SUSTAINABLE DEVELOPMENT IN RURAL INDIA THROUGH TOURISM

Chinmaya Kiran Vadali

Athidhi- Enjoy, Enrich

Vision:
To showcase and promote the best of authentic

Indian traditions through premium hospitality destinations Ensure holistic development by preserving cultural diversity and through eco-tourism Harmonizing with surroundings and enhancing the quality of life by harnessing local creativity

Context of CINE
Sustainable development is a three step process
Seed Development (May or may not be innovative) Irrespective of sustainability, basic needs like food, shelter and clothing NEED to be fulfilled. INNOVATION Innovation is expressed in cases where existing processes are sub-optimal Sustainability Achieved by harnessing local resources and culture

The idea:
Cottage style resorts made

with reinforced local material

In villages (Pochampalli,

Zainabad, Guruvayoor and so on) Closer to natural assets like waterfalls, forest reserves etc. in about a 100 mile radius. Promoting local culture in all respects
Architecture (design, construction) Food, hospitality and Entertainment Employee base

Eco tourism

Value Proposition:
Unique get away from city life Exposure to exotic traditions and

culture Natures embrace, meeting PEOPLE

http://www.desertcoursers.net/resort.htm

Existing resources and shortcomings

Government owned

resorts
Few destinations Fewer accommodations

Bureaucratic hassles in

improving Only the already wellknown products promoted

Leave a lot to be

desired
http://www.exploreruralindia.org/

Continued
Private accommodation homestay tourism in

Sikkim
Dedicated space in home for tourists stay: Source

of income for local families.

Not scalable model

House etc. are necessary investments before families can

earn Culture promotion is not organized.

Resorts like Zainabad Resort: Precedent for our model but very few in number

http://www.nivalink.com/sikkim/homestay.html

Operating Model
4 eco-friendly resorts (initially) spread across India to cover all

tourist seasons Focusing 4-5 day packages Less than 100 km from prominent tourist spots, close to traditional villages Local architecture (Mud houses etc.) with basic modern amenities and necessities (W/C, Purified Water, optional A/C, power outlets, emergency phones, discouraging mobiles & internet), no plastic zones, alternate energy, rainwater harvesting Managers recruited centrally, local villages form the employee base Local cuisine, entertainment, arts & crafts Complementary nature walks and tours Company owned sales offices, exclusive online/telephone booking, promotion through social networking sites and liaising with government Sales personnel for corporate marketing Offering vocational training to villagers in off-season (hospitality,

Revenues and Costs Sources

Three key sources of revenue:
Holiday package sales Sales of local art, handicrafts etc. at resorts and at

branch offices (boutiques) Massages and art- of- living packages

Key Costs:

Infrastructure depreciation Initial Capital investments Advertisement and promotions Employee base (in branches and at resorts) Resort maintenance and vocational training related expenses Raw material costs (for food, utilities, massages etc.)

Revenue Estimates (INR)

Planne d Year Capaci ty Occupancy Number Occupancy Average cost per room night Price of a Package Package Demand Sale of Total Handicra Revenue fts

InOffInAverage In Off season OffIn Off season seaso price per Seaso Seaso 120 season season Season 240 Days n person day n n days 201011 201112 201213 201314 201415 400 400 600 600 600 25% 30% 30% 40% 50% 20% 20% 20% 30% 35% 12000 19200 14400 19200 21600 28800 28800 43200 36000 50400 6000 6000 6000 8000 8000 4000 4000 4000 6000 6000 1000 1000 1500 1500 1500 4800 7680 5760 7680 400000 400000 161,680,000 177,040,000 275,640,000 555,360,000 669,120,000

8640 11520 600000 17280 25920 960000 21600 30240 960000

Costs & Profit Estimates

Constructio Depreciatio Employee n n s Raw material

Year

Land

Handicrafts Utilities

60,000,00 2009-10 0 40,000,000

2010-11 2011-12 2012-13 2013-14 20,000,000 10,000,000 10,000,000 25,920,000 10,000,000 11,500,000 25,920,000 12,000,000 13,225,000 38,880,000 12,000,000 15,208,750 51,840,000 200,000 200,000 300,000 480,000 15,552,000 15,552,000 23,328,000 31,104,000

2014-15

12,000,000 17,490,063 51,840,000

480,000

31,104,000

Profit Estimates
Year
Maintenance + Vocational Operating Renovation Promotion Training Total Cost profit Cost of Profit Capital Before Tax 10,000,00 (10,000,00 0 0) 10,000,00 68,106,000 93,574,000 0 83,574,000 107,434,00 12,000,00 69,606,000 0 0 95,434,000 177,325,80 12,000,00 165,325,80 98,314,200 0 0 0 124,024,35 431,335,65 12,000,00 419,335,65 0 0 0 0 126,305,66 542,814,33 12,000,00 530,814,33

2009-10

2010-11

5,184,000

1,000,000

250,000

2011-12

5,184,000

1,000,000

250,000

2012-13

9,331,200

1,000,000

250,000

2013-14 12,441,600

700,000

250,000

References:
http://www.exploreruralindia.org/
Government of India initiative for rural tourism

http://rbh.in/Home/thrust_areas/rural_tourism.asp

x
CII conference about promotion of rural tourism

http://www.desertcoursers.net/resort.htm
Zainabad resort (hosted ERI- an IIMA elective)

http://www.nivalink.com/sikkim/homestay.html
Sikkim home-stay resources

Thank You