Professional Documents
Culture Documents
Contents
1. Summary of Feasibility
3. Market Analysis
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3
4
4. Product Description
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5. Risk Analysis
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The Eco-Lodge must include a conference facility which could seat possibly 280
guests per day: a 20% usage here is anticipated (20,440 guest days per year) at
R100 per day = minimum conferencing income of R2,044,000.00 per annum
Catering income to the Eco-Lodge would be R102,200.00 per year, which is a rental
of 10% of turnover on an estimated turnover of R1,022,000.00 which would accrue
from the restaurant, the bar and teas, to the catering concessionaire.
Accommodation income of a 70% occupancy of 20 chalets at R500 per chalet per
day which gives an accommodation income of R2, 555, 000.00 per annum.
The above would result in an annual income of R4, 701, 220.00. Operating expenses are
calculated at R1, 696,000.00, which would leave a surplus before debt servicing of
R3,005,000.00.
3. MARKET ANALYSIS
3.1
Nelson Mandela Bay played host to 405,600 foreign tourists in 2006, and 2,015,710
domestic tourists. These groups spent R2, 3 billion each, giving a total value to the
NM Bay economy of around R4,6 billion (pg 25).
It is estimated that these numbers will have increased to the following figures by
2010: foreign tourists, 488,000 spending R5, 3 bilionl; domestic tourists, 2,270,000
spending R3, 8 billion. Total tourism spending: R9, 1 billion (pg 25).
These figures suggest a rapidly growing tourism market, particularly in numbers
and spend of foreign tourists.
It has been estimated that an additional 233 hotel / resort rooms are needed in the
NM Bay area by 2010, and a further 487 by 2015 (these numbers are over and
above new building projects underway).
3.2
These growth forecasts suggest a healthy and growing industry, requiring new
entries into the market in the short term. Plainly, new entries have to satisfy the
requirements of their target market in order to be successful.
Hotel
Breakfast
included
Phone
Significant
Facts
Number
of
Rooms
Beach Hotel
Sea-facing: R995
Not s-f: R810
No R90
extra
En-suite rooms
58
Brookes Hill
R595
Yes
68
Chapman Manor
City Lodge
Courtyard
R520
R630
Room: R870
Suite: R995
Yes
No R65
No R78
extra
Edward Hotel
Formula One
R530
R229
Yes
Holiday Inn
R699
Humewood Hotel
Kelway
R479.10
4 star R820,
3 star R660
No R83
extra
Yes
Yes
Suites 2 bed, 1
bed, bachelor
Incl bathroom,
Kitchenette /
kitchen
En-suite rooms
En-suite rooms
Suites / rooms.
Suites: bathroom +
living room
En-suite rooms
Bathroom in the
room
En-suite rooms
En-suite rooms
En-suite rooms
67
65
Yes
En-suite rooms
12
R699
En-suite rooms
83
Pine Lodge
R555
Chalets
70
R895
No R78
extra
No R69
extra
No R120
extra
En-suite rooms,
some suites
98
Road Lodge
R338.35
R650
Bathroom in the
room
En-suite rooms
92
Summerstrand Hotel
No R34
extra
No R80
extra
Windermere Hotel
Willows
R1300
Chalets: R270 R730
Cottages: R495 R850
Rondawels: R205 R850
Yes
En-suite rooms
Chalets, Cottages,
Rondawels
15
50
Total
Average
Occupancy
Backpackers Accommodation
24
147
80
97
88
280
237
1630
70%
Lungile Lodge
(Humewood)
Dorm R70 pp
Double R250
No
PE Backpackers
(Central)
Dorm R55
Double R150
Twin R150
Yes
Jikeleza Lodge
(Humewood)
Camp R40pp
Dorm R65 70pp
Double R180-200 p/rm
Dorm R75
Private:
Single R180
PP sharing R90
Camp R45pp
Dorms R75pp
Double from R200 p/rm
Twin from R200 p/rm
From R150pp
Dorm (own bedding) R40R60 per person.
1 Cora Terrace
(Central)
Tanaqua Lodge
(Humewood)
Rooftops
Willows
Self-catering
The above is a reasonably thorough analysis of the hotel and backpacker market. The
Secondary Market (see Pg 24 of Annexure A) has not been included, as they are not, with
respect, competitive establishments.
