PROJECT LOCATION: - OROMIA REGIONAL STATE, EAST

SHOA ZONE MEKI TOWN.

OWNER NAME: HABTAMU MEKONN (TONI)

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 JANUARY 2020
OROMIA, ETHIOPIA.

1. EXCUTIVE SUMMARY

The purpose of this project proposal is to demonstrate the overall business performance of

Habtamu Mekonen (Toni) Hotel and Commercial Centre forecast 10 years feature operation

and to request bank loan. The promoter, Habtamu Mekonen Hotel and Commercial Centre had

been a reach experience in different business and currently the promoter has owned his Fixed

and Moveable Assets in Meki Town and Finfne City administration. The promoter wants to

request 2,000 M2 of building land from Meki Town Administration to build loan of working

capital and settle loan of Oromia International Bank of birr 40,000,000 as well as requested

loan of birr 60,000,000.00 to make ready all part of the building for different business center.

The promoter was engaging in constructing this commercial center by attracting the current

economic condition, feasibleness of a business and the incentive that the governments give

towards this type of investment. The shareholders of Minchi commercial center has been

reach business experience in different business sector through their life in Ethiopia and this

reach experience and the current globalization effect motivate the promoter to invest in this

standard and very center of the town commercial center. This commercial center had been

began the construction before 10 years ago and currently its construction is reaching around

85% and still under construction as well as started business. The promoter until now invests

more than birr 60.85 million for the commercial center under construction. The capacity

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 utilization of commercial center and bed services will be at 70%, 80%, 90% and 100% from

year one to three respectively and after it

The owners until now do by investing their capital and bank loan and reaches to the current

position. But from now the project want to need additional finance from financer that finance

their project for completion of commercial center building, equipping the hotel with furniture

and equipment, machinery, service minibus, stand by generator and working capital by

working with real development partner bank. The promoter seeks loan able fund birr 60.000

million for fixed investment and for working capital that will be repaid back within 10 years,

with a one year grace period that will be repaid on quarterly installment base.

The project is creating an employment opportunity during the construction for 200

individual on daily labor, and contractual base more over when it will be began its regular

operation and operating at full capacity it create an employment opportunity for 34

individual on permanent and contractual base.

The commercial center will be managed by well qualified professionals having reach

experience in hotel and tourism industries those simply identifying the interest and demand of

their customer to deliver quality service on time and have a vision to transform the business to

the next step within short period of times by efficient managing of both human and financial

resource.

The financial statements of Minchi commercial center i.e. balance sheet, income statements

and cash flow statements at the end of the year’s show a health surplus of revenue over

expense and current asset over current liabilities when the hotel will be operating at full

capacity.

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The project will envisages the land for newly build modern hotel and restaurant plant or
G+2 building with 43 self contend bed rooms at the heart of Meki town beside to main road
from Addis Ababa to different towns in Oromia Region and South region of Ethiopia.

The market study shows that in Ethiopia towns currently an additional other international

hotels are required. If additional international hotels are not established the requirement will

increase to 8,596,520 hotels by the year 2031.

Since there is some modern hotels and restaurant in Meki town that accommodate the required
services of foreign and local tourists, the demand for the service is very attractive.

The total initial investment requirement is estimated at birr 7.732 million, of which
89.23% is for built building construction.

The project will create permanent employment opportunities for 29 female and 10 male total
39 persons.

The project is financially viable with an internal rate of return (IRR) of 25.6% and a net present

value (NPV) is Birr 304 thousand discounted at15%.

This project profile envisages the establishment of a modern hotel project in Oromia Regional

State Meki town. Since there are no modern hotels that accommodate the required services of

foreign and local customers, the demand for the service is very attractive.

2. BACKGROUND INFORMATION

2.1. General

I) Project Type: Hotel Project

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 II) Project Location: Oromia Regional State, East Shawa Zone Meki town.

III) Project promoter: Hola Debo

IV) Legal form of Business: Sole proprietorship

V) Source of capital: bank loan and owner’s equity

2.2. Brief history of the promoter

The promoter of this project, Hola Debo, is a private limited company founded by one individuals

namely Habtamu Mekonen (Toni) who are natives of the area and have much interest to invest in

the hotel industry.

2.3 The Project Idea

To pursue the objective of business diversification in a sector which has significant economic

importance to the promoter in particular as well as to the country at large, it has been assessing

investment opportunities for many years. It has realized that the hotel and accommodation service

in the country is very low and the government also provides lucrative incentive to promoter who

engaged in the sector.

Having realized the ample market in the sector, the project promoter has decided to invest in the

development of tourist class hotel that will provide modern accommodation, restaurant,

multipurpose conference facilities and other recreational activities to local and foreigners.

2.4 The Project Objectives

The project under discussion besides the investor’s motive for diversifying his business operation

could also be recognized as part of the response to the country’s call for the local as well as foreign

investors to invest in every sector of the economy in attempt to facilitate the economic development

of the country. In light of this, the envisaged project will have economic benefits to the promoter, to

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local community as well as to the national growth at large. Some of the factors cited as objective of

the project could be summarized as follows: -

Having acquired a lot of experience in the sector with the existing growing business the investor

decided to rent the hotel so as to realize the under listed interrelated objectives;

1. To provides decent hotel services there by contributing to the development of tourism in

the country,

2. To provides modern multipurpose conference facilities both for national and

international conferences,

3. To contribute its part for the national economy by making the tourism sector grow,

generating income to the government as a form of tax and creating employment

opportunity to various individuals,

4. To enhance its own income as a form of profit and meet shareholder’s expectation.

3 MARKET STUDY
3.1. Global tourism market trend

According to UNWTO statistics, international tourist arrivals (overnight visitors)

worldwide increased 6% in 2018 to 1.4 billion, based on data reported by destinations
around the world. Given the remarkable growth of international arrivals in recent years,
the 1.4 billion mark has been reached two years ahead of UNWTO’s long-term forecast
issued in 2010. Furthermore, and based on current trends, economic prospects and the
UNWTO Confidence Index, UNWTO forecasts a growth of 3% to 4% in international
tourist arrivals worldwide in 2019, more in line with the historical growth trends.
Figure 3.1 International Tourist Arrivals (% change).

