may be present. 4th or 5th or 3rd generation aquarium One or two add on features as star attraction Few filler activities are added to serve as additional sources of revenue. Commonly observed ones are Restaurant/ cafes, Gift shops and Game zone Focus on at least two of education, conservation, research and infotainment. Others may be present. 4th or 5th or large 3rd generation aquarium One or two add on features as star attraction Few filler activities are added to serve as additional sources of revenue. Commonly observed ones are Restaurant/ cafes, Gift shops and Game zone species Focus on at least two of education, conservation, research and infotainment. Others may be present. 4th or 5th generation aquarium and/or large 3rd generation aquarium. Limited number of add-on features. Restaurants, gift shops, game zone, rides added to increase alternate sources of revenue. Around 300 species Education, research, conservation and infotainment form an integral part of the facility 4th or 5th generation aquarium along with 3rd generation aquariums for certain species Variety of add-on features like dolphin shows, seal/ sea lion shows, penguins, polar animals etc Several filler features like restaurants, gift shops, ball room, etc usually available Around 500 species Around 100 species Project Cost (INR Crore) Concept D (Small) Concept C (Medium) Concept B (Large) Concept A (Very large) < >500 Example Nanjing underwater world, China (Started in 2000) Sentosa, Singapore (started in 1991) Epson Aqua stadium, Tokyo (started in 2005) Georgia Aquarium, USA (Started in 2005) Figure 7 Key concepts summary 28

36 5.3 Selection of suitable Concept for the proposed MRCI Centre Framework for selection of Concept Each of the Key Concepts for a Marine Facility can be assessed for suitability to GEC based on sync with objectives and enabling factors. The framework for assessing the suitability is as shown below. Vision for the MRCI centre (primary focus to be education, research, conservation and infotainment) Business Motive for the MRCI centre (faster breakeven) Sync with objectives Low Medium High MEDIUM SUITABILITY LOW SUITABILITY HIGH SUITABILITY MEDIUM SUITABILITY Low Medium High Enabling Factors (Location Independent) Appetite for Investment Private sector interest Past experience in handling projects of equivalent scale Figure 8 Framework for selection of concept Selection of a suitable Concept Four Key Concepts were discussed with GEC. Each of the Concepts has been rated on the parameters identified in the framework. Evaluation across the identified parameters reveals the difference across suitability levels for each Key Concept. An overall rating shows the suitability levels of the Concepts to GEC. Based on the discussions with GEC and other stakeholders, this would be a private sector investment subject to flexibility of PPP model. The viability gap funding would be done by the Government of Gujarat. 29

37 Parameters Concept VERY LARGE (A) LARGE (B) MEDIUM (C) SMALL (D) Vision, Mission for the MRCI Center (primary focus to be education, research, conservation and infotainment) Business Motive for the MRCI Center (faster breakeven) Overall Sync with objectives Appetite for Investment Private sector interest Past experience in handling projects of equivalent scale Overall Capability OVERALL Very High High Medium Low Very Low Figure 9 Evaluation of suitability of concept Based on the above rating the most suitable concept has been selected. While C and D were both in the most favourable quadrant, concept D was finally chosen due to relative ease of private participation for this Concept. Concept D can also be considered with the flexibility to upgrade to Concept C in the medium term based on the success of the MRCI Centre. Vision for the MRCI Center (primary focus to be education, research, conservation and infotainment) Business Motive for the MRCI Center (faster breakeven) Sync with objectives Low Medium A C B D Selected Concept Low Medium High Enabling Factors (Location Independent) Appetite for Investment Private sector interest Past experience in handling projects of equivalent scale Figure 10 Selection of suitable concept 30

38 5.4 Location Assessment Identifying the potential locations Various locations have been identified across the Gulf of Kutch as potential locations for setting up the MRCI Centre. The identified locations are as below: Dwarka Shivrajpur Okha Positra Narara Figure 11 Potential locations for the MRCI Centre Framework for assessment of locations Each of the locations can be assessed for suitability for setting up the MRCI Centre based on several parameters. Each location would be rated as low/medium/high based on its performance on the parameters. The aggregated rating would help to arrive at the overall suitability of the location. 31

39 The various parameters have been highlighted below Location Importance as a tourist location Infra- Connectivity Infra- Class and abundance of hotels Low Medium High Future Prospects Figure 12 Framework for assessment of locations Evaluation of locations Evaluation of the locations across the identified parameters has been done based on the field visit, primary interaction during the field visit as well as secondary research Location 1: Dwarka a) Importance as a tourist location Dwarka is a prominent tourist destination and has the third highest number of tourists in Gujarat. About 8.3 lakh tourists visited Dwarka in FY07 13 The temple darshan timings are 7 am 12:30 pm and 5 pm 9: 30 pm. Hence, the tourists have lot of free time during the day. Therefore it is a good location to start a tourist attraction to tap into the large number of tourists. Gomti Ghat Dwarkadhish Temple Sunset point Figure 13 Tourist spots in Dwarka 13 Source: FY 07 Report on Tourist Flow in Gujarat by Gujarat industrial and technical consultancy organisation 32

40 b) Infrastructure connectivity Road: Dwarka is well connected through state transport buses, private buses and taxis with major cities and towns in Gujarat including Ahmedabad (450 Km), Jamnagar (148 Km), Porbandar (120 Km), Rajkot (234 Km). It is also well connected with other major locations like Mumbai (929 Km) Dwarka To Jamnagar Within Dwarka Rail: Figure 14 Road connectivity for Dwarka Dwarka is a railhead on the Western Railway and the rail connectivity is good. Directly connected with major cities of Gujarat like Ahmedabad, Jamnagar, Porbander and Rajkot as well as other major cities like Mumbai. Air: Nearest airport is Jamnagar (148 Km/ about 2 hrs by road) from Dwarka Jamnagar has air connectivity only to Mumbai through Indian Airlines c) Infrastructure accommodation As-Is: Accommodation classes available to suite all budgets Hotels ranging from budget to luxury class Several dharamshalas and guest houses provide low cost accommodation facilities Typical tariff ranges from INR 200 (dharamshalas) to INR 2000 (A/C Suites) Overall high bed capacity, but limited high class hotels Over 7500 beds across 96 listed establishments 33

41 However, only 9 high class hotels with close to a total of 600 beds Table 13 Hotels/Accommodation status in Dwarka High Medium Low Total Establishments listed Bed Capacity Note: Data as per FY07; Source: Gujarat industrial and technical consultancy organisation Key gaps: Key gap in accommodation facilities include limited number of high class hotels Improvement Steps: Encourage private participation for setting up high class motels, cottages and hotels in Dwarka Land could be offered at concessional rates d) Future prospects Various development efforts are expected to offer new avenues of entertainment to the tourists as well as improved infrastructure The local municipal corporation is undertaking few developmental activities around important tourist spot within Dwarka (e.g. sunset point) Cement road along the shore Figure 15 Cement road along the shore Open air theatre 34

42 Park and Resting places for tourists Figure 16 Open air theatre Figure 17 Park and resting places for tourists Development of water sports within Dwarka (e.g. Gomti ghat) Water scooter rides started recently Figure 18 Water scooter rides at Gomti beach Scuba diving and sea rafting through prior appointment. Plans to expand this facility with new activities Prospects for setting up more beach and water sports in Dwarka New motels/ Cottages are also being planned to be set up in Dwarka Location 2: Shivrajpur Beach a) Importance as a tourist location Shivrajpur is a small village located 16 km from Dwarka. The beach is along side this village. 35

43 It is a good scenic spot. The beach is mostly rocky. The sandy part of the beach is farther and more difficult to reach. Few tourists of Dwarka visit this location Figure 19 View at the Shivrajpur beach b) Infrastructure connectivity Shivrajpur beach is located 16 km from Dwarka which is about 25 minutes drive from Dwarka Although the state highway is good, the connectivity from the state high way to Shivrajpur village is only through a one lane road. Figure 20 Road connectivity for Shivrajpur c) Infrastructure accommodation There are no accommodation facilities near the beach. 36

44 However, the tourists visiting this location stay in Dwarka which is close-by d) Future prospects There are no planned developments for this beach as of now Location 3: Okha a) Importance as a tourist location Okha is an important tourist location because of its proximity to Bet Dwarka. Bet Dwarka holds a lot of religious significance as it is considered as the residence of Lord Krishna. Most of the tourists visiting Dwarka visit Bet Dwarka in their free time. b) Infrastructure connectivity Okha is 30 km from Dwarka and it takes about minutes to reach. The road to Okha is a well maintained two lane state highway Trains run from Dwarka to Okha. In addition, tourist buses leave in the morning from Dwarka to Okha and cover 3 4 religious spots including Bet Dwarka and charge INR 50 per head. c) Infrastructure accommodation Typically tourists stay in Dwarka and visit Bet Dwarka for a few hours. Hence there is no demand for accommodation facilities. Accommodation facilities not well established d) Future prospects There are no planned development activities in Okha as of now Location 4: Positra a) Importance as a tourist location Positra is a good scenic spot but has not been commercially exploited. Very few tourists visit this place. 37

45 Figure 21 View at Positra Educational camps are organized in winters as part of awareness creation initiative of the govt. Students stay in tents for a few days and are educated about the marine bio diversity. Coral walking is also a part of these camps. b) Infrastructure connectivity Positra is about 35 km from Dwarka and takes about an hour to reach The road to Positra comprises a regular two lane road for some distance and then kachcha road thereafter Figure 22 Road connectivity for Positra c) Infrastructure accommodation There is no infrastructure in Positra for providing accommodation to tourists except for a forest department guesthouse. 38

46 Figure 23 Forest department guesthouse in Positra d) Future prospects Reliance is planning to set up an SEZ in/near Positra Location 5: Narara a) Importance as a tourist location Narara island is part of the marine national park. Lot of nature and marine life tourists visit this place. This is famous for the visible marine life (crab, mollusc, fish) and for coral walking Permission of the forest department is required Figure 24 Marine life (left) and view (right) in Narara b) Infrastructure connectivity Narara is located 35 km from Jamnagar and takes about 50 minutes to reach The initial part of the journey is on a well maintained state highway. This is followed by a single lane road with the last 3 km on a kachcha road. 39

47 Figure 25 Road connectivity for Narara c) Infrastructure accommodation There is a forest department guest house on the coast. No other place for accommodation or food d) Future prospects The forest authorities are planning to launch a website to attract more foreign tourists and market the marine national park in a bigger way Selection of suitable location for the proposed MRCI Centre Evaluation of the locations across the identified parameters reveals the difference across suitability levels based on which the suitable location can be selected for the MRCI Centre. The rating of each parameter is shown below and Dwarka town or outskirts (Dwarka-Shivrajpur road) has emerged as the most suitable location for setting up the MRCI Centre. 40

48 Table 14 Evaluation and selection of suitable location DWARKA SHIVRAJPUR OKHA POSITRA NARARA Importance as a tourist location Large number of religious tourists ~8.3 lakh tourists in FY07 Tourists have lot of free time during the day It is a good scenic spot Few tourists of Dwarka visit this location An important tourist location because of its proximity to Bet Dwarka. Most of the tourists visiting Dwarka visit Bet Dwarka in their free time. Very few tourists during the year Not commercially exploited yet Educational camps are organized in winters Part of the Marine National Park visited by over 14,000 tourists in FY08. Large no of nature and marine life tourists Famous for the visible marine life and for coral walking Infra- Connectivity Infra- Class and abundance of hotels Road connectivity to places within and outside Gujarat is good Rail connectivity is good 148 km to the nearest airport Accommodatio n classes available to suite all budgets High bed capacity, but limited high class hotels 16 km from Dwarka State highway is good, but connectivity from the state high way to Shivrajpur village is only through a one lane road. There are no accommodation facilities near the beach. However, the tourists visiting this location stay in Dwarka which is close-by 30 km from Dwarka Well maintained two lane state highway Tourists buses and trains run from Dwarka to Okha. Accommodation facilities not well established 35 km from Dwarka Road comprises a regular two lane road for some distance and then kachcha road thereafter No infrastructure for providing accommodation to tourists except for a forest department guesthouse 35 km from Jamnagar Well maintained state highway followed by a single lane road with the last 3 km on a kachcha road. No infrastructure for providing accommodation to tourists except for a forest department guesthouse Future Prospects Water/ beach sports New motels/ cottages Infrastructural developments by municipal authority like cement road and open air theatre There are no planned developments for this beach as of now There are no planned developments as of now Reliance is planning to set up an SEZ in/near Positra New website planned to attract more foreign tourists OVERALL HIGH SUITABILITY MEDIUM SUITABILITY MEDIUM SUITABILITY LOW SUITABILITY MEDIUM SUITABILITY 5.5 Environmental/Ecological Assessment Objective To understand the key ecological considerations for setting up an MRCI Centre around the project location 41

49 5.5.2 Key Considerations There are several ecological parameters which need to be analyzed while setting up the MRCI Centre. These parameters have been identified based on the primary interactions during the field visit, discussions with international consultants and through secondary research. These have been highlighted below: Bio-diversity for the MRCI Centre Maintaining water quality in the MRCI Centre Selection of flora and fauna for each tank Sources for obtaining the flora and fauna Transportation of flora and fauna to the MRCI Centre site Replicating the natural habitat Bio-diversity for the MRCI Centre There is a large variety of flora and fauna available in the natural ecosystem. The various types of marine life and the corresponding number of species have been highlighted below: Table 15 Bio-diversity in the Gulf of Kutch Type Fishes Prawns Crabs Sharks Sea Turtles Reptiles Birds Sea mammals Molluscs FAUNA No of Species Available including migratory birds Whales (3), dolphins and dugongs 200 Type Corals Sponges Type Algae Phytoplankton groups Intertidal macrobenthic groups Subtidal macrobenthic groups FAUNA No of Species Available FLORA No of Species Available Source: Vijayalakshmi Nair, Status of The Flora and Fauna of Gulf of Kutch, India, National Institute of Oceanography Dona Paula, Goa, India, March 2002 It is expected that emulating the natural ecosystem will reduce the associated costs for the MRCI Centre Low cost of sourcing the exhibit leading to reduced capital expenditure Simpler filtering systems are adequate leading to lower Cap-Ex and Op-Ex 42

