The Primorsky Krai Development Corporation announced the beginning of receiving applications for the right to lease the land in the integrated entertainment resort Primorye (gambling zone). It is planned to build new casinos, hotels and entertainment facilities.
As the Primorsky Krai Development Corporation reported, the transfer of land plots to the new investors of the project will be through an open auction procedure.
«To date, the auction is the most transparent procedure for choosing an investor, which let allow the maximum number of companies to participate. At present, 10 sites with a total area of 60.8 hectares remain free on the territory of the IER We plan to hold several auctions in which all the lots will be exhibited in turn», said Igor Trofimov, Interim General Director of the Corporation.
The first lot will be presented as two plots under numbers 12 and 27, with a total area of 14 hectares. The minimum amount of investments should be at least 8 billion rubles. According to the requirements specified in the business plan of the project, the purpose of the sites is a hotel complex of category 4 * with a casino and parking. Along with a new facility, it is planned to create new bars, restaurants and provide other entertainment services.
«Our project is not only a gambling zone, nevertheless, the construction of a casino is the most profitable direction for an investor, taking into consideration the unique advantages of the territory and the potential tourist market. However, it is important to understand that our main task is to create an integrated entertainment resort, which implies not only the development of gambling and hotel construction, but also the full development of the entertainment sector. We plan to make the resort the main attraction for tourists to Primorsky Krai and the Russian Far East by creating places for youth and family recreation, included», Igor Trofimov stressed.
Primorsky Krai Development Corporation is responsible for developing the engineering infrastructure of the resort - the construction of the road network, water supply and sewerage networks, telecommunications and heat supply, as well as the concluding of the investment agreements, as well as providing comprehensive advice and practical support to investors who intend to invest in the economy of Primorsky region.
Within the framework of the gambling zone project, seven investment agreements have already been concluded with a total investment volume of over 65 billion rubles. At this point in the territory of the gambling zone in addition to the existing complex with a casino Tigre de Cristal, there are two more major gambling and entertainment facilities is expected: a hotel complex with a water park and casino «Naga Vladivostok» (Cambodian company Naga Corp Ltd.) and hotel complex with a casino «Selena» (a group of Russian companies LLC «Diamond Fortune Holdings Prim»). The construction will be completed by the end of 2019.
Along with specialized federal structures, the Primorsky Krai Development Corporation is in the process of negotiating with several companies from Russia, China, Republic of Korea and European countries.
Integrated entertainment resort «Primorye» - the largest tourism project in the Far East Russia of gambling and entertainment type. On its territory, it is planned to create at least 8 hotels with restaurants and casinos, as well as entertainment facilities. The total area is 619 hectares. The first stage of the project is designed until 2022. The project is implemented in the likeness of Macau and Las Vegas.
High prospects of the project are due to several factors: the unique geographical advantages of the resort - it is located 15 kilometers from the international airport and 50 kilometers from the city of Vladivostok. Also, the territory of the IER is in two hours' flight from the major economic centers of Northeast Asia.
About 400 million people live in the radius of two or three hours of flight only in Japan, Northeast China and the Republic of Korea. The coastal strip with high recreational opportunities, the unique ecosystem of the region and its proximity to the Asia-Pacific Rim countries make the entertainment resort one of the most successful projects.
Accessibility for tourists visiting the resort provides visa-free exchanges with Asian countries - the PRC and the Republic of Korea, as well as the introduction of a simplified visa regime. On August 1, 2017 in the Primorsky region a simplified visa regime for 8 days with a term visa for up to 4 days for the people of 18 countries: China, North Korea, Brunei, India, Mexico, Singapore, Japan, Algeria, Bahrain, Iran, Qatar, Kuwait, Morocco, United Arab Emirates, Oman, Saudi Arabia, Tunisia and Turkey.
And most importantly, the tax regime provides for the lowest tax rates on gambling in the world. The tax charge for one gaming table is 125 000 rubles, for one slot machine - 7 500 rubles. At the decision of the Government of the Russian Federation to increase the tax corridor for casino operators in Primorsky Krai for investors in the gambling zone «Primorye», the amount of tax paid remains the same. Tax holidays for the property tax are also provided (0% for the first 5 years, 0.5% for the next 5 years, and 2.2% for the subsequent time). In addition, on the basis of the Primorski Kray's facilities in 2018, the Tax Free and Duty Free regimes will be launched for the first time in the region in the frame of gambling resort project.