Business Plan - Tour Company (JST)

Table of Contents

1.0 Executive Executive Summary…………………… Summary……………………………………………… ………………………………….…..……… ……….…..……… 3 1.1 Objectives…………… Objectives………………………………………… ………………………………………………...…… …………………...……… …4 1.2 Mission……………………… Mission…………………………………………………… ……………………………………….…..……4 ………….…..……4 1.3 Keys to Success………………………… Success…………………………………………………… ……………………………...……... …...……... 4 . 2.0 Company Company Summary………………………… Summary……………………………………………………… ………………………………...………. …...………. 4 2.1 Company Ownership…………………… Ownership……………………………………………… ………………………………..…... ……..…... 5 2.2 Company Locations Locations and and Facilities………… Facilities……………………………………. ………………………….……... ……... 5 3.0 Services……………………………………… Services………………………………………………………………… …………………………….…….…… ….…….…… 5 3.1 Service Descriptio Description………………………… n…………………………………………………. ……………………….….…….. ….…….. 5 3.2 Competiti Competitive ve Compariso Comparison………………………… n………………………………………….……. ……………….…….……. ……. 8 3.3 Sales Sales Literatur Literature…………………… e………………………………………………… …………………………………….……. ……….……. 8 3.4 Technology………………… Technology…………………………………………… …………………………………….…………… ………….……………8 8 3.5 Future Services…………………………………………… Services…………………………………………………….…………. ……….…………. .9 4.0 Marketing Marketing Analysis Analysis Summary Summary…………………………… ……………………………………..……..… ………..……..…………... ………... 9 4.1 Market Segmentation……………………………………..……………………9 4.1.1 4.1.1 Schoo Schools ls……… …………… …………… ……………… ……………… ……………… ……………… ……………… ……………… ……… 9 4.1.2 4.1.2 To Tour uris ists ts……… ……………… ……………… ……………… ……………… ……………… …………. ….……… ……………… ……….. 10 4.1.3 4.1.3 Local Local Organi Organizat zations ions………… …………………… …………………… …………………. ………..……. .…….………. ………. 11 4.2 Target Target Market Market Segment Segment Strategy Strategy………… …………………… …………………. ………..……… .…………….. …….. 11 4.2.1 Market Market Needs…… Needs……………… …………………… …………………… ……………….… …….…………. ………. 11 4.2.2 4.2.2 Marke Markett Trends Trends………… …………………… …………………… …………………… ………….……… .………… … 11 4.2.3 Market Market Grow Growth… th…………… …………………… …………………… …………………… ………………… ……… 14 4.3 Service Service Business Business Analysis Analysis………………………… ……………………………………………..… …………………..……. …. 15 4.3.1 Business Business Partici Participants……………… pants…………………………………………… ……………………………… … 4.3.2 4.3.2 Distri Distributi bution on Patter Patterns…… ns……………… …………………… …………………… …………………… ………… 4.3.3 Competit Competition ion and Buying Buying Patterns Patterns……………………….… ……………………….………… ……… 4.3.4 4.3.4 Main Competit Competitors ors………… …………………… …………………… …………………… ………………… ………

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5.0 Strategy Strategy and Implem Implementatio entation n Summary………… Summary…………………………………… ………………………………….. ……….. 17 5.1 Value Proposition………… Proposition…………………………………… …………………………………………………. ………………………. 17

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5.2 Competitive Competitive Edge……………………………………… Edge……………………………………………………………. ……………………. 17 5.3 Marketing Strategy Strategy…………………………… ……………………………………………………… ……………………………... …... 17 5.3.1 Pricing Strategy………………… Strategy…………………………………...………… ………………...……………….. …….. 19 5.3.2 Promotion Promotion Strategy……………..………… Strategy……………..……………..…………………... …..…………………... 20 5.3.3 Distribution Distribution Strateg Strategy…………………………. y…………………………...………………….. ..………………….. 20 5.3.4 Marketing Marketing Programs…………………………. Programs…………………………...…………………... ..…………………... 21 5.4Sales 5.4Sales Strategy…………………… Strategy…………………………………………….. ………………………..…………………. …………………. 21 5.5 Strategic Strategic Alliance Alliances……………………… s…………………………………………...… …………………...……………… …………… 22 5.6 Milestones……… Milestones…………………………………… ……………………………………………..…… ………………..……………. ………. 23 6.0 Management Management Summary…………………… Summary………………………………………….. ……………………...……………….… .……………….… 23 6.1 Organizatio Organizational nal Structure… Structure……………………………… ………………………………...………………... …...………………... 23 6.2 Personn Personnel el Plan………… Plan…………………… …………………… …………………… ……………..… …..…………… …………….. ….. 23 7.0 Financial Financial Plan………………………………………… Plan………………………………………………………..……… ……………..……………… ……… 24 7.1 Important Important Assumptions………… Assumptions……………………………….. ……………………...……………………. .……………………. 25 7.2 Projected Projected Profit Profit and Loss……………… Loss…………………………...………… …………...……………………….. …………….. 26 7.3 Projected Projected Balance Sheet………………………… Sheet………………………………...………………… ……...…………………… … 27 7.6 Proje Projected cted Cash Cash Flows Flows………… …………………… …………………… …………………… …………………… ……………. …. 28

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1.0 Executive Summary

Jamaica Story Tours Ltd. (JST) situated at XX Ruthven Road, Kingston XX, began operations in January 200X. It is the result of collaboration between Our Story Tours, a small tour guide company started in 1997 by XXXXXX, XXX Holdings Ltd., and other partners. OST was a small firm with a permanent staff of two  persons,  persons, and four part time time persons persons including including three tour guides guides and a commissione commissioned d sales/ marketing executive. The company focused on tour packages for schools in the Kingston Metropolitan Area i.e. Kingston, St. Andrew, and the urban centers in St. Catherine. OST acquired a loyal customer base, but was unable to parlay its compara comparative tive advantag advantagee of being being able able to provide provide relevan relevantt inform informatio ation n through through research and study, into a viable business. The creation of JST was to ensure adequate capital funding, management and organizational support, and financial/ investment advice. The capital funding which has already commenced will allow for marketing and positioning of the company, tour guide training, procurement of two tour buses, securing of adequate insurance coverage, and ensure certification within the various industry organizations. JST provide providess service servicess in profes professio sional nal tour guiding guiding,, tour guide guide trainin training, g, event event management, tour planning, information management, and hotel booking/ transfer  services. services. Its product line includes numerous tour packages to sites all over Jamaica Jamaica  based on school curricula, and focused on social studies, history, history, geography, geography, and  biology.  biology. Other edutainment edutainment tours are being planned for the tourist and local social organization markets. The main target markets are the school curriculum driven school tour market, the tourism market, and the local professional, business, and social organization tour  market. Market trends indicate enormous growth in the tourist market with the school market set to grow as the new mandates of the secondary school curriculum are are enfor enforce ced. d. Th Thee incre increas asing ing thrus thrustt towa toward rdss team teamin ing g and and recr recreat eation ion among among  professionals  professionals is driving driving the movement movement towards edutainment edutainment options. options. The Professional Tour Guiding Business is poised for tremendous growth as it is still in its infancy. JST plans to be a first mover and corner the professional tour  guid guidin ing g mark market et by diff differ eren enti tiat atin ing g itse itself lf as bein being g full fully y prof profes essi sion onal al and and knowl kno wled edge geabl ablee of the the sub subje ject ct matt matter er due due mainl mainly y to its its focus focus on train training ing and and continuous learning. Shor Short-t t-ter erm m plans plans incl include ude for for a rever reversal sal in the the curr current ent finan financia ciall situ situat atio ion n by aggressively pursuing new markets in tourism and expanding our share of the school market. market. In the medium term, term, i.e. three years time, time, a combination of capital investm investment entss in additio additional nal vehicle vehicless and the trainin training/ g/ employm employment ent of additio additional nal guides, will ensure adequate revenues and substantial profits to the shareholders.

