TUM-SAG KUMKUYU MARINA TOURISM CONSTRUCTION INDUSTRY

AND COMMERSE INC.

KUMKUYU MARINA PROJECT APPRAISAL REPORT

2013

‘’ MEDITERRANEAN CLIMATE, AIR, SEA WATER TEMPERATURE AND PRECIPITATION CHARACTERISTICS OF

WIND SPEED TOGETHER WITH LONG HOURS OF SUNSHINE HELP TO IMPROVE THE IMPORTANCE OF
KUMKUYU AND MARINA AREA IN REGARDS OF TOURISM A BIT MORE. ‘’
TÜM-SAĞ KUMKUYU YAT LİMANI MARİNA TURİZM İNŞAAT SANAYİ VE TİCARET
ANONİM ŞİKETİ
INVESTMENT PROJECT EVALUATION REPORT

29/05/2013

“CONFIDENTIAL AND PRIVATE”

 Table of Contents
1.1.1. 1

TUM-SAG KUMKUYU MARINA TOURISM CONSTRUCTION INDUSTRY AND

COMMERSE INC II

PROJECT INVESTMENT APPRAISAL REPORT II

1. İMPORTANT DECLARATION 4

2. MARINA AND TOURISM MANAGEMENT GLOBAL APPEARANCE 5

3. MARINA MANAGEMENT IN THE INTERNATIONAL MARKET 6

4. MARINA MANAGEMENT IN TURKEY 7

5. THE ADVANTAGES OF THE TURKISH MARINA MANAGEMENT 8

5.1. THE ADVANTAGES OF THE TURKISH MARINA MANAGEMENT IN INTERNATIONAL MARKETS 8

5.2. THE MARKETING STRATEGIES OF THE TURKISH MARINA MANAGEMENT IN THE MARKET 9.

5.6. PUBLICITY 10

6- TOGETHER WITH YACT AND YACHTERS THE ECONOMIK INCOME AND LEGAL
REGULATIONS THE MARINA TOURISM WILL BRING TO TURKEY 12

6.1.- PHYSICAL DATA 13

7- NUMERIC DATA
………………………………………………………………………………………..15

8 – PROJECT AND PLANS 16.

TUM-SAG KUMKUYU MARINA TOURISM CONSTRUCTION INDUSTRY AND

COMMERSE INC 21

THE PREPARATION AND EVALUATION OF THE KUMKUYU MARINA TOURISM INVESTMENT

PROJECTS (INTERNAL STABILITY AND THE EVALUATION OF TODAYS NET VALUE) 21

A-. THE PREPARATION STAGES OF INVESTMENT PROJECTS 24

1. THE SUNRISE OF THE PROJECT IDEA AND PRELIMINARY SURVEY 24

appendıx: 35
 2. IMPORTANT DECLARATION

Hereby this Evaluation Report (Document), is prepared by

…………………………………………………………….. finansal Danışmanlık Ve Eğitim Hizmetleri A.Ş.
based on verbal or written information provided from the financial statements and footnotes,
consolidated financial statements independently audited concerning the 2012 accounting
period of the Company and the footnotes and/or auxiliary resources provided by the
Company with respect to the (“TÜM-SAĞ KUMKUYU YAT LİMANI MARİNA TURİZM İNŞAAT
SANAYİ VE TİCARET ANONİM ŞİRKETİ ” or “Company”).

Although the accuracy of the information on documents are trusted; explicit statements were
given by the Vakıf Yatırım or its executives, employees, agencies, advisors or consultants
concerning the accuracy and completeness of the information and comments on the
Document or other written or verbal information provided to the related party or its advisors,
no implicit statement or guarantee were provided.

Explicit or implicit responsibility or acceptance of liability shall be on our part in the capacity
of draftsperson for the said information included or not included in the Document and the
mistakes, omissions or false statements, negligences or others.

Particularly and solely, without prejudicing to the general rule qualification of the
abovementioned, no implicit statement or guarantee were provided regarding the rationality
or success of the future projects, estimations, expectations or other verbal or written
information, whereas the whole were stated explicitly and clearly.

The Report is intended for the exclusive use of the Company, the Company may submit the
report to the statet institutions and organizations and the courts. Through the delivery of
the Report, the Company commits to the “COMPANY” the confidentiality of the information
included in the Report except being submitted to the state institutions and organizations and
the courts.
 3. YACH PORT AND MARINA TOURISM MANAGEMENT GLOBAL VIEW

The sea and marine that played a great role in the development of the international trade
worldwide is a popular hobby around America and Europe for a very long time. Sea and
marine rapidly develops as a hobby in Turkey recently. On this centerline, yachting as
a part of individual tourism and marina management as a natural extension of this gradually
becomes prominent. Thanks to her available geography and climate, Turkey has a high
competition potential in the Mediterranean catchment area in this developing tendency.

High quality service is another element that renders the Turkish marinas attractive. In
Turkey with her strategical geographical position in the Mediterranean basin and unique
natural beaty, development of marina management resulted in being spotlighted worldwide
with respect to the advantages and attractive features of the Turkish marinas and marketing
such features.

Being the leading factor to intermediate the beginning of trade and transport around the
world, sea is also located at the very heart of trade, transport and hobby activities in the
modern world of today. Playing a significant role in the world’s globalization, seas recently
became an essential factor particularly for the tourism industry and a point of attraction for
the world states. For her location, Turkey is among the main points of attraction in
marine around the world.

Similar to several financial areas, our development in utilizing sea in tourism, enforces the
significance and attraction opf Turkey within the international markets. Thnaks to the nature,
climate and geaographical features, Turkey exhibits a rapid development in yacht tourism
and marina management; takes her place as a shining star appearing on the international
markets.

The very first sailingboat was used for excursions by the Pharoahs on Nile in 4000 BC.
Vikings used their private boats for the same purpose. According to the historical records, in
the 14th Century, Flemish people used their small but speedy boats in catching the pirates
and the smugglers and called them “Jaght” which means “Hunter”. Later on, rich people in
Amsterdam called these boats that they sent to meet the big merchant ships as
“Jaghtschippen”, “Hunter boat”. When the hunters sail back to the port they compete each
other to be the first to reach the port and in time the joy of competing turned yacting into a
sports branch (Durukan, 2004;1).

In 1660, people of Holland presented a yacht to the King of Britain and after this boat
named Marry arriving in England, the Flemmish articulation “jaght” was turned into “yacht”
(Özer, 1990; 20). The nations revealed various developments in yacht building and marine
according totheir existing conditions. Based on this developments, balance, safety and speed
39 factors played role. In early 1900s, the first prototypes of the modern yachts of today
were built (Herreshoff,1963;17-41). In consequence of this developments in yacht building
and using, transoecanic islands pulled the attraction of Europeans and Americans.

In 1930s, yachting appeared in America in modern sense and developed in Europe in 1950s.
This period is named as the initial generation in marina management. In 1970s, with the
increasing popularity of living on the shores, second generation in marina management
appeared. The customer expectations which change in time and increase quickly, resulted in
the third generation in marina management in 1990s (Bourne, X; 1). In World literatüre,
marinas are classified in various aspects. Apart from the classification expressed in the yact
tourism regulations in Turkey, classification is made through their certificates, capacities and
other various criteria.

In our country, through the Regulations on Yacht Tourism made by the Decree of the
Council of Ministers dated 08.06.1983 and No. 83/6708, the term yacht port (marina)
became clear. Accordingly, marinas refer to the main yach ports, secondary yacht ports,
yacht berths and boat yards.

3. MARINA MANAGEMENT IN INTERNATIONAL MARKETS

The man acting global by nature, exhibits a behavior tending to create opportunities in
various market around the globe and to benefit from such opportunities, presents a nature
open for creating opportunities in global markets and taking the advantage of created
markets (Keegan, Gren, 2003; 21). In consequence of the globalization which refers to the
direction of things in different qualifications towards individuals with differenet natures
(Bradley, 2002; 6), globalizing pleasures and hobbies around the worls reveal an increasing
acceleration. The increase in the level of income and transportation facilities, augments the
desire of man for travelling.

