1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

A resort hotel is a hotel primarily designed to receive leisure vacation tourists, providing various service functions such as accommodation, dining, entertainment, and amusement for them. Unlike typical city hotels, resort hotels are mostly built near natural scenic areas such as coastal areas, mountains, forests, canyons, rural areas, lakes, and hot springs. They are widely distributed and radiate throughout the country, conveying to tourists the rich and diverse regional and ethnic cultures, historical and cultural heritage, and more.

The project relies on the hot spring resources of Jiangyuan District to construct a comprehensive tourism and wellness multi-functional resort hotel that integrates hot spring health preservation, leisure vacation, green cuisine, business conferences, water parks, and elderly care and rehabilitation.

1.1.2 Market prospect

1. Development status and prospects of China’s resort hotel industry

(1) The tourism market is recovering, and the development momentum of resort hotels is strong.

In 2023, some tourism hotspots such as special force soldier travel, camping and hiking, dopamine cycling, ice and snow sports, heading to Zibo for barbecue, Citywalk and “village basketball association matches” in Guizhou, etc. and the implementation of the measures to boost confidence through tourism consumption policies and comprehensive guarantees from various levels of government and departments, have continuously injected fresh blood into China’s tourism, and the tourism market has continued to recover and grow, providing opportunities for the development of the resort hotel industry.

According to data, in 2023, Chinese residents traveled 4.89 billion times, a year-on-year increase of 93.3%; the total expenditure of Chinese tourists on travel was 4913.3 billion yuan, a year-on-year increase of 140.3%. Meanwhile, in the category of themed hotel brands, vacation hotels accounted for 16.2% in 2022, and among the newly opened high-end hotels in Q1 of 2023, resort hotels accounted for 23.73%.

(2) The scale of China’s resort hotel industry continues to expand.

With the surge in popularity of tourism themes such as ecological experience, urban travel, and health and wellness living, the development scale of China’s resort hotel industry continues to expand. Due to the fact that some consumers’ demand for urban business hotels is for business travel and other accommodation needs, the market revenue of business travel and other needs is offset by the overall market size of commercial hotels, and considering the proportion of urban resort hotels in the high-end hotel renovation of core business districts in recent years, the market size of urban resort hotels is estimated. Therefore, it is expected that the market size of urban resort hotels in China will have reached 504.7 billion yuan by 2026, with a compound annual growth rate of 11.63% from 2021 to 2026.

2. Development status and prospects of the hot spring vacation industry

(1) Development status of the hot spring vacation industry

China is one of the countries with the richest hot spring resources in the world, and the distribution of its hot spring resources shows obvious regional characteristics. According to statistics, there are more than 3000 hot spring resource points in China, among which the hot spring resources in Yunnan, Xizang, Guangdong, Sichuan and Fujian are the most concentrated, accounting for almost three quarters of the national hot spring resources.

From a national geographical perspective, hot spring tourism in China is mainly concentrated in East China, South China, Southwest China, and North China, accounting for nearly 75% of the total. In terms of types, large and medium-sized hot spring tourist destinations are densely concentrated in the eastern part, especially in southern and eastern China; small hot springs are more abundant in the southeast and less in the northwest, with East China and South China leading the way. Leisure hot springs are located in the south of China, with Southwest China and East China being the most popular; the natural sightseeing hot springs are prominent in the west of China and dominate in the southwest of China. The root cause of this differentiated distribution is complex. The level of economic development determines investment and consumption capacity, the convenience of transportation affects accessibility, the maturity of the tourism market shapes product form, and the natural environment is a direct factor in the distribution of hot spring resources.

According to the “ Hot Spring Tourism Consumption Trend Report 2023 released by Tuniu, the development of hot spring tourism projects in 2023 presents a positive trend with a broad market prospect. According to incomplete statistics from Haisen Tourism, there were a total of 70 hot spring tourism projects in the year, covering various types such as hot spring resorts, hot spring hotels, hot spring complexes, and hot spring spas. These projects have made positive progress in signing contracts, engineering construction, and opening. According to relevant survey data, the market size of the national hot spring vacation industry is expected to reach 523.53 billion yuan in 2023, while the market size in 2018 was only 400.49 billion yuan, with a growth rate of over 30%.