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1.1 Objectives Objectives • •

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Sales of JA$50M from tours and special events by the end of year three. Develop strong strategic alliances with suppliers, customers, regulators, and comp compet etit itor orss i.e. i.e. hote hotels ls,, othe otherr tour tour comp compan anie ies, s, educ educat atio ion n and and othe other  r  government agencies. Profit after taxes of 15% by the end of year three.

1.2 Mission

Jamaica Story Tours Ltd. (JST) is a tour guiding company that specializes in histor history, y, cultur culture, e, and landform landform tour offerin offerings. gs. JST’s missio mission n is to become become the foremost provider of professional guided tours in Jamaica. JST seeks to ensure that its customers are educated and entertained by well-planned and relevant guided tours, which will enhance their knowledge base and sense of adventure. 1.3 Keys to Success •

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• • •

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Successfully position JST as tour guide specialists. Knowledgeable tour guides. o Use of Jamaica Tourist Board Approved destinations. o Develop a repeat-business base of loyal customers. Delivery of memorable experiences. o Reliable and comfortable transportation. o Maint Maintai ain n a curr current ent datab database ase with with cust custom omer er prof profil iles es,, cont contact act o information. Communicate the differentiation and quality of our offering through media and personal interaction i.e. testimonies of satisfied customers. Personal sales and follow up. o Presentations at PTAs and other organizational staff meetings. o Develo Develop p credibi credibilit lity y and associ associatio ation n with with import important ant travel travel and touris tourism m  bodies e.g. e.g. CTO, CHA, CHA, JHTA, JHTA, and AJAL. AJAL. Develop relationships with travel agents and tours both locally and abroad. Develop relationships with major event organizers. Ensure effectiveness of JST’s web site in generating interest in booking tours. Demonstrate JST’s efficiency in marketing events, managing transfers and accommodations before, during, and after major events.

2.0 Company Summary

JST is a professional tour guiding company. JST has positioned itself as a specialist in the field of curriculum driven tours for school children and currently generates the major majorit ity y of its its inco income me from from this this segm segment ent.. It specia speciali lize zess in prov provisi ision on of  curri curricul culum um drive driven n tour tourss for schoo schooll child childre ren n in the Kings Kingsto ton n and St. St. Andr Andrew ew

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metr metrop opol olit itan an area area.. JST JST shal shalll beco become me the the indu indust stry ry lead leader er with with rega regard rdss to edutainment tours for tourists and local social and business organizations, while expanding its student tour segment. 2.1 Company Ownership

JST is a limited liability company and is owned by XXX Holdings Ltd., XXXXXX and others. 2.2 Company Locations and Facilities

JST is currently located at XX Ruthven Rd., Kingston XX where it occupies a twofloor facility complete with foyer, clerical area, executive offices, a kitchenette and a conference room. 3.0 Services

JST provides guided tours and associated associated services to the educational, professional, professional, and tourism market segments. Services and products include pre-arranged guided tours, basic transportation, tour planning management, and customized packages. 3.1 Service Description Description

JST is a full service tour guide company, which currently focuses on guided tours for  curriculum driven school trips, and training for professional tour guides. We hope to quickly broaden our product to include exciting packages for local social, business and other groups, as well as stopover and cruise ship tourist tours. Services are to include: 1. Profes Professio sional nal tour guide service services, s, undertake undertaken n by personnel personnel who are highly trained trained,, and who are professional in their delivery and demeanor. They shall command respect and shall be adept at responding to the needs of guests whether it is information on the subject area, scheduling, safety, and security. 2. Tour Guide Guide Training Training Services Services which which will be a natural extension extension of our business business and which will allow for creation of a critical mass of professional tour guides. The guides will serve the expanding tourism product and will form a natural pool from which JST will draw as it enters expansion mode.

3. Hotel Bookings Bookings and and Ground Ground Transfers Transfers i.e. i.e. provision provision of each service service upon request request or  carry carry out both both activit activities ies as part part of vertic vertical al integra integration tion into vacation vacation planning planning inclusive of accommodation, transportation, and tours. 4. Event Manageme Management, nt, which will include include the the design, design, marketing, marketing, and implementati implementation on of events in collaboration with sponsors, and other partners. Events will range from cultural and historical commemorations, to fun events showcasing popular culture.

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5. Information Information Manageme Management nt and Research Research of subject subject areas areas or topics topics on the the history history and culture of Jamaica. This service is being sought after by CXC and CAPE teachers who will benefit from the time saved. Tours shall be focused on deepening the information base and knowledge of guests via interaction and story telling. The products to be offered include: 1. Cult Cultur uree and and Hist Histor ory y a. Play Playss i.e. i.e. Pan Panto tomi mime mess  b. Dance and Music Recitals Recitals c. Histo istori rica call Sit Sites es d. Commemoratio Commemoration n of cultural/ cultural/ historical historical events at at the actual actual historical historical sites. sites. e. Cult Cultur ural al Extr Extrav avag agan anza za f. Pirates Day. g. Heroes oes We Week. h. Cele Celebr brati ation on of Indep Independ enden ence ce i. Package Packaged d Historic Historical, al, Social Social Studie Studies, s, Biolog Biology, y, and Geogr Geography aphy Tours Tours:: i. History 1. Free Free vill villag agee sys syste tem m 2. Th Thee peo peopl plee who who came came 3. Resi Resist stan ance ce and and Rev Revol oltt 4. Colo Coloniz nizat ation ion and and Assim Assimil ilat ation ion ii. ii. Soci Social al Stu Studi dies es 1. Gove overnm nmeent 2. Cult Cultur uree & Soci Societ ety y 3. Blue Blue Mountai Mountain n Nation National al Park Park Resour Resource ce Area Area 4. To Tour uris ism m Feat Featur ures es 5. Jamaica Jamaica’s ’s Archite Architectur ctural al Herita Heritage ge iii. Geogr ography aphy 1. Conse onserrvati vation on 2. Lime Limest ston onee feat featur ures es 3. Tect Tecton onic ic Feat Featur ures es iv. Biology 1. Micro Micro organis organisms ms & the the Envir Environm onment ent 2. Spor Sports ts and En Ente tert rtain ainme ment nt a.  b. c. d. e. f.