In this sense, the increasing interest against marine and the maritime which became a new
market in the modern world is studies as an international market. Cultural universality is
expressed as a point of act that exists in all cultures. Maritime also refers to culture with a
common life, common sense and a common jargon all around the world. Maritime which has
common standards in terms of marketing, is popularized in the international markets by
being reduced to individual dimensions especially by yachting.

Defined as a recreational industry directed at the sea, yachting maintains its international
development in Caribbeans and the Mediterranean Sea. 40 The Mediterranean shores
became popular in the international markets as of early 20 th Century through its
both nature and climate.
France, Italy and Spain are the countries that maintained their popularity until today in yacht
tourism through their rationalist investments, timely policies. As the interest against
yachting increase in time, the yachters sought unoccupied and cheaper coasts in
Europe and the Mediterranean Sea. Another reason that rendered the Eastern
Mediterranean attractive in terms of marina services is the pollution and price increase in
Western Mediterranean.

4. MARINA MANAGEMENT IN TURKEY

The tourism movement that began initially in 1960s in Kuşadası, gained various dimensions
in time and separated into several sub-branches. Within this separation, the recent interest
especially from the foreigners, resulted in yach tourism to gain importance in Turkey. Apart
from the group movements in yacht tourism, individual yachters expressed as the “marina
customers” within the market, presented an increasing demand.

Within the Mediterranean basin which also covers Turkey, there are 715 marinas in total with
approximately 315.000 boats capacity. According to the various resources, more than
600.000 yachts sail on the Mediterranean basin. This reveals that the demand within the
marina market is greater than the supply. However, no certain data is available regarding
where and how exactly this excess demand is satisfied. Within an international market
structure with such an excess demand, Turkey is among the potent countries which could
get a share from the market through her advangates and development potential.

Marina management in Turkey began in 1970. The first marinas were in Kuşadası, Bodrum
and Kemer and in 1974,Çeşme Altınyunus Marina was opened as the very first private sector
marina. Examining the market structure of the marina management industry in Turkey; it’s
seen that the capacity is 13,207 boats (land+sea) and the overall occupancy rate is around
80-90%. The size of the market is 150 million US Dollars, and it’s known that 65-75% of
these boats constituting this market are domestic and 35-25% are international (American,
British and German flagged boats have the majority). The growth rate of the market exhibits
2-5% change both for domestic and international yachts.

As the importance of yachting, yachts and marina management increase recently in Turkey,
the strengths of the industry include; high income, cash payment in yacht managers and
marinas, low prices within the industry, high demand for gulets, active participation in
international exhibitions, intense interest by the government over the industry and the
modern infrastructure of marinas.

5-Advantages of Turkish Marinas

Advantages and Disadvantages:

- Natural location of marinas
- Ease of formalities in entering and leaving the country by boat,
- Marina ecology
- Customs exemption applied for the boat materials,
- Nes infrastructure
- Planned structuring around marinas
- Affordable technical assistance
- Addressing upper income group in the international market,
- Ease of entry-exit within the marinas
- Full docking service
- Complimentarys ervices
- Social activities for the guests
- Management applications
- Qualified staff
- Constant and quality service manner

5.1. Attraction Points of Turkish Marinas in International Markets

High prices in Western Mediterranean, increase towards demand in supply-demand

equilibrium and seeking new natural beauties make Eastern Mediterranean a point of
attraction. Within the Eastern Mediterranean, Turkey is more advantageous when
compared to the other eastern Mediterranean countries thanks to the geography, climate
and ecology.

• Since many marinas in Turkey are natural ports marine security and marine safety are at
the highest level.
• Rich geographical structuring accompanies several natural beauties.
• Service-intended perspective of the administration rather than profit-intended increases the
customer satisfaction.
• The customs zone specially located within the marina facilitate the entry to-exit from the
marine.
• In marinas yachters are treated as guests rather than customers and human values have
the prominence.
• Good-humored and friendly manner prevails.
• Development of new architecture and service concepts in marina management.
• Offering all types of communication infrastructure and facilities to the marina visitors.
• Through the art galleries located inside the marinas and art performances held in the
marinas, the marine fans are also offered arts.
• A vacation atmosphere both at the heart of the city, inside the action and away from noise.
• Clean sea and thus opportunity to swim within the marina borders.
• Multiple maintenance-repair companies rendering service at the boat yards. This creates
service alternatives for the marina customers.
• Library services.
• Offering the opportunity to satisfy the needs not related with marine through the social
and sports facilities inside the marina.
• Through a boutique service manner, tailor-made berths and VIP facilities.
• Construction of marina premises and equipment in harmony with the nature. Even the
existence of marina facilities constructed with natural materials.
• Breakfast offering and other service on boats,
• Laundry and ironing services.
• Sea rescue teams comprising of volunteers.
• Mobile hair-dressing service.
• Transport services inside and around the marinas.
• Through the card system used in toilets and showers, clean and diligent service for the
yachters.
• Through the largest lift within the Mediterranean basin with 330 tons capacity,
maintenance-repair service offered for the mega yachts.
• Special service for the marina customers through the marina radio on-the-air for 24 hours.

Keeping the marketing practices oriented at such elements of attraction at the highest level,
applying the right strategies took Turkey in a position to utilize the international marina
potential in the best way.

5.2. Marketing Strategies for the Turkish Marinas in International Markets

Looking at the efforts on marketing applied by our marinas and supported by the
government from the market and marketing combination perspective, it is observed that the
existing facilities are introduced and sold efficiently; and on the other hand that the efforts
on marketing constantly increased.

5.3. Target Market

Turkey currently offers service in marina management in the international market to the
individuals with average 2,000 euros income per annum (foreign nationals). The quality of
the marina service being provided is increasing and attraction is being created for the foreign
customers in upper income group. Local customers represent the upper section within the
demography of Turkey and the foreign yachters visiting Turkey are within the middle and
tops ection of their own nations. The largest potential target determined within the said
income groups are completely the foreign nationals with over 5.000 euros monthly income
and local groups with over 10.000.-TL monthly income.

5.4. Servcie Quality

Marina management achieved the international standards. Rather than the standards, the
values presented by the yachters, marina managers, yacht builders and relevant
organizations gain importance. In the formation of international values in this sense, the
Permanent International Associaiton of Navigation Congress (PIANC) held annually has a
great role. The opinions asserted and discusses within the said congress and various marina
management criterion are being adopted and implemented as international standards.

There are no clear standards for the execution of the activities in the marina management
industry around the world and also significant strategies have not been developed in terms
of marketing. Similarly in Turkey, in the navigation area, particularly within the marina
management context, marketing approach in modern sense recently established.

5.5. Pricing

Being a part of the service industry, marina management is perceived as a special, privileged
and luxury service in our country and such perception features the pricing as a significant
parameter with respect to the marketing. On one hand, the strategy of offering VIP service
to the customers through a prestigious pricing exists and on the other hand, low prices in
auxiliary services such as maintenance-repair forms a point of attraction for the customers.
Since docking their boats in prestigious marinas would establish a social status for the yacht
owners, high price policy is being accepted and on the other hand, affordable price policies
being applied for the services such as overwintering and maintenance-repair constitutes a
concealed attraction/discount element.

5.6. Promotion

5.6.1.Advertisement

In yachting which is a personel hobby, individual advertising and referencing by word of

mouth have the most influent role. The feedback of a yachter about the country and marina
he/she visited in the yacht club that he/she is affiliated to is a very important advertising
activity.

Sponsorship and participation by the marina operators in the conferences with navigation
industry theme, making publicities in and giving advertisements to the industrial publications
is the most frequent method used for direct access to the target market.

