1.

Business Description
The Lodge
Located between the beautiful sunshine coast and Grahamstown, in a beautiful reserve, where a variety of endangered, threatened and protected species can live freely without ant predators. The reserve is a home for various antelope like, Oribi, Black wildebeest, Sable, Nyala, Kudu, Reedbuck and Bontebock. Furthermore, the Zebra, giraffe, duiker and red hartebeest also help keep the natural balance of the vegetation. Many other animals can be found in Khusela private game reserve. Khusela lodge was an existing four star lodge, with a high service quality. Due to the fact that the future investors want to change some things within the lodge, there has been chosen to degrade the lodge to a three star lodge, so that the expectation of the guest not exceed the service offered. The lodge includes four chalets, a villa and a farmstead. All furnishing and vehicles are included. The farmstead is used for some employees, and in the construction of the farmstead a souvenir shop will be made. The chalets and the villa have a warm atmosphere through the warm colors like brown, yellow, orange and red. The thatched villa is designed to blend with the surrounding bush and is positioned to take full advantage of the arc of the sun. The villa is made from stone from the surrounded nature. There is a terrace/balcony around the villa, connected with every bedroom. Furthermore, a swimming pool is positioned on the terrace downstairs, with a beautiful view over the reserve. The kitchen, restaurant, bar and lounge is situated on the ground floor of the villa.

The chalets are built under thatch and surrounded with dark wooden decks. All chalets have a private Jacuzzi and a small living room.

Furthermore, a spa treatment room will be build in the study room/library of the villa. The Lodge comes with a full liquor license and all required documents and will be sold as a 4 Star TGCSA rated Guest Lodge, also registered as a AA Travel member, accredited with Cape Country Routes and listed in the Greenwood Guide.

The Name
Khusela means secure in Zulu. This is the perfect name for a lodge like Khusela. Guests can do activities in the nature safely, without dangerous predators on the reserve. Where do people always feel safe and secure, that is at home. Khusela lodge want to create an warm atmosphere, so that guests feel home away from home. Guests have to relax and experience the beautiful nature of South Africa.

The Location
Khusela is located in the Eastern Cape of South Africa. The Eastern Cape lies on the South Eastern seaboard of South Africa and has the highest number of biomes and vegetation types. In this part of South Africa extraordinary mammals, plants, birds, Amphibians and reptiles can be found. The lodge is located in a beautiful game reserve, were guests can enjoy the nature by a bushwalk or a hike. Khusela is only 15 minutes from the Sunshine Coast, where guests can enjoy sandy beaches and dunes. Furthermore, the reserve is located in the middle of the Garden Route, which is a very popular route for tourists. The Eastern Cape is one of the most popular tourism destinations, due to the variety of animals and plant, as well as the unique sandy beaches.

Marketing plan
See jeroen

Facilities
Construction of the farmstead The reception is located at the construction of the farmstead , this is at the entrance of the reserve, so that the reception is immediately visible when guests arrive. Next to the reception a souvenirs shop will be build. Villa The villa is designed to blend with the surrounding bush and is positioned to take full advantage of the arc of the sun. Surrounded by a fenced garden and built around a central open courtyard, the villa nestles between Middle Ridge and Olive Ridge providing amazing views over the gorge. At the ground floor of the villa the restaurant, kitchen, lounge and bar is positioned. A big terrace is bordered to the restaurant and lounge. The 10 x 3 mtr infinity edge pool proves to be a great spot for raptor watching, as well as providing views over the veldt, dam and gorge. There is also a small living room on this floor where guests can do games, relax near the open log fire. Rooms of the villa All rooms have a private sundeck, where a balcony dinner can be arranged. The villa has four different rooms, the master bedroom, the luxury bedroom, the double room and the twin room. All rooms have a super- king sized bed, air- conditioning and under floor heating. The master bedroom and luxury room have a bath and a separate shower. The double room and twin room have a very big shower. Swimming towels and bathrobes together with complimentary toiletries are provided in all bedrooms. All bedrooms have satellite TV and streamed music. The rooms have a mini bar and coffee and thee is provided as well. The rooms have wardrobes for two persons, a table with mirror and two nachtkastjes with a lamp. A table with two chairs can be found on the balcony, to sit and relax outside. Chalets The chalets have a private sundeck as well with a Jacuzzi, table and chairs. All chalets have a open log fire and a small sitting room. The mini bar, satellite tv, streamed music and coffee and thee table can be found there as well. The chalets for two have a separated bathroom with a bath with view on the reserve and a shower, toilet and wasbak. The rooms have a super- king sized bed, a wardrobe, two nachtkastjes with a lamp and a table with mirror.

The chalets for four persons have the same design as the two person chalets, but have two rooms and two separated bathrooms. One bathroom includes a bath and shower, the other bathroom only a shower. Spa treatment room The spa treatment room is designed with fresh colors, like light$ green, yellow and orange. The room has two massage tables, a relaxing treatment chair for manicure and pedicure. A white closet and table can be found in the room as well, for treatment products etc. The room is simple, but functional. Facilities Car park available Fireplace Music available in room Outdoor fireplace Satellite TV in the rooms Mountain biking Rooms service Horseback riding Bar service Living room available to guests Outdoor swimming pool SPA treatments available Jacuzzi Child friendly Facilities for disabled Massage treatments Green surrounding No hunting Air-conditioning in rooms Coffee & thee facilities in room Telephone in rooms Hair dryer in the room Mini bar in rooms Nature reserve Restaurant Quads available Dry cleaning and Laundry service available Picknick area Wi-Fi Souvenirs shop Braai facilities Separate bath and shower Hiking

2. Strategic plan
2.1 Mission, Vision, Objectives
Mission Be a unique lodge that offers a unique experience, while keeping the eco-system and sustainability in mind. Khusela lodge combines the comforts of home living with luxury and provide the opportunity to enjoy the nature. Khusela treats all employees equally and good, which makes the working atmosphere unique, so that all employees strive to offer the best service for a normal price. The mission above is the key to Khuselas success. It meets the goals, behaviors and dreams of the lodge, as well as the current state and the company culture. Khuselas aim is to be a sustainable game lodge that keeps an eye on the environment and the eco-system, so that the impact of the lodge is as less as possible. There are no predators living in Khusela Game Lodge, which is one of the advantages of the lodge, because guests have the opportunity to enjoy the nature by foot. Vision Khusela Lodge would like to achieve: To become a well known, sustainable luxury lodge where economic, environmental and community benefits are maximized. The vision clearly shows the ultimate goal of the lodge. All staff will strive to achieve Khuselas final goal. Objectives

2.2 External Analysis

PESTEL Political South Africa has different legislations than other countries, also in terms of labor legislations. Laws for hiring, firing and maintaining staff in the hospitality sectors differs a lot from other countries, due to the apartheid. Nowadays the African Nation Congress (ANC) is supporting the trade unions, which is positive, because The Trade Union and the CCMA are organizations that are developed in favor of employees and all processes concerning hiring, firing and difficulties employees can have with employers. When the government supports these organizations, there is a big chance that the employment rate will go up. Violent crime is also a big issue within South Africa, the main reason for this

is a lack of education and unemployment. Khusela wants to take these issues in consideration, by employing local residents for management functions as well for other functions. This could decrease the unemployment rate and violent crime rate in that area. Khusela will take the Broad-based Black Economic Empowerment (BBBEE) organization in mind during the recruitment. The legislation of the BBBEE has to be applied on Khusela, due to the fact that the company will employ more than 50 employees. Economical In 2010 South Africa emerged as one of the most successful tourist destinations in the world, with an arrival growth of 15.1%. The tourist industry is very labor intensive, which is good for the unemployment rate. According to Datamonitor (2011), one job is created for every 16 visitors. The Eastern Cape is a very popular destination within South Africa, which is a big opportunity for Khusela. Despite, the high tourism rate, the unemployment rate is still very high. According to the statistics of South Africa, 25% of the working age population was unemployed in 2010. South Africa estimates that the unemployment rate will decline to 20% in 2013, but it is still a problem. Therefore, Khusela will employ locals and not international people. Furthermore, Khusela will buy local products when that is available, to stimulate the agriculture and to create jobs. Socio-cultural South Africas public educational system needs to be improved. There are low graduation rates, underqualified teachers, and buildings and facilities that need repair. South Africa also have to improve basic facilities such as libraries, because only 7% of the countrys public schools have functional libraries. The African law is different than the European law, so research and especially respect for a multicultural nation is essential. It is very important to do research on the norms, values, beliefs and traditions of the local community, so that the local residents can accept and adapt to the new processes of the company as good as possible. Khusela will do research about the local communities near Khusela lodge, so that the culture of the communities can be understand and can be adapt to the company culture as well. Furthermore, training will be given to the future employees. These trainings are focused on their functions as well as training about different cultures, so that employees can understand the guests from different countries. Technological Technology is one of the most important and most dynamic environment influences. This environment is difficult, because the technical environment is very dynamic and thus always changing. Khusela will be a

luxurious lodge, which means that the technology has to be adapted to this. Furthermore, social media is one of the most important things that Khusela has to take in consideration. Nowadays, social media plays an important role in the tourism industry. It is proven that 83.5% of the guests read a hotel or lodge review before making a reservation. From that percentage, 81.5% of the people are influenced by these reviews. Khusela have to keep an eye on Trip advisor and other websites and interact with the guests when a bad review is placed. This is very important, because reviews can be a feedback for the company, if it is well used. Furthermore, bad reviews can decrease the number of bookings. Environmental South Africa has taken substantial steps to preserve its environmental heritage. The government has taken steps toward the UNs agenda 21 on sustainable energy and environmental development. South Africa is very active concerning the environment, namely with recycling, energy and water use. Water and energy is still a problem in South Africa, therefore Khusela will install water saving and energy saving systems, like rain barrels. Furthermore, the buildings will be as sustainable as possible, so that it effects the nature as less as possible. Khusela will also make some rules about recycling, energy usage and water usage for the operational departments. Legal When opening a lodge many laws and regulations have to be taken in considerations. Khusela is located on a game reserve. There are a lot of laws and regulations concerning game on the farm, hunting, poaching etc. Furthermore, the lodge has to take other laws and regulations in consideration, namely liquor law, taxes etc. Furthermore, Khusela will have to deal with the labor laws, including working times, overtime, salaries, public holidays etc.

