የሆቴሎች ኮከብ ደረጃ

Ethiopian Hotel Grading Program

Ministry of Culture and Tourism
WHY HOTEL GRADING?!
BENEFITS TO HOTEL OWNERS
Better match of customers’ expectations, resulting in consumers being more confident in
booking rooms
Clear market positioning of the owned hotel
Locally owned and managed hotels are measured fairly against international standards
Provides a tool to easily measure results against the hotel’s own competitive segment
Help to enjoy basket of investment incentives from the government
Business support and advisory services as the hotel is validated regularly by an independent body
Free Hotel listing and promotion on the websites of the ministry and other promotional materials
BENEFITS TO CONSUMER MARKET- END USERS
Improved awareness of the selected hotel’s service and facilities standards
Easier Valuation of price - value relationships between choice
Achieve No surprise on arrival
An additional avenue for complaint of poor services
Provide opportunities to gain quality services which in turn contributes to seamless tourist
experiences
BENEFITS TO THE GOVERNMENT
Branding Ethiopian hospitality to the outside world
Installing an inspection system improving the performance of the properties in the sector
A base for policy making; providing investment incentives
Strengthening competitiveness in the global tourism market by offering internationally
acceptable level of service
Helping to regulate supply - Demand balance in the tourism industry
HOTELS – GRADING REQUIREMENTS AND CLASSIFICATION
1. CATEGORY ENTRY REQUIREMENTS
A hotel shall have at least ten rooms
To be eligible for grading, premises shall first have satisfied all statutory regulation,
requirements for health, safety and security, fire, environmental services requirements for waste
management and have certified documentary evidence of compliance.
At least a bar and a restaurant shall be available for the service. All meals (breakfast, lunch and
dinner) and beverages shall be provided from outlets within the property.
Servicing of rooms shall be 7 days in a week (this includes linen/towel change, removal of
rubbish and cleaning).
Bathroom facilities shall be en-suite or adjacent to the room and dedicated for personal use.
Formal reception area/desk shall be available for all star hotels.
On-site representative shall be contactable 24 hours, 7 days a week
Generally, there are 12 evaluative criteria;
1. BASIC CRITERIA BUILDING EXTERIOR
Building exterior
Grounds and gardens
Parking, access, signage, points of entry
Safety and security
2. BASIC CRITERIA BEDROOMS
Decoration
Furniture
Electronic appliances
Wardrobe, hanging space, clothes hanger
Curtains and window covering
Flooring, ceiling, skirting and cornices
Bedding and linen
Form of bedding
Environmental control
Lighting, power, switches
Mirrors
Accessories
Spaciousness and overall impression
Access, security
3. BATHROOM
Type
Flooring, ceiling and walls
Fixtures and fittings
Hand basin and toilet areas
Towelling
Lighting
Accessories
4. PUBLIC AREAS
Public areas include guest circulation areas, corridors, lounge areas, stairwells, lifts, etc. All
areas other than the areas previously mentioned, which are inside a building and are accessible to
guests
Decoration
Furnishings and fittings
Flooring, ceiling and skirting
Lighting
Atmosphere and ambience
Guest services
Escalators, lifts (applies to all premises of 3 floors or more)
Additional services
5. BAR AND DINING FACILITIES
Decoration
Furnishings
Flooring, ceiling, skirting and cornice
Lighting
Table appointments
Atmosphere and ambience
Dinner presentation
Dinner quality
Breakfast
Bar
Additional points
6. KITCHEN
Design, layout,
Well equipped utensil, dish and cutlery washing
Adequate separate storage areas for cooking equipment and utensils
Clear separation of storage and food preparation for meats, vegetables, raw food etc
Easy staff circulation
7. HOUSEKEEPING AND MAINTENANCE
Scheduling
Material and equipment storage
Bedrooms
Guest bathrooms
Public areas
Public toilets
Bar, restaurant, dining areas
Maintenance
8. GENERAL SERVICES AND SERVICE
Welcome, friendliness and attitude
Appearance of staff
Reservation and check-in
porterage
Room service
Laundry service
Meal service
Check-out efficiency
Tourist information
Communication and business facilities
9. ADDITIONAL FACILITIES
Business, conference
Leisure
General
10. SUSTAINABILITY
Waste
Energy
Business practices
11. SAFETY AND SECURITY
Entry security
Fire safety
Medical, first aid
12. STAFF FACILITIES AND TRAINING
Qualifications and training
Work conditions, staff facilities
SUMMARY OF POINTS AND STAR GRADING
Minimum % Scores per Grade for each section

