Ski Cluster project concept for 2013 - 2017

Summary

This Concept describes policies, rules, procedures, as well as methods and methodology for the implementation of the project “Ski Cluster. The ski cluster is a system for managing the development of ski tourism in the Kyrgyz Republic, based on sectoral, intersectoral, and territorial principles of unity of purpose.

Methodology expositions

The description of the components of the Concept is the formulation of the policy for their implementation. It is assumed that the implementation of the project will be based on two sets of rules:

Composition 1. Regulatory legal acts approved in accordance with the procedure established by the legislation of the Kyrgyz Republic.

Composition 2. Internal guidance documents and regulatory and technical documentation developed, approved and accepted for execution by the cluster members based on the principles of self-regulation.

The procedures for the implementation of the goals, objectives and functions of the Ski Cluster are described in accordance with the methods fixed for each individual component of the Concept. The final indicators, as well as the output results, are formulated in the relevant plans, presented in tabular form in the Appendices to this Concept.

The essence of the project

The essence of the project is to consolidate the interests of small and medium-sized businesses, as well as the territorial interests of the Issyk-Kul region for the purpose of realizing the mining potential of the Kyrgyz Republic.

The basis of the cluster are:

1. 5 key projects for the construction of ski resorts:
   1. Karakol,
   2. Boz-Chuk,
   3. Chelpek,
   4. Kerege-Tash,
   5. Svetlaya Polyana.
2. Projects of related enterprises from related sectors of the economy:
   1. Housing, communal and household services (KOU, hotels, etc.)
   2. Food and processing industry
   3. Handicraft and needlework
3. Infrastructure projects:
   1. production
      1. Projects to ensure the fuel and energy balance of the cluster territory in the Issyk-Kul region (28 projects of small hydroelectric power plants, 1 project of a wind farm in the Boom Gorge, a heat station in the city of Karakol based on coal from the village of Dzhergalan);
      2. Transport projects of air and road transportation (Tamchy airport, Karakol airport, Ring around Issyk-Kul)
   2. Social (training, cultural, aesthetic, ideological support for the export of tourism services, taking into account the national flavor).

Efficiency and cost indicators of the project

Product yield in physical terms:

1. For key projects (5 ski resorts) - 2.0 million ski tickets
2. For related projects - consumption growth by 20%

Estimated cost of the project:

1. For key projects - 2.0 billion US dollars.
2. For infrastructure projects - 1.26 billion US dollars.

The estimated payback period for key projects is 5 years from the date of launch. Estimated start periods: 2013-2014 season.

The calculated indicator of the internal rate of return (IRR) is 22%.

Project productivity

The project will create at least 20 thousand jobs to provide services to 300 thousand tourists annually. The project is environmentally friendly.

Institutionally, the project positions the Kyrgyz Republic as a mountainous country in the international ski tourism market. It positively influences and creates the prerequisites for the sports, cultural and patriotic education of young people.

The project is designed to consolidate the efforts of small and medium-sized businesses in partnership with the authorities on the principles of public-private partnership.

The pilot nature of the project will allow testing the principles of self-regulation of enterprises within the industry within a limited area.

The innovative character in the conditions of Kyrgyzstan will allow developing solutions for other types of clusters that are potentially ready for launch.

1. Current situation

The situation in the economy of Kyrgyzstan is characterized by the state of the potential of its enterprises. The composition of all enterprises can be grouped into at least two types of potential: (1) independently developing small and medium-sized businesses, and (2) enterprises in the transition economy since the times of the USSR.

Economic management has practically ceased to use planning tools on a national scale, the responsible institutions have been liquidated. Moreover, new tools that are effective in the conditions of market principles of management are not being introduced.

The interaction between industries is reduced to the interaction between economic entities, are spontaneous. The bias in the choice of strategy often leads small businesses to self-destruction (for example, the tendency to start hairdressing salons for everyone at once).

Bank credit capital, which ensures business development, is a very expensive and hard-to-reach resource. Investment capital is not provided with the proper composition of competent knowledge to attract investments on a large scale.

On the other hand, caring about the investment climate is just propaganda, while real steps to change the regulatory and legal aspects of the climate have not yet been taken in the right direction. For example, it is especially important today to revise the law on investments, in terms of qualifications, the procedure and conditions for its formation. It is necessary that investments be seen not only as a contribution of foreign investments, but also as a reinvestment of current profits in equity.

The overall growth of successful businesses is unrelated to each other. Solidarity in the concentration of resources is reduced to agreements between the owners in a particular project. At the same time, the real laws of intersectoral relationships are not taken into account.

Thus, over 20 years of free development of small and medium-sized businesses in Kyrgyzstan, the task of concentrating the resources of small and medium-sized businesses, their combination and purposeful direction for larger consolidating projects of a national scale becomes urgent.

Failure to resolve this issue threatens to degenerate growing competition into a corrupting and destructive nature, including in the territorial aspect. Whereas the solution of the problem of consolidation will make it possible to strengthen the country with economic ties between different territories on the principles of concentration, specialization and cooperation.

Today different countries act through their economic satellites. Russia - through Gazprom, Switzerland - through a guarantee institution, the USA - through stock exchanges, etc. The key principle of all their development is the cluster principle. Clusters of different countries began to take on the character of country brands (Nokia, Sharm El Sheikh, Shanghai, etc.), around which not only resources are concentrated, but also care from their state.

