UKONNIEMI Imatra Spa Resort

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1 UKONNIEMI Imatra Spa Resort Locating for Success

2 UKONNIEMI Imatra Spa Resort Ukonniemi is the developing tourism location in South-East Finland close to the Finnish-Russian border. Its beating heart is the Imatra Spa which attracts hundreds of thousands visitors every year. The Ukonniemi master plan offers rich potential to establish new businesses delivering services for tourists visiting the region. Promising opportunities for new businesses The number of tourists visiting Imatra, occupying local accommodation and taking advantage of tax free purchasing is growing year by year. The total number of in the surrounding region of South Karelia rose by more than 26% in 2012 alone. All forecasts indicate continued growth going forward. Ukonniemi offers space with demand for a range of entrepreneurs and businesses. The number of tourists visiting Imatra, occupying local accommodation and taking advantage of tax free purchasing is growing year by year. The total number of in the surrounding region of South Karelia rose by more than 26% in 2012 alone. All forecasts indicate continued growth going forward. CURRENT SERVICES IN UKONNIEMI Restaurants and accommodation Spa Hotel, cottages, restaurants and cafés Sports facilities Ice rink, tennis hall, sports fi eld, artifi cial turf pitch, multifunctional arena, disc golf course and hiking trails Program providers Cruises, water activities, fi shing tours, ATV safaris, equipment rental and wilderness guides BUSINESS POTENTIAL IN UKONNIEMI LAPPEENRANTA Rauha 6 Ukonniemi 6 IMATRA Mansikkala Imatrankoski Ukonniemi lies on the shore of Lake Saimaa, approximately 5 kilometres from the town centre of nearby Imatra. Ukonniemi is bordered by the popular tourism destination of Rauha, situated in the area of neighbouring town Lappeenranta. Boating services Marina services, boat warehousing and maintenance Retail services Shops for outdoor, golf and sports gear, souvenir shops Program providers Wilderness guides, fi shing tours, equipment rental Restaurants and accommodation services

3 The appeal of the unique Ukonniemi and its surroundings The tourist attractions in the area of Ukonniemi and its immediate surroundings already deliver a plentiful flow of customers. The popular Imatra Spa and new Holiday Club Saimaa spa in the vicinity attract tourists all year round. Excellent environment for entrepreneurship Recent years have seen a remarkable flow of investment capital into service development in Imatra. Major examples include the construction of a business park in the centre of town. A significant number of service outlets continues to spring up around the main South Karelia road route, especially as a result of the now competed improvements to Highway 6. A new Ikea store plus the surrounding Ikano Shopping Center only 20 minutes drive from Ukonniemi will open in Profitable entrepreneurship in the vicinity of growing centres of activity Ukonniemi s neighbouring areas are strongly growing centres of trade and services. The proximity of large, wealthy Russia underpins excellent opportunities for growth. Thanks to our Russian tourists, sales statistics make Imatra, Lappeenranta and Helsinki Finland s top three locations for tax free shopping. The region s commercial potential is well recognized in South Karelia so significant investments are being made in education regarding languages and the trade and services sectors. Highly competent and professional staff are on tap. A long tradition of tourism Popular Imatran Valtionhotelli and Day Spa The Imatra region has a distinguished history as a tourism destination and remains one of the fastest growing and finest in Finland. The Imatrankoski rapids were the first and for a long time Finland s most popular tourist attraction. Nowadays visitors are also drawn by the commercial services on the pedestrian streets in the centre of Imatra itself, the unique Castle hotel, Imatra Spa and several festivals and sports events arranged in the town. The neighbouring city of Lappeenranta also brings a full flow of tourists into the area. The Rauha resort with the new Holiday Club Saimaa spa hotel is connected to Ukonniemi by a golf course, walking trails and in the wintertime ice skating trails. Lappeenranta s international airport offers regular flights to several destinations in Europe. The pedestrian streets and a concentration of trade outlets generate tourist appeal. Tax free sales have been growing at a rate of more than 100% over the past two years. Robust and continuously strengthening tax free sales figures are indicative of Imatra s growing popularity as a tourism destination. Imatra Big Band Festival and a huge variety of other events are attracting tourists to the Imatra region. The powerful river Vuoksi in full spate at the Imatrankoski rapids.

4 Importing prosperity Tourism in South Karelia and indeed Finland as a whole has been growing at a remarkable pace, generating positive economic impacts alongside the rising rate of tourist arrivals. The engine of growth for Imatra in particular is foreign tourists primarily from Russia. A signifi cant share of the trips made to Finland by Russian tourists are shopping expeditions, and the statistics signpost the demand for growth in a variety of services. The new spa in Rauha immediately increased overnight stays by Russian tourists in the area. The market is supply-side driven with tourists buying the services that are available. Growth in tourism 26% Finnish Tourist Board statistics indicate the number of tourist in South Karelia stood at 715,000 in 2012, i.e. 26% higher than the previous year. Nights spent in South Karelia Source: Finnish Tourist Board Source: Regional Council of South HELSINKI Development and commercial construction required in South Karelia Forecasts indicate the need to double the availability of commercial premises in South Karelia by Required growth in business premises set at more than 90% 6 IMATRA Vyborg Population within 300 km Population within 200 km Imatra Nuijamaa Vaalimaa Vainikkala 3 mill. Finns 1,5 mill. Finns St. Petersburg 10 mill. Russians 5,5 mill. Russians 4 INTERNATIONAL BORDER CROSSING POINTS within an hour s drive of Imatra 61 million euros spent on service purchases FORECAST 2025 Product and service purchases total 3166 million euros (scenario +25%) RUSSIANS SPENDING IN IMATRA IS GROWING In 2012 Russians spent a total of 366 million euros in Imatra and the Lappeenranta region Source: Santasalo Ky, Tak Oy, Regional Council of South Karelia 295 million euros spent on product purchases 11 mill forecast Excellent transport links throughout Finland Highway 6 runs from Imatra to Helsinki To Helsinki by rail less than two and a half hours Driving time to Lappeenranta international airport less than half an hour 260 km to Helsinki 2,5 hrs to Helsinki 30 mins to Airport 20 mill. 15 mill. 10 mill. 3 mill.. 2 mill. Fast connections to St. Petersburg by road or rail 210 km by road from Imatra to St. Petersburg By rail to St. Petersburg via Vainikkala 210 km to St. Petersburg 1,5 hrs to St. Petersburg Tax Free Sales in Imatra 1 mill Number of tourists visiting South Karelia 2025 Source: Global Blue Source: ELY Centres, Finnish Customs, TAK Oy

5 Ukonniemi the place to make your business a success story! For more information contact: Ismo Pöllänen Senior Advisor ismo.pollanen@kehy.fi Tel Marina Passenger terminal Imatra Spa Artifi cial turf playing fi eld Lammassaari Sports fi eld Training ground Disc golf course Planned properties Existing properties Log cabin hotel Multifunctional arena 0 m 500 m 1 km Holiday Club Saimaa Holiday Club Golf Saimaa Ice rink Tennis hall Rauha Driver training and motor sports area