5.6.2. Promotion and Public Relations

Turkey partakes in the international yachting exhibition every year. Thus the efficiency of
corporate promotion is enhances and through the introductions in yacht exhibitions held in
Dusseldorf, Genova and Paris, 30-40% discounts are offered to the yacht owners in marina
services.
On the other hand, through the support by the government, introduction of Turkish coasts
within the course of a joint venture increases both the yacht traffic in Turkey and the
business volume and occupancy ratio of the marinas. International races held in Turkey
recently, both introduces the organizer marina to the world and introduces Turkey, its coasts
and other marinas to the foreign yachters. Thanks to these races, the positive competition
established by the horizontal integration between the marinas and miscellaneous cooperation
results in the acceleration in Turkish Marina Management industry.

Inviting the press to the marinas for various reasons, making promotions for the sea-
navigation-marinas and thus raising public awareness are also being used as a key
marketing method for ingratiating the sea concept all around the nation. Furthermore, press
introductions organized by the marina managers for the promotion of marina management
increases the awareness ofboth public and yachters. Within this context, a joint marketing
attempt was launched in Turkey through the publishing of “Turkish Marinas 2004” catalogue
printed in three languages in year 2004 (English, German, French) and in 2011- 2012 such
promotions oriented at the whole world by multiple language selections.

5.6.3. Customer Satisfaction

In our country marina management is a service business and as is the case in all service
business customer satisfaction is very important. In marinas,through the customer
satisfaction surveys, the expectations and needs of the customers are being determined to
keep the provided service up-to-date, to develop and to diversify.

5.6.4. Tourism Policy

In world mass tourism, holiday travels with last minute decisions or instant planning are very
common.

Yacht tourism differs in this sense, the yacht owners should make their plans and
decide for holiday one year before the travel. Within this scope, marina reservations are
being made long ago and the route to be followed is specified beforehand. The matter here
is that the yachters do not travel to a region only with the marina preference. Natural
beauties, availability for yacht tourism and existence of touristic elements attract
the yachters. For this, the country factor namely the tourism and yacht potential of that
country is the priority factor for the yachters in choosing the destination.

Turkey, with her geography, ecology, physical structures, service manner,

embodies the attraction criteria that are important for tourism.

Today the occupancy, pollution, high prices in Western Mediterranean marinas,

lead the foreign yachters to Southern Mediterranean as an alternate destination.
In Mediterranean basin, particularly due to the geographical features, Mersin
basin seems to be the final point available for yachting.

Through the 8,333 km coastline, Turkish people are accustomed with the marine culture and
their interest against sea increase gradually. The marine activities both professional and
amateur, are being supported continuously by the state and the number of national yachters
increase by 20% every year.

Turkish yachters sail towards the international sea and introduce Turkey to the foreign
yachters through the friendships they established there. Thus, Turkey’s name ranked the
desired position in marina tourism and yachting within the internationalmarkets.

Accordingly, the increase in the number of tourist in the last decade is observed as 84%.
According to the World Tourism Organization’s future projections, the international tourist
flow would be directed towards the less-industrialized countries with high touristic supply,
that can create demand and the number of tourist around the world will increase by 6,5% in
average per year from today towards 2015s and will increase up to 1,5 billion people by year
2012, and provided that Turkey preserve the current tourist demand share, in 2012-2013
the number of tourist would be 25 million and in marina tourism an increase by
approximately 25% is estimated.

6- FINANCIAL CONTRIBUTION OF MARINA TOURISM WITH YACHTS AND

YACHTERS FOR TURKISH ECONOMY AND LEGAL REGULATIONS

In this part; the surplus values analysis contributed by any type of national or foreign
flagged Yachts and Yachters that will visit Turkish maritime territory for excursion,
amusement or sports purposes to the Turkish Economy in total is provided below. Inter alia,
it’s a known fact that the Yachts offered to market without crew are mostly selected by
Europe origin tourists with the average family/person or group/person number no more than
6. Meanwhile, the issue which country holds the flag or possession of the boat or whether a
boat owned by the country is preferred by the citizens of that country do not create a
significant difference in observed customer profile. For example, the customer profiles of
Turkish operators marketing such boats do not reveal a national preference differing from
those of other foreign Yachting Businesses.

In our Country, currently approximately total 1,349 Commercial Yachts certified by the
T.R. Ministry of Tourism 600 of which are foreign flagged and 749 Turkish
flagged; approximately 2,000 Turkish flagged Uncertified Commercial Yachts, 4,000 foreign
flagged Private and Commercial Yachts docked in our ports. Apart from these, the number of
foreign flagged Private and Commercial Yachts that pass by our ports temporarily and that
make excursion visits for only 4 and 6 weeks is estimated to be 6,000. Turkish flagged
Commercial Yachts sail with 8 persons in average whereas this number is 6 persons for
foreign flagged Commercial Yachts. In the light of these information, considering that for a
period of time of 7 months once in every two weeks 72,000 people sail on our narional
maritime territory, the potential appears as approximately 1,000,000 persons.
6.1.- PHYSICAL DATA

Taking into consideration the yacht and yachter tems in their legal contex or in practice,
within the international relations for which a political determination has been revealed for
being a part of, particularly the rules prevail in Mediterranean basin are accepted as
data with reference to the maritime tourism. In this sense, Law of Harmonization Code
of the European Union, European Council Directives, Maritime Trade Act between Turkey and
Greece and Mediterranean Yachting Convention can be listed.

a – Yacht Term
Evaluated as a means of sports in international practice within the scope of the boats; as
specified in the The Law for the Encouragement of Tourism No. 2634, used nonscheduled
only for excursion and relxation purposes and thus not violating the National Cabotage
rights. The average purchase price of such boats that are being commercially rented vary
between 100,000.-$ and 250,000.-$.

b – Yachters’ Profile
Similar to the other industries, the customer profile should be well-recognized. Since the
used equipment are expensive; it is apparent that the target section has high purchasing
power and that the customers demand would be quite higher. According to the researches
on yachters, for the persons ranked at the bottom of the list and who uses rented boats, the
average annual income per family is between 35,000.-$ and 55,000.-$ whereas for the boat
owners the annual income is over 50,000.-$.

2 – NUMERIC DATA
Maritime tourism revenues which we believe to cover a significant part of the tourism
revenues; shall be addressed as the revenues generated by the Yachts by paying marinas
and boat yards on one hand and oın the other hand as the revenue generated indirectly for
the National Economy by those using those boats.

a – Gainings Per Yacht

Considering the moorage and maintenance fees paid by the Yachts visiting our country
through average lengths (12.00m), shall be accepted as 2,750.-$ per yacht. Thus, within the
total moorage capacity estimated as 7,000 comprising of 5,000 Certified Marina, 2,000
Uncertified Docks and Municipal Berths, total moorage is approximately 16,500,000.-$ and
boat yard fees approximately 20,000,000.-$.
On the other hand, the sub-industry revenues such as maintenance, repair, laborship that
each Yacht has to go through once every three years, and also painting and replacement
parts is 12,000.-$ in average per yacht thus the revenue generated for the National Economy
is approixamtely 25,000,000.-$ per year. Commercial Yachts certified bythe Ministry of
Tourism pay 350.-$ license fee per bed the total capacity of which around 4,000. Transit log
sales which are around 15,000 annually generate approximately 2,000,000.-$ revenue for
the State. Accordingly yachting industry generates approximately 45,000,000.-$ per year.

b- Revenues per Capita

As mentioned above, evaluating the total number of yachter tourists comprising of; 500
foreign flagged commercial yachts that operate for 24 weeks with 6 persons in average, 100
foreign flagged commercial yachts with crew operating 20 weeks with 4 persons in average,
800 Turkish flagged commercial yachts operating 18 weeks with 8 persons in average, 2,000
Turkish flagged uncertified commercial yachts operating 10 weeks with 4 persons in average,
4,000 foreign flagged private yachts sailing on our maritime territory for 14 weeks with 5
persons in average and 6,000 private and commercial yachts temporarily docks for 6 weeks
with 4 persons in average, the total figure is;
500 x 6 x 24 x 7 = 504,000
100 x 4 x 20 x 7 = 56,000
800 x 8 x 18 x 7 = 806,400
2000 x 4 x 10 x 7 = 560,000
4000 x 5 x 14 x 7 = 1,960,000
6000 x 4 x 6 x 7 = 1,008,000
4,894,400 person /day