Main Issues Concerning Results of Hotel Assessments

After assessments in Phases 1 and 2, the following issues were identified because of their
significant impact on the quality and grades of many hotels. These include;
1. Inexpensive solutions for immediate improvement of hotels.
Many of the issues that resulted in a lower grade were a result of poor maintenance and
inefficient housekeeping. These are issues that can be readily overcome with relatively little
investment. They were equally significant in all of the assessed regions.
Many of these maintenance and housekeeping issues were a result of unqualified and
inexperienced management.
2. Potential to improve star grading and meet minimum requirements
3. Urgent need to improve kitchens
4. Lack of fire and safety, food and hygiene certification
5. Inadequate and extremely poor staff facilities
6. Understanding of sustainability
7. Undersized guest rooms below 15 m²
8. The academic qualifications of the general manager
9. Competence of staff
What makes a hotel a 3 star hotel?
3-Star Rating: Moving on Up

These hotels are generally more stylish and comfortable than one and two-star hotels, and
they offer a wider range of services and amenities: a fitness center, a pool, business services,
an on-site restaurant, room service, conference rooms, and valet services

1-Star Rating: The Bare Necessities

A one-star hotel is simply a place to rest your head for the night. Generally owned
by a sole proprietor, these hotels offer modest rooms with nothing more than a bed
and bathroom. There are no restaurants on-site, but there should be one within
walking distance of the hotel.

These hotels don't offer extra amenities or special services. In other words, you're
not going to get a nightly turndown service with a Godiva chocolate on your pillow
here. However, you should have access to nearby public transportation and
reasonably priced meals and entertainment.

2-Star Rating: A Few Extras

Although similar to a one-star hotel, a two-star hotel is generally part of a larger
chain or franchise as opposed to being individually owned (think Econo Lodge or
Days Inn). The accommodations are similar to a one-star hotel's: simple and basic.
However, two-star hotel rooms include a television and a phone. Plus, these hotels
typically offer an on-site restaurant or dining area and daily housekeeping service.
The front desk at a two-star hotel is usually open 24 hours a day.

3-Star Rating: Moving on Up

Three-star hotels are typically part of larger, more upscale hotel chains, such as
Marriott, Radisson, and DoubleTree. These hotels are generally more stylish and
comfortable than one and two-star hotels, and they offer a wider range of services
and amenities: a fitness center, a pool, business services, an on-site restaurant,
room service, conference rooms, and valet services.

The hotel rooms are larger with higher-quality, contemporary furnishings and often
include fancy extras like flat-screen TVs with extended cable. Three-star hotels are
located near a major expressway and local attractions, and they are often geared
toward business travelers.

9 IMPLEMENTATION OF THE PROJECT

9.1 Imple,entation progranune

Roughly estimated the implementation period will take about 15 months from the first actual
negotiations with investors to the start of commercial production. As an industrial site in Broadhurst will
be levelled and fully serviced by electricity, water and infrastructure any difficulties which might cause
delays are not expected.

The implementation time schedule is shown in the following bar diagram. As this feasibility study has
ben excuted on the basis of tenders from different equipment suppliers any major deviation from the
selected technology is not taken into consideration. Practically taken same technology for nail
production has been suggested by all nail machine suppliers. Even the performance characteristics of
machines differ very little from each other as can be seen from Tables 2-4 in Chapter 6. The same applies
to the machines for chain link fence net (Table 4 in Chapter 6).Thus the final selection can be made
without long delay and inquiries can be sent to equipment manufacturers in a very short time. Final
discussions could take place within 2 1/2 months' time and the necessary equipment could be ordered.
The same timing appears to be relevant for civil engineering works as there are no special problems
about technology. The final discussions with building contractors and acceptance of bids can take place
at the same time as the machinery is ordered. Final drawings can be delivered about a month later. Of
the estimated implementation period the first phase of 3-4 months has been devoted to finance and
sales negotiations (especially with wholesalers) in onier to meet a ready market at tre start of the
production.

It is assumed that the promoters will not have any technical experience about this kind of manufacture.
The employment of a managerial technical expert is essential in order to select suitable equipment for
the plant and also to cooperate with the architect and authorities about the factory building and the
plant. For the employment of the managerial technical expert totally 15.000 birr has been allowed
(schedule 9), including a stay of about 2 1/2 months on the spot at the start of the implementation and
an additional 1 1/2 months' supervision period at the start of production. The provision also includes
two trips between home country and Botswana. This allowance may increase by unexpected delays in
implementation.

For training of manpower an expatriate technician has to be engaged for a period of at least three
months. For this training period a11d for one trip between home country and Botswana totally 9.000
Pula '..as been allowed. The local architect's fees are es~1mated to 3.000 Pula. The costs for supervision
of t~e construction work are supposed to be included in the costs of the building.

The manager and the secretary should be employed about three months before the start-up. The local
technician has to participate in the implementation at the end of the construction period and at the
erection. Erection and test-run will be supervised by the staff of the machine suppliers. The costs are
included in the machine erection costs in schedule 6-2. Training period is dependent on the skill of the
employed staff. Training period may be far longer than estimated and thus increase training costs.