50 Also, the available variety of flora and fauna seems adequate to assist the MRCI Centre achieve its objectives of providing education, research, conservation and infotainment. There exist several species of various marine life like coral (36), molluscs (200), crabs (30), prawns (31) There exist several attractive species like sharks, sting rays, colorful corals and sea anemones There exist many rare and endangered species of sharks, sea turtles and algae Thus, at the time of launch, the natural ecosystem of the Gulf of Kutch should be emulated in the MRCI Centre Many species from eco systems nationally and internationally could survive naturally in the Gulf of Kutch Areas like Gulf of Mannar, Rameshwaram and Palk Bay have eco-systems similar to that of Gulf of Kutch but have richer bio diversity. The additional species from these areas would survive easily in the Gulf of Kutch. Some international species have also survived in the waters of the Gulf of Kutch However, associated cost of including these species could be high Cost of transportation of the exhibits Cost of exhibit itself Also, there could be other associated risks which might delay the kick-off of the MRCI Centre Time taken for approvals from relevant international authorities Time taken for transportation Death during transportation (Financial and regulatory impact) Additional requirements for endangered/rare species Thus, species new to the Gulf of Kutch area could be considered for addition to the MRCI Centre in the medium term Maintaining water quality in the MRCI Centre The quality of water is critical for the survival of the marine life. Each species survives within a range of ph and temperature which needs to be maintained in the MRCI Centre. Also they keep consuming oxygen from water which needs to be continuously replenished. 43

51 Technical systems would need to be installed to maintain the key parameters defining water quality 14 Average ph: (is within the expected range of coastal tropical areas) Salinity: PPT Dissolved oxygen (DO): 4-6 ml/l Water temperature between degree C Nutrient level (specially for maintaining color of algae etc) Additional systems would be needed for the following: For cleaning the water to maintain visibility inside the water for the tourists For removing metal Marginal degradation in water quality in localized areas around industrial and urban centre For changing the water once in 4 to 5 days depending on the water quality analysis Selection of flora and fauna for each tank Each tank would contain a group of flora and fauna to provide the natural feel of the ocean. However, it is essential to ensure predator-prey is not grouped together. Typical fish life is between 1 to 3 years Sources for obtaining the flora and fauna There are several potential sources for obtaining the flora and fauna for the MRCI Centre Based on origin Natural habitat Sanctuary Conservation/breeding labs 14 Based on discussion with Dr. Jethani, Fisheries Research, Okha 44

52 Based on geography Gulf of Kutch Other parts of India Outside India However, there are rules and regulations governing the sourcing of flora and fauna outlining the approvals required etc for the same Transportation of flora and fauna to the MRCI Centre site Transportation of the flora and fauna is a specialized task. Different species need to be transported differently based on their water requirements. Transportation from one location to the other within the Gulf of Kutch is easier given the small distances In case of flora, transporting spores is easier than transporting the whole plant species. In case of whole plants, tanks with sea water, aeration facility and periodic water change should be used. In case of fauna, transportation can happen through ship or through aero plane in specially designed tanks Replicating the natural habitat Detailed study of natural habitat of each flora and fauna is essential to be able to provide them with their natural environment. Hideouts need to be created for fish and other marine life to help them experience close to natural surroundings. 5.6 Technological Assessment Objective To understand the key technical considerations for setting up an MRCI Centre around the project location Key Technical Considerations Based on the interactions with technical experts and aquarium equipment contractors, national as well as international and secondary research, various technical considerations have been identified which merit attention during setup and operation of an MRCI Centre. 45

53 Acrylic Panels and Tanks Water Pumping System ph and Nutrients control system Temperature control system Key Technical Considerations Aeration System Design and Decoration: Interior and exterior Lighting system Water Filtration System Manpower Electricity supply Water supply Figure 26 Key technical considerations These technical systems need to be provided with support infrastructure like manpower, electricity and water supply for their efficient performance Acrylic Panels and Acrylic Tank Acrylic is a key component of an MRCI Centre. Walk through tunnels and gigantic 3G marine facilities are made possible because of acrylic. Cylindrical Acrylic Tank Large Acrylic panels Acrylic Tunnel Figure 27 Different acrylic shapes They help to display marine life through transparent sheets of any shape and size. Manufacturing acrylic panels/tanks is a specialized task and currently it is available only in three countries. Hence, it would need to be imported. The installation of acrylic panels and acrylic tanks is done by specialists. 46

54 Acrylic panels and/or tanks account for around 20% 15 of project capital cost Design and Decoration: Interior and Exterior Both interior of the tank and the exterior landscape are an important consideration for a marine facility. The interior design and decoration is required to replicate natural habitat for the marine life e.g. creating hide-outs for fish. Exterior landscaping and decoration is essential to make the venue attractive for visitors Artificial Marine Habitat inside the tank Aquarium landscape design Exterior Landscaping Figure 28 Interior and exterior decoration Interior decoration of tanks to create artificial marine habitats is designed and setup by specialists. Exterior landscape of the MRCI Centre to suit the visitors can be designed by architects and interior designers Filtration System The water provided in the MRCI Centre needs to be continuously filtered. To remove pathogens/fickle metal so that water is fit for survival of flora and fauna To remove waste produced by fauna 15 Based on discussion with international technical consultant 47

55 To remove turbidity so that water is fit for public viewing Ozone generator Sand filters The process is as follows Figure 29 Filtration systems Water goes to a settling tank to remove large suspended particles Goes to holding tank for processing through UV/ozone to remove pathogens Filtration systems are available locally and hence need not be imported Water Pumping System Water needs to be pumped 24x7. Pumping system is essential as water needs to be constantly fed to the filtration system to make it fit for survival of flora and fauna. Fresh sea water is pumped into tanks from the source like ocean and to ensure 24x7 pumping, a 400 KVA generator is required 16 Water pumping systems can be sourced locally. The cost of pumping system is impacted by the distance over which the ocean water is being pumped. Any distance of more than m from the sea would considerably increase the costs Artificial Lighting System In most cases, the MRCI Centre is completely enclosed with no access to natural light. In such cases, provision of lighting is essential for the survival of flora and fauna. It is also important to replicate the light intensities of their natural environment. Metal halides are used to supplement the meager natural light available in tank. Lighting is also important to highlight certain areas of an exhibit and for good visibility of the exhibits to the visitors. 16 Based on discussion with international technical consultant 48

56 These systems can be sourced locally Aeration System An aeration system is required to maintain the oxygen content of water. Oxygen levels get depleted since marine life consumes it continuously and hence needs to be replenished. Also, aeration stimulates the flow of oxygen by releasing air bubbles into the water, thus creating water movement which is essential for even distribution of materials and compounds in water. Air pumps often combined with a power head or water pump are usually used for large tanks. Aeration systems can be sourced locally ph and Nutrient control systems Suitable ph level, salinity level and other required nutrient levels have to be maintained in the water for many biological processes to take place both for flora and fauna. In addition, nutrients are necessary for flora to maintain their color. Remote probes and control instrumentation is used to monitor and maintain the required levels. These can be sourced locally Temperature Control System The temperature of the water pumped in varies a lot. Consistency in temperature has to be maintained as most species are not accustomed to sudden changes. In addition suitable temperature ranges vary for various species depending on their place of origin. Therefore, temperature control systems are vital. Computerized automatic heating/cooling systems are available making the operations much easier and accurate. They are available locally 49

57 Heat exchangers for temperature control Figure 30 Temperature control systems Support Infrastructural Requirements Support infrastructure like water, electricity and manpower is essential for successfully operating the MRCI Centre. Manpower Trained manpower is necessary for the operations and maintenance of the MRCI Centre Usually MRCI Centre contractors operate the MRCI Centre for 1 to 2 years during which time they assist in hiring and training the local manpower. Electricity Supply Round the clock electricity supply is required to operate an MRCI Centre as all the life support systems depend on it. To ensure this a back up generator is essential Water Supply Continuous water supply is required for an MRCI Centre. Locating the MRCI Centre close to a water source reduces costs considerably 5.7 Regulatory Assessment Objective To understand the key regulatory considerations for setting up an MRCI Centre around the project location 50

58 To develop a list of clearances required for setting up an MRCI Centre To identify key regulatory risks, if any Relevant Acts and corresponding Rules and Regulations There are various Acts governing Wildlife as well as the Environment. Each Act has various Rules and Regulations, some of them being especially applicable to an MRCI Centre. The applicable acts and corresponding rules have been highlighted below. Recognition of Zoo Rules, 1992 Wildlife (Protection) Act, 1972 Regulations on Acquisition of Animals Prevention of Cruelty to Animals Act, 1960 Performing Animals Rules, 2000 Breeding of and Experiments on Animals Rules, 1998 Environment Protection Act, 1986 Environment (protection) Rules, 1986 Figure 31 Relevant acts ad corresponding rules The details on the rules applicable for the setup and operation of the MRCI Centre are as follows Recognition as a zoo The MRCI Centre has animal exhibits and hence has to be recognized as a zoo. Each zoo needs to be recognized by the Central Zoo Authority to be able to keep and exhibit wildlife. For this purpose an application under section 38H of the Wildlife Protection Act for recognition of a zoo should be made to the Central Zoo Authority. A fee of INR 500 is to be paid with every application Validity of the recognition is one year (unless granted on permanent basis). Renewal is to be initiated three months before expiry. Certain information is to be submitted as part of the application which is as follows: - Generic information like name, location, number of animals etc 51

59 - Detailed list of the species of animals being displayed along with new acquisitions, disposal, births and deaths - Endangered species breeding details - Details of Veterinary facilities available - Details of feeding facilities for the animals like food store, water etc - Sanitary care and disease control facilities - Details of facilities for visitors like toilets, restaurants, resting area etc and safety measures - Budget and the master plan for the zoo - Any publications, brochures and guide books Each Zoo needs to operate under certain pre-defined norms and standards some of which offer certain challenges for the MRCI Centre as listed below Table 16 Norms to be followed and challenges associated Norms/Standard General Norms Primary objective as conservation Administrative and staffing pattern Full time veterinarians Animal Enclosures - Design, dimensions and other features Hygiene, Feeding and Upkeep Animal Care, health and Treatment Veterinary Facilities Requirement of veterinary hospital Breeding of animals: Approval required for breeding of each species Maintenance of Records and Submission of Inventory record of birth, acquisitions, deaths etc of all species Education and Research Continuous monitoring of biological behavior, population dynamics etc Visitor Facilities Development and Planning submitting future plans Challenge Being a PPP initiative, conservation efforts would not be an area of primary focus Availability of trained staff in required numbers The act does not provide details for an aquarium Availability of required knowledge (e.g. feeding habits) and experience (e.g. skilled staff) Availability of trained staff in required numbers Additional cost involved Obtaining approval specially for expensive/exotic species as well as endangered/rare species Considering the short life span of several species of fish and high number of species that has to be maintained, this process might be cumbersome. Availability of trained staff in required numbers None None Acquisition of Animals The wildlife protection act outlines the provisions regarding acquisition of animals by a zoo. 52

60 Acquisition from within India Acquisition or transfer of any wild animals from within India specified in Schedule 1 and Schedule 2 of the Wildlife protection act require previous permission of the Chief Wildlife Warden of the respective state. Table 17 Illustrative list of species protected under the wildlife protect act Illustrative List of species under Schedule 1 and 2 requiring approvals for acquisition Mammals like Dugongs and dolphins Amphibians and Reptiles like turtles and crocodiles Fish species like shark and Ray Corals Molluscs Acquisition from outside India Import of animals, birds and reptiles is permitted against a license to zoos and zoological parks, recognized scientific/ & research institutions, circus companies, private individuals, on the recommendation of the Chief Wildlife Warden of a State Government subject to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna & Flora (CITES) Exhibition of performing animals For display of any animal performances consent from the animal welfare board need to be taken. For the purpose of the MRCI Centre this needs to be considered if dolphin shows, seal/ sea lion shows etc are planned. An application should be made to the Animal Welfare Board of India for registration Application and registration related info A fee of INR 500 is to be paid with every application Illustrative list of information to be submitted as part of the application is as follows: - Generic information of the establishment like name and location - Whether registered under the performing animals rules already - Ownership certificate if the performing animal is protected under the wildlife protection act - Particulars of the performing animals with details like species name, age, gender etc - Details of the nature of performance along with information on training and performing apparatus 53

61 A certificate of registration shall be issued by the authority after submission of application. Conditions to be satisfied for successful registration 24 general conditions as per the Performing Animals (Registration) Rules, 2000 have to be satisfied for ensuring registration. The broad categories of conditions provided are as follows: Shelter facilities during transportation and during captivity Veterinary facilities Food, hygiene and general upkeep Health during performance Prohibited performing conditions and apparatus Prohibition of continuous or excessive performances A report corresponding to each registration highlighting health death, birth etc duly certified by a veterinary doctor has to be submitted every month. Key challenges in meeting the required conditions Availability of trained staff will be a big concern given the lack of marine animal performances that take place in India There will be additional cost involved in developing in-house expertise - hiring staff from abroad, organizing trainings for Indian staff Breeding of and Experimentation on Animals For any breeding activities and research on animals an application should be made to the Member Secretary, CPCSEA (Committee for the Purpose of Control and Supervision of Experiments on Animals), Ministry of Environment & Forests for registration Application and registration related info A fee of INR 1000 is to be paid with every application It will take about 2 months to get the registration Illustrative list of information to be submitted as part of the application is as follows: 54

62 - Generic information of the establishment like name, location, objectives of establishment and purpose of breeding - Details of animals related to their procurement, transportation, housing facilities and their availability - Details regarding experimentation if applicable - Details regarding animal breeding Conditions to be satisfied for successful registration A spot inspection is conducted before giving registration. Several standards need to be maintained for stocking of animals. Some of these are highlighted below: Animal houses shall be located in a quiet atmosphere undisturbed by traffic, and the premises kept tidy, hygienic and the animals protected from drought and extremes of weather Animals attendants must be suitably trained and experienced in the duties allotted to them There shall be satisfactory arrangement for looking after the animals during off hours and on holidays A record from time to time corresponding to each registration is to be submitted. Key challenges in meeting the required conditions Obtaining approval specially for expensive/exotic species as well as endangered/rare species will be difficult Availability of trained staff is an issue Construction in coastal regulated areas Any activity near the coastal stretches will be governed by the coastal regulated zone notification of the environment protection act. Key takeaways from the notification are as follows: Construction activity between the High tide line and Low tide line is prohibited The coastal stretches within 500m of High Tide Line on the landward side are regulated Any development activity to be done in this area should follow the coastal regulation zone notification: 55