Porters 5 forces
Threat of entry Nowadays, the tourism industry is growing rapidly. South Africa is one of the most successful tourism destinations in the world, with an arrival growth of 15.1%. This means that there is a high demand for accommodation. This could make the threat of entrants high. However, high capital is needed to open a lodge and game reserve. Opening a game reserve and lodge is a lot more complicated than opening a hotel. There are a lot of laws and regulations in South Africa concerning the nature, wildlife and ecosystem. Khusela was established years ago and already have dealt with the environmental impacts of

the buildings on the reserve, the laws and regulations etc. Despite, the increase of tourists, the threat of entry is still very low. Due to all other factors that an entrant has to take in consideration. Threat of substitutes The main substitutions for Khusela are other reserves with the big 5, but also hotel and backpackers. Game reserves that offers the big five is the biggest threat for Khusela, because Khusela do not offer the big 5. Most internationals do want to see the big 5, so there is a big chance that those guests will go to the competitors like, Shamwari Game Reserve. Hotels can be a substitute, however most of the international tourist are coming to South Africa for the wildlife and the nature. Therefore, hotels are mainly substitutes for lodges nearby big cities like, Port Elizabeth and Cape Town. Finally, backpackers can be a threat for lodges, because of the cheap prices. However, Lodges like Khusela are more focusing on guests with a higher income namely, honeymoon couples and elderly couples. There can be concluded that there is a moderate threat of substitutes. Khusela have to differentiate themselves, mainly for other lodges. Power of buyers The power of buyers is high for Khusela, because Khusela is not a Big 5 reserve which is a disadvantage. However, Khusela have other unique selling points, like hiking, quad, mountain biking and the rare antelope on the reserve. Although, Khusela lodge still have to take other opportunities in consideration to make the reserve unique and to attract guests. Therefore, the power of buyers is high. Power of suppliers The power of suppliers is low, because Khusela will have biological products from the nearest farms to help the local community. The local farm need Khusela to take care of the family and its employees, therefore the suppliers do not have the power to ask high prices. The costs of switching a supplier is also very low and there are a lot of suppliers which makes the power of suppliers even lower. Competitive Rivalry There is a moderate competitive rivalry, because on one hand the competition is high. This because there are a lot of game reserves in South Africa, mainly between the Sunshine Coast and Grahamstown, which makes the rivalry for Khusela even higher. On the other hand, all these game reserves do not actually differ from each other. When the differentiation is low the rivalry increases. Furthermore, there is a rapid increase in tourism in South Africa. Every person have different needs and every reserve can suit these needs. Khusela have a partnership with Kariega Game Reserve, so that guests can go on a

game drive in a Big 5 reserve. Khusela cannot offer the Big 5 experience on the reserve, but will keep the price lower than the competition, offer other activities on the reserve and found a solution for the Big 5 disadvantage.

Competitive Analysis
The strategic capabilities of Khusela Lodge has to be assessed in order to be able to meet and beat competitors. This will be done by an industry benchmark as it gives an insight in the performance standards of other organizations that operate in the same sector as well as in the same area as Khusela Lodge (Johnson, Scholes, & Whittington, 2006). A set of performance indicators is set up to compare the competition more easily. Khusela Game Reserve Average rates Swimming pool Spa facilities Gym Shop Bar Restaurant Big 5 Hiking opportunities Game drives Child friendly Quad Riding Mountain Biking
Table

Shamwari Game Reserve ZAR 4,989.5 Yes Yes No Yes Yes Yes Yes No

Kwandwe Game Reserve ZAR 5,206.6 Yes No No Yes Yes Yes Few No

Kariega Game Reserve ZAR 3,375 Yes Yes No Yes Yes Yes Yes Yes

Pumba Game Reserve ZAR 4,950 Yes Yes Yes Yes Yes Yes Yes Yes

Amakhala Game Reserve ZAR 3,500 Yes No No Yes Yes Yes Yes No

ZAR 2,550 Yes Yes No Yes Yes Yes No Yes

Yes Yes Yes Yes

Yes Average No No

Yes Average No No

Yes Yes No No

Yes Average No No

Yes Yes No No

As can be seen in table Khusela offers all additional service, like a spa, souvenirs shop, swimming pool etc. The price for this is much lower than the competitors. Due to the fact that Khusela do not offer the

big 5 experience on the reserve, the room rate is much lower. However, Khusela have a partnership with Kariega Game Reserve, so that the guests can go on a safari there. Khusela has a lot of rare antelope on the reserve, which attracts many guests who love the nature. Moreover, Khusela offers hiking as well as mountain biking and quad riding, which gains Khusela a competitive advantage again. Furthermore, Khusela lodge is child friendly, because no preditors are on the reserve. Children under 12 years can become a Khusela Junior Ranger. This attracts families as well and locals with children during the low seasons. Without the partnership with Kariega Game Reserve, the competitive position of Khusela would be very weak, but now Khusela offers the Big 5 and other activities, which makes the competitive position stronger. A position matrix is developed to clarify the position of Khusela Lodge and its competitors. The position matrix shows that Khusela Lodge is the cheapest Lodge, comparing to the neighboring lodges, this to attract more guests. Comparing to some other competitors, Khusela offers a high quality service and accommodation. Amakhala Game Reserve and Kariega Game Reserve offer a high service, but the accommodation is moderate.

High Price Kwandwe Game Reserve Shamwari Game Reserve Pumba Game Reserve Kariega Game Reserve Amakhala Game reserve Khusela Game Reserve

Low Quality

High Quality

Low Price

Objectives

SWOT
A SWOT analysis has been made to summarize the key issues of the strategic capabilities as well as the Khusela environment, which have to most impact on the strategic choices and development of the lodge. The current strengths and weaknesses are indentified as well as the opportunities and threats derived (Johnson, Scholes, & Whittington, 2006). Strengths 1. Location Only 15 minutes from the Sunshine Coast Nearby Grahamstown (25 min) Garden Route Weaknesses 1. No big 5 Game Reserve 2. High marketing expenses due to weak brand awareness 3. A lot of employee training needed to improve service quality

2. Game Reserve with threatened, endangered and protected species. 3. Offering additional activities next to accommodation and game 4. Child Friendly Opportunities 1. Increase in sustainable awareness 2. Operate in a developing market 3. The possibility to create strategic alliance with leisure companies 4. Local employment and trainings 5. Local communities projects 6. Guests loyalty 7. Conservation Threats 1. Increase in competition 2. Broad-based Black Economic Empowerment (BBBEE)

Strengths Location Khusela Lodge is perfectly located and is a starting point or end point of the garden route. It is near the city Grahamstown, which makes it easy for guests to make a trip to Grahamstown. Furthermore, this is also positive when medical incidents occur. Khusela is also 15 minutes from the Sunshine coasts, those beaches are one of the most popular and beautiful beaches of South Africa. Finally, Khusela is located at

the beginning or end of the garden route, depending where tourists start. The Garden route attracts many tourists, which increases the opportunities for Khusela. Species on the reserve Although Khusela do not have the big 5 on the reserve, Khusela have a variety of endangered, protected species, including South Africas rarest antelope the Oribi. These small and elegant antelope will not be seen in any Big Five reserves. There are more special, protected and rare species on the reserve like the beautiful Sable, which because of their high value are not seen in the Eastern Capes Big Five reserves. There are also a lot of birds and other indigenous animals like the Caracal, Jackal, Tree Hyrax, large tortoises etc. Additional activities on the reserve As already mentioned before, Khusela offers next to hiking, mountain biking and quad riding on the reserve. This is an extra service to compensate the fact that Khusela cannot offer the Big 5 experience on their reserve. Child Friendly Khusela Lodge is very child friendly. Accomodation is offered for families and activities are organized for children, like becoming a Khusela Junior Ranger. Predators do not occur on the reserve, so that children can walk around safely. Weaknesses No Big 5 The biggest weakness for Khusela Lodge is that the Big Five is not introduced on Khusela Game Reserve. Most of the competitors do have the Big Five on the reserve, which makes this a big disadvantage for Khusela Lodge. Brand Awareness The neighboring lodges are already established years ago and already have created brand awareness. Despite, Khusela was established years ago, the brand awareness is not optimal. Therefore, 15% of the revenue will be used for marketing the first year. The second year 10%, followed by 8%, 7% and 6% of the revenue. After 5 years the marketing expenses will become lower, due to the increase of brand awareness. It is important for Khusela to gain brand awareness to increase occupancy.

Employee training Khusela is planning to employ locals as much as possible, to decrease the local unemployment rate. However, according to Datamonitor (2011) South Africa has a low graduation rate and under-qualified teachers. Therefore, a lot of training have to be given to the future employees of Khusela. The training expenses are therefore higher than usual. Opportunities Increase in sustainable awareness The mission and vision of Khusela Lodge is to be and become an eco-friendly and sustainable lodge. Therefore Khusela can us this positive aspect to increase sustainable awareness amongst guests as well as locals. Being a sustainable and eco friendly business the lodge can make a small but meaningful difference to the world as well as to inspire others to do the same. Operate in a developing market In 2010 South Africa emerged as one of the most successful tourist destinations in the world, with an arrival growth of 15.1%. The tourist industry is very labor intensive, which is good for the unemployment rate. According to Datamonitor (2011), one job is created for every 16 visitors. The Eastern Cape is a very popular destination within South Africa, which is a big opportunity for Khusela. Despite, the high tourism rate, the unemployment rate is still very high. According to the statistics of South Africa, 25% of the working age population was unemployed in 2010. South Africa estimates that the unemployment rate will decline to 20% in 2013, but it is still a problem. Therefore, Khusela will employ locals and not international people. Furthermore, Khusela will buy local products when that is available, to stimulate the agriculture and to create jobs.

