Signing of the assignment No. AX-P6-2пр of the Deputy Prime Minister of the Government of the Russian Federation, the Plenipotentiary Envoy of the President of the Russian Federation in the North Caucasus Federal District Mr. Alexander Khloponin, regarding the project implementation of the creation of a tourism cluster in the North Caucasus Federal District, the Krasnodar Territory and the Republic of Adygea.
Signing of the Decree of the Government of the Russian Federation No. 833 “On tourism cluster creation in the North Caucasus Federal District, the Krasnodar Territory and the Republic of Adygea”.
December 2, 2010
Incorporation of Open Joint-Stock Company Northern Caucasus Resorts (NCR OJSC, JSC NCR).
The first pillar of the first ropeway of the all-season tourism and recreation complex Arkhyz was erected in Arkhyz mountainous region. In December 2013, just 2.5 years later, the resort was put into test operation and, following the winter season, it was visited by about 35 thousand tourists.
The Government of the Russian Federation issued Decree No. 1195 “On special economic zones in the North Caucasus Federal District”. According to this Decree, the territory of tourism cluster was increased almost twice by increasing the area of the previously established special economic zones of tourism and recreation type and inclusion of the Jeyrakn and Sunzha districts of the Republic of Ingushetia and the Caspian coastal cluster of Dagestan into the tourism cluster.
The Government of the Republic of Dagestan issued the Decree “On priority measures for establishment of a special economic zone of tourism and recreation type in the territory of the Republic of Dagestan”.
Pursuant to the instruction of the President of the Russian Federation, the Company developed the Concept of providing labour resources to the North Caucasus Federal District (NCFD), the Krasnodar Territory and the Republic of Adygea, in the view of creation of a tourism cluster in their territory. In December 2014, in line with the stage-by-stage approach, the Management Board of the tourism cluster has taken the decision to activate the Human Resources Concept.
In the frames of the XVI St. Petersburg International Economic Forum, the panel discussion “Investment in human capital as a factor of development of economy and tourism” was held; this discussion was attended by A. Khloponin, Deputy Prime Minister of the Government of the Russian Federation, Plenipotentiary Envoy of the President of the Russian Federation to the NCFD, and heads of constituent entities of the NCFD, as well as a number of leading Russian and foreign experts. In the course of the panel discussion, the Company introduced the Concept of providing labour resources to the North Caucasus Federal District, Krasnodar Territory and the Republic of Adygea, in the view of creation of a tourism cluster in their territory.
The boundaries of the territories promising for the development of the Caspian coast were defined. Total land area reached 51 thousand ha. Based on this work, the Government of the Republic of Dagestan has issued Decree No. 364 dated 21 October “On measures to reserve land plots in order to create a special economic zone of tourism and recreation type in the Republic of Dagestan, included in the Caspian coastal cluster”.
The Government of the Russian Federation issued Decree No. 1434 “On the inclusion of the special economic zone of tourism and recreation type in the Stavropol Territory in the tourism cluster provided for by the Decree of the Government of the Russian Federation No. 833 dated October 14, 2010”. According to this Decree, the tourism cluster will include the tourism and recreation special economic zone located in the territories of the Yessentuki resort, Zheleznovodsk resort, Kislovodsk resort, the city of Lermontov, Pyatigorsk resort, the Mineralovodsky municipal district and the Predgorny municipal district of Stavropol Territory.
NCR JSC and North-Caucasus Federal University (NCFU) signed an agreement on cooperation in the field of training of highly qualified specialists for new resorts in the tourism cluster. The agreement is valid for 5 years, until 2018.
The Government of the Russian Federation issued Decree No. 865 “On the establishment of tourism and recreation special economic zone in the territory of the Itum-Kalinsky municipal district of the Chechen Republic”; the tourism and recreation special economic zone Veduchi was created in the territory of the Chechen Republic. According to this document, Veduchi SEZ was included in the tourism cluster.
The Ministry of Economic Development of Russia held a meeting of the Expert Council on tourism and recreation special economic zones. The Ministry decided to support the business plan for Arkhyz ATRC to develop Arkhyz-1650 LLC as a potential resident of SEZ in the territory of the Zelenchuksky municipal district of the Karachay-Cherkess Republic.
The all-season tourism and recreation complex Arkhyz was put into test operation and began to accept the first tourists. On the same day, Arkhyz-1650 LLC became the first resident of the special economic zone in the territory of the Karachay-Cherkess Republic. The appropriate tripartite agreement was signed by the Ministry of Economic Development of Russia, NCR OJSC and Arkhyz-1650 LLC.
Veduchi LLC has received the status of a resident of Veduchi special economic zone in the Itum-Kalinsky district of the Chechen Republic, where the all-season tourism and recreation complex Veduchi will be built.
NCR OJSC, POMAGALSKI S.A.S. (POMA) (France) and Closed Joint-Stock Company Sinara Group signed an agreement on cooperation and coordination for five years period. The agreement provides for the establishment of a joint venture in the territory of the North Caucasus Federal District for assembly of components of ropeways. It is also expected that the parties will create a specialised training center to train highly qualified engineering staff required for the construction, operation and maintenance of the infrastructure of ski resorts.