Track Track and Fiel Field d events events ~ local local and inter internati national onal Caymanas Caymanas Park race race Day Crick Cricket et ~ loca locall and int inter ernat nation ional al Socce Soccerr ~ local local and and inte interna rnati tiona onall Golf Golf tou tourn rnam ameents nts Stage Stage Shows e.g. e.g. Reggae Reggae Sumfes Sumfest, t, Sting, Sting, Jazz Jazz Shows, Shows, Rebel Rebel Salute Salute (Jan 15, 2005), etc.

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g. Carnival 3. Mu Mult ltida iday y Pac Packag kaged ed To Tour urss a. Ten Ten (1 (10) Day Tour  our   b. Three (3) (3) Day Island Island SIP SIP Tour  Note:

i. Product Offerings Offerings will will be packaged specifically specifically for for different different groups groups and will vary across ages, nationalities, nationalities, tastes, perceived knowledge  base, etc. etc. ii. Our Our valu valuee addin adding, g, suppo support rt service servicess i.e. i.e. non revenu revenuee gener generat ating ing activities are: 1. Tour Tour planning planning and and package package desi design gn based based on the the needs needs of the the guest and to include: a. Identif Identificat ication ion of the the attract attraction/ ion/ point point of intere interest st  b. Duration Duration of tour  tour  c. Plannin Planning g of tour tour route routess and attract attraction ion stop stopss d. And all all arr arrange ngements nts for lunch, nch, payments nts to attractions and hotels, and accommodations (where necessary) 2. Relatio Relationshi nship p manageme management nt which which is concerned concerned with with building building long term relationships with: 1. Suppliers a. Attr Attrac acti tion on owne owners rs  b. Site guides guides c. Caretakers d. Refr Refres eshm hmen entt vend vendor orss e. Cultu ultura rall per perform former erss i.e. i.e. folk folk danc danceers, rs, ment mento o  bands f. Trave Travell agent agentss (loca (locall and and over overse seas) as) g. Hotels h. Other Other Tour Tour compa companies nies (local (local and and overse overseas) as) 2. Customers a. Schoo Schools ls,, par parent ents, s, teach teacher erss  b. Tourists Tourists c. Local cal groups ups 3.2 Competitive Comparison

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The industry is competitive in that major tour guiding companies located on the north coast of Jamaica provide complete destination management services and in somee cases som cases has formed formed allianc alliances es with with internat internationa ionall tour tour operat operators ors.. Destina Destination tion management services include air and land transfers, concierge services, tours and event management. Some existing alliances include First Choice with Tropical Tours, Thomson Holidays with Tour Wise, and Virgin Holidays with Tour Wise and Jamaica Tours. Sun Ventures offers educational tours and has an established website. JST has positioned itself as the premiere professional tour guiding company in Jamaica which focuses on knowledge transfer in a safe, entertaining atmosphere. 3.3 Sales Literature

JST JST pub publi lish shes es a calend calendar ar of event eventss deve develop loped ed in conju conjunct nctio ion n with with schoo schools ls.. Promotional letters for sponsors are generated for each event. JST will maintain a databas databasee from from which which custom customer/ er/ contact contact inform informati ation on will will be drawn. drawn. Additi Additional onal literature such as direct mail, print ads, sales promotion materials will be utilized as needed. needed. Advert Advertori orials als in Air Jamaica Jamaica’s ’s “Sky Writing Writings” s” and the major major industr industry y magazine, “Destination Marketing” are to be pursued. 3.4 Technology

JST will create a computerized platform for our clients’ database and accounting system, which will allow linkages to and compatibility with other software, and other database platforms. Separate Training Programs will be designed for: i. ii.

Ongo ngoing ing staff aff traini aining ng.. JST’s JST’s serv service ice offering offering as an an Accre Accredite dited d Tour Tour Guid Guidee Traini Training ng Orga Organiza nizatio tion. n. I Forres Forrester ter Resear Research ch (highl (highlight ighted ed in the U.S. U.S. Travel Travel Industr Industry y Survey Survey for 2003) 2003) indicates that: … In 2002, about 26M U.S. households booked leisure travel online, an increas increasee of 12% over the previous previous year. year. They They spent spent U.S.$22. U.S.$22.6 6 billion, billion, almost 30% of their total leisure travel budgets for the year online. It is  predicted  predicted that by 2007, the number of U.S. households buying leisure trips online will jump by 1/3 over the 2003 level, and their online travel spending will will rise rise to almo almost st U.S. U.S.$50 $50 billi billion. on. Betw Betwee een n Janua January ry and May May 2003 2003,, consumers spent U.S.$13 billion on online travel purchases, a 28% increase over the comparable period a year earlier. Traditional travel agencies will continue to lose share as hotel sales move online. They will represent just 18% of hotel sales in 2005, down from 21% in 2001.

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JST has developed a website, XXXXXX which details the company’s offerings from an educational and tour package standpoint. We must move to increase its abil abilit ity y to do full full book bookin ings gs as the the indu indust stry ry cont contin inue uess to migr migrat atee to onli online ne transactions. 3.5 Future Services

JST will increas increasee the num number ber of locatio locations ns national nationally ly as we more more aggres aggressive sively ly  pursue other segments segments of the tourism industry industry e.g. attraction attraction management, management, Destination Management, Accredited Tour Guide Training, and full service tours inclusive of accommodation, tours, and airline reservations. JST’s long-term goal is to establish itself as an internationally recognized provider of top of the line guided tours. This goal doesn’t prohibit JST from participating in additional segments. It does, however, provide a corporate focus and differentiated offering. 4.0 Marketing Analysis Summary

JST plans to focus its initial efforts on the school tour guide market in the Greater  Kingst Kingston on Metropo Metropolit litan an Area. Area. This This market market is largely largely untappe untapped d and is uniquel uniquely y  placed for full exploitation. exploitation. With the massive massive investment investment expected expected in additional additional rooms in the tourist industry over the next six years, it is important to establish a  presence  presence and be a first mover mover in the professi professional onal guided guided tour business business segment. segment. The local local groups groups presen presentt a sizeab sizeable le opportu opportunit nity y especial especially ly when when viewed viewed from from the standpoint of slow, steady economic growth. 4.1 Market Segmentation

Potential target markets are: a. Lo Local cal educa educati tiona onall organiz organizat ation ions. s.  b. Overseas Overseas educational educational organizatio organizations. ns. c. Tourists Tourists intereste interested d in culture, culture, heritage, heritage, leisure, leisure, and ecotours. ecotours. d. Local groups interested interested in culture, culture, heritage, heritage, leisure, leisure, and ecotours. ecotours. e. Tourist Touristss interest interested ed in sport sportss and enter entertai tainme nment. nt. f. Local Local groups groups inte interes rested ted in spo sports rts and and entert entertainm ainment. ent. g. Returni Returning ng residen residents ts and local localss living living overse overseas. as. All these groups have to some degree expressed interest in the guided tours product offering and form the basis for JST’s short, medium, and long-term marketing strategy.