1. Operate in a developing market 2. The possibility to create strategic alliance with leisure companies 3. Local employment and trainings Local communities projects South Africa has different legislations than other countries, also in terms of labor legislations. Laws for hiring, firing and maintaining staff in the hospitality sectors differs a lot from other countries, due to the apartheid. Nowadays the African Nation Congress (ANC) is supporting the trade unions, which is positive, because The Trade Union and the CCMA are organizations that are developed in favor of

employees and all processes concerning hiring, firing and difficulties employees can have with employers. When the government supports these organizations, there is a big chance that the employment rate will go up. Violent crime is also a big issue within South Africa, the main reason for this is a lack of education and unemployment. Khusela wants to take these issues in consideration, by employing local residents for management functions as well for other functions. This could decrease the unemployment rate and violent crime rate in that area. Khusela will take the Broad-based Black Economic Empowerment (BBBEE) organization in mind during the recruitment. The legislation of the BBBEE has to be applied on Khusela, due to the fact that the company will employ more than 50 employees. Economical Socio-cultural South Africas public educational system needs to be improved. There are low graduation rates, underqualified teachers, and buildings and facilities that need repair. South Africa also have to improve basic facilities such as libraries, because only 7% of the countrys public schools have functional libraries. The African law is different than the European law, so research and especially respect for a multicultural nation is essential. It is very important to do research on the norms, values, beliefs and traditions of the local community, so that the local residents can accept and adapt to the new processes of the company as good as possible. Khusela will do research about the local communities near Khusela lodge, so that the culture of the communities can be understand and can be adapt to the company culture as well. Furthermore, training will be given to the future employees. These trainings are focused on their functions as well as training about different cultures, so that employees can understand the guests from different countries.

Financial plan
The financial plan of Khusela Game Reserve includes the calculations of the investment costs of starting up Khusela Lodge, the estimated revenue and expenses and the income statement for the next 10 years. A calculation of the Net Present Value (NPV), the payback period and the Internal Rate of Return (IRR) are calculated to determine whether or not the investment is financial feasible and how long it will take to earn the investment back.

Investment costs
Khusela is a game reserve with a villa, four chalets and a farmstead. This all together, including the land, vehicles and furnishings, will cost ZAR 15,000,000. The villa is in good state, most of the facilities are already included, some changes have to be done in the kitchen and restaurant. A bar will be build in the lounge, which is an investment as well. Fortunately, most of the furnishing is still new, however some furnishing does not look pretty together with the rest of the interior. Therefore, some new couches, chairs and new beds will be bought to restyle the rooms and the living rooms. The total investment for the interior of the villa and chalet will be ZAR 972.350. Furthermore, dinging facilities have to be purchased, which is a big investment as well. The china, cutlery and pans are an investment for the lodge, because Khusela wants good quality. China with good quality have a long live span. Every year the stock will be resupplied whenever it is needed. This will be shown as an expenditure on the income statement. The dinging investment is ZAR 41.405. Specified figures of the dinging investment can be found in Table. Khusela is not a big 5 reserve, therefore other facilities and activities have to be offered to compete with the competitors. First of all spa facilities will be implemented in the study room of the villa, because this study/library room will not be used by the guests. The innovation will costs ZAR 69.180, which includes the interior change, the massage table, the dcor and furnishing. Secondly, eight mountain bikes and five quads will be purchased, so that more activities can be offered on the reserve. The total investment for these activities is ZAR 72.000. A few year ago the farmstead has been expended. Most of the lodges have a souvenir shop on the lodge, therefore an souvenir shop will be build in this building. The interior have to be altered, which will costs ZAR 60.000.

Finally a computer and printer have to be purchased, together with a reservation system. The total investment for this is ZAR 20.000, due to the fact that a reservation system is very expensive. The total investment will be ZAR 16.974.935, the overview of the investment can be found in Table....

Investment Costs Land & building & vehicles Spa innovation Souvenir Shop innovation (interior) Interior Dining facilities Activities Computer, Printer & reservation program Total

ZAR 15.000.000,00 ZAR 69.180,00 ZAR 60.000,00 ZAR 1.732.350,00 ZAR 41.405,00 ZAR 72.000,00 ZAR 20.000,00 ZAR 16.974.935,00

Income Statement
Operating Departments
Rates The rates of Khusela Game Reserve differ per room. A chalet will be more expensive, due to the fact that a private living room, terrace and Jacuzzi is provided. The rooms at the villa has a private balcony and bathroom, but do not have a private living room. The pool can be used by all guests. Depending on the time of the year and the amount of nights, a rate is made. The rates are shown at the table below.
Rates chalet 1 April 5 2011 to 30 1 October 2011 to 1 April 2012 to 30 1 October 2012 to 31 May September 2011 31 May 2012 September 2012 2012 ZAR 2.250,00 ZAR 3.250,00 ZAR 2.275,00 ZAR 3.275,00 ZAR 2.025,00 ZAR 2.925,00 ZAR 2.047,50 ZAR 2.947,50 ZAR 1.800,00 ZAR 2.600,00 ZAR 1.820,00 ZAR 2.620,00

1 night 2 nights 3 nights and more

Table

1 night 2 nights 3 nights and more Table

Rates Rooms 1 April 5 2011 to 30 1 October 2011 to 1 April 2012 to 30 1 October 2012 to 31 May September 2011 31 May 2012 September 2012 2012 ZAR 2.100,00 ZAR 3.100,00 ZAR 2.125,00 ZAR 3.125,00 ZAR 1.890,00 ZAR 2.790,00 ZAR 1.912,50 ZAR 2.812,50 ZAR 1.680,00 ZAR 2.480,00 ZAR 1.700,00 ZAR 2.500,00

The rates are including all meals, all local drinks, one game drive and an extra game drive in a big 5 game reserve or activity. The rates do not include other activities outside the reserve, but this can be arranged with discount. These activities will be elaborated later in the financial plan. Occupancy & forecasted room revenue The maximum amount of occupancy Khusela can generate is 7610 guests per year. In low seasons every week one room will be renovated, to keep the interior presentable. Therefore, the total number of rooms available will be for the chalets 351 days and for all room 337 days. The maximum amount of guests are 24. The maximum amount of guests per year is calculated by maximum amount of guests times the maximum amount of nights.
Accomodation type 2 two to three Persons chalet 2 four persons chalet 4 Rooms Total Maximum amount of guests 6 8 8 Maximum amount of night sold (inc. Maintainance) 351 351 337 Maximum amount of nights in a year 2106 2808 2696 7610

Khusela was already a lodge, which is an advantage for Khusela in terms of occupancy. Khusela always gave the best service to the guests, therefore it was a four star lodge. As already mentioned before, Khusela has chosen to degrade the lodge in the beginning, so that the expectations of the guests do not exceed the offered service. Therefore, the price became lower, but the service will stay the same. Khusela expect to have a higher occupancy than other starting companies, because of the loyal guests. Khusela will focus on local guests in the winter as well, which increases the occupancy during the low seasons. The estimated occupancy is shown in table.... the estimated average occupancy is a percentage of the maximum amount of guests per year.
Year 1 2 3 4 5 6 7 8 9 10 11 12
Table

Average forcasted occupancy 40% 45% 50% 58% 65% 67% 68% 69% 71% 73% 74% 75%

Forecasted nights occupied 3044 3425 3805 4414 4947 5099 5175 5251 5403 5555 5631 5708

Average room rate ZAR 2.550,00 ZAR 2.572,70 ZAR 2.595,60 ZAR 2.618,71 ZAR 2.642,02 ZAR 2.665,54 ZAR 2.689,27 ZAR 2.713,21 ZAR 2.737,36 ZAR 2.761,73 ZAR 2.786,31 ZAR 2.811,12

Forecasted room revenue ZAR 7.762.200,00 ZAR 8.810.211,15 ZAR 9.876.266,28 ZAR 11.558.454,37 ZAR 13.068.751,76 ZAR 13.590.784,86 ZAR 13.916.423,31 ZAR 14.246.782,42 ZAR 14.790.233,58 ZAR 15.342.231,34 ZAR 15.690.846,35 ZAR 16.044.452,29

The average room rate increases every year with approximately 0,89%. The occupancy will increase rapidly the first five years, because Khusela planned to spend a lot of money on marketing the first five years to increase brand awareness. Due to the fact that Khusela will focus on both international and local guest, the occupancy will be higher than lodges who focus on only internationals. The estimated total room revenue will grow rapidly the first years, however this involves a lot of costs as well.

Activities Khusela Game Lodge has a partnership with different companies that organizes activities. Therefore, various activities can be arranged for the guests, namely a big 5 game drive, golf, horse riding and river fishing. Khusela will earn 5% of the activity price with this partnership. Khusela do not expect too much demand for the activities, only for the big 5 game drives. The activities will increase the revenue with approximately ZAR 24.000 in the first 5 years and ZAR 32.000 in the second 5 years. Khusela can use this partnership to attract more guests, while it does not involve any costs for the lodge. The calculation of the first year is shown in the table below, the calculations of the other years can be found in appendix.....
Year 1 Demand of total occupancy Total occupancy Price 30% 3044 ZAR 2% 3044 ZAR 5% 3044 ZAR 1% 3044 ZAR

Activities Big 5 game drive Golf Horse riding river fishing Total income Table

350 150 180 250

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 15.981 ZAR 457 ZAR 1.370 ZAR 381 ZAR 18.188

Shop The shop will be an investment for Khusela, but will be earned back within a year. The revenues will increase every year, because the occupancy is estimated to increase as well. The forecasted revenue and costs for the next 10 years are shown in the table below. A more detailed overview of the first year is shown in Appendix ....