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Source: UNWTO, World tourism barometer, Volume 17, January 2019.

3.2. Regional tourism market trends

Africa received 62.6 million international tourist arrivals in 2017, only 4.7% of total
international trips worldwide. Sub-Saharan Africa was the destination of 40, 9 million
tourists, that is 65% of the arrivals to the continent In terms of recent evolution,
available data points to a 7% increase in arrivals in 2018 into African countries, bringing
the estimated number of international arrivals to 67 million, although figures cannot be
definitive at this point due to lack of updated info from many countries. In any case, the
67 million would represent 5% of the world’s total arrivals.

Sub-Saharan Africa grew an estimated 6% in 2018, according to limited data available,

with island destinations Reunion, Cape Verde and Mauritius posting robust growth. Kenya
reported positive growth as well, with a surge in arrivals in July and August thanks to
improved air connectivity. The sub-region’s most visited destination, South Africa,
reported moderate growth, partly due to a strong currency and a drought crisis in Cape
Town in 2018.

Figure 4.2 International Tourist Arrivals, Africa and Middle East (% change).

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Source: UNWTO, World tourism barometer, Volume 17, January 2019.

3.3. Ethiopian tourism market trends

According to official statistics, in 2017 more than 933.000 international arrivals

were registered in Ethiopia. This figure represents an increase of 7.2% over the previous
year. Ethiopia’s Travel and Tourism economy grew by 48.6% in 2018, the largest of any

country in the world, according to the World Travel and Tourism Council (WTTC) review of

the economic impact and social importance of the sector released, in 2018, Travel and

Tourism contributed BIRR 202 billion US$7.4 billion to the country’s economy, an increase

of BIRR 59 billion (US$2.2bn) on 2001 represents 9.4% of Ethiopia’s total economy. The

WTTC research, which compares the Travel and Tourism sector across 185 countries,

shows that in 2018 the Ethiopian Travel and Tourism sector significantly outpaced the

global growth rate of 3.9%, the African growth rate of 5.6%. Supported 2.2 million jobs,

or 8.3% of total employment, was primarily driven by leisure travellers, 79% of the Travel

and Tourism spending was generated by leisure visitors and 21% from business travellers

and is strongly weighted towards international travel and accordingly 77% of the Travel

and Tourism spending came from international travellers and 23% from domestic

travellers.

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 Commenting on the numbers, Gloria Guevara, WTTC President
and CEO said: “Ethiopia’s Travel and Tourism boom was one
of the great success it exceeded our sector’s global and
regional comparisons to record the highest level of growth of
The pillars of
any country in 2018. This has been driven by the strong
Meki Hotel
performance of aviation in the country and the development
philosophy focus
of Addis Ababa as a dynamic and growing regional hub. Travel
on triple bottom- and Tourism in Ethiopia now accounts for one in every eleven
line benefits for dollars in the entire economy and one in 12 of all jobs.
the investors,
local 3.4. Market projection and market size
communities
and visitors. Visitor exports are a key component of the direct
contribution of Travel and Tourism. In 2017, Ethiopia
generated ETB 50,447,700 in visitor exports. In 2018, this is
expected to grow by 6.6%, and the country is expected to
attract 1,115,000 international tourist arrivals. By 2028,
international tourist arrivals are forecast to total 1,598,000,
generating expenditure of ETB 79,309,100, an increase of
4.0% pa. Regarding investment in Ethiopian tourism, Travel
and Tourism is expected to have attracted capital
investment of ETB 18,490,300 in 2017. This is expected to
rise by 5.8% in 2018, and rise by 5.7% pa over the next ten
years to ETB 34,179,500 in 2028. Travel and Tourism’s share
of total national investment will rise from 2.4% in 2018 to
2.7% in 2028.

Leisure travel spending (outbound and domestic) generated

87.1% of direct Travel and Tourism GDP in 2017 (ETB
69,933,000) compared with 12.9% for business travel
spending (ETB 10, 350,600). Business travel spending is expected to grow by 4.3% in 2018
to ETB 10,799,000, and rise by 5.6% pa to ETB 18,585,400 in 2028.Leisure travel spending
is expected to grow by 7.1% in 2018 to ETB 74,928,300, and rise by 4.8% pa to ETB
119,837,000 in 2028.

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 3.5. Market segment and targeted market

Two very important Target Market Segments are Foreign Tourists and expatriates living in
Ethiopia; primarily in Addis Ababa. Hola Hotel will seek to attract the same market of
travellers that are seeking African safari and nature-based travel experiences. There is a
growing interest in the visitation of the Southern part of Ethiopia by the following niche
market segments:

• Beginner and advanced birdwatchers

• Culture and Natural History interest groups

• SAVE Alliance (Scientific Academic Volunteer and Education travel) such as

volunteerism, animal tracking, wildlife research, and university field school groups

• Ecotourists

• Soft adventure walking and hiking

• Conference participants

3.6. Addis based expatriates (“Foreign Residents)

There is a very large community of foreign expatriates living in Addis Ababa: a number of
UN agencies headquartered there, the African Union, international NGOs, and several
large national and regional corporations. Many travels are made outside of Addis Ababa on
weekends and holidays. Many receive visits from friends and relatives. They tend to travel
to destinations within a 3-hour drive of Addis Ababa on weekends, like Lake Langano, and
destinations further afield during holidays.

