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© HORSESHOE BAY ANDAMAN RETREAT 2018 | CONFIDENTIAL |

Horseshoe Bay Andaman Retreat I Background Information

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Magnificent site situated on the isthmus south of Dawei, Myanmar

International standard 4-star resort accommodating 100 guests

Targeting Myanmar’s international beach, scuba diving and resort market

Myanmar’s 1st PADI 5-Star Scuba Dive School and Centre

The only full-scale dive centre between Ngwe Saung and Kawthaung

$3,000,000 Capital Investment for construction and fitout

120 employed during 8 month greenfield construction

45 Permanent Staff during operations (41 local)

Career opportunities with other group Food, Beverage & Hospitality operations

Industry training and service levels of excellence

Responsible procurement, local suppliers, low environmental footprint

Flagship hospitality project just south of Dawei SEZ

Executive Summary

Horseshoe Bay Andaman Retreat


Location

Horseshoe Bay Andaman Retreat

ANDAMAN SEAMERGUI

ARCHIPELAGO

GULF OF

MARTAAN

MOSCOS

ISLANDS

GULF OF

THAILAND


Location

Horseshoe Bay

Andaman Retreat


Location


History

Myanmar’s history can be traced back to the 2nd century when the Rakhine ruled the west coast and

Pyu civilization flourished in the central regions. Throughout the years great kingdoms came and went

until the Third Myanmar Empire fell in 1885 to the colonial British; Myanmar subsequently regained

independence in 1948.

For many years thereafter Myanmar disappeared behind a wall of self-isolation, and only recently

reopened its doors to the outside world, revealing the country’s unique culture and stunning scenery to

new generations of visitors.

Myanmar Tourism


Culture & religion

85% of Myanmar’s population practices Buddhism, but there are substantial numbers of Christians,

Hindus, Muslims and animists throughout the country. It is therefore not unusual to see pagodas,

churches, mosques and temples standing together in a single neighbourhood. Spirit worship also exists

side-by-side with Buddhism, as these minor gods are believed to be disciples of the Buddha’s

teachings.

Aspects of Burmese culture are most apparent in religious sites. The country has been called the "Land

of Pagodas" as the landscape is dominated by Buddhist pagodas or stupas.

Myanmar Tourism


Language and dress

There are more than 100 ethnic groups in Myanmar, all with their own languages and dialects. The

majority speaks Myanmar (Burmese), although English is widely spoken in urban areas and tourist

hubs like Yangon and Mandalay. Helpful tour guides that speak major foreign languages can be booked

through your tour operator. The traditional Burmese greeting is “mingalaba” (roughly translated as

'auspiciousness to you'). Greetings such as "Have you eaten?" are still common.

The typical garment of the Burmese is the longyi, a sarong worn by both men and women. In urban

areas, skirts and pants are becoming more common, particularly among the young.

Myanmar Tourism


Lifestyle

There are twelve months in the traditional Burmese calendar and twelve corresponding festivals. Most

of the festivals are related to Burmese Buddhism and in any town or village the local paya pwè (the

pagoda festival) is the most important.

Football is the most popular sport in Myanmar. Similar to football, Chinlone is an indigenous sport that

utilises a rattan ball and is played using mainly the feet and the knees, but the head and also the arms

may be used except the hands.

Burmese cuisine has been influenced by Indian, Chinese and Thai cuisines as well as domestic ethnic

cuisines. A typical Burmese meal consists of several meat curries, a soup, steamed rice and fermented

sauce of preserved fish, along with vegetables for dipping.

Myanmar Tourism


Geography

Myanmar is geographically the largest country in Southeast Asia. Rich not only in traditions, Myanmar’s

fertile land is crossed by a number of rivers that are used for transportation, irrigation, and also as a

source of food. Myanmar’s primary river artery is the Irrawaddy, often referred to as the Ayerawady.

Mines have yielded some of the world’s finest rubies and imperial jades, while the sea off the southern

coast is prime breeding ground for cultured pearls of excellent lustre.

Myanmar Tourism


Dawei Peninsula Tourism

Beaches

Forests

Mountains

Villages

Farms

Fisheries

Pagodas

Islands

Underwater


Context: The Mergui (Myeik) Archipelago

Our back yard

If you want the most unique diving experience in the planet, then Myanmar is the place for you. Its

waters were closed off until 1997, which means that they are relatively unexplored and undiscovered

by even some of the most seasoned divers. With gorgeous landscapes made of caves, soft and hard

coral, incredibly rich wildlife and exclusive dive sites, it is diving like you’ve never done it before.

