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Iceland resort deal might see progress

By Mei Jia | China Daily | Updated: 2013-03-27 07:41

After waiting for nearly two years, the chairman of Beijing-based Zhongkun Investment Group, Huang Nubo, said he is looking forward to a breakthrough in April on his deal to buy land in Iceland, while admitting that he might abandon the deal by May if it stalls.

"There will be very likely a favorable turning point on the deal in April," Huang said on Tuesday, referring to his planned purchase of 300 sq km of land in the country.

But he said he isn't willing to wait indefinitely for an approval.

"If I get nothing clear and final from Iceland's government by the end of May, I won't be interested in pursuing the project," Huang said. "I'll let it go."

Huang announced the plan in August 2011 - after an invitation from local landowners - for a high-end resort with a hotel and golf course. He plans to invest about $200 million.

The plan was rejected by Iceland's government in November 2011, but was resumed in May 2012, with Huang only allowed to rent the land.

Along the way, the plan has met some resistance.

On Saturday, The New York Times ran a story, with quotes by Icelandic ministers questioning the project.

Even though Huang's business plan was deemed to be "sensible" and "convincing", the land - in the country's northeast - is said to be "a place so isolated that you can almost hear ghosts dancing in the snow".

The report also questioned Huang's intentions behind the project, suggesting that the businessman wants to secure "a strategic foothold" in the country.

Huang shrugged off the questions raised by the story. "They're demonizing a simple business move," he said.

"I made the decision based on a business forecast, because I believe in Iceland's development. I'm a businessman. If the area didn't have potential I wouldn't be willing to invest."

Huang added this is not the first time that he and his team have turned barren and isolated stretches of land into attractive resorts, such as his project in a southern area of the Xinjiang Uygur autonomous region, which has become a successful business template for the group.

He added that his planned investments in Nordic countries, including Denmark, will also focus on remote areas.

Wei Xiaoan, an expert in tourism economics with the China Tourism Academy, said that the questions raised by the report show the difference between how Chinese and American businessmen view potential market opportunities.

"Iceland has first-class resources, snowy mountains, Arctic views and hot springs," Wei said. "If one out of 10,000 Chinese people visits the Icelandic resort, that will be enough."

Huang is also determined to project a more international image of Chinese businessmen.

The 57-year-old Huang just returned from a trip to New York on Saturday, in which he joined the Explorers Club's annual ball. Huang was recommended to be a member of the 108-year-old club, which has members such as Neil Armstrong and James Cameron, for his exploration of the world's peaks and the two poles, along with his philanthropic activities.

"I feel proud to be part of the club as a Chinese businessman."

Jonathan Conrad, who nominated Huang, said, "he could positively impact The Explorers Club membership representation in China."

"The club's membership standards are very strict, all members must meet the same criteria," said Steven Schwankert, the club's East and South Asia Chapter Chair.

"I hope that Huang will bring greater recognition of The Explorers Club in China," Schwankert added. "It will likely take a Chinese figure such as Huang to generate more interest."

To Huang, his membership of the prestigious club also represents the Chinese businessmen's willingness to walk closer, and in tune, with the world.

"In respect to creativity and taking responsibility, Chinese businessmen are playing their global roles like the others," Huang said.

meijia@chinadaily.com.cn

 

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