Sustainable Developement in Rural Tourism in India
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Transcript of Sustainable Developement in Rural Tourism in India
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8/22/2019 Sustainable Developement in Rural Tourism in India
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Chinmaya Kiran Vadali
SUSTAINABLE DEVELOPMENTIN RURAL INDIA THROUGH
TOURISM
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Athidhi- Enjoy, Enrich
Vision:
To showcase and promote the best of authentic
Indian traditions through premium hospitality
destinations
Ensure holistic development by preserving culturaldiversity and through eco-tourism
Harmonizing with surroundings and enhancing the
quality of life by harnessing local creativity
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Context of CINE
Sustainable development is a three step process
Seed Development (May or may not be innovative)
Irrespective of sustainability, basic needs like food, shelter
and clothing NEED to be fulfilled.
INNOVATION Innovation is expressed in cases where existing processes
are sub-optimal
Sustainability
Achieved by harnessing local resources and culture
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The idea: Cottage style resorts made
with reinforced local material In villages (Pochampalli,
Zainabad, Guruvayoor and so on) Closer to natural assets like
waterfalls, forest reserves etc. inabout a 100 mile radius. Promoting local culture in all
respects Architecture (design, construction) Food, hospitality and Entertainment
Employee base
Eco tourism
Value Proposition: Unique get away from city life Exposure to exotic traditions and
culture
Natures embrace, meetingPEOPLE
http://www.desertcoursers.net/resort.ht
http://www.desertcoursers.net/resort.htmhttp://www.desertcoursers.net/resort.htm -
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Existing resources and
shortcomings
Government owned
resorts
Few destinations
Fewer accommodations
Bureaucratic hassles in
improving
Only the already well-
known products promote Leave a lot to be
desired
http://www.exploreruralindia.org/
http://www.exploreruralindia.org/http://www.exploreruralindia.org/ -
8/22/2019 Sustainable Developement in Rural Tourism in India
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Continued
Private accommodationhomestay tourism inSikkim
Dedicated space in home for tourists stay: Source
of income for local families.
Not scalable model
House etc. are necessary investments before families can
earn
Culture promotion is not organized.
Resorts like Zainabad Resort: Precedent for our model but very few in number
http://www.nivalink.com/sikkim/homestay.html
http://www.nivalink.com/sikkim/homestay.htmlhttp://www.nivalink.com/sikkim/homestay.html -
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Operating Model
4 eco-friendly resorts (initially) spread across India to cover alltourist seasons
Focusing 4-5 day packages
Less than 100 km from prominent tourist spots, close to traditionalvillages
Local architecture (Mud houses etc.) with basic modern amenitiesand necessities (W/C, Purified Water, optional A/C, power outlets,emergency phones, discouraging mobiles & internet), no plasticzones, alternate energy, rainwater harvesting
Managers recruited centrally, local villages form the employee base
Local cuisine, entertainment, arts & crafts Complementary nature walks and tours
Company owned sales offices, exclusive online/telephone booking,promotion through social networking sites and liaising withgovernment
Sales personnel for corporate marketing
Offering vocational training to villagers in off-season (hospitality,
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Revenues and Costs Sources
Three key sources of revenue: Holiday package sales
Sales of local art, handicrafts etc. at resorts and at
branch offices (boutiques) Massages and art- of- living packages
Key Costs: Infrastructure depreciation
Initial Capital investmentsAdvertisement and promotions
Employee base (in branches and at resorts)
Resort maintenance and vocational training relatedexpenses
Raw material costs (for food, utilities, massages etc.)
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Revenue Estimates (INR)
Year
Planne
d
Capaci
ty
OccupancyNumber
Occupancy
Average cost per
room night
Price of a
Package
Package
Demand
Sale of
Handicra
fts
Total
Revenue
In-
season
120
days
Off-
season240 Days
In-
season
Off-
season
In
season
Off
Season
Average
price perperson day
In
Season
Off
Season
2010-
11400 25% 20% 12000 19200 6000 4000 1000 4800 7680 400000
161,680,000
2011-
12400 30% 20% 14400 19200 6000 4000 1000 5760 7680 400000
177,040,000
2012-
13600 30% 20% 21600 28800 6000 4000 1500 8640 11520 600000
275,640,000
2013-
14600 40% 30% 28800 43200 8000 6000 1500 17280 25920 960000
555,360,000
2014-
15600 50% 35% 36000 50400 8000 6000 1500 21600 30240 960000
669,120,000
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Costs & Profit Estimates
Year Land
Constructio
n
Depreciatio
n
Employee
s
Raw
material Handicrafts Utilities
2009-1060,000,00
0 40,000,000
2010-11 10,000,000 10,000,000 25,920,000 200,000 15,552,000
2011-12 20,000,000 10,000,000 11,500,000 25,920,000 200,000 15,552,000
2012-13 12,000,000 13,225,000 38,880,000 300,000 23,328,000
2013-14 12,000,000 15,208,750 51,840,000 480,000 31,104,000
2014-15 12,000,000 17,490,063 51,840,000 480,000 31,104,000
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Profit Estimates
Year
Maintenance
+
Renovation Promotion
Vocational
Training Total Cost
Operating
profit
Cost of
Capital
Profit
Before Tax
2009-10
10,000,00
0
(10,000,00
0)
2010-11 5,184,000 1,000,000 250,000 68,106,000 93,574,000
10,000,00
0 83,574,000
2011-12 5,184,000 1,000,000 250,000 69,606,000
107,434,00
0
12,000,00
0 95,434,000
2012-13 9,331,200 1,000,000 250,000 98,314,200
177,325,80
0
12,000,00
0
165,325,80
0
2013-14 12,441,600 700,000 250,000
124,024,35
0
431,335,65
0
12,000,00
0
419,335,65
0
2014-15
12 441 600
700 000
250 000
126,305,66
3
542,814,33
8
12,000,00
0
530,814,33
8
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References:
http://www.exploreruralindia.org/ Government of India initiative for rural tourism
http://rbh.in/Home/thrust_areas/rural_tourism.asp
x
CII conference about promotion of rural tourism
http://www.desertcoursers.net/resort.htm
Zainabad resort (hosted ERI- an IIMA elective)
http://www.nivalink.com/sikkim/homestay.html Sikkim home-stay resources
http://www.exploreruralindia.org/http://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://www.desertcoursers.net/resort.htmhttp://www.nivalink.com/sikkim/homestay.htmlhttp://www.nivalink.com/sikkim/homestay.htmlhttp://www.desertcoursers.net/resort.htmhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://www.exploreruralindia.org/ -
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Thank You