Burma’s Mergui Archipelago offers over 800 islands sprinkled throughout 12,000 square kilometres of

crystalline waters just begging to be discovered. Since Burmese waters were opened, only a few boats

have begun to appear, yet the islands remain almost entirely uninhabited save for the odd Burmese

sea gypsies. Most divers who go to Burma seek the mysterious waters of the Mergui Archipelago. This

off-the-beaten-path diving destination is made mostly from limestone (ensuring there are plenty of

caves and tunnels) and a few granite pinnacles circled by a wide diversity of corals of beautiful colour.


The initial development phase will have nine projects and increase the

demand for tourism products exponentially

Dawei SEZ is a 7-year project lasting from 2015 to 2022. The project has two phases, initial and main.

The initial phase must be completed by 2018 and it will cost US$350 million or about 450 billion kyat.

According to the project blueprint, there will be industrial zones, a deep-sea port, small port, schools,

markets and hospitals with water and electricity, and a small city with essential infrastructure. This mega

project will help Myanmar trade with Thailand (Bangkok highway under construction), India and Vietnam.

The project is expected to bring around 5000 skilled professionals to settle in the Dawei area, growing

the domestic tourism market.

Context: Dawei Special Economic ZoneA seven-year mega project is being built 100km up the coast

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Development concept

Horseshoe Bay Andaman Retreat will consist of:

• 22 luxury beachfront double villas

• 32-bed private room rest house, and a 24-bed dive school

• Restaurant and bar serving quality fresh dishes and refreshing drinks

• Communal Longhouse area for dining and relaxing

• Spa and complementary gym, multiple water sports and mountain biking

• Beachfront swimming pool with deep scuba training section

• Fully registered PADI 5* Instructor Development Dive Centre offering courses,

recreational dives, day trips and liveaboard access to the Myeik Archipelago

The Retreat will have its own liveaboard Dive Boat for extended adventures

as well as smaller boats for local day dives and fishing excursions.

The Retreat will operate a stop-over in Dawei, offering guests a sanctuary,

restaurant and overnight accommodation while providing the Retreat with

logistic support.


Horseshoe Bay Layout


The Horseshoe Bay Experience

Horseshoe Bay Retreat plans to offer a genuine resort experience but is located in a

geographically interesting and heritage rich region.

Guests can enjoy luxury accommodation directly on the sand, accompanied by fantastic food,

spa treatments, fitness training, yoga, scuba diving introduction or training, advanced dives,

live aboard adventures and great fishing.

Nearby cultural and natural sights such as pagodas, villages, forests and islands complete the

Retreat experience for a perfect vacation.


Accommodation

Luxury Villas, Private Twins, Dive Camp

Horseshoe Bay Retreat will cater for a diversity of guests looking to relax on the coastline and

enjoy some adventure activities.

The Retreat will boast 22 private luxury en suite double villas with sea views and direct beach

access, while cost-conscious guests will enjoy one of the 16 private twin rooms with shared

bathrooms and lounges. The Dive Camp will sleep 24 in bunk-style accommodation and allow

guests more budget for scuba courses and trips.


Hospitality

Restaurant, Bar, Pool, Spa

The “Longhouse” will host guests for an

international culinary experience with its fully

equipped kitchen, bar and great setting.

The on-site spa and gym will cater for

muscles and joints in style, while the

beachside pool will accommodate relaxed

bathing, tanning and scuba training in its

custom deep end.


Activities

Dive Centre, water & land sports, exploring

While traditional hospitality visitors will love the Retreat’s amenities and menus, active

travellers will revel in the fully equipped PADI 5-Star Instructor Development Dive Centre

designed to host courses from Discover Scuba to Instructor including recreational diving to

multiple locations offshore. This will be supported by the activity boats for day trips and scuba

liveaboard for multi-night adventures into the Mergui (Myeik) archipelago.

Guests will also enjoy the complementary mountain bikes, SUP boards, sea-kayaks and

scooters to explore the peninsula and coastal waters in a low-impact, fun and active manner.


Operations

Horseshoe Bay Andaman Retreat will boast 5 main revenue streams

1. PADI 5-Star Instructor Development Dive Centre for courses, recreational adventure

dives and multi-night liveaboard trips.

2. Accommodation bed nights

3. Private tour bookings

4. Longhouse restaurant & bar

5. Spa treatments


Foreign tourists

Myanmar Tourism is underserved with activities for western tourists beyond the obligatory Pagoda and market/village visits.

Horseshoe Bay plans to offer a genuine resort experience but located in a geographically and heritage interesting region. The

great food, lots to do, enthusiastic staff and high quality accommodation will make the Retreat competitive with Thailand and the

Maldives.

Health and Fitness

Horseshoe Bay Retreat staff will include a certified Personal Trainer and Dietician. Adventure tourism including trekking, climbing

and mountain biking will be included in fitness/weight loss programs. Diabetes is a significant problem in Asia and AARDM will

offer complementary diets and other proven systems to enhance guest health.