2. Vision

In the next 5 years, the state will face growing lobbying of interests by various representatives of this or that business. The transition to a parliamentary form of government can lead to a complete set of parties along class lines. Kyrgyzstan will face the need to form clear and fair rules for the direction of administrative resources, adequate to the interests of all market participants.

The economy of Kyrgyzstan will move from the export of labor to the export of goods for small and medium-sized businesses. However, this will lead to clashes when entering international markets. This explains the position of representatives in the light industry, as well as in the processing industry on the issue of joining the Customs Union.

Thus, concern for the sales market will be reduced, first of all, to the conquest of a "trade shelf" in Kyrgyzstan's own territory. The most desirable solvent consumer in the near future will be a foreign tourist. Its consumption in the territory of Kyrgyzstan is nothing more than a guaranteed export that does not require customs, border procedures, etc.

Different rates of production of different types of products will be reduced to a question of marketing. As a result, the primacy of the production of a tourist product, for the sake of which a solvent foreign tourist will arrive in Kyrgyzstan, will become acute.

One of the key types of tourism product that is most adequate to the natural and climatic conditions of Kyrgyzstan is ski tourism. Its segment is recognized as the most expensive, moderately narrow, and very effective.

According to international studies on mountain tourism (Lorena Vanata), ski tourism will gain 200 million lovers by 2020. China's statistics confirm that in 1980 the Celestial Empire began with three ski resorts, today it is 70. Now the neighboring country plans to increase the number of ski resorts to 200. Kyrgyzstan has an important territorial advantage. 90% of the territory is mountainous. Unlike the Alpine mountains, the mountains of Kyrgyzstan are distinguished by higher rates, as well as a more diverse relief. The winter climate on the shady side of the mountains lingers for a longer period than the calendar three months. The amount of precipitation reaches 51 cubic meters. km annually. In the presence of electric power opportunities, additional potential appears with the use of snow blowing technology.

Location - in the center of the largest continent on the planet. Within a radius of 3-6 hours of flight, Kyrgyzstan covers all the capitals of the Eurasian continent from London to Tokyo. In the context of the demographic decline in the European part of the continent, as well as population growth and economic development of the economies of the countries of the Asia-Pacific region, the prospects for an increase in the number of skiers are expanding.

3. Purpose, tasks and key functions of the ski cluster

The aim of the creation of a ski cluster is the conquest by Kyrgyzstan of its own niche in the world market of ski tourism.

The ski cluster is designed to solve the following tasks:

1. consolidation of the efforts of the state and the business community in realizing the mining potential of Kyrgyzstan;
2. formation of a country competitive advantage through competitive legal acts (NLA) that help entrepreneurs to conquer the market;
3. a combination of available resources of small and medium-sized businesses through specialization and diversification of the coverage of market segments by each of the cluster members;
4. promote the creation of other types of cluster. Thus, in order to meet the needs for transportation to the location of the cluster, the infrastructure projects “Tamchy Airport”, “Karakol Airport” are sharply updated. Similarly, the growth in the number of ski tourists in winter increases the need for catering facilities, public utilities, which entails the development of meat and dairy food processing, as well as construction clusters based on Kyrgyzstan's own resources.

The cluster provides a partnership of different parties. According to the sectoral principle, partnerships are formed within the tourism industry, as well as outside the industry with subcontractors of related industries. Territorially - partnership with the municipal authorities. Partnership in the formation of the basic legal environment - the state. The role and place of each cluster member is evaluated according to the degree of complexity of the tasks to be solved.

The cluster does the following functions, mediated by its constituent partners:

1. goal setting. The key role in setting goals and formalizing decisions and agreements within the Cluster in the NPA belongs to the Government. In the ratio of goals when choosing, the cluster assigns an important role to international experience.
2. Organization. At the same time, all partners ensure interaction through authorized competent representatives in the working group.
3. Motivation. None of the directions for the development of the Cluster will be adopted until there is a complete combination of the interests of the participants on the part of the partners.
4. Coordination. Coordination between partners is carried out on the basis of a special Regulation of the Working Group. Each participant has the right to openly lobby and protect their own interests. Their accounting and summation will mean the integrity and potential of the Cluster. The exchange and non-observance of information is the main principle of cooperation between partners.
5. Analysis. The cluster is ready and will regularly reassess the role and place of the contribution of each of the partners in the development of ski tourism. The pursuit of fair participation criteria is an integral part of his work.
6. CONTROL. The cluster will retain the ability to stop or start an activity, as well as provide a breadth of options in the choice of activities.

4. Constitutional structure of the cluster

The cluster is a constitutional voluntary partnership of different participants who retain their independence in decision-making and are responsible only in matters related to obligations in the cluster.

The composition of the cluster consists of the following members:

1. Government represented by sectoral ministries and departments;
2. Municipal authorities;
3. Business entities consisting of:
   1. Key enterprises of ski tourism;
   2. Basic related enterprises of related industries;
   3. Infrastructural entities, which are also subdivided into:
      1. Industrial infrastructure enterprises.
      2. Social infrastructure enterprises.

Participants independently decide, empower and send competent representatives from their side as representatives to participate in the working group. At the initial stage, the work of representatives is carried out on the basis of a special Regulation of the Working Group. The Regulations of the Working Group are given in Appendix No. 1.

At the next stage, the creation of the Interdepartmental Commission on Tourism seems to be the most acceptable.