63 - Classification into CRZ categories (I or II or III) should be checked and rules will apply accordingly - Any other construction activity with investment exceeding INR 5 crores will require environment clearance from MOEF The CRZ notification should be a key consideration while deciding the exact location for the MRCI Centre. Water Between Low tide line and High tide line Area within 500 m from High tide line Area beyond 500 m from High tide line Prohibited Need environment clearance from MOEF No clearance required Figure 32 Coastal regulated zones Prior environment clearance Environment clearance is mandatory for all projects which might have a potential impact on the environment. This needs to be considered as the MRCI Centre construction classifies as building and construction project and is listed in the environment protection rules. Prior environment clearance is required for building and construction projects >= 20,000 sq.m and <1,50,000 sq.m of built-up area. If the built-up area for the MRCI Centre is < 20,000 sq m, no prior environmental clearance is required Categories of projects mentioned in the environment protection rules Ministry of environment and forests has categorized projects based on the impact on human health as well as resources. An MRCI Centre falls under building and construction project which is category B. The approving authority as per project category is as follows Category A All projects or activities included as Category A shall require prior environmental clearance from the Central Government in the Ministry of Environment and Forests (MoEF) based on the recommendations of an Expert Appraisal Committee (EAC) Category B All projects or activities included as Category B will require prior environmental clearance from the State/Union territory Environment Impact Assessment Authority (SEIAA). The SEIAA shall base its decision on the recommendations of a State or Union territory level Expert Appraisal Committee (SEAC) In the absence of a duly constituted SEIAA or SEAC, a Category B project shall be treated as a Category A project Figure 33 Category of projects as per the environment protect act 56

64 A project specified in Category B will be treated as Category A, if located in whole or in part within 10 km from the boundary of: (i) Protected Areas notified under the Wild Life (Protection) Act, 1972, (ii) Critically Polluted areas as notified by the Central Pollution Control Board from time to time, (iii) Notified Eco-sensitive areas, (iv) inter-state boundaries and international boundaries Environment clearance procedure The procedure for acquiring an environment clearance is explained through the following flowchart Acquiring required Identifying the project information, supporting category (A or B) documents and local clearances Category A Illustrative list Approval required from Information on construction, central authority (MOEF) operation or decommissioning of the Category B Approval required from state level authority (SEIAA) Project Details of use of Natural resources Impact on environmental sensitivity Sending out the application along with the necessary information Application Forms and supporting documents to be submitted in the prescribed format along with prefeasibility report/conceptual plan Authority: SEIAA or MOEF 6 Appraisal Detailed scrutiny of the application, EIA report etc Recommendations to the regulatory authority for grant or rejection of the application for prior environmental clearance 5 Scoping (for all category A projects and category B projects requiring EIA report) Development of a detailed TOR addressing all relevant environmental concerns for the preparation of an EIA Report 4 Screening (only for category B projects and activities) Scrutiny of the Application Form to determine if the project requires development of the Environment Impact Assessment report (EIA) for its appraisal based on the risks associated with the project. Figure 34 Procedure for acquiring environment clearance Information required along with application Relevant information is to be submitted as part of the application for environment clearance so as to help the authority evaluate the project s impact on the environment. The list of information required is as follows. Information required as part of Form 1 Generic information of the establishment like name, location, size, project cost and category Information on construction, operation or decommissioning of the Project involving actions, which will cause physical changes in the locality (topography, land use, changes in water bodies, etc.) 57

65 Details of use of Natural resources for construction or operation of the Project (such as land, water, materials or energy, especially any resources which are non-renewable or in short supply) Details of use, storage, transport, handling or production of substances or materials, which could be harmful to human health or the environment or raise concerns about actual or perceived risks to human health. Information on production of solid wastes during construction or operation or decommissioning (MT/month) Information release of pollutants or any hazardous, toxic or noxious substances to air (Kg/hr) Details of generation of Noise and Vibration, and Emissions of Light and Heat Risks of contamination of land or water from releases of pollutants into the ground or into sewers, surface waters, groundwater, coastal waters or the sea: Risk of accidents during construction or operation of the Project, which could affect human health or the environment Factors which should be considered (such as consequential development) which could lead to environmental effects or the potential for cumulative impacts with other existing or planned activities in the locality Impact on environmental sensitivity Information required as part of Form 1A Answers to a list of specific questions on environment impact including those on land environment, water environment, vegetation, Fauna, Air environment, Aesthetics, Socioeconomic aspects, Building materials and energy conservation Summary of regulatory approvals, challenges and mitigation Approvals Required Several regulatory approvals are required before setting up an MRCI Centre. The approvals required and the concerned authorities have been summarized below. 58

66 Table 18 Summary of approvals required and relevant authorities Area Approval Recognition of Zoo Required Acquisition of Animals Required (within India) Acquisition of Animals Required (outside India) Performing Animals Breeding Prior Environment Clearance (before construction activity) CRZ/CMZ guidelines (for activity in the costal areas) *Inspector General-Forests is a member Required Required Required if built-up area is greater than 20,000 sq.m Regulated Authority Central Zoo Authority Chief Wildlife warden of the respective state Director General Foreign Trade Animal Welfare Board* Animal Welfare Board* SEIAA - State Environment Impact Assessment Authority or MOEF Ministry of Environment and Forests Approval from MOEF if in regulated area Comments Validity for one year (unless granted on permanent basis). Renewal to be done 3 months before expiry PCCF is the chief wildlife warden for Gujarat Not required immediately as imported animals might be planned for phase II Need recommendation of IGF Would be required for only 1 to 2 species Takes about 2 months for approval process Takes about 4 months for approval process No approval is required if constructed beyond 500 m from High tide line Key challenges and mitigation methods Various guidelines need to be followed while setting up and operating an MRCI Centre which poses several challenges. The challenges involved in meeting the regulatory requirements include difficulty in meeting some of the specified norms and standards, ambiguity in applicability of some parts of the regulations, difficulty in getting some of the approvals and associated cost escalations. 59

67 Difficulty in meeting norms and standards Cost Escalations Mandatory veterinary/ quarantine standards would lead to higher costs Additional cost involved in developing in-house expertise - hiring staff from abroad, organizing trainings for Indian staff etc Lack of technical know-how e.g. animal care, treatment etc Lack of trained manpower e.g. for maintenance of equipment Challenges Difficulty in getting the approvals Time over-runs: May take up more time than anticipated Monitoring difficulties: Number of authorities for approvals is high Rejections: May be difficult to get approvals for certain species like endangered species Ambiguity in applicability of regulations Norms for enclosures are not aquarium specific Norms for transport of marine life not defined For approval, primary objective is expected to be conservation. However given the private sector participation conservation would not be their primary objective Figure 35 Challenges due to applicable regulations However, these challenges would need to be mitigated to ensure successful working of the MRCI Centre. Difficulty in meeting norms and standards Cost Escalations Difficulty in getting the approvals Ambiguity in applicability of regulations Project may be given to international contractors with established credentials on BOT basis Regular inspections conducted to monitor standards Arrange for hand holding support from international bodies and/or international marine facilities Involve relevant authorities like forest department, local municipalities, tourism department etc initially itself to obtain their buy-in Seek support/ information from international bodies/ contractors Tie-up with research institutes in India/abroad for conservation activities Figure 36 Mitigation methods 60

68 5.8 International Accreditations There are various international organizations for the zoo and aquarium community. These organizations work at country level, regional level as well as global level. Some of them include South Asian Zoo Association for Regional Cooperation (SAZARC), Association of Zoos and Aquariums (AZA), Japanese Association of Zoos and Aquariums, Latin American Zoo & Aquarium Association etc. World Association of Zoos and Aquariums (WAZA) is an umbrella organisation for zoos, aquariums and regional organizations of zoos and aquariums. The primary objective of these organizations is to contribute to improved management of zoo and aquarium facilities by setting up standards and providing a common forum for knowledge sharing for achieving the same World Association of Zoos and Aquariums (WAZA) Overview WAZA is the umbrella organisation for the world zoo and aquarium community. Its members include: Leading zoos and aquariums Regional and National Associations of Zoos and Aquariums eg. SAZARC (South Asian Zoo Association for Regional Cooperation) Affiliate organizations, such as zoo veterinarians or zoo educators Benefits offered to members All the members of WAZA receive support for member zoos, aquariums, and partner organisation in Animal care and welfare Conservation of biodiversity Environmental education Global sustainability This is done through Training grants to members Conferences, seminars and workshops Publications 61

69 Prerequisites to become a member Certain conditions have to be satisfied for successfully acquiring the membership such as Two sponsors are needed to sign the nomination form. Sponsors should be current voting members of WAZA who are preferably from your country or region, but do not serve on the Membership Committee Any body seeking membership should act in accordance with all local, national and international law Any body seeking membership should strive for highest standards of operation in the areas mentioned in the Code of Ethics and Animal Welfare like exhibit standards, acquisition and transfer of animals, contribution to research etc Benefits to the MRCI Centre There are various advantages in acquiring the membership of an international organisation. They are as follows: International recognition would give credibility to the working of the MRCI Centre and ensure high standards are being maintained Help in attracting international private contribution and funding Obtain support and training for local manpower Gain knowledge and information Challenges for the MRCI Centre Challenges involved in meeting the requirements of international organizations are as follows Active involvement in research would require prior collaboration with research organizations and institutions Technical know-how and skilled manpower to meet international standards would be developed locally over time 5.9 Primary Survey Objective The objectives of the primary survey are as follows: 62

70 To understand the typical behaviors relating to entertainment and leisure activities of the target group Entertainment and leisure activities Time spend on these activities Expenditure associated with these activities Frequency of performing the activities To understand the travel plans of people visiting Dwarka Itinerary Alone or in a group Typical duration Typical spends on travel, stay, food, activities, others To find out the spontaneous reaction for the idea of MRCI Centre To assess the reaction to the proposed MRCI Centre around Dwarka, in terms of : Likeability of the idea Willingness to visit this MRCI Centre To find out the key features attracting the visitors to such a destination To understand the suitable ticket pricing for the MRCI Centre Implementation of the survey The primary survey was commissioned to Market Search India Pvt. Ltd. It is a marketing research and consultancy firm, with infrastructure and expertise to handle multi-country studies. Market Search provides comprehensive, in-depth research and analysis, generating insights into consumer and market behavior. It uses a variety of Quantitative and Qualitative research techniques and technology to understand consumers and gain insights into their behavior 63

71 5.9.3 Methodology A series of face-to-face interviews with the target respondents were conducted. These interviews were guided by detailed questionnaires. The detailed questionnaires have been included in Appendices. The target respondents were selected purposively using a select set of criteria. The respondents were shown the photographs and write ups of the proposed MRCI Centre and their feedback was taken. The geographical coverage and profile of target respondents chosen is as shown below Geographical Coverage The study was conducted in four cities: Dwarka Ahmedabad Vadodara Saputara Dwarka has been selected as it is the proposed location for the setting of the MRCI Centre. Other selected locations, Ahmedabad, Vadodara and Saputara are leading tourist destinations in Gujarat and thus would provide a good perspective of tourist behaviour within Gujarat Profile of target respondents The target respondents included the following: End consumers Tour operators School authorities End consumers were selected based on the following criterion: Working men & women with children in the age group of 25 to 60 years The target respondents are those who take decisions on their own Those who belong to SEC A1, A2, B1, B2 Have taken a short break (lasting 2-3 days) at least twice in last two years 64

72 Tour operators included those who conduct group tours in Gujarat. Target respondents also included schools in Gujarat who organize tours and excursions for their children Sample size and breakup of the target respondents In total 240 interviews were conducted with the target respondents. The city wise and segment wise sample breakup was as follows Table 19 Sample and breakup of target respondents Sr.No. City Resident Tourist* Total 1 Dwarka Ahmedabad Vadodara Saputara Total * Tourists are visitors who stay for atleast one night. The number of tour operators and schools interviewed were as follows Tour/Travel operators School Findings of survey with end customers Behavior of tourists to Dwarka Visit to Dwarka Apart from the tourists and residents interviewed in Dwarka, the 170 respondents at other locations were asked if they have visited Dwarka to understand their Dwarka travel behavior. Only 60 respondents or 35% of them had visited Dwarka before. 65

73 Willing to visit Dwarka in future 38% Have visited Dwarka 35% Have not visited Dwarka 65% Not willing to visit Dwarka 27% Figure 37 Willingness to visit Dwarka The 110 respondents who had never visited Dwarka were asked if they would like to visit Dwarka in the future. About 46 respondents refused mentioning reasons like large distance and lack of time. The respondents who had visited Dwarka were interviewed further on their travel behavior in Dwarka. The total number of these respondents was 115 and this included the tourists in Dwarka as well as respondents interviewed outside Dwarka. The travel behavior was important to understand the favorability of the location for setting up the MRCI Centre. Purpose of Visit As expected, maximum percentage of respondents visited Dwarka for religious purposes. 80% 70% 60% 50% 40% 30% 20% 10% 0% 75% 23% 2% Religious Leisure Business Figure 38 Purpose of visit Frequency of Visit Most of the respondents visited Dwarka only once. This is closely followed by the number of tourists who visit once every year showing the high level of repeat visitors to Dwarka. 66

74 40% 37% 36% 30% 20% 10% 0% Once/ First time 12% Yearly Once in 6 months 10% Atleast once a month Figure 39 Frequency of visit to Dwarka 4% 3 4 times a year 1% Once in 2 3 years Duration of Trip Duration of visit for most of the respondents is 2-3 days 40% 30% 20% 34% 31% 22% 13% 10% 0% 3 days 2 days Overnight stay Same day return Figure 40 Duration of visit In addition, over 70% of the respondents have a free time of more than 2 hrs during their trip. 50% 45% 40% 30% 27% 20% 10% 16% 12% 0% 3 4 Hr 2 3 hr More than 4 Hr Less than 2 Hr Figure 41 Available free time 67

75 In addition, about 61% of the respondents completely planned the trip and besides the temple visit nothing major was planned for these respondents. Unavailability of an alternate venue is the major reason for this. Alternate Activities interested in 93% of the people said yes when they were asked if they want to spend their free time in some alternate activity. 71 % of them said that they could go on trips to nearby beaches and coastal areas. The long duration of typical trips to Dwarka, availability of plenty of free time, lack of alternate activities to indulge and willingness to indulge in alternate activities are favorable signs for the MRCI centre to be setup in Dwarka Past out-of-home entertainment behavior of respondents It is necessary to capture the respondent s past out-of-home entertainment behavior to better understand his out of home entertainment preferences and thus validate his response to the willingness of visiting the MRCI Centre. Six entertainment activities which include watching movies, eating out in restaurants, Sightseeing places of interest like museum, aquarium/ Zoo, planetarium, Amusement Park/ Water Park, Picnic/ outing to location within hometown - beaches, lakes and Picnic/ outing to locations outside hometown have been chosen to understand the past entertainment behavior of the respondents. Frequency of Visits for each Activity Eating out at restaurants and watching movies are done more often while other activities are done on a yearly basis by most of the respondents. Most of the respondents indulge in all the six activities. Such a visit behavior shows that the respondents are interested in out-of-home entertainment activities and thus MRCI centre could be an attractive proposition for them. 68