(2) Development trends of the hot spring tourism industry

In recent years, with the progress of society, the development of the economy, the continuous improvement of national income level, the continuous maturity of tourism transportation conditions, the increasing disposable time, the strengthening of leisure and health awareness, and the continuous launch of hot spring tourism products, hot spring tourism with the purpose of leisure, fitness, and health has developed rapidly in China. Hot spring tourism has become an important development direction of the tourism industry today. In the long run, the hot spring tourism industry has broad development prospects and diversified cross-industry extension space.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The Central Economic Work Conference 2024 listed “vigorously boosting consumption, improving investment efficiency, and expanding domestic demand in all aspects” as the top priority of the nine major tasks for 2025, and clearly put forward specific requirements such as “innovating diversified consumption scenarios, expanding service consumption, and promoting the development of cultural tourism”.

In the 14th Five-Year Plan for the Development of Tourism, the State Council has explicitly included the hot spring tourism industry in the national development strategy and proposed the goal of “developing hot spring tourism and building comprehensive health tourism bases”.

On September 27, 2023, the General Office of the State Council issued the Measures to Unleash the Potential of Tourism Consumption and Promote High-quality Development of Tourism. This measure proposes a series of important tasks, including increasing the supply of high-quality tourism products and services, promoting deep integration of culture and tourism, enriching diverse tourism formats, and orderly promoting red tourism.

The 14th Five-Year Plan for the Development of Culture, Tourism and Sports in Baishan City proposes to fully leverage the core attraction and brand appeal of national 5A scenic spots and national tourist resorts, focusing on creating ecological vacations, ice and water sports, hot spring health culture and leisure products, further strengthening the deep integration and innovation of culture and tourism, promoting the integrated development of industries such as “culture and tourism+sports” and “culture and tourism+health”, and creating a cultural tourism industry cluster in Changbai Mountain.

(2) Resource advantages

The hot springs in Baishan City are rich in minerals such as radon, strontium, calcium, magnesium, hydrogen sulfide, etc., which can be used for bathing and drinking, and have the effects of beauty and health care. Linjiang City is located in the hinterland of Changbai Mountain Nature Reserve, with a forest coverage rate of 86.8% and an air negative oxygen ion content of 90000 per cubic meter. The hot springs belong to the Upper Proterozoic underground silicic acid hot springs, with a daily output of 3000 tons, a year-round temperature of 33℃~41℃, and a pH value of 7.43~7.80. They are rich in nearly 30 beneficial trace elements for the human body, such as silicon, lithium, zinc, radon, iodine and selenium. The silicic acid content is 26.00~29.25 (milligrams/liter). Long term consumption and bathing can activate human cells, delay aging, especially for hypertension, coronary heart disease, arteriosclerosis, etc., and have definite preventive and bathing effects.

There is a hot spring in the project area, with a depth of 2180 meters and a water temperature of over 37°C. The daily inflow is 258 cubic meters. After testing by the laboratory of Beijing Geological Engineering Survey Institute, the radon content is 39.5 Bq/L, which meets the standard of medical value concentration specified in the “Geological Exploration Specification for Natural Mineral Water”.

(3) Industrial advantages

Baishan City currently has 6 ski resorts and 68 ski slopes with a total length of 51 kilometers, becoming a holy land in the hearts of skiing enthusiasts. 29 A-level scenic spots, 72 A-level rural tourism operation units, and 5 hot spring tourism resorts have formed a ice and snow tourism industry cluster of Baishan that integrates ice and snow, hot springs, folk customs, vacation, drifting, hunting, and study, meeting the ice and snow tourism experience of different consumers.