Participants from state and municipal authorities, as well as business entities form the working potential of their executive body: office, funds for current needs, etc. Details of capacity building and expansion will be presented by the working group in the financial plan, which will include budgets for activities ranging from computers to travel expenses.

Members of the Cluster-participants from among the economic entities that have joined the Mountain Cluster Association pay membership fees. The collected contributions are distributed and sent in accordance with the approved action plan. However, membership can also be with an advisory vote for participants who do not pay membership fees (sector of education, culture, sports, etc.). The contribution of state and municipal authorities in the form of legal acts is an imperative function, since the payment of taxes by business entities of the cluster is also mandatory. After all, all enterprises will pay tax, the forecast indicators of which will be the subject for planning and target indicators of growth. Accounting for investments is carried out based on the sum of the balance sheet indicators under the item “Equity Capital” or “Authorized Capital”, as well as “Share Capital”, including “Retained Earnings at the disposal of the enterprise after taxes” of accounting in accordance with the KAS standards in accordance with IFRS. This is necessary in order to show the real volumes of investment in the Ski Cluster project. Non-monetary resources contributed by participants are valued at market criteria, including discounted current flow rates. This is necessary in cases where participants can enter not only in cash, but also with certain rights to use, etc.

The accounting method within the Cluster is standard.

Participants can increase or decrease their contributions to a particular strategic event, project, business unit [required for the needs of the cluster], after informing other participants in advance.

5. Analysis of the ski tourism market

Since 2005, there has been a certain development of the ski industry in Kyrgyzstan, mostly on the basis of ski resorts operating since Soviet times.

Favorable geographical and climatic factors contribute to the development of ski tourism and sports in our country. The number of outdoor enthusiasts in Kyrgyzstan is increasing every year. And the number of people professionally involved in winter sports is increasing due to the active work of sports federations and the Sports Agency of the Kyrgyz Republic.

The development of the ski industry is an important socio-economic task of the Government of the Kyrgyz Republic, as it contributes to the creation of new jobs, replenishes the budget of the regions, contributes to the development of related sectors of the economy, promotes active healthy family recreation, hardens and educates young people.

The scale of reconstruction and modernization of ski facilities has increased, solely due to the initiative of the private sector. The state does not take the initiative to develop ski tourism and sports. The state does not invest directly in ski tourism. And scanty amounts were invested in the development of winter sports through the State Sports Agency, co-financing the participation of athletes in various competitions.

Despite the crisis period of 2008-2009 and the events of 2010, 7 cable cars were built and put into operation in Kyrgyzstan. 7 units of snow-compacting equipment were delivered. New accommodation facilities have been built and old accommodation facilities have been upgraded. Trade in sports equipment, clothing and accessories for winter sports is growing steadily.

However, ski tourism as a tourism product is at a very low level and there are prerequisites that ski tourism will be uncompetitive on a regional and global scale. All lifts put into operation at ski resorts are used and belong to the first and second generation of lifts. In Europe, 5th and 6th generation lifts are being introduced everywhere. In neighboring Kazakhstan, the state has invested about US$1 billion in winter sports infrastructure, including Leitner's Generation 5 ski lifts at the Chimbulak ski resort near Almaty. The Kokzhailyao resort is being designed at a cost of more than 2 billion US dollars.

Also, ski tourism remains not "mass", although in the conditions of Kyrgyzstan, skiing may well be considered as a national sport.

In order for ski tourism to become competitive and "mass" it is necessary to invest in ski infrastructure in much larger volumes than is being invested now, capable and socially responsible investors are needed.

This requires a different legal basis, the modernization of existing legislation.

At present, more than ever, Kyrgyzstan needs a public-private dialogue and partnership in order for a competitive ski tourism infrastructure to appear and tourists from Kazakhstan and Russia, Europe and other continents seek to come to Kyrgyzstan to relax in the winter.

Based on the experience of countries with a high level of development of ski tourism, such as France, Switzerland, Austria Public-private dialogue and partnership is perhaps the only possible mechanism for actively attracting investment in this area.

Acceptable conditions for investors will contribute to the influx of more serious investments in the tourism and sports industry, to attract socially responsible and capable investors.

Investment means the emergence of infrastructure and material and technical base for the development of winter sports.

Legal issues of the development of skiing and tourism, the ski industry as part of the sports industry, in Kyrgyzstan are considered within the framework of legal acts common to business activities.

At the same time, the functioning of the ski industry is associated with the use and protection of subsoil, waters, forests, wildlife and other natural resources, environmental protection, specially protected natural areas and objects, protection of atmospheric air and cultural heritage of peoples. Therefore, the legal issues of the development of skiing and tourism, the ski industry should be taken into account in the relevant regulatory legal acts.

The working group formed to implement the Ski Cluster Concept will regularly produce a SWOT analysis, in accordance with the Regulations (see Appendix No. 1) and present a Table of activities based on the Analysis. The format of the SWOT analysis table is presented in a standard form (See Appendix No. 2).

6. Marketing plan

The marketing plan of Ski Tourism in Kyrgyzstan is aimed at forming a range of products for all cluster members. The variety and quantity of Cluster products is an indicator of its potential. The growth in the number and types of products in its diversity, as well as the increase in the number and volume of sales are indicators of the development of the cluster.