Said persons who have high expenditures are known to spend the following per
person per day;
provisions 45.-$;
souvenirs 80.-$;
amusement/food 70.-$;
miscellaneous 30.-$;
fuel-oil 10.-$;
transportation 5.-$;
total 230.-$ . Accordingly the total revenue for the Country is
4,894,400 x 230 = approximately 1,125,000,000.-$.

c – Other Revenues
Apart from the revenues generated by yachts and yachting listed above; although not
exactly known, the total revenue generated from the cruisers, daily excursions, surface
water and underwater sports, entrance fees for the ruins, lighthouse, piloting and coastal
sanitary collected by the agencies and port authorities is estimated to be around
500,000,000.-$
In this case, the total revenue of the Maritime Tourism should be accepted as approximately
1,700,000,000.-$. This figure corresponds to the 20% of the National tourism revenues
except the added value.

B – MARINAS AND BOAT YARDS

The current situation of the Marinas and Boat Yards certified by the Ministry of Tourism is far
from satisfying the demand. Therefore new investments are very important.

1 – PHYSICAL DATA
The construction and promotion of the Marinas that should be considered as an
infrastructure element of the Yachts and Yacht Businesses which are an integral part of the
maritime tourism sub industry by the State were ceased as of 1989 and all of such works
have been transferred to the private industry by featuring the build-operate-transfer
model.Ministry of Transport (DLHI General Directorate) which is the single authority to bring
in such heavy-cost investment to the National Economy, has recently concluded contracts
with the private industry for the construction of Marinas inKaş-Bucak Sea and Mersin basin
aiming to contribute to the national tourism. The best example is the Mersin Kumkuyu
marina business investment that is still being constructed.

7 – NUMERIC DATA
For the purpose of establishing economic rantability, the infrastructure investments; through
the facilities of and support by the State; within the course of a pre-determined plan; by
ensuring the encouragement of the Private Industry; in required areas and locations; the
minimum requirements such as Motorways, Airports, Electrocommunication, Water and
Sewerage Systems were launched very long before the investment projects.

a – Investment/Revenue Equilibrium of Marinas

Constructed either by the public or the private industry; considering that a berth point in
marinas costs approximately 17,500.-$ including the auxiliary service units; the investment
costs of the Marinas with 6,000 berths are around 100,000,000.-$. Through a finance cost at
the rate of %7 per annum, the amortization of such figure can be completed in 7.5 years by
collecting 2,750.-$ in average from the Yachts taking into account the current occupancy
rate.

(100,000,000.- : 7.5 = 13,300,000.-)

(13,300,000.- x 1.07 = 14,300,000.-)
(14,300,000.- : 2,750 = 5,200 yat/sene)

b – Financial Impact of the Marinas

Our national Marinas which we should accept as infrastructure facilities, generate 13,000.-$
revenue in average per capacity/unit including the side income. By the contributed value to
the National Balance of Payments through the tax and employment opportunity created
apart from the total direct and indirect revenues mentioned above at the level of
1,700,000,000.-$ , the great contribution of this industry for the National Economy at macro
level is apparent.

In the light of the Marinas Physical Planning data being prepared by the Ministyry of Tourism
at macro level; it is necessary to submit an investment planning to the decision maker in
which the borders between the required investments and potential investment is well-
distinguished. Such study wil also require the exact determination of the feasibility and
finance organization and selecting proper targets accordingly.

8 – PROJECT AND PLANNING

It is necessary to address the investments and business model projections within the
definitions mentioned above as a whole and to address and to approach the legal regulations
required in administrative and economic areas. During the project and planning stage; it is
necessary to ensure the application of short-term, mid-term and long-term projections to the
whole industry in accordance with the Physical Plan data that is being prepared at the macro
level and it is necessary to make certain and accurate cost calculations for the targets to be
selected.

For example, the rantability of an Airport projected to be constructed in the Mersin vicinity
would result in a positive acceleration for the region. It will highly optimize the high income
rate of a very important region representing 18% within the tourism revenues in Turkey.

1 – LEGAL REGULATIONS
There are only two acts promoting and governing the tourism activities in Turkey. These are
Law for the Encouragement of Tourism No. 2634 and the Law Concerning Travel Agencies
and Association of Travel Agencies No. 1618. Apart from these, continuous assistance
projects supporting the private industry are being implemented.
 MARINAS IN TURKEY
MARINAS IN OPERATION
İSTANBUL / MARMARİS
Item TOURISM TOTAL
No: MARINA CERTIFICATE SEA LAND CAPACITY
1 Ataköy Marina AVAILABLE 700 100 800
2 Setur Kalamış Marina AVAILABLE 1.145 200 1.345
3 Atabay Yach Boat Yard AVAILABLE 60 60
4 Çanakkale Marina 60 60
5 Setur Ayvalık Marina AVAILABLE 120 150 270
6 Ayvalık Yacht Boat Yard AVAILABLE 140 140
7 Setur Çeşme Marina AVAILABLE 180 90 270
8 Yeni Çeşme Marina 350 350
9 Sığacık Municipality Marina 400 400
10 Setur Kuşadası Marina AVAILABLE 360 175 535
11 Karada Marina Bodrum AVAILABLE 375 40 415
12 Yacht Lift 100 100
13 Day Boat Yard 85 85
14 Datça Municipality Marina 50 50
15 Martı Marina AVAILABLE 260 40 300
16 Marmaris Netsel Marina AVAILABLE 720 200 920
17 Albatros Marina - Marmaris AVAILABLE 40 280 320
18 Sun Marina Yacht Boat Yard - Marmaris AVAILABLE 100 100
19 Marmarin Yacht Boat Yard - Marmaris AVAILABLE 100 200 300
20 Yat Marin Marina AVAILABLE 700 100 800
21 Kumlubük Yacht Club - Marmaris AVAILABLE 10 10
TOTAL CAPACITY 5.570 2.060 7.630

MARINAS IN TURKEY
MARINAS IN OPERATION
MARMARİS / ANTALYA / MERSİN REGION
Item TOURISM TOTAL
No: MARINA CERTIFICATE SEA LAND CAPACITY
1 İltur Göcek Marina AVAILABLE 160 160
2 Scopea Marina AVAILABLE 85 85
3 Port Göcek Boat Yard 156 156
4 Göcek Municipality Marina 170 170
5 Port Göcek AVAILABLE 400 400
6 Fethiye Municipality Marina 120 120
7 Kalkan Municipality Marina 40 40
8 Kaş Municipality Marina 80 80
9 Setur Finike Marina 350 150 500
10 Park Kemer Marina AVAILABLE 220 100 320
11 Setur Antalya Marina AVAILABLE 250 350 600
12 Turban Kaleiçi Marina AVAILABLE 65 65
13 Bozyazı Municipality Marina 300 150 450
14 Mersin Municipality Marina 120 120
TOTAL CAPACITY 2.360 906 3.266

MARINAS IN TURKEY
MARINAS IN OPERATION
GRAND TOTAL
NUMBER OF
REGION MARINAS CAPACITY
İSTANBUL / MARMARİS 21 6.955
MARMARİS / ANTALYA / MERSİN 14 3.226
GRAND TOTAL 35 10.181