4.1.1 Schools

a. Public Schools i.e. Primary Primary,, All Age, Junior High, and Secondary Secondary High:

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Public Schools. There are 214,000 children in 271 Schools Island wide. The initial thrust will be focused on schools in the parishes of Kingston, St. St. Andr Andrew ew,, and and St. St. Cath Cather erin inee i.e. i.e. 27% 27% of the the tota totall publ public ic scho school ol  population  population or 57,780. 57,780. Of these these schools schools we will will target target the primary primary and and high school children, which represent 77% of the 57,780 or 45,000.  b. Private i.e. i.e. High High School, and and Preparatory Preparatory School: School: Private Schools. Schools. There are 48,000 children attending private school in the Kings Kingston ton,, St. St. Andre Andrew, w, and St. St. Cath Cather erine ine regi region. on. We will will focus focus on Kinde Kinderg rgart arten, en, Prep Prepara arato tory ry and and privat privatee high high schoo schooll child childre ren, n, which which represent 44% of that population i.e. 21,120. There are thus a total of 66,000 children earmarked for tours annually.  Note: School statistics detailing the school population by region and school type are taken from the Ministry of Education Website, http://www.moec.gov.jm/projects/. 4.1.2 Tourists

This important market consists of: 1. Cruise Ship hip Passenge ngers i.e. Families; Groups Organizations, Learning Institutions, and Conventions.

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Churches,

2. Stop Stop Over Over Pass Passen enge gers rs i.e. i.e. Fami Famili lies es;; Busi Busine ness ss trav travel eler ers; s; Grou Groups ps –  Churches, Organizations, Learning Institutions, and Conventions. 3. Returni Returning ng residen residents ts and Locals Locals Residi Residing ng Oversea Overseas. s. JST’s plan is to tap the vast potential of the stop over, cruise ship passenger, and locals locals residin residing g overse overseas as market market for its educati educational onal and entert entertainm ainment ent  product offerings. offerings. The following following is extracted extracted from the Tourism Sector Study –  Jamaica, found on the Profit Caribbean web site and JST business plan data. The largest market source for stopover visitors continues to be the United States of America, which accounted for approximately 73% of tourist arrivals during 2002, followed by the U.K. with 10%, and Canada, 8%. See Table 1, Annual Stopover Arrivals by Major Source Markets 1999 – 2003. Table 1 - Annual Stopover Arrivals by Major Source Markets 1999 - 2003 Market United States Canada United Kingdom Other European Caribbean Latin America Japan Other Total

1999 870019 100338 124930 83759 38023 15635 8411 7283 1248398

% Share 69.7 8.0 10.0 6.7 3.0 1.3 0.7 0.6 100.0

2000 942561 107492 135338 63641 43971 14703 7779 7205 1322690

% Share 71.3 8.1 10.2 4.8 3.3 1.1 0.6 0.5 100.0

2001 916681 111158 127320 53312 40845 14815 7859 4526 1276516

% Share 71.8 8.7 10.0 4.2 3.2 1.2 0.6 0.4 100.0

2002 925629 97413 125859 53230 41138 11864 4664 6569 1266366

% Share 73.1 7.7 9.9 4.2 3.2 0.9 0.4 0.5 100.0

2003 969699 95265 149714 68786 42500 12400 5100 6821 1350285

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% Share 71.8 7.1 11.1 5.1 3.1 0.9 0.4 0.5 100.0

The Key Hospitality Players in the Industry are: • • • • • • •

Ritz-Carlton Hotels and Resorts (American) Super Clubs (Jamaican) Sandals Resorts (Jamaican, includes the Couples chain) Riu Hotels (Spanish) Hilton Group (British) Wyndham International (American) Holiday Inn Sun Spree (American)

4.1.3 Local Organizations Organizations

These organizations consist of Churches, Businesses, Lodges, Service Clubs, Non gover governm nment ental al orga organiz nizat atio ions ns incl. incl. Citi Citizen zenss group groups, s, and Adul Adultt educa educati tiona onall institutions. 4.2 Target Market Segment Strategy

JST’s strategy in the short term will be to focus on: 1. Publ Public ic and and priv privat atee scho school olss in the the King Kingst ston on,, St. St. Andr Andrew ew,, and and St. St. Catherine metropolitan area where 27% of the public school population and 50% of the private school population is concentrated. 2. To Tour uris ists ts inte intere rest sted ed in cult cultur uree and and heri herita tage ge,, as well well as spor sports ts and and entertainment. 3. Local Local social, social, business business and profess professiona ionall groups, groups, interested interested in sports sports and entertainment, as well as culture and heritage. 4.2.1 Market Needs

The Ministry of Education has mandated that field trips be carried out as part of the school curriculum. Schools therefore need tours, which allow students to gain by experience, a better understanding of the subject material presented. Tourists and cruise ship operators have traditionally complained about a lack of new, innovative attractions which are exciting but secure, and which allow for an exciting look at Jamaica’s culture and history. This need will be further multiplied as the product is expanded expanded.. Local Local social, social, bus busines inesss and profes profession sional al groups groups,, require require interest interestingl ingly y  packaged and and promoted promoted tours, which which are educational educational and entertaining. entertaining. This This group is is yearning for refreshers and new lessons in history, geography and sociology. 4.2.2 Market Trends

As Jamaica’s economy slowly gains momentum and continues to register moderate growth, there will be an upward trend in foreign investment inflows and potential for increased business with overseas firms. Local businesses, especially those listed on the stock exchange, have been experiencing positive financials and are set to

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grow even more over the next few years. There will thus be a return to a larger  social and team building approach within firms. We foresee an upsurge in interest in tours. i.

Schools As the new school curriculum is implemented across secondary schools, there will be increased interest in the mandated field study component. If  JST is proactive and designs each tour to accurately reflect the course intent, then our tours will be synonymous with guided School Tours.

ii.