In 2010 E.C (2017-2018) 1,976 Ethiopians, 378 foreigners residing in Ethiopia and 3,331
foreign tourists visited Southern part of Ethiopia (Source: EWCA). The Park is among the
poorly managed in the Ethiopian parks system, yet it is easy for weekend destinations from
Addis Ababa. Mwki is around two and half hour drive from Addis Ababa and therefore a
much more viable options for Addis-based expatriates.

3.7. Marketing strategy

The marketing strategy will effectively position the hotel as the leading authentic brand
hotel in Ethiopia. Promotional activities include the development and distribution of various

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marketing tools that will address the needs of a variety of users, including independent
travelers, for both international and domestic market and clients on guided group trips:

• Group and independent travelers will book and will utilize social media and other online
multi-media resources;
• The travel trade will require sell sheets with product information, sales manuals as well
as website content (photos, videos and descriptions) to effectively promote the
destination; and
• The press will need facts sheets, story ideas, press releases and a high quality
multimedia library in order to profile the destination.

The current collateral materials will be upgraded to suit the current status of the hotel.
The look and feel of the designs will be consistent across all campaigns in order to create
brand recognition among consumers, travel trade and partners.

3.7.1. Customer/product
The current and potential customers of the hotel are already indicated elsewhere in the
document and it is necessary to absolutely follow the taste of the customer in matching
the product with the customers’ need that might change from time to time. Ensuring the
satisfaction of customers is of paramount importance. It will be necessary to deal with the
quality of the product from production to supplying to the customer with due consideration
of sustainable development.

3.7.2. Cost/price

Cost and price are at the centre of the marketing strategy. Cost effective production
philosophy will be followed through conservation of energy and other inputs so as to
provide value for money. It is based on the philosophy of People, Planet and Profit (PPP).
The price structure will ensure the anticipated benefit of the product and that it has good
value for money.

3.8. Communication/promotion
3.8.1. Marketing goals

The hotel will measure the success of the marketing strategy via a number of measurable
targets including:

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 1) To become the top hotel listed on Trip Advisor for Ethiopia,
2) To achieve coverage in 10 editorials per year,
3) To achieve 1,000 web visits per day by the year 2022 to from the current very low
visits, and
4) To achieve the following target occupancy rates and revenue (in Birr):

Year 2021 2022 2023 2024 2025

Average Occupancy 50 52 54 56 58
10,682,15 12,339 14,136 17,613
Target revenue 9,154,399 9 ,809 ,519 ,321

3.8.2. Distribution

Custom strategies will be developed for the following distinct distribution channels, with a
significant emphasis on tour operator distribution. Sales will be driven from an office in
Addis Ababa. Activities will include development of tools such as sales manuals, web-based
seminars (webinars) to educate the trade, development of regular electronic fliers to
inform trade of specials, niche packages (e.g., honeymoon and hiking packages).

Figure 3.9.2. Distribution cannels.

The occupancy targets listed in the previous section will be achieved by pursuing a mix of:

• Direct bookings
• Travel Agent and group bookings (10 – 15% commission)
• Tour Operators bookings (20 – 25% commission during the low season, while 10% in high
season)

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The level of commission paid has an inverse relation to the income generating value of the
group, i.e. direct bookings create the most value and cost no commission so are therefore
attractive, however Ethiopia, and Africa in general typically require some level of tour
operator or travel agent support to manage logistics for trip-planning and as such they are
a critical partner in marketing and sales.

- Direct Selling
- Special events and promotions in Addis Ababa
- Google AdWords / print ads
- Sales and Reservations Team
- Walk-ins
- Word of mouth
- Repeat guests
- Travel Agents
- Development of sales manual
- Sales calls to agents in Addis
- Sales calls to agents by representatives attending trade events abroad
- Electronic fliers to British Travel Agent Association and US specialty Agents
- Booking competition so travel agents who book the most clients in a set period win a free
stay
- Travel agent training program via webinars
- Affinity Groups
- Development of sales manual and group planners program (i.e. custom itinerary, %
discount plus free group leader for every 10 bookings)
- Sales calls to niche groups, NGOs, Embassies, corporate groups in Addis
- Sales calls and PowerPoint presentations to groups if attending trade events abroad
- Electronic fliers to group planners (wedding planners, meeting planners, group retreat
planners, NGOs, professional groups
- Familiarization trips (discount not fully complimentary)
- Online group travel agent training program via webinars
- Tour operators
- Tradeshow participation and sales calls to tour operators, participation at regional (e.g.
Karibu fair in Tanzania, India, etc.) and international trade shows. (E.g. ITB, WTM,
FITUR, and others that are vetted to be useful)
- Develop relationships with targeted operators in emerging niche and geographic markets
(meeting planners, wedding planners, yoga/wellness groups, France, Holland, Belgium,
Germany, etc.).

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 3.8.3. Promotion
The marketing mix to promote Awash Falls Lodge will include the following promotional
activities:

 Branding
Currently, the Lodge has its own Logo as a brand to differentiate it from the rest of the
lodges in the country and in the area of Awash National Park.

 Electronic Marketing and Social Media

Travelers today rely heavily upon the Internet and other electronic resources to research
and book their vacations. The promotional plan incorporates innovative marketing tools
that will position the properties as a leading lodge brand in Ethiopia and Africa, attracting
the rapidly growing market of technology savvy travelers. All Internet marketing activities
will incorporate search engine optimization (SEO) to increase the search ranking of
keyword dense phrases relevant to lodges in Africa and Ethiopia. All sales sources can, in
some way, be positively influenced by increased Internet presence.

 Websites and Application (App)

Hola Dibo Hotel has already an exposure through its own website. However, the website
will be redone to showcase dynamic, large images, embedded video and will have industry
standard keyword and key-phrase density to promote the hotel internationally. Web-
linking and back-linking is a powerful method that will also be used to increase web
presence. Press and travel trade sections will also be features of the website.