Yearly retail income Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR 1.473.417,76 1.547.088,65 1.624.443,08 1.754.398,53 1.877.206,42 1.877.206,42 1.877.206,42 1.914.750,55 1.914.750,55 1.953.045,56

Yearly retail costs ZAR 614.979 ZAR 645.728 ZAR 678.015 ZAR 732.256 ZAR 783.514 ZAR 783.514 ZAR 783.514 ZAR 799.184 ZAR 799.184 ZAR 815.168

Table

Spa facilities The spa facilities will be an innovation as well. Khusela has chosen to invest in a spa, to offer an extra service to the guests and to attract more guests. The spa itself will not be profitable, but will increase the revenue indirectly. Due to the fact that Khusela wants a high qualified spa employee, the payroll expenses will be higher than the spa revenues, which is the main reason that the spa is not profitable. The revenues and costs excluding the payroll expenses are shown in table..... The sales includes both treatments as sales of aesthetician products during the treatments.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Table

Total Sales ZAR 56.953,24 ZAR 59.800,90 ZAR 63.986,97 ZAR 67.186,31 ZAR 70.545,63 ZAR 70.545,63 ZAR 70.545,63 ZAR 70.545,63 ZAR 71.251,09 ZAR 71.251,09

Total costs of sales ZAR 29.828,80 ZAR 31.171,10 ZAR 32.729,65 ZAR 34.038,84 ZAR 34.549,42 ZAR 35.067,66 ZAR 35.067,66 ZAR 35.067,66 ZAR 35.243,00 ZAR 35.243,00

Other revenue Besides the room revenue, F&B revenue, shop revenue and spa revenue, Khusela also have extra revenue from mountain biking and quad riding. Khusela estimates that approximately 5% of the total room occupancy would like to do an extra activity. Furthermore, Sables can be sold to reserve without the big 5. Sables have a really high value, therefore these antelope will not be seen in big 5 game reserves. Khusela estimates to sell two sables per year for approximately ZAR 125.000 per Sable.

Distributed Expenses
The sales of Khusela bring some costs of sales. These expenses are expenses which can be directly allocated to the various departments of Khusela Lodge and are subtracted from the revenue. Cost of sales The costs of sales includes F&B costs, room costs, activity costs, purchase costs for both spa and souvenirs shop. The costs of sales for the room and F&B is stated on 45% of the sales, this includes purchase costs of beverage and food and room costs. The room costs are mainly toiletries, laundry, linen, which is 13,8% of the sales (Schmidgall, 2006). The spa & shop costs of sales are the purchase costs of the aesthetician equipment and souvenirs. The spa will sell aesthetician products as well, which includes bath salt, massage oil, aroma oil, body lotion and scrub. The purchase costs of these products are included in the cost of sales as well. The cost of sales of the shop can be found in table.., however a detailed calculation can be found in appendix Payroll expenses As already mentioned in HRM, the lodge has employed 21 employees. The salary of the employees differs from ZAR 2.250 to ZAR 150.000 per month. The total payroll expenses are calculated based on the amount of employees and the wages of the employees. In table the yearly salary per employee can be found. The wage per hour is determined based on the responsibilities, duties and type of contract of the employee. A more detailed overview of the payroll expenses can be found in appendix.. The salary will increase yearly depending on the increase in the minimum wage. The average total payroll costs the first five years will be ZAR 1.378.400. In the yearly income statement the payroll costs Employees Salary will be allocated at the departments. Operations This means that the payroll expenses General Manager ZAR 180.000 Human Resource Manager ZAR 126.000 of marketing, finance and Lodge Manager ZAR 120.000 maintenance can be found at the Marketing manager ZAR 126.000 undistributed costs, because these Finance Manager ZAR 132.000 departments are not directly related F&B employees waitresses ZAR 33.000 to sales. Cook ZAR 33.000 Chef ZAR 132.000 Rooms Housekeepers ZAR 30.000 Receptionist ZAR 27.000 Reserve Ranger ZAR 54.000 Transporter ZAR 27.000 Security ZAR 27.000 Maintenance & IT Maintenance Manager ZAR 66.000 IT ZAR 27.000

Table

Khusela Lodge have decided to pay a higher salary then average to keep the staff motivated and happy. Khusela thinks that this is important for the lodge service, because when the staff satisfaction increases, guest satisfaction will increase as well. Other direct expenses The other direct expense will include the costs for the activities, which is fuel and repairing costs. Khusela expect that 50% of the occupancy will go for quad riding. The fuel price per litre is approximately ZAR 10. Khusela expect to spend ZAR 91.330 on fuel and repairing costs in the first year, depending on the room occupancy.

Undistributed Costs
The undistributed expenses are the expenses which cannot be allocated directly to one of the departments of Khusela Lodge. These expenses are also subtracted from the revenue. Administration & General expenses The administration costs are not very high, because it is mainly the administrative costs and the payroll costs for the finance manager. As already shown in table the finance manager of Khusela will earn ZAR 132.000 per year. The payroll costs of the financial manager are not included in the distributed expenses, because this payroll expense of this function, as well as the marketing manager and maintenance manager, is not directly related to sales.

Marketing expenses The first five years the lodge need a lot of advertisement, promotion and have to offer discounts to increase the brand awareness. Therefore, the marketing costs will be 15% of the revenues in the first year and will decrease over the years. The marketing costs includes the commissions to the travel agents as well. After five years, the marketing costs will be approximately 5,5% of the revenues. The average lodge industry percentage of marketing costs is 5% of the total revenue (Lindgreen, Palmer, & Vanhamme, 2009). PO&M and Utility expenses The Property Operation and Maintenance and utility cost are estimated on 5,9% of the total revenue. The utility costs includes electricity, water and gas. The maintenance costs includes the employee costs of the maintenance manager and IT employee as well. Insurance expenses The insurance expenses are 0,8% of the total revenue and will decrease over the years. Depreciation expenses Khusela will invest in various vehicles, those vehicle will be deprecated with 20%. The printer will be depreciated with 20%. Furthermore. the quads will be depreciated with 15% and the furnishing of the spa room has a depreciation of 12%. The depreciation costs will be lower after a few years. The depreciation costs can be found in the table below.

Vehicles Furnishing Quads & Mountainbikes Computer, Printer Total

Depreciation costs Depreciation % every year ZAR 1.240.000,00 20% ZAR 248.000,00 ZAR 50.000,00 12% ZAR 6.000,00 ZAR 72.000,00 15% ZAR 10.800,00 ZAR 12.000,00 20% ZAR 2.400,00 ZAR 267.200,00

Other expenses The other fixed expenses will be the purchase costs of the china, cutlery and cookware. This will be ZAR 34.445 or ZAR 41.250 depending on the needed stock.

Fixed Charges
Income tax The income taxes of Khusela lodge will be 28% of the income before tax, which is the income tax for most of the countries, including South Africa (Schmidgall, 2006).

Net Income
When the fixed charges are substracted from the Earning Before Income Tax (EBIT), the net income is calculated. The net income can be found in the income statement in appendix....

Net Present Value

The cash flow is calculated by adding the depreciation to the net income, which is shown in table.

Cash flow Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Project income ZAR 1.043.667,84 ZAR 1.582.669,35 ZAR 2.041.582,97 ZAR 2.828.524,71 ZAR 3.305.123,42 ZAR 3.622.136,06 ZAR 3.714.960,25 ZAR 3.816.910,62 ZAR 3.973.894,02 ZAR 4.137.997,59 ZAR 4.211.891,61 ZAR 4.440.851,63

Depreciation ZAR 267.200,00 ZAR 267.200,00 ZAR 267.200,00 ZAR 267.200,00 ZAR 267.200,00 ZAR 16.800,00 ZAR 13.236,00 ZAR 6.000,00 ZAR 1.980,00 ZAR ZAR ZAR -

Cash Flow ZAR 1.310.867,84 ZAR 1.849.869,35 ZAR 2.308.782,97 ZAR 3.095.724,71 ZAR 3.572.323,42 ZAR 3.638.936,06 ZAR 3.728.196,25 ZAR 3.822.910,62 ZAR 3.975.874,02 ZAR 4.137.997,59 ZAR 4.211.891,61 ZAR 4.440.851,63

The cash flow of 11 years is used to calculate the net present value of Khusela Lodge. The Present value factor of 12% is used for the NPV, which makes a total net present value of ZAR 1.344.591 for Khusela Lodge. After the Internal Rate of Return calculation, there can be said that the project is excepted. This will be elaborated further in the next paragraph. The NPV calculation is shown in table

Investment 0 ZAR -16.974.935,00 123456 7 8 9 10 11 Incremental cash flow NPV Year

table

Cash flow ZAR 1.310.867,84 ZAR 1.849.869,35 ZAR 2.308.782,97 ZAR 3.095.724,71 ZAR 3.572.323,42 ZAR 3.638.936,06 ZAR 3.728.196,25 ZAR 3.822.910,62 ZAR 3.975.874,02 ZAR 4.137.997,59 ZAR 4.211.891,61 ZAR 35.653.374,45

PV factor 12% 1 0,8929 0,79727041 0,711882749 0,635640107 0,567563051 0,506777048 0,452501227 0,404038345 0,360765838 0,322127817 0,287627928

Present value of cashflow ZAR -16.974.935,00 ZAR 1.409.056,77 ZAR 1.687.876,75 ZAR 1.833.797,84 ZAR 2.137.609,82 ZAR 2.179.171,63 ZAR 1.852.643,13 ZAR 1.693.002,68 ZAR 1.547.026,71 ZAR 1.435.073,84 ZAR 1.332.964,13 ZAR 1.211.457,66 ZAR 1.344.745,96

Payback period
The payback period of Khusela Lodge is 6 years and 118 days. This is calculated by subtracting the cash flows of seven years from the total investment. In year 7 the cash flow is higher than the overgebleven amount, therefore this amount have to be divided by the cash flow of year 7. The outcome of this is 0,33 that is 118 days of a year.