The marketing plan involves the following set of measures:

1. Formation of a unified range of products within the Cluster for sale to ski tourists;
2. Concern for a competitive price for the optimal ratio of "price-quality" in comparison with similar indicators in the world market of ski tourism
3. Promotion of the Cluster product range up to occupying its own competitive niche among the mountain clusters of the Alps, Southeast Asia, North America, etc.
4. Focus on promising markets for ski tickets.

In order to implement the project, radial segmentation in cluster marketing is conceptually adopted. Radial segmentation involves activity, mainly directed from the nearest markets to distant ones. As the interest of ski tourists from nearby countries is gained, the segment of activity will gradually expand in radius. The radius is calculated according to the flight hours of the available flights.

According to coverage optimality criteria, the Cluster will be especially active in the development of new flights if the coverage implies a more effective marketing than in the presence of traditional flight routes.

The formation of a competitive price will be based on the results of a proper analysis of the composition of costs in the formation of the unit cost of a ski ticket.

The promotion of the Cluster is carried out in accordance with the media plan based on the roadmap presented in Appendix No. 7. The cost of promotional activities, as well as the frequency and schedules of financing according to budgets, are approved by the Working Group in the form presented in Appendix No. 3.

The distribution of advertising budget funds among the media will be carried out only after their accreditation. In the development of the Cluster and ensuring a proper understanding of its goals, objectives and achieved results, the media is given the utmost importance.

7. Action plan

The implementation of the Concept involves the consolidation of the efforts of the participants. In accordance with the Regulations of the Working Group, formed from among the parties participating in the cluster, the Strategic Plan is submitted for consideration by the parties as a set of activities and actions.

The process of developing and implementing the Strategic Plan is the subject of activity of the Cluster Working Group.

If there is a general guideline for the development of the Ski Cluster, the overall Strategic Plan will be described according to the principles of "Skin Management". Skin management in the management of the Ski Cluster implies the responsibility of each of the participants in their development vector.

The action plan at the initial stage of the implementation of the Ski Cluster is presented in Appendix No. 4.

The key principle of interaction is the exchange and non-observation of information between cluster members. The main form of information exchange is written, documented.

8. Financial plan with annexes

To organize investment flows, the participants of the Mountain Cluster create an investment fund. The Fund is intended to provide all the necessary financial mechanisms for the implementation of Cluster projects.

To ensure inflows, two sources of capital investment are considered:

1. Contributions of investors as founders;
2. capitalization of income.

Project management in the Cluster is ensured by focusing and concentrating on projects ranked according to the criterion of dynamism and capital turnover rate. At the same time, the internal rate of return (IRR) should not be lower than 17%.

In order to ensure transparency in the selection of projects for the conditions of the Cluster, indicators will be applied in accordance with generally accepted accounting and reporting principles (GAAP).

The financial plan of the Cluster is a set of projects included in the register. The Register of Projects is reviewed on a working basis by the Working Group upon the submission of any of the parties participating in the Cluster. After consideration within a month, the project is sent for inclusion in the register of the Cluster.

The publication of the increase in the cost of projects in the process of their implementation is carried out on a continuous and regular basis - monthly, no later than the 5th day of the month following the reporting one.

Publication of financial and economic indicators in accordance with generally accepted accounting and reporting principles (GAAP) on the website skicluster.kg.

Conclusion

The project to create the Ski Cluster is relevant from the point of view of establishing territorial principles of economic management. Despite the activity of sectoral ministries and departments, the interests of regions with the potential for development remain unclaimed.

The project to create a Ski Cluster is important in terms of the implementation of local initiatives for self-regulation and self-sufficiency. From an ideological point of view, the project allows the development of a policy of democratic independence of the local population through the development of entrepreneurship and the exclusion of dependent attitudes, claims to the central authorities, and also clearly separates the functions: investments from entrepreneurship - legal framework - from the state.

Technically, the project is of a focal nature and involves the construction of ski resorts in 5 potential sites of the Issyk-Kul region. With a conservative calculation, the capacity to receive about 300 thousand ski tourists with the sale of 2.0 million ski tickets has been laid down. The use of modern equipment in projects will help avoid conflicts in technical regulation while introducing international standards for the maintenance of ski facilities.

Economically the project is beneficial not only locally, but also globally. The project makes it possible to realize such country competitive advantages as the mountainous landscape of Kyrgyzstan, as well as the hospitality of its population. Taking into account the trends of globalization, the project allows creating points of irreversibility in the international division of labor through international tourism. The key projects of the Cluster, ski resorts, allow increasing the total consumer demand by 40% in the Issyk-Kul region. The implementation of cluster services is considered to a greater extent as an export product.

Business the nature of the project is focused on the implementation of services in a specific, but expensive segment of tourism. According to the above comparisons, there are 21 tourists per 1 ski tourist who consume other types of tourism products. The positioning of the country does not require significant capital investments, except for the re-qualification of the potential of mountainous Kyrgyzstan into a ski potential.

Social the criteria of the project are met in two directions: from the point of view of the environment it is harmless, for society it promises the creation of up to 20 thousand jobs, including an increase in employment in the field of industrial and social infrastructure. The effect of the project implementation is accompanied by the promotion of a healthy lifestyle.

institutional The nature of the project enhances the role of local government, will improve the efficiency of consular services, and has no negative effects on the customs and border zones of the country. Allows the development of sports, cultural and recreational institutions in society.

INfinancial aspect, the project was tested on the example of other existing ski resorts. The feasibility studies of the projects satisfy the experts from the countries of Austria and France.

