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Presentation on theme: "Chinmaya Kiran Vadali SUSTAINABLE DEVELOPMENT IN RURAL INDIA THROUGH TOURISM."— Presentation transcript:


2 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

3 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

4 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

5 Existing resources and shortcomings Government owned resorts Few destinations Fewer accommodations Bureaucratic hassles in improving Only the already well-known products promoted Leave a lot to be desired

6 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

7 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, horticulture, cooking, crafts etc.)

8 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.)

9 Revenue Estimates (INR) Year Planned Capacit y Occupancy Number Occupancy Average cost per room night Price of a Package Package Demand Sale of Handicraf ts Total Revenue In- season 120 days Off- season 240 Days In- season Off- season In seasonOff Season Average price per person day In Season Off Season 2010-1140025%20%120001920060004000100048007680400000 161,680,000 2011-1240030%20%144001920060004000100057607680400000 177,040,000 2012-1360030%20%2160028800600040001500864011520600000 275,640,000 2013-1460040%30%28800432008000600015001728025920960000 555,360,000 2014-1560050%35%36000504008000600015002160030240960000 669,120,000

10 Costs & Profit Estimates YearLandConstructionDepreciationEmployeesRaw materialHandicraftsUtilities 2009-10 60,000,000 40,000,000 2010-11 10,000,000 25,920,000 200,000 15,552,000 2011-12 20,000,000 10,000,000 11,500,000 25,920,000 200,000 15,552,000 2012-13 12,000,000 13,225,000 38,880,000 300,000 23,328,000 2013-14 12,000,000 15,208,750 51,840,000 480,000 31,104,000 2014-15 12,000,000 17,490,063 51,840,000 480,000 31,104,000

11 Profit Estimates Year Maintenance + RenovationPromotion Vocational TrainingTotal Cost Operating profit Cost of Capital Profit Before Tax 2009-10 10,000,000 (10,000,000) 2010-11 5,184,000 1,000,000 250,000 68,106,000 93,574,000 10,000,000 83,574,000 2011-12 5,184,000 1,000,000 250,000 69,606,000 107,434,000 12,000,000 95,434,000 2012-13 9,331,200 1,000,000 250,000 98,314,200 177,325,800 12,000,000 165,325,800 2013-14 12,441,600 700,000 250,000 124,024,350 431,335,650 12,000,000 419,335,650 2014-15 12,441,600 700,000 250,000 126,305,663 542,814,338 12,000,000 530,814,338

12 References: Government of India initiative for rural tourism CII conference about promotion of rural tourism Zainabad resort (hosted ERI- an IIMA elective) Sikkim home-stay resources

13 Thank You


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