MARINAS IN TURKEY
MARINAS ON INVESTMENT STAGE
Item TOTAL
No: MARINA SEA LAND CAPACITY
1 İstanbul Ataköy 500 500
2 Çeşme Marina 200 200
3 Didim Marina 400 200 600
4 Kıyıkışlacık Marina 150 50 200
5 Güllük Yacht Berth 100 100
Bodrum Alacatur Marina 40 12 52
6 Bodrum Turgut Reis Marina 500 200 700
7 Kalkedon Bodrum Yalıkavak Marina 350 350
8 Bodrum Yalıkavak Marina 500 500
9 Bodrum Marina 400 150 550
10 Bodrum Halikarnas Marina 250 250
11 Datça Meersea Marina 246 56 302
12 Datça Marina 400 100 500
13 Bozburun Marina 150
14 Doğuş - Dalaman - investment 600 150 750
15 Fethiye (Çavuşlu) Marina - Vinsan 1000 200 1200
16 Kaş Marina - Bucak Sea 400 150 550
17 Kemer Expansion Project 350 150 500
18 Kemer Alacasu - Çamyuva Marina 300 300
19 Doğuş – Grand Antalya – investment 650 150 800
20 Manavgat Marina city 350 150 500
21 Manavgat Boat Yard 400 400
22 Alanya Marina 256 256
23 Gazipaşa Marina 250 200 450
24 Erdemli - Kumkuyu 200 200 400
25 Mersin Marina - Investment 500 150 650
TOTAL INVESTMENT CAPACITY 2.506 1.250 3.756
 TÜM-SAĞ KUMKUYU YAT LİMANI MARİNA TURİZM İNŞAAT SANAYİ VE TİCARET
ANONİM ŞİKETİ

DRAFTING AND EVALUATION OF KUMKUYU YACHT PORT AND MARINA TOURISM

INVESTMENT PROJECTS (Examining the Internal Rate of Return and Net Present
Value Methods)

Abstract: Taking into account the abovementioned information, “Kumkuyu Yacht Port and Marina Tourism
Management” which is an investment of our company located at Kumkuyu Town subordinated to Erdemli
District in Mersin Province, is a high-revenue investment due to its natural beauties and strategic importance
within the national and international arena.

Therefore; in this literature study, preparation and evaluation methods for the investment projects are
addressed.Among the assessment methods, internal rate of return and net present value methods are examined
through examples. The investment project has been well-examined before realization.In consequence of the
assessment the idea of investment is examined in detail depending on the benefits of the company and the
country.

Increasing competition as a result of globalization made it necessary for the corporations to establish such
businesses for rendering service not only in the domestic market but also in the international markets.

Together with the removal of borders in economic sense, ensuring the national development can be achieved by
carrying out strategic investments and well-studies projects.

On the other hand, considering the expenditurews made for the incompleted projects or the projects that are
completed but did not produce the expected outcomes, the preparation process and significance of this process
becomes more apparent.

The greatest factor giving importance to this investment is being located in a nice coast town in Erdemli District
of Mersin with the blue sea and peaceful environment. Located on Mersin-Antalya motorway, Kumkuyu is
southwest of Erdemli having a coast on the Mediterranean Sea.

In the town with the typical Mediterranean climate, summer season are quite lively. The
population of Kumkuyu which has 3.000 residents normally, increases up to 20.000-25.000
dwellers during summer.

Due to its untouched nature, Kumkuyu is available for tourism development. Recently
significant developments took place in this sense. In the town, hotel management, bed-and-
breakfast management develop every other day, facilities are being built for
accommodating local and foreign tourists particularly during summer. Kumkuyu is
very ideal for maritime tourism. The town has two beaches. Also a yact port and fishing
port are available.
Kumkuyu harbors significant worthseeing historical artifacts. Cisterns, wells and aqueducts in
Akkale and the vicinity are among those structures.

With its blue sea, friendly residents and natural beauties, Kumkuyu took its place in the world
tourism as a must-see in the Mediterranean Sea.

1-Kumkuyu new yacht route;

Through the opening of the Mersin Erdemli Kumkuyu Yacht Port, a new cruise route for
yachts would be formed in East Mediterranean Sea. Started to be constructed in year 2004
and following a long procedure transferred to the awarded company, Kumkuyu Yacht Port
now welcomes the infrastructure works.
The port, the transfer of operational rights of which was assigned through Built-Operate-
Transfer (BOT), is projected to be commissioned in 2013.
When Mersin and Kumkuyu yacht ports are opened, in addition to the existing main yacht
routes on the Aegean and West Mediterranean coasts of Turkey, a new route will be created
in East Mediterranean. "This route will cover Turkey, the cradle of old civilizations and
cultures (Mersin, Kumkuyu), NCTR (Kyrenia, Framagusta), Southern Cyprus (Limasol) Syria,
Lebanon, Israel and Egypt. The yachters, following the Gazipaşa Yacht Port will stop over
Bozyazı and Anamur and will have the opportunity to travel the caostline of Turkey through
Kumkuyu and Mersin. Following the coastline, through Mersin, they will be able to travel
within the Mediterranean basin by sailing towards NCTR, Latakia, Beiruth or Alexandria.
Taking into consideration that approximately 800-1000 yacht sail within the Mediterranean
basin, an important financial buoyancy will begin in the city by the accommodation,
maintenance and repair, replacement parts and supply services.
Kumkuyu investment which also contributes to the promotion of historical and touristic
places in the city, will have an intermediate point for travelling to Central Anatolia in long
stays. The yachters will be offered a peacefull holiday thanks to the ideal weather and sea
conditions for 12 months.

Indicating that the marinas in the Aegean and West Mediterranean coasts maintain their
businesses through approximately 100% occupancy rate, Yavuz said, “Mersin and Kumkuyu
marinas will be among the important marinas selected for mooring, maintenance and repair
and overwintering for the yachts in the Mediterranean basin, the number of which is
currently around 700-800 thousand and estimated to be one million by 2015.”
KUMKUYU PROJECT
REPORT SECTION
A-. STAGES OF PREPARATION OF INVESTMENT PROJECTS;

1. The Emergence of the Project Idea and Preliminary Research;

The factors that determine the types and characteristics of tourism in a region is determined
bye the geographic factors in that region. The issues that make up the geographical factors
are the most important factors such as climate, geomorphological structure, cultural and
natural values that shaping the tourism. Turkey, where located in a point that Asia, Europe
and Africa continents are extremely close to each other and a midrail country allows most
type of tourism with both his mathematical location and specific location. In this section of
the project, Turkey’s geographical location, coastal climate and geomorphology and coast
and cultural and natural values around the coast will be discussed. The effect of these
factors on yacht tourism of Turkey are the most important factors in the emergence of the
idea of the Project.

Turkey is a Midrail Country located between 26º - 45º East Longitude and 36º - 42º North
Latitude as a mathematical location. The westernmost end point of the Turkey’s land (25º
40') is Inceburun in Gokceada (formerly Avlaka nose), the most eastern end (44 º 48') is Dil
region, the Southern end point (35º 51') Topraktutan Village within Hatay province borders
(formerly Beysun Village) and the most northerly end point (42º 06’) is Inceburun in Sinop.
When 40 º North parallel crossing through Turkey is taken as base, Turkey is located 1436
km North from Equator and 5545 km South according to the Arctic Point. At is the evident
that, the country is closer to Equator than Arctic point as a mathematical location.

When we look at the special position of Turkey; it is seen that Turkey is located on a
special that is a privileged location that Asia (about 42 million km²), Europe (10.5
million km ) and Africa (30 million km²) main lands, called as Old World group of lands are
closest to each other. It is considered that about 97% of the Turkey’s land (814,578 km²) is
in Asian and 3% of the land is in European mainland. This means that Turkey is both an
European and Asian country. But, Turkey is an European country with his Republican Era of
contemporary institutions; on the other hand, in terms of civilization Turkey has created an
original Anatolian Civilization effected by both ancient Anatolian civilizations and the
civilizations carried out by his community.

