Gate of BaikalSpecial economic zone for tourism and recreation

Irkutsk Region

Irkutsk region - a large tourist center in Russia

Unique tourist and recreational resources

Proximity to large markets of Russia and foreign countries

Developed tourist infrastructureThe growing flow of tourists

The population of the Irkutsk region - 2.5 million.Within a three-hour availability of air transport are:Regions of Russia - Primorsky Krai, Khabarovsk Krai, Krasnoyarsk Krai, Yakutia, Altai Republic, Altai Krai, the Republic of Tyva, Khakassia, Buryatia, Transbaikalia Region, Kemerovo Region, Tomsk Region, Novosibirsk Region, Omsk region, Kurgan region, Tyumen region, Khanty-Mansi Autonomous Area - with a combined population of more than 25 million people.CIS region - a number of areas of Kazakhstan - more than 3 million people.Regions abroad - a number of provinces in China, part of the territories of Mongolia, South Korea - more than 115 million people.Airport of Irkutsk carries air service from 20 countries worldwide.

Increase in the number of tourist arrivals, thousands of people

764

693

20112010

• The deepest freshwater reservoir of the planet - Lake Baikal, with purest deep water, amazing coastal landscapes, endemic flora and fauna.

• World’s most powerful Angara-Lena artesian mineral water pool.

• A variety of natural landscapes - vast mountain ranges with swift rivers and waterfalls, large lakes, picturesque river valleys.

• Krugobaykalsyakaya Railway - a monument to railway construction in Siberia of the nineteenth century.

- 214 operating hotels- 36 resorts and hotels with treatment- 147 holiday homes, lodges, camp sites- 80 companies engaged in tour operator activities- 170 travel agents.

664,4

2009

Indicators «Mount Sobolinaya»

Area, hectares 768

The potential volume of the tourist flow in 2028, thousands of people per year 498

The area of land under tourism facilities, ha 158

Investments into the zone, mln. EURincluding: 211,25

- public investment, mln. EUR 56,25

- private investments, mln. EUR 155

Potential volume of sales (excluding VAT) for 2028, mln. EUR 140

Tax revenues in 2028, mln. EUR 305

Jobs in tourism / attendant in 2028, ed. 2 000/10000

The special economic zone in the territory Slyudyanka district, Irkutsk region (region Mount Sobolinaya)

87

6

2

54

13

1. Existing building area at the foot of slopes

2. Existing hotels and cottages

3. Planned resort4. The planned

expansion area at the foot of

5. The planned area of summer / winter sports6. The planned coastal resort area7. The existing ski area8. Expansion of the ski area2028202520202015

Foreign tourists

15%

Tourists from other regions

27%

58%Domestic tourism

The volume of tourist arrivals, ths.

The structure of tourist arrivals in 2028,%

498467

356290

A diversified business model of an all-season resort provides a high volume of tourist arrivals

Sports tourism

Water tourism

Eco-tourism Excursion tours

Business Travel

Skiing complexSummer offer: mountain biking, rock-climbing, rafting, horseback riding

Cruises on Lake Baikal

"Russian Winter " (residing in winter houses and cottages)Observing natureWalks in parks

Familiarity with the cultural heritage of the area and region

ConferenceExhibitionsCorporate travelEvent tourism

The scope of entertainment (restaurants, shopping, entertainment venues, nightclubs)

The concept of special economic zonesall-season mountain resort

Государственная поддержка – важный фактор развития особой экономической зоны

• Application of reduced tax rate when calculating the corporate income tax

• Exemption from land tax for 5 years and property tax for 10 years

• Protection against adverse changes in tax legislation

Reducing administrative barriersIn the SEZ, there is the administrative regime of a "Single Window" - administrative and business centers have operation rooms which bring together representatives of key state regulatory bodies, so the investors are able to solve their ongoing administrative matters without leaving the SEZ.

Granting of tax privileges

Providing woith the plots of land

• Provision of land for lease on favourable terms.• The possibility of acquiring land for commissioned

buildings at a reduced price

Building the infrastructure for the state budget How to become a resident of the Russian special economic zone?