3.3
What do we have to do to get to a 60% room occupancy of 20 rooms for the Motherwell EcoLodge, and to meet our goals of convention numbers and catering usage?
3.3.1 The Four Key Markets for the Motherwell Eco-Lodge
A.
The support from the Motherwell Community will be encouraged if the Eco-Lodge
runs a publicised and efficient Creative Tourism programme, in which guests are
encouraged to stay at the Lodge, and to involve themselves in creative tourism
programmes co-designed by the Lodge, the Municipalitys department of
Economic Development and the local community (see next section).
B.
Conferencing Business
The Coega IDZ will create considerable opportunities for conferencing, training,
board meetings, breakaways, retreats, etc, etc. This will be core-business for the
proposed Eco-Lodge, and as such a strategy must be developed to catch our
share of this business (see next section).
As with the previous note on conferencing, the executives domiciled in the Coega
IDZ will be making use of restaurants, bars and recreation facilities generally
the Eco-Lodge must promote itself to get a significant section of this business
(see next section).
Accommodation
The ongoing development of the IDZ should see a steady stream of highly skilled
workers (engineers, machinists, finance people, etc.) coming to the IDZ for short
and long stays while establishing production, financial and general business
systems in the plants that will be built. The small chalet, which has a lounge, a
bedroom, a kitchenette, a workstation with an ADSL connection, and a private
bathroom (all of this with a view and with access to a restaurant, a bar, a riverfront and conference facilities) will be the ideal unit to accommodate such
executives. The suggested rate of R500.00 per night, is very reasonable by hotel
standards, and there is no reason why a good chunk of this business should not
be available to the Eco-Lodge. This should be the main target market for the
accommodation services of the Eco-Lodge.
[While the IDZ is the obvious target market, it must be remembered that nearby
Markman Township is also a thriving industrial zone, with considerable
requirements for conferencing, catering and accommodation, and must be
worked intensively in this regard also].
C.
D.
4. PRODUCT DESCRIPTION
4.1
An Eco-Lodge main building, with conference facilities, restaurant, bar, deck with
sweeping views, and boma and entertainment areas.
20 chalets, 10 of which are two bedroom (max 8 sleepers) and 10 one bedroom
(max 4 sleepers). They are approximately 70 m and 45m in size.
A Boardwalk down the steep cliff to a boathouse and recreation facilities on the
river.
Parking, Guardhouses, etc., as required.
The estimated cost of building this is R42, 560, 000.00 (see Annexure F).
However, the Feasibility Study suggests that considerable savings will have to be made,
and a maximum spend of R20 million is recommended.
4.2
Energy Supply
Identify the range of different forms of energy for various needs and consider the
viability of environmentally sustainable off-grid options: solar and wind. Explore
means to conserve energy by insulating the facility, using of low energy appliances
(energy efficient lights)
Water Supply
Alternative water supply methods like rainwater harvesting and ways of conserving
water can be considered
Sanitation
Different sanitation options and the recycling of sewage for other uses and
environmental benefits can be considered. Examples: Enviro-loo that uses little
water and which can convert sewage into a substance that can be composted and
used to improve the quality of soil and in vegetable gardens. Biogas systems that
produce gas that can be used for domestic cooking, heating and lighting.
Wastewater management
Wastewater management is concerned with channeling, treating and even storing
used household water in a way that does not damage services, facilities and the
environment. Ways in which to recycle wastewater, how treated wastewater can be
used for irrigation, fertilizer for gardens and even agriculture can be considered
4.3
STAFFING REQUIREMENTS
It is estimated that the following would be the staffing requirements of the Eco-Lodge:
1 General Manager
1 Marketing Officer
2 Front Office Personnel
1 Back Office Person (Bookkeeper)
1 Driver / Gardener
6 Housekeepers
1 Maintenance Officer
Catering staff, and security staff, are not included as these services will be contracted
out.
4.4
SET-UP TIMEFRAMES
Activity
- to committee
Feasibility Report and
Business Plan
- to council
Consolidation of Erf and Rezoning
Decision on Lease or Sale of Site
Proposal Call for Developers
Developer Appointed
Contract
Drafted
Agreed
Architect Briefed
Plans Drafted
Professional Team Assembled
Bill of Quantities
Building Tender
Builder Appointed
Contractual Period
Building Complete
Furnishings, Pavings, Plantings, etc.
