SUBMITTED TO AYESHA KHAN CHIEF TECHNICAL ADVISOR Community Based Livelihood Recovery Program (CBLRP) United National industrial Development Organization (UNIDO)

BY Sardar Shahid Farid Chartered Accountant


All material included in this document is based on data/information gathered from various sources and certain assumption. Due care and diligence has been taken to compile this document. The document may contain human, mechanical error or non accuracy of the information at the source. No liability for error, or omission or unintentional misrepresentation will be accepted. We reserve the right to make correction and changes wherever desired in this document or its subsequent versions.

864 virtual (tickets/rides) per day. The target market is the population of the surrounding areas and the tourist. Capacity of the amusement park is calculated to be 27.1 PROJECT BRIEF The proposed project presents an investment opportunity in setting up an Amusement Park/Joy Land.61 Years 46% 48% Management expertise Technical expertise Marketing expertise Technology transfer Joint R&D Other :- Foreign collaboration sought Studies Available Feasibility study Other Specify Project description Date: 25 October. The sale at 100% capacity utilization is Rs 27. In addition to joy rides. vary according to the final site selection and amount of investment with the individual investor. The main service to be provided is joy rides and a pleasant atmosphere to the people visiting this facility.000 per annum 55% 2. In order to attract a cross section of the population. electricity and telecommunication facilities. and car parking are other sources of revenue for this particular unit. food and beverage stalls. The project is proposed to be located at Manshera or in its surrounding giving easy access to the visitors. This combination can however.520. however we have not accounted for them in our study. The project should be ready for operation in 06 months.1. 1.2 FINANCIAL SUMMARY • • • • • Sales Gross Profit Margin Payback period Net Profit Margin before tax Internal Rate of Return Joint – Venture Loan Market access Sub contracting Buy – back arrangement Equipment purchase Rs 27. advertisement sites. PROJECT EXECUTIVE SUMMARY 1.5 Million. The region has access to all public amenities including water. 2007 1 . a combination of eleven (11) different rides have been assumed in this document.

These can be grouped into Indoor and Outdoor categories. and only 2 districts have a population of over 5 million. Availability of local rides is the second factor that makes investment in this sector economically viable. indoor and outdoor amusement centers are the major direct competing factors. another 16 districts have 3-4 million population. VCD. There are however. Out of these 104 districts. Any entrepreneur can either source the readily available local rides or can also design and custom fabricate its own rides from the local rides manufacturers. the total population of Pakistan is 18. PROJECT RATIONALE The opportunity of setting up the Amusement Park can be linked with the gap of amusement facilities existing in different areas of Pakistan. 53 districts have population under 1 million.g local customs and traditions. and non-availability of modern machinery in local market at cheaper rates. Video Games (Play Station). Internet cafes. According to Population Census reports & Bureau of Statistics (2004-2005). The Amusement Park/Joy Land is a facility that provides outdoor physical entertainment to people and therefore has a variety of competing factors. Amusement park facilities in the country are still at a very primitive 2 . cinemas and indoor as well as outdoor amusement parks. 28 districts have population ranging between 1-2 million. includes both urban as well as rural areas. Outdoor can be classified as Parks.64 million with 26 divisions and 104 districts. total population of a specific area requiring recreational activities and the spending capability of people in that area. TV.2. In future provision of related facilities e. Internet or video gaming centers. Mini zoo and/or Mini Park can be operated to earn the extra profit. MARKET OPPORTUNITY Amusement Parks / Joy Lands fall under the “Tourism Sector” in Pakistan. there are very few outdoor amusement parks in the country. However. etc. Zoos. 3. Some of the direct or indirect competing activities include cable. etc. However. which has recently been given the status of Industry . Indoor options comprise of Cable. 11 districts in the country that has over 1 million urban populations. The security of the park as well as the safety of the rides has to be up to the standard. This provides an opportunity for any investor that can design and implement a well researched amusement park in any major city of the country. DVD.g. This population however. Joy lands. There are also some points to considered and appropriate measures taken to deal with them e. water parks. Branding/perception of the park (right mix of advertisement and promotion) of the park are very delicate job. looking at the outdoor recreational activities. maintenance and operational expertise are readily available at a competitive price. There are various amusement options available at various levels in the country. Local fabrication and design ensures that repair.