 Paid Online Advertising with Google AdWords

Google AdWords is a global advertising platform to reach target audiences efficiently

through pay-per-click (PPC) advertising. The AdWords program includes local, national, and
international distribution that can be targeted for the most efficient use of advertising
spend. Google's text advertisements are short, consisting of one headline consisting of 25
characters and two additional text lines consisting of 35 characters each. Ads will be
developed for general advertising and niche marketing campaigns to help drive traffic to
the website and encourage more bookings. Many hotels and lodges in the tourism industry

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find Google AdWords to be one of their most important and cost effective forms of
marketing.

 Social Media

A social media strategy will encourage travelers to share their experiences and purchases
with friends and family through sites such as Face book, Twitter, and YouTube.

Word of mouth promotion is a popular source of information for travel planning. Social
media is a marketing tool gaining increasing importance to share these word-of-mouth
recommendations electronically via the Internet. Target sites will include but are not
limited to:

 YouTube.com: youtube.com has been named the number two (after Google)
online search engine for travel research on the Internet. Awash Lodge channel will
include a combination of existing raw video footage and eventually more developed
commercial-type 30-second videos of the lodge.

 TripAdvisor.com: The largest travel review website in the world, it is an excellent

outlet on which to post and make quarterly updates for each lodge, targeting
travelers on the English, German, French, Spanish, Dutch and other language
versions of the Trip Advisor portal. Tripadvisor.com is one of the most important
online portals that travelers use when making vacation decisions. It is imperative
that the lodges take full advantage of the tools and widgets available. These include
but are not limited to:

 Updating the postings quarterly with new photos, video and fresh descriptions

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  Upgrading to a paid listing to allow direct link for travelers to the website
 Run monthly comparative analysis with all lodges and competitors
 Insert widgets on the website
 Monitoring trip advisor weekly and coordinate with operations team to adjust
service when needed. Negative reviews can be responded to with Trip Advisor’s
“Manager’s Response.”

 Facebook and Twitter: These pages will be regularly updated on facebook.com,

twitter.com and other social networking sites popular with target markets. The
sites will be used to post lodge highlights, information, news updates, destination
facts, special events, tourist reviews, and updates from managers, chefs, tour
guides, guest reviews, and much more. A 52-week calendar of themes will be
developed in advance (each quarter) to ensure that the marketing coordinator is
posting fresh content on a regular basis .

 flickr.com: The saying that a photograph is worth a thousand words certainly

holds true in the tourism industry. Without high quality, high-resolution images,
marketing and public relations strategies have a lower chance of success. The
market strategy prescribes photo shoots at lodges by a professional photographer
early in the marketing program so that images can be integrated into all campaigns.

Catalogue existing photos;

• Develop comprehensive shoot list;

• Set up Flickr Pro account with existing photos including descriptions and geotagging;
• Conduct photo shoots;
• Edit and develop in-house directory, Flickr directory and password protected high
resolution FTP site for press.

The photographer will also deliver professional quality, high-resolution images of nearby
attractions that appeal to primary and secondary target markets and capture the essence
of both The Awash National Park and Awash Lodge and to make marketing collateral and
tools more visually appealing. The key activities related to the photo collection include:

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  Online Forums: Online forums are another way people get information and ask
questions about activities and Hotels. Most forums have search capabilities to help
people find specific topics or destinations. Hola Hotel will be registered on various
forums, utilizing the search function to find recent entries regarding Ethiopia or
activities to do with nature and culture based tourism in general. Many forums have
rules against directly advertising for a business or hotel, therefore responses to
inquiries should be given as suggestions from travellers.

Overview of Some Popular Travel Forums:

Thorn Tree Real Travel

www.lonelyplanet.com/thorntree/ www.Realtravel.com

Travel Pod Travellers point

www.travelpod.com www.travellerspoint.com

 Blogs: Branded blog will be developed using Word Press (a free platform) and will
provide an outlet for sharing wildlife sightings by lodge staff and guests. The blog
will consist of approximately one-paragraph engaging story of what was seen and a
photo or video clip of either the wildlife sighting from the guest or from the photo
archive. Each week wildlife and culture will be featured. A model from an award-
winning ecolodge blog is: www.blog.laparios.comn Results will be monitored using
Google Analytics and other tools.

 Collateral Development

Print collateral materials are currently in use but will be limited in size, with a call-to-
action for reading more information on the website. This follows growing industry trends
and both reduce cost and minimize the negative environmental impact of high quantities of
print materials. Materials include:

I. Sell sheets developed into a sales manual for trade outreach including sales calls,
trade shows, etc.;

II. Postcard-size brochures showcasing the lodge for trade shows or events;

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III. Business card-sized cards for departing guests with manager’s email address,
logo of the lodge, web address and invitation to post on trip advisor, Flickr, Facebook,
twitter and YouTube will be a simple, yet effective marketing tool to help encourage
more online content to be constantly posted about the lodge; and
IV. Photo book of the hotel that is placed in the reception of the hotel and also given
to important travel trade contacts. Photo albums at the front desk of the hotel will be
excellent marketing tools to help showcase the Lodge to visitors. These books can be
developed quite inexpensively using online book publishing companies such as Mac’s I-
Photo books. Since they can be customized easily, they are also a good idea for
incentives and gifts for tour operators and other trade professionals.

 Public Relations/ Corporate Social Responsibility

Positive media coverage raises awareness about destinations and experiences and can lead
to direct leads and enquiries. Journalists and media outlets are approached constantly by
destinations and tourism providers asked to feature their products, so it is important to
have a carefully targeted approach to gain their attention.

