FIVE PHASES OF RESORT DEVELOPMENT

PROCESS

SUDHEEP A P
 INTRODUCTION
The process of resort planning and development is
basically an economic one, and all other economic
objective.
Management has a critical role early stages. However,
until recently management’s role was not fully
appreciated; managements become involved in the process
after irreversible decisions had already been made. These
decisions often had a definite economic impact on the
resort project scertic orientation of the hotel of the hotel
to major recreational facilities.
 Purposes of the Resort Master Plan
• Is a planning tool to provide guidance for
decisions
• Describes the general development concept
of the overall resort estate
• Used to coordinate the preparation of more
detailed plans
• Lays out areas earmarked for future
development
3
(continued)
CNT….
(continued)
• Analyzes the impact of new development
on resort land over time
• Includes timetables and goals for future
growth
• Establishes strategic planning policies
• Provides reasonable certainty for investors
based on forecast and pro forma data with
detailed analysis
4
The Five Phases of Resort Planning and Development

• Resort development is a process that links

investors /owners, developers, and the hotel
operating company in a lengthy working
relationship to develop a product which
appeals to the market and at the same time
satisfies the demands of all three parties. The
national accounting firm of laventhol &
Horvath identifies five phases of activities as
constituting the development process.
 The Five Phases of Resort Planning and
Development

1. Conceptualization, planning, and

initiation
2. Feasibility analysis
3. Commitment
4. Design, layout, and construction
5. Management and operation

6
 1. Conceptualization, planning, and initiation

• Conceptualization, Planning, and Initiation. The resort project

is first conceptualized in a general way, with ideas contributed
by either developers, property owners, investors, hotel
management companies, public or quasi public agencies, or
special interest groups One, two, or three of these parties may
propose the need for a resort project, frequently specifying the
site, type, size, preferred operator, and physical characteristics
of the proposed resort.
 CNT……

• Design, image, and marketing

• Lodging structures
• Recreational facilities
• Design of the general transportation system
• Freestanding restaurants, snack bars, retail, and rental shops
• Provision for future expansion
• Employee housing and related needs
• Support facilities and systems
• Resort hotel
• Deliveries, waste removal, security, and maintenance
• Food and beverage production

8
 2. Feasibility Analysis.

• The purpose of a feasibility analysis or study is to determine

whether the preliminary master plan can be justified in
economic terms, and whether it will comply with social,
environmental, political, and legal constraints. Besides
conventional debt—financing sources and preferred by equity
sources, both of which will be needed to carry the resort
through the later development stages to completion. It also
serves as a blueprint for a more detailed marketing plan later
on.
 Main Elements in a Feasibility Study

• A general overview of the area where the project will be developed,

including the area’s economic climate, its political stability, travel trends
in the area, community support, and weather patterns
• A market analysis that looks at potential types and numbers of
visitors/guests and where they will come from, market needs, seasonal
patterns, and other data.
• The physical characteristics of the site with particular reference to its
advantages and disadvantages, possible alternative sites for the resort
proposal, and the physical characteristics of the lodging facility projects.

10
(continued)
CNT…

(continued)
• Financial information such as estimates of capital
requirements, debt-equity leverage, cash flow
statements, balance sheets, and income statement
projections—also known as the pro forma statement.
• Additional information such as import duties and
restrictions on importation of materials needed for
construction or operation.
• Consensus and dissenting opinions of experts who
have been consulted on the project’s feasibility.

11
11
 3.The commitment phase

• The commitment phase involves the final negotiations for

many as pacts of the development commitments may be in
the form of formal agreements. letter of intent .
 Elements of the Commitment Phase
• Land assembly/site acquisition
• Agreements from public entities for
development and funding assistance
• Selection of and agreements with a hotel
operator for franchise rights, affiliation, and/or
management assistance, if applicable
• Obtaining development rights for the site
• Development of the general land-use plan
• Selection of a project architect and engineer

13
(continued)
 Elements of the Commitment Phase
• Selection of a project(continued)
developer
• Refined project development costs, schedules,
and drawings
• Agreement among financing, developing, and
operating entities
• Obtaining necessary environmental documents
and other governmental approvals and permits
• Determination of ownership structure and
securing finance

14
14
Four Conditions Covered in an EIS
1. Designation, purpose, and need of a
project
2. Statement of how the environment
will be affected
3. Listing of possible alternatives and
mitigating circumstances
4. An analysis of each alternative
15
 Requirements for an EIS
• All probable environmental effects of the
proposed action
• Avoidable adverse impacts
• Suggested measures for abating or eliminating
probable adverse impacts
• Discussion of the cumulative effects of the
project in relation to other projects

16
(continued)
 Requirements for an EIS
(continued)

• Alternatives to the proposed action and their

probable environmental effects
• Assessment of the trade-offs between short-
term effects and long-term gains through
investment in maintenance and enhancement
• Commitment, irreversible and irretrievable, of
required natural resources if the proposed
action is implemented
17
17
 Characteristics of an
Intense/High-Activity Type of Resort

• Activities and facilities located close

together
• Atmosphere of constant action and
excitement
• More hotel units, smaller rooms
• Compact use of space
• Greater attention to acoustical treatment
• Small restaurants with higher turnovers
18
 Characteristics of a Less Intense
Type of Resort
• A remote location away from other properties
• Fewer hotels within the resort complex
• Activities and facilities that are more dispersed
• More relaxing types of activities
• Larger-size rooms
• More food and beverage facilities on the premises
• Finer accommodations
• Less attention to acoustical treatment
• Self-containment with little need for outside services

19
Activities of the Project Manager
• Initiating and administering contracts
• Developing working drawings and specifications
• Directing the bidding process and conducting
negotiations with each subcontractor
• Scheduling construction activity
• Monitoring construction
• Assisting in bringing in the project on time and on
budget

20
 Elements in the Final Phase of
Resort Development
• Preparation and implementation of an aggressive sales
and marketing campaign
• Recruitment, training, and retention of staff
• Provision of services per negotiated agreements
• Organization and management of each operating
department
• Control and reduction of operating costs and expenses
• Generation of profits, maintenance of facilities, and
enhancement of the resort’s image

21
 Elements of a Strategic Plan for
Selling Excess Land Holdings
• Analysis of existing markets and tourism trends
• Analysis of the resort in terms of its strengths and weaknesses
• Strategies and programs to build on strengths and reduce
weaknesses
• Estimation of financial requirements and revenue to be derived
from the proposed programs
• Management of assets, including land, and their yields
• Capital improvements and revenue impact
• Suggested timetable for achieving objectives

22
 CONCLUSION
• Resort development planning especially in the case of the
larger resorts, generally requires a systems approach; that is,
one that calls for the developer to bring together groups of
professionals from various fields . The modern concept of a
resort is that planned as an integrated development
with consideration given to its compatibility with the
natural environment and possible benefits to local
communities.