15. Creating Wellness Tourism Facilities at multiple locations · Examples include Trivago and OYO...
Transcript of 15. Creating Wellness Tourism Facilities at multiple locations · Examples include Trivago and OYO...
Creation ofWellness TourismFacilities at MultipleLocations
TourismGovernment of Gujarat
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Contents
Project Concept 3Market Potential 4Growth Drivers 5Gujarat – Competitive Advantage 6Project Information 7- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 10Approvals & Incentives 13Key Department Contacts 15
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Project Concept
Wellness Tourism
Wellness tourism involves people who travel to a different place to proactively pursue activities thatmaintain or enhance their personal health and wellbeing, and who are seeking unique, authentic orlocation-based experiences/therapies not available at home
Wellness travellers pursue diverse services� Spiritual needs
� Beauty treatments
� Healthy diet and weight management
� Relaxation and stress relief
Purpose of wellness tourism
Wellness travellers may seek procedures or treatments using conventional, alternative,complementary, herbal, or homeopathic medicine.
� Hotels and Hospitality
� Hospitals and Medical Centers
� Resorts and Retreats
� Environmental purpose
� Social purpose
� Health-related education.
Wellness Tourism and Medical Tourism Market Spectrum
IntegrativeHealth
Centers
ResortSpas
Eco-Spas
AshramsYoga/ Spiritual
RetreatsWellnessTourism
MedicalTourism
Locationbasedexperience
Genericexperience
BeautyClinics
Gyms
WellnessCruises
MedicalSpas
CosmeticSurgery clinics
Dentalclinics
Hospitals
ThermalBaths
Thalasso-therapy Spas Ayurvedic
ClinicsTraditional
Chinese MedicineCenters
Hotel/ DaySpas
Types of wellness tourism
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Market Potential
With a 17.7% growth in leisure tourism y-o-y coupled with government’s push to promotewellness tourism, Gujarat is best positioned to be the next wellness hub of India
* includes both products and services
AYUSH – Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy
INR490 bn*
Indian wellnessmarket (2014)
INR120 bn
AYUSH sectorturnover (2014)
736,538
AYUSHregistered
practitioners(2014)
8.03 m
Foreign touristsarrival in India in
2015
Share ofwellness
services(2014)
40%
India’s wellness tourism market is expected to surpass US$18 billion by 2019, clockingover 20% gains annually through 2017
India- Market Potential
19.2
10.2
2.4
Business
Spiritual
Leisure
Tourist flow 2014-15 (in millions)
The gross tourist flow in Gujarat duringthe year 2014-15 was ~32.6 million out ofwhich ~8% travelled for leisure purpose
Gujarat- Market Potential51
Ayurvedahospitals
16Homeopathy
hospitals
34,833AYUSH registered
practitioners
Naturopathy centres:� Navjivan Nature Cure Centre, Kutch� NIMBA Nature Cure Village, Mehsana
16Homeopathy college
11Ayurvedic college
Drivers of Wellness Tourism in GujaratPolicy support� The government of Gujarat has decided to
give industry status to tourism sectorimplying it would get the same benefitsgiven to only industries, such as loaninterest subsidies, concessions in taxesas well as in electricity duty
� Health resorts offering AyurvedicTreatments like the Panchkarma Therapyand other treatments would be developedand suitably incentivised through aseparate government resolution.
Availability of Ayurvedic products� Gujarat is a pharmaceutical
manufacturing hub with ~20% Ayurvedicmanufacturing units spread over fourclusters – Ahmedabad, Vadodara,Ankleshwar and Bharuch & Vapi/ Valsad.
� At least 25-30 companies including smalland mid-sized pharmaceutical firms haveeither started making such products or arein the process of developing them.
