final final ppt (1)

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METROPOLITAN LANKA HOTELS -VIABILITY STUDY REPORT

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METROPOLITAN LANKA HOTELS-VIABILITY STUDY REPORT

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TEAM MEMBERS

• APURV MUKUND BRAHMAPURKAR• ARJUN.S• ARYA.S• MURALI KRISHNAN. V• RAHUL.H.V

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CONTENTS• OBJECTIVE• SUMMARY OF THE STUDY• MARKET SUMMARY• EXPERIENCE• SURVEY STATISTICS• KANDY• NUWARA ELIYA• BENTOTA• MIRISSA• YALA• NEGOMBO• SIGIRIYA & DAMBULLA• TRINCOMALEE• OUR SUGGESTIONS

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OBJECTIVES OF THE STUDY

• To determine feasible locations for establishing Hotel chains for Metropolitan Lanka Hotels across Sri Lanka.

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SUMMARY OF THE STUDY

• Studied 19 potential locations spread across the Island.• 8 locations and 290 rooms were the initial hypothesis from secondary

research.• Visited 230 Star Hotels spread across Sri Lanka• Interacted with 314 tourists from 34 nations• Visited tourists attractions to determine the attractiveness of these locations

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MARKET SUMMARY

• Tourism is the fastest growing industry in Sri Lanka.• The number of tourist arrival in Sri Lanka has been showing steady growth.• Average length of stay according to SLTDA is around 10.5 days• Major players in Sri Lankan markets are Jetwing, Cinnamon, Aitken spence,

Amaya, Earl’s group, Brown’s group and Uga.• Tourism is the major employment provider as it provides employment to

around 2.5 lakh people directly and indirectly• Annual occupancy according to SLTDA reports is around 74%

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SURVEY STATISTICS

4%

27%

39%

13%

11%6%

AGE GROUP

LESS THAN 1818-2728-3738-4748-57MORE THAN 57

52%48%

GENDER

MALEFEMALE

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German

yInd

ia

Engla

ndCh

inaFra

nceRu

ssia

Holland

Czech

Repub

licJap

an

Austr

aliaPol

and

Netherl

ands

Denmark Isr

ael Italy

Austr

iaSp

ain

Cana

da

Malaysi

a

Switze

rland

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%18.79%

12.10%

10.19%

7.32% 7.01%

5.73%

4.78%

3.82% 3.50% 3.18%

2.23% 2.23% 1.91% 1.59% 1.59% 1.59% 1.59% 1.59% 1.27% 0.96%

NATIONALITY

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91%

2%

7%

PURPOSE OF VISIT

LEISUREOFFICIAL PURPOSECULTURE AND RELIGION

96%

2%

2%

NUMBER OF VISITS

1ST VISIT2ND VISIT3 OR MORE VISITS

Europe

Asia

Australia

North America

South America

Africa

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

59.55%

33.12%

3.18%

1.96%

0.96%

0.32%

CONTINENT WISE BREAK UP OF TOURIST

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66%5%10%

19%

ONLINE BOOKING AGENTS

BOOKING.COMAGODA.COMEXPEDIA.COMOTHERS

32%

7%15%

24%

22%

AVERAGE NUMBER OF DAYS OF STAY

13 - 153.0 - 5.06.0 - 8.09.0 - 12More than 15

35%

65%

TRAVEL AGENTS

YESNO

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Kandy

Sigiriy

a

Colom

bo

Dambulla

Negom

bo

Nuwara Eliya

Anura

dhap

ura

Polon

naruw

aMata

ra Ella

Bentot

aGalle

Trinc

omale

e

Yala a

nd Tiss

amah

arama

Aruga

m Bay

Battic

aloa

Hikkad

uwa

Kalutar

aJaff

na

Tangalle

Kalpit

iya0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

13.72%

10.22%

8.87%

7.57%7.23% 7.11%

5.93%5.36% 5.19% 5.19%

4.35%4.01%

3.67%3.27%

2.48%1.98%

1.58%0.96%

0.62% 0.45% 0.23%

PLACES VISITED BY TOURISTS

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KANDY

• Second biggest city of Sri Lanka• Cultural city• August Perahera Festival• Present in most of the tourists’ itinerary• Tourist Attractions: Kandy Tooth temple, Kandy Lake, Udawattekele

