1. SUMMARY OF THE PROJECT
The project involves the construction and operation of the guest house on its own land located on the Azov coast of the Krasnodar Territory. The facility is located in close proximity to the city of Yeysk.
The required investments are 13.8 million rubles. The project is characterized by a high level of costs and a significant payback period, however, the risks are minimal and the market is quite stable.
The main competitive advantage of the project is a high level of quality of services, including the presence of a wide range of additional services. The advantage of a guest house over a hotel lies in its much simpler procedures for registering a business and registering with supervisory authorities. In addition, the project does not require highly qualified personnel, a complex organizational structure and the structure of business processes.
Key indicators of the economic efficiency of the project are given in Table. four.
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
The goal of the project is the construction of a guest house in the resort area (the Azov coast of the Krasnodar Territory, the city of Yeysk). The advantage of a guest house over a hotel is a much simpler work scheme: it does not require the conversion of a land plot into a commercial one, it does not require a star rating, there is no need to organize a restaurant, etc. The number of rooms of the guest house can reach 20-30 rooms, which is fully consistent with the objectives of the project. The main orientation is vacationers during the holiday season, from the beginning of May to the end of September.
In recent years, interest in domestic tourism in Russia has been growing, due to a number of economic and political factors: the annexation of Crimea, the popularization of domestic tourism destinations at the state level, the decline in the solvency of the population, armed conflicts in the Middle East, etc.
According to the World Tourism Organization, in 2014, Russia was visited by about 28 million tourists from abroad, which puts it in 9th place in the world in terms of tourist attractiveness.
According to the Federal State Statistics Service, from 1995 to 2011, the influx of foreign tourists to Russia increased by 27%. On the other hand, in the same period, Russians also mastered many foreign tourist destinations - primarily beach: Turkey, Egypt, Thailand, Greece, Bulgaria. In 2010, the number of domestic tourists was 32 million people. Unfortunately, similar data for recent years are not presented in the open sources of the Federal State Statistics Service or the Federal Tourism Agency. However, it should be assumed that in 2015 domestic tourism destinations were even more in demand than in previous years; and in 2016 we should expect an unprecedented growth of the industry.
The main obstacle to the growing popularity of domestic destinations is an undeveloped infrastructure: the relatively low quality of rooms, services, and the lack of a wide range of services; all this against the background of a fairly high level of prices.
The coast of the Sea of Azov today is a slightly more economical vacation option compared to the Black Sea coast of the Krasnodar Territory or Crimea. In particular, vacationers even visit Yeisk Spit even from remote regions, such as the Novosibirsk Region, Yamal Oblast, etc. However, the bulk of visitors are guests directly from the Krasnodar Territory and the Rostov Region, who come to rest for the weekend. The territorial and price availability allows achieving a higher occupancy rate of the guest house compared to a hotel on the Black Sea coast.
The competition in the region under consideration is much lower than on the Black Sea coast, the same applies to the level of service. Consequently, an enterprise offering the most complete range of services with their high quality will enjoy popularity. This is planned to be used as the main competitive advantage of the project.
The guest house itself is a building on 3 floors with a basement and adjacent territory, on which there is a parking and a recreation area for guests. On the ground floor there is a reception area, a kitchen, as well as residential premises for owners and maintenance staff, in the basement there are: laundry, boiler room and other technical and auxiliary rooms. The number of rooms consists of 10 rooms, with a total capacity of 30 people (6 double and 6 triple rooms). Removal of the guest house in a straight line from the coastline - 800 m, from the public beach - 1200 m; the guest house is in the accessibility of public transport for the convenience of guests without a car. The possibility of self-cooking in the equipped kitchen, as well as on the barbecue, located in the adjacent territory, is supposed.
The guest house management structure is also simple. Management is carried out by the project owner, being constantly at the guest house. Auxiliary functions for cleaning the house and the territory, washing, etc. performed by seasonal employees from among local residents. Highly qualified staff is not required.
The total area of the guest house is 600 sq.m. Investment costs for the construction and finishing of the building are calculated based on the average market prices of construction companies - 18, 000 rubles. / sqm and amount to 10.8 million rubles. The equipment of the building and the territory is about 3.0 million rubles. Total - 13.8 million rubles, which are supposed to be taken on credit for a period of 18 months.