The importance of Turkey, playing the role of a gigantic natural bridge, has also shown itself
in history. One of the primary factor in preparing this is Anatolian Mountains Systems. The
presence of high mountain chains in the East-West directions with deep depression zones
located between them made transitions difficult for North-South, but greatly facilitated the
transitions in East-West directions throughout history. The Asian Silk Road, offered service
between Asia and Europe starting from ancient times throughout Medieval and New Age has
gained importance mostly because of this natural convenience.

Turkey, due to its special privileged position, has allowed railway and land route
transportation network between the countries located above mentioned main lands passed
throughout Turkey. Currently just Middle East and West and Central European countries are
getting advantages of this transportation. But in the coming years, with increase in
population, their trade relations will develop more and the importance of Turkey will
further increase. Turkey also managed to establish economic, social and political relations
with outside world. Turkey is almost the geometric center of Old World main lands.
But, Black Sea is located on the North, Aegean Sea is located on West and
Mediterranean on South of the of the country; by taking advantage of the right to
the territorial waters of these seas, Turkey can a connection to transoceanic ports
through the Bosporus and Dardanelles Straits. Turkey keeps the coastal ports of Black
Sea, Azov Sea and Danube river under his control through the Bosporus and Dardanelles
Straits.

Turkey was attacked by many of the states, including Britain and France, especially Russia,
particularly in his week periods. In its strong periods, many of states signed friendship
agreements with Turkey. Because ,when Turkey closes its straits to sea traffic (can close
during war periods), Georgia (Batumi port), Russia Federation (Sochi, Kerch, Azov, Rostov
ports), Ukraine (Odessa, Kherson, Sevastopol, Yalta ports), Romania (Constanta), and
Bulgaria (Varna and Burgos) harbors and the Danube waterway ports are closed to
international sea transport. This also gives a great harm to the foreign trade of the
concerned countries. Both Middle East and European countries as well as Caucasian
countries, become independent states in 1991, such as Azerbaijan, Armenia and Georgia and
also Russian Federation, Ukraine, Romania, Bulgaria, Greece and other Central and Eastern
Europe countries have to cooperate with Turkey. Because, highway, railway, airway and
sea route links which already have been established or have to be established between these
countries are goes over the land of Turkey as the shortest paths.

The seas which has the most developed yacht tourism in the world are the seas which has
located in the northern and southern hemisphere between the latitudes of 10-20° and have
the islands located in close proximity to each other and in terms of mathematical location the
climate is suitable for yachting for all over the year. In this regard, the places in which yacht
tourism has most developed in the world are; in Northern hemisphere the Greater and
Lesser Antilles in the Caribbean Sea (especially Grenada Island), the American Virgin Islands
(especially St. Thomas Island), British Virgin Islands, the Bahamas Islands, In Southeast
Asia, South Thailand off the coast of the Andaman Sea (Phuket island, etc.) Malaysian coast,
in the southern hemisphere, Fiji and Tonga Islands off the coast of the Sea of the South
Pacific. The remote location of these places to European countries directed European
yachtsmen to Mediterranean shores which is located in the North (30-46 ° latitude) more
than these countries and because of this suitable for yachting for approximately 6-7 months
in a year.
Yacht tourism in Mediterranean countries developed according to the percentage of
completion of infrastructure and superstructure services. This development has been from
France, Spain and Italy in the West to the East, the coast of Croatia and Greece. The coasts
of Turkey benefits from he physical and geographical facilities which have the
Mediterranean countries.
Mediterranean coasts of Turkey is on the continuation route coming to Greece through West
Mediterranean, Spain, France, Italy and Croatia.
The line continued from Greece stretches down to Fethiye through Bodrum or Marmaris and
from Marmaris to Mersin. The coasts of Turkey are on a second line from Eastern
Mediterranean to Western Mediterranean which is less dense than the first one. This line
starts from Israel, comes over Cyprus, goes through coasts of Turkey and returns over
Rhodes or continue to West Mediterranean over Greece.
It is evident that, Turkey has extremely favorable conditions for yacht tourism such
as favorable climatic conditions coming from mathematical location, the importance of its
geographical location, its history yet remained untouched bays, the presence of other natural
beauties and its location where three continents are closest to each other. All these factors
played an important role for the emergence of the project.
When the factors such as climate, topography effecting the yacht tourism in the country is
examined under different headings; as use of marine recreational activities (sunbathing,
swimming, sailing, windsurfing, underwater exploration, diving, etc.) is fundamental, the
yacht tourism season depends on the climate. The places where the yacht tourism is most
developed in the world is the places where the climate is suitable for yachting in all the

months of the year. The arid climates which daily temperature values are 20-34ºC, daily
sunshine duration is long 811-12 hours/day), relative humidity is low (under 70%) are
suitable for yacht tourism. The Mediterranean climate which shows these characteristics in
the summer season, consistent with yacht tourism. The most suitable characteristics of the
Mediterranean climate for yacht tourism are especially summer drought and the speed of
wind suitable for sailing (under 7 km/s). As 73% of the yachts sailing in Mediterranean Sea
are sailing boat and 27% of them are motor yachts, the average monthly temperature on
the Mediterranean coastline needs to be over 20ºC for 4-6 months of the year. The average
temperature of the warmest month (July or August) is 27-28ºC. Over the winter months
usually the temperature doesn’t fall too much, warm conditions prevail. In the winter, the
average temperature in the coldest month (January) is between 7-10°C. The average annual
temperature is around 16-19 ºC. With these temperature values, the Mediterranean coast
are the coasts which has the highest average temperature in our country. When we look at
the July average, it is found that sea water temperature in Antalya is 26.9ºC, in Mersin
28.7ºC and in Iskenderun 29.7ºC. As the hours of sunshine in Mediterranean Sea is long,
this is the shoreline where yacht tourism is done for longest period. Because Mediterranean
climate offers the most favorable conditions for yacht tourism in coast of the Turkey with air
and sea water temperature, rainfall characteristics, longer duration of sunbathing and wind
speed with optimum value.

The average sunbathing duration in Mediterranean region is observed mostly in June, July
With 11.5 – 12 hour. However, as winter starts late and lasts early, this puts Mediterranean
in most among the favorable places for yacht tourism.

The number of foggy days in the Mediterranean coasts are quite low as in Aegean coast.
While the annual average day is 0.1, no experienced in June and July. The average in winter
months is again 0.1. So there is no negative impact of fog on the yacht tourism on the
Mediterranean coast.

With all the factors mentioned above, the presence of optimal conditions for yacht
tourism on the coasts of Turkey especially as a virgin area, the continuous upward
trend of KUMKUYU region in terms of tourism was attracted us as an investor and as a
result of the feasibility studies the project idea has emerged and as we have seen the
profitability level in an optimal level, we, as a company, made an investment decision.

2. Feasibility Study;
2.1. Name of the Project : Kumkuyu Marina Build-Operate-Transfer Project
2.2. Proprietor : Tüm-Sağ Kumkuyu yat Limanı Marina Turizm İnşaat Sanayi ve Tic.A.Ş
2.3. Yacht Capacity:
- 200 Units in the sea,
- 200 Units on Land ,+
- 400 Units Total Yacht Capacity

2.4.Marina Maintenance Shops Block A : 154.52.-m2

2.5.Marina Maintenance Shops Block B : 220.05.-m2
2.6.Marina Maintenance Shops Block C : 242.64.-m2
2.7.Operation Building : 286.90.-m2
2.8.Customs Building : 550.00.-m2
2.9.Yachtsman Store : 110.44.-m2
2.10.Sanitary : 161.06.-m2
2.11.Administrative Building : 266.89.-m2
2.12.Sales Units : 461.24.-m2
2.13.Social Facilities : 911.06.-m2
2.14.Market and Public Wc : 573.92.-m2
2.15. Pergolas : 120.00.-m2
2.16.Total Land Area : 82.791.-m2
2.17. Total Building Area Permit : 4.139.-m2
2.18. Number of Required Shower and Toilet : 35 unit
2.19.Number of Required Parking : 175 unit

2.20. Operation Period Revenues

At the marina establishments, depending on the location and the services of the marina, it is
possible to generate income from different items. Kumkuyu marina has been targeted by
foreseen of income generation from different sources including three main and other side
revenues during the transition to operation period after the investments that will be made.

a-) Major Basic Revenues;

 Rental incomes
 Boat Mooring Revenues
 Land park, Boatyard and Maintenance and Repair Revenues

b-) Other Side Incomes;

1. Water, Electricity, Telephone and Internet revenues

2. Car Parking revenues;
3. Toilet an Shower Revenues,
4. Laundry and Dry Cleaning Revenues,
5. Left luggage Office Revenues,
6. Fuel Station Revenues,
7. Catering, Shopping, Sports and Hobby Revenues,
 8. Travel Agency Revenues,

In addition of above, all of the commercial and social activations in terms of marina and
marina tourism business management will be provided with leasing and direct service
systems.