When implemented strategically, PR activities can be one of the most cost-effective

means of promoting a destination, since they generate editorial coverage, which is growing
in importance to consumers as an unbiased source of travel information versus
advertisements paid for by the destinations and service providers.

 Media outreach

Media outreach activities will be timed to coincide with product development launches,
travel trade events and festivals to maximize success. The media activities would be
guided by the following steps.

Step 1: Develop a Media Target List

Print, online and broadcast media outlets will be targeted. Specific categories of outlets
to be targeted include:

• Magazines • Travel guidebooks • Newspapers

• Online outlets • Broadcast / television • Travel trade publications

Step 2: Develop Story Ideas

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Development of creative and interesting story ideas will be valuable for use in targeting
pitches to the above niche travel publications. Themes from the various community tourism
products will be used along with story ideas related to current popular themes such as
birding, adventure travel, Ethiopia as an alternative safari destination, romantic getaways,
cuisine, cultural performances, handcrafts, travel philanthropy and volunteerism. The story
ideas will be built upon and continually updated as new story ideas and angles emerge.

Step 3: Media Relations Activities

With a strong, fact-based foundation in place, the next step is to become active in
generating media coverage through a number of activities.

 Targeted Editorial Placement

Press Releases and Proactive Editorial Placement – Delivering stories to the Right

Journalists:

 Press releases will be developed to announce product developments, festivals and

news along the themes of story ideas that were developed in Step 2.

Press releases would be sent to the most relevant media outlets along with personalized
emails and phone calls to help encourage them to feature stories in their publications. For
example, wedding and honeymoon stories about romantic safari getaways will target major
honeymoon/wedding magazine and newspaper wedding and travel columns in target
geographic markets.

 Press Visits: Bringing the best media to visit the Lodge will increase local and
international media coverage. There is no substitute for seeing the product first
hand so arranged press visits are extremely important to create allies in the
industry and generate editorial content. The focus will be on quality rather than
quantity - attracting media outlets with the most targeted reach to key market
segments.

Select journalists and media outlets from the target list would be invited to visit the
Lodge to experience the products that would be of the most interest to their story angles.
Working closely with airlines such as Ethiopian Airlines a tailored itinerary would be

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developed for each journalist. Complimentary or discounted trip contributions will be
requested from the airlines or destination marketing organizations to significantly offset
the costs of the press trips, otherwise media would be expected to cover their own
flights. Following press visits, it is critical to follow up with each journalist to ensure
favorable editorial placement.

 Leveraging Editorial Coverage: Once successful media stories have been

generated, it is vital that they be leveraged for maximum exposure. Success stories
should be shared with partners, online and with key travel trade who can distribute
these editorial placements to their networks and clients. These results can be
shared in public and private meetings, on websites, via e-mail, in collateral materials,
and through the local news media. By linking the promotion activities, consumers will
gain an increased insight about Hola Hotel’s attractiveness as a travel destination.

Develop Online and hard copy press kit for distribution to media representatives at special
events, festivals, trade shows and during press trips. This kit will consist of a branded
folder, facts sheets, circuit sell sheets, press releases, story ideas and a USB stick or link
to URL where high-resolution images can be downloaded.

 Eco-Awards: A target awards list will be developed to apply for /self-nominate

the Lodge in late year one or year two in order to highlight exemplary
environmental and social practices.
 Word of Mouth: Word of mouth promotion will continue to play one of the largest
roles in driving sales in the coming years. With a foreign resident population in
Addis playing the biggest role in sharing feedback on their weekend and short
holiday getaways and experiences with the properties in Awash NP.
 Merchandising: As a low-cost investment to help brand the Lodge, Awash polo
shirts will be developed to sell to the key target geographic markets. An entire line
of branded items can eventually be developed; merchandise purchased by travellers
can be an excellent marketing tool given that a good percentage of clients are
residents of Addis from the international foreign resident community.

Travel Trade Placement/Outreach: The travel trade plays a critical role to the
promotion and sales of community tourism products. Promotion will include the following
activities:

• Package Promotion
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Travel trade collateral including sell sheets, sales manuals and website content will be
distributed to targeted regional, national and international travel agencies and tour
operators both electronically and in person, at travel shows and events and during sales
calls. Consideration will be given to the markets and niche segments that the trade is
selling to, in order to customize the outreach in a way that will generate interest in
promoting the packages to their clients, e.g., birding packages will be promoted to
specialty birding operators, romantic add-ons promoted to honeymoon travel agents and
wedding planners, etc.

• Familiarization (FAM) Tours

Specialized and niche trade will be targeted and invited for group tour operator
familiarization (FAM) trips in order to provide them with a better understanding of the
destination, so they can begin promoting it to their clients. FAM tours will be organized in
close partnership of the tourism board and airlines to customize itineraries.
Complimentary or discounted trip component contributions will be requested from the
private sector partners including airlines, tour operators, lodges and day trip experiences
with the community tourism enterprises. This will significantly offset the costs of the
trips. Following press visits, it is critical to follow up with each journalist to ensure
favorable editorial placement.

• Seminars and Online Webinars

Specialized seminars and online webinars will help educate trade about both the
destination and the hotels, including Hola hotel. Webinar presentations will target
specialty tour operators and travel agents in an hour-long webinar presentation. In some
cases direct presentation would be made to individual groups and tour operator
associations. The webinars would be saved and archived online for future reference and
maximum exposure to travel trade representatives.

• Travel Trade Shows

Trade show attendance is an important component of a successful tourism promotion

strategy that is attempting to reach a higher concentration of trade bookings. In order to
effectively market the lodges, a focus will be on highlighting Ethiopia as an emerging
tourism destination in Africa. Trade shows will be an essential part of the marketing mix
and it can be done in an affordable way via representation and partnerships. The European
travel trade professionals, more so than other international trade, rely heavily upon these
shows to learn about new products and receive updates on destinations. Since Ethiopia’s

21 | P a g e
primary target markets are European, it is critical to attend these events and cultivate
relationships with travel agents and tour operators, encouraging them to present and sell
Hola hotel to their clients.