The project is considered by the Supervisory Board of the SEZ

The Applicant submits an application for residency, a business plan and a set of required documents to the

authorities of the SEZ

The project is considered by the Expert Council under the Ministry of Economic Development

The ministry concludes with an applicant for residency agreement on the conduct of activities on the territory

of special economic zones

40 days10 days

The amount of funding from the budgets of various levels of about 2.25 bln. Funds will be used for documentation, training area, increase the capacity of power supply facilities, sewage treatment and increase the capacity of drainage, lighting, communications, fortification works at the bottom of the river, construction of the embankment, landfill waste, berthing facilities, checkpoints and fences

State support - an important factor in the development of special economic zones

State Investment Expenditures

Communal power demand

Heat 32 200 Gcal per year

Water 2 000 m3 per day

Electric enegry 20 megawatt

Disposal of solid waste

22 m3 or 5 000 kg per day

Sewerage 2 600 m3

Telecommunications

210 Mbit/sec

Main state investment expenditures, mln. EUR

Preparation of the construction site 1.1

Energy supply objects and networks 2,8

Payment for technological connection 15

Water supply objects and networks 4,3

Sewerage and wasterwater networks and objects, objects of local treatment facilities

9,5

Onsite networks and stormwater objects 1

Outdoor lightning and road structure (on site) 2,5

Telecommunication network and objects 1,1

Dredging works, bank stabilization, embankment construction

9,75

Ground for solid waste 2

Berthing facilities 6,25

Fencing and checkpoint 0,75

Total: 56,2

14 hotels and 112 houses. Total number of placements - 4,8 thousand or 1,5 thousand numbers. Necessary investments - 115 million EUR.

MOS-ROS005-200600608-SS1wm-r_c

Tourist infrastructure: the place of residence

The cost of building hotels and houses in the SEZ - from 13 to 56 EUR per one location

Number of seats in the planned placements

Hotels 3*

1 990

Hotels 4*

1 279

Hotels 5*

430

Cottage

1 120

MOS-ROS005-200600608-SS1wm-r_c

The total investment in the creation of the skiing infrastructure - more than 117 million EUR

The projected maximum number of visits to the skiing resort in the day, thousands of people.

5

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

3

2

4

6

1

6,05,5

5,14,7

4,33,6

3,0

Estimated number of visits to ski area in the SEZ «Mountain Sobiolinaya» will be by 2028, 6 thousand people a day. Investments will be around 20 million EUR.

Tourist infrastructure:skiing complex «Mount Sable»

Daily arrivals

47%

4%high class

14%middle class

21%

economy class

13%cottages

8%

high class

cottages24%

41%economy class

middle class

27%

The structure of the deployment of Russian tourists in 2028,% The structure of the deployment of foreign tourists in 2028,%

The structure of tourist arrivals in 2028

Foreign tourists

Tourists from other regions

15%

Domestic tourists

27%

58%

The projected flow of tourist arrivals in the region by 2028 will amount to about 0,5 million, of which more than 15% of foreign tourists

Tourism objects of special economic zone - high-efficiency investments for investors

Internal Rate of Return (IRR) of private investment will be 21%

Net income investors (residents), mln. EUR

20202013 2015 2028

29

2025

26,4

20,2

12,1

5,5

Structure of investments in tourist infrastructure, mln.

Skiing infrastructure

Catering facilities

6 203

506276

825

1 056

1 477

957

1 106 cottageHotels de luxe

Hotels in economy class

Hotels of the middle class

Entertainment infrastructure

Revenue investors (residents) without VAT,mln. EUR

2025

130,3

2020

98,4

2015

78

2013 2028

140,2

35,4

32,9%32,9%32,8%31,7%

28,6%

20,7%20,3%20,6%

Operational margin and net profit margin

operating margin – net profit margin

-6,4%0,0%

20,0%

2026 2028

15,5%

2018

40,0%

202420222010 20202012 20162014

Alexey ZezuliaDeputy Chairman of Irkutsk region Government

664027, Russia, Irkutsk 1A Lenina str.Tel +7 (3952) 20-60-29E-mail: zezal@inbox.ru

Ruslan Kim,Minister of economic development

of Irkutsk region,Tel +7 (3952) 25-24-32E-mail: r.kim@govirk.ru