RESORT DEVELOPMENT IN NOVOSELË, ALBANIA

Current situation

� Mr. Gazment Demi owns a 240 hectare plot of land at the Albaniancoastline in the commune of Novoselë. The plot of land has more than twokilometers coastline with sandy beaches and includes a lake as well as aforest and brushwood zone. Novoselë is located approximately 120kilometers away from Tirana and some 12 kilometers from the city of Vlorë.

� An urban development plan for the area between Vjosa river and hidrovore(Novoselë commune) has been conducted and the functional zoning planhas been approved by the district authorities, the responsible Ministry ofAgriculture, Nutrition and Consumer Defense as well as the government ofthe Republic of Albania. The plot of land is situated in this area.

� Due to the already prepared urban plan the resort will include differentelements like hotels, villas, shopping facilities, an aqua park, golf course,yacht port, etc.

General information about Albania� The Republic of Albania is country in the south eastern part of Europe

bordering Greece, Macedonia, Kosovo and Montenegro. Across theStrait of Otranto Italy is only 72 kilometers away from the Albaniancoastline.

Tourism in Albania� Currently Albania is still a more or less white spot on the

world map of tourism destination. Despite the greatpotential of a country with a more than 350 kilometers longcoastline, a Mediterranean climate impressive mountainsand lakes as well as numerous interesting cultural places,Albania has yet failed to develop tourism accordingly.

� According to official figures of the UN World TourismOrganization the number of overnight visitors to Albaniahad been between 2,5 and 3 million over the last four years.

Tourism image of Albania� Although the natural pre-requisites for a positive tourism image of

Albania do exist, the county is still not visible on the world map oftourism destinations. One strong indicator for the attractiveness as atourism destination is the presence in the programs of the various touroperators. To show the absence of Albania in those programs, werandomly picked strong tour operators in Germany.

� The above table underlines, that Albania has not yet reached the imageof a tourism holiday destination. The main reasons are the notfavorable accessibility of most parts of the coastline, the lack ofaccommodation facilities and holiday resorts with an appropriatenumber of rooms and the insufficient financial resources anddevelopment skills of the public authorities.

� The NTO (National Tourism Organization) of Albania currently usesthe slogan “Albania – a new Mediterranean love” – but with the currentshortage of modern tourism destinations it will be difficult to be heard.

� On one hand new modern tourism resorts are an opportunity to startrelationships with international tour operators. On the other hand itmight not be too interesting for international tour operators, as long asthere is no certain quantity of saleable properties in a destination.

Vlorë District

� The plot of land in Novoselëdesignated for tourism developmentis located in Vlorë District. Thedistrict has a land area of 1.609square kilometers and a populationof 147.000 people. It consists of 13communes – Novoselë being one ofthem.

The city of Vlorë� Vlorë is located in the Southwestern

part of Albania at the confluence ofthe Adriatic and the Ionian Sea.Behind Durrës, it is the secondlargest port city of Albania with apopulation of approximately 94.000inhabitants.

Climate� Vlorë District has a typical Mediterranean climate with cool wet

winters and hot, dry summers with the possibility that temperaturesexceed 35 degree centigrade.

� The average daily high temperature reaches 30 degrees in the summermonths of July and August, while January is the coldest months with anaverage daily high temperature of 13 degrees. The precipitation isgenerally very low in the summer time but can increase to almost 200millimeters in the winter months.

AccessibilityCurrently there are three ways for foreigners to get to Vlorë District:

1. Flight to Tirana and road connection to Vlorë District

2. Flight to Corfu Island (Greece), ferry to Saranda and road connection toVlorë District

3. Ferry from Brindisi (Italy) to Vlorë

Tourism attractions of the region

Urban study for the territory between Vjosa

river mouth and Hidrovore

� The 14th July 2009 the Albanian Govern approved the “Urban Study forthe Tourism Development of the Coastal Area between Vjosa river mouthand Hidrovore.

The following map shows the result of the urban study on tourism

development for Novoselë

� The two coastal tourismdevelopment zones, highlighted inred have the same designation forhotels, hotelier elite villas, serviceobjects, touristic residences andtourism attractions. The distancebetween these two zones is 4.55 km.

� The sportive tourism developmentzone, highlighted in green, has atotal area of 300 hectares and isdesignated to golf and horse ridingfacilities.

� The blue highlighted area isapproved for the development of aregional airport. The distancebetween the airport and zone “C” is2.8 km, while the distance of zone“C” from the highway is 6.6 km.