76 Picnic-Outside home town Picnic-within home town Water park Museum, Aquarium, Zoo/ Planetarium Watching Movies/ Cinemas Eating out at Restaurants More than once a month Once a month Once in 2-3 months Once in 4-5 months Once in 6 months Once a year Don't do Figure 42 Frequency of activities Time Spent in each Activity Most respondents spend about 1-2 hrs in a restaurant as expected. Apart from restaurants, most respondents spend 3 6 hrs in other activities. Since an MRCI centre will be a place where a visitor can spend about 2-4 hrs observing and learning various species, eating at the restaurant, watching a dolphin show etc it matches to the entertainment related time spending behavior of the respondents. Picnic-Outside home town Picnic-within home town Water park Museum, Aquarium, Zoo/ Planetarium Watching Movies/ Cinemas Eating out at Restaurants <1 Hr 1-2Hr 3-4 Hr 5-6 Hr 7-8 Hr >8 Hr Figure 43 Time spent in each activity 69

77 Money Spent on each Activity Apart from the picnic outside hometown, the typical spending for the other activities is in the range of per head. This would be an important consideration while pricing the ticket for the MRCI Centre. Picnic-Outside home town Picnic-within home town Water park Museum, Aquarium, Zoo/ Planetarium Watching Movies/ Cinemas Eating out at Restaurants <Rs100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs >Rs2500 Figure 44 Average spend on each activity Responses related to the Concept of the Marine Facility Likeliness to Visit Overall the response to the Marine Facility concept was positive. 85% of the respondents liked the concept a lot and 78% said they would definitely visit such a place. This implies that a high percentage of the target respondents are likely to visit the MRCI Centre. Neither liked nor disliked 1% Disliked a Little 1% M ay o r may no t visit 3% Probably not visit 3% Liked a Little 13% Probably Visit 16% Liked a Lot 85% Definitely Visit 78% Figure 45 Likeliness to visit the marine facility 70

78 Intention to visit the MRCI Centre if located in Dwarka 216 respondents have shown interest in planning a trip to Dwarka to specially visit the MRCI Centre. This validates the suitability of Dwarka as a location for the MRCI Centre. Wil not visit 7% Will visit 93% Figure 46 Willingness to visit Dwarka especially for the MRCI Centre Out of the 17 respondents who have not shown interest, 7 respondents have shown interest in visiting the MRCI Centre during their free time while in Dwarka. Willingness to visit in subsequent trips to Dwarka 197 respondents said they would visit the MRCI Centre again in their subsequent trips. Out of the 26 respondents who said no, 25 said that they would visit again only if new features are added. Thus newer features would need to be added in the future to be able to attract more of repeat tourists at the MRCI Centre. Not Answered 4% Yes 85% No 11% Yes 96% No 11% Figure 47 Willingness to visit MRCI Centre in subsequent trips to Dwarka 71

79 Favorable features in the MRCI Centre The ratings for each of core, add-on and filler features were taken from every respondent in a format highlighted below. Table 20 Format for taking ratings for features of the MRCI Centre CORE FEATURES Large tank with large ocean dwellers and various species Walk through tunnel with 180 degree view Walk through tunnel with 360 degree view RATING Large tank + tunnel ADD ON FEATURES Dolphin shows Seal/ Sea lion shows Touch Pools Swimming with dolphins/ dugongs/ seals Coral Reef displays Penguins Polar Animals (Polar bear, artic foxes etc) Good restaurant/ Cafes 4D theatre Souvenir/ Gift Shops Simulator Rides Marriage Hall/ Ball room Game zone FILLERS An overall rating was then calculated for every feature. Based on this overall rating the most favorable features of the MRCI centre were obtained as outlined below: Core Features: Walk through tunnel with 360 degree view and a large 3G tank are the most preferred core features. Walk through tunnel with 180 degree view is next to most preferred 72

80 Large tank + tunnel 47% 36% 15% 3% Walk through tunnel with 360 degree view 56% 37% 6% 1% Walk through tunnel with 180 degree view 49% 35% 13% 3% Large tank with large ocean dwellers and various species 62% 25% 10% 3% Very high high medium low very low Figure 48 Ratings for core features Add-on Features: Dolphin show is the highest rated add-on feature. Next most preferred add-on features are penguin displays, Seal show and polar animals in that order Polar Animals (Polar bear, artic foxes etc) 56% 29% 9% 4%1% Penguins 57% 34% 7% 3% Coral Reef displays 53% 31% 9% 7% 1% Swimming with dolphins/ dugongs/ seals 53% 35% 6% 6% Touch Pools 43% 39% 13% 5% Seal/ Sea lion shows 60% 26% 12% 2% Dolphin shows 71% 23% 6% Very high high medium low very low Figure 49 Ratings for add-on features Filler Activities: Good restaurants or a cafe as a filler feature is a clear favorite. Game zone was also given a high rating by a considerable number of respondents. 73

81 Game zone 53% 36% 7% 2% 2% Marriage Hall/ Ball room 49% 31% 8% 7% 6% Simulator Rides 54% 29% 8% 9% Souvenir/ Gift Shops 42% 38% 11% 8% 2% 4D theatre 52% 31% 12% 4% 1% Good restaurant/ Cafes 64% 30% 6% Very high high medium low very low Figure 50 Ratings for filler features Willingness to pay The responses to the basic fee, fee for add-ons, fee for filler activities and overall package fee are as highlighted below. Number of respondents <Rs >500 Figure 51 Basic Entry Fee Number of respondents <Rs >500 Figure 52 Fees for Add-on Features 74

82 Number of respondents <Rs >500 Figure 53 Fees for Fillers <Rs >500 Figure 54 Total package price Based on the responses an average price is as follows Table 21 Average price Basic entry fee Add on features Filler features Entire Package Average price INR 64 INR 55 INR 67 INR 297 This together with the past spending behavior can be used to calculate the price range for the MRCI centre. Favorable activity time for the MRCI centre Most of the respondents were interested in spending about 2-4 hrs in the MRCI centre. This should be taken into account while deciding the number of activities to be introduced in the MRCI Centre. 75

83 40% 35% Percentage of respondents 30% 20% 10% 5% 22% 29% 7% 0% <1hr 1hr-2hr 2hr-3hr 3hr-4hr 4hr-5hr Figure 55 Favorable activity time to spend in the MRCI centre Favorable travel time for the MRCI centre About 53% of the respondents do not want to travel more than 40 min to reach the MRCI centre from their place of stay. This implies that the MRCI centre should be located not more than 15 km away from the main accommodation area of the town or where maximum number of tourists stay. 60% 53% Percentage of respondents 50% 40% 30% 20% 10% 22% 13% 13% 0% < 20 Min Min 41 Min 1 Hr > 1 Hr Figure 56 Favorable travel time to reach the MRCI centre Response from Schools Authorities from 10 schools in Gujarat were interviewed to gauge the interest levels of schools in organizing visit to the MRCI centre for their students. 76

84 Recreational activities organized by schools Most of the schools organize trips to amusement or water parks, to places of scientific interest, to picnic locations within the city and visit to manufacturing location. Excursions to locations outside the city (2-4 day trips) Nature treks to locations around the city (1 day trips) 5 5 Watching movies/ cinema 4 Amusement Park/ water park 8 Picnic to locations within city parks etc 9 Visiting places of historical or scientific interest 9 Visiting a manufacturing facility 8 Figure Recreational activities organized by schools Time spent on these popular activities range from 3-8 hrs. Hence, MRCI centre should take this into account while developing educational and entertainment activities for these students. Excursions to locations outside the city (2-4 day trips) Nature treks to locations around the city (1 day trips) 6 16 Watching movies/ cinema 4 Amusement Park/ Water park 8 Picnic to locations within city parks etc 7 Visiting places of historical or scientific interest 6 Visiting a manufacturing facility 3 Figure 58 Time spent on each activity (hrs) These activities are organized by most schools for students of grade 5 and above. Thus the MRCI centre should conceptualize major proportion of its educational activities with applicability to students of grade 5 and above. 77

85 Excursions to locations outside the city (2-4 day trips) 3 5 Nature treks to locations around the city (1 day trips) Watching movies/ cinema Amusement Park/ Water park Picnic to locations within city parks etc Visiting places of historical or scientific interest Visiting a manufacturing facility Number of schools out of 10 Primary (1-4) Secondary (5-7) Secondary (8-10) 11th - 12th Figure 59 Applicability of each activity Workshops related to marine life and animal science are conducted by 6 out of 10 schools. Considering the interest level in these subjects, organizing such workshops in the MRCI centre would be an attractive proposition for school groups. Religious/Yoga Sadhana Jan Jagruti Abhiyan Workshop for Historic Monuments Astronomy 4 Marine Life Animal Science 6 6 Chemistry 0 Physics number of schools out of 10 Figure 60 Educational workshops conducted by schools 78

86 The average spend per student for activities like amusement park, picnics and visits to places of scientific interest range between INR 142 to 213. This should be considered while fixing the total package price for school students. Most of these activities are partly funded by the student and partly by the school. Excursions to locations outside the city (2-4 day trips) 540 Nature treks to locations around the city (1 day trips) 170 Watching movies/ cinema 68 Amusement Park/ Water park 213 Picnic to locations within city parks etc Visiting places of historical or scientific interest Visiting a manufacturing facility 23 Figure 61 Average cost per student for each activity Many school avail discounts for most of these activities. The number of schools availing discounts and the average discount amount is highlighted below % No of schools availing discounts % 45% 9 51% 8 47% 7 50% 52% % 60% 40% 20% % of discount 0 0% Visiting a manufacturing facility Places of historical or scientific interest Picnic to locations within city Amusement Park/ Watching movies/ cinema Nature treks to locations around the city Excursions to locations outside the city Number of schools availing discounts (out of 10) Average Discounts /Concessions in % Figure 62 Discount details Average discount percent across the activities is 51%. This should be considered while pricing the package for group tours of school children. 79

87 Response to the concept of the MRCI Centre All the schools interviewed liked the concept of the MRCI Centre and 8 out of them were willing to organize trips for students to visit the same. The balance two highlighted the security risk associated with such a facility for students as well as associated cost to be the key reasons for the same. It might be helpful for the MRCI Centre to address these issues during their marketing efforts. The most wanted features for the MRCI Centre were determined based on the ratings received from the 8 schools for each of the core, add-on and filler features. Large tank + tunnel Walk through tunnel with 360 degree view Walk through tunnel with 180 degree view Large tank with large ocean dwellers and various species Very high high medium low very low Figure 63 Ratings for Core Features Polar Animals (Polar bear, artic foxes etc) 5 3 Penguins Coral Reef displays Swimming with dolphins/ dugongs/ seals Touch Pools Seal/ Sea lion shows Dolphin shows 5 3 Very high high medium low very low Figure 64 Ratings for Add-on Features 80

88 Game zone Marriage Hall/ Ball room Simulator Rides Souvenir/ Gift Shops D theatre Good restaurant/ Cafes Very high high medium low very low Figure 65 Ratings for Filler Features An overall rating was given to identify the most favorable features. Walk through tunnel with 180 degree view was most favored Touch pools were the most favored add-on feature Souvenir/ gift shop was the most favored filler feature These features should be considered while finalizing a high level concept for the MRCI centre. The favorable range of basic fee, fee for add-on features, fee for filler features and total package price was asked and the responses are as follows. 81

89 Rs Rs Rs Rs Rs Rs Rs Rs Number of schools Basic fee Fee for Add-on features Fee for filler features Total package price Figure 66 Favorable price ranges for the MRCI centre selected by the schools Based on the responses an average price is as follows Table 22 Average price Basic entry fee Add on features Filler features Entire Package Average price INR 148 INR 88 INR 115 INR 208 This together with the past spending behavior can be used to get ideal price range for pricing the package for school group tours to the MRCI centre. Schools were also asking their preferences for various educational activities that could be potentially organized in the MRCI centre. These preferences should be considered for deciding the educational activities of the MRCI centre. 82

90 Interactive activities like swimming with dolphins Daylong tour of the Oceanarium 8% 10% Sleepover programs 15% Lecture series 17% Interactive workshops 24% Special movie screening for children 27% Figure 67 Ranking of educational activities Thus schools have shown a high level of interest in organizing student trips to the MRCI Centre. Their preferences in terms of features in the MRCI Centre, educational activities, pricing etc should be considered while developing the final concept for the MRCI Centre Response from the Tour Operators Information on Dwarka trip A typical itinerary of a tour package including Dwarka is: Ahmedabad Jamnagar Dwarka Veraval Somnath Diu Sasan. The months from October to May have the maximum number of tourists to Dwarka. Diwali vacation in particular has the highest tourist flow. On an average, 75% of the tourists plan their trips on their own. Apart from visit to temples & other religious places, tourists visit beaches in their free time. As tourists usually come as a family, budget hotels and 2-3 star hotels are preferred though overall spending is limited in Dwarka. A trip to Dwarka which includes temple visit, food, stay and sight seeing, costs in the range of Rs 2000 to Rs 3000 per person. Response to the MRCI concept and inputs All the tour/bus operators liked the idea of MRCI centre. They expressed that they would be able to convince the tourists to visit the same. All tour/bus operators showed interest for a tie up with such a facility. 9 out of 11 tour operators feel that Dwarka will be a suitable location for the MRCI centre. Alternate locations for the MRCI Centre in the Gulf of Kutch suggested by them include Okha and Mithapur. 83

91 Advertisement through media vehicles was suggested to create awareness about the MRCI centre. As specified by most tour/ bus operators an entry fee of Rs 150 to 200 will be suitable for the tourists to visit the facility. Tour Operators seem to typically develop packages for the higher income group visitors of Dwarka. They have shown positive reaction to the MRCI Centre. Their inputs should be considered for deciding the pricing of the MRCI centre and for formulating the marketing initiatives Finalized Concept for the MRCI Centre Based on the results of the primary survey, primary discussion with industry experts and secondary research a final Concept has been developed for the MRCI Centre Features Education Based on the primary survey with schools in Gujarat, having the following list of popular educational activities will be suitable to the MRCI Centre Special movie screening for school children Interactive educational workshops related to marine life and animal science Lecture series The primary survey also points out that, popular recreational and educational activities are focused for students of grade 5 and above. The educational activities of the MRCI Centre should focus on the same grades. Typical time spent on such activities ranges from 3-8 hrs as per the survey. The activities for students in the MRCI Centre should also be planned to occupy the students for such duration Conservation and Research Research activities would be taken up by collaborating with other organizations. Conservation activities include breeding and preserving endangered species. Conservation will be strengthened by the research activities in terms of expert knowledge and application of improved methods. 84