Tourists The sign signif ific icant ant grow growth th of U.S. U.S. arri arrival valss in the year year 200 2000 0 enable enabled d the destination to record an over 6% growth in visitor numbers. As a result of  considerably lower growth in the U.S. travel market in 2001, a consequence of lower economic growth and terrorist attacks, the performance of U.S. arrivals declined in 2001, but recovered in 2002. Performance of the U.K. and European markets were affected by the same factors.

Table 2: Hotel Occupancy by Type Type and size Category Category

 Ave  Averag rage Occup ccupancy ncy Occupancy All Inclusives Occupancy Non - All Inclusives Occupancy Hotels > 200 Rooms Occupancy Hotels > 100 Rooms < 200 Rooms Occupancy Hotels > 50 Rooms < 100 Rooms Occupancy Hotels < 50 Rooms  Ave  Ave. Len Leng gth of Stay tay (Days)

1999

2000

2001

2002

57.0

58.5

56.3

55.5

67.0

70.0

69.4

66.2

41.0

39.3

35.1

38.3

65.3

68.9

66.9

67.2

59.7

65.0

65.1

62.9

49.4

41.6

37.9

38.4

37.9

36.9

31.9

29.9

10.3

10.1

10.2

10.2

Source: Jamaica Tourist Board

There is a distinct positive correlation between hotel size and occupancy levels. levels. Also, Also, the all-inc all-inclus lusive ive sector sector of the hotel hotel industr industry y consist consistent ently ly outperforms the non all-inclusive group. For non all-inclusive and hotels under und er 100 100 room rooms, s, occupa occupanci ncies es are are belo below w level levelss requi require red d for for viab viable le operation.

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Table 3: Total Visitor Expenditure 1992 - 2002 1400

1333 1280 1197

1200

  s 1000   n   o    i    l 800    l    i    M 600    $    S 400    U

942

106 9

109 2

4

5

1233 23 3

1209

10

11

1131

972

858

200 0

1

2

3

6

7

8

9

 Year  Years s

Average visitor expenditure grew by 2% to 3% per annum over the period 1992 to 2000, in U.S. dollars. While the Jamaica Master Plan for Sustainable Tourism Development projected an average growth rate from the year 2000, of 8%, the downturn downturn in the tourism economy reflected reflected in successive successive declines of 7.5% and 2% respect respectivel ively y in 200 2001 1 and 2002. This reversal reversal of the mod modera erate te growth growth trend is directly related to the decline in performance of visitor arrivals as shown in Table 2.1 above. above. Expendit Expenditure ure perform performance ance improved improved in 200 2003 3 to US$1.3 US$1.329 29 billion, billion, a 9.85% increase in 2002. The U.S. Travel Industry Survey on Cruise Shipping Trends states: In 2002, 13 vessels entered service. In 2003, 15 ships are expected to debut. In 2004 and 2005, 16 new ships are scheduled to enter service. In all through 2007, 44 ships are scheduled to enter CLIA member line fleets. In 2003, more than 216,000 lower beds were added to CLIA member fleets, up 10% from 2002. this will rise again by 10% in 2004 with the addition of  239,000 beds. By 2005, 240,000 more beds will be added, for an increase of  2.8%. Currently, 24% of U.S. adults have taken a cruise. Having under-performed the Caribbean region as a whole for much of the 1990s,  between  between 1998 and 2000, the Jamaican Jamaican cruise industry industry recorded recorded 34% growth, growth, outperforming the Caribbean average growth rate of 27%. The economic slow down down in the USA USA subse subseque quentl ntly y adver adverse sely ly affe affecte cted d crui cruise se arri arrival valss in 200 2001, 1, compounded by the impact of the September 2001 terror attacks, which had the effect of diverting cruise business to destinations in even closer proximity to the USA, in particular the Bahamas and Mexico. Performance started to recover in 2002 and rebounded in 2003, with an almost 31% increase in arrivals (1,132,600  passengers)  passengers) over over 2002. The markets to be targeted for tours in history and culture, as well as sports and entertainment are the UK and other European markets, as individuals in these markets tend to spend a much longer time in Jamaica. They are more adventurous, outgoing and more interested in the culture of the people. 13

4.2.3 Market Growth

Based on the upward trends, we foresee clear growth in the local business and  professional  professional groups, interested interested in sports and entertainment, entertainment, as well as culture culture and heritage. In so far as the school tour market is concerned, the branding of JST as The School Trip Company will see phenomenal growth being experienced. According to Price Waterhouse Coopers, in their “Jamaica Hotel Industry – 2004 Report”, the tourism sector is set to boom over the next six years with an additional 5,100 rooms slated for construction to bring the total number of rooms to 21,000 (See table 4 below). JST is uniquely placed to capitalize on the tremendous benefits to be derived, especially in the Ocho Rios area, which, is slated for an additional 3,500 rooms over the next six years, thereby far surpassing Montego Bay as resort area with the most rooms. Also, with the advent, in another two years, of the Highway 2000 leg from Bushy Park, St. Catherine to Ocho Rios will become an easy commute from the south coast. Table 4: Projected room expansion in tourism over the next six years.

The 2004 Hotel Industry Report also indicates that: There are at least 15,966 (2003 - 15,419) hotel rooms available for  occupancy in Jamaica at 31 March 2004, an increase of approximately 3.5%. The number of hotel rooms in the island, including those unavailable for occupancy due to closure, refurbishing or other reasons is 16,844. We estimate that approximately 878 rooms or 5.2% of Jamaica’s hotel rooms are idle at March 2004. If these rooms were in operation, we estimate that this could create up to 1,100 jobs. A total of 4,998 (2003 - 5,077) or 31% (2003 - 33%), of the available rooms, are located in Montego Bay. Ocho Rios accounts for 4,028 (2003 -

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4,036) of the market, which is 25% (2003 - 26%) of the total. Negril’s room count has increased to 4,521 from 3,960 in 2003. This 14.2% increase is  primarily  primarily due to to the constructi construction on of the 420 420 room, room, Club Riu Riu Negril. Negril. Kingston is next with 1,544 rooms and the South Coast and Port Antonio follow with 474 and 401 rooms respectively. Kingston, the South Coast and Port Antonio account for 15% of available rooms island wide. We estimate that approximately 8,469 (53%) of the 5,966 rooms are operated on an all-inclusive basis while 7,497 (47%) are operated as European Plan (EP). Of the 9,927 rooms in the category of 100 rooms or more, 79.4% are all-inclusive and 20.6% are EP. Table 5. Share of Market by number of rooms

Again, it is clear from the Price Waterhouse Coopers report that the potential for  growth in the tour guide market is greatest in the Montego Bay, Ocho Rios, and  Negril  Negril areas as these areas areas command command the lions lions share share of hotel hotel rooms rooms island wide. JST expansion will thus be into hotels in Ocho Rios, then those in Montego Bay and Negril. 4.3 Service Business Analysis