Project Cost Less year 1 Cash Flow Less Year 2 Cash Flow Less Year 3 Cash Flow Less Year 4 Cash Flow Less Year 5 Cash Flow Less Year 6 Cash Flow Cash Flow Year 7 Payback Period

Internal Rate of Return

The internal rate of return is the rate of growth a project is expected to generate. The higher the IRR the more desirable it is to undertake the project. Most of the time the actual rate of return will often

16.974.935,00 1.310.867,84 15.664.067,16 1.849.869,35 13.814.197,81 2.308.782,97 11.505.414,84 3.095.724,71 8.409.690,12 3.572.323,42 4.837.366,70 3.622.136,06 1.215.230,65 3.728.196,25 0,33 6,33 6 years 118 days

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

differ from its estimated IRR rate. The IRR of Khusela is estimated to be 12.4%, which is higher than the used present value factor during the NPV calculation. When the IRR is equal or higher than this present value factor, the project is accepted. This means that investing in Khusela Lodge, will be a good choice and will be profitable for investors after eleven years.

Investment costs
Interior Interior change Couches in villa Couches in chalets Chairs in chalets Rooms & Bathrooms Beds in villa Beds in chalets Blankets + Pillows Total interior investement Amount Puchase costs 6 ZAR 4 ZAR 8 ZAR Amount Total investement for Khusela ZAR 1.500.000,00 10.000,00 ZAR 60.000,00 10.000,00 ZAR 40.000,00 5.000,00 ZAR 40.000,00

Puchase costs Total investment for Khusela 2 ZAR 7.695,00 ZAR 15.390,00 8 ZAR 7.695,00 ZAR 61.560,00 22 ZAR 700,00 ZAR 15.400,00 ZAR 1.732.350,00

Amount Cutlery 36x Steak knifes 6x Big plates 20x Small plates 20x Glasses 6x Wiskey glasses 6x White wine glasses 6x Red wine glasses 8x Champagne glasses 6x Coctail glasses 6x Cups tea and coffee Pepper & Salt set waterboiler Cookware set 8 pieces Pan Casserol Total investment

Purchase costs 1 ZAR 2.875,00 4 ZAR 490,00 2 ZAR 1.280,00 2 ZAR 950,00 12 ZAR 190,00 2 ZAR 95,00 5 ZAR 640,00 4 ZAR 950,00 4 ZAR 560,00 2 ZAR 275,00 72 ZAR 110,00 8 ZAR 275,00 9 ZAR 325,00 1 ZAR 5.895,00 2 ZAR 325,00 2 ZAR 130,00

Total investement for Khusela ZAR 2.875,00 ZAR 1.960,00 ZAR 2.560,00 ZAR 1.900,00 ZAR 2.280,00 ZAR 190,00 ZAR 3.200,00 ZAR 3.800,00 ZAR 2.240,00 ZAR 550,00 ZAR 7.920,00 ZAR 2.200,00 ZAR 2.925,00 ZAR 5.895,00 ZAR 650,00 ZAR 260,00 ZAR 41.405,00

Activities Mountain bike Quad bikes Total activities investment

Amount

Purchase costs Total investement for Khusela 8 ZAR 4.000,00 ZAR 32.000,00 5 ZAR 8.000,00 ZAR 40.000,00 ZAR 72.000,00

Interior change Two Massage Tables Decor & furnishing Total spa investment

Spa room ZAR ZAR ZAR ZAR

4.000,00 15.180,00 50.000,00 69.180,00

Other expenses
Rooms & Bathrooms Linens Big towels Small towels Ground towels Bathrobes Diner Cutlery 36x Steak knifes 6x Big plates 20x Small plates 20x Glasses 6x Wiskey glasses 6x White wine glasses 6x Red wine glasses 8x Champagne glasses 6x Coctail glasses 6x Cups tea and coffee Expenses per year Amount Puchase costs ZAR 350,00 66 ZAR 80,00 66 ZAR 50,00 18 ZAR 40,00 44 ZAR 250,00 Amount Purchase costs 1 ZAR 2.875,00 1 ZAR 490,00 1 ZAR 1.280,00 1 ZAR 950,00 6 ZAR 190,00 1 ZAR 95,00 2 ZAR 640,00 2 ZAR 950,00 1 ZAR 560,00 1 ZAR 275,00 30 ZAR 110,00 Total investment for Khusela ZAR ZAR ZAR ZAR 5.280,00 3.300,00 720,00 11.000,00

Total investement for Khusela ZAR 2.875,00 ZAR 490,00 ZAR 1.280,00 ZAR 950,00 ZAR 1.140,00 ZAR 95,00 ZAR 1.280,00 ZAR 1.900,00 ZAR 560,00 ZAR 275,00 ZAR 3.300,00 ZAR 34.445,00

Additional expenses after 2 year Amount Purchase costs Cookware set 8 pieces 1 ZAR 5.895,00 Pan 2 ZAR 325,00 Casserol 2 ZAR 130,00 Total additional expenses

Total investement for Khusela ZAR 5.895,00 ZAR 650,00 ZAR 260,00 ZAR 6.805,00

Activities
Year 1 Demand of total occupancy Total occupancy Price 30% 3044 ZAR 2% 3044 ZAR 5% 3044 ZAR 1% 3044 ZAR

Activities Big 5 game drive Golf Horse riding river fishing Total income

350 150 180 250

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 15.981 ZAR 457 ZAR 1.370 ZAR 381 ZAR 18.188

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 2 Demand of total occupancy Total occupancy Price 30% 3425 ZAR 2% 3425 ZAR 5% 3425 ZAR 1% 3425 ZAR

350 150 180 250

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 17.981 ZAR 514 ZAR 1.541 ZAR 428 ZAR 20.464

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 3 Demand of total occupancy Total occupancy Price 30% 3805 ZAR 2% 3805 ZAR 5% 3805 ZAR 1% 3805 ZAR

360 155 190 265

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 20.547 ZAR 590 ZAR 1.807 ZAR 504 ZAR 23.448

Activities Big 5 game drive Golf Horse riding river fishing Total income

Demand of total occupancy 30% 2% 5% 1%

Year 4 Total occupancy Price 4414 ZAR 4414 ZAR 4414 ZAR 4414 ZAR

360 155 190 265

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 23.836 ZAR 684 ZAR 2.097 ZAR 585 ZAR 27.201

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 5 Demand of total occupancy Total occupancy Price 30% 4947 ZAR 2% 4947 ZAR 5% 4947 ZAR 1% 4947 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 27.456 ZAR 792 ZAR 2.474 ZAR 680 ZAR 31.401

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 6 Demand of total occupancy Total occupancy Price 30% 5099 ZAR 2% 5099 ZAR 5% 5099 ZAR 1% 5099 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 28.298 ZAR 816 ZAR 2.550 ZAR 701 ZAR 32.364

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 7 Demand of total occupancy Total occupancy Price 30% 5175 ZAR 2% 5175 ZAR 5% 5175 ZAR 1% 5175 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 28.720 ZAR 828 ZAR 2.588 ZAR 712 ZAR 32.847

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 8 Demand of total occupancy Total occupancy Price 30% 5251 ZAR 2% 5251 ZAR 5% 5251 ZAR 1% 5251 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 29.142 ZAR 840 ZAR 2.626 ZAR 722 ZAR 33.330

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 9 Demand of total occupancy Total occupancy Price 30% 5099 ZAR 2% 5099 ZAR 5% 5099 ZAR 1% 5099 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 28.299 ZAR 816 ZAR 2.550 ZAR 701 ZAR 32.366

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 10 Demand of total occupancy Total occupancy Price 30% 5555 ZAR 2% 5555 ZAR 5% 5555 ZAR 1% 5555 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 30.832 ZAR 889 ZAR 2.778 ZAR 764 ZAR 35.262

Activities Big 5 game drive Golf Horse riding river fishing Total income

Year 11 Demand of total occupancy Total occupancy Price 30% 5631 ZAR 2% 5631 ZAR 5% 5631 ZAR 1% 5631 ZAR

370 160 200 275

commission 5% 5% 5% 5%

Total Income for Khusela ZAR 31.254 ZAR 901 ZAR 2.816 ZAR 774 ZAR 35.745

Retail Shop
Products Souvenirs Clothes: Jewelry: Retail price Yearly basis Selling price inventory Forecasted sell turnover costs per year profit per year

T-shirts Pants Sweaters Bathrobes Towels Flip flops Headwear Sunglasses

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

20 80 60 60 50 100 50 75

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

200 230 260 220 190 300 230 160

3000 350 500 20 130 30 3000 260

1979 304 457 15 122 27 1979 244

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

395.720 70.012 118.716 3.348 23.134 8.219 455.078 38.963

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

39.572 24.352 27.396 913 6.088 2.740 98.930 18.264

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

356.148 45.660 91.320 2.435 17.046 5.479 356.148 20.699

Rings Ear rings Bracelets Watches Necklace

ZAR ZAR ZAR ZAR ZAR

200 300 400 1.500 500

ZAR ZAR ZAR ZAR ZAR

510 610 710 2.510 810

35 100 30 20 30

30 91 24 18 24

ZAR ZAR ZAR ZAR ZAR

15.524 55.705 17.290 45.843 19.725

ZAR ZAR ZAR ZAR ZAR

6.088 27.396 9.741 27.396 12.176

ZAR ZAR ZAR ZAR ZAR

9.436 28.309 7.549 18.447 7.549

Craft work: price differs per craft - Sculptures - Key rings - Ostrich eggs (painted certified) - Paintings - Home wear - Textiles - African bowls - Post cards - Magnets Game cards Literature: Books (birds, mammals etc.) DVD Music Land Cards