It is planned to hire the total 1100m2 of covered area of commercial facilities and/or
business.

The occupancy rates of the units which will be rented or give direct services will increase
with the operation period of the marina and starting from the active services of the facilities
it will reach 95% of occupancy in its 4th year is an unavoidable fact.

With the latest research, it is found that this average occupancy rate will be maintained until
the end of business

Also, the result of the research shows that if it is considered to operate all of facilities both in
the sea and land by lease instead of direct operation, it is could be rented easily and the
return of investment expenditures in a short period by obtaining highest amount of rental
revenue will be possible mathematically and also the pre-interviews introduced this.

Example.1- as a result of regional research, it is determined that a petrol station could be

rented for 20.000.- € monthly, 240.000.- € annually.

Example.2- as a result of regional research of mooring prices in the country and world;

When we make sampling as with of the boat: 5 meter, boat length 10 meter and if we
consider that it will occupy a total area of 50 m2, it is obvious to generate the following
revenue.

MORING PRICE LIST

Daily 30 60 90 120 150 180 210 240 270 300 330 365
Day Day Day Day Day Day Day Day Day Day Day Day
33 € 600€ 963€ 1345€ 1751€ 2005€ 2210€ 2350€ 2400€ 2425€ 2450€ 2475€ 2503€
Table -1-

 This amount will go up to 3157- €.

As there may be a decrease in winter season, this will not significantly effect the current
fixed rates.

WINTER MOORING PRICE LIST

1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months
480 € 815 € 1183 € 1553€ 1788 € 1930 € 2108 € 2.235 €
Table-2-

10% of discount for the first year and 5 to 7.7% discount in subsequent years could be
provided for the following yacht club members over above mooring rates. Over the time,
these discount rates could be reduced as a result of the quality of services provided.
In case of renting rather than direct operation of certain units as the Project Requirement
the revenue obtained and the unit prices to be applied will be as follows:

% Projected Sales and Service Units Occupancy Rates hire

Percentage of Occupancy of Rental Tariff to be applied

Commercial and Service Units which (EURO m2/Year)
Projected to be rented %
Operational Year Occupancy Rate Operational Year Rental Tariff
1st Year 70% 1st Year 250 €
2nd Year 80% 2nd Year 300 €
3rd Year 90% 3rd Year 375 €
4th Year 100% 4th Year 450 €
After
Table-3-

Rental Revenue ( € )

Operational Year Commercial Units Petrol Station Total Annual

Revenue
1st Year 325.000.- 240.000.- 565.000.-€
2nd Year 375.000.- 275.000.- 650.000.- €
3rd Year 435.000.- 315.000.- 750.000.- €
4th Year 645.000.- 475.000.- 1.120.000.- €
5th Year 725.000.- 525.000.- 1.250.000.-€

Total 2.505.000.-€ 1.830.000.-€ 4.335.000.-€

Table-4-

**** Naturally, the most important income item of Kumkuyu Marina will be obtained from
mooring and towing fees.

 Boats to be paid annual mooring fees,

 Boats winter over marina for 6-8 months ,
 Boats overnight in short periods of time,

When determining the boat mooring revenues, the change on the occupancy rate of
the port (capacity utilization) and changes of unit prices has been taken as variable.

The annual mooring rate for all sizes of boats has been planned 0,66 € /m2 for each
day for the first operational year of the Marina.

The annual mooring capacity in the sea of Kumkuyu Marina will be 200 yacht and
mooring capacity of yachts over winter will be 95. Targeted maximum annual
overnight capacity is determined as 5000 yacht.
A- DISTRIBUTION OF ANNUAL BOAT TO BE MOORED
Boat Length Boat Width Area Number of Rental Area Annual Rate Total €
(m) (m) Occupied by boat (m2) for 1 boat €
one boat
( m2)
10 3,5 35 108 3.780 1.752 189.216
12 4 48 42 2.016 2.402 100.884
16 5 80 20 1.600 4.005 80.100
20 7 140 17 2.380 7.008 119.136
25 8 200 13 2.600 10.012 130.156
TOTAL 200 12.376 25.179 619.492
Table-6-

B- DISTRIBUTION OF BOATS WINTERING ON LAND

Boat Length Boat Width Area Number of Rental Area Rate for 1 Total (€)
(m) (m) Occupied by boat (m2) boat over
one boat Winter
( m2) ( €)
10 3,5 35 20 700 1.577 31.540
12 4 48 10 480 2.163 21.630
16 5 80 10 800 3.605 36.050
20 7 140 5 700 6.308 31.540
25 8 200 5 1.000 9.012 45.060
TOTAL 50 3680 22.665 165.820
Table-7-

C- DISTRIBUTION OF BOATS STAYING OVERNIGHT

Boat Length Boat Width Area Number of Rental Area Daily Rate Total €
(m) (m) Occupied by boat (m2) for 1 boat
one boat (€)
( m2)
10 3,5 35 2750 96250 25 68.750
12 4 48 1425 68400 35 49.875
16 5 80 650 52000 55 35.750
20 7 140 90 12600 95 8.550
25 8 200 85 17000 135 11.475
TOTAL 5000 246.250 345 174.400
Table-7-

Increasing the overnight rates by 50-60% during winter period for short-term periods is among our objectives
and the world and country and regional practices are like this.

The lifting service charge for 80% of total 250 boats moored to Kumkuyu Marina and staying
over winter and for the boats coming from outside is thought as 15 € /m2.

In addition it is estimated that 70% of these boats will get maintenance and repair services
on land.

When marinas in Turkey are examined, the 30% of revenues that will be obtained from
maintenance and repair services and 15% of the sales of the materials used for these works
will remain as an income for marina. For the fees determined for these maintenance and
repair services the length of the boats has been taken as a base.

The material revenue is considered as 140% of maintenance and repair services.

D- BOATS GETING LIFTING SERVICES; € /Year
Boat Boat Width Area Number Rental Total Total Total of Total
Length (m) Occupied by of boat Area (m2) Lifting Main. Material (€)
(m) one boat Services Repair (€)
( m2) (€) Service
(€)
10 3,5 35 170 5950 14.960 75.386 55.325 145.671
12 4 48 125 6000 11.250 60.126 37.246 108.622
16 5 80 76 6080 11.400 45.386 28.440 85.226
20 7 140 45 6300 10.125 35.425 25.213 70.213
25 8 200 32 6400 8.800 15.126 18.927 42.853
TOTAL 5000 30.750 56.535 231.449 165.151 452.585
Table-8-

Without other side incomes, just being out of direct operation and excluding
service locations which rental incomes will be obtained over these facilities, the
total net revenue obtained marina and lifting, maintenance and repair services
and sales revenue from materials used for these services after 5 years, excluding
all general administrative expenses are shown in the following Table -9.