With the emphasis placed on direct contact and face-to-face interactions on product
features, destination access, and attractions, trade shows provide a real time event that
will significantly position the hotel in the international tourism marketplace.

The success of the trade show plan relies upon choosing the most relevant events that will
reach the target market trade representatives and consumers. Trade show attendance will
be organized in close coordination with the tourism board, airlines, as well as individual
contacts to negotiate sharing booth space or book adjacent booth space and coordinating
visits with key trade contacts. Potential shows to consider attending include but are not
limited to the following:

Table. 4.12.2-1 International Tourism Trade fairs.

Name of Travel Show Location of Month of Markets to attract

the show Show
FITUR Int. Tourism Trade Fair Madrid January Spin
ITB, Berlin Berlin, March Germany and Scandinavia
Adventures in Travel Expo Washington, March Washington,
DC,
Bird Fair London, UK August UK and other birding
market
Travel and Adventure Show New York, USA October Travel and Adventure
World Travel Market (WTM) London, England November UK and other Markets

• Develop cost effective pitches through

a) Database development of email list serves with embassies, expatriate groups and

website, etc.

b) Distribution of email fliers promoting weekend and one-week getaways, differentiating

from the typical African safari-only packages
c) Promoting corporate retreats

• Other Tactics and Campaigns

22 | P a g e
 I. For each niche market targeted a cost-effective strategy will be developed and get
cross-promoted in the Public Relations activities to feed back into/generate PR/CSR
benefits.
II. Festivals and Special Events: Festivals and events are known to attract visitor and
create destination awareness. Cultural and wildlife focused events will be developed and
promoted for the park and will help to generate bookings and occupancy in shoulder
seasons.
III. Repeat Business – Customer Relationship Management (CRM) records and databases for effective
client communications will be critical to maintain and electronic newsletters and e-fliers will help
encourage repeat business.

Table 4.12.2-2. Promotion by Geographic Market.

EUROPE (UK, GERMANY, OTHERS) AFRICA

Tour Operators and Travel Agents Travel trade (sales calls)
(trade shows, sales calls and FAMS) Targeted outreach
Website Enquiries, PR/Editorial Coverage Word of Mouth Print ads
Google AdWords
Travel trade Website Enquiries
Word of mouth, Events PR/Editorials Niche/Affinity Groups
GoogleAdwords

Table 4.12.2-3. Marketing Implementation plan.

PRELIMINARY TIMELINE AND KEY MILESTONES – YEAR 1

May
Mar

Nov

Dec
Aug

Marketing Tactic Oct

Sep
Feb

Apr
Jan

Jun

Jul

Brand promotion
Photo acquistion
Website renovation
Google AdWord campaign
E-marketing, social networking,
wildlife blogs
Develop and distribute promotional
ads and collateral
Lodge Soft Launch and Grande
Opening
Order branded photo books and

23 | P a g e
 merchandise

Press kit development, targeted press

&
Honymoo

Corporat
Adventu

Birding

Awash
safari
release and media outreach themes

Photo
Trvel
guide

NP
re

e
Dmestic tour

European

Photo safari
Tour Ops
Domestic
FAM and Press Trips

Regional

Birding
media
launch

Romantic Getaway
Photo Safaris

Bird watching

Hiking groups
Electronic fliers and outreach to

Corporate
Retreats
specials
travel trade and affinity groups on

Soft
niche themes
Quarterly e-newsletter to past or
prospective guests and friends of
Awash Lodge
Trade shows both domestic and
international

4. TECHNICAL STUDY

4.1 Location and Site

The project under consideration is located in Oromia Regional State east shawa zone Meki town.

The project has got competitive location advantage in that the area has all the required

infrastructures and various utilities; there are also different infrastructures in the town like Tel

services, Electric Light, rail road and others.

4.2 Land

The hotel building complex is established on a total plot are area of 1,500 m 2. The promoter will

obtain the project land from Oromia regional State government office through lease agreement

according to oromia regional governement land lease agreement.

4.3 Buildings and Civil Works

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The hotel will be a G+2 building complex will be complete within two years and the remaining

work is furnishing the hotel with standard furniture and fixtures.

4.4 Physical Layout

According to the building plan, the hotel consists of the necessary physical facilities such as toilet

and urinals, shower rooms, change rooms, equipment & food stores, fire protection, cooling & boiler

plant, washing and ironing rooms, and waste disposal systems. Moreover, there are office facilities

for the management and other staffs.

The building complex and ancillaries are designed by qualified architects taking into consideration

of the ventilation, light intensity required for the service, the number of people to be served, and the

number of employees required. Based on the main function and other auxiliary services of the

complex, the construction materials of floors, walls, roofs, doors & doorways, lighting, sanitary, etc.

are adheres the highest standards & requirements.

4.5. Pricing and Distribution

Pricing of a hotel and restaurant services could be classified into four main categories
i.e. food, beverage, meeting hall and bed rent. In this regard the daily average price by
category of service is given in table below. Type of food to be prepared at this site is more of
"ferenji" and cultural.
4.6. Room rate

Room rates are other determining factors to forecast project revenue. Room rates are indicated
at about 350 Birr for standard room, 700 Birr for Sweet rooms, 500 birr for Double bed rooms
and 250 Birr for single rooms.
As the hotel is a standard hotel with sweet facilities, the following rate is therefore assumed as
room rate depending on area of rooms and extra services.

