Feasibility Study on a Hotel Project

Feasibility study on a hotel project: Moon palace resort hotel Chapter I 1.1Introduction Moon Palace Hotel resort will offer accommodation with different types of rooms, restaurant, bar, spa, recreation activities, swimming pool, transfer services, island hopping, ecoadventure packages, souvenir shop, meeting/banquet facilities. This piece of work will contain a feasibility study for a hotel project: Moon palace resort hotel. It aims to evaluate whether the implementation of this hotel would be feasible. The reason for the evaluation of the planned hotel is to provide the travellers in Palawan a quality service of hotel at a moderate price. The scope of this work is to develop a business plan and projection taking in considerations the key factors that will affect the implementation of the hotel. The objective of this study is to evaluate whether the establishment of such project would work out and whether to proceed with the eventual development of the hotel.

This study is inspired by the fact that tourism is one of the sectors that has the potential to boost the economy of Palawan. Furthermore, according to the department of tourism, Puerto Princesa is among those destinations that has a high growth rate on its tourist visits. (see table 1) Table1. Tourist Volume in the Top Sixteen Destinations, January to June 2009 Destinations

Foreign

Domestic

Total

Growth Rate

Camarines Sur

147,504

754,698

902,202

194.0%

Cebu

321,116

509,433

830,599

2.3%

Boracay

112,315

271,498

383,813

6.0%

Baguio*

20,677

350,528

371,205

-14.5%

Davao

29,691

300,556

330,247

2.7%

Puerto Galera**

215,755

20.2%

Bohol

45,995

114,619

160,614

15.6%

Negros Occidental*

32,780

113,724

146,504

-55.2%

Negros Oriental

22,729

95,069

117,798

11.1%

8,088

91,659

99,747

6.5%

10,257

71,630

81,887

-7.5%

Camarines Norte

1,711

79,466

81,177

63.9%

Puerto Princesa

11,380

69,376

80,756

63.0%

Legaspi

7,892

59,732

67,624

10.9%

Catanduanes

9,953

55,188

65,141

115.0%

Sorsogon*

26,251

27,951

54,203

-14.0%

Total

808,389

2,965,128

3,989,271

16.5%

Ilocos Norte Masbate*

Source: DOT Regional Office

*Partial Data** No breakdown

1.2 Scope The scope of this work is to develop a business plan and projection taking in considerations the key factors that will affect the implementation of the hotel such as: 1. location 2. market 3. cost and benefit analysis 4. products and services 5. forecast on its revenue, operating profit, personnel cost 1.3 objectives General objectives: The objective of this study is to evaluate whether the establishment of such project would work out and whether to proceed with the eventual development of the hotel.