Projekti sotsiaalmajandusliku tasuvuse ja teostatavuse analüüs
The current feasibility study has been conducted as part of the EU Interreg IIIA project ‘Narva River Water Routes’. The objective of the feasibility study was to develop river tourism routes between Narva and Narva-Jõesuu, to outline the river tourism product concept, analyze costs and benefits associated with developing a river tourism product and to evaluate whether the project is financially justified and sustainable. As a result of the study, the project has been evaluated as economically feasible, primarily due to associated socio-economic benefits for the City of Narva.
Passenger shipping tradition on downstream Narva River (ie, between Narva and Narva-Jõesuu) is long and dignified. It began in 1872, reached its heydays in the mid-1930s and with some pauses in between, continued until early 1990s. The current border situation enables development of passenger shipping on Narva river, assuming that the passenger ship does not cross the temprorary control line to Russian territory and that all boat trips are coordinated with the local unit of Estonia Border Control Department.
Market research conducted during the project, including focus groups with river tourism product target customers and stakeholders (Narva residents, leading local and national tourism enterprises) confirmed unmet need and demand for a water tourism product between Narva and Narva-Jõesuu and on Narva Bay, whereas greatest demand is for a vessel which is suitable for conducting entertainment events and group excursions, along with an on-board catering possibility.
Given that as of today there are no competitive river tourism products offered in Estonia, Narva is in a good position to create a competitive advantage from its river tourism product, not only in the local or county, but also national context. The overall dynamic growth of Narva’s tourism sector (whereas the number of foreign tourists visiting Estonia is declining, in Narva it is growing) further supports a successful launch of a river tourism product in Narva. The river tourism product in turn will help sustain and accelerate the sector’s growth.
The general objective of Narva’s river tourism product is to provide memorable experiences for Narva’s visitors and residents which would benefit both customers of the river tourism product as well as the city of Narva and a broader region. As a result of the general objective the following strategic objectives have been established:
Development of best-known and most-visited river tourism product in Estonia
Increasing the awareness and attractiveness of Narva as a tourism destination
Diversifying and lengthening average length of stay of visitors in Narva
Creating an attractive environment for Estonian enterprises and private individuals for conducting miscellaneous events on Narva river
The river tourism products has good prerequisites for developing into one of Narva’s symbols, embodying more general and longer-term values of the city. According to the brand strategy of the river tourism product it is recommended to use the name ‘Victoria’ in the product’s brand identity (e.g., M/S Victoria), by which the river tourism product’s brand would combine local history and character (reference to Narva’s Victoria Bastion) with a cosmopolitan attitude and humanistic values.
As part of the current project, 5 river tourism routes have been developed which differ in duration, target customers and overall purposes:
Route 1: Narva Silhouettes (Narva Harbor – Memorial ‘3 Bayonets’ – Narva Harbor): duration 1 h, target customers: individual and group tourists, appropriate for conducting group excursiong from the river
Route 2: Narva Riverdance (Narva Harbor – Northern War Memorial – Narva Harbor): duration 2-2,5 h, target customers: local residents and tourists, appropriate for public entertainment events (concerts, dance evenings, etc.) on the river
Route 3: Narva-Jõesuu Express (Narva Harbor – Narva-Jõesuu Yacht Harbor (with landing) – Narva Harbor): duration 2 h (1 + 1 h), target customers: local residents and tourists, appropriate for public transportation between Narva and Narva-Jõesuu
Route 4: Narva-Jõesuu Cruise (Narva Harbor – Narva-Jõesuu Yacht Harbor (without landing) – Narva Harbor): duration 2-2,5 h, target customers: corporate and private customers, appropriate for charter cruises
Route 5: Narva Bay Cruise (Narva Harbor – Narva-Jõesuu – Narva Bay – Narva Jõesuu – Narva Harbor): duration 3.4 h, target customer and positioning same as Route 4
A central component of the river tourism product is the vessel to be used for carrying passengers, as well as the supporting land infrastructure. As a result of demand, as well as navigation safety requirements the passenger ship must meet the following conditions
Minimum D-Class passenger ship (according to Estonian classification) which enables cruising on Narva river (between Narva and Narva-Jõesuu) as well as on Narva Bay within 3-6 miles from Narva-Jõesuu
Maximum length 30 m, breadth 6 m, depth 2,0 m
Ship’s inner deck must have capacity for at least 100 persons and sundeck for at least 100 persons, including must be suitable for conducting miscellaneous on-board events (incl private parties, corporate events, receptions, concerts, etc.) for at least 100 persons
The ship has on-board restaurant kitchen which enables quality catering for at least 50 persons
The planned home quay for the planned vessel is the area next to the current parking lot near Victoria Bastion which would provide the most convenient access to the ship, would enable selling of souvenirs in the quay’s pavillion, would not block the use of current passenger quay to visiting ships and would correspond to the current detail plan of Narva Harbor.
