Business Plan for Budget Hotel Sri Lanka Assignment

Business Plan for Budget Hotel Sri Lanka - Assignment Example The introduction and popularity of budget holiday package in the country is a great fillip to venture budget hotels as an indispensable element of tourism industry. A budget holiday package allows travelers to plan and book their own itineraries in conformity to their needs and preferences. An official source estimates that in the UK there were 22.5 million budget holiday makers in the year 2000 (Mintel). This business plan covers almost all aspects of the proposed business - both qualitative and quantitative information- incorporated to substantiate the viability of the proposed project and business prospects. The Hotel is proposed to be started in a six storied building at Narahenpita, Colombo-05, Sri Lanka. The location is found favourable for a budget hotel as the property has all basic amenities such as three phase electricity, passenger lift and AC rooms (Appendix 3). The hotel will be set up as a joint partnership business venture by Mr. I.T.H. Gamage and Mr. E. Bojang with eq ual share and it is proposed to be named as 'Budget Hotel Sri Lanka'. The business opportunity was identified after an extensive research into the market to venture a small budget hotel in Colombo City, Sri Lanka. It has been decided as part of the strategy that the hotel will offer simple but comfort, safe and secure place for an exceptional experience to customers. The hotel will be targeting both domestic and international tourists who visit and plans to stay in Colombo. This region is the most sought after place for night stay as one of the official sources report that there were 982362 foreign and 380251 local guests who had opted this region for their night stay in 2007(Appendix 04). The hotel is mainly targeting low profile business travellers as well as those who visit the country for purposes like leisure, sport, and sightseeing (Appendix 13). The SWOT and PEST analysis affirm that though there are enough number of hotels and other locally generated accommodation in the cit y, the competition can, to a great extent, be mitigated through the cost leadership strategy (Appendix 9 and 10). Furthermore, the Porter's Five Forces Model (Appendix 11) reaffirms the approach as the city is seriously lagging behind in meeting the travellers' needs in an economical manner. Though the country has faced a decline in tourist arrival during 2006 and 2007 period owing to the internal political hardships (LTTE problem and probability of outbreak of a war), it is estimated that an annual increase of 20% is expected (Appendix 15), once the problem is solved. Mintel's Forecast report also reiterates this estimate (Appendix 17). All these pin point the possibilities for the successful operations of the hotel and the opportunities to flourish in future. 2. MISSION STATEMENT The mission of the venture is to become the leader in the budget hotel industry in Sri Lanka, while ensuring growth in the business and its profits. This will be met through the achievement of the following objectives. 2.1. Objectives To be the leader in the budget hotel industry in Sri Lanka by providing standard, safe and comfortable accommodation to customers at affordable prices. Promoting responsible and sustainable tourism by pursuing environmentally friendly operational policies. Expanding the marketing and advertising campaign within Sri Lanka and our major international source markets. Ensuring fair