25 | P a g e
Table 3.6. Room Revenue and occupancy Rate
Room Annual Revenue
Room Types Qty. Daily Rate /Birr/ Night/year/ in Birr
Standard rooms 20 350 360 2,520,000
Suit of rooms 6 700 360 1,512,000
Double rooms 3 500 360 540,000
Single rooms 14 250 360 1,260,000
Total 43     5,832,000

To arrive at total income of the project, contribution of food, beverage and other sources is
number estimated based on their percentage share from the total revenue as computed earlier.
Table 3.6A: Estimate of total revenue
S.N Source of Revenue Project Year

    1 2 3 4 5
1 Room Rent 4,665,600.0 4,957,200.0 5,248,800.0 5,832,000.0 5,832,000.0
0 0 0 0 0
2 Food Sale 1,017,036.0
791,028.00 847,530.00 904,032.00 960,534.00 0
3 Drink 1,780,000.0 1,897,000.0 1,931,550.0 1,931,550.0 1,931,550.0
0 0 0 0 0
4 Conference 1,011,560.0 1,112,716.0
760,000.00 836,000.00 919,600.00 0 0
  Total 7,996,628.0 8,537,730.0 9,003,982.0 9,735,644.0 9,893,302.0
0 0 0 0 0

5. PLANT CAPACITY AND PRODUCTION PROGRAMME

5.1. plant capacity

The Hotel will have a total of 43 bedrooms composed of the following units.
Room type No. of rooms
 Standard rooms 20
 Suit of rooms 6
 Double rooms 3
 Single rooms 14

26 | P a g e
 Total____________________ 43
5.2. Production Program

The service program of the proposed hotel and restaurant is assumed to start at 80% in the first
year and increases by 10% until 100% is reached in the second year.
5.3. Raw Materials and Utilities
5.3.1. Availability and Source of Raw materials

Required raw materials for hotel and restaurant service include food items, beverages (hot
and cold), room clothing, detergents and the likes. All raw materials are available in the
domestic market.
5.3.2. Annual Requirement and Cost of Raw Materials and Utilities

The cost of annual requirement of raw materials of the project is collected from current market
price and estimated as percentage of the respective service revenue as indicated in annex at the
end of the business plan.
Utility cost of the project is estimated to be about Birr 30,000 per annum and cost of
office furniture is Birr 5,000.
5.3.3. Location and Site

The location of the proposed project is at Adama city.

5.4. Motor Vehicles

In addition to the above equipment, the hotel complex needs vehicles for the transportation of food

items, drinks, and other items. Moreover, the hotel provides transportation services to customers

and tourists who will be accommodated in the hotel. Therefore, the hotel should have one Toyota

pickup and one minibus

The standards of the hotel could be judged both from its physical facilities, and indispensably the

quality of accommodation, food & drink services, and entertainments provided. Therefore, the above

listed equipment & furniture and vehicles are integral part of the hotel establishment in the

provision of high quality services.

27 | P a g e
 6. ORGANIZATION AND MANAGEMENT

6.1. Organization

The envisaged hotel project will be organized based on a simple functional organization structure

principle. It will have four departments under the Hotel Manager. The hotel manager will be

professional hotel manager who will be authorized fully to run the hotel with a standard set hotel.

The four department managers will be professional in hotel management and operation. Under the

departments there will be divisions and sections. The functional departments are Health and

Housekeeping Department, Marketing and Commercial Department, Finance and Administration

Department and the Food and Beverage Department.

Chart 1: Proposed Hotel Organization Structure

28 | P a g e
 6.2. Management
The Hotel will be run by a hired manager which will have an experience in managing recognized

Hotels. The department managers will also be competent and experienced managers. The Hotel

manager will be fully responsible for the day to day operation of the hotel. The responsibility of the

owners will be limited to the hiring and firing of the Hotel manager, and determination of the Hotel

manager remuneration. They will also review and approve the budget and performance of the

hotel. This mode of management system enables the hotel to attain a star hotel standard which is

one criterion for grading. Some of the duties and responsibilities of the hotel manager will be the

followings.

 Exercise all the powers of the company for the successful operation of the

established objectives,

 Plans, organizes, directs and coordinates and controls all the activities of the

company,

 Implements the policy decision of the owners assisted by consultants, formulates

strategies, policies and systems and procedures and on approval ensures their

implementation,

 Establishes, or reviews and determines details of the organization structure, staff

plan and pay system which the Hotel will be fully operated and controlled.

 Subject to the approval of the owners, employees, assigns, and dismisses the officers

of the company accountable to him and define their function.

29 | P a g e
  In consultation with the concerned departments, hires, promotes, and dismisses

personnel that are accountable to the department managers as per established

systems and procedures,

 Formulates and develops financial policies and procedures and ensures its

implementation,

 Ensures the establishment of effective information system that meets the

information requirements of the owners, the executive management group and the

operation of the Hotel.

 Directs the preparation of long term and short term plan and programs and

budgets, upon approval, implements and submits periodic reports on performances

and costs to the owners,

 Ensure tourists, conference clients, and local community are properly served,

 Formulates and develops policies and procedures governing procurement, income,

market research, promotion, and storage of consumables,

 Represent the Hotel in all aspects of its operation and legal proceedings brought by

or against it, negotiates and enters into agreements, and ensures their proper

implementation,

The manpower needs of the project and related salary & benefits payments for professional as well

as support staff is presented in the following table. The salary scale will be made based on will be

made based on a standard hotel standard.

