People ski at Wanda's world's largest indoor ski resort during the opening of the resort in Harbin, Heilongjiang province, north-eastern China.  Wu Hong : EPA
People ski at Wanda's world's largest indoor ski resort during the opening of the resort in Harbin, Heilongjiang province, north-eastern China. Wu Hong : EPA

China outlines winter sport ambitions with world's biggest indoor ski resort



The world's biggest indoor ski resort has arrived but, for once, it is not a claim to fame that Dubai can make.

The super-cool new facility is situated within a mega-development in the northern Chinese city of Harbin.

The huge resort that includes the ski slopes was the brainchild of China's richest man, Wang Jianlin, who surprised many by this week selling most of his mammoth leisure and amusement business for US$9.3 billion just 10 days after the Harbin development opened. While the deal involved 13 cultural tourism projects and 76 hotels within Mr Wang's Dalian Wanda Group's tourism portfolio, which have been bought by the Tianjin-based property developer Sunac, it is not yet clear if the property handover will include the Harbin ski resort.

The resort is part of China's ambitious plans to develop both top-notch skiing facilities and world-class skiers ahead of the 2022 Winter Olympic Games in Zhangjiakou, near Beijing. Several other ski resorts are being built all over China by a number of developers and the government is pushing for the creation of many more to meet its target of creating 240 dedicated ski slopes before the Winter Olympics.

Harbin, the provincial capital of Heileogong, which borders Russia, is renowned or the creation of building-sized ice sculptures that depict the world's landmarks and heritage sites, such as the Taj Mahal, during the International Ice and Snow Sculpture Festival every year.

“Harbin is known as the city of ice, which also happens to be the main theme of this resort, so we will together provide winter sports throughout the year,” Mr Wang said at the opening ceremony at the end of last month. Last year, he announced plans to build the world's highest ski resort in Lhasa, the capital of Tibet.

Mr Wang is trying to tap a booming theme park and sports market in China that, according to the industry consultancy Aecom, will overtake the United States in terms of market size by 2020. It estimated that 59 new theme parks will open in China by 2020, serving an estimated 220 million visitors. Globally, the major theme park operators continued their positive performance last year, with a 4.3 per cent increase in overall business volume growing from 420 million to 438 million annual attendees over the year, according to the latest annual report from the Themed Entertainment Association (TEA) and the Economics practice at Aecom.

Dalian Wanda Group has built five other theme parks to expand its leisure and entertainment business in the face of stiff competition from Disneyland and Universal Studios. In June last year, Disneyland opened in Shanghai – its second park in China after its first opened in Hong Kong.

The Harbin resort covers 80 hectares and is located within the $6bn Harbin Wanda City. Shaped like an enormous grand piano, the indoor ski stadium can accommodate up to 3,000 skiers and snowboarders.

The resort also includes an outdoor Wanda theme park, Wanda movie park, central grand theatre, high-end holiday hotels and commercial centres. A 15,000 square metre snow entertainment area is inside the ski resort and the main skiing area itself is 80,000 square metres with six different runs on three separate levels.

The resort's main run is 60 metres wide and 500 metres long, making it the fourth-longest indoor run in the world. It still pales alongside Dubai's main run, which is the world's longest at 1.2 kilometres. The Chinese facility also boasts two black runs for the most proficient skiers and snowboarders, a blue run, a snow play area. There are also two 40-metre beginner slopes.

The Harbin ski facility is expecting 400,000 visitors by the end of 2017 and the resort will hire up to 30,000 people when it is fully completed, Mr Wang says.

North-eastern China already has several open-air  ski resorts, which includes Yabuli, about 180km from Harbin, which had hosted the Winter Asian Games as early as 1996. Wanda group also operates a ski resort at Changbaishan in nearby Jilin province.

While Dalian Wanda tries to be different from Disneyland by including a wider range of resort facilities such as schools, for instance, it has not been able to match the US company in terms of investment. In a bid to counter the US firm's strength, Wanda Group recently hired Andrew Kam, a former executive at Hong Kong Disneyland, to be the vice president of Wanda Culture Industry Group.

"Harbin is a brand-new community that includes not only a theme park, but also a school, a hospital, housing and hotels," Mr Kam says. " There is nothing like this before."

It was China's drive to build skiing facilities and the country's growing interest in the sport that attracted the Warren Smith Ski Academy, which became the first British ski school to open shop in the country last winter, at the resort of Wanlong in Hebei province.

“It’s almost as if winning the 2022 Winter Olympics bid has put skiers in China into panic mode – they really want to get better at skiing, and fast,” says the ski school founder Warren Smith. "We want to grow our presence [in China] in the future."

Despite the sudden push for all things snowy, north-eastern already China has several traditional open-air ski resorts including Yabuli, about 180km away from Harbin, and Changbaishan, which is located in the nearby Jilin province. But Dalian Wanda decided to invest in an indoor facility, in part because that way premium snow conditions are guaranteed year-round.

Ticket pricing at Wanda's Harbin resort, which includes rides in the amusement part, are structured differently to Shanghai's Disneyland, which charges 370 yuan (Dh198) during low season and 499 yuan during peak season. Wanda's lowest price starts at 68 yuan for an adult for a two-hour tour of the snow castle for an adult and goes up to 488 yuan for unlimited use of the ski slope.

Wanda has also invested in similar multi-purpose resorts in Nanchang and Hefei, the capital of Hefei province. It recently announced plans to establish Wanda Cities in second-tier cities, including Chengdu, Wuxi, Guangzhou, Chongqing, Haikou, Urumqi and Xiamen. These are part of a larger plan to develop as many as 20 Wanda Cities nationwide by 2020. The idea is to make the most of the booming leisure and tourism market in China. The state-run China national tourism administration expects will grow to 10 trillion yuan by 2020.

Mr Kam points out that Wanda City resorts in Hefei and Nanchang each attracted about 1 million visitors during the national day holiday alone last October.

So with the vast potential of snow resorts in China allied to the state's determination to have Chinese skiers and snowboarders among the medals in five years, it seems the ski resort market there is only set to heat up.

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COMPANY%20PROFILE
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Boulder shooting victims

• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65

Result:

1. Cecilie Hatteland (NOR) atop Alex - 31.46 seconds

2. Anna Gorbacheva (RUS) atop Curt 13 - 31.82 seconds

3. Georgia Tame (GBR) atop Cash Up - 32.81 seconds

4. Sheikha Latifa bint Ahmed Al Maktoum (UAE) atop Peanuts de Beaufour - 35.85 seconds

5. Miriam Schneider (GER) atop Benur du Romet - 37.53 seconds

6. Annika Sande (NOR) atop For Cash 2 - 31.42 seconds (4 penalties)

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

WandaVision

Starring: Elizabeth Olsen, Paul Bettany

Directed by: Matt Shakman

Rating: Four stars

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47