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

50 15 100 450 30 20 122 1 2 10

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

130 40 220 880 90 70 360 15 25 35

310 310 250 250 310 310 280 3400 460 3250

304 304 244 244 304 304 274 3348 457 3196

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

39.572 12.176 53.574 214.298 27.396 21.308 98.626 50.226 11.415 111.867

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

15.220 4.566 24.352 109.584 9.132 6.088 33.423 3.348 913 31.962

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

24.352 7.610 29.222 104.714 18.264 15.220 65.202 46.878 10.502 79.905

ZAR ZAR ZAR

90 ZAR 25 ZAR 30 ZAR

210 70 80

470 280 310

457 ZAR 274 ZAR 304 ZAR

95.886 ZAR 19.177 ZAR 24.352 ZAR

41.094 ZAR 6.849 ZAR 9.132 ZAR

54.792 12.328 15.220

Pictures: -

Digital photo frames

ZAR

230 ZAR

420

50

46 ZAR

19.177 ZAR

10.502 ZAR

8.675

Conference and events products: - Pencils - Pens - Pads Total

ZAR ZAR ZAR

2 ZAR 15 ZAR 2 ZAR

20 30 15

620 770 160

304 ZAR 457 ZAR 152 ZAR ZAR

6.088 13.698 2.283 2.088.397

ZAR ZAR ZAR ZAR

609 6.849 304 614.979

ZAR ZAR ZAR ZAR

5.479 6.849 1.979 1.473.418

Spa
Spa income Ficials Standard Dermalogica Facial 60 min Advanced Dermalogica Facial 75 min Basic Facial Treatment 60 min Advanced Facial 75 min Teen Facial 60 min Body treatments Specialized Treatments Relaxation Foot Reflexology 45 min Invigorating Indian Head Massage 30 min Ear Candling & Ear Pressure Point Massage 30 min Sea Of Life Spa Body Therapy (Salt Body scrub/ Body Mask &Wrap) Half Body Treatment 45 min Full Body Treatment 60 min Full body scrub & Full body mask & wrap 120 min Massage Therapy Swedish Massage Back massage 30 min Back, neck, shoulder & scalp 45 min Full body massage 60 min Aromatherapy Massage Back massage 30 min Back, neck, shoulder & scalp 45 min Full body massage 90 min Hot Stone Massage Back massage 30 min Full body massage 75 min Hand & Feet treatments Spa Manicure 45 min Spa Pedicure 60 min Nail Paint 15 min Price 300 380 280 360 230 Demand 91 30 91 15 9 Income ZAR 27.396,00 ZAR 11.567,20 ZAR 25.569,60 ZAR 5.479,20 ZAR 2.100,36

150 150 90

21 ZAR 24 ZAR 27 ZAR

3.196,20 3.652,80 2.465,64

120 210 400

152 ZAR 18.264,00 183 ZAR 38.354,40 213 ZAR 85.232,00

180 230 280

457 ZAR 82.188,00 517 ZAR 119.020,40 578 ZAR 161.940,80

190 240 390

183 ZAR 34.701,60 213 ZAR 51.139,20 244 ZAR 94.972,80

200 350

152 ZAR 30.440,00 183 ZAR 63.924,00

150 180 60

152 ZAR 22.830,00 152 ZAR 27.396,00 61 ZAR 3.652,80

Waxing Lip / Brow / Chin 15 min R40 Brow wax & shape 20 min R50 Full face (cheeks, chin & lip) 30 min R70 Under arm 20 min R60 Half arm 20 min R60 Full arm 30 min R70 Bikini 20 min R80 Brazilian 30 min R90 Hollywood 45 min R120 Half leg 20 min R80 Full leg 40 min R100 Full leg including Bikini 60 min R160 Chest wax 45 min R70 Back wax 45 min R80 Total income spa treatments Aesthetician Equipment Payroll expenses

40 50 70 60 60 70 80 90 120 80 100 160 70 80

3 3 2 2 3 3 5 7 6 11 7 7 6 3

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

109,58 136,98 127,85 109,58 164,38 191,77 438,34 630,11 694,03 852,32 669,68 1.168,90 404,85 267,87

ZAR 5.966,24 ZAR 14.000,00 ZAR 48.000,00

Wellness products: Bath salt Massage oil Aroma oil Body Lotion Scrub Total

Retail price ZAR 10,00 ZAR 15,00 ZAR 15,00 ZAR 10,00 ZAR 20,00

Selling price ZAR ZAR ZAR ZAR ZAR

inventory 40,00 45,00 50,00 30,00 65,00 70 285 225 70 400

Forecasted sell turnover 60,88 ZAR 2.435,20 273,96 ZAR 12.328,20 213,08 ZAR 10.654,00 60,88 ZAR 1.826,40 365,28 ZAR 23.743,20 ZAR 50.987,00

costs per year ZAR 608,80 ZAR 4.109,40 ZAR 3.196,20 ZAR 608,80 ZAR 7.305,60 ZAR 15.828,80

profit per year ZAR 1.826,40 ZAR 8.218,80 ZAR 7.457,80 ZAR 1.217,60 ZAR 16.437,60 ZAR 35.158,20

Payroll Expenses
Amount of employees 1 1 1 1 1 3 1 1 2 2 3 1 1 1 2 1 1 22,5 # working hours part time # working hours full time 45 45 45 45 45 45 45 45

Employees Operations General Manager Human Resource Manager Finance Manager Marketing Manager Lodge Manager F&B employees waitresses 2x PT 1x FT Cook Chef Rooms Housekeepers 2x PT Receptionist 2x PT Reserve Ranger Maintenance & IT Maintenance Manager IT employee 1x PT General Transporter 1x PT Security Spa employee Retail shop Total FTE's

FTE's 1 1 1 1 1 2 1 1 1 1

22,5 22,5 45 45 22,5 22,5 45 45 45

3 1 0,5 0,5 2 1 1 20

Payroll expenses 1 year Employees Operations General Manager Human Resource Manager Finance Manager Marketing Manager Lodge Manager F&B employees waitresses 2x PT 1x FT Cook Chef Rooms Housekeepers 2x PT Receptionist 2x PT Reserve Ranger Maintenance & IT Maintenance Manager IT employee 1x PT General Transporter 1x PT Security Spa employee Retail shop employee Total FTE's Salary ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR 180.000 126.000 132.000 126.000 120.000 33.000 33.000 132.000 30.000 27.000 54.000 66.000 27.000 27.000 27.000 48.000 26.508 FTE's 1 1 1 1 1 Total Payroll expenses ZAR ZAR ZAR ZAR ZAR 180.000 126.000 132.000 126.000 120.000 66.000 33.000 132.000 30.000 27.000 162.000 66.000 13.500 13.500 54.000 48.000 26.508 1.355.508

2 ZAR 1 ZAR 1 ZAR 1 ZAR 1 ZAR 3 ZAR 1 ZAR 0,5 ZAR 0,5 2 1 1 ZAR ZAR ZAR ZAR ZAR

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Total Payroll expenses Rooms and F&B ZAR 943.500 ZAR 952.935 ZAR 957.700 ZAR 962.488 ZAR 972.113 ZAR 981.834 ZAR 991.653 ZAR 998.594 ZAR 1.005.584 ZAR 1.015.640 ZAR 1.021.734 ZAR 1.021.734

Spa payroll expenses ZAR 48.000 ZAR 48.480 ZAR 48.722 ZAR 48.966 ZAR 49.456 ZAR 49.950 ZAR 50.450 ZAR 50.803 ZAR 51.158 ZAR 51.670 ZAR 51.877 ZAR 51.877

Retail Payroll expenses ZAR 26.508 ZAR 26.773 ZAR 26.907 ZAR 27.041 ZAR 27.312 ZAR 27.585 ZAR 27.861 ZAR 28.056 ZAR 28.252 ZAR 28.535 ZAR 28.649 ZAR 28.649

Marketing Manager ZAR 126.000 ZAR 127.260 ZAR 127.896 ZAR 128.536 ZAR 129.821 ZAR 131.119 ZAR 132.431 ZAR 133.358 ZAR 134.291 ZAR 135.634 ZAR 136.177 ZAR 136.177

Finance Manager ZAR 132.000 ZAR 133.320 ZAR 133.987 ZAR 140.686 ZAR 142.093 ZAR 143.514 ZAR 144.949 ZAR 145.963 ZAR 146.985 ZAR 148.455 ZAR 149.494 ZAR 149.494

ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

Maintenance & IT 79.500 80.295 80.696 81.100 81.911 82.730 83.557 84.142 84.731 85.579 86.006 86.006

Total Payroll Expenses ZAR 1.355.508 ZAR 1.369.063 ZAR 1.375.908 ZAR 1.388.817 ZAR 1.402.706 ZAR 1.416.733 ZAR 1.430.900 ZAR 1.440.916 ZAR 1.451.003 ZAR 1.465.513 ZAR 1.473.937 ZAR 1.473.937

