CONSORTIUM OCEANLIFE AQUARUIM TAURANGA, BAY OF PLENTY

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1 CONSORTIUM OCEANLIFE AQUARUIM TAURANGA, BAY OF PLENTY VISION DESIGN CONSTRUCTION MANAGE OPERATE

2 all great things begin with a vision.

3 TO CONTENTS Aquamarine Consortium 4 Aquarium Community Benefits 5 Preliminary Evaluation of Attendance Potential 6 Available Markets 7 Visitor Arrival Analysis 8

4 AQUAMARINE CONSORTIUM Aquamarine, specializing in the development of multi-use entertainment complexes and Marinescape, pioneers and world leaders in the design and construction of aquariums, announce the co-operative venture; the Aquamarine Consortium. Both companies bring a unique set of specialized skills, services and experience to strengthen and build on an already impressive international portfolio of completed projects. Marinescape has been involved in the design and construction of aquariums for 28 years, beginning with Kelly Tarlton s Underwater World in Auckland, New Zealand in Since then, the company has completed 30 major public aquariums worldwide in 13 different countries. Aquamarine offer a service that provides a fully integrated turnkey service specialising in multidisciplinary design, construction, management and operations of global entertainment complexes with Aquarium services at its heart. The Aquamarine Consortium is the only aquarium developer in the world to offer a complete turnkey service. This ensures that the aquarium is developed and managed to the highest specifications. Aquamarine Consortium aquariums are dominated by a main tank (ocean tank) where a complete eco system is established, giving the visitor a clear understanding of the marine environment. The Aquamarine Consortium aquarium environment is modelled on local marine conditions and provides a unique combination of educational and entertainment facilities. With the growing public awareness of conservation issues, the education aspect of the Aquamarine Consortium aquarium is of increasing importance to the company and underpins its Three E s philosophy of Education of the Environment by Entertainment. As consumers world-wide become more affluent in accordance with the developing world, they are demanding attractions which entertain the whole family with a trend towards understanding and protecting the environment as opposed to youth oriented leisure parks. The Aquamarine Consortium is especially successful in this rapidly expanding market with its development of the horizontally curved underwater tunnel. This concept revolutionized aquariums into becoming dynamic visitor attractions. The oceans, seas, rivers and lakes cover two thirds of the earth s surface and all contain unique ecoclimates and specialist habitats. The Aquamarine Consortium ECOAQUARIUM tm concept captures the public s curiosity for the unexplored depths of the underwater world leaving visitors with a strong desire to return. It also has numerous benefits to its clients such as reduced capital, operating and energy costs and energy management opportunities. 4

5 AQUARIUM COMMUNITY BENEFITS The Universal Appeal of Aquaria. The last 100 years have witnessed a rapid expansion of the aquarium industry. This expansion has been seen worldwide and can be credited to aquariums near universal appeal across the general population, business and government. The general population see aquariums as a medium for environmental education and research, a family entertainment facility, an adventure diving facility or a unique restaurant. Business and Government see aquariums as facilitators for economic growth. They see increased employment, increased tourism spending, increased land value, and an increased tax base. Environmental Education is a cornerstone of many aquariums mission. With the increasing concern for protecting the environment this aspect of an aquariums operation is growing and is now an expected aspect of every visit. Aquariums work to develop a bond between people and the underwater world by educating them in the wonders of the underwater world and describing how the sky, the earth and the seas are connected. Family Entertainment is the single most important driver of the aquarium industries success. Aquariums are self contained, safe, easily accessible and interesting for elderly guests and fun and exciting for youth. With an average dwell time of 1-2 hours a visit to an aquarium is the perfect afternoon family outing. Adventure diving classes are frequently offered at aquariums. Offering these courses increases the aquariums revenues at little additional cost while offering a chance to dive with the sharks in a controlled environment often unique in the cities where aquariums operate. Unique Dining Experiences add to the general public s enjoyment and support for aquariums. As the aquariums doors are closing to the general public they are opening for dinner, conferences, parties, weddings and special events. Once in a lifetime experiences such as dining in the underwater tunnel or holding a reception near the 360 degree tank will have people talking about the aquarium and further increase the communities support. Economic Growth is the main reason aquariums receive support from governments and the business community. Many studies have been done worldwide on the economic impact of aquariums with some communities reporting impacts upwards of USD million annually. Employment Creation is achieved through temporary jobs during the construction phase, direct employment in operating the aquarium and spin off employment in companies supplying the aquarium and in serving the aquariums guests at restaurants and hotels. The typical aquarium will employ people directly and will create well over 100 jobs in related industries. Tourism Spending dramatically increases in cities where an aquarium has been added. Between 30-50% of an aquariums visitors are typically from out of town. The number of visitors to the city increases, many visitors extend their vacation to visit the aquarium and spend more on food, souvenirs, other attractions and hotel rooms. Marinescape s first aquarium, Kelly Tarltons Underwater World, was credited by the government for increasing the length of the average tourist visit to Auckland by one night. Increased land values are frequently witnessed in the area surrounding a new aquarium development. Major developers and some cities have taken notice of this and are now using aquariums as the first stage of major urban redevelopment efforts. Tax Base increases appeal to the local governments. This increase is the direct result of the other impacts of an aquarium operation including increased land values, visitor spending, employment creation, aquarium purchases and construction and earnings. The development of a new aquarium has many benefits for the general population, the business community and the local government. These benefits have been proven correct time and again across geographic boundaries, religions, cultures and over time. It is due to these many benefits that aquariums frequently have near universal community support and is one of the main reasons that the industry has seen tremendous growth over the last 100 years. 5

