Chapter 1: Project Overview & Justification 1.1 Project Overview

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EIA Airport Hotel Ltd- Development of Holiday Inn Airport Hotel at Plaine Magnien Page 8 HOLIDAY INN AIRPORT HOTEL Plaine Magnien ENVIRONMENTAL IMPACT ASSESSMENT Chapter 1: Project Overview & Justification 1.1 Project Overview The SSR International Airport is expanding to accommodate expected growth in passenger numbers and air freight. Long term passenger demand is forecast to reach some 5.3 million passengers in 2022 1. A new dedicated passenger terminal is under construction to satisfy the forecast passenger growth. The development of a hotel complex development is consistent with international standard of providing for tourist and hospitality related development in the vicinity of the airport to meet the demand of transit passengers waiting for their connection flights as well as short stay passengers. Airport Hotel Ltd., based on market research that indicates a hotel from around 120 to 160 rooms could be suitable close to the Airport, directed at mid-market accommodation (4-4½ stars). The facilities should include a restaurant, day-use conference room, meeting rooms and board rooms, sports and fitness centre, a wellness centre and swimming pool. The style of rooms in the hotel should be predominately standard level rooms, with some deluxe rooms and limited suites. Furthermore the hotel complex should be sited and designed so that it does not breach the Obstacle Limitation Surfaces (OLS) associated with airport runways, be located close to the Airport Terminal, with a number of flights arriving and departing daily and the hotel locality within 5 minute drive time to the coast. Airport Hotel Ltd has identified a site close to the airport terminal for the development of an internationally branded 4 star airport hotel with the Intercontinental Hotel Group owner of the Holiday Inn Hotel Brand. In the main the hotel Project will consist of inter alia: One hundred and forty (140) rooms including three (3) accessible rooms, two(2) Senior Suites and seven (7) Executive Suites Seven (7) subdividing Conference rooms + one (1) Banqueting room, all with garden break out A la carte Restaurant with large view terrace Bar lounge with large view terrace North-west facing pool Terrace with stepped, rim-flow pool Sports and fitness centre Health and Spa 1.2 Hotel Concept Holiday Inn is one of the world s largest hotel brands and is synonymous with consistency and reliability of standards and service. The new-generation Holiday Inn concept combines this reputation with state-of-the art modern design. 1 source: Outline Planning Scheme for Grand Port Savanne District Council Area- Approved Version (September 2006)

EIA Airport Hotel Ltd- Development of Holiday Inn Airport Hotel at Plaine Magnien Page 9 Whilst carrying a global brand name, the development team is committed to creating a 4-star hotel product that is quintessentially Mauritian in design and in character, and one that harnesses sustainable design initiatives to create a new, modern Mauritian vernacular that touches the earth as lightly as possible. The unique quality of the Site, including its botanical diversity, has influenced the hotel design so that the hotel concept is more a resort than an airport hotel. Sustainable Design Initiatives Some design and sustainable initiatives that are considered desirable: A design to maximize access to natural light, south east winds for natural ventilation and to ensure adequate sound proofing from airport noise; A Health and Fitness Centre, catering to traveller s wellness concerns; A proportion of rooms with openable windows; Ability to separately turn on/off air-conditioning or use natural ventilation in recognition of local tropical climate; Use of recycled water for irrigation of landscaped areas; Rainwater collection and storage for irrigation of landscaped areas; Waste heat recovery with supplementation of solar energy for hot water production; Renewable energy using PV solar panels for outdoor lighting; and Consideration of sustainable initiatives such as minimal laundering of towels, dual flush toilets and waterless urinal systems; and Low energy lightings 1.3 Justification of the Airport Hotel The Project will form part of the Resort or Hotel infrastructure required to accommodate the targeted tourist population of 2 million p.a., although, since the worldwide economic dislocation of 2008 / 2009, the tourist arrivals in Mauritius is growing at a slower rate. The recent World Financial Crisis does not appear to have induced any change in the Government's Policy with regard to tourism sector although the hotel operators are still very much concerned on the recovery period. Inasmuch as the airport capacity and the accommodation capacity are concerned, the Airport is being upgraded and modernised. 1.3.1 Tourism Development in Mauritius Tourism is an important pillar of the Mauritian Economy with the decline of key sectors like the Sugar and the Textile sectors. The number of tourists visiting Mauritius has been increasing at a rate of 3.6% on average from 2002 to 2006. Key indicators pertaining to hotel occupancy are summarised below 2. 2 Source Central Statistics Office

EIA Airport Hotel Ltd- Development of Holiday Inn Airport Hotel at Plaine Magnien Page 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Number of Tourists 681 648 702 018 718 861 761 063 788 276 906 971 930 456 871 356 934 827 964 642 Number of Hotels 95 97 103 99 99 97 102 102 112 109 Number of rooms 9623 9647 10640 10497 10666 10 857 11 488 11 456 12 075 11 925 Number of beds 19 597 19 727 21 355 21 072 21 403 21 788 23 095 23 235 24 698 24 242 Room occupancy rate (%) 63 63 63 66 76 68 61 65 65 Bed Occupancy rate (%) 55 56 59 59 68 61 54 57 57 In 2006, there were 99 registered hotels in operation, with a total room capacity of 10,666 and 21,403 bed places. The average room occupancy rate for all hotels was 66% while bed occupancy rate averaged 59%. Growth in tourist arrival has increased by 7.3% in 2010 after a decrease of 6.4% in 2009 due to the world financial crisis and recession in the EURO zone, our main tourism market. With the persistent financial and economic woes of the EURO zone countries, growth rate has only been +3.2% in 2011. As part of the market diversification strategy, Asian markets particularly tourists from India and China appear promising. 1.4 Legal and Administrative Framework 1.4.1 Environment Protection Act 2002 as amended in 2008 The Airport Hotel Project is not a scheduled undertaking that requires either a Preliminary Environmental Report or an Environmental Impact Assessment according to the Environment Protection (Amendment of Schedule) Regulations 2006. However the Ministry of Environment & Sustainable Development has declared the proposed Airport Project an undertaking requiring an EIA Licence as per Section 17 of the EPA. The correspondences are given in Appendix B. 1.4.1.1 Environmental Regulations The Environmental Regulations and guidelines set out under the Environmental Protection Act and directly relevant to the Project are: Environment Protection (Standards for Air) Regulations 1998 Environment Protection (Standards for effluent discharge) Regulations 2003 3 Environment Protection (Standards for effluent for use in irrigation) Regulation 2003 Environment Protection (Environmental Standards for Noise) Regulation 1997 1.4.2 National Development Strategy 2003 The National Development Strategy that sets out the Development Strategy and Policies and in particular those of the Planning Policy Guidelines will govern the Project impacts on Public Utilities and the conformity with the judicious development and conservation of land resources. Two main themes are followed. To achieve balanced development and create compact settlement forms. 3 Regulations made by the Minister under Sections 34 and 74 of the Environment Protection Act 1991