Assuming professional execution of the investment project, the following activity volumes can be forecast for the river tourism product:
Season 1 (2010): 252 trips / 12 744 passengers / operator turnover: 5,3 million crones
Season 2 (2011): 336 trips / 16 992 passengers / operator turnover: 7,2 million crones
Season 3 (2012): 420 trips / 21 249 passengers / operator turnover: 9,2 million crones
In order to ensure the implementation of the river tourism product concept and forecast activity volumes, further investments by the City of Narva are needed by which the infrastructure for offering the product could be improved and created. Based on the current analysis the highest-priority investments are the following:
Establishing navigation signage on the west bank of Narva River (11 million КРОН)
Constructing a new passenger quay (‘Victoria Quay’ with supporting infrastructure (incl expanded parking space, pavillion) for the planned passenger ship (21,5 million КРОН)
Procurement of a passenger ship which corresponds to the product concept and its adaptation to the brand strategy (incl interior design) (16 million КРОН)
Opening views from the river to selected tourism sites (German military cemetery, Tank T-34, Monument ‘3 Bayonets’)
The total amount of the recommended investment is 49,0 million КРОН, 95% of which would accrue in 2009. When evaluating the economic feasibility and expected returns from the investment, it was assumed that the City of Narva would offer the new quay and ship on long-term lease for an interested operator from private sector. With this model, direct revenues for the City of Narva would be rental income, also potentially revenues from selling souvenirs in the pavillion. These cash flows are clearly insufficient to justify the current investment (20-year cash flow discounted NPV –38,7 million КРОН).
The primary benefit from the investment is socio-economic and is reflected in the following benefits:
Direct expenditures of tourists (incl domestic, foreign tourists) on the river tourism product (boat tickets, catering, entertainment) which among else helps finance jobs created as a result of the investment (ship’s technical and service staff, management and marketing, etc.)
Additional expenditures of tourist (including domestic, foreign) customers the passenger ship on accommodation, catering, tourism attractions and entertainment in Narva
Improvement of Narva’s image as a tourism destination in Estonian and abroad due to an attractive and differentiated tourism product
Improvement in recreational environment quality for local and regional residents thanks to a new recreation opportunity
Safer navigation for all ships cruising on Narva river thanks to new and improved signage
Opportunity to use new ‘Victoria Quay’ bank fortifications as quays for additional passenger ships (incl visiting ships)
When forecasting direct cash flows from the investment, measurable socioeconomic benefits (no. 1 and 2 from above list) and using the NPV method (with a cost of capital of 7%) the expected investment payoff time was forecast as 20 years, with an NPV of 784 427 459 КРОН. If additional socioeconomic benefits (no. 3-6 from above list) were to be incorporated, the payoff time would be below 20 years. Given the typically even longer payoff times for harbor infrastructure, the current investment can be regarded as justified and sustainable.
In order to finance the current investment we suggest applying for a grant for Enterprise Estonia’s program 2.4.3, the objectives of which closely match those of the current investment project. With such arrangement, co-financing of the City of Narva would be 15% of the overall investment, ie 7,3 million КРОН.
For best results we suggest to integrate the current investment with other related investment projects, including small ships’ quay and Narva river promenade project. Being closely linked spatially and thematically, these proejcts can create an integrated recreation and tourism complex and significantly improve the attractiveness and quality of Narva’s public space and, consequently, quality of visitor and living environment.
Приложение 1: общий маршрут туристического продукта Нарвы и Нарва-Йыэсуу
Редставленный далее общий маршрут основывается на следующих пунктах:
Рекомендуемые туристические маршруты, приведенные в главе 5.
Требования, установленные Законом о государственной границе и Пограничным режимом
Требования, вытекающие из закона о морской безопасности и постановления о требованиях к судам, ходящим в местных береговых водах
Общий маршрут представлен на 9 картах, в связи с чем речной туристический путь между Нарвой и Нарва-Йыэсуу разделен на следующие 9 сегментов:
Сегмент 1: Нарвский порт – Вяйкесаар
Сегмент 2: Вяйкесаар - монумент Северной войны
Сегмент 3: Вепскюла – Суурсаар
Сегмент 4: «3 штыка»
Сегмент 5: Кудрукюла
Сегмент 6: Каннисаар
Сегмент 7: Каннисаар – Нарва-Йыэсуу
Сегмент 8: Нарва-Йыэсуу
Сегмент 9: Нарва-Йыэсуу – Нарвский залив
Сегмент 1: Нарвский порт – Вяйкесаар
Кладбище немецких войнов
Общий маршрут начинается от нового планируемого пассажирского причала Нарвского порта («причал Виктория»)
От причала судно берет направление на юг и совершает поворот у края бастиона Виктория, позволяя пассажирам насладиться панорамным видом на замок Германа и Ивангородскую крепость.
Далее маршрут протекает вдоль фарватора до 200-300 м перед кладбищем немецких войнов, затем возмодны два альтернативных маршрута:
«Туристическая версия»: дает лучший вид на кладбище (в таком случае маршрут отклоняется от фарватора к западному берегу реки)
«Стандартная версия»: маршрут протекает далее водль фарватора. Используется также в туристических маршрутах (например, Маршрут 1 на обратном пути в Нарвский порт)
Сегмент 2: Вяйкесаар – Монумент Северной войны