6 PRELIMINARY EVALUATION OF ATTENDANCE POTENTIAL In assessing the preliminary market potential of the proposed OceanLife Aquarium attraction in Tauranga, Aquamarine has developed market penetration rates based upon the market factors and experience of other aquariums in New Zealand, Korea, Southeast Asia, Australia, and selected aquariums in the United States, and also local attractions in Tauranga and the Bay of Plenty. Attendance to aquarium attractions is a function of market size, spending power, market acceptance, investments, and a host of other factors. The market factors define the basis from which attendance is derived, while the scope of the aquarium determines the drawing power of market penetration of the aquarium. The scope and drawing power of an aquarium is a function of numerous endogenous factors such as level of initial investment, capital reinvestment, marketing strategy, images and brand identity, market awareness, penetration at comparable attractions, competitive environment, and other exogenous variables such as climatic conditions. An important part of how the aquarium will perform in terms of attendance is based upon the concept and design of the facility. The scope and quality of the core design impacts the drawing power of the attraction, thereby expanding the market and attendance potential. The visitation to the OceanLife Aquarium will be derived from a mix of several distinct market segments, primarily local residents within the principal market, including greater Bay of Plenty residents, school groups, and domestic and international tourists. Aquamarine s preliminary market evaluation results are applied through market penetration analysis to generate the estimated and projected attendance for the proposed OceanLife Aquarium. Estimates of attendance at the proposed aquarium are based upon expected patterns of market penetration, market characteristics, market growth potential, and the ability of the proposed aquarium to capture the markets, given the above-mentioned factors. It is important to emphasize that this is a preliminary evaluation subject to further detailed analysis and refinement. The proposed concept for the OceanLife Aquarium will be unique in the Tauranga and Bay of Plenty market with several new ocean and marine-life experiences providing a high-quality interactive, educational and entertaining visitor experience. Exhibits that have the ability to capture the imagination of visitors, provide an excellent visitor experience, and generate strongly favourable word-of-mouth for the aquarium. OceanLife Aquarium will feature several new attractions which will provide important points of differentiation. Reinvestment will continue at a regular basis to renew the product offering and keep it fresh in order to generate the critical repeat visitation from the resident market. There is a strong relationship between investment and attendance, although it is not a direct relationship. OceanLife Aquarium will benefit from operation by an experienced operator of high quality international aquariums building on a vast array of experience by Aquamarine. It is assumed that experienced local attractions management and marketing staff will be employed that truly understands the local and regional hospitality industry, school and tour group markets. 6

7 AVAILABLE MARKETS Much of the potential success of any commercial attraction, among other factors, is the function of the market available to serve it, as well as the relative drawing power and level of investment of the proposed development. Aquamarine envisions the proposed OceanLife Aquarium to be a major attraction in the Bay of Plenty region and to draw from both the resident market and also the tourist market. Available markets for the OceanLife Aquarium will consist of residents in the greater Bay of Plenty market (divided into two sub-markets), and domestic and international visitors to Tauranga and the Bay of Plenty region. Primary Market (30 minutes travel time) The primary market includes all of Tauranga, Katikati and Te Puke, and rural Matamata. The primary market accounts for 139,275 people based on the latest Census figures. Secondary Market (1 hour travel time) The secondary market, within one hour travel time of the site, comprises Hamilton, Te Awamutu, Paeroa, Waihi, Waihi Beach, Te Aroha, Morrinsville, Cambridge, Putaruru, Tokoroa, and urban Rotorua. The secondary market has a population of 275,700 people based on the latest Census figures. Cruise Ships There were an estimated 219,000 passengers and crew delivered to Tauranga from 84 cruise ships in the 2012/2013 season. This is forecast to increase to 240,000 passengers and crew in the 2013/2014 season. SECONDARY MARKET (1 HOUR TRAVEL TIME) PRIMARY MARKET (30 MINUTES TRAVEL TIME) Domestic and International Visitors According to the September 2013 Accommodation Survey from Statistics New Zealand, there were 318,565 domestic and international guests in commercial accommodation in Tauranga City for the year ended 30th September CRUISE SHIPS DOMESTIC AND INTERNATIONAL VISITORS 7