92 Infotainment Core Features The results of the primary survey highlighted the 360 degree walk through tunnel as the most preferred core feature for the MRCI Centre. The schools have selected the walk through tunnel with 180 degree view as the most favored. The 360 degree tunnel would have more of acrylic material and thus higher manufacturing cost due to its shape. As acrylic accounts for almost 20 % of project cost, this would increase the project cost appreciably. Therefore a walkthrough tunnel with 180 degree is a better option as it provides the visitor with a similar experience and is cheaper than the 360 degree tunnel. Add-on Features The most favored add-on feature was Dolphin Show closely followed by display of Penguins. Creating an environment for the penguins would be very costly. The cost associated with the dolphin show on the other hand depends on the size of tank, seating audience targeted, number of dolphins to be trained etc. Therefore, the MRCI centre can have a small sized dolphin show as its add-on feature. Fillers Filler features mainly act as an additional source of revenue. The popular choices for filler features as per the primary survey were good restaurant/ café and game zone for kids. The MRCI centre can have a good restaurant and café. In addition, based on the favorable response from schools, a souvenir/gift shop can be setup and a small scale game zone can be added The infotainment features suitable for the MRCI centre are summarized below. Table 23 Finalized features of the MRCI centre Education Features Special movie screening for school children Interactive educational workshops related to marine life and animal science Lecture series Conservation and Research Research activities would be taken up by collaborating with other organizations. Conservation activities include breeding and preserving endangered species. Core Feature 4 th generation: Walk through tunnel having 180 view Infotainment Features Add-on Feature Dolphin show Fillers Restaurant Souvenir/Gift shops Game Zone 85

93 Positioning Based on the above features the positioning of the MRCI centre has been determined. Focus on Education and infotainment (spreading awareness, providing education and infotainment) along with Research and Conservation activities Socio-Economic Benefits The MRCI Centre would contribute positively to the social, economic and ecological development of the area and its people Ecological Benefits Marine life conservation Breeding and conservation activities of the MRCI Centre will play an important role in preserving rare and endangered species Marine life research Research institutes will get an opportunity to collaborate with the MRCI Centre to study various species of marine life up close. Scope of research includes improving husbandry methods, developing innovative and exciting new exhibits, contributing to the understanding of the underwater world and applying new discoveries to the conservation of aquatic life. Marine life awareness The various exhibits and related information on them will help in creating public awareness on marine biodiversity and its concerns Social and economic benefits Employment The MRCI centre will create temporary employment during the construction phase. Also it would create several permanent jobs for on-site activities like marketing, operations, maintenance of the MRCI Centre. Infotainment This MRCI centre will act as a premier infotainment destination of the city. It will improve the overall reputation of the city. 86

94 Education Special education programs of the MRCI Centre will help foster knowledge in the domain of marine biodiversity 5.12 Financial Feasibility Key Assumptions for the Financial Model Launch Date It has been assumed that the process of finalizing the PPP partner would be completed by December The construction would start in Jan It would take about 24 months for construction to complete. So the MRCI centre would launch its operations on 1 April Capital Expenditure (Capex) Based on discussions with an international technical consultant, the cost of construction of the facility of the desired scale and scope, cost of specialized works and pre-operative costs would be approximately INR 40 crore. This does not include the cost of land, development costs required etc which has been estimated to be approximately INR 10 crore. Thus the total capital expenditure has been estimated to be INR crore. The break up of the capex has been provided below: Table 24 Capital expenditure split Land Cost Acrylic Cost Construction Cost Exhibits Other Specialized Work Start-up Costs Development Costs INR 3.04 crore INR 8.04 crore INR 13.8 crore INR 3.2 crore INR 1.26 crore INR 9.57 crore INR 6.5 crore Contingencies +10% Total INR crore 87

95 Land cost The land cost has been calculated based on the total land requirement for the project and the cost of land per acre in the desired location. Total Area required for the MRCI Centre Table 25 Land area requirement Area for the aquarium acre 1 Area for facilities like parking etc acre 1 Area for future expansion activities acre 10 Total Area for the MRCI Centre acre 12 The area of the aquarium has been assumed to be 1 acre based on interaction with international technical consultants. In addition, almost same area is required for providing facilities like parking for visitors. Based on interaction with GEC and future development plans around the MRCI centre, an area of 10 acre would be kept aside for future activities Therefore, the total required land is 12 acres Cost of land Based on interaction with real-estate agent in Dwarka, a 5.5 acre plot which is about 1 km from beach is available at INR 40/sq ft. An escalation of 30% of land cost has been assumed. Cost associated with registration of land including registration fees, stamp duty and taxes have been assumed at 12% of land cost. Therefore the land cost is INR 22,65,120 per acre Total Land Cost = Total Area in acre x Land Cost per acre = INR 3.04 Crore Acrylic Cost The total cost of acrylic material was based on the identified dimensions as below. 88

96 0.3 meter acrylic 4 m Entry Exit meter m meter meter 2.1 concrete meter concre Acrylic 30 meter te Tunnel Front View of tank Top View of tank Tank 50 meter long acrylic tunnel Figure 68 Dimensions of tunnel and tank The cost of a 50 m acrylic tunnel as above was obtained from an acrylic manufacturer as INR 2.8 crore. Since acrylic is manufactured only in three countries in the world, it needs to be imported to India. Hence cost of transportation to India by ship as well as import duty and other taxes need to be paid which have been assumed to be 40% of the cost of acrylic. Also, acrylic would be required for developing partitions within the main tank. Assuming that for the tank of above dimensions, 2-3 partitions would be required, the cost has been escalated by 1.05 times. Total Cost of Acrylic is 2.8*(1+40%)*(1+1.05) = INR 8.04 crore Construction Cost Based on discussion with international technical consultant, construction accounts for about 34% to 35% of the project cost (excluding cost of land and development costs) Total Construction Cost = 34.5%*40 = INR 13.8 crore Exhibits Based on discussion with international technical consultant, exhibits account for about 4% to 8% of the project cost (excluding cost of land and development costs). Thus the exhibit cost has been assumed to be around 8%. Total Exhibit Cost = 8%*40 = INR 3.2 crore Other Specialized Work Based on discussion with international technical consultant, specialized works accounts for about 31% of the total project cost which is INR 12.5 crore. This includes Life Support System, Decoration - Interior and Exterior, Acrylic, Exhibits. The Other Specialized Work excludes the acrylic and exhibits. Life Support Systems 89

97 The cost of providing Life Support System for supporting the flora and fauna of a 50 m tunnel aquarium was obtained from a Chinese provider as USD150,000 FOB. About 85% of the system is available locally in India based on discussion with international technical consultants as well as Indian providers. Thus only 15% needs to be imported. However, the cost of the 85% system has been inflated by 10% over the Chinese costs which are typically lower than the Indian cost structure. The balance 15% which needs to be imported would have cost associated with transportation as well as duty and other taxes which have been assumed at 40% of the cost. This would account for the system requirements for the main tank. For providing additional features, extra 10% cost has been built. Total Life Support System Cost = (150000*(1+10%)*50)*(1+15%*40%)*1.1= INR 0.96 crore Decoration - Interior and exterior The balance cost out of the specialized works is the cost of decoration for the interior and exterior of the MRCI Centre. Total Decoration Cost = INR 0.3 crore. Total Cost for Other Specialized Works = INR 1.26 crore Startup Costs Marketing Expense INR 2 crore has been set aside for the marketing efforts. This would include launching television campaigns on popular channels in Gujarat, advertisements in popular newspapers and magazines of Gujarat, for publishing brochures to increase awareness as well as organizing visit to schools in Gujarat for group visits. Total Marketing Expense = INR 2 crore Project Consulting Fee Consultants would be required during the pre-operative stage to monitor the entire development and construction process against the agreed project plan. This would involve tracking the tasks as per the agreed timelines, issue escalation especially in times of delays and identifying project risks which may affect the timelines. Also, consulting assistance would be required for developing RFP and selecting an appropriate technical consultant as well as private developer. The cost for the consulting assistance was assumed to be INR 2 crore based on fees charged by consulting companies for a project of such scale and duration. Total Project Consulting Fee = INR 2 crore 90

98 Salary & Wages pre operative stage It has been assumed that there would be 3 foreigners working full time and 1 foreigner at middle management level to oversee work for 6 months and 1 foreigner at senior level spending about a month. Cost associated with their international travel has also been incorporated. Also 6 month salary for local people hired for operating the aquarium has also been included. Total Salary & Wages pre operative stage = INR 3.44 crore Staff Hiring and Training Staff at various levels would be hired for running the facility. This accounts to about INR 1.14 crore. This local staff would need to be trained during the construction phase of the project itself so that they can start running the facility once it kicks-off operations. Training costs have been built in as one month salary of the local hires as per industry practices. This accounts to an additional INR 0.1 crore. Total Staff Hiring and Training = = INR 1.24 crore Miscellaneous Various other expenses like Company Formation Expense, Expense for receiving regulatory approvals, Ticketing System Cost, Furniture Cost for office and visitors etc have also been assumed. Road Development Costs Road Construction Typically, it costs about INR 8 crore per km for converting a 2 lane highway to a 4 lane highway suitable for vehicles at 100km speed. Using this ballpark figure, for converting a one lane road to a two lane road for normal use, cost of road development has been assumed at one fourth this cost i.e. INR 4 crore. Land Acquisition for developing the road Cost of land for developing the road is as per the rate of land in that specific location. It is assumed to be INR 2.5 crore. Total Road Development Costs = = INR 6.5 crore Operating Expenditure (Opex) The various cost heads for operating expenses have been identified based on analysis of Annual Reports of existing aquariums around the world. The high level break up of cost across these heads has been assumed in line with that experienced by existing aquarium internationally. The 91

99 break up of cost across various years was analyzed to arrive at the final cost break up for the MRCI centre which is as follows Table 26 Operating expenditure split Salaries and benefits 42% LSS and utilities 13% Husbandry related 2% Filler activities related 22% Marketing expenses 6% Professional fees 3% Others 12% The overall operating expense for the first year of operation has been assumed at INR 5 crore. This is based on discussions with international aquarium consultant as well as high-level calculations of operating expense incurred by underwater world ( UWW ) Pattaya, considering its revenue, capex and breakeven of two years. The growth of operating expenditure under each head has been outlined below. FY12 FY13 FY14 FY15 FY16 FY17 Salaries and benefits 15% 15% 15% 10% 10% LSS and utilities 10% 10% 10% 12% 12% Husbandry related 5% 5% 5% 5% 5% Filler activities related 11% 5% 5% 5% 5% Marketing expenses 25% 20% 15% 10% 7% Professional fees 25% 20% 15% 10% 7% Figure 69 Growth of operating expenses Salaries and Benefits Initially a high 15% salary increment has been assumed year on year to be able to hire competent staff and retain them considering the launch of several Marine Facilities around that time in India. The typical organization structure for the MRCI Facility has been outlined below: 92

100 Chairman/ MD Director (Operations) Director (Finance and Marketing) Manager (Operations) Subject Expert (Part time) Manager (Marketing) Manager (Finance and Accounts) Manager (Strategy and Planning) Supervisor (Operations) Supervisor (Admin) Marketing Team Strategy and Planning Team LSS Operations Team Decorations Maintenance Team Finance Team Accounts Team Veterinary Team Team for Upkeep of Fishes Security Team House Keeping Team Ticketing Team Figure 70 Organisation structure of the MRCI centre Life Support Systems and Utilities The costs associated with this head would increase with increasing age of the equipment. Husbandry related The costs associated with food etc for the fauna has been assume to increase at the rate of WPI (Wholesale Price Index) Filler activities related These are costs associated with operating restaurant, gift shop etc. In the initial years, this has been expected to grow at a rate lower than the rate of growth of revenue. Higher the growth in the number of visitors, higher would be the usage of restaurants etc and thus higher the growth in associated expenses. Marketing Expenses - Initially advertising expenses would be high to spread awareness about the concept and its uniqueness. Once some basic level of awareness has been created, then these expenses could increase at nominal rate. Professional Fees This pertains to expenses towards consulting support as well as audit and legal fees. Initially consulting and technical support required would be high. Once the local people get trained then this head would increase at nominal rate Revenue Tourist and visitor flow to Dwarka, proportion of the same likely to visit the MRCI centre and the total package price they are likely to pay are required to calculate the revenue. For 93

101 calculating the revenue in subsequent years the growth rates for the tourists and visitors to Dwarka and for the footfall to the MRCI centre is required. Tourist and visitor flow to Dwarka Tourists are those who stay overnight in Dwarka and Visitors are those who do a morning evening type of visit. The number of tourists and visitors for FY07 and the growth rate for subsequent years is taken as follows. FY07 (available info) Assumed info Visitors to Dwarka 1,629,915 YoY Growth of 5 % Tourists to Dwarka 837,085 YoY Growth of 5 % Figure 71 Tourist and visitor flow to Dwarka Given the current and expected increase in religious tourism in India, increased focus of Tourism Corporation of Gujarat Limited on organizing tour packages to religious places in Gujarat as well as based on interactions with hotels in Dwarka, we expect the tourists to Dwarka to keep increasing year on year at a nominal rate of 5%. Similarly, we expect the number of day time visitors to Dwarka to keep increasing at a nominal rate of 5%. Footfalls for the MRCI Centre Footfalls to the MRCI centre will be calculated based on the Proportion of Tourists (overnight stay) to Dwarka and Proportion of Visitors (same day return) to Dwarka who are likely to visit the MRCI Centre. Footfall to the MRCI Centre as a proportion of tourists (overnight stay) to Dwarka The proportion of tourists to Dwarka who are likely to visit the MRCI centre has been calculated based on the inputs received during the primary survey. The total probability is the product of the Probability based on the respondent s intention to visit the MRCI Centre (Step 1) Probability based on his/her past behavior. (Step 2) Step 1 The probability based on the respondent s intention to visit is calculated as follows. The intention to visit is coded as shown in the following figure. 94