Sanctuary, Pallekele International Cricket Stadium

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KANDY

• AVERAGE NUMBER OF ROOMS:- 46• AVERAGE EMPLOYEES PER ROOM:-1.84:1• AVERAGE OCCUPANCY:- 49.95%• MEDIAN OCCUPANCY:- 50%• AVERAGE ROOM RATE:- 113.745 USD

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• RECOMMENDATION:-20 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-37• TOTAL REVENUE:-610298.7975 USD• TOTAL EXPENSE:-244119.519 USD• TOTAL PROFIT AFTER TAX:-347870.3 USD

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NUWARA ELIYA

• Most beautiful hill station• Less crowded than Kandy• March, April – Indians (Summer)• June, July - Middle-East season• August – Kandy Perahera visitors• November – April – European Season• Honeymoon Destination• Tourist attractions: World’s End, Pidutalagala Mountain, Moon Plains, Seetha Eliya,

Gregory Lake, Tea Estates

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NUWARA ELIYA

• AVERAGE NUMBER OF ROOMS:- 34• AVERAGE EMPLOYEES PER ROOM:-1.65:1• AVERAGE OCCUPANCY:- 49.65%• MEDIAN OCCUPANCY:- 50%• AVERAGE ROOM RATE:- 117.215 USD

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• RECOMMENDATION:-15 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-25• TOTAL REVENUE:-314458.5413 USD• TOTAL EXPENSE:-125783.4165 USD• TOTAL PROFIT AFTER TAX:-179241.4 USD

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BENTOTA

• Shallow and Calm beaches• Higher LOS• Beach properties have good occupancy• Peak Season: November – April (Room rate almost doubles)• Preferred location for destination weddings• Domestic weddings in off season • Ease of access by Southern Highways and Railway lines• Tourist Attractions: Bentota Beach, Turtle Hatcheries

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BENTOTA

• AVERAGE NUMBER OF ROOMS:- 76• AVERAGE EMPLOYEES PER ROOM:-1.78:1• AVERAGE OCCUPANCY:- 51.01%• MEDIAN OCCUPANCY:- 50%• AVERAGE ROOM RATE:- 130.41 USD

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• RECOMMENDATION:-40 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-72• TOTAL REVENUE:-951993 USD• TOTAL EXPENSE:-380797.2 USD• TOTAL PROFIT AFTER TAX:-542636 USD

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KANDY

MIRISS

A

BENTO

TAEL

LA

SIGIRI

YAGAL

LE

ARUGAMBA

Y

NUWARA E

LIYA

ARUGAM

BAY

ANURA

DHAPURA

NEGOMBO

TRINCOMAL

EEJAF

FNA

DAMBU

LLA

COLO

MBO

HIKKADUWA

0

5

10

15

20

25

30

27.0588235294118

17.0588235294118

11.176470588235310.58823529411769.41176470588235

4.705882352941184.117647058823533.529411764705882.941176470588242.352941176470591.764705882352941.176470588235291.176470588235291.176470588235291.176470588235290.588235294117647

MOST LIKED PLACES

PLACES

PERC

ENTA

GE

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MIRISSA

• Highly preferred by tourists• Spot for Whale watching and Dolphin watching• Not well established market• Peak Season: November – April• Average LOS is around 3.5 to 4 days• Tourist Attractions – Mirissa Beach, Weligama Beach, Kushta Raja Vihara,

Weherahena Buddhist Temple, Matara Paravi Duwa Temple, Star Fort

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MIRISSA

• AVERAGE NUMBER OF ROOMS:- 27• AVERAGE EMPLOYEES PER ROOM:-2.79:1• AVERAGE OCCUPANCY:- 74.78%• MEDIAN OCCUPANCY:- 89%• AVERAGE ROOM RATE:- 156 USD

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• RECOMMENDATION:-40 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-112• TOTAL REVENUE:-842712 USD• TOTAL EXPENSE:-337084.8 USD• TOTAL PROFIT AFTER TAX:-480345.8 USD

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YALA

• Round the year tourists come• No season and off-season• Tourist Attractions – Yala National Park, Bundala National Park, Kataragama

temple, Tissamaharama Raja Maha Vihara, Tissa Dagoba, Buduruwagala.• Yala National Park has got the maximum number of visitors among the parks

in Sri Lanka.• Yala National Park is listed in SLTDA report as one of the highest revenue

earning sites.