Income statements per year

Year 1 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Depreciation Income before taxes Income taxes Income after taxes Year 2 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 8.810.211 ZAR 20.464 ZAR 1.547.089 ZAR ZAR 3.964.595 ZAR 645.728 ZAR ZAR 952.935 ZAR 26.773 ZAR ZAR 102.735 ZAR 3.789.946 ZAR 20.464 ZAR 874.587 ZAR Payroll and Related Expenses ZAR 133.320 ZAR 127.260 ZAR 80.295 Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 7.762.200 ZAR 18.188 ZAR 1.473.418 ZAR 3.492.990 ZAR 614.979 ZAR 943.500 ZAR 26.508 ZAR 91.320 ZAR 3.234.390 ZAR 18.188 ZAR 831.930 Payroll and Related Expenses ZAR 132.000 ZAR 126.000 ZAR 79.500 -

Spa ZAR ZAR ZAR ZAR

295.660 ZAR 9.120 ZAR ZAR ZAR -20.876 ZAR 286.540 ZAR Other Expenses ZAR 288.193 ZAR ZAR 1.440.963 ZAR ZAR 566.779 ZAR ZAR ZAR ZAR ZAR ZAR ZAR

Other 56.953 ZAR 29.829 ZAR 48.000

Total 9.606.419 4.146.918 1.018.008 91.320 4.350.173 Total 420.193 1.566.963 646.279 267.200 2.900.634 1.449.539 405.871 1.043.668

Spa

Total 301.368 ZAR 10.738.933 10.274 ZAR 4.651.768 ZAR 1.028.188 ZAR 102.735 -19.850 ZAR 291.094 ZAR 4.956.242 Other Expenses Total ZAR 322.168 ZAR 455.488 ZAR 1.073.893 ZAR 1.201.153 ZAR 633.597 ZAR 713.892 ZAR 85.911 ZAR 85.911 ZAR 34.445 ZAR 34.445 ZAR 267.200 ZAR 2.758.090 ZAR 2.198.152 ZAR 615.483 ZAR 1.582.669

Other 59.801 ZAR 31.171 ZAR 48.480

Year 3 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes Year 4 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 9.876.266 ZAR 23.448 ZAR 1.624.443 ZAR 4.444.320 ZAR 678.015 ZAR 957.700 ZAR 26.907 ZAR 114.150 ZAR 4.360.097 ZAR 23.448 ZAR 919.521 Payroll and Related Expenses ZAR 133.987 ZAR 127.896 ZAR 80.696 -

Spa ZAR ZAR ZAR ZAR

307.075 ZAR 12.557 ZAR ZAR ZAR -17.465 ZAR 294.519 ZAR Other Expenses ZAR 356.857 ZAR ZAR 951.618 ZAR ZAR 701.818 ZAR ZAR 83.267 ZAR ZAR 41.250 ZAR ZAR ZAR ZAR ZAR ZAR

Other 63.987 ZAR 32.730 ZAR 48.722

Total 11.895.220 5.167.621 1.033.329 114.150 5.580.120 Total 490.843 1.079.514 782.514 83.267 41.250 267.200 2.744.588 2.835.532 793.949 2.041.583

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 11.558.454 ZAR 27.201 ZAR 1.754.399 ZAR 5.201.304 ZAR 732.256 ZAR 962.488 ZAR 27.041 ZAR 132.414 ZAR 5.262.248 ZAR 27.201 ZAR 995.101 Payroll and Related Expenses ZAR 140.686 ZAR 128.536 ZAR 81.100 -

Spa ZAR ZAR ZAR ZAR

Total 316.207 ZAR 13.723.447 14.566 ZAR 5.982.165 ZAR 1.038.496 ZAR 132.414 -15.819 ZAR 301.641 ZAR 6.570.373 Other Expenses Total ZAR 411.703 ZAR 552.389 ZAR 686.172 ZAR 814.708 ZAR 809.683 ZAR 890.783 ZAR 82.341 ZAR 82.341 ZAR 34.445 ZAR 34.445 ZAR 267.200 ZAR 2.641.867 ZAR 3.928.507 ZAR 1.099.982 ZAR 2.828.525

Other 67.186 ZAR 34.039 ZAR 48.966

Year 5 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes Year 6 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 13.068.752 ZAR 31.401 ZAR 1.877.206 ZAR 5.880.938 ZAR 783.514 ZAR 972.113 ZAR 27.312 ZAR 148.395 ZAR 6.067.305 ZAR 31.401 ZAR 1.066.381 Payroll and Related Expenses ZAR 142.093 ZAR 129.821 ZAR 81.911 -

Spa ZAR ZAR ZAR ZAR

324.198 ZAR 16.323 ZAR ZAR ZAR -13.459 ZAR 307.874 ZAR Other Expenses ZAR 461.163 ZAR ZAR 768.605 ZAR ZAR 906.954 ZAR ZAR 76.861 ZAR ZAR 34.445 ZAR ZAR ZAR ZAR ZAR ZAR

Other 70.546 ZAR 34.549 ZAR 49.456

Total 15.372.102 6.715.325 1.048.881 148.395 7.459.502 Total 603.256 898.426 988.865 76.861 34.445 267.200 2.869.053 4.590.449 1.285.326 3.305.123

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 13.590.785 ZAR 32.364 ZAR 1.877.206 ZAR 6.115.853 ZAR 783.514 ZAR 981.834 ZAR 27.585 ZAR 152.961 ZAR 6.340.136 ZAR 32.364 ZAR 1.066.108 Payroll and Related Expenses ZAR 143.514 ZAR 131.119 ZAR 82.730 -

Spa ZAR ZAR ZAR ZAR

Total 326.481 ZAR 15.897.382 16.826 ZAR 6.951.260 ZAR 1.059.369 ZAR 152.961 -14.472 ZAR 309.655 ZAR 7.733.791 Other Expenses Total ZAR 476.921 ZAR 620.435 ZAR 794.869 ZAR 925.988 ZAR 937.946 ZAR 1.020.676 ZAR 77.897 ZAR 77.897 ZAR 41.250 ZAR 41.250 ZAR 16.800 ZAR 2.703.046 ZAR 5.030.745 ZAR 1.408.608 ZAR 3.622.136

Other 70.546 ZAR 35.068 ZAR 49.950

Year 7 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes Year 8 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 13.916.423 ZAR 32.847 ZAR 1.877.206 ZAR 6.262.390 ZAR 783.514 ZAR 991.653 ZAR 27.861 ZAR 155.244 ZAR 6.507.136 ZAR 32.847 ZAR 1.065.832 Payroll and Related Expenses ZAR 144.949 ZAR 132.431 ZAR 83.557 -

Spa ZAR ZAR ZAR ZAR

327.622 ZAR 17.077 ZAR ZAR ZAR -14.972 ZAR 310.545 ZAR Other Expenses ZAR 486.739 ZAR ZAR 811.232 ZAR ZAR 957.254 ZAR ZAR 77.878 ZAR ZAR 34.445 ZAR ZAR ZAR ZAR ZAR ZAR

Other 70.546 ZAR 35.068 ZAR 50.450

Total 16.224.645 7.098.049 1.069.963 155.244 7.901.389 Total 631.688 943.663 1.040.811 77.878 34.445 13.236 2.741.722 5.159.667 1.444.707 3.714.960

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 14.246.782 ZAR 33.330 ZAR 1.914.751 ZAR 6.411.052 ZAR 799.184 ZAR 998.594 ZAR 28.056 ZAR 157.527 ZAR 6.679.609 ZAR 33.330 ZAR 1.087.511 Payroll and Related Expenses ZAR 145.963 ZAR 133.358 ZAR 84.142 -

Spa ZAR ZAR ZAR ZAR

Total 328.764 ZAR 16.594.172 17.328 ZAR 7.262.632 ZAR 1.077.453 ZAR 157.527 -15.325 ZAR 311.436 ZAR 8.096.561 Other Expenses Total ZAR 497.825 ZAR 643.789 ZAR 829.709 ZAR 963.066 ZAR 979.056 ZAR 1.063.198 ZAR 77.993 ZAR 77.993 ZAR 41.250 ZAR 41.250 ZAR 6.000 ZAR 2.795.296 ZAR 5.301.265 ZAR 1.484.354 ZAR 3.816.911

Other 70.546 ZAR 35.068 ZAR 50.803

Year 9 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes Year 10 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 14.790.234 ZAR 32.366 ZAR 1.914.751 ZAR 6.655.605 ZAR 799.184 ZAR 1.005.584 ZAR 28.252 ZAR 162.093 ZAR 6.966.951 ZAR 32.366 ZAR 1.087.314 Payroll and Related Expenses ZAR 146.985 ZAR 134.291 ZAR 84.731 -

Spa ZAR ZAR ZAR ZAR

331.047 ZAR 17.830 ZAR ZAR ZAR -15.150 ZAR 313.216 ZAR Other Expenses ZAR 514.189 ZAR ZAR 856.982 ZAR ZAR 1.011.239 ZAR ZAR 80.556 ZAR ZAR 34.445 ZAR ZAR ZAR ZAR ZAR ZAR

Other 71.251 ZAR 35.243 ZAR 51.158

Total 17.139.648 7.507.862 1.084.995 162.093 8.384.697 Total 661.175 991.273 1.095.970 80.556 34.445 1.980 2.865.400 5.519.297 1.545.403 3.973.894

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 15.342.231 ZAR 35.262 ZAR 1.953.046 ZAR 6.904.004 ZAR 815.168 ZAR 1.015.640 ZAR 28.535 ZAR 166.659 ZAR 7.255.928 ZAR 35.262 ZAR 1.109.343 Payroll and Related Expenses ZAR 148.455 ZAR 135.634 ZAR 85.579 -

Spa ZAR ZAR ZAR ZAR

Total 333.330 ZAR 17.735.120 18.332 ZAR 7.772.747 ZAR 1.095.845 ZAR 166.659 -15.662 ZAR 314.997 ZAR 8.699.868 Other Expenses Total ZAR 532.054 ZAR 680.509 ZAR 886.756 ZAR 1.022.390 ZAR 1.046.372 ZAR 1.131.951 ZAR 83.355 ZAR 83.355 ZAR 34.445 ZAR 34.445 ZAR ZAR 2.952.649 ZAR 5.747.219 ZAR 1.609.221 ZAR 4.137.998

