Hot Spring Water Town Project of Qinshui County, Jincheng City

I. Project Overview
Project Name: Hot Spring Water Town Project of Qinshui County
Project Site: Zhengzhuang Town, Qinshui County, Jincheng City, Shanxi Province
Project Type: Cultural Tourism and Health Care Industry
Total Investment: RMB 486 million

II. Market Analysis
Considering the rich natural resources, development goal and transformation direction of Qinshui County, it is necessary to develop cultural tourism. Hot spring tourism is a new and popular industry that allows people to have leisure and health preservation, annual meeting of enterprises and family tours. This project fills the gap of more than a dozen counties and districts around Qinshui County. Combining with the unique castle culture, Emperor Shun culture and the brand “Millennium Qinshui County, A Picturesque County”, the project will become an important tourist attraction in Qinshui County, and an effective supplement to promote the development of cultural tourism industry.

III. Construction Contents
The water town covers a total area of 779,000 m2. Main construction contents include hot spring bathing center, hot spring commercial street, wedding photography base, featured wooden house area, featured camp area, etc. The total building area is 76,000 m2, including capacity building area of 50,000 m2.
The total construction investment is RMB 486 million. The project construction consists of two phases. Phase I construction needs investment of about RMB 150 million, and the construction period is 18 months. After the hot spring bathing center is put into operation and obtains stable income, Phase II construction will be started.

IV. Advantages Analysis
This project will play a great role in improving the Qinhe River sightseeing tour service function, extending the tourism product chain of Qinshui County and improving the tourism reception capacity and level of Qinshui County.

V. Project Progress
1. Land Use: We have reached a preliminary land use agreement with Zhengzhuang Town, Qinshui County. 66 mu of construction land is available for the Phase 1 Project, and can be expropriated for construction at any time. The land can be guaranteed.
2. Power supply, machine room and motors are in place for hot spring prospecting.
3. A hot spring well with daily water output of 1,500 m3 has met the conditions for use.

VI. Benefits Analysis
After the project is completed and put into operation, the revenue mainly comes from hot spring ticket sales, water entertainment, catering and accommodation, business conferences, wedding celebrations and other activities. According to preliminary calculation, Hot Spring Water Town of Qinshui County will receive 200,000 to 250,000 tourists each year under normal operation, and achieve annual income of RMB 90- 112.5 million and profits of more than RMB 30 million.

VII. Objective of Investment Promotion
Target Investors: Firstly, we will cooperate with those investors who have great strength and intention to invest in the project construction directly. Secondly, we intend to invest and develop the project through public-private partnership(3P) model, social capital and cooperation with relevant banks.
Amount of Investment: RMB 150 million for Phase I construction of hot spring bathing center
Investment Promotion Model: The project is to be built through cooperation, operated under trusteeship and invested by a sole investor.

VIII. Preferential Policies
According to relevant national, provincial and municipal policies, the Government of Qinshui County promulgated the Twenty Measures to Accelerate the Development of Cultural Tourism in Qinshui County.

IX. Contact Information
Investment Promotion Organization: Qinshui County, Jincheng City
Contact: Liu Tianming
Tel: 13935688288