The mix of rides will ultimately determine the kind of guests who will visit the park. in Rs 50 3 . The growth trend is vital for the success of the amusement park. The basic age classification of the target group is children. The project will define much of its own values as there is no competitor in the market.440 2.920 Revenue: Others facilities Monthly Average Rentals per Esq. These parks are normally contractual and charge highly subsidized ride rates. school going children and adults. of Rides per Hours Virtual Capacity of the Amusement Park Visitors per Day (At 5% of Virtual Capacity) Average No. thus appropriate marketing and promotional activities will be under taken. The proposed ride mix is a balance of rides with various thrill factors. and should be able to mobilize a large number of visitors to the facility.322 835. In addition to these. BUSINESS PLAN Latest state of the art amusement equipment is to be introduced. The best services will be provided. The project aims to target a diverse range of visitors to its facilities.1 PRODUCT SALES Revenue: Joy Rides Average Duration of Rides in Minutes Loading-Off Loading Time for Each Ride in Minutes Total No. 4. in most of the cantonment areas of the country. every district in the country has its own public parks with few rides installed. It is therefore. A 13% annual increase in the number of visitors in expected for the proposed facility. to private Joy Lands in organized sector. These are both competing forces as well as also provides business opportunities if. cantonment establishments are also renting out public land for establishment of amusement facilities. of Visitors Expected Per Annum 3 7 6 46. and should be able to target population along the entire continuum of age group. In addition. 4. Possibilities are to be explored in future for similar entertainment and amusement facilities.stage with only a handful of competing private sector. expected that any investor entering into this sector. any investor can enter into a nation wide contractual arrangements with local or cantonment governments.

3 DISTRIBUTION CHANNELS Marketing and branding of this amusement park will play a key role in the mobilization of targeted number of customers.000 4.000 4 10 60 10 27. 4. in Rs Visitors Entrance Fee in Rs Average Fee for Rides in Rs Vehicle Parking Fees in Rs Annual Sales 1. The customers would come to spend their leisure time with their families. Also other supplies such as water and store and spares are available at low prices. site advertisement. Before launch of the project. 4. security and safety during their stay at the amusement park.2 RAW MATERIALS The main requirement is that of electricity.520. this is readily available. to designing the products as well the promotional strategy. Major marketing options include.4 HUMAN RESOURCE REQUIRMENTS The following requirement of staff along with their levels and monthly salary is foreseen for this project: 4 . SERVICES This is mainly service industry. it is recommended that a research for understanding the dynamics of the targeted market should also be carried out.Total Area of Signboard in Sq ft Monthly Rentals of Signboards in Sq ft. They will be provided quality. Marketing budget and strategy would be based on the change in the number and type of visitors to the park overtime. cable ads and handbills among other traditional marketing channels.

914 5 .4.800 8.427 570 44.675 331 4. Amount Rs (000) Land Building & Civil Works Plant & Machinery Tools.196 758 571 1. Computers & Telephones Electric Installations Vehicles. Furniture & Security System Contingencies Deferred & Pre-Operating Cost Interest During Construction Total Fixed Cost 13.914 Million as described below.6 PROJECT FINANCIALS OPERATIONAL DATA Growth Rates per year Annual Increase in Visitors’ Entrance Fee 5% Annual Increase in Vehicle Parking Fee. of Visitors. 13% FIXED COST The fixed cost is expected to be Rs 44. 5% Annual Increase of Monthly Rentals 10% Annual Increase in Visitors’ Entrance Fee. Equipment. 5% %Age Annual Increase in No.586 14.

Administration Expenses Utility expenses Traveling Office Vehicle and running Office stationary Insurance expenses Miscellaneous expenses Total 354.000 102.WORKING CAPITAL The investment in the initial working capital is of Rs 100.800 186.965 1.000 OVERHEAD COSTS In the first year following overhead cost are estimated.292 124.800 14.400 228.491 14.025.748 6 .