Risks there is no harm or damage in the project. The burden of responsibility lies with entrepreneurs united in a self-regulatory organization.

The project brings a unifying effect, consolidates not only the financial, economic and material and technical resources of entrepreneurs, but also state and municipal authorities, together with sectoral ministries and departments, making their contribution to the administrative resource at different levels of project development.

Appendix #1: Working Group Rules

Regulation project working group "Ski cluster"

Section 1. General Provisions

This regulation governs the actions of the members of the Working Group "Ski Cluster" (hereinafter referred to as the "SCL") relating to the organization of the strategic planning and management system of the Ski Cluster. Strategic planning and management is the process of developing and implementing the strategic plan of the Ski Cluster. The strategic plan of the Ski Cluster is the mainnormative a document that defines the goals of the SLC for the planning period and ways to achieve them. The strategic plan contains plans for specific activities, the timing of their implementation and the names of responsible officials. The strategic plan covers, as a rule, a period of up to one year. Strategic planning and management consists of:

• in making decisions by the top management of the SLC regarding which clients, which tourism products and how they will be presented;
• in deciding what organizational (administrative) and technical measures should be taken in this regard;
• in the development and issuance of the necessary orders and orders to middle managers and direct executors;
• in continuous monitoring of the implementation of approved activities;
• in the timely detection of deviations from the adopted plan and its corresponding adjustment.

The effectiveness of the planning and management system lies in its ability to quickly develop and implement management decisions that ensure the commercial success of the organization, at acceptable administrative costs.

The efficiency of the system is achieved:

• optimization of the number of divisions and officials directly influencing the adoption of a strategic decision;
• expansion of means and methods of administrative (direct) and indirect management;
• optimization of the nomenclature and unification in form and content of the main management documentation.

This regulation is approved by the decision of the Conference of the participants of the SFC, by a qualified majority of the assembled plenipotentiaries. Amendments and additions to these regulations are made in the same way as they are adopted and come into force.

Section 2. Objectives of the Regulation

The purpose of these regulations is to ensure the functioning of an effective system of strategic planning and management of the Ski Cluster.

Section 3. Tasks of the regulation

The system of strategic planning and management is carried out in stages:

1. development and/or adjustment of the mission of the Ski Cluster;
2. collection and processing of information important for strategic planning;
3. analysis of internal and external factors in terms of strengths and weaknesses, threats and opportunities - the so-called SWOT analysis;
4. development of a list of strategic measures and actions, linking them by deadlines and divisions;
5. creation, if necessary, of a planning committee and adjustment of the organizational structure by amending the staffing table, regulations on divisions and job descriptions;
6. taking appropriate operational measures and adjusting the strategic plan if necessary.

Strategic planning and management is carried out on the basis of the reports of the Head of the SLC on the development of a strategic plan for the Ski Cluster. In the report, the Head of the SLC gives a preliminary assessment of the results achieved during the expiring planning period and indicates:

1. new planning period;
2. composition of the Planning Committee (hereinafter referred to as the “committee”);
3. date of commencement of the committee's work;
4. deadlines for submitting draft missions, preliminary and final lists of strategies, strategic plan;
5. the procedure for the report of the coordinator of strategic planning on the work of the committee;
6. the procedure for encouraging (remunerating) the members of the committee.

In the course of strategic planning, as a permanent element of strategic management, continuous monitoring of the implementation of the strategic plan in terms of time and substance is carried out.

Section 4. Functions of the regulation

The mission of the ski cluster is a system of views on the position and role of the tourism industry in the market and on the prospects for its development. The mission is an open appeal to investors, tourists and staff of the GLC. The mission usually includes the following sections:

1. clients of the tourism industry - tourists;
2. the products and services provided;
3. areas of activity and markets;
4. concerns about technology;
5. concerns about survival and growth;
6. philosophy of small and medium business growth;
7. management concept;
8. concern for the public face and the public environment;
9. concern for their employees on the part of the OTO.

The draft mission of the organization is signed by the Strategic Planning Coordinator and sent for approval to the Head of the GLC. If the Head of the GLC has not rejected the project within one month, the mission is considered approved.

Collection and processing of information. Complete and reliable information about the markets in which the Ski Cluster operates (external factors) and the tourism industry itself (internal factors) is the basis for effective planning and management. The collection and processing of information are carried out in the interests of strategic planning. The criteria for selecting such information stem from the mission. The procedure for collecting and processing information important for strategic planning and outgoing reporting forms is established by a special regulation.

Analysis of internal and external factors in terms of strengths, weaknesses, threats and opportunities (SWOT analysis) is the initial stage in the development of a strategic plan. The SWOT analysis stage consists in formulating goals for the planned period and determining the means to achieve them. The totality of the goal and the means to achieve it is called a strategic event (strategy). Strategic measures (strategies) are determined based on specific combinations of external and internal factors. Depending on the type of combination of factors, a strategic event (strategy) can be aimed at:

1. to eliminate external threats through the use of strengths - ST strategy;
2. realization of market opportunities by using the strengths of the Ski Cluster - CO strategy;
3. overcoming the weaknesses of the Ski Cluster to repel external threats - BT strategy;
4. overcoming the weaknesses of the Ski Cluster to realize market opportunities - VO strategy.

