Feasibility study on a hotel project: Moon palace resort hotel

Chapter I

1.1Introduction

Moon Palace Hotel resort will offer accommodation with different types of rooms,
restaurant, bar, spa, recreation activities, swimming pool, transfer services, island hopping, eco-
adventure packages, souvenir shop, meeting/banquet facilities.

This piece of work will contain a feasibility study for a hotel project: Moon palace resort
hotel. It aims to evaluate whether the implementation of this hotel would be feasible. The reason
for the evaluation of the planned hotel is to provide the travellers in Palawan a quality service of
hotel at a moderate price.

The scope of this work is to develop a business plan and projection taking in
considerations the key factors that will affect the implementation of the hotel. The objective of
this study is to evaluate whether the establishment of such project would work out and whether
to proceed with the eventual development of the hotel.

This study is inspired by the fact that tourism is one of the sectors that has the potential to
boost the economy of Palawan. Furthermore, according to the department of tourism, Puerto
Princesa is among those destinations that has a high growth rate on its tourist visits. (see table 1)

Table1. Tourist Volume in the Top Sixteen Destinations, January to June 2009

Destinations Foreign Domestic Total Growth

Rate

Camarines Sur 147,504 754,698 902,202 194.0%

Cebu 321,116 509,433 830,599 2.3%

Boracay 112,315 271,498 383,813 6.0%

Baguio* 20,677 350,528 371,205 -14.5%

Davao 29,691 300,556 330,247 2.7%

Puerto Galera** 215,755 20.2%

Bohol 45,995 114,619 160,614 15.6%

Negros Occidental* 32,780 113,724 146,504 -55.2%

Negros Oriental 22,729 95,069 117,798 11.1%

Ilocos Norte 8,088 91,659 99,747 6.5%

Masbate* 10,257 71,630 81,887 -7.5%

Camarines Norte 1,711 79,466 81,177 63.9%

Puerto Princesa 11,380 69,376 80,756 63.0%

Legaspi 7,892 59,732 67,624 10.9%

Catanduanes 9,953 55,188 65,141 115.0%

Sorsogon* 26,251 27,951 54,203 -14.0%

Total 808,389 2,965,128 3,989,271 16.5%

Source: DOT Regional Office *Partial Data** No breakdown

1.2

Scope

The scope of this work is to develop a business plan and projection taking in
considerations the key factors that will affect the implementation of the hotel such as:

1. location

2. market

3. cost and benefit analysis

4. products and services

5. forecast on its revenue, operating profit, personnel cost

1.3 objectives

General objectives:

The objective of this study is to evaluate whether the establishment of such project would
work out and whether to proceed with the eventual development of the hotel.