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YALA• AVERAGE NUMBER OF ROOMS:- 42• AVERAGE EMPLOYEES PER ROOM:-1.81:1• AVERAGE OCCUPANCY:- 50.20%• MEDIAN OCCUPANCY:- 40%• AVERAGE ROOM RATE:- 81.345 USD

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• RECOMMENDATION:-20 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-37• TOTAL REVENUE:-237527.4 USD• TOTAL EXPENSE:-95010.96 USD • TOTAL PROFIT AFTER TAX:-135390.6 USD

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NEGOMBO

• Proximity to Bandaranaike International Airport• Early morning and late night passengers• Transit passengers• Ancient cities travellers• Round the year travellers• Beach properties have high occupancy• Affordable than Colombo• Negombo to Colombo – 36.7 Km, 50 min travel time• Tourist Attractions – Negombo Beach, Angurukaramulla Temple

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NEGOMBO

• AVERAGE NUMBER OF ROOMS:- 59• AVERAGE EMPLOYEES PER ROOM:- 2.58:1• AVERAGE OCCUPANCY:- 66%• MEDIAN OCCUPANCY:- 100%• AVERAGE ROOM RATE:- 128.15 USD

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• RECOMMENDATION:-40• NUMBER OF EMPLOYEES REQUIRED:-104• TOTAL REVENUE:-1234853.4 USD• TOTAL EXPENSE:-493941.36 USD• TOTAL PROFIT AFTER TAX:-703866.4 USD

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SIGIRIYA & DAMBULLA

• Centre point of Cultural triangle• Well connected and less traffic roads• Ease of access to Anuradhapura, Polonnaruwa and Trincomalee.• Sigiriya Rock is one of the World Heritage Sites• 7 lakh visitors annually • Tourist Attractions – Sigiriya Lion Rock, Pidurangala Rock, Dambulla cave

temple, Mihintale, Anuradhapura and Polonnaruwa ancient ruins

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SIGIRIYA & DAMBULLA

• AVERAGE NUMBER OF ROOMS:- 65• AVERAGE EMPLOYEES PER ROOM:-1.97:1• AVERAGE OCCUPANCY:- 58.90%• MEDIAN OCCUPANCY:- 41.70%• AVERAGE ROOM RATE:- 124.945 USD

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• RECOMMENDATION:-30 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-60• TOTAL REVENUE:-570517.6118 USD• TOTAL EXPENSE:-228207.0447 USD• TOTAL PROFIT AFTER TAX:-325195 USD

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TRINCOMALEE

• Virgin Beach• Upcoming tourist hot spot• No big players at present • Established players in pipeline.• Season – May to October• Tourist Attractions: Trincomalee Beach, Nilaveli Beach, Marble Beach

Koneswaram Temple, Pigeon Island National Park

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TRINCOMALEE• AVERAGE NUMBER OF ROOMS:- 41• AVERAGE EMPLOYEES PER ROOM:- 1.84:1• AVERAGE OCCUPANCY:- 49• MEDIAN OCCUPANCY:- 47.5%• AVERAGE ROOM RATE:-98.7 USD

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• RECOMMENDATION:-30 ROOMS• NUMBER OF EMPLOYEES REQUIRED:-56• TOTAL REVENUE:-513363.375 USD• TOTAL EXPENSE:-205345.35 USD• TOTAL PROFIT AFTER TAX:-292617.1 USD

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Places Annual Revenue ($)

Annual Expenditure ($)

Annual PAT ($)

Negombo 1234853.4 493941.36 703866.4

Bentota 951993 380797.2 542636

Mirissa 842712 337084.8 480345.8

Yala 237527.4 95010.96 135390.6

Kandy 610298.7975 244119.519 347870.3

Nuwara Eliya 314458.5413 125783.4165 179241.4

Sigiriya/Dambulla 570517.6118 228207.0447 325195

Trincomalee 513363.375 205345.35 292617.1

Total 5275724.126 2110289.65 3007163

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OUR SUGGESTIONS

• Training and Development program for employees.• Hotels should be registered in Booking.com and maintain a good rating.• Tie up with major players like Travel Bird (Europe), Arena travels (UK), Kuoni

Travels, Aitken Spence, Walkers Tours (Colombo), Anulanka Tours (Negombo), Go Vacation Tour agency, (Sri Lanka), Total Travel Solution (Sri Lanka), Apple Holidays (India)

• Tie up with lonelyplanet.com which is the world’s largest travel guide.

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