(4) Talent advantages

There are 63800 professional and technical talents in Baishan City; there are 13000 highly skilled talents, including 39 young and middle-aged experts who have made outstanding contributions; thirteen top-notch innovative talents have formed a talent team that has initially taken shape, with a relatively complete range of categories and gradually strengthened overall strength. There is Changbai Mountain Vocational and Technical College in the urban area, which is a public ordinary university with higher education enrollment qualifications approved by the Jilin Provincial Government and registered with the national education system. The college is a multi-level and multi-class teaching-oriented vocational college that mainly focuses on higher education, takes into account secondary vocational education, and also carries out social training and vocational skills certification education. The college has 18 vocational majors for national enrollment and 12 vocational majors for provincial enrollment. The college training center offers skill training and vocational qualification education for over 30 projects in six major categories, with an annual training capacity of 5000 people.

(5) Location advantages

Highways and railways crisscross Jiangyuan District, with five national and provincial trunk highways including the Hegang-Dalian Line and Shenyang-Changchun Line running through the area, and two railway trunk lines, the Hunchun-Baishan Line and the Yayuan-Dalizi Line, connecting the north and south. The Hegang-Dalian Expressway and Linjiang-Huinan Expressway have been completed and opened to traffic, and the urban area is 5 minutes and 15 minutes away from the two highways respectively. Baishan New Branch Airport is actively advancing, and the early construction section of the Siping-Baishan High-speed Railway Control Project has officially started. There is a station in Wangou Town within the area, and the urban area is only a 10 minute drive from the new airport and Baishan East Station of the Shenyang-Baishan High-speed Railway. Jiangyuan has formed a 1-hour economic circle in Baishan City. With the construction of high-speed railways and airports, Jiangyuan District will form a 3-hour economic circle with Beijing, Dalian, Shenyang and other places, making factor sharing more convenient and smooth.

The project is located on the middle connecting line between the two main urban areas of Jiangyuan District and Hunjiang District in Baishan City, directly radiating the entire Baishan urban area. The total population within a radius of 50 kilometers reaches over 800000 people, and the urban living facilities are complete. There are large shopping malls such as Eurasia and Jinding, and it is adjacent to the largest Songhua Stone exhibition and trading market and Songhua Stone Museum in the country, meeting daily life needs. The surrounding rural tourist attractions with  characteristics of Northeast China meet the needs of leisure play. The project is less than 100 kilometers away from Tonghua City and 170 kilometers away from Changbai Mountain tourist attraction. The conditions for external and internal communication are good, and it is 3 kilometers away from the east entrance of Baishan of the Hegang-Dalian Expressway, which connects the three provinces of Heilongjiang, Jilin, and Liaoning; 15 kilometers away from the entrance of Huinan-Baishan Expressway connecting Changchun and Linjiang; 15 kilometers away from the under construction Baishan Station on the Shenyang-Baishan High-speed Railway and 13 kilometers away from the upcoming Baishan Airport; 17 kilometers away from Baishan Highway Bus Terminal. The tourism channel is smooth and accessible, with obvious transportation and location advantages.

1.2 Contents and scale of project construction

The project is divided into two phases of construction, with the first phase continuing and decorating the hot spring hotel and apartment area of 40708.11 square meters (including 36616.20 square meters above ground and 4091.91 square meters underground); construct and renovate a conference office building with a building area of 4300 square meters. The second phase of the construction and renovation of the water park covers an area of 14961.28 square meters (including 14381.28 square meters above ground and 580 square meters underground), with an outdoor hot spring pool area of 4010 square meters.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 360.23 million yuan, including the construction investment of 288.184 million yuan and current funds of 72.046 million yuan.

1.3.2 Capital raising

Self-raising by the enterprise

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 200 million yuan, its profit will be 60 million yuan, its investment payback period will be 9 years (after the tax, including the construction period of 2 years) and its return on investment profit rate will be 16.66%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The implementation of this project can not only improve the local tourism infrastructure and living environment, but also complement other tourist attractions, provide certain investment and employment opportunities for the local area, and promote local economic development and social stability.

1.5 Cooperative way

Joint venture, cooperation, sole proprietorship, and other methods can be discussed face-to-face.

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed face-to-face.