102 Non Zero (x) Intention to visit Zero Probability based on intention to visit 0 Would you visit Dwarka specially for the oceanarium? No Would you visit the oceanarium in your free time while you visit Dwarka? Yes Yes (1) No (0) Coding based on how often you visit Dwarka? 0 1 Non zero intention (x) 0 Non zero intention (x) Non zero intention (x) Definitely visit 1 Probably Visit 0.75 May or may not visit 0.5 Probably not visit 0 Definitely not visit 0 Do you plan to visit Dwarka sometime? 0 or NA 0 Yes (1) Non zero intention (x) Figure 72 Probability based on the respondent s intention to visit the MRCI Centre Step 2 The probability based on past behavior was calculated as follows Frequency of visit for various activities (e.g. movies, water parks etc) was coded using the below table for each respondent Table 27 Coding for frequency of visits More than once a month Once a month Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do Total of number of visits was calculated for each respondent excluding the number for restaurants The number of visits was coded to calculate the probability based on past visit behavior for each respondent 95

103 Table 28 Probability based on number of visits More than 28 visits More then 23 visits More the 18.5 visits More than 16 visits More than 11 visits Less than 11 visits third quartile Median first quartile Once both the above probabilities were calculated, the total probability is calculated Total probability = Probability based on intention to visit x Probability based on past visit behaviour Figure 73 Total probability calculation FY13 FY14 FY15 FY16 FY17 FY18 FY19 Proportion of tourists to Dwarka likely to visit the MRCI Centre 17% 20% 22% 22% 22% 22% 22% Figure 74 Growth rate of proportion of tourists The survey reflects 17% of the tourists would visit the MRCI centre. This has been assumed to increase to 22% by FY15 and thereby remain constant. This is because there would be awareness created about the MRCI centre through advertising and marketing campaigns as well as word of mouth publicity which would attract much more tourists in the initial years. Footfall to the MRCI Centre as a percentage of visitors (same day return) to Dwarka FY13 FY14 FY15 FY16 FY17 FY18 FY19 Proportion of visitors to Dwarka likely to visit the MRCI Centre 9% 11% 12% 12% 12% 12% 12% Figure 75 Growth rate of proportion of visitors The proportion of visitors to Dwarka who are likely to visit the MRCI centre has been assumed to be approximately half of that of the tourists in the first year. This has been assumed to grow at nominal rate for the next two years, lower than that assumed for the tourists. The proportion would be lower because given their one-day travel plans, these people have less free time available at their disposal. 96

104 Proportion of Children in total footfall The proportion of children has been assumed as 50%. Typically people visit Dwarka with family including children as indicated by hotel operators in Dwarka and the choice of visiting the MRCI centre would be driven by interest generated amongst children to a large extent. Pricing for the MRCI Centre Total Package Price (Adults) For FY12, the total package price is INR 225. This has been calculated based on the inputs received during the primary survey. The average spending per head is the weighted average of Indicated Package Price for the MRCI centre (Step 1) Added Package Price for the MRCI centre (Step 2) Average spend per activity based on past behavior (Step 3) Step 1: Calculating the Indicated Package Price Each respondent was asked his/her favorable price range for the entire package and an average price was assigned for the indicated price range as per the below table Table 29 Assigned average price Options for price range (Rs. ) < >500 Assigned Average price (Rs.) Step 2: Calculating the Added Package Price Each respondent was asked his/her favorable price range for the following: 97

105 Entry fee Price for add-ons Price for filler activities Average prices were assigned to each of these based on the table Table 30 Assigned average price Selected price range (Rs. ) < >500 Assigned Average price (Rs.) The sum of the average prices was calculated as follows. Added Package Price = Entry fee + Add-on price + Filler price Step 3: Calculating Average Spend per Activity based on past behavior Frequency of visit for various activities was coded using the look up table below for each respondent Table 31 Coding for frequency of visit More than once a month Once a month Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do Total Spend (Frequency of visit * Spend per visit) was calculated for each respondent excluding spend for restaurants and picnics outside hometown. And average Spend per Activity = (Total Spend) / (total number of visits) 98

106 Final Step Weights were assigned to the Indicated Package Price, Added Package Price and Average spend per activity based on past behavior as follows Table 32 Weights for different prices Component Average spend based on past behavior Weights 20 Indicated Package Price Added Package Price = Total package therefore is as follows Total Package Price = Weighted average of: Indicated package price for the oceanarium Added package price (sum of entry fee, add-on price and filler price) for the oceanarium Average spend per activity based on past behaviour Figure 76 Final package price calculation Note: Only those respondents have been taken into account who gave responses to all of the questions related to price for MRCI Centre. Total Package Price (Children) Table 33 Benchmarks for % of child fee of Adult fee Name of facility Adult fee Child Fee Child fee/ Adult Fee (%) National Aquarium of new zealand INR 445 INR % UWW Pattaya 450 baht 250 baht 55% Shanku water park (mehsana) INR 130 INR 80 62% Water fun park (surat) INR 250 INR % 99

107 Based on the above, on the conservative side, the average spend per head for a child is assumed to be 50% of that of adult. Therefore, for FY12, the total package price for children is INR Growth Rate of Ticket Price A 15% increase every third year has been assumed based on the ticket price growth observed in an international marine facility (underwater world Singapore) Key Financial Results Revenue INR Crore CAGR % FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 FY42 Figure 77 Revenue graph The revenue increases from INR 6.54 Crore in FY13 to INR Crore in FY 42 CAGR for the first five years is 16%. This is primarily driven by increase in footfalls over the initial five years of operation Revenue grows in a step wise manner because of the step wise growth in ticket price Operating Expenses INR Crore CAGR 13% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 FY42 Figure 78 Operating expenditure graph 100

108 Opex increases from INR 5 Crore to INR 83.4 Crore in FY42 CAGR for the first three years is 13%. This is primarily driven by high increase in salary expenses as well as expenses on marketing activities Opex grows at a constant rate from FY17 onwards Capital Infusion Total Project Cost Contribution by developer, INR Crore 41% Contribution by GoG, INR 30.0 Crore 59% Figure 79 Capital expenditure contribution The total project cost by the end of the construction period will be INR Crore Out of this the private party contribution will be INR Crore It has been assumed that the GoG funding is 30 Crores 101

109 First year project requirement Contribution by Developer, INR 20.9 Crores 41% Debt, INR 15.6 Crores 31% Equity, INR 5.3 Crores 10% Contribution by GoG, INR 30 Crores 59% Figure 80 First year project requirement contribution The private player will fund INR 20.9 Crore of the first year project contribution INR crore of this is towards Capex, interest during construction on loan and funding the operating losses INR 15.6 is through long term debt and INR 5.3 is through equity Profit after Tax INR Crore FY13 FY14 FY FY16 FY17 FY FY19 FY20 FY FY22 FY23 FY FY25 FY26 FY FY28 FY29 FY FY31 FY32 FY FY34 FY35 FY FY37 FY38 FY39 FY40 FY41 FY42 Figure 81 PAT The profit after taxes turns positive from FY16 The drop in PAT from FY20 to FY21 is on account of net taxable income after accounting for carry forward losses turning positive resulting in tax payment and thus reducing the overall PAT 102

110 These calculations are based on the assumption that the concession period is 30 years. Two of the planned marine facilities in India, one in Tamil Nadu and the other in Andhra Pradesh, are going to take place under a PPP arrangement with concession periods of 30 and 33 years respectively Key Scenarios Four scenarios were created by changing the footfall, opex and blended price per head of the base case. The project returns and the equity returns in the form of IRR was looked into for each scenario. Base Case Footfall (FY12) Blended price* (FY12) Operational Expenses (FY12) Project Returns IRR Equity Returns IRR 3,87,284 INR INR 5 crore 13.8% 18.1% Figure 82 Base case Scenarios Case Footfall (FY12) Blended price* (FY12) Opex (FY12) Project Returns IRR Equity Returns IRR Pessimistic 1-5% -5% +5% 11.2% 14.2% Pessimistic 2-10% -10% +10% 7.9% 9.6% Optimistic 1 5% 5% -5% 15.9% 21.7% Optimistic 2 10% 10% -10% 17.9% 25.2% Figure 83 Scenarios 5.13 Public Private Partnership for the MRCI Centre A public private partnership (PPP) arrangement would be favorable for the MRCI project. The various advantages of a PPP arrangement for this project have been outlined below. 103

111 Ease of getting private participation Based on the primary interactions with aquarium builders and contractors, there is increasing interest in investing in such projects in India. Better value for Money Given the limited capabilities available within India to develop an MRCI Centre, PPP will offer better value for money for the project in terms of cost efficient procurement of infrastructure as well as facility development Advantages of PPP for the MRCI Center Efficient Operation Being a new area, the private body s involvement will be necessary to ensure efficient operation and to offer good customer service Risk Transfer The risks associated with the project can be shared to a certain extent with the private party using the appropriate PPP arrangement Figure 84 Advantages of PPP for the MRCI centre To be able to successfully implement a PPP, it is necessary to first identify a suitable PPP arrangement for the MRCI Centre Types of PPP arrangements There exist various types of Public Private Partnership arrangements. Under PPP arrangements, a single contract is drawn up between the private organization and public body which covers all elements of the project. Key elements include the following: Designing and building Operation and maintenance Finance Ownership These elements can be combined in a variety of ways to produce a number of different partnership structures. Some of them are shown below: 104

112 Table 34 Different PPP arrangements Schemes Design-Build (DB) Build-Transfer (BT) Build-Transfer-Operate (BTO) Design-Build-Operate (DBO) Build-Operate-Transfer (BOT) Build-Own-Operate-Transfer (BOOT) Design-Build-Finance-Operate Transfer (DBFOT) Build-Own-Operate (BOO) Some of the existing aquariums in the world have effectively utilized PPP arrangements like Build-Own-Operate-Transfer (BOOT). An example of an existing aquarium using this arrangement is as follows. Busan Aquarium Public Body Involved Local Government Private organisation involved The Oceanis Group is a subsidiary of the Living and Leisure Australia Group, a professional investment company in the tourism and leisure sector Construction period One year (Nov 2000-Nov 2001) Mode Busan Aquarium was developed on a BOOT (Build-Own-Operate- Transfer) basis in which the Oceanis Group was the sole investor. The Group continues to operate the Aquarium as part of a 20-year lease Other Details Local government provided foreign investment incentives to the investor Various aquarium projects which are proposed to be built in India are going to take place under Design-Build-Finance-Operate-Transfer (DBFOT) PPP arrangement. 105

113 Table 35 PPP arrangement for proposed aquariums Proposed Aquarium Key Considerations Taraporewala Tamilnadu Kochi Visakhapatnam Public Body involved Government of Maharashtra, Fisheries Department Tamil Nadu Tourism Development Corporation State government and the Union ministry of earth sciences Greater Visakhapatnam Municipal Corporation Responsibility of private party DBFOT DBFOT DBFOT DBFOT Concession Period NA 30 years NA 33 years Ownership Details NA NA 51% stake to private and 49 % to the public body NA Land possession details Lease period 30 year lease. Private body needs to pay market value to public entity NA NA % of turnover share to public body every year NA Minimum of 3 % of gross turnover earned NA NA The DBFOT arrangement is a favorable arrangement for the MRCI Centre considering the lack of in house expertise to develop and operate the facility on its own Project Risks and Mitigation The PPP arrangement for the MRCI Centre should address the risks associated with projects of such type and scale. 106

114 Financing Risks Land Procurement Regulatory Risks Cost- escalation Delay in construction Change of scope Failure to meet specifications Construction Period Risks Development Period Risks Key Risks Force Majeure and other risks Operational Period Risks Maintenance related Competition Support Infrastructure related Force Majeure Termination Figure 85 Key project risks Development Period TYPE RISK MITIGATION Financing There exists a risk of the private party not achieving financial closure within a reasonable time Specify a time period for achieving financial closure. Details about the financing arrangements in terms of amounts and sources including debt and equity components should be finalized Concessionaire should be penalized for delays Land Procurement Risk exists if required land is not acquired on time. In such a case, concessionaing authority may need to compensate monetary damages to private party Performance security should be obtained from the Concessionaire Concessioning authority should ensure land availability before the bidding stage itself Discussions should be initiated with forests department, tourism department, local municipality etc to get relevant approvals and consents before hand. Local social mood should be assessed to anticipate any protest against the prescribed land use. 107

115 TYPE RISK MITIGATION There may be associated social risks in terms of opposition from locals Regulatory Risk Risk of delay in acquiring relevant approvals Risk with meeting regulatory standards and norms Regulatory approvals required, the relevant authorities and typical timelines should be identified Discussion should be initiated with relevant authorities like forest department, local municipalities, tourism department etc initially itself to obtain their buy-in Project may be given to international contractors with established credentials to be able to meet prescribed technical norms Construction Period TYPE RISK MITIGATION Cost Escalation Delay in project completion Additional cost to acquire permits in case performance requirements are added/enhanced by the authorized body Cost escalations can arise due to market fluctuations Delay of project completion could be due to various factors like delay in procuring materials, equipment etc Costs associated with permits should be assessed and suitably incorporated in the finalized business plan Concessioning authority should enter into a fixed price contract to transfer risk of cost escalations to the private party Agree on a limit to the cost escalation within which the private party would share the risk. Above this set limit, concessioning authority would also share the additional cost in a predecided manner. Develop and agree on a Project Completion Schedule including interim deliverables as well as commercial operations date with the concessionaire The damages payable for delay by the Concessionaire needs to be adequately covered 108

116 TYPE RISK MITIGATION Failure to meet specifications Change of scope This delay will effect the planned launch date and may result in additional costs. Failure to achieve sync with the predefined norms, equipment specifications and display standards may result in additional costs. Any changes in law, introduction of new technology, change in market scenario etc might force a change in scope in the contracts Project may be given to international contractors with established credentials to avoid delays in project completion The cost of rectification should be covered in the construction contracts Concessioning authority should have the final call on any change of scope related issues Proper procedure has to be defined in the agreement for change of scope which should cover finance considerations and variation of scope allowed Operational Period TYPE RISK MITIGATION Maintenance Related Non-adherence to operation and maintenance standards may lead to an inefficient operation of the facility It may also result in breakdown and accidents Such risks may be transferred to O&M operator through suitable contractual provisions For any breakdown that can be attributed to the operation of the system, the penalties must be transferred to the O&M operator Competition Being an infotainment venue, a similar venue in the same/near-by area can pose a serious Clause mentioning that the concessionaire or any of its subsidiaries cannot be directly or indirectly related to any aquarium related business within a certain radius should be included 109