EIA Airport Hotel Ltd- Development of Holiday Inn Airport Hotel at Plaine Magnien Page 11 Strategic Policy SP16- Coastal Developments and Tourism is reinforced by Policy TM 1 of the NDS which outlines the concept of a sequential approach to tourism development which first focuses in existing settlements resorts and major campement sites within the designated Tourism Zones. The proposed development although does not fall within the specifically identified tourism zones of the Development Strategy Map, can arguably be referred as an extension of the Mahébourg Tourism Zone which includes Blue Bay. 1.4.2.1 Planning Policy Guidance 2004 Parameters such as building setbacks from High Water Mark, height of buildings above Ground Level, Land Occupancy, are governed by the Planning Policy Guidance of the Ministry of Housing and Lands. 1.4.3 The Grand Port/Savanne DCA Outline Planning Scheme 2006 The Grand Port/Savanne District Council Area Outline Planning Scheme is the main reference against which development permit applications are evaluated. The outline planning schemes exist for all the district council areas, having their basis from the Planning Policy Guidance and incorporating district specific constraints and requirements. The Promoters have applied for an Outline Planning Permission from the District Council as per Town and Country Planning Act 1954 (as amended). The clearance has been obtained as per attachment in Appendix B. 1.4.4 Road Traffic Act The construction of any direct access to existing public road requires the clearance of the Road Development Authority (RDA) and the Traffic Management and Road Safety Unit (TMRSU) of the Ministry of Public Infrastructure, Land Transport & Shipping. 1.4.5 Land Conversion Permit The Site is occupied by a house that used to be the residence of the Administrator of the Mon Tresor Mon Desert Sugar Factory. Hence the land does not fall under the purview of the Sugar Industry Efficiency Act 2001 (as amended) that would have required a land conversion permit. 1.4.6 Maurice Ile Durable Project (MID) Maurice Ile Durable (MID) is a long term vision aimed at promoting sustainable development in Mauritius. Policies and strategies for the MID vision are presently being developed. 1.4.7 SSR International Airport Safeguarding Development within the environs of the SSR International Airport is controlled in accordance with the Plaisance Airport (Building Restrictions) Act 1964 and Annex 14 to the Convention on International Civil Aviation (1944). The areas subject to building control and restriction around the SSR International Airport are illustrated in detail on the Airport Safeguarding Area Restriction Inset Plan 4. These include areas affected by existing and future operations and also previously defined safeguarding areas. Five 4 source: Outline Planning Scheme for Grand Port Savanne District Council Area- Approved Version (September 2006)

EIA Airport Hotel Ltd- Development of Holiday Inn Airport Hotel at Plaine Magnien Page 12 zones 5 have been defined by the competent authority, i.e. the Director of Civil Aviation (DCA) as follows: Approach Areas: no new building or structure is permitted within the Approach Area without a No Objection Certificate from the Director of Civil Aviation (DCA) Transitional Surface: there are restrictions on new buildings and structures and hence a No Objection Certificate from the Director of Civil Aviation would be required for development within this zone Inner Horizontal Surface: a No Objection Certificate from the Director of Civil Aviation is required for any new development within this zone; the height of any such development is restricted to 100.00m above Mean Sea Level (MSL) Conical Surface: restrictions vary according to location, however a No Objection Certificate from the Director of Civil Aviation is required for any new development in this zone Areas Outside Obstacle Limitation Surface: within a radius of 11 km from the threshold of Runway 14 as shown on the Restriction Inset Plan, any new building or structure exceeding 15.20m in height requires a No Objection Certificate from the Director of Civil Aviation. The Project Site is just outside the SSR International Airport Boundary (IA1) and well outside the SSR International Airport Safeguarding Area (IA1, IA2). However as the Project Site is within the Inner Horizontal Surface Zone, a no objection certificate from the DCA is required. 1.5 Project Milestones The milestones for the Hotel Project Development is summarised below. Milestones Date Application for EIA licence July 2012 Application for Building and Land use Permit October 2012 Architectural tender Drawings July 2012 MEP Tender Drawings July 2012 Structural Tender Drawings August 2012 Floating of Tender for various works September 2012 Award of Work Contracts November 2012 Start of Hotel Construction November 2012 End of Hotel Construction December 2013 1.6 Implementation Schedule HIAH intends to start the hotel construction works in November 2012. The duration of the works associated with the Airport Hotel is estimated at 13 months. The opening of the hotel is scheduled for the peak season of December 2013. 5 source: Outline Planning Scheme for Grand Port Savanne District Council Area- Approved Version (September 2006)