1.7 Construction site of the project

Jiangyuan District, Baishan City

1.8 Progress of the project

In May, 2016, with the strong promotion of the Jiangyuan District Committee and Government, the Transportation Investment Group approved Changchun-Jilin-Tumen Culture Co., Ltd. to establish Baishan Changchun-Jilin-Tumen Development and Construction Cultural Industry Development Co., Ltd. in Jiangyuan District, Baishan City. On June 6, 2016, it jointly signed the Hot Spring Hotel Project Asset Transfer Agreement of Jiangyuan Shenlong Mining Group Co., Ltd. with Jiangyuan District People’s Government, Baishan Jiangyuan Shenlong Mining Group Co., Ltd., and Baishan Jiangyuan Jinze Coal Co., Ltd., and acquired some assets such as the hot spring hotel under construction, mainly including:

(1) A construction project under construction with a building area of 40708.05 square meters, consisting of 12 floors above ground and one basement floor. The main structure is capped and the internal masonry is partially completed.

(2) One piece of commercial land has been delisted, covering an area of 26667 square meters. The land transfer fee has been fully paid (approximately 23400 square meters of government reserved land on the west side of the project site has not been auctioned or listed).

After the merger and acquisition of the project, no continuation work has been carried out and it is currently in a stagnant state. The state-owned land use certificate has been changed to the name of Baishan Changchun-Jilin-Tumen Culture Co., Ltd. The preliminary design scheme, feasibility study (not yet reviewed), and water conservation have been completed, and the project’s new planning and site selection opinions have been processed. In order to ensure the smooth progress of the subsequent construction of the project, the Bureau of Housing and Urban Rural Development of the district has issued the Explanation on the Previous Government Approval Documents for the Jiangyuan District Hot Spring Hotel Project and the Explanation on the Relevant Situation of the Continuation of the Jiangyuan District Hot Spring Hotel Project, guaranteeing the procedures for the commencement and continuation of the project. In July, 2021, Jinmao Construction Engineering Testing Co., Ltd. in Baishan City conducted a quality and safety inspection and appraisal of the completed building, and the appraisal result showed that the overall design requirements of the project were met. At present, the project has completed an investment of 53.68 million yuan and is being planned for revitalization.

2. Introduction to the Partner

2.1 Basic information

Name: Bureau of Jiangyuan District, Baishan City

Address: Building 25, Fuqiang Phase 2, Jiangyuan District, Baishan City

2.2 Overview

Jiangyuan District is located in the southeast of Jilin Province. Located between longitude 126° 23′ -127° 11′ E and latitude 41° 48′ -42° 13′ N, it borders Fusong County to the east, Liuhe County and Badaojiang District to the west, Linjiang City to the south, and Jingyu County to the north. The distance between east and west is 69 kilometers, and the distance between north and south is 44.4 kilometers, with a total area of 1348 square kilometers.

Jiangyuan District has always adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the important instructions of General Secretary Xi Jinping’s inspection of Jilin, focused on the core strategic arrangements and overall leadership direction of the Municipal Party Committee, based on the new development stage, implemented the new development concept, integrated into the new development pattern, created new development advantages, adhered to the principles of ecological development, industrial strength, characteristic enrichment, and innovative development, deeply implemented the “1151” development strategy, persisted in revitalizing stock, expanding increment, and striving for excellence, solidly carried out the “six-aspect stability” work, fully implemented the “six-guarantees” task, continuously created a new situation of green transformation and high-quality development, and vigorously advanced towards the second centenary goal of comprehensively building socialist modernization.

In 2024, the main expected goal for the economic and social development of the entire region was to achieve a regional GDP growth rate of over 7%; the total output value of industrial enterprises above a certain scale increased by more than 20%; the fixed assets investment of the whole society increased by more than 8%; the total retail sales of consumer goods increased by over 8%; the per capita disposable income of urban and rural permanent residents increased by over 6% and 8%, respectively.

2.3 Contact method

Contact unit: Baishan Bureau of Commerce

Contact person: Zhu Yuze

Tel: +86-439-3367020   

    +86-15844990231