ZONE “C”

ZONE “A”

SPORT ZONE

AIRPORT

� This plot has a beach coastline ofapproximately two kilometers. The beachconsists of smooth sand and has a widthup to 150 meters. There are several naturaldunes along the beach. Directly behindthe sandy beach zone a shallow lake(which vary considerably with seasons)winds itself all along from the northernboarder of the tourism development zoneC to the southern one.

� The territory includes, in it’s major part, adense Mediterranean forest area.

� The territories to the north and south oftourism development zone C are protecteddense forest areas with no buildingpermission.

Property information

Tourism development

Zone “C” 300ha

YACHT PORT

� Maximal height 6 floors

� Lot coverage 15%

� Total area of the hotel zone 859 000 m ² (85.9 ha)

� Hotel construction area 773 100 m²

� Hotel bedrooms ≈ 15 460

� ≈ 8 hotels are foreseen

Hotel Zone

� Maximal height 3 floors

� Lot coverage 10%

� Total area of the villa zone 437 400 m ² (43.7 ha)

� Villa construction area 131 100 m² (≈ 435 villas)

Hotelier

elite villa

� Maximal height 3 floors

� Lot coverage 25%

� Total area of the residential zone 932 400 m ² (93.2 ha))

� Residences construction area 699 300 m²

� Residential apartments

≈ 9 320 apartments

(18 640 bedrooms)

Residential

Zone

� Maximal height 3 floors

� Lot coverage 20%

� Total area of the service zone 119 200 m ² (11.9 ha)

� Service construction area 71 520 m²

Services

� Dimensions 300 x 300 m

� Capacity 100 – 150 yachts

� Total area of the zone

174 800 m ² (17.4 ha)

� Ports area 100 000 m ²

� Construction area of the residences, facilities and services 10 488 m ²

Yacht Port

� Total area of the sportive zone 493 300 m ² (49.3 ha)

� The area of 10 soccer fields and their facilities 100 000 m²

� Tennis court, volleyball and basketball fields area 50 000 m²

� The construction area for 2 floor buildings 20 000 m²

Sportive Zone

� The area of tourism resort territory 300 ha

� Hotel construction area

773 100 m²

� Hotelier villas construction area 131 100 m²

� Residences construction area 699 300 m²

� Service construction area

71 520 m²

� Yacht port capacity 150 yachts

� Sportive area 493 300 m²

� Total construction area

1 685 000 m²

Project Idea

Hotel Project Idea

Ho

teli

er

Vil

la P

roje

ct I

de

a

Ground Floor

First Floor

Second Floor

Hotelier Villa Project Idea

Hotelier Villa Project Idea

Hotelier Villa Project Idea

Hotelier Villa Project Idea

Tou

rism

Re

sid

en

ces

Pro

ject

Id

ea

Tourism Residences Project Idea

From a tourist point of view, the tourism development zone C in

Novoselë has the following main strengths and weaknesses:

STRENGTHS

•Attractive location at the sea and large forest area•Proximity to the city of Vlora•Attractive sandy beach area•A number of attractive excursion targets in the region around Novoselë•Vlorë and surrounding is already seen as a nice holiday spot for local people

WEAKNESSES

•Nearest airport is 120 kilometers away – no inbound charter connections.•Albania and the region around Vlorë have no tourism image on the main European outbound source markets

From an investor point of view, the tourism development zone C in

Novoselë has the following main strengths and weaknesses:

STRENTHS

• Domestic demand for hotel/resortDevelopment.•Location at the beach and in closeproximity to Vlorë.•Possibility to be the first in Albania to offer something unique (e.g. golfcourse and residences or spa resort).•Development with high percentage of equity capital might be possible.•Approved urban development planincluding zone.

WEAKNESSES

•No current international demand.•Difficult to find an internationaloperator for the hotel/resort.•No general infrastructure until theboarder of the tourism development zone C.•Tougher credit criteria than before the crisis.•Expected high seasonality.

FINAL REMARK� Mr. Christopher Hinteregger, Project Manager of Kohl & Partner Wien

GmbH in the conclusions of the PRE-STUDY RESORT DEVELOPMENT IN NOVOSELË, ALBANIA determines:

� Due to the undersupply of modern hotels/resorts and tourisminfrastructure (e.g. aqua parks or golf courses) at the Albaniancoastline, especially in comparison to other countries at theMediterranean Sea, tourism development zone C has the potential tobe successful developed.

Thank you for your attention!