All rooms are equipped with split systems, TVs and bathrooms with shower. The creation of additional beds in each room is possible due to the use of chair beds.
As a form of ownership, it is advisable to choose an individual entrepreneur with a simplified taxation system (the object of taxation is income). The owner performs the main managerial and commercial functions.
3. DESCRIPTION OF SERVICES
The guest house provides, first of all, accommodation services, usually short-term - on average up to 10 days. To ensure competitiveness, it is proposed to provide a number of related services, mostly free of charge. A full list of services is presented in Table. one.
Project price segment - medium; at the same time, the quality of services and the condition of the number of rooms are above average. This will attract more guests and ensure their loyalty for repeated visits and recommendations.
Table 1. List of services
Licensing of services is not required, confirmation of the hotel category is not required. It is necessary to obtain permits from the fire service and Consumer Supervision.
4. SALES AND MARKETING
According to the Federal State Statistics Service, the hotel services market in 2014 decreased compared to 2013, due to a decrease in the solvency of the population and cost savings. There is a decrease in expenses for both tourist and business trips. However, the 2015 results obtained by extrapolating the data of the first three quarters remain at the 2014 level. At the same time, profit and profitability indicators are growing, reaching record levels.
Figure 1. Dynamics of the main financial indicators of the hotel services market in Russia in 2011-2015, thousand rubles /%
It should be expected that the main market decline will occur due to business trips, and the tourism segment will grow in all respects. This is caused, as mentioned above, due to the popularization of domestic resorts, the development of infrastructure and the blocking of popular tourist destinations.
The popularity of the Yeisk Spit as a tourist zone is due to the mild climate, the tourist infrastructure in the immediate vicinity (the city of Yeysk) - water park, dolphinarium, oceanarium, cafes, restaurants, parks, etc. In addition, this microregion is popular in terms of outdoor activities, primarily windsurfing. In addition, 40 km from Yeysk there is Khan Lake, known for its healing mud and iodine-bromine and hydrogen sulfide sources of mineral waters. Thus, we can only talk about the growth prospects of Yeysk and Yeysk spit as a resort.
In a broad sense, any hospitality enterprises located in this microregion can be considered as competitors: boarding houses, hotels, mini-hotels and guest houses. Their total number is about 100 units. However, given the different level of services provided and positioning, only guest houses should be considered direct competitors - about 30 units. The main disadvantages of existing guest houses include a small capacity - mainly private households, converted into a guest house; monotonous number of rooms - several identical, rather large rooms; conveniences not in number - the general toilet and a shower on several rooms; lack or low quality of additional services - lack of cook, laundry, linen change every 7-10 days, etc. Accordingly, the implementation of all declared in Table. 1 services will give an indisputable competitive advantage to this project.
Sales of guesthouse services are carried out through travel agencies, the average remuneration of which is 10% of the cost, as well as through the Internet sites booking.com, eisk-leto.ru, etc .; part of the sales volume will come from intermediaries working directly at the city's railway and bus stations. The share of sales through agencies and intermediaries in the first two years of project implementation can reach 80%, then it will significantly decrease, up to 30-40% by the fifth year of project implementation. In addition, you must create your own website with a full description of the house, number of rooms and services. The sales volume of a site with good indexing in search engines can reach 30-40%. At the same time, repeat visits with good quality of service, ensuring high guest loyalty, should account for at least 25-30%.
Interaction with agencies and intermediaries is carried out directly by the owner of the guest house, without involving third-party specialists.
5. PRODUCTION PLAN
Geographically, the object is located in close proximity to the city of Yeysk, in the direct accessibility of public transport. Removal of the guest house in a straight line from the coastline is 800 m, from the public beach - 1200 m. Yeysk is a resort city of the Azov coast of the Krasnodar Territory, a seaport. The city population is 85.7 thousand people; located at the base of the Yeisk Spit, washed by the waters of the Taganrog Bay and the Yeisk estuary. The climate is temperate continental, characterized by a relatively small amount of precipitation and the absence of frequent temperature differences. The holiday season lasts from early May to late September. Transport infrastructure is represented by a railway and bus station. Highway of regional significance connect Yeisk with the capital of the region Krasnodar and the capital of the federal district - Rostov-on-Don.