Religious tourists

Dawei is a highly regarded religious tourism area with a pilgrimage to the 8 main pagodas of the region taking on an ‘epic’ venture

for Buddhists visiting the region. Shin Maw Pagoda on Horseshoe Bay's eastern arm is the final Pagoda on this Pilgrimage. The

Retreat will work with travel agents from Thailand and other regions to make this visit a ‘must’.

Gap year tourism

Gap Year tourism in Europe, Australia and the US is a billion dollar industry where there are short programs offered globally.

Horseshoe Bay Retreat will cater for 3-6 month programs and offer a hybrid of Dive Training to Instructor Standard, working in the

local community schools, developing tourism infrastructure, subsistence farming techniques and educational tours across

Myanmar to Bagan, Yangon, Mandalay and Inle Lake. This will focus on the Low Season months in particular in order to keep

rates accessible for guests and occupancy numbers up.

SEZ development

The development of the Dawei SEZ will have a profound effect on the region and dramatically increase demand for quality

recreational facilities. Up to 5000 expatriate management staff residing at the SEZ are estimated and high speed road access to

Bangkok within less than 4 hours i.e. planned. This inherent client base and the potential of Thailand tourism enhances the

Retreat's position considerably.

Target markets


Differentiation

Magnificent site situated on the isthmus south of Dawei, Myanmar

International standard 4* resort accommodating 100 guests

Myanmar’s 1st PADI 5* Scuba Dive School & Centre (only full-scale dive centre between Ngwe Saung and Kawthaung)

Activity and lifestyle focused Retreat with land and water sports

Strong eco-friendly, responsible and sustainable business approach

Elegant, focused and world-class brand

Integrated marketing focus

Bespoke listings & agents

Global booking engines

Full-suite digital marketing

Channels through Scuba Diving marketing

Guide books and feature publications

Festival packages and specials

Tour packages unique to the Group

Gap Year Tourists with social and environmental programs

International trade shows (specialist e.g. Scuba and general e.g. Myanmar, Resorts)

Sales, Marketing and Promotions


Horseshoe Bay Retreat will demonstrate how traditional Myanmar tourism can be

incorporated with luxury, adventure and exclusivity while developing a responsible

business that creates shared value.

The Capital Cost The project will contribute to the local economy during the construction phase with local purchases and labour hire. We

will actively work with local suppliers of materials in order to develop their quality and consistence and aim to reduce our

use of imported goods as much as possible.

EmployeesDuring construction there will be more than 120 staff on site with more than half employed locally. Construction skills

transfer will take place through out the build period. Once in operation the resort will have a minimum of 45 full-time staff

with more than 80% hired locally.

TrainingThe resort will offer vocational training for all positions in the resort operation including dive instructors, machinery

mechanics, chefs and sea captains while industry accepted training will be offered to wait staff, housekeepers,

gardeners and boat and dive crews.

Local SuppliersThe resort will try and buy locally and will assist local farmers to develop crops required by the restaurant, while

fishermen will supply the majority of protein offered on the menus. We aim to reduce imported food as much as possible

and serve fresh, seasonal and local inputs though our menus.

Benefits for Myanmar and Local Area


Horseshoe Bay Retreat will demonstrate how traditional Myanmar tourism can be

incorporated with luxury, adventure and exclusivity while developing a responsible

business that creates shared value.

Local social and environment programs

Programs and initiatives for local social and environmental development will be developed for all

guests, especially gap year clients.

Gap Year Tourism is based on 17-20 year old students from around the world, between high school and

university, gaining life experience, giving back to communities and hopefully developing into thinking

and caring young adults. Gap year and other guests will have the opportunity to interact with local

schools teaching English, Music and Arts.

Research projects will be undertaken investigating marine life and the effect that tourism is having on

the region. The students in cooperation with local tourist attractions will construct walking tracks,

access stairs and erosion protection systems. In general, the gap year students will actively interact

with the local community for both parties’ mutual benefit.

Sponsorship plays an important part of Gap Year Tourism and the participants will, as part of their

costs, contribute to a Sponsorship Fund operated by the resort to supply educational material and

equipment.



Eco-friendly and responsible construction will include

Rooftop solar panels

Best-in-class insulation for thermal efficiency

Custom energy efficient windows

Programmable thermostats

Low VOCs in paints, carpets and other building materials

Water efficient plumbing fixtures

Compact florescent lighting

Landscaping with native plants and water conservation measures

Protected green space

Benefits of eco-friendly building

Conservation of natural resources

Enhancement and protection of the property’s natural surroundings

Improved indoor air quality

Improved health and comfort of residents

Minimized impact on the local infrastructure

Reduction of construction waste sent to landfills

We believe that the owner or developer of an eco-friendly project gains economic benefits, enhanced asset

value, and lower operating costs. In many countries a developer also gains tax and rebate incentives.



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