117 TYPE RISK MITIGATION threat to the footfall for this facility Support Infrastructure Revenue Related Lack of availability of 24x7 supply of water, electricity etc poses a serious threat to the operation of the facility Revenue will be impacted if the predicted footfall is not achieved Need to secure higher priority status from the Government Sufficient back-up should be available at all times both for water and electricity Concessioning authority should share the revenue risk with the private party by taking responsibility of ensuring a minimum number of visitors to the MRCI Centre Concessioning authority should develop a plan for ensuring the footfall target and involve tourism department in the same Other Risks TYPE RISK MITIGATION Force Majeure Force Majeure events like cyclones, flooding, destruction due to rising sea level and other such natural calamities and unforeseen events can cause significant negative impact on the project including termination of the project Termination Termination due to either party s default could The project should be insured appropriately against any natural calamity possible The MRCI Centre structure should be designed appropriately to sustain any rise in sea level. Plan of action in any force majeure event, for the concessionaire and concessioning authority should be clearly laid out in the agreement Consequences of termination due to the concessionaire s default should be clearly put in the agreement/ contract to avoid any disputes. 110

118 TYPE RISK MITIGATION result in significant cost and time overruns Appropriate penalties must be mentioned PPP arrangement for the MRCI Centre Design-Build-Finance-Operate-Transfer arrangement with the private party appears favorable for the MRCI Centre. Based on the financial model and expected returns of private developers in projects of similar tenure, the optimum concession period as per the pre-feasibility is 30 years. The various risks faced in such an arrangement could be mitigated by taking appropriate steps as outlined in the previous section. The financing arrangement and operating parameters for such an arrangement have been detailed below: Financing Arrangements The Private Party shall Design, Build, Finance, Operate and Transfer the Aquarium as per the Detailed Business Plan approved by the concessioning authority. Concessioning authority grants to the Private Party : Viability gap funding From the above funding INR 10 Crore would be in kind in the form of land acquisition and development, road and infrastructure development, and costs incurred in acquiring regulatory approvals Remaining capital cost shall be borne by the private party All other duties, charges, fees, costs and expenses shall be borne and paid by the Private Party Operating Parameters An effective date is defined and the construction should be completed within specified number of months from the effective date as agreed in the agreement The Private Party shall Manage, operate and maintain the aquarium and regulate the use thereof; 111

119 Demand, collect and appropriate charges from visitors and users; Bear and pay all costs, expenses and charges in connection with or incidental to the performance of the obligations of the Private Party under the agreement Flexibility should be given to the private party in case of future expansion activities 5.14 Implementation Plan There are certain key steps that define the way forward for the MRCI Centre. The road map for the implementation plan is as follows. Finalize a Private Partner Commercial Operations Date 8 Finalize and obtain Agreement on the Detailed Feasibility Report from key stakeholders Commission development of Detailed Feasibility Report Start Program Management of the development and construction period Sign the Concession Agreement Pre-feasibility Study Obtain Agreement on the Pre-feasibility report from key stakeholders Obtain regulatory approvals and procure the required land Figure 86 Implementation roadmap Details of Key Steps The details of the critical steps outlined above are as follows. 112

120 Agreement on the Pre-feasibility report from key stakeholders Step 1 Based on the Pre feasibility report, an Agreement and a Go- Ahead to be received from the key stake holders of this project (GoG, WB, Forests Department and Tourism Department) Commission development of Detailed Feasibility Report Step 2 Draft RFP to invite consultants to develop a Detailed techno-commercial Feasibility Report Evaluate the response to the RFP and select the consultant Development and Agreement on the Detailed Feasibility Report Step 3 Detailed technical and financial feasibility study Detailed concept plan Technical specifications and Operational standards for implementation on PPP basis Agreement on the Detailed Feasibility Report from key stakeholders Regulatory approvals and Land procurement Step 4 Preparation of applications in prescribed format and required documentation for various approvals Acquire relevant regulatory approvals for setting up the MRCI Center Procure required land Finalize a Developer Step 5 Select a consortium comprising of financial, commercial and legal consultants to prepare the Concession Agreement and the RFP Document Invite bids from Developers Evaluate the bids and select the Developer Sign the Concession Agreement Step 6 Agree on Time schedule Payment details and mechanism Technical specifications to follow Risk transfer mechanisms Program management during development and construction period Step 7 Monitor the execution of the project based on the interim milestones identified Ensure timely release of funds for the project Figure 87 Details of key implementation steps Time schedule The sequence of activities and the corresponding time required till the launch of commercial operations is shown in the time schedule below: 113

121 FY2010 FY2011 FY2012 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Step 1 Agreement on the Prefeasibility report from key stakeholders Step 2 Commission development of Detailed Feasibility Report Step 3 Development and Agreement on the Detailed Feasibility Report Step 4 Regulatory approvals and Land procurement Step 5 Finalize a Private Partner Step 6 Sign the Concession Agreement Step 7 Program management during development and construction period Figure 88 Time schedule for implementation The MRCI centre would thus launch its operations on April 1,

122 6 Appendices 6.1 Questionnaires for primary survey Questionnaire for primary survey in Dwarka I. INTERNAL DATA Date Start Time End Time II. CUSTOMER DATA Name Age Contact Number Respondent Type Gender Household Income 1. Residents of Dwarka 2. Tourist in Dwarka Male Female Rs. 1 to 4 lakh Rs. 4 to 7 lack Rs. 7 to 10 lack Above Rs. 10 lakh SEC (to be determined based on the responses to questions below) Occupation of Chief Wage Earner (person in your household who makes the highest contribution to your 115

123 household income) Education of Chief Wage Earner Fill the SEC in the table above based on the below classification: Education Occupation Illiterate School Upto 4 Years School 5-9 years SSC/ HSC Some College but not Graduate Graduate/ Post- Graduate- General Graduate/ Post- Graduate- Professional Unskilled workers 1 E2 E2 E1 D D D D Skilled workers 2 E2 E1 D C C B2 B2 Petty traders 3 E2 D D C C B2 B2 Shop owners 4 D D C B2 B1 A2 A2 Businessmen/Indu strial-lists with no. of employees None 5 D C B2 B1 A2 A2 A C B2 B2 B1 A2 A1 A B1 B1 A2 A2 A1 A1 A1 Self-employed professionals 8 D D D B2 B1 A2 A1 Clerical / Salesmen 9 D D D C B2 B1 B1 Supervisory level A D D C C B2 B1 A2 Officers/ Executives-Junior Officers/ Executives - Middle/Senior B C C C B2 B1 A2 A2 C B1 B1 B1 B1 A2 A1 A1 116

124 III. TRAVEL ARRANGEMENT 1 Where do you stay? Dwarka Gujarat (outside Dwarka) Other Indian states (Apart form Gujarat) Please specify: NRI Foreigner If response is Dwarka, move to section IV, else continue 2 What is the purpose of your visit? Religious Leisure Business Personal (e.g. meeting relatives) Others (please specify ) 3 How often do you visit Dwarka? Atleast once a month 3-4 times a year Once in 6 months Yearly First visit Others (please specify ) 117

125 4 Which day do you prefer visiting? (Saturday, Sunday, Public Holiday) Weekday Festival Days 5 What is the duration of your trip? Same day return Overnight stay 2 Days 3 days Others (please specify ) 6 Is your itinerary for the trip completely planned (in terms of things to do and corresponding timing)? Yes No 7 Did you take the help of a tour operator? Yes No 8 Apart from the temple visit, do you have anything else planned out? Yes No 118

126 If yes, please provide details? 9 How much would this trip cost you per head? <Rs 500 Rs Rs Rs > Rs What is the breakup of cost in terms of food, stay, travel etc? Food Stay Travel Others 11 Are the stay, food, transport facilities available as per you requirements? Yes No 12 If No, are you willing to spend more if the facilities are better? Yes No 13 How much free time do you have on hand during this trip? Less than 2hr 2hr 3 hr 119

127 3hr 4 hr More than 4 hrs 14 Would you want to indulge in some entertainment activity in this free time? Yes No 15 If no, Why? If yes, continue, else move to Section IV 16 Which of these activities would you want to indulge in? Visit to other temples Trip to beaches and coastal areas Restaurant Movie Others (please specify ) IV. ENTERTAINMENT BEHAVIOUR 17 Typically what do you do for entertainment in your normal life? And how often do you do the same? Eating out at restaurants More than once a month Once a month 120

128 Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Watching movies/ cinema Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Sightseeing places of interest like museum, aquarium/ Zoo, planetarium Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Amusement Park/ Water Park Once a month Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year 121

129 Once a year Don t do More than once a month Once a month Picnic/ outing to location within hometown - beaches, lakes Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Picnic/ outing to locations outside hometown Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do 18 Please rank these entertainment options in terms of your preference from 1 to 6 ( 1 being highest and 6 being the lowest preference) (Tick the appropriate box) Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ Zoo, planetarium Amusement Park/ Water Park RANK 122

130 Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown 19 For the option ranked as 1 (top most), please provide the reason behind it being the most preferred option. 20 Typically how much time do you spend per visit? Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr 21 Typically these outings are with a group of how many people? Eating out at restaurants Alone > 7 Watching movies/ cinema Alone > 7 Sightseeing places of interest like museum, aquarium/ Alone > 7 zoo, planetarium Amusement Park/ Water Alone > 7 123

131 Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown Alone > 7 Alone > 7 22 How much money do you spend per person? Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs

132 23 Do you purchase souvenirs when you go out of town? Yes No V. OCEANARIUM 24 Have you ever heard of a large public aquarium/ Oceanarium? Yes No 25 If yes, could you describe your idea of it? Show the Oceanarium concept card 26 Based on this new concept that you just saw, please tell us what all did you like about this concept? 27 Based on this new concept, which of the following reflects the extent to which you liked it? Liked it a lot Liked it a little Neither liked it nor disliked it Disliked it a little Disliked it a lot 125

133 28 Based on this new concept, please tell us what you did not like about this concept? 29 You have read the description of a proposed Oceanarium. Please choose a phrase that best describes your intention to visit this Oceanarium. I would definitely visit I would probably visit I may or may not visit I would probably not visit I would definitely not visit If selected last two options, Why not? If selected any of the first three options then continue, else end 30 What would you want to see from the below list? (Give rating, most wanted (1) to least wanted (5)) (Tick as appropriate) Show cards for explaining the features CORE FEATURES Large tank with large ocean dwellers and various species (3G) Walk through tunnel with 180 degree view RATING

134 Walk through tunnel with 360 degree view Large tank + tunnel ADD ON FEATURES Dolphin shows Seal/ Sea lion shows Touch Pools Swimming with dolphins/ dugongs/ seals Coral Reef displays Penguins Polar Animals (Polar bear, artic foxes etc) FILLERS Good restaurant/ Cafes 4D theatre Souvenir/ Gift Shops Simulator Rides Marriage Hall/ Ball room Game zone 31 There will be a basic entry fee for the tour through the underwater tunnel (which will give you a feeling of being underwater and will allow you to view the sea creatures at close range). It would take about minutes. How much would you want to pay for this? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs

135 32 How much are you ready to pay for each of add-on features like the dolphin/ sea lion/ seal shows/ touch pools over and above the entry fee? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to pay for the entire package per person? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to spend on other filler features like 4D theatre, simulator rides, game zone etc? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much time do you want to spend in the Oceanarium? < 1hr 1hr 2hr 2hr 3 hr 3hr 4 hr 4hr 5 hr 36 The Oceanarium is being planned in Dwarka. Would you want to plan a trip to Dwarka to visit the Oceanarium? Yes No 128

136 37 Would you want to visit it in your free time while you are in Dwarka? Yes No If No, why? 38 How much time are you willing to spend in traveling to this Oceanarium from temple/ place of stay? < 20 min min 41 min 1 hr >1 hr 39 Would you visit this Oceanarium again in your subsequent trips? Yes No 40 If no, what if new features are added? Yes No Questionnaire for primary survey in Ahmedabad/ Vadodara/ Saputara I. INTERNAL DATA Date 129

137 Start Time End Time II. CUSTOMER DATA Name Age Contact Number Type of Respondent Gender Household Income Occupation of Chief Wage Earner (person in your household who makes the highest contribution to your household income) Education of Chief Wage Earner SEC 1. Resident ofa. Ahmedabad b. Vadodara c. Saputara 2. Tourists ofa. Ahmedabad b. Vadodara c. Saputara Male Female Rs. 1 to 4 lakh Rs. 4 to 7 lack Rs. 7 to 10 lack Above Rs. 10 lakh 130

138 Fill the SEC in the table above based on the below classification: Education Illiterate School Upto 4 Years School 5-9 years SSC/ HSC Some College but not Graduate Graduate/ Post- Graduate- General Graduate/ Post- Graduate- Professional Occupation Unskilled workers 1 E2 E2 E1 D D D D Skilled workers 2 E2 E1 D C C B2 B2 Petty traders 3 E2 D D C C B2 B2 Shop owners 4 D D C B2 B1 A2 A2 Businessmen/Indu strial-lists with no. of employees None 5 D C B2 B1 A2 A2 A C B2 B2 B1 A2 A1 A B1 B1 A2 A2 A1 A1 A1 Self-employed professionals 8 D D D B2 B1 A2 A1 Clerical / Salesmen 9 D D D C B2 B1 B1 Supervisory level A D D C C B2 B1 A2 Officers/ Executives-Junior Officers/ Executives - Middle/Senior B C C C B2 B1 A2 A2 C B1 B1 B1 B1 A2 A1 A1 III. ORIGIN 1 Where do you stay? Ahmedabad/ Vadodara/ Saputara Gujarat (outside the above place) Other Indian states (Apart form Gujarat) 131

139 Please specify: NRI Foreigner IV. ENTERTAINMENT BEHAVIOUR 2 Typically what do you do for entertainment in your normal life? And how often do you do the same? More than once a month Once a month Once in 2-3 months/ About 4-6 times a year Eating out at restaurants Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Once in 2-3 months/ About 4-6 times a year Watching movies/ cinema Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Sightseeing places of interest like museum, aquarium/ Zoo, planetarium Once a month Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year 132

140 Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Amusement Park/ Water Park Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Picnic/ outing to location within hometown - beaches, lakes Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do More than once a month Once a month Picnic/ outing to locations outside hometown Once in 2-3 months/ About 4-6 times a year Once in 4-5 months/ About 3 times a year Once in 6 months/ About 2 times a year Once a year Don t do 133

141 3 Please rank these entertainment options in terms of your preference from 1 to 6 ( 1 being highest and 6 being the lowest preference) (Tick the appropriate box) Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ Zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown RANK 4 For the option ranked as 1 (top most), please provide the reason behind it being the most preferred option. 5 Typically how much time do you spend per visit? Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr < 1hr 1hr 2hr 3hr 4hr 5hr 6hr 7hr 8hr >8hr 134