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Growth Drivers
Improvedinfrastructure
� The GoI has made efforts to improve and upgrade infrastructurefacilities at important tourist destinations, thereby, improvingaccessibility
� FY16 Union Budget allocated INR14.8 billion toward infrastructuredevelopment for destination and circuits, domestic / overseaspromotion and publicity
Increase intourist
movement
� Rise in foreign tourist arrivals (FTAs) and tourist movement within thecountry has driven growth in the hospitality industry. The number ofFTAs reached 7.4 million in 2014, up 27.6% from 2010
� India is known as a destination for spiritual tourism and also offerscruises, adventure, medical, wellness, sports, film, rural and religioustourism. Medical tourists inflow is estimated to be 320 million in 2015,up from 85 million in 2012
� Travel and tourism is the third largest forex earner for India, whichcontributed US$19.7 billion in 2014
Policy support
� Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi DevoBhava launched to harness the tourism industry’s potential
� FDI under the automatic route in tourism and hospitality is allowed upto 100%, subject to applicable regulations and laws
� Capital subsidy programme for budget hotels� Introduction of ‘Medical Visa’ for tourists coming into the country for
medical treatment� Exemption of Fringe Benefit Tax on crèches, employee sports and
guest house facilities
Trends in Indian hotel industry
Emerging budgethotels
� There is a rise in the concept of budget/no frill hotels which offer smartbasic services at an affordable price
� Examples include Ginger, Lemon Tree and Red Fox Hotels
Apps for weband mobile
based booking
� Online and mobile based booking is picking up in hotel industry withthe emergence of companies such as Make My Trip, Yatra, Cleartrip,Goibibo and ixigo
� It is estimated that ~8.4 million Indians will book hotels online by 2016,up from 3.5 million in 2014
Growingaggregators sites
� There are sites that compare the results from all these sites to providecheapest booking options to the customers
� Examples include Trivago and OYO Rooms
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Gujarat - CompetitiveAdvantage
Learning andOperationalInfrastructure
Policy support
Initiatives topromotewellnesstourism
There are 33 AYUSH teachinginstitutions in the state and34,833 AYUSH registeredpractitioners
The department of Ayurveda,under AYUSH, was started inGujarat in 1960
There are 33 speciality Ayurveda hospitals in different parts ofGujarat, with 1345 bed capacity available for patients
The government of Gujarat hasdecided to give industry statusto tourism sector
Due to the industry status, thetourism sector would get thesame benefits given to onlyindustries, such as loan interestsubsidies, concessions in taxesas well as in electricity duty
Health resorts offeringAyurvedic treatments like thePanchkarma Therapy and othertreatments would be developedand suitably incentivisedthrough a separate governmentresolution.
As part of its strategy toincrease connectivity in thestate and boost tourism to thestate, Gujarat State AviationInfrastructure Company Limited(GUJSAIL) is developing 11airstrips across the state
GoodGovernance
The state is one of the leastcorrupted in the country with ananti-corruption index of 0.69
Gujarat leads in projectclearance in coastal areas witha success rate of 93%
Geography The southern part of Gujaratruns along the Arabian sea.It’s northern region houses theThar desert.
The state has longest coastlineamong all states in India -1,600kmss. There are numerousbeaches along the coastlinewith flora and fauna, templesand recreational facilities
Gujarat has the country’s finest infrastructure and is politically most stable
Medicinal Herbs Gujarat has 1315 recorded species of medicinal value. Theseinclude 754 herb species, 248 tree species, 165 shrubs and 148climbers. 1016 plant species are wild where as 299 species arebeing under cultivation or plantation
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Project Information
On the basis of connectivity and the prospects the region offers, few locations have beenidentified as prospective wellness tourism sites
Saputara/Dangs
Nalsarovarlake
Narmadadistrict
Poloforest
Site Location
This district is famousfor "Narmada River"and temples at the bankof the river
Ratanmahal Sloth BearSanctuary,Shoolpaneshwar WildLife Sanctuary etc arefamous wild lifesantuaries in the city.
Saputara is the only hill station in Gujarat,located at a height of 1000 metresIt has hill resorts, a museum, sunsetpoint, valley view, a lake
Around 520 out of the 1,100 medicinalherbs listed in the pharmacopia ofAYUSH are found in SaputaraAmong them, majpr herbs are amla,harde, bherda, satavari, aswagandha,sarpagandha and tubers and roots whichare crucial for ailments of chronic nature
Polo forest is an eco-touristplace located near Abhapurvillage of Vijaynagar taluka;around 150 kms fromAhmedabad
There are 450 species ofmedicinal plants. ~21 plantspecies found in Vijaynagar areprimarily used for hair care
The Nal region is a low-lyingarea between the plains ofthe Central Gujarat andEastern SaurashtraNal Sarovar Bird Sanctuary,consists of a 120.82-square-kms (46.65 sq mi) lake andambient marshesThe lake attracts over 210species of birds
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Project Outline
Project components
CottageSwimmingpool
Shower/Changingroom
MassageandTreatmentRooms
Sauna andSteam Bath
FitnessRoom
Yoga andMeditationHall
RecreationRoom withIndoorgamingfacility
Restaurant
KitchenStaffAccommodation
Open andLandscapedArea
Treatments/ Therapies already provided in Gujarat
Naturopathy Therapy Massage, Hydro, Mud, ChromoTherapy and others
Disorders treated:- Asthma, Anemia,Back Pain,Depression,Diarrhea, HypoTension, Insomnia,Jaundice, Obesity,Vertigo, Anxiety,RheumaticArthritis etc
Ayurvedic Therapy Panchakarma, Abhayanga, Janu Basti,Kati Basti, Sirodhara.
