Mangshi Coffee Town Project

Project Name

芒市咖啡小镇项目

Mangshi Coffee Town Project

Project Industry

Tourism and Culture Industry

Project Site

Mangshi City Industrial Park

Project Overview

The project is positioned as the country's only and the world's leading whole-industry-chain characteristic town with coffee as the mainstay, serving as the "wind vane of China's coffee industry" and building the world's first coffee culture town. Relying on Mangshi's solid foundation in the coffee industry, it will focus on attracting foreign investment enterprises to speed up the development of the coffee town with the construction concept of a characteristic town.

Project Construction Content

According to the construction plan of "Two Rings and Four Areas", the project will mainly build an industrial linkage ring, a cultural tourism ring, a comprehensive town service area, a core industrial service area, a coffee processing and logistics area, and a coffee cultural tourism area. It is planned to form an overall spatial pattern of "Two Rings and Four Areas".

Two Rings: the industrial linkage ring that connects the core industrial service area and the coffee cultural tourism area; the cultural tourism ring relying on the ecological landscape area

Four Areas: the comprehensive town service area, the core industrial service area, the coffee processing and logistics area, and the coffee cultural tourism area

Comprehensive town service area: providing business support and public service support for the town, and serving as the living room of the town

Core industrial service area: providing industrial processing, industrial incubation, creative R&D, training and operation, and other functions

Coffee processing and logistics area: providing coffee intensive processing and logistics in the coffee town

Coffee cultural tourism area: providing coffee culture experience, coffee healthcare, coffee recreation, waterfront entertainment, flower sea sightseeing, and other functions

Land for the project: the planning area is 4,684 mu, the construction land area is 2,513 mu, and the construction area is 690,000 m².

Supporting Conditions

Industrial basis: The unique natural conditions of Dehong Prefecture have created the extraordinary quality of coffea arabica. Its rich aroma and unique flavor have made it rated as one of the best quality coffees in the world by Nestle, Starbucks, and other international famous coffee makers.

Raw material guarantees: The coffee planting area in Dehong Prefecture totaled 273,600 mu in 2019, and the existing coffee planting area is 113,000 mu. Planations are mainly distributed in Yingjiang County and Mangshi City, with a production area of 110,000 mu, a fresh coffee output of 65,000 tons, and an agricultural output value of RMB 130 million, covering 17,800 households and 66,200 people.

Tourism resources: Mangshi City features abundant natural resources, beautiful natural landscapes and rich ethnic culture, which give birth to peculiar tourism resources. It houses 11 scenic spots, including Peacock Valley, Shubao Pagoda, Xianfo Cave, and Menghuan Grand Golden Pagoda. In 2019, Mangshi City received more than 10 million domestic and foreign tourists, realizing a total tourism revenue of RMB 21.19 billion.

Climate: There are no days in winter when the monthly average temperature is lower than 10°C in Mangshi City, and the coldest monthly average temperature is above 12°C. Although summer is long, it is not hot. The average temperature of the hottest month is 24.1°C, which is more than 4°C lower than that of famous tourist cities such as Hangzhou and Guilin. The dry and wet seasons are distinct. The rainfall in the winter half-year only accounts for 11% of the annual rainfall. It is sunny and warm with little rain in winter, while it is rainy in summer.

Transportation: Mangshi City is located at the intersection of ASEAN Economic Circle, South Asia Economic Circle, and Greater China Economic Zone. It is the entry-exit port channel of the "herringbone" China-Myanmar Economic Corridor. It is the only area that can effectively cover and gather the laborers, raw materials, markets, and other resources of various counties and cities in Dehong Prefecture, surrounding counties and cities, and the Myanmar region.

Aviation: The Dehong Mangshi Airport is accessible to 14 domestic and foreign cities including Beijing, Shanghai, Guangzhou, Chongqing, Xi'an, and Kunming in China, and Yangon and Mandalay in Myanmar;

Highway: Hangzhou-Ruili Expressway, Mangshi-Ruili Highway, National Highway G320

Railway: The west line of the Trans-Asian Railway (Dali-Ruili section) is expected to open to traffic in 2023.

Investment Estimate and Fund Raising

Investment Estimate: The total investment of the project is estimated to be RMB 2.26 billion, including RMB 1.51 billion of engineering cost, RMB 580 million of other engineering construction costs, and RMB 160 million of reserve funds

Fund Raising: Bank loans, Self-raised by enterprises, etc.

Preferential Policies Applicable

Measures of Dehong Autonomous Prefecture to Support Cultural and Tourism Industry to Accelerate Transformation and Development after the COVID-19 (Excerpt)

I. Lower the operating costs

(V) Tax exemption and reduction for the newly-built motels, hotels, scenic spots projects from January 1, 2020 to December 31, 2022, the main business tax collected within three years after their completion and operation will be fully rewarded and compensated.

III. Support the upgrading of cultural and tourism products

(IX) Support the construction of major cultural and tourism projects. In accordance with the requirements of "internationalized, high-end, characteristic and intelligent", first-class international brands should be introduced to build a cultural and tourism complex.

(X) Support the upgrading of cultural and tourism products. Emphasis will be put on the upgrading of high grade-A tourist attractions, high star-level hotels, hillside hotels, boutique restaurants, automobile camps, guesthouses and inns, agritainment, and other brands. (XI) Introduce differentiated land-use policies. The land use of cultural and tourism projects should be included in the land and space planning of Dehong Autonomous Prefecture. In terms of the land use of cultural and tourism projects, priority should be given to the transfer of farmland, other than permanent basic farmland, to construction land, and the approval of land use should be accelerated. The construction of cultural and tourism projects will be supported in the form of dotted lands. It is encouraged to supply the land use of cultural and tourism projects by means of long-term lease, transfer after lease, and combination of lease and transfer.

Opinions of Mangshi City on Further Promoting Investment Promotion clearly states that:

The base price of land leasing for newly introduced plateau characteristic agriculture, tourism, and other modern service projects with a total investment of more than RMB 50 million will be determined by the sum of land acquisition cost, land development cost in the early stage and relevant fees that should be collected according to regulations.

Market Prediction (Analysis)

Coffee is one of the top three drinks in the world, with a vast market space. With the further improvement of the transportation condition in Mangshi City, and driven by the construction of the Great West Yunnan Tourist Ring, the tourism industry has a promising future.

Coffee tops the list of the world's three major drinks. It is the second raw-material product in the world after oil and one of the largest trade agricultural products. At present, the number of consumers of coffee in the world has exceeded 1.5 billion, and the coffee market has reached a scale of about RMB 12 trillion.

With the improvement of people's living standards and the increase in their awareness of coffee culture, together with the huge demographic dividend, it is possible to stimulate domestic coffee consumption.  It is estimated that the scale of China's coffee market will reach RMB 217.1 billion in 2025.

Profit Model and Preliminary Benefit Analysis

Coffee sales and tourism revenue will bring about annual revenue of about RMB 12 billion, with an annual tax payment of RMB 51.97 million.

Risk Analysis

Measures should be taken to enhance the ability to resist risks, including strengthening market research and analysis and international management, improve the service management level, reduce the operating cost, increase the operating efficiency, standardize the corporate governance, prepare and improve management rules and regulations, promote the overall management of target cost, and intensify cost control.

Cooperation Pattern

Cooperation, joint venture, and sole proprietorship, etc.

Contact Information

Contact Authority: Management Committee of Mangshi City Industrial Park

Contact Person: Peng Shuangyan

Tel.: 13988228783