Initiator

The initiator of the project is the Akimat of the East Kazakhstan region.

Products and services

The resort will offer its services to residents and guests of the East Kazakhstan region, as well as foreign tourists. At full capacity, the hotel will have 126 double rooms. The resort plans to provide its clients with accommodation services, a restaurant complex and wellness treatments.

Project

The project involves the construction of a multifunctional SPA resort in Ridder, East Kazakhstan. The project is focused on family and business tourism and includes the construction of a four-star hotel offering a wide range of tourism services to domestic and international tourists throughout the year. The project will be located 130 km from the regional centre of Ust-Kamenogorsk. The project will be located on a 15-hectare plot of land with utilities.

Market

• According to Kazakh Tourism, Kazakhstan will rank 66th out of 117 countries in the World Travel and Tourism Development Index in 2021, ahead of Montenegro (67), Morocco (71) and Kyrgyzstan (90).
• According to Marketline forecasts, the value of Kazakhstan's tourism market will reach 8,317 mlrd. tenge  by 2027, an increase of 49% compared to 2022. The average annual growth rate of the industry for the period 2022-2027 is forecast at 8.3%.

Investment attractiveness of the project: 

• The amount of investments – 4 046 mln. tenge
• NPV – 5 709 mln. tenge
• IRR – 34,48% 
• The payback period of the Project is 6.24 years , 
• the discounted payback period is 7.94 years

What is the attractiveness of the project?

• The project's unique location. The resort will be surrounded by the Altai Mountains. This region is renowned for its stunning natural beauty, including mountain ranges, dense forests and pristine rivers.
• Government support. The tourism industry in the country is actively supported by the government. Government support includes reimbursement of part of the cost of purchasing equipment and building tourist facilities.
• Low level of competition. Despite the popularity of the resort, few hotels offer accommodation services that meet international standards. At present, the variety and quality of services offered to visitors are the resort's advantages over its competitors.

Investment proposal

The project requires financing in the amount of USD 4 046 mln. tenge, including 

80% (3 236 mln. tenge) - debt financing (if collateral is available)

 20% (809,959 thousan tenge) - participation of SEC "Ertis".

 The proposed financing structure and government support measures are indicative, the final structure of financing and participation in the project will be determined based on the results of joint negotiations with the investor.