The initial document of the SWOT analysis stage is the reporting forms obtained during the collection and processing of information important for strategic planning. The outgoing document of the SWOT analysis stage is a preliminary list of strategic activities (strategies) indicating the name of the strategies, goals and underlying combination of factors. The preliminary list of strategic actions is signed by the strategic planning coordinator and sent for review to the Chairman.

Development of a list of strategic activities (strategies) is the strategic planning stage following the SWOT analysis stage. At this stage, there is an exclusion or combination of competing (incompatible) strategies, the final formulation of goals, the preliminary formulation of the tasks of strategic measures (strategies). The list contains the names of the strategies, their goals, objectives, OTO officials responsible for further detailing the strategies. The draft list of strategic activities (strategies) is signed by the strategic planning coordinator and sent for approval to the Head of the SLC. If the Project Manager has not rejected the project within one week of the submitted list, it is considered approved.

Detailing strategies down to specific activities and actions and linking them in time is the final stage of strategic planning. During this phase:

1. tasks of strategic measures (strategies) are specified;
2. the strategies themselves are detailed down to specific measures and individual actions;
3. strategic action plans (strategies) are linked in terms of time and executors.

For each strategic event (strategy), it is indicated

• official responsible for the event;
• a list of actions required for the implementation of the event;
• a due date that matches the due date of the last action.

For each action, there is

• responsible official;
• period of execution.

General requirements for strategic action plans in terms of form and content are established by the Planning Committee.

The source document for the refinement step is the list of strategies. The outgoing document is a strategic plan for the tourism industry in the context of strategic measures (strategies). The draft strategic plan is signed by the Strategic Planning Coordinator and submitted for approval to the Head of the SLC. If the Head of the SLC does not reject the project within one month of the submitted strategic plan, then it is considered approved.

Adjustment of the organizational structure in accordance with the approved strategic plan is its integral part and the first step towards its practical implementation. Adjustment of the organizational structure consists in making changes and additions to the staff list, regulations on divisions, job descriptions and other regulatory documents. Draft amendments and additions to the specified regulatory documents are developed by the administrative department. The head of the administrative department submits them for the approval of the Head. The draft changes and additions indicate all the strategic activities (strategies) that require these changes. The rejection of the submitted changes and additions means the exclusion from the strategic plan of the relevant strategic measures (strategies). If the submitted project is not approved within one month, it is considered rejected.

Monitoring the implementation of the strategic plan is a permanent element of strategic management and a necessary condition for the very existence of a strategic planning system. Control over the implementation of the strategic plan is carried out by the Head of the SLC, the Planning Committee, the coordinator of strategic planning, the administrative department and the SLC employees responsible for the implementation of activities. Timing control means daily comparison with the target dates of the reports of the responsible officials of the SLC on the implementation of measures and actions of the strategic plan. Control over the implementation of the strategic plan essentially means an analysis of the completed activities in terms of achieving the overall goals of the strategic event (strategy). The results of the analysis are documented in a conclusion (in the form of a memo) on the following issues:

1. Have the specific results envisaged by the plan been achieved?
2. Do the results contain shortcomings that could slow down the implementation of follow-up activities?
3. What specific follow-up activities will not be able to be completed on time due to these deficiencies?

Such a conclusion may be supplemented by proposals on the merits of the issue. The adoption of operational measures and the adjustment of the strategic plan are a necessary condition for the effectiveness of the strategic planning system. This element signifies proper strategic management. It includes:

1. analysis of the reasons for deviations in the implementation of the strategic plan;
2. taking prompt measures in order to carry out follow-up activities and actions in a timely manner;
3. adjustment of the strategic plan in accordance with changed circumstances, if the implementation of subsequent activities and actions is recognized as impossible or inappropriate.

Analysis of the causes of deviations within their competence is carried out by the officials responsible for control. The results of the analysis are documented in a memo. The memo should contain a conclusion on the reasons for the rejection, for example:

1. dishonest or incompetent actions;
2. lack of powers of individual officials;
3. lack of resources (financial, labor, administrative, technical, time) for structural units;
4. newly discovered external factors;
5. new external factors;
6. force majeure circumstances;
7. other.

The memo should also contain sentences, for example:

1. take disciplinary action;
2. make changes to curricula;
3. make personnel transfers;
4. provide the necessary resources on a temporary basis;
5. give an order to make adjustments to the organizational structure;
6. order to make adjustments to the strategic plan.

Adjustment of the strategic plan may include:

1. in the postponement of certain actions or events;
2. in the addition of new actions or measures or, on the contrary, the exclusion of actions or measures recognized as inappropriate;
3. in changing the formulation of tasks and goals of strategic measures (strategy);
4. in the development of a new strategy or the recognition of an approved strategy as inappropriate;
5. in recognizing the entire strategic plan as invalid.

The rejection by the Head of the SLC of projects of the mission of the organization, the list of strategic activities (strategies) or the strategic plan means the announcement of a new cycle of strategic planning. The strategic planning process is resumed on the basis of an earlier decision to develop a strategic plan. In this case, unless otherwise specified, the date of commencement of the work of the Planning Committee becomes the date of the resolution, and the timing of the stages of strategic planning is shifted accordingly. Approval of adjustments to the strategic plan occurs in the same manner as the strategic plan.