Yoga & Meditation Centre Pranayam, Bandhas, Mudras,Meditation, Reiki
Physiotherapy and Cardio Gym
Special Therapies Swedish Massage, Hot StoneMassage, Refloxology, Raaga (Music)Therapy, Thai Massage.
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Project Information
Air
PortPoPPoPoPoPPoPPPoPoPPoPP rtrtr
Road
Rail
Water
Power
Utilities
Logistics & Connectivity
Infrastructure availability / connectivity
Saputara NarmadaNalsarovarPolo Forests
Bilimora is thenearest railwaystation. Waghai is52 kms fromSaputara
Udaipur(120km),Gandhinagar(140kms),Ahmedabad(160kms)
The nearestrailway station isat Ahmedabad (60kms.)
There are 4railway stations inNarmada
Bus facility isavailable fromChikhli, Bilimora,Nasik and Surat
Udaipur (120kms)and Ahmedabad(160 kms) and isaccessible by theNH8
Ahmedabad is60kms fromNalsaorvar. Statebuses run everyhour
Major state roadsconnecting toAhmedabad (195kms), Surat (83kms),
Surat Airport is thenearest, 172 kmsaway
Udaipur (120kms), Ahmedabad(160 kms),Vadodara (260kms)
Ahmedabad (60kms) is thenearest airport
Nearest airportsare in Surat andVadodara
Magadalla is161kms andHazira port is184kms fromSaputara
Sanand isconnected to threeports – Kandla,Mundra & Pipavav.
Dahej andMagadalla port arethe nearest portsto the district
Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that aims toserve 75% of Gujarat’s population.
Gujarat boasts of 24 hour – 3 - phase uninterrupted power supply
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Project Information
Estimated Manpower Requirement
Manpower requirement at the site (Employees per 100 rooms)
Admin / Accounts 10
Sales & Marketing 3
Manpower numbers have beentaken basis a 5-star hotel
Centre level Corporate
Support Staff
Front Desk 5
Housekeeping 58
Maintenance 5
Other Service (Security/ Laundry) 5
Food and Beverage Kitchen 40
Food and Beverage Service 32
Purchase/Store 2
Therapists and Doctors
Spa Therapist
Senior Therapist 20
Trainees 34
Specialist Consultants 16
Roles
Leading Players
National Accreditation Board for Hospitals and Healthcare providers (NABH) accreditedwellness centres are:
VLCC HealthcareLimited,
Gurgaon, Haryana, India
GRT Bodhi Spa,Radisson Blu Hotel GRT ,
Chennai, Tamil Nadu, India
Complimentary & AlternativeMedicine Department,
Saifee Hospital , Mumbai,Maharashtra, India
Kairali AyurvedicHealing VillagePalakkad, Kerala
Otherplayers
Soukya Holistic HealthCenter
Bangalore, Karnataka
Source: NABH
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Project Financials
Proposed Product Mix
Facility Required area(square feet)
Cottages 20,000
Swimming Pool 4,035
Changing Rooms andShowers
650
Massage andTreatment Rooms
1,560
Sauna and Steam Bath 753
Yoga & Meditation Hall 1,000
Fitness Room 807
Recreation Room withIndoor gaming facility
1,000
Facility Required area(square feet)
Restaurant 1,681
Kitchen 1,614
Staff Accommodation 819
Common Toilet Block 274
Admin Area 500
Circulation Area 8,673
Parking Area 21,251
Open and LandscapedArea
5,88,782
Revenue and Utilisation Assumptions
Revenue per Cottages INR 5,500 per day
Annual Increase in Cottage rent 5%
Revenue from Food and Beverages 15% of the revenue from cottage
Revenue from Spa facilities 20% of the revenue from cottage
Realisation of revenue Operational year
1 2 3 4 5 onwards
Occupancy of Cottages 20% 40% 50% 60% 70%
An illustration depicting estimated cost of setting up a wellness centre spread over an area of5,80,000 squarefeet , with cottages spread over 20,00 square feet and 5,00,000 square feet of openand landscaped area
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Project Financials
Estimated Project Cost
Site Development INR 200 persquare feet
Civil Work INR 1,200 persquare feet
Cost of Furnishing INR 2,000 persquare feet
Cost of Machineryand Equipments
INR 5 million
Cost of construction
Project DevelopmentCost
@1% ofConstruction cost
Debt Syndication @0.5% of Debt
Equity Syndication @0.5% of Equity
Other pre-operationalexpenses
@1% ofConstruction cost
Pre-Operative Charges and Contingencies
Insurance duringConstruction
@0.5% of the landed cost foreach of the Construction years
Consultancy @5.5% of the Landed Cost
Launch marketing @1% of Construction cost
Interest duringconstruction
@14% of per Annum
Operating & Maintenance CostAssumptions
Marketing & Brokerage @1. 5% of thetotal revenue
Maintenance of Built-up Area,Machinery and Equipments
5% of the CapitalCost per Annum
Maintenance of LandscapedAreas
3% of the CapitalCost per Annum
Raw Material Cost for F&B 60% of therevenue from F&B
Raw Material Cost for SpaFacilities
40% of therevenue from SPA
Annual Inflation 5%
Total estimated cost
Construction Cost INR 274.4 million
Pre-operative Expenses INR 61.3 million
Total Landed Cost of the Project at Each Location INR 335.8 million
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Project Financials
