Structure

The present management structure of the area incorporates a number of weaknesses that should be mitigated through a restructuring. These weaknesses are as follows:

  • The Structure is 100% Government with no private sector stakeholder participation.
  • At present the capital available for the company is extremely limited.
  • The administration of the project area as well as the development and planning of the area are undertaken by one company although those functions are highly different in respect of expertise and management.
  • The name of the Company is not conducive for attracting investors and it is not in line with the most suitable name of the project area from a marketing and promotion point of view.

The Consultants suggest the following new structure based on international management principles. It is proposed that two companies should be established. One company to be in charge of the development, investment creation, planning and promotion of the resort and another to deal with all the day-to-day management issues. In order to fit this new structure into the present structure the following overall structure is proposed:

Name is indicative/proposal

Dragon Bay Development Company

Under the existing WBTDC company the Dragon Bay Development Company (DBDC) should be formed. The WBTDC should transfer land into the DBDC either in a physical form or in a financial form. The DBDC company will have the following functions:

  • The Establishment of Joint Ventures
  • Planning and Overall Control of the Project Area Development
  • Marketing and Promotion of Dragon Bay
  • Infrastructure

The company should be controlled by a Board chaired by the WTBTDC. Board Members would, besides the chairperson, include: the Executive Director of DBDC, the Executive Director of DBMC, and representatives of Panjia and Xueyan towns. In order to ensure private stakeholder influence, it is proposed that the chairperson of a proposed tourism association and the chairperson of a proposed village tourism association are members of the board without voting rights.

A marketing and promotion committee should be nominated chaired by the Director of Marketing and Promotion of DBDC and with the participation of: 2 members of the Dragon Bay Tourism Association, the Pangu Centre, and the Village Tourism Association. This committee will design corporate marketing and promotion plans for the Dragon Bay Tourism Area and will define sources of finance for the marketing programmes. The aim is a shared participation with 50% from the DBDC and 50% from the private stakeholders.

The WTBTDC has at present a small share capital of ¡Í10 million, as such it is under-capitalised. In the longer term financial sources would be from:

  • Sale of land to developers.
  • A land development fee to be paid to DBDC for the provision of infrastructure and land development.
  • A land service fee to be paid by individual project companies for infrastructure service and maintenance of public areas to be paid to DBMC.
  • Entrance fees and parking fees to be paid by visitors at entry points.
  • Sharing of promotion and marketing costs.

The DBDC does not have the financial resources to undertake the development of the organisational structure and to initiate the further planning and initial development steps required. It is suggested that land is transferred to the WTBTDC and that this land is used as security for bank loans or as partnership investment. It is very important the DBDC has the financial and human resource strength and skills to make the correct arrangements with investors. The present situation is considered not to be sustainable for moving the project ahead according to the project intension.

At inception DBDC staffing should be limited to the company executive director, and a financial director, development, marketing and promotion directors should be identified and employed in the short term. Staffing in the longer run should be developed according to the speed of the project development. It is not necessary that the DBDC employs a large number of staff in a marketing and promotion department. Instead it is recommended that the staffing should be very limited to three to five persons covering marketing, promotion and public relations and that the work should mainly be concentrated on public relations.

 
 
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