Other 71.251 ZAR 35.243 ZAR 51.670

Year 11 Sales Cost of Sales Payroll and related expenses Other direct Expenses Departmental Income Administration & General Marketing PO&M and Utility costs Insurance Other fixed expenses Depreciation Income before taxes Income taxes Income after taxes

Income Statement Khusela Rooms, F&B, Activities Activity arrangements Shop ZAR 15.690.846 ZAR 35.745 ZAR 2.011.637 ZAR 7.060.881 ZAR 823.319 ZAR 1.021.734 ZAR 28.649 ZAR 168.942 ZAR 7.439.290 ZAR 35.745 ZAR 1.159.669 Payroll and Related Expenses ZAR 149.494 ZAR 136.177 ZAR 86.006 -

Spa ZAR ZAR ZAR ZAR

250.000 ZAR 18.584 ZAR ZAR ZAR -14.796 ZAR 231.416 ZAR Other Expenses ZAR 541.827 ZAR ZAR 903.045 ZAR ZAR 1.065.593 ZAR ZAR 84.886 ZAR ZAR 34.445 ZAR ZAR ZAR ZAR ZAR ZAR

Other 72.676 ZAR 35.595 ZAR 51.877

Total 18.060.905 7.938.379 1.102.260 168.942 8.851.324 Total 691.321 1.039.222 1.151.600 84.886 34.445 3.001.474 5.849.849 1.637.958 4.211.892

Income statement for 11 years

Operating Departments Rooms, F&B, Activities Activity arrangements Shop Spa Other Total revenue Distrbuted Expenses Cost of Sales Payroll Expenses Other direct expenses Total Distributed Expenses Undistributed Expenses Administrative and General Marketing PO&M and Utility costs Insurance Depreciation Other fixed expenses Total Undistributed Expenses Income Before taxes Income taxes Year 1 ZAR 7.762.200 ZAR 18.188 ZAR 1.473.418 ZAR 56.953 ZAR 295.660 ZAR 9.606.419 Year 2 ZAR 8.810.211 ZAR 20.464 ZAR 1.547.089 ZAR 59.801 ZAR 301.368 ZAR 10.738.933 Year 3 ZAR 9.876.266 ZAR 23.448 ZAR 1.624.443 ZAR 63.987 ZAR 307.075 ZAR 11.895.220 Year 4 ZAR 11.558.454 ZAR 27.201 ZAR 1.754.399 ZAR 67.186 ZAR 316.207 ZAR 13.723.447 Year 5 ZAR 13.068.752 ZAR 31.401 ZAR 1.877.206 ZAR 70.546 ZAR 324.198 ZAR 15.372.102 Year 6 ZAR 13.590.785 ZAR 32.364 ZAR 1.877.206 ZAR 70.546 ZAR 326.481 ZAR 15.897.382 Year 7 ZAR 13.916.423 ZAR 32.847 ZAR 1.877.206 ZAR 70.546 ZAR 327.622 ZAR 16.224.645 Year 8 ZAR 14.246.782 ZAR 33.330 ZAR 1.914.751 ZAR 70.546 ZAR 328.764 ZAR 16.594.172 Year 9 ZAR 14.790.234 ZAR 32.366 ZAR 1.914.751 ZAR 71.251 ZAR 331.047 ZAR 17.139.648 Year 10 ZAR 15.342.231 ZAR 35.262 ZAR 1.953.046 ZAR 71.251 ZAR 333.330 ZAR 17.735.120 Year 11 ZAR 15.690.846 ZAR 35.745 ZAR 2.011.637 ZAR 72.676 ZAR 250.000 ZAR 18.060.905

ZAR 4.146.918 ZAR 4.651.768 ZAR 1.355.508 ZAR 1.369.063 ZAR 91.320 ZAR 102.735 ZAR 5.593.746 ZAR 6.123.566

ZAR 5.167.621 ZAR 5.982.165 ZAR 1.375.908 ZAR 1.388.817 ZAR 114.150 ZAR 132.414 ZAR 6.657.679 ZAR 7.503.396

ZAR 6.715.325 ZAR 6.951.260 ZAR 1.402.706 ZAR 1.416.733 ZAR 148.395 ZAR 152.961 ZAR 8.266.425 ZAR 8.520.954

ZAR 7.098.049 ZAR 7.262.632 ZAR 1.430.900 ZAR 1.440.916 ZAR 155.244 ZAR 157.527 ZAR 8.684.193 ZAR 8.861.075

ZAR 7.507.862 ZAR 7.772.747 ZAR 1.451.003 ZAR 1.465.513 ZAR 162.093 ZAR 166.659 ZAR 9.120.958 ZAR 9.404.919

ZAR 7.938.379 ZAR 1.473.937 ZAR 168.942 ZAR 9.581.258

ZAR ZAR ZAR ZAR ZAR ZAR

288.193 1.440.963 566.779 267.200

ZAR 322.168 ZAR 356.857 ZAR 1.073.893 ZAR 951.618 ZAR 633.597 ZAR 701.818 ZAR 85.911 ZAR 83.267 ZAR 267.200 ZAR 267.200 ZAR 34.445 ZAR 41.250 2.563.134 ZAR 2.417.215 ZAR 2.402.009

ZAR 411.703 ZAR 686.172 ZAR 809.683 ZAR 82.341 ZAR 267.200 ZAR 34.445 ZAR 2.291.545

ZAR 461.163 ZAR 768.605 ZAR 906.954 ZAR 76.861 ZAR 267.200 ZAR 34.445 ZAR 2.515.228

ZAR 476.921 ZAR 794.869 ZAR 937.946 ZAR 77.897 ZAR 16.800 ZAR 41.250 ZAR 2.345.683

ZAR 486.739 ZAR 811.232 ZAR 957.254 ZAR 77.878 ZAR 13.236 ZAR 34.445 ZAR 2.380.785

ZAR 497.825 ZAR 829.709 ZAR 979.056 ZAR 77.993 ZAR 6.000 ZAR 41.250 ZAR 2.431.833

ZAR 514.189 ZAR 532.054 ZAR 856.982 ZAR 886.756 ZAR 1.011.239 ZAR 1.046.372 ZAR 80.556 ZAR 83.355 ZAR 1.980 ZAR ZAR 34.445 ZAR 34.445 ZAR 2.499.392 ZAR 2.582.982

ZAR 541.827 ZAR 903.045 ZAR 1.065.593 ZAR 84.886 ZAR ZAR 34.445 ZAR 2.629.797

ZAR 1.449.539 ZAR 2.198.152 ZAR 2.835.532 ZAR 3.928.507 ZAR 4.590.449 ZAR 5.030.745 ZAR 5.159.667 ZAR 5.301.265 ZAR 5.519.297 ZAR 5.747.219 ZAR 5.849.849 ZAR 405.871 ZAR 615.483 ZAR 793.949 ZAR 1.099.982 ZAR 1.285.326 ZAR 1.408.608 ZAR 1.444.707 ZAR 1.484.354 ZAR 1.545.403 ZAR 1.609.221 ZAR 1.637.958

Net income ZAR 1.043.668 ZAR 1.582.669 ZAR 2.041.583 ZAR 2.828.525 ZAR 3.305.123 ZAR 3.622.136 ZAR 3.714.960 ZAR 3.816.911 ZAR 3.973.894 ZAR 4.137.998 ZAR 4.211.892

NPV model, Payback period and IRR model

Investment 0 ZAR -16.974.935,00 123456 7 8 9 10 11 Incremental cash flow NPV Year
Project Cost Less year 1 Cash Flow Less Year 2 Cash Flow Less Year 3 Cash Flow Less Year 4 Cash Flow Less Year 5 Cash Flow Less Year 6 Cash Flow Cash Flow Year 7 Payback Period 16.974.935,00 1.310.867,84 15.664.067,16 1.849.869,35 13.814.197,81 2.308.782,97 11.505.414,84 3.095.724,71 8.409.690,12 3.572.323,42 4.837.366,70 3.622.136,06 1.215.230,65 3.728.196,25 0,33 6,33 6 years 118 days ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR

Cash flow ZAR 1.310.867,84 ZAR 1.849.869,35 ZAR 2.308.782,97 ZAR 3.095.724,71 ZAR 3.572.323,42 ZAR 3.638.936,06 ZAR 3.728.196,25 ZAR 3.822.910,62 ZAR 3.975.874,02 ZAR 4.137.997,59 ZAR 4.211.891,61 ZAR 35.653.374,45

PV factor 12%

Present value of cashflow 1 ZAR -16.974.935,00 0,8929 ZAR 1.409.056,77 0,79727041 ZAR 1.687.876,75 0,711882749 ZAR 1.833.797,84 0,635640107 ZAR 2.137.609,82 0,567563051 ZAR 2.179.171,63 0,506777048 ZAR 1.852.643,13 0,452501227 ZAR 1.693.002,68 0,404038345 ZAR 1.547.026,71 0,360765838 ZAR 1.435.073,84 0,322127817 ZAR 1.332.964,13 0,287627928 ZAR 1.211.457,66 ZAR 1.344.745,96

Investment ZAR -16.974.935,00 Cash flow ZAR 1.310.867,84 ZAR 1.849.869,35 ZAR 2.308.782,97 ZAR 3.095.724,71 ZAR 3.572.323,42 ZAR 3.638.936,06 ZAR 3.728.196,25 ZAR 3.822.910,62 ZAR 3.975.874,02 ZAR 4.137.997,59 ZAR 4.211.891,61 12,4%

Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 IRR

http://www.yuppiechef.co.za
http://www.khusela.com/game-reserve-villa.php