NCR OJSC and the Russian Mountaineering Federation signed an agreement on cooperation. The priority area of cooperation of the parties will be the development of mountaineering and the related mountain sports in the territory of the tourism cluster in southern Russia, as well as the establishment of a system of measures to ensure safety at sports and activity holidays in the mountains.
The Ministry of Economic Development has authorised NCR OJSC to manage and operate the state and municipal land plots in the Itum-Kalinsky district of the Chechen Republic within the borders of the tourism and recreation special economic zone Veduchi of the total area of about 656 hectares.
The Expert Council of the Russian Ministry of Economic Development approved the applications of six investors of the all-season tourism and recreation complex Arkhyz for obtaining a resident status in the special economic zone in the Karachay-Cherkess Republic. Among them are: Tramplin 1650 LLC, Allur LLC, Gorniy Kristall LLC, Dukka Invest LLC, URUS LLC, self-employed entrepreneur B.A. Erkenova
The Russian Ministry of Economic Development approved the plan of supply of material and technical resources for the tourism and recreation special economic zone Veduchi in the Itum-Kalinsky municipal district of the Chechen Republic, where the homonymous project of the all-season tourism and recreation complex within the tourism cluster is being implemented.
The Government of the Republic of North Ossetia-Alania approved the draft territory planning of the all-season tourism and recreation complex Mamison, which will be built in the Alaguirsky district within the tourism cluster.
Within the frameworks of implementation of the Human Resource Concept, JSC NCR together with ANPO Russian International Olympic University and the professors and graduate students of the leading partner universities, has developed the training and educational project “School of Caucasian Hospitality”. The goal of the project is to increase awareness among the younger generation in the constituent entities of the NCFD about the development of the tourism industry, recreation and hospitality, the popularisation of the project of tourism cluster in the North Caucasus, as well as awareness of the benefits of getting professional education and employment in this area.
The Board of Directors of NCR OJSC approved the Development Strategy of the Company up to 2025. The Strategy identifies the main priorities of development of NCR OJSC as the management company of the tourism cluster. It provides for several scenarios of development of the tourism cluster, based on the analysis of key opportunities and risks. The Development Strategy provides for two stages in the implementation of the project by NCR OJSC. The first stage includes creation of benchmark resorts within the development program of the most promising sites, including Arkhyz ATRC, Elbrus-Bezengi ATRC and Veduchi ATRC. The second stage includes the operation of the resorts established during stage 1, with the subsequent construction of other resorts within the tourism cluster.
NCR OJSC and Open-Joint-Stock Company Sberbank of Russia signed an agreement on strategic cooperation in the territory of the North Caucasus Federal District, including within the frames of the development of the all-season tourism and recreation complex Arkhyz in the Karachay-Cherkess Republic. Sberbank of Russia will arrange high-quality high-tech and competitive banking services, analytical and informational support for implementation of the project of the tourism cluster in the North Caucasus Federal District.
The Russian Ministry of Economic Development and NCR OJSC signed an agreement on the management of a tourism and recreation SEZ in Ingushetia.
NCR OJSC signed framework agreements on cooperation and interaction with six potential residents of the all-season tourism and recreation complex Arkhyz. The investment projects include: hotel and tourist entertainment infrastructure, commercial real estate and other facilities required for fully functional operation of the all-season resort.
The Government of the Karachay-Cherkess Republic approved the draft territory plan of the tourism and recreation special economic zone.
In the regions of the North Caucasus Federal District, NCR OJSC has carried out the reconstruction and rehabilitation of the monuments of the Great Patriotic War as a part of the nationwide celebration of the 70-th Anniversary of the Victory. In the framework of the charitable project, and based on proposals of regional Veterans’ organisations, NCR OJSC selected seven military memorials and monuments to be reconstructed and restored, one in each region of the North Caucasus Federal District.
The sociological poll conducted by Romir research holding in February 2015 revealed that over 90% of tourists, who visited the North Caucasus resorts in winter of 2014/2015, plan to come back in the new ski season: 94% of respondents plan to come back in the Elbrus vicinity region and 98% plan the same in the all-season tourism and recreation complex Arkhyz. The study also found high levels of satisfaction of tourists with the resorts of the North Caucasus tourism cluster: on the average, it is 80-90%, according to different characteristics.
JSC NCR and the French company POMA signed an agreement on supplying equipment for ropeways on conditions of long-term financing. In accordance with the contract, POMA in cooperation with international financial institutions will provide the installment payment plan for ropeways equipment supply guaranteed by the French insurance agency COFACE. The amount of funds channelled by JSC NCR for the purchase of this equipment will make around 100 million Euro. This amount includes the cost of the equipment that will be delivered to the sites of the tourism cluster under the contracts in the framework of the project implementation, and the correspondent erection supervision work.
