North Caucasus Resorts Open Joint-Stock Company and Chinese Beijing Urban Construction Group Co., Ltd. (BUCG) agreed to cooperate within the framework of implementation of the project of the tourism cluster in the North Caucasus Federal District, the Krasnodar Territory and the Republic of Adygea. The memorandum of understanding was signed on Friday, October 9, at the Ministry of the North Caucasus in Moscow, according to the results of a two-day visit of the Chinese delegation to the sites of the first stage of the tourism cluster project. The document was signed by Oleg Gorchev, Director General of NCR OJSC and Mrs. Din Lee, Vice President of BUCG, in the presence of Andrey Resnikov, Deputy Minister of North Caucasus Affairs.

According to the document, the parties will engage in attracting investment and construction of the infrastructure facilities of the tourism cluster project. The cooperation is expected to start with the work on attraction of investments and the establishment of a pilot facility located in one of the special economic zones of the tourism cluster.

“Strong growth of the interest of Chinese people to the ski industry - from 2000 to 2005, it grew up in 25 times: in the beginning, the number of skiers amounted to 5 million people, while in 2014 this figure has already reached the level of about 20 million skiers - causes the increased attention of Chinese investors to develop the ski sites both in and outside the country,” said Andrey Reznikov. In his view, the project implemented by NCR OJSC is one of the iconic ones in the international market and is able to first draw the attention of investors, and then the interest of tourists from China, so achieving the understanding with BUCG can be an important step towards mutually beneficial cooperation of the parties. “Foreign investors see a high level of public support for the project of the tourism cluster implemented by NCR OJSC, including in the form of state guarantees of the Russian Federation, so their interest to the project is growing. Especially since the adoption of the Development Strategy of NCR OJSC until 2025, which clearly indicates the Company plans in the medium term,” the Deputy Minister added.

“According to the World Tourism Organization, by 2020, China will supply 100 million tourists to the world market, which will amount to 6.4% of global tourist flows. Therefore, when creating our facilities we are ready to take into account the interests of the tourists not only from Europe, but also from Asia. And the cooperation with one of the key developers of China will certainly help us,” noted Oleg Gorchev. He added that the company officials got acquainted with the infrastructure created within the frames of the special economic zones in Kabardino-Balkaria and Karachay-Cherkessia, and are ready to discuss specific projects. “We plan to agree on the action plan to implement the Memorandum and to sign the appropriate road map within the next two months,” said the Head of NCR OJSC.

Ms. Din Lee, Vice President of Beijing Urban Construction Group Co., shared her impressions of what she saw at the resorts of the North Caucasus. “I have been in many countries, I’ve seen much, but Elbrus became the highest point I’ve visited,” she said, also noting that visiting Arkhyz ATRC has enhanced the company’s interest in developing cooperation with NCR OJSC.

Mrs. Din Lee announced broad opportunities for cooperation with the Russian partners, including through the Ministry of North Caucasus Affairs. “With regard to the tourism cluster project, one can participate in the construction and promote the investment activities. We have good relationships with many Chinese companies, and we are ready to help establish the dialogue between them and the resorts of North Caucasus resorts OJSC. The Chinese Government supports the development of businesses of our country on the international market,” she said.

The provisions of the signed Memorandum will be implemented on the basis of individual contracts which will be concluded by the parties in future.