1. Project Concept Project Concept Outline Project Concept Outline ► Executive Summary ► Background ► Challenge ► Suggested Solution ► Suggested Solution

2. Project Concept Business Concept Outline Business Concept Outline ► Aim of the Project ► Key Assumptions and Constraints ► Cost-Benefit Analysis ► Risk Assessment ► Risk Assessment

3. Business Case Ottawa – Water Park Ottawa – Water Park Ottawa is major tourist destination, the region is lacking a key recreational attraction such as full size water park. The aim of the project is to develop a full-size water park facility

4. Business Case Key Assumptions Key Assumptions ► Suitable location ► Source of financing ► Inflation factor ► Build by contractor ► Run by experienced management ► Timing ► Financial calculations

5. Cost-Benefit Analysis Revenue Projections Revenue Projections Using World Waterpark Association databases Estimated Attendance Gate Passes Parking Fees Concessions

6. Cost-Benefit Analysis Cost Analysis Cost Analysis Construction of Water Park Future Additions Annual Operating Cost

7. Cost-Benefit Analysis Evaluation Evaluation Net Present Value method will be adopted to determine the financial viability of the project.

8. Risk Assessment Obtaining Capital Construction delays Overrun construction cost

9. Cost Benefit Analysis Revenue Analysis Attendance Calculation Market Area Population Penetration (%) Estimated Attend 0-8 Km 200,0004080,000 8-16 km 300,0003090,000 16-24km280,0002056,000 24-40 km 320,0001032,000 Tourists500,0001050,000 TOTAL308.000 The estimated attendance is considered to +/- 20%

10. Cost Benefit Analysis Admission Price Price Category Age Attendance (%) Price Full Day – Half Day Infant0-20Free Children3-1225 16.00 - 12.00 Teenagers13-1735 20.00 – 14.00 Adults18-6440 24.00 – 16.00 Senior Citizens Over 65 2 12.00 – 8.00 Average Price $ 18.60 Gate Receipts would be approximately $5,729,000

11. Cost Benefit Analysis Parking Revenue Calculations Approximately $289,000 per year Capacity of Approximately 4500 guests Average Vehicle contains 3.6 passengers Average 70% guests travel by Cars Approximately 1000 vehicles will be used Estimated Revenues: (308,000 x 0.675 / 3.6) x 5 = $ 288,750

12. Cost Benefit Analysis Concession Revenues Consists of food, beverages, merchandise Annual Revenue per person: 308,000 x $ 5.00= $1,540,000 Total Project Annual Revenues Gate Receipts$ 5, 729,000 Parking$ 289,000 Concessions$ 1,540,000 TOTAL$ 7, 558,000

13. Cost Analysis Initial Project Cost Preliminary Planning & Studies$ 200,000 Site Construction$ 8,000,000 Attractions and Equipment $ 2,000,000 Initial marketing, promotions, advertisement$ 300,000 Project Management Fees$ 1,500,000 TOTAL PROJECT COST$ 12,000,000

14. Cost Analysis Annual Operating Cost Land Lease (fixed)$ 50,000 Advertisement and Promotion$ 750,000 Concessions (50% margin) $ 770,000 Salaries (15% of revenue)$ 1,134,000 Repair & Maintenance $ 300,000 Utilities (5% of revenue)$ 378,000 Insurance (fixed)$ 300,000 Administrative Over heads (all fixed)$ 870,000 GRAND TOTAL$ 5,066,000