E- 5 YEAR INCOME DISTRIBUTION ; € /Year

Operational Total of Rental Boat Mooring Lifting Main. Total

Year Revenue Revenue Repair & (€)
( €/Year ) (€ /Year) Material
Revenues
(€/Year)
1st Year 565.000.- 959.712.- 452.585.- 1.977.297.-
2nd Year 650.000.- 1.247.626.- 610.989.- 2.508.615.-
3rd Year 750.000.- 1.621.914.- 824.836.- 3.196.750.-
4th Year 1.120.000.- 2.108.488.- 1.113.529.- 4.342.017.-
5th Year 1.250.000.- 3.162.731.- 1.503.264.- 5.915.995.-

TOTAL 4.335.000.- 9.100.471.- 4.503.203.- 17.940.674.-

Table-9-

F- OTHER OPERATIONAL REVENUES; € /Year

Car Water, Laundry Luggage Catering, Sport & Travel Agent Shower Total €
Parking Electricity, & Dry Storage Shopping Hobby Commission & Other
Revenue Telephone Cleaning Revenue Revenue revenues revenues Incomes
( €/Year] ( €/Year) ( €/Year) ( €/Year) (€ / Year) (€ /Year) (€ / Year ) (€ /Year)
10.500 25.300 14.500 4.500 55950 14.960 25.386 5.325 156.421
Table-10-
G- 5-YEAR REVENUE DISTRIBUTION OF NORMAL REVENUE AND OTHER REVENUES; € /Year

Operational Rental, Boat Total of Other Total

Year Mooring, Lifting, Income (€)
Maint. Repair and (€ /Year)
Material Revenues
Total
( €/Year )
1st Year 1.977.297.- 156.421.- 2.133.718.-
2nd Year 2.508.615.- 234.632.- 2.743.247.-
3rd Year 3.196.750.- 351.947.- 3.548.697.-
4th Year 4.342.017.- 527.921.- 4.869.938.-
5th Year 5.915.995.- 791.881.- 6.707.876.-

TOTAL 17.940.674.- 2.062.802.- 20.003.476.-

Table-11-

The total amount of approximately revenue which will be obtained from Kumkuyu marina in
5 years is ‘’ 20.003.476.- ‘’ € ‘. This clearly shows that the investment made for the
business will pay for itself in a short time.

3- Operating Expenses;

The annual basic expense items which will be used during Operational Period of Kumkuyu
Marina;

Electricity, Water expenses

Personnel Expenses
Risk Insurance expenses
Depreciation
Current expenditures and
Unexpected expenses can be listed

The annual electricity and water expenses was estimated as 11.527.-€ fixed. Also it is
foreseen that 3% of the revenues from boat mooring will be spend for providing electricity
and water that will be used by these boats.

Also it is estimated that 7% of the revenue obtained from land services will be spend to
provide electricity and water to be used during these services.

As a personnel policy, the permanent staff of 38 member formed since the firs operation
year of the facility, all the elements of the services has been taken into account an calculated
as considering no change will be made during operational period.

Total annual personnel cost, including all legal obligations, is calculated as 245.299.-€ /year.
On the operational base, the fall and rese of exchange rate will not effect this amount unless
an extraordinary increase or fall take place.

The promotion and advertising costs of the facility is determined as 38,411. - € / year.

In addition, all of the facility will be ensured against all of the risk as fixed 46.863.-€ /year
has been taken into account.
The economic life of the buildings consisting of Kumkuyu Marina have been considered as 40
years, so 2.5% of depreciation needs to be required per year.
The economic life and annual depreciation rate has been determined for plant structure is
20 years and 5%, for machine and equipment 10 years and 10% respectively.

Up to 2% of the total revenues reserved as provision of current and unknown charges.

Accordingly, 5-year Operational Expenses;

Operati Personnel Electricity Advertise Depreciatio Insuran Rental Total

onal Expenses & Water ment & n Expenses ce Revenue (€/
Year (€/Year) Expenses Current (€/Year) Expense (€/Year) Year)
(€/Year) Expenses s
(€/Year) (€/
Year)
1st Year 245.299 11.527 11.867 14.833 46.863 19.258 349.467
2nd Year 245.299 13.832 15.456 19.320 46.863 19.258 360.028
3rd Year 245.299 16.598 21.121 26.401 46.863 19.258 375.540
4th Year 245.299 19.916 28.374 35.467 46.863 19.258 395.177
5th Year 245.299 23.902 35.006 43.757 46.863 19.258 414.085

Total 1.226.495 85.775 111.824 139.778 234.315 96.290 1.894.477

Table-12-

4- Profitability Analysis;

This is after all the investments of Kumkuyu marina are completed and
commissioning and when the increase over the years is taken into account,
arithmetic and the development in tourism has reached to expected level; the
expected profitability rate over the years will be between 10 to 15% is an
inevitable fact.

In this case, the amounts of net profit ta be gained from starting commissioning
of the facilities will be as follows:

Operational Total Operational Total Operational Total Amount of

Year Revenue Expenses Net Profit
( €/Year ) (€ /Year) (€/Year)
1st Year 2.133.718.- 349.467 1.784.251.-
2nd Year 2.743.247.- 360.028 2.389.219.-
3rd Year 3.548.697.- 375.540 3.173.157.-
4th Year 4.869.938.- 395.177 4.474.761.-
5th Year 6.707.876.- 414.085 6.293.791.-

TOTAL 20.003.476.- 1.894.477 18.115.179.-

Table-13-

5- Cost of the expenditure required for the project;

The marina will be built in sections as shown in the following table and will be get
ready for operation.
All the calculations have been prepared in conjunction with civil constructions
and regional market data under the project.

In this case, the cost incurred will be as follows

No. Nature of the work to be done Cost of the work €

01 Primary and secondary breakwater construction 3.931.397.-
(Riprap, crown wall construction, etc.).
02 Back Field and Dock Construction (Back field filling, 2.417.375.-
Intraside and Kronman concrete etc.)
03 Piers (steel piles and precast beams, slabs, etc.). 634.983.-
04 Water and electrical installations (infrastructure, 515.327.-
plumbing, low and medium voltage electrical
installations)
05 Transformer, Drilling, Lanterns and Project Costs 275.119.-
06 Transportation (Stone Sand, Gravel, Cement, Iron, 2.252.836.-
Steel Pipe etc. .transportations)
07 Other Infrastructure Expenses 409.606.-
08 Superstructure Construction (coarse and fine works) 1.843.033.-
09 The construction of social facilities 491.313.-
10 Landscape and Architectural Arrangement 385.626.-
11 Construction of Fuel Station 849.627.-
12 Machinery and Equipment Expenses 625.449.-
13 Other Superstructure Costs 383.426.-
TOTAL 15.015.117.-€

1.1. The total amount spent by Tum –Sag for the project, as seen from accompanying
financial balance sheet, is 2.049.567,86.-€, when this amount deducted from total
cost; 15.015.117 – 2.049.567,86.-= 12.965.549,14.-€, the balance is the
investment finance need.
1.2. As 1.965.549,14.-€ of the required investment finance will be met by the
company from its own resources, the remaining investment finance of
11.000.000.-€ will be needed.

Taking into account the above Project data whe compared with the remaining
income and net profit rate after deducting the prepared business operating
expenses,

Within as soon as five years this investment will pay itself very easily as an
investment that occurs to be within the frame of the opinion of experts.

5-year periodic profit – Property investment financing needs = Remaining Net Income

A- 18.115.179 – 11.000.000 = 7.115.179 -€ is total of remaining profitability without

the investments made and committed by business owner.
B- 7.115.179 – 4.015.117 = 3.100.062.-€ is net profit that made and committed by
business owner after expense.
C- 3.100.062.-€ / 5 = 620.012.-€ / year, this is a clear indication that 620.012.-€ of
net profit will be left to the business per year after deducted all the expenses.
 This report has been prepared at the request of the company, as set forth in the
briefing, by taking into consideration of the rules of neutrality.

Best regards,

Appendices:

1-Company legal entity documents

2-Project Example
3-Altitute Right Title Registration
4-2012 Current Term Financial Balance Sheet