In accordance with the requirements of the Federal Law dated 05.05.2014 No. 99-FZ “On amendments to Chapter 4 of part one of the Civil Code of the Russian Federation and on repealing individual provisions of the legislative acts of the Russian Federation”, and on the basis of the decision of the extraordinary General Meeting of shareholders, the Company has changed its legal form.
According to the Charter of the Company, it sounds as Joint-Stock Company Northern Caucasus Resorts (JSC NCR).
The Expert Council for Special Economic Zones of the Russian Ministry of Economic Development approved the applications of eight investors of Arkhyz ATRC for obtaining a resident status in the special economic zone in the Karachay-Cherkess Republic. The new residents of SEZ Arkhyz will be PikExperience LLC, Arkhyz LLC, Dausuz-2014 LLC, Grand-Arkhyz LLC, Zhemchuzhina LLC, Riviera-Arkhyz LLC, Sosny LLC and Individual Enterprise of Kh.A. Bolurova. The total amount of investment shall be about 2.3 billion rubles.
The Russian Government in its Resolution No. 148 dated February 27, 2016 approved the changes in the state program “Development of NCFD” for the period until 2025 and Subprogram “Development of tourism cluster in NCFD, the Krasnodar Territory and the Republic of Adygea”. In accordance with the updated version of the subprogram, the project managed by JSC NCR shall be implemented in two stages: Stage 1 - in 2013-2020, Stage 2 - in 2021-2025. The total amount of the federal budget allocations for 2016-2025 for the subprogram goals is 45.04 billion rubles.
The Russian Government in its Resolution No. 463 dated May 25, 2016 approved the rules for granting subsidies to the residents of tourism and recreation SEZ being part of the tourism cluster in NCFD, the Krasnodar Territory and the Republic of Adygea. The federal budget funds shall be allocated for reimbursement of some part of the interest on loans, attracted by SEZ residents for construction, reconstruction and revamping of capital facilities and equipment purchase.
JSC NCR established the Autonomous Nonprofit Organization “North Caucasian Nature Preservation and Protection” (ANO Caucasian Nature Center). The purpose of ANO is the consistent implementation of projects aimed at preservation, augmentation and protection of the natural potential of the Northern Caucasus. The key project of ANO Caucasian Nature Center shall be recovery of persian leopard populations in the North Caucasus.
State standard GOST R 55881-2016 “Tourist services. General requirements to the activity of ski resorts” was developed and approved with participation of JSC NCR. Tested in winter 2015/2016 in Arkhyz ATRC and Elbrus ATRC and adjusted following the results of the trial deployment, starting from January 1, 2017, GOST shall become effective throughout the whole Russian Federation.
A resident of Arkhyz SEZ, Grand Arkhyz LLC and InterContinental Hotels Group (IHG) signed a franchise (franchising) agreement, under which a hotel of the international hotel chain Holiday Inn shall be set up in Arkhyz ATRC.
Resolutions of the Government of the Russian Federation No. 978 dated September 28, 2016 and No. 980 dated September 29, 2016 ahead-of-the-schedule abolished special economic zones in the Stavropol territory, the Krasnodar territory, the Republic of Adygea, and the Republic of North Ossetia-Alania, which previously formed part of the tourism cluster managed by JSC NCR. The area of SEZ in the Kabardino-Balkar Republic was decreased through elimination of the Cherek and Chegem districts of the Republic as well.
Northern Caucasus Resorts created by JSC NCR within the framework of the tourist cluster, were presented at the International Fair for Holidays, Travel and Leisure “Ferien-Messe Wien” in Wien. This project has become a part of presentation of the national tourist product of Russia in the run-up to the cross Russia-Austria Tourism Year in 2017.
At the meeting of the Expert Council for special economic zones at the Ministry of Economic Development of the Russian Federation the business plans of the residents of tourist recreational special economic zones managed by JSC NCR have been approved to the amount approximately 5 billion rubles. Among them the applications of new residents of SEZ and the applications of a number of already operating residents of Arkhyz SEZ stipulating the increase of investments as compared with the previously declared amounts have been successfully considered. After deduction of the investments previously declared by already operating residents new investments in development of commercial infrastructure of the resort will amount to more than 3.25 billion rubles.
Northern Caucasus Resorts — Arkhyz and Elbrus — were included in the National ranking of tourist brands prepared by the Center of Information and Communication “Ranking” and the magazine “Otdykh v Rossii” (Leisure in Russia) with the participation of BCGroup research agency.
Russian Federation Government Decree No. 238 dated February 28, 2017 transferred the authority for management of special economic zones in the North Caucasus Federal District, previously reserved to the Ministry of Economic Development of the Russian Federation, to the Ministry of the North Caucasus Affairs of the Russian Federation.
Russian Prime Minister Dmitry Medvedev visited All-Season Tourist and Recreational Resort Arkhyz, being created under the control of Joint-Stock Company Northern Caucasus Resorts in the Karachay-Cherkess Republic. He gave a high appraisal of the quality of the infrastructure created on the site and the high rate of growth of the tourist flow.