Section 5. Functions of structural divisions and duties of officials

Head of GLC:

1. Initiates and organizes the strategic planning process by signing a resolution on the development of a strategic plan;
2. Approves or rejects the mission of the GLC;
3. Approves the regulations for the collection and processing of information important for strategic planning;
4. Gets acquainted and gives instructions on adjusting the preliminary list of strategic measures (strategies);
5. Approves or rejects the list of strategic actions;
6. Approves or rejects the strategic plan;
7. Approves changes and additions to the staff list arising from the strategic plan, regulations on structural divisions, job descriptions and other regulatory documents;
8. Controls the timing and substance of the implementation of the strategic plan and for this purpose regularly hears reports from the head of the administrative department and the coordinator of strategic planning;
9. To the extent possible, takes operational measures necessary for the implementation of the strategic plan.
10. Approves, rejects and personally makes adjustments to the strategic plan.

Planning Committee:

1. Sets the schedule of its meetings;
2. Meets regularly for meetings;
3. Develops a draft mission of the GLK;
4. Determines the criteria for selecting statistical information and develops draft amendments and additions to the rules for collecting and processing information important for strategic planning;
5. Conducts SWOT analysis and develops a preliminary list of strategic activities (strategies);
6. Ranks strategic activities (strategies) in terms of importance and feasibility and develops a final list of strategic activities (strategies);
7. Hears those responsible for the development of strategic measures (strategies) and corrects the plans of strategic measures (strategies) submitted by them, links them in terms of deadlines and executors;
8. Hears the Strategic Planning Coordinator on the implementation of the strategic plan in terms of time and substance;
9. Analyzes the reasons for deviations in the implementation of the strategic plan, proposes prompt measures, approves the conclusion sent to the Head of the State Committee on the implementation of the strategic plan;
10. Develops adjustments to the strategic plan.

Strategic Planning Coordinator:

1. Submits proposals to the Head of the SLC regarding the personal composition of the strategic planning group;
2. Organizes the work of the Planning Committee, approves the schedule of its meetings, invites those responsible for the development of strategic measures (strategies) to the meetings of the committee, leads the meetings, signs the minutes of the meeting;
3. In the manner prescribed by the order on the development of a strategic plan, reports to the Head of the SLC on the results of the committee's work;
4. Brings to the attention of the members of the Planning Committee the orders and instructions of the Chairman;
5. Signs and sends for approval to the Head of the SLC the mission of the organization;
6. Submits for approval to the Head of the SLC a draft amendment and additions to the regulations for the collection and processing of information important for strategic planning;
7. Signs and sends foracquaintanceTo the head of the SLC a preliminary list of strategic measures (strategies);
8. Signs and sends tostatementTo the head of the SLC the final list of strategic measures (strategies);
9. Controls the implementation of the strategic plan in terms of time and substance and reports at the meetings of the strategic planning group;
10. Submits a draft conclusion on the implementation of the strategic plan for discussion by the strategic planning group, signs the results of the discussion and sends them to the Head of the SLC;
11. Signs and submits for approval by the Head of the SLC a draft adjustment of the strategic plan;
12. Stores in the “Strategic Planning and Management” File documents, including on magnetic media, relating to strategic management planning;
13. At the request of the Head of the SLC, his deputies, heads of structural divisions and those responsible for the implementation of specific activities, provides extracts from the strategic plan or plans for individual strategic activities (strategies) in thematic context, in the context of the timing of the implementation of specific activities or individual actions, in the context of those responsible for the implementation of activities or performance of actions.

Member of the Planning Committee:

1. Attends meetings of the strategic planning group;
2. Takes part in the discussion, expresses and argues his views, comments and suggestions;
3. If necessary, expresses a dissenting opinion and attaches it to the minutes of the meeting;
4. Independently, as part of a group or as a head of a subgroup, he analyzes, exercises control, develops documents on certain issues of strategic planning.

Administrative management:

1. Ensures the normal work of the strategic planning group in accordance with the schedule of its meetings;
2. Provides control over the fulfillment by officials of the SLC of the duties assigned by this regulation and the regulation for the collection and processing of information important for strategic planning;
3. Develops adjustments to the organizational structure for the management of the Ski Cluster arising from the strategic plan;
4. Controls the implementation of the strategic plan in time and submits the appropriate report to the Strategic Planning Coordinator;
5. Analyzes the reasons for deviations in the implementation of strategic measures, proposes (develops) operational measures to correct the situation.

Head of Administrative Department:

1. Organizes the work of the administrative department in order to implement the strategic plan of the Ski Cluster;
2. Submits for approval by the Head of the SLC projects, changes and additions to the staff list, regulations on divisions, job descriptions and other regulatory documents arising from the strategic plan;
3. The reports on the state of executive discipline include reports on the implementation of the strategic plan;
4. Controls the implementation of the strategic plan on the merits;
5.  Takes operational measures within its competence for the timely implementation of the strategic plan;
6. sends the conclusions on the implementation of the strategic plan and proposals to take additional operational measures to the Head of the SLC.

Responsible for the development of strategic measures (strategy)appointed from among the Deputy Heads of the SLC and the heads of structural divisions (deputy chief accountants) of the SLC.

Responsible for the development of a strategic action:

1. Gets acquainted with the results of the SWOT analysis;
2. Within the terms established by the order on the development of the strategic plan and the work schedule of the Planning Committee, determines by his subordinates the procedure and terms for the development of the draft plan;
3. Reports at the meeting of the committee, explains and argues the proposals;
4. If necessary, coordinates the developed plan with other structural divisions;
5. If necessary, expresses a dissenting opinion and attaches it to the minutes of the meeting.