Tour Tour guiding guiding internati international onally ly is a growing growing business business as the numb number er of persons persons inter interes este ted d in trav travel eling ing to histo histori ric, c, reli religi gious ous,, and and cultu cultura rall lly y stim stimul ulat ating ing site sitess worldwide is increasing. With the increase in terrorism in European and Middle Eastern Countries, we are already seeing a substantial increase in tour activity in the Latin American and Caribbean markets. It is clear therefore that the school market is set to be overrun by the stopover and cruise shipping tourist segment. 4.3.1 Business Participants

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JST has approxim approximatel ately y eleven eleven competi competitor torss in Jamaic Jamaicaa with with the vast majority majority focused mainly on transportation for tourists. Professional tour guiding is a niche segment which we hope to capture, thus differentiating ourselves from the regular  tour companies that do some tour guiding on occasion. 4.3.2 Distribution Distribution Patterns

The primary distribution pattern is currently from JST to the consumer. Thus, sales are conducte conducted d direct directly ly with with the schools schools and other other organiz organizati ations ons requir requiring ing tour  services. JST will increase the patterns to include JST to Industry Organizations,  bookings via via our web site, site, jamaicastorytours jamaicastorytours.com, .com, and joint ventures ventures with with preferred preferred suppliers/ travel agencies. 4.3.3 Competition and Buying Patterns

The main competitors to school guided tours are visits to the beach, and trips to muse mu seum ums, s, etc. etc. usin using g pare parent nts’ s’ tran transp spor orta tati tion on.. For For tour touris ists ts,, there here are are the the transportation tours to well established leisure sites i.e. Dunn’s River Falls, Green Grot Grotto to,, etc. etc. For the local local socia social, l, profe profess ssio ional nal,, and bus busine iness ss grou groups, ps, it is the  provision  provision of a rental car, JUTA JUTA bus, or the use of personal vehicles vehicles for group trips. The members of this group might opt to spend the money for a trip on other more  pressing  pressing concerns. concerns. 4.3.4 Main Competitors 1. Schools a. JUTA tours  b. Leisure Leisure for Pleasure Pleasure c. Sun Sun Ven Ventture ure Tou Tours rs 2. Tourists a. Jamai amaicca Tou Tourrs  b. My Jamaican Jamaican Places Places c. JUTA tours d. Tropi ropica call tour tourss e. Sun Sun Ven Ventture ure tou tours rs f. My Jam Jamai aica ca Esca Escape pess 3. Loca Locall Org Organ aniz izat atio ions ns a. JUTA tours  b. Leisure Leisure for Pleasure Pleasure c. Cosmo To Tours d. Grea Greatt Vac Vacat atio ions ns

 Note:

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1. JUTA JUTA tours are enlist enlisted ed by schools schools to transport transport school school groups groups with teacher teacherss doing the actual tour guide duties. 2. Leisure Leisure for Pleasure Pleasure Tours Tours routinely routinely hires hires a JST tour guide guide to do guided guided tours. tours. 5.0 Strategies and Implementation Summary

In order to reach its goal of becoming Jamaica’s premiere guide tour company, JST will adopt the following strategy: 1. Establ Establish ish JST’s JST’s reputatio reputation n as a different differentiate iated, d, specialty specialty provider provider of tour guide guide services, tour guide training services, and tour transportation services. This will  be done through through a marketing marketing program at the target markets, markets, utilizing utilizing the appropriate media. 2. Provide Provide unparal unparallel leled ed service service to the local and internat internationa ionall market market in order order to gain repeat business and build trust. 3. Aggres Aggressive sively ly promote promote products products and service servicess offered offered and position position the company company as the only logical choice in providing the high quality service required. 5.1 Value Proposition

JST’s value proposition emanates from its experience with and love of tour guiding. Its employees are confident in their ability to meet the needs of their customers  because they share their enthusiasm enthusiasm in visiting visiting new places and learning new and interesting things. The development of long term relationships and trust are an obvious by-product. 5.2 Competitive Edge

JST’s competitive edge is its focus, passion, and experience. JST will promote and  provide access to diverse guide touring options. JST provides provides a differentiate differentiated d offering with the management experience, capital, and commitment to make it work. 5.3 Marketing Strategy

JST provides much more than tour guiding, it provides adventure, discovery, and the efficient dissemination of knowledge. JST adheres to the theory that the goal of   business  business is to create create and keep keep customers. customers. Its Its marketing marketing strategy strategy will will reflect reflect this goal goal as it builds its reputation in the Jamaican market. JST will embark on a program of aggressively building relationships with both its supplie supp liers rs and custom customers ers.. This This will will be done through through its Custom Customer er Relati Relationsh onship ip Management system. The CRM is about the automation of manual systems which capture customer likes, dislikes, dislikes, family status, economic levels, levels, demographics, demographics,  birthdays,  birthdays, anniversaries, anniversaries, and types of travel customer customer is interested in taking in the future. These databases can be used to systematically keep in touch with customers

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in a planned and scheduled way. These databases also allow for quick searches for  qualified candidates to match promotions, new tours, etc. Cycle Cycle marketi marketing ng will will also also be practic practiced ed among among the differe different nt target target market marketss i.e. i.e. starting with the initial booking, which generates a thank-you-for-your-bookingwe-value-your-business email. When clients return from a trip, they are greeted with a welcome-home email, a welcome-home direct mail piece, and a phone call. The email is more than a thank you; it also invites the customer to review the trip  by clicking on a link embedded in the email, which can then be posted on the web site. The reviews are edited to ensure proper language and post them as being written by the customer. It is important to contact a customer within 3, 6, or 12 months after their last tour as this is when they will want to book another. “Don’t touch a client unless you have something to sell to him”. Schools

1. A database database to be developed developed of all schools, schools, contact contact persons, persons, all tours done done with with each school over the last six months (longer if information is available). 2. Matrix Matrix to be developed developed which shows schools vs. attracti attractions ons and will will show show distance and cost of transportation and guide service. 3. Develop concise, concise, comprehensiv comprehensivee school school calendar, calendar, which which would would have have been been generated after considering the various competing events for the year. 4. Determine Determine the extent of the market to be penetrated penetrated and timing timing over each each year  of the 3 – yr. planning period. 5. Develop sales contact plan for for schools schools through through direct direct presentat presentation ion to teachers teachers and principals, or via school groupings. Contacts must be done at least four  times per year with each school contact and each contact must be an attempt at a sale. Tourism