The suggested implementation progratm:lE. is shown in the attached bar chart and is tabulated below:

Months Action
Attract (investors) promoters.\ Negotiate
sources of finance.
Negc:tiah· government concessions.
Contact distribution channels.
Register compar.y.
Employ managerial technical consultant
giving 2id at final dibcussions with officials and
whnlesalers, ~reparing machinery specifications,
sp~cifi~ations for archit~ct~
specifications for raw-material, giving aid in
acquisition of plot. Final discussion about
technical equipment.

Employ local architect.

Put out request for tenders for civil engineering.
Buy plot for factory.

Order machinery and equipment.

Accept civil engineering bids.
 Advertise for local manager and local technician

Manufacture and transport of mechanical equipmen

Civil engineering construction.
Employ Supervise manager. completion of civil engineering.
Check raw-material requirements
\ Employmachinery

Employ managerial staff.

Receive raw-material
Employ manpower.
Prepare for start-up.

Start trial production

\
Start commercial production

PREPARE BLTILD NG & MACH INER~ 5PE1 ,IFIC ~TIOtllS

Initial Working Capital for Two Months

The major costs selected to be financed with debt are only cost of wheat, packaging & tread,
and Salary.
5.3.1
5.3.2 Auxiliary Materials for two months
As indicated above on table 7, at 60% capacity the plant will produce 5,670 tones of premium
quality of wheat flour in the first production year
Auxiliary materials required are pp bags of different size for packing flour and sewing thread,
for a plastic bag 100.00 Birr per ton taken as unit price while a sewing thread 20 birr per tone
taken as unit price
The cost of pp bags is birr 94,500 (945*100)and thread is birr 18,900 (945*20)
The cost of auxiliary materials is estimated at Birr 113,750.00 for three months
5.3.3 Employee Salary for the two months
As indicated above on table1, Estimated annual salary including fringe benefits is birr
675,324.00. Salary and benefits for three month estimated birr 112,554.00 (675,324/12*2
Generally, the total cost of Initial working capital is estimated at Birr 20,789,504.00
Initial working capital for two months are shown below
Table 13 Initial working capital for two months are shown below
Description Cost for Two Months Remark
Purchase of Wheat Grain 20,563,200.00 642.60 ton wheat* birr16,000.00*2 month
Auxiliary Materials 113,400.00
Employee Salary 112,554.00
Total Initial Working capital 20,789,504.00
As indicated in the table above, the minimum days coverage considered for one turnover is 30-
90 days. The working capital amount is determined to be Birr 20,789,504.00 for two months.
The incremental working capital will be covered from the internally generated cash

Annex 3 Working Capital Cost For One Month

A. Personnel
Designation No Salary/month Total Salary/
month
General manger 1 5,000 5,000.00

Marketing and Sales 1 4,500 4,500.00

Financial and Admi. 1 3,500 3,500.00

 Accountant 1 3,000 3,000.00

Sales Person 1 2,500 2,500.00

Laboratory Techs 1 4,000 4,000.00

Miller/ Operator / 1 5,000 5,000.00

Machinery helpers 1 2,500 2,500.00

Raw mat. Store man 1 2,500 2,500.00

Fin. goods Store man 1 2,500 2,500.00

Washing man (wheat) 1 2,500 2,500.00

Unskilled labor 5 2,500 12,500.00

Guards 2 1,500 3,000.00

    Sub total 53,000.00

P/ contribution 11% 5,830.00
Total 58,830.00

p.32

ANNEXED 4

B. Raw Materials per month

The capacity suggested in this report, at 75% capacity is milling 27 tons of wheat per day The
plant will operate 2 shifts of 8 hours a day and for 25 days in a month. Over all total milling
capacity is about 675 .00 tons of wheat per month.
Particular Qty per tone Cost per tones T/ Cost per Month
7,863,750.
Wheat 675.00 11,650.00 00
pp bags 506.25 120.00 60,750.
 00
6,581.
sewing thread 506.25 13.00 00
Transportation Lump sum 30,000.00

7,961,081.00
Total

C. Utilities per month

Particular T/ Cost per Month

Electricity 20,250.00
Water 1,012.00
Total 21,262.00

D. Repair and maintains per month

Particular COST
Oil & Lubricants 167.00
Repair & maintains 20,500.00
Lab. & Cleaning 417.00
21,084.00

E. Insurance and promotion per month

Particular COST
Insurance 1,250.00
Promotion 1,667.00
p.33 2,917.00

F. Others Expenses

Particular T/ Cost per Month

625.0
Printing 0
20
Telephone 0.00
Stationary 625.00
Miscellanies 41.66
1,491
.66
Total Working Capital Cost for one month estimated br. 8,066,665.66

Total Capital Cost is estimated birr 2,956,874.08

Investment Cost 11,023,539.74