Responsible for the implementation of a specific event (hereinafter referred to as "responsible for the event") is appointed from among the Deputy Heads of the SLC, heads of structural divisions and group leaders (leading specialists).Responsible for the event uses powers and bears responsibility within the limits of his job description in the SLC. He may also be granted additional powers on a temporary basis by his immediate supervisor. The person responsible for the event within the terms of the strategic plan independently determines by his subordinates the procedure for the implementation of his event. In relation to the employees of the parties to the SLC who are responsible for the execution of certain actions provided for by the event, the person responsible for the action enjoys the rights of the immediate superior. The person responsible for the action not later than the deadline reports on the performance (or reasons for non-performance) to the immediate superior (except for the Head) and to the office.

Responsible for the execution of an individual action (hereinafter referred to as the "executor") is appointed from among the employees of the SLC. The Contractor shall exercise authority and bear responsibility within the limits of his job description. He may also be granted additional powers on a temporary basis by his immediate supervisor. The contractor, no later than the deadline, reports on the performance (or reasons for non-performance) to the immediate superior responsible for the event within which its action is provided, and to the office. The structural unit contributes to the work of the strategic planning group within the limits of its functional duties.

Head of structural unit:

1. Facilitates the work of the Planning Committee within the limits of his official duties;
2. If possible, provides the Planning Committee with the resources of its division by providing analytical materials, conclusions, recommendations, technical means (on a temporary basis);
3. Provides an opportunity for his subordinates to freely implement the activities provided for by the strategic plan and perform actions for which they are responsible.

Section 6. Final Provisions

Strategic planning materials are kept in the Strategic Planning and Management File and include:

1. Copies of the order on the development of a strategic plan and other orders and instructions relating to issues of strategic planning and management;
2. Mission of the Ski Cluster;
3. Regulations for the collection and processing of information important for strategic planning;
4. List of strategic measures (strategies);
5. strategic plan;
6. Statistical information in the form prescribed by the regulations for the collection and processing of information important for strategic planning
7. Schedule of meetings of the Planning Committee;
8. Minutes of meetings of the Planning Committee;
9. Copies of memos, reports and reports of the strategic planning coordinator.

Strategic planning materials are kept by the strategic planning coordinator until needed.

Strategic planning materials contain information constituting official and commercial secrets. The protection of this information is achieved by limiting the access of officials to strategic planning documents.

Appendix #2: Table of SWOT analysis and outgoing activities

SWOT - Analysis

Appendix #3: Media plan

Appendix #4: Action plan

Appendix #5: Register of mining cluster projects

Note: the list of projects is not final, but agreed with the Plenipotentiary Representative of the Government of the Kyrgyz Republic in the Issyk-Kul region, the Mayor's Office of the city of Karakol and the Mountain Cluster Association, as well as representatives of investors in consultation with SamilPricewaterhouseCoopers.

Appendix #6: Road Map

On the implementation of the project "Mountain Ski Cluster"

The project consists of three stages:

1. Identification of the "Ski Cluster"
2. Implementation of the ski cluster
3. Implementation of the ski cluster
4. Identification of the "Ski Cluster"

At the first stage, the process of identifying the "Skiing Cluster" is underway, which includes:

1. Formulation of the concept and its designation in the NSDS and the Tourism Development Strategy;
2. Determination of points of interaction with other related sectors of the economy and Prioritization of ski tourism:
   1. among other tourism products,
   2. among other sectors of the economy.
3. Determination of the composition of enterprises and organizations included in the cluster.
4. Determination of the methodology for calculating the composition of the cost of a tourist product for taxation.
5. Institutionalization: creation of SROs from the economic entities included in the cluster.
6. Creation of tools: intersectoral balance, automated planning and programming system for all cluster feasibility studies.

Deadline: 3 months 2013

What is needed at this stage:

1. harmonization of 5 tourism development strategies with the NSDS.
2. Approval of the nomenclature of tourism products by Government Decree for further development of the cluster taxation methodology.
3. Prioritization of plans for the tourism industry as primary with related industries as secondary (transport, catering, housing and communal services, etc.).
4. Implementation of the ski cluster

At the second the stage is the introduction of the ski cluster by linking to the area, i.e. to the Issyk-Kul region.

The cluster is fixed: the list of subprojects required for the implementation of the cluster is determined:

• By industry
• On a territorial basis

A set of tools is being created: intersectoral-territorial balance - an automated system for optimizing the RPS (location of productive forces) and dual tasks.

What is needed at this stage:

1. Transfer of project implementation departments (PIU) for infrastructure projects to Karakol for direct execution, taking into account local needs (transport, ecology, etc.).
2. To study the issue of tax administration on the ground in order to remove regional problems and exclude the "ventilation" of funds through the central republican budget.
3. Include in the law on the budget for 2014 the issue of financing the development of the master plan for the Issyk-Kul region.

At this stage, output documents are being developed:

1. Master plan for the development of the region, for which:
2. Territorial and sectoral balances of economic relations with other regions are compiled;
3. Revenue items to the local budget are determined, for which:
4. A register of investment projects of focal, local, global plans is being formed.

A working group has been set up to start developing the registry.

Deadline: 6 months 2013-2014

Implementation of the Ski Cluster

Third the stage has been started, but will be implemented after the implementation of the previous two stages.

Deadline: 12 months 2014-2015