1. Target and and set up tour tour desks in the larger, larger, all-inclus all-inclusive ive and EP EP hotels hotels (incl. RIU) and develop contact listings and databases of size, philosophy, room types, target markets. 2. Determine Determine the level of of market market penetration penetration to to be accomplishe accomplished d over each year year of  the three-year plan period. 3. Develop matrix matrix for for hotels hotels / attractions attractions complet completee with distance, distance, length length of tour, and costing. 4. Develop marketing marketing strategy strategy for for each of the hotels and the attractions attractions and and  package each each plan for for use i.e. i.e. advertising advertising strategy, strategy, monies monies to be spent, spent, results results expected vs. results achieved, the resource, and the schedule required to achieve the results. The pricing, promotional, sales and distribution strategies will flow from this matrix. Local social, business, or professional organizations

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1. Target the various various associati associations ons i.e. i.e. churches, churches, lodges, lodges, companies, companies, service service clubs,  professional  professional societie societiess e.g. Jamaica Jamaica Instituti Institution on of engineers, engineers, Jamaica Jamaica Geologic Geological al Society, etc. Develop contact listings and databases of sizes, philosophy, interests, etc. 2. Determine Determine the level of of market market penetration penetration to to be accomplishe accomplished d over each year year of  the three-year plan period. 3. Develop matrix matrix for for organizations organizations / attractions attractions complete complete with with distance, distance, length length of  tour, and costing. 4. Develop marketing marketing strategy strategy for for each of the associations associations and package package each each plan for use i.e. advertising strategy, monies to be spent, results expected vs. results achieved, the resource, and the schedule required to achieve the results. 5. Develop sales sales contact contact plan plan for associatio associations ns and organizatio organizations ns whether whether via direct direct  presentation  presentation to manager managerss or directors, directors, or to to group organizatio organizations ns e.g. PSOJ, PSOJ, JEF, JEF, Lodges, etc. Contacts must be done at least four times per year with each contact and each contact must be an attempt at a sale. 5.3.1 Pricing Strategy

JST’s pricing shall be determined by the market and as such shall be competitive. Price elasticity of demand varies across target segments. Schools are usually price sensitive with the degree of elasticity decreasing as you move to tourist, and then  business  business traveler. traveler. Each tour will have to be priced based on size of bus, comfort comfort level of bus, distance to be traveled, length of tour, type of service provided i.e. allinclu inclusi sive ve,, trans transfe ferr only, only, tour tour guidi guiding ng only, only, or trans transfe ferr and tour tour guidi guiding, ng, and competitor pricing. The average price for school tours is set at JA$821/ person for a full trip. For adults, the proposed average price per person is JA$1,200.00 per   person. U.S. Travel Industry Survey indicates that Dynamic Packaging is being used by online packagers to offer consumers better discounts since they protect the pricing integrity of suppliers (air, hotel and/or car rentals) and give a better deal than if   purchased  purchased separately. separately. JST as part of its thrust into tour management must begin to partner with travel agencie agenciess regardi regarding ng the provisi provision on of bundled bundled supp supply ly chain chain managem management ent travel travel services.

5.3.2 Promotion Strategy

Pirates Day was held in June 2004 and is slated for June 2005. A detailed review of  the lessons learnt from this year’s production will be done and will form the basis for future events of this nature.

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The next major event will be the Cultural Extravaganza in November 2004. This event event will will sho showc wcas asee Jamai Jamaican can cultur culturee and and focus focus on the the vario various us grou groups ps that that contributed to the growth and development of our unique culture represented by our  food, clothing, language, religious practices, and music. Familiarization Trips and destination training will be held with key members of  each of the three main target groups. The familiarization trip for schoolteachers,  principals  principals and other other education education officials officials is is slated slated for late late September September 2004. Destination training seminars, which will include site visits, be organized for travel agents and other key promoters. Studies have indicated that 82% of persons trained will more actively promote market destinations they are trained in. With Within in the touri tourist st mark market et,, ther theree is a trem tremend endou ouss potent potential ial for entry entry into into the the Meeting, Convention & Incentive market. Roughly 27% of all U.S. hotel guests are generated by the MCI sector. 5.3.3 Distribution Strategy

JST’s distribution strategy will focus on the target market i.e. school guide tour  market. Alliances with travel agents will be key tool in establishing JST as a national and regional guide tour entity. The 2003 Travel Industry Survey suggests that: Flyers (23%) and emails (22%) are the most commonly used marketing vehi vehicl cles es,, foll follow owed ed by news newspa pape perr ads ads (16% (16%), ), Web Web site sitess (13% (13%)) and and newsl newslet ette ters rs (11%) (11%).. Less Less comm commonl only y used used metho methods ds inclu include de chari charity ty or  comm commun unit ity y even events ts (6%) (6%),, trav travel el nigh nights ts (4% (4%), radi radio o ads ads (3% (3%) and and telemarketing (2%). Interestingly, some marketing methods that are used less frequently are as or more effective than methods that are employed more often. Although flyers and emails result in a substantial proportion proportion of   bookings (22% and 17% respectively), respectively), other lesser-used lesser-used methods are quite successful. Although agencies report on average they used newspaper ads for 16% of their marketing efforts, this method resulted in bookings about a quarter of the time. JST JST will will focu focuss on the the prin printt and and radi radio o medi mediaa for for the the loca locall mark market et,, and and the the international and tourism industry print media for tourists. JST advertising will be done done throug through h Air Air Jama Jamaica ica’s ’s “Sky “Sky Writ Writing ings” s” maga magazi zine, ne, Jama Jamaica ica Dest Destina inati tion on magazine, and other specialty publications. Flyers and emails will also be used to supplement the other methods indicated. JST will provide literature with information about our tours and other activities during the aforementioned launch and at each of our special events. 5.3.4 Marketing Programs

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1. An annual annual events events calendar calendar with with the importa important nt milesto milestones nes for the school school year 2004 – 2005 has been published and is to be distributed to schools. A similar calendar must be produced with events tailored to tourists and local adult organizations. These calendars will be carefully researched to ensure that conflicts with other events are minimized and that event quality is sustained. 2. Th Thee scho school ol mark market et will will be reac reache hed d via via meet meetin ings gs with with prin princi cipa pals ls,, teachers, PTAs. There will also be meetings with umbrella groups i.e. the Jamaica Teachers Association, and the Jamaica Independent Schools Association. Presentations to staff meetings will be used to explain the  process,  process, the prices, and the special deals. A familiarizat familiarization ion tour is  planned for late September September 2004 to facilit facilitate ate school sector sector buy in. There There will be follow up calls as well as distribution of the aforementioned events calendar to students and teachers as a reminder of special events hosted by JST. 3. The local local busines business, s, social, social, and other other groups groups shall shall be target targeted ed via cross cross selling among students on school trips. Students will be given brochures for their parents. Special awards for facilitating adult group trips will be offere offered. d. Presen Presentati tations ons to the various various groups groups at their their organiz organizati ational onal meet meeting ingss will will be done done aide aided d by Micr Micros osof oftt Power Power Point Point and and video video  presentations  presentations outlining outlining the services services and tours tours offered. offered. 4. For the tourist tourist industr industry, y, presentat presentations ions and special special promot promotions ions will will be done and alliances formed with Hotel chains, other tour companies, and trave travell agents agents.. Indust Industry ry and gener general al print print media media will will be utili utilize zed d in convinc convincing ing the various target target market marketss to widen widen their their experien experience ce of  Jamaica by participating in conveniently planned guided tours. 5. Our web site, www.jamaicastorytours.com www.jamaicastorytours.com,, is desi design gned ed to prov provid idee infor informat matio ion n on the comp company any,, promot promotee Jama Jamaica ica’s ’s unique uniquene ness ss and diversity, the various tour offerings, and to facilitate bookings and tour   purchases.  purchases. The annual events calendar is to be posted on the site as a guide to future events. This will greatly assist in overseas queries and tour purchases. 5.4 Sales Strategy