142 6 Typically these outings are with a group of how many people? Eating out at restaurants Alone > 7 Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes Picnic/ outing to locations outside hometown Alone > 7 Alone > 7 Alone > 7 Alone > 7 Alone > 7 7 How much money do you spend per person? Eating out at restaurants Watching movies/ cinema Sightseeing places of interest like museum, aquarium/ zoo, planetarium Amusement Park/ Water Park Picnic/ outing to location within hometown - beaches, lakes <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs 2501 <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs

143 Picnic/ outing to locations outside hometown <Rs 100 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs > Rs Do you purchase souvenirs when you go out of town? Yes No V. DWARKA TRAVEL ARRANGEMENT 9 Have you visited Dwarka? Yes (Go to Q10) No If no, do you plan to visit Dwarka sometime? Yes No If no, why not? (Go to section VI) 10 What was the purpose of your visit? Religious Leisure Business Personal (e.g. meeting relatives) Others (please specify ) 136

144 11 How often do you visit Dwarka? Atleast once a month 3-4 times a year Once in 6 months Yearly First visit Others (please specify ) 12 Which day do you prefer visiting Dwarka? (Saturday, Sunday, Public Holiday) Weekday Festival Days 13 What was the duration of your trip? Same day return Overnight stay 2 Days 3 days Others (please specify ) 14 Was your itinerary for the trip completely planned (in terms of things to do and corresponding timing)? Yes No 137

145 15 Did you take the help of a tour operator? Yes No 16 Apart from the temple visit, did you have anything else planned out? Yes No If yes, please provide details? 17 How much did that trip cost you per head? <Rs 500 Rs Rs Rs > Rs What was the breakup of cost in terms of food, stay, travel etc? Food Stay Travel Others 19 Were the stay, food, transport facilities available as per you requirements? Yes No 138

146 20 If No, are you willing to spend more if the facilities are better? Yes No 21 Typically how much free time did you have on hand during your trip? Less than 2hr 2hr 3 hr 3hr 4 hr More than 4 hrs 22 Did you want to indulge in some entertainment activity in that free time? Yes No 23 If no, Why? 24 If yes which of these activities would you want to indulge in? Visit to other temples Trip to beaches and coastal areas Restaurant Movie Others (please specify ) 139

147 VI. OCEANARIUM 25 Have you ever heard of a large public aquarium/ Oceanarium? Yes No 26 If yes, could you describe your idea of it? Show the Oceanarium concept card only & explain it in detail. 27 Based on this new concept that you just saw, please tell us what all did you like about this concept? 28 Based on this new concept, which of the following reflects the extent to which you liked it? Liked it a lot Liked it a little Neither liked it nor disliked it Disliked it a little Disliked it a lot 29 Based on this new concept, please tell us what you did not like about this concept? 140

148 30 You have read the description of a proposed Oceanarium. Please choose a phrase that best describes your intention to visit this Oceanarium. I would definitely visit I would probably visit I may or may not visit I would probably not visit I would definitely not visit If selected last two options, Why not? If selected any of the first three options then continue, else end 31 What would you want to see from the below list? (Give rating, most wanted (1) to least wanted (5)) (Tick as appropriate) Show cards for explaining the features CORE FEATURES Large tank with large ocean dwellers and various species (3G) Walk through tunnel with 180 degree view Walk through tunnel with 360 degree view RATING Large tank + tunnel ADD ON FEATURES Dolphin shows Seal/ Sea lion shows 141

149 Touch Pools Swimming with dolphins/ dugongs/ seals Coral Reef displays Penguins Polar Animals (Polar bear, artic foxes etc) FILLERS Good restaurant/ Cafes 4D theatre Souvenir/ Gift Shops Simulator Rides Marriage Hall/ Ball room Game zone 32 There will be a basic entry fee for the tour through the underwater tunnel (which will give you a feeling of being underwater and will allow you to view the sea creatures at close range). It would take about minutes. How much would you want to pay for this? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to pay for each of add-on features like the dolphin/ sea lion/ seal shows/ touch pools over and above the entry fee? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs

150 34 How much are you ready to pay for the entire package per person? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to spend on other filler features like 4D theatre, simulator rides, game zone etc? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much time do you want to spend in the Oceanarium? < 1hr 1hr 2hr 2hr 3 hr 3hr 4 hr 4hr 5 hr 37 The Oceanarium is planned in Dwarka. Would you plan a trip to Dwarka to specially visit the Oceanarium? Yes No 38 Would you want to visit the Oceanarium in your free time while you visit Dwarka? Yes No If No, why? 143

151 39 How much time are you willing to spend in traveling to this Oceanarium from place of stay? < 20 min min 41 min 1 hr >1 hr 40 Would you visit this Oceanarium again in your subsequent trips? Yes No 41 If no, what if new features are added? Yes No Questionaire for Primary Schools I. INTERNAL DATA Date Start Time End Time II. CUSTOMER DATA Name of School Name of Interviewee 144

152 Designation III. SCHOOL RELATED DATA 1 What is the ownership type of the school? Government Aided Private Trust owned 2 What is the total student strength in terms of number of sections and number of students per section across grades? LEVEL Number of sections Number of students per section Kindergarten LKG/HKG Primary Std 1 to 4 Secondary Std 5 to 7 Secondary Std 8 to 10 Higher Secondary Std 11 & 12 TOTAL 3 Which of the following recreational activities does the school organize for the students? Recreational/ Extracurricular Activities Visiting a manufacturing facility Visiting places of historical or scientific interest Picnic to locations within city parks etc Amusement Park/ Water Park Watching movies/ cinema Nature treks to locations around the city (1 day trips) Excursions to locations outside the city (2-4 day trips) If yes, typical places (please specify: ) Others (please specify: ) 145

153 4 Which of these recreational activities are applicable to specific grades? Recreational/ Extracurricular Primary Secondary Secondary 11 th - 12 th Activities (1-4) (5-7) (8-10) Visiting a manufacturing facility Visiting places of historical or scientific interest Picnic to locations within city parks etc Amusement Park/ Water Park Watching movies/ cinema Nature treks to locations around the city (1 day trips) Excursions to locations outside the city (2-4 day trips) Others (please specify ) 5 How is the funding done for these recreational activities? Recreational/ Extracurricular Cost per head Activities School s fund Source of fund Visiting a manufacturing facility Borne by the students Partly borne by the school and balance by the students School s fund Visiting places of historical or scientific interest Borne by the students Partly borne by the school and balance by the students School s fund Picnic to locations within city parks etc Borne by the students Partly borne by the school and balance by the students 146

154 School s fund Amusement Park/ Water Park Borne by the students Partly borne by the school and balance by the students School s fund Watching movies/ cinema Borne by the students Partly borne by the school and balance by the students School s fund Nature treks to locations around the city (1 day trips) Borne by the students Partly borne by the school and balance by the students School s fund Excursions to locations outside the city (2-4 day trips) Borne by the students Partly borne by the school and balance by the students School s fund Others (please specify ) Borne by the students Partly borne by the school and balance by the students 6 Do you avail of any discounts/ concessions on any of these activities? Recreational/ Extracurricular Discount %/ Concession details Activities Visiting a manufacturing facility Yes No Visiting places of historical or scientific interest Yes No 147

155 Picnic/ outing to locations within city parks etc Amusement Park/ Water Park Watching movies/ cinema Nature treks to locations around the city (1 day trips) Excursions to locations outside the city (2-4 day trips) Others (please specify ) Yes No Yes No Yes No Yes No Yes No Yes No 7 What is the duration of these activities? Recreational Activities Visiting a manufacturing facility Visiting places of historical or scientific interest Picnic to locations within city parks etc Time spent < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more 148

156 Amusement Park/ Water Park Watching movies/ cinema Nature treks to locations around the city ( 1 day trips) Excursions to location outside the city (2-4 day trips) Others (please specify ) < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more < 2 hr 2-3 hrs 4-5 hours 6-7 hrs < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more < 2 hr 2-3 hrs 4-5 hours 6-7 hrs 8-10 hrs One day about 12 hrs Overnight stay or more 8 Does your school also conduct / organize educational workshops over and above the requirements of the prescribed syllabus for the benefit of the students? Yes No 149

157 If yes, which of these subject areas do you normally organize such workshops? Physics Chemistry Animal Science Marine Life Astronomy Others (Please specify ) 9 Does your school have any tie-ups with any organizations to promote learning in these fields? Yes No If yes which ones? How do you decide which recreational activities to participate in? Also budget, time to be spent etc? IV. OCEANARIUM 11 Have you ever heard of a large public aquarium/ Oceanarium? Yes 150

158 No 12 If yes, could you describe your idea of it? Show the Oceanarium concept card 13 Based on this new concept that you just saw, please tell us what all did you like about this concept? 14 Based on this new concept, which of the following reflects the extent to which you liked it? Liked it a lot Liked it a little Neither liked it nor disliked it Disliked it a little Disliked it a lot 15 Based on this new concept, please tell us what you did not like about this concept? 16 You have read the description of a proposed Oceanarium. Please choose a phrase that best describes the school s interest in taking students to visit this Oceanarium. We would definitely visit We would probably visit We may or may not visit 151

159 We would probably not visit We would definitely not visit If selected last two options, Why not? If selected any of the first three options then continue, else end 17 From the below list of features, what would the students be most interested in? (Give rating, most wanted (1) to least wanted (5)) (Tick as appropriate) Show cards for explaining the features CORE FEATURES Large tank with large ocean dwellers and various species (3G) Walk through tunnel with 180 degree view Walk through tunnel with 360 degree view RATING Large tank + tunnel ADD ON FEATURES Dolphin shows Seal/ Sea lion shows Touch Pools Swimming with dolphins/ dugongs/ seals Coral Reef displays Penguins 152

160 Polar Animals (Polar bear, artic foxes etc) FILLERS Good restaurant/ Cafes 4D theatre Souvenir/ Gift Shops Simulator Rides Marriage Hall/ Ball room Game zone 18 There will be a basic entry fee for the tour through the underwater tunnel (which will give you a feeling of being underwater and will allow you to view the sea creatures at close range). It would take about minutes. How much should be charged for this? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much per student are you ready to pay for each of add-on features like the dolphin/ sea lion/ seal shows/ touch pools over and above the entry fee? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to pay for the entire package per student? <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much are you ready to spend on other filler features like 4D theatre, simulator rides, game zone etc per student? 153

161 <Rs 20 Rs Rs Rs Rs Rs Rs Rs Rs > Rs How much time do you want the students to spend in the Oceanarium? < 1hr 1hr 2hr 2hr 3 hr 3hr 4 hr 4hr 5 hr > 5 hr 23 What kind of discounts are you expecting for student groups for such a place? 10% 15% 20% 25% 30% Others (Please specify ) 24 Which grades would this Oceanarium visit be suitable for? (Can tick more than one option) Primary (1-4) Secondary (5-7) Secondary (8-10) 11 th and 12 th 154

162 All the above 25 Please rank the educational activities in terms of your school s preference from 1 to 6 (1 being highest and 6 being the lowest preference) (Mark the appropriate box)? Special movie screening for children related to marine life Lecture series Sleepover programs (explain showing card) Interactive workshops Daylong tour of the Oceanarium explaining its working, marine life and fun activities Interactive activities like swimming with dolphins, dugongs etc RANK 26 The Oceanarium is planned in Dwarka. Would you plan a field trip to Dwarka for the students to specially visit the Oceanarium? Yes No 27 How much time are you willing to spend in traveling to this Oceanarium from place of stay? < 20 min min 41 min 1 hr >1 hr 155

163 28 Would you take the students to the Oceanarium more than once? Yes No 29 If no, what if new features are added? Yes No Questionnaire for primary survey with Tour Operators I. INTERNAL DATA Date Start Time End Time II. CUSTOMER DATA Name of the Company Years of Existence Scope of Activities III. DEMOGRAPHICS Typically how many people visit Dwarka in a year? 156

164 Out of this, how many repeat visitors? What is the profile of visitors in terms of: Gender Age group Origin - within Gujarat, rest of India, NRI, foreigners? IV. TIME AVAILABILITY Is there seasonality in the no of tourists visiting Dwarka? If yes, which months have higher visitors? What is the average duration of trip? What is the typical itinerary for the trip? How much leisure/relaxation time (time other than temple visit) do people keep in their tour plan to Dwarka? What are the other activities that people indulge in apart from the Dwarka temple visit? 157

165 What could be potential activities to occupy people in their free time? V. SPENDS What proportion of tourists plan their trips on their own and what proportion takes tour operators help? How much does a trip to Dwarka (whole package - temple visit, food, stay, site seeing) cost (a range)? What kind of lifestyle is usually possible in Dwarka for tourists (classes of hotels, travel mode (ac cabs), restaurants available)? Is spending in Dwarka limited by the availability of avenues? VI. CONCEPT How does the idea of setting up an Oceanarium sound to you-would it attract tourists? (explain what is an Oceanarium before asking this Q) What is your expectation from such a place (different kinds of features, activities expected)/what would make it attractive for tourists? 158

166 Will you be able to convince a tourist to visit such an Oceanarium? How difficult would it be to convince? What do you think is the ideal fee to attract maximum visitors? Which will be the best place in/around Dwarka to set up an Oceanarium (considering distance from temple, accessibility etc)? Do you think Dwarka is the right place to set up an Oceanarium? If yes why, if no which will be a better alternative? What will ideal add-ons to the Oceanarium (restaurant, entertainment zone, movie hall, gaming zones etc)? What kind of promotional activities should the Oceanarium take up to attract tourists? What kind of tie-ups can be developed with tour operators, tourism boards etc? Will you be interested in tie-up with Oceanarium board? 159

167 1. Yes (Continue) 2. No (Go to next section) Reason for No What kind of support you expect from such Oceanarium board? VII. COMPETITION Is there any other tourist place similar to the above idea in Gujarat? Will the uniqueness attract tourists? What kind of footfalls, ticket, attractions are there in Water Parks/ Amusement Parks in Gujarat? 6.2 Concept Cards A concept card was made for the purpose of explaining the Oceanarium concept to the respondents and to explain the core, add-on and filler features associated with it. This helped the respondents visualize the concept and features being proposed and thus was better prepared to state their interest levels. 160

168 6.2.1 Concept Overview Card 161

169 162

170 6.2.2 Features Card 163

171 164

172 6.3 Meetings Held Meetings facilitated by GEC Dr. Nanda, Principal Secretary, MoEF Pradeep Khanna, PCCF, Gujarat Mr. Anup Shukla, IFS, MD, Tourism Development Corporation P. H. Sata, DCF, Marine national part and sanctuary Dr. Jethani, Fisheries Research, Okha Jayanti Bhai, Founder, Scuba and Sports Club, Dwarka Others C.B.Sakhale, Curator, Taraporewala Aquarium 165