The required costs for the construction and equipment of the building are 13.8 million rubles. The area of the building is calculated based on the average standards of the hotel industry - 12 sq.m per guest. the total area of the building, which is the average for the segment of mini-hotels, i.e. class higher than guest houses. It will also provide additional competitiveness to the project.
For the construction of the guest house building, it is planned to attract a local construction company selected on the basis of the competition. The selection criterion is not only the final cost of construction, but also the use of modern technologies, as well as the quality of projects completed earlier by the company. The planned construction and finishing period of the building is 10-11 months.
The cost of equipping the guest house’s premises is shown in Table 2. In addition to the costs indicated in the table, expenses are also provided for the equipment of the local area, fire alarm system, etc.
Table 2. Costs for guest house equipment
The bulk of the work to ensure the functioning of the guest house is carried out directly by the owner and his family. To perform auxiliary work in the high season (June-August), hired workers are involved (Table 3); It is advisable to outsource the accounting, as well as security functions.
Table 3. Staffing and payroll
The main item of current costs are utility bills, which can be conditionally divided into fixed and variable parts. The fixed part (fixed costs) includes the minimum payment out of season. The variable part varies depending on the number of guests per season. In addition to the seasonality factor, it is also necessary to take into account the occupancy rate of the hotel in connection with its popularity; in the first year, maximum occupancy is unlikely to rise above 50% in the high season. However, in the future, occupancy rates of up to 90% are expected.
Seasonal sales plan is presented in Appendix 1.
6. ORGANIZATIONAL PLAN
The project owner carries out all managerial, commercial and marketing functions: planning, market research, interaction with intermediaries and booking systems. This avoids the cost of remuneration of the manager. In addition, on the scale of the guest house, these functions do not require high qualifications and special knowledge. Bookkeeping is outsourced. There is no organizational structure as such for the project — employees and outsourcing employees are directly subordinate to the project owner.
7. FINANCIAL PLAN
The preparatory period includes investment costs for the construction and decoration of the building, as well as for the development of the project site - 13.8 million rubles. The costs of the main period include: payment of housing and communal services, remuneration of employees and outsourcing workers, the commission of travel agencies, booking systems and intermediaries, as well as the costs of providing additional services, the size of which is extremely small, and forecasting is difficult.
The financial indicators of the project - revenue, cash flow, net profit - are shown in Appendix 1.
8. EVALUATION OF PROJECT EFFICIENCY
The project has a high level of costs, both financial and time. The advantage in this case is a low level of risk and high profitability upon reaching the planned targets.
The payback period of the project is 28 months, the discounted payback period is 34 months. Given the need for servicing a loan, the project begins to make a profit from the second year of implementation. Project performance indicators are given in Table. 4. The indicators are calculated for a three-year period, however, taking into account the long payback period and the project’s unlimited time period, already in a five-year period they will be significantly higher, up to 1.5 million rubles. net profit per year.
Table 4. Project performance indicators
9. RISKS AND WARRANTIES
The project relates to the service sector in a well-developed industry. The industry is mastered both in terms of technology for the provision of services, and in geographical terms - the region is already quite developed as a resort area. The risks associated with the implementation of the project are minimal. The positioning of the project in the middle segment with a high quality of services also affects risk reduction - if there is a need to increase the profitability of the project, you can increase the cost of services by 20% without noticeable negative consequences for the elasticity of demand. In general, we can say that with increasing value, demand remains positively inelastic, and acquires significant elasticity with a decrease in value.
The main risks are reflected in Table. five.
Table 5. Assessment of project risks and measures to prevent their occurrence or their consequences
Given that investments are made not in technology, but in a liquid tangible asset, bankruptcy of an enterprise, even in the worst-case scenario, is not possible. The cost of the already built and equipped guest house building can significantly exceed the cost of its construction and equipment.
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Three-year production plan and key financial indicators of the project