8 VISITOR ARRIVAL ANALYSIS ATTENDANCE PATTERNS Seasonal Attendance Pattern Low Medium High Jan 10% 20,000 25,000 30,000 Feb 10% 20,000 25,000 30,000 March 9% 18,000 22,500 27,000 April 7% 14,000 17,500 21,000 May 5% 10,000 12,500 15,000 June 6% 12,000 15,000 18,000 July 7% 14,000 17,500 21,000 Aug 7% 14,000 17,500 21,000 Sep 8% 16,000 20,000 24,000 Oct 8% 16,000 20,000 24,000 Nov 9% 18,000 22,500 27,000 Dec 14% 28,000 35,000 42,000 Total Visitor Numbers 100% 200, , ,000 ANTICIPATED DAILY VISITOR PATTERN Low Season (Time) High Season (Time) 09h00 to 10h00 3% 09h00 to 10h00 3% 10h00 to 11h00 7% 10h00 to 11h00 7% 11h00 to 12h00 10% 11h00 to 12h00 10% 12h00 to 13h00 9% 12h00 to 13h00 8% 13h00 to 14h00 9% 13h00 to 14h00 9% 14h00 to 15h00 13% 14h00 to 15h00 12% 15h00 to 16h00 17% 15h00 to 16h00 14% 16h00 to 17h00 15% 16h00 to 17h00 15% 17h00 to 18h00 12% 17h00 to 18h00 11% 18h00 to 19h00 5% 18h00 to 19h00 6% 19h00 to 20h00 0% 19h00 to 20h00 5% 20h00 to 21h00 0% 20h00 to 21h00 0% 21h00 to 22h00 0% 21h00 to 22h00 0% 22h00 to 23h00 0% 22h00 to 23h00 0% 100% 100% WEEKLY DISTRIBUTION OF ATTENDANCE Monday to Friday 50% Saturday 20% Sunday 30% 100% We have utilised the information we have received to analyse the adequacy of the design for visitor flow. Our analysis is based in units of 15 minutes. We anticipate visitors will stay for 6 units of 15 minutes or 90 minutes in total 8

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12 CONSORTUIM IMPORTANT NOTICE AND DISCLAIMER Recipients should read this Important Notice and Disclaimer before any other part of this document. This information memorandum and all information (whether in writing or otherwise) which may subsequently be made available to the recipient (together the Memorandum ) is supplied on the following conditions. If these conditions are not acceptable to the recipient, this Memorandum must be returned immediately without being read or copied. This Memorandum is confidential and has been prepared for information purposes only. No part of this Memorandum may be used for any other purposes. This Memorandum must not be copied or redistributed to any other person without prior written consent. The recipient agrees to return the Memorandum and any other documents made available to it upon request. The investment opportunity referred to in this Memorandum is not the subject of a public offering and is not the subject of a registered prospectus. This Memorandum is not intended to constitute an offer or invitation to subscribe to or purchase any shares. This Memorandum is being made available to recipients on the basis that they are a person who falls within one of the following categorisations: Relations or close business associates of the directors of Aquamarine Consortium; Persons whose principal business is the investment of money or who, in the course of and for the purpose of a business, habitually invest money; and Any person who in all the circumstances can properly be regarded as having been selected otherwise than as a member of the public. By receiving this Memorandum and not returning it immediately to Aquamarine Consortium, the recipient represents and warrants that it falls within one or more of the classifications of persons referred to immediately above. This Memorandum includes only a selected summary of information. It does not, and does not purport to, contain all information which a prospective investor might require. The statements contained in this Memorandum are made by the Aquamarine Consortium in good faith and have been derived from information believed to be reliable. However, their related companies and their respective officers, employees and advisers do not make any representation or warranty as to the accuracy or completeness of this Memorandum, or accept any liability for the statements, opinions, information or matters (express or implied) arising out of, or contained in, or derived from, or any omissions from, this Memorandum, including that the forecasts or projections contained in this Memorandum will be achieved. The recipient, by accepting delivery of this Memorandum and not returning it immediately, waives all rights in that regard.