Hotel Opens
Key Staff Appointed
Balance of Staff Appointed
Staff Training
Marketing Programme
4.5
4.5.1
Magazines
Architectural and Art (Local
and International)
Home Magazines
Outdoors (Getaway)
Financial Mail, etc
Popular (YOU, etc)
Ladies (Fairlady, etc)
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Train staff in how to contact these vital In the wisdom of the Marketing Manager, When complex effectively
people.
invite these parties personally to inspect complete, repeat invitation.
progress on site, as and when
developments occur.
Opening
Update website daily with
news items
Daily emails and mails re
opening, events etc.
Regular personal contact - attempt to get Personal Contact - attempt to As with TV.
2 x weekly stories.
get daily story
As with Radio
As with Radio.
As with TV.
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4.5.2
CREATIVE TOURISM
As we have noted in section 6.4 of the Feasibility Study, Creative Tourism is a fastgrowing part of the tourism market, and one which relates directly to the Motherwell
Eco-Lodge. Creative Tourism provides opportunities to tourists to actively engage in
local community activities. We noted that in Nelson, New Zealand, a network of
businesses has been established which offers tourists creative experiences: bone
carving, Maori language classes, weaving, felting, woodwork and cooking.
Similar opportunities need to be created by the Motherwell Eco-Lodge, and tutors
from within the Motherwell community need to be identified; suitable premises require
identification, and the tutors trained to work in these premises to offer a fascinating
and challenging experience for a cultural tourist, to involve himself/herself in.
Such activities could include:
o
o
o
o
o
o
o
It is not envisaged that these lessons would happen at the Eco-Lodge, but that
community tutors, in suitable premises, would give visitors lessons in these types of
activities. These visitors would stay at the Eco-Lodge, which would actively promote
and support the above programme of activities.
The Eco-Lodge will provide a valuable facility for the Motherwell community, and, like
all such facilities, it requires promotion and marketing to ensure that target markets
are here:
o
o
o
Regular emails and (where email does not apply) snail mails, supplemented
by personal visits and phone calls, must reach the target communities
(Motherwell Businesses, the local middle-class, schools and sport groups
etc.) which emphasize the excellent and inexpensive services this Eco-Lodge
has to offer particularly emphasizing the backpackers facilities.
Special community Saturday and Sunday lunches, assisted by watersports
and kiddies playgrounds, etc., must be promoted.
Conferencing facilities must be promoted for weddings and community
functions, and for use by businesses, etc.
4.5.3
Good publicity (particularly in the large number of nature publications, from the
very successful Getaway magazine and 50/50 TV programme, to the specialist
publications like African Birds and Birding, etc.).
Personal promotion into the Eco-industry there are many conservation bodies;
and consultancies performing EIAs etc. They need to be contacted and kept
personally and regularly informed.
By running an outstanding Eco-Lodge, good word-of-mouth advertising will follow
naturally.
CONCLUSION
It is our belief that the above, proposed marketing strategy one half a general
marketing programme, the other half being aimed at the four key markets of the
Motherwell Eco-Lodge, will be sufficient, if properly and energetically run, to ensure a
high enough level of support for the Eco-Lodge to meet the Aims of this Business
Plan (see Section 2 above).
5. RISK ANALYSIS
This project has considerable risk. This includes:
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6. CONCLUSIONS
The Feasibility Study has, in considerable detail, outlined the conditions under which this
project is financially viable (section 12.3). We believe these conditions can be met, and
viability is genuinely possible.
The way forward is thus:
The NM Bay Municipality must identify and rezone the proposed site, large enough to
accommodate the proposed lodge, and with additional land for expansion.
The NM Bay Municipality must decide on whether it will sell or lease the site.
The site must then be sold or leased through a suitable public process, with
conditions as are felt necessary.
The NM Bay Municipality should also:
o
o
o
o
o
Clear up the entrance to the site, which is today filled with rubble
Construct a suitable link road from Motherwell to the entrance to the site.
Put up suitable signage, to guide guests to the site from all over Motherwell
and the Addo Road.
Perform an EIA on the proposed development.
Bring the necessary bulk services to the boundary of the site.
Thereafter the developer can proceed, and, we believe, can succeed. Timeframes are
in section 4.4.
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