JST sells the concept of knowledge through experience and plans to satisfy the customer. Satisfied customers lead to reduced costs and increased profits in the long run. It is less expensive to maintain a relationship than it is to develop a new one.

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5.5 Strategic Alliances

Strategic sales and promotional alliances will be developed and maintained with our competitors, industry resources, suppliers and customers. These alliances will  be strengthened strengthened by the development development of relationships relationships outlined in our marketing marketing strategy. Our suppliers include attraction owners and their employees, food vendors, cultural  performers,  performers, travel agents, etc. our customers customers include tourists, tourists, hotels, hotels, other tour  companies, airlines, cruise shipping lines, travel agents, local organizations, and schools. Industry resources include the JHTA, The Heritage Trust, the Jamaica Tourist Board, JAMPRO, and TPDCo. Membership in appropriate industry forums will facilitate the partnerships and enhance the communication necessary to ensure a win-win relationship. The development of preferred supplier arrangements is growing internationally. According to the 2003 Travel Industry Survey: Fully 70% of all travel agency sales revenue is due to preferred suppliers. The preferred supplier split is cruise (22%), tours (19%), air (16%), hotels (8%) and car rental (5%)…Consorti (5%)…Consortiaa have really changed tactics in the last few years…the pitch today is value added – the selling tools, training, market marketing ing sup support port,, technol technology, ogy, and networki networking ng within within the group…I group…In n addition to new and better technology, harnessing the power of the internet and the ability to profile and reach the customer, both agent and supplier are searching out the best partnerships and are being very picky about it. JST shall look at developing preferred supplier relationships with travel agencies and attraction owners and develop incentives with its partners i.e. joint marketing, advertising, trade publication updates, dedicated portion of websites, fax updates on special offers, familiarization trips, special training, and customer referrals. Again, the U.S. Travel Industry Survey suggests: “…What with the economic down turn in the U.S. and the aftermath of 911, people are generally generally staying closer to home h ome i.e. Alaska, Hawaii, and the Caribbean…there is a permanent dent in business travel. Travel agencies are being transformed into Travel Management Companies, which capture and analy analyze ze data data for for clie clients nts.. Th They ey are are lever leverag aging ing techn technol ology ogy to bring bring information to the business traveler thereby reducing the hassles of life on the road in an increasingly uncertain travel environment”.

5.6 Milestones

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JST’s important milestones are detailed in the Annual Events Calendar. They will  be used as a way of marketing marketing the company’s company’s event driven products products and in measuring JST’s success in reaching its goals. 6.0 Management Summary

XXXXXX will perform the role of Director/ President and CEO and will be in control of the day-to-day affairs of Jamaica Story Tours Ltd. 6.1 Organizational Structure

Director/ President and CEO: XXXXX. Director/ Training and Product Development Manager: XXXXXX. Director: XXXXXX 6.2 Personnel Plan

The personnel plan depicts JST’s current headcount. JST will increase its personnel requirements, especially tour guides, over the next 2-3 years as it aggressively  pursues  pursues a sustained sustained increase increase in market share share and profitability. profitability. The company will again organize for the training of professional tour guides with a view to ramping up its guide service capability and improving the quality of guided tours. The training will be done in accordance with the company’s expansion strategy to ensure value for training dollars spent. The company library will be outfitted with the appropriate hard copy and electronic lite litera ratur turee as rese researc arch h and tour tour devel developm opment ent work work will will have have to be enhanc enhanced ed.. Research into the historical and cultural preferences of European tourists will be done to accommodate the expected increases in this market over the next five to ten years. The company will move towards a pay for performance incentive strategy for as many of the employees as possible. Each staff member will be given a list of goals and objectives and asked to state the resource requirements to make the targets set. The progress towards obtaining the goals will be monitored closely using welldefin defined ed metr metrics ics and pay pay scale scaless and incen incenti tive ve schem schemes es devel develope oped d to rewa reward rd excellence and contributions to development of the firm. Among the necessary attributes of the sales, marketing and other staff shall be sales attitude, Internet and email savvy, specialty knowledge, and knowledge of the various database systems in place. Table 6. Personnel

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Position

Current

1 1 1

2005

2006

1 1 1

1 1 1

Chief Executive Officer Training/ Product Develop. Mgr. Director Marketing & Research 1 Sales Executive Operations Manager/ Snr. Tour Guide Administrative Assistants Tour Guide (Staff)

1 1 2 1

1 1 3 3

1 1 3 7

Tour Guide (Contractor) Total

3 12

3 15

4 20

1

1

7.0 Financial Plan

In order to achieve the ambitious task of business turnaround, JST will have to capitalize capitalize further with the phased purchase purchase of an additional two buses and increase increase its staff of tour guides commensurate with the degree of tour expansion required over the next three years. The sales strategy indicates a substantial increase in tour  quantities. A graph of actual tours to date and proposed tours over a two-year   period is shown shown in Table 5 below. The financials will will have to match this expansion strategy.

Table 7. Tour Schedule January 2004 – December 2005.

Jamaica Jamaica Story Tours Tou rs - Quantit Quan tity y of  Tours 140 140 120 120

Local Tourists

100 100   s   r   u   o 80    t    f   o  . 60   o    N

Students

40 7.1 Important Assumptions 20

JST assumes the following: 0         1

•

3

5

7

9

        1         1

        3         1

        5         1

        7         1

        9         1

        1         2

Market growth projections forMonths the tourist sector are accurate. (Jan 04 - Dec Dec 05)

        3         2

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•

• •

 National economic conditions, conditions, currently currently delicately delicately poised, will not experience experience significant decline in the next five years. Interest rates will continue to be reduced. The current school curriculum will not be significantly changed with regards to mandatory site visits for students.

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