The project is to be completed and funded on Direct private sector investment basis
Project Structure & Implementation Model
Government authority Project consultant
Government releases an RFP to the empanelled list ofconsultants for Project Consultant role
The consultant undertakestechno-economic feasibility
study and master planpreparation; assists with bidprocess management and
partner selection process; andacts as a project management
consultant during theimplementation period until
one year of commercialoperations
Private investor(project developer)
The developer will create suitablefacilities at the site mentioned
considering site specificenvironmental and relevant factors
Government selects theprivate player through
competitive biddingprocess and enters into anagreement to form an SPV
SPV
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Approvals andIncentives
� Registration as commercial establishment with the required state/district authority� Gujarat Infrastructure Development Board� ‘No Objection Certificate’ from the Gujarat Pollution Control Board� Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Approvals Required
Government of Gujarat has granted Industry status to Tourism sector thereby providing a greatboost to the industry. The incentives under Tourism Policy for the State of Gujarat (2015-2020)shall be applicable to the eligible tourism units as mentioned in the next sections.
Capital Subsidy to the Eligible Tourism UnitsEligible Capital Investment (excluding land cost) Admissible
subsidyMaximum limit
Investment upto INR500 million 15% INR75 million
Investment above INR500 million 15% INR100 million
Tented accommodation (with minimum investment ofINR2 million) 20% INR1.5 million
Equipment worth INR10 million and above for adventure& water sports 10% INR5 million
Additional Capital Subsidy of 5% for New Tourism Units� Within the Corporation limits of Gandhinagar and falling within the radius of 20 kms.� Owned and managed by women entrepreneurs (with minimum equity participation of 51% in
the entity)� SC/ST categories to an additional 5% subsidy over and above the ‘Admissible Subsidy’.
Incentives from Government of Gujarat
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Approvals andIncentives
Other Exemptions� Luxury Tax - 5 years from the date of commencement of commercial operation� Entertainment Tax - 5 years from the date of commencement of commercial operation� Electricity Duty - 5 years from the date of commencement of commercial operation for New
Tourism Units only.� 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only.
Interest subsidy to the eligible tourism units� @5% of the loan amount with maximum amount of INR2.5 million per annum for a period of
five years in Municipal Corporation areas for eligible tourism units
� @7% of the loan amount with maximum amount of INR3.0 million per annum for a period offive years in the areas other than mentioned above.
Incentives from Government of Gujarat
Special Package for Mega Tourism UnitsThe State Government shall duly promote and facilitate Mega Tourism Projects that have a largemultiplier effect on the economy, leading to employment generation and inclusive growth in theState. Any type of Mega Tourism Units like Film City, theme parks, amusement parks, waterparks, etc. meeting the qualifying criteria of Mega Tourism Units will be eligible.
Following incentives would be offered to eligible Mega Tourism Units:
� 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for thefirst transaction only. Reimbursement of stamp duty and registration fee would be done afterthe commencement of commercial operations.
� Capital subsidy of 15% of eligible capital investment (excluding the cost of the land) subject toa ceiling of INR200 million.
� Exemption from luxury and entertainment tax for a period of seven years from the date ofcommencement of commercial operations.
� Exemption in electricity duty would be for a period of five years from the date ofcommencement of commercial operations.
� Mega tourism units shall not be entitled to any interest subsidy.
Support for Sustainable Tourism� Assistance to eligible tourism units up to 75% of the cost of carrying out Energy Audit by a
recognized institution/consultant, Water Harvesting / Conservation and Environment-friendlypractices like Green Buildings, Solar and other Renewable Energy measures
Tourism Corporation of Gujarat Ltd,H. K. House, Opp: Bata Showroom,Ashram Road, Ahmedabad,Tel: +79 26578044/46/26589172Fax: +79 26582183E-mail: [email protected]
Tourism Corporation of Gujarat Limitedhttp://www.gujarattourism.com/
iNDEXTb - Industrial Extension Bureau
Industries and Mines Department, Gujarat
www.indextb.com
www.imd-gujarat.gov.in/
Department of Tourism, Gujarat
http://www.gujarattourism.com/
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.