Table 6.2 Manpower requirement

No. of
Sr. Employee Monthl Annual
No. Position s y Salary Salary
1 General Manager 1 5,000 60,000

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 Finance & administration 1
2 Manager 4,000 48,000
3 Receptionist 2 1,000 24,000
4 Accountant 2 2,000 48,000
5 Purchaser 1 1,500 18,000
6 Cashier 1 1,500 18,000
7 Chief Cook 1 2,000 24,000
8 Asst. Chief Cook 2 1,200 28,800
9 Beverage attendant 2 1,000 24,000
10 Food attendant 2 1,000 24,000
11 Bar men 2 1,000 24,000
12 Internal Auditor 1 2,000 24,000
13 Head waiters 2 1,500 36,000
14 waiters 8 800 76,800
15 Coffee machine operator 1 1,200 14,400
16 Technicians 1 1,200 14,400
17 Store keeper 1 1,200 14,400
18 Guard 3 800 28,800
19 Janitor 5 800 48,000
  Sub Total 39   597,600
  Benefits 20% 59,760
  Total 657,360
6.3. Training and Human Resource Development

Training will be given to all recruited staff members by professionals on customer handling,

salesmanship, cleaning, communication, cooking and catering. The Hotel also encourages and

recognizes the employee’s self-development effort. Attendance of international and national level

conferences, sponsoring of researches and symposiums will be done. The hotel will initiate and

participate in community development programs.

6.4. Project Implementation Schedule

The project is expected to start operation within three years by finishing the site clearing works and

furnishing of the facility and ready for operation.

31 | P a g e
 7. ENVIRONMENT AND SOCIAL FEASIBILITY

7.1. Environmental Assessment

The Hotel is constructed in the city where it does not have any implication on wild life, grazing

place, soil erosion or deforestation. Since the project is a hotel, it does not have chemical impurities

which affect the environment. The hotel, however, have harmless sewerages and it will be treated

properly. Its implication on environmental pollution is very minimal.

7.2. Social

The project benefits not only the owners, but also the local community at large in many ways. The

project will create job opportunities for 43 permanent employees in addition to its daily laborer

need starting from its construction stage. In addition the hotel creates opportunity to local residents

that have the capacity, to enjoy its standardize service and thereby maximize their utility.

The government is also benefits from the project through generating directly tax income. It will be a

standard hotel which contributes to the tourism industry.

8. FINANCIAL ASSESSMENT

8.1. Projected Profitability

The Projected income statement indicates that the project is going to be financially profitable
throughout the project life. It will register a net profit of Birr 755,866 in the first year and it
grows to birr 1,449,274 at the five year of its operation. The profit of the hotel will have an
average annual growth rate of 12% for the projected 5 years of operation.

8.2. Projected cash flow

The Projected cash flow statement of the business shows that the project is capable of
generating a net cash flow of Birr 616,579.38 after settling its payment obligations for the
first year and the net cash will be accumulated to become Birr 1,68 million at the end of the
fifth year.

32 | P a g e
 8.3. Payback period

The project is expected to pay back its total project cost from business profits within five year’s

period.

8.4. Net Present Value and Internal Rate of Return

At a discount rate of 15%, the NPV of the project is Birr 24.8 million and 14.8 million before tax and

after tax respectively. In addition the internal rate of return is 69% and 52% before considering tax

and after tax respectively.

8.5. SWOT Analysis

8.5.1. Strengths
 Since the project is found in Meki town, where there is high shortage of standard

hotels, it will have a comparative location and market advantage.

 Existence of Trained and experienced employees of the hotel

 The financial projections made on the basis of assumptions employed in this analysis

justifies that the project will generate net profits and positive cash flow starting from

the first years of the forecasted periods

8.5.2. Weaknesses

 Testing the sensitivity, the project is highly susceptible to the revenue change.

 The project is undertaken on rented premise

8.5.3. Opportunities

 Good policy environment for hotel investment

 Increasing trend of tourist flow to the country

 Increasing market demand for hotel services.

33 | P a g e
8.5.4. Threats

 New entrants of the same business

 Market inflation and disappearance of major inputs from market.

 Competition from existing and under pipe line hotels.

8.6. FINANCIAL ANALYSIS

The financial analysis of hotel Building project is based on the data presented in the previous
chapters and the following assumptions:-
Source of finance 54.84% equity
45.16% loan
Bank interest 11.50 %
Discount cash flow 15%
Accounts receivable 30 days
Raw material (perishable) 3 days
Raw Material (non perishable) 30 days
Cash in hand 5 days
Accounts payable 30 days
Repair and maintenance 5% of building cost

8.7. Total Initial Investment Cost

The total investment cost of the project including working capital is estimated at Birr 7,732
million the major breakdown of the total initial investment cost is shown in Table 8.1.

Table 8.1 Initial Investment Cost

Investment cost EXISTING LOAN PLANNED Total Local
Building & Construction 1,500,000.00 5,400,000.00 6,900,000.00
Electric installation 0.00 80,000.00 80,000.00
Furniture & Equipment 502,891.80 0.00 502,891.80
Sub Total 2,002,891.80 5,480,000.00 7,482,891.80
2.Working capital 250,000.00 0.00 250,000.00
Sub Total 250,000.00 0.00 250,000.00

34 | P a g e
 Total 2,252,891.80 5,480,000.00 7,732,891.80
Percentage 29.13% 70.87% 100.00%

9. CONCLUSION AND RECOMMENDATION

As per this feasibility study conducted for the production of high quality bread bakeery

processing industry subsector

The financial analysis of this project investment pre-feasibility study shows that the project is

worth profitable and acceptable as the discounted measures of the project worth shows positive

trend if investors are engaged in the area.

Furthermore, the project would create employment opportunities for about 8 permanent
administrative and support staff in addition to a significant number of (7) casual employees in
the direct production process, the bakery has already conducted the environmental impacts
Assessment (EIA) study of the project.

10. APPENDIX

Table 9A
AB 3E HOTEL PLC

PROJECTED INCOME STATEMENT

FOR THE YEARS ENDED OF JUNE 30, …..

Service Year
Description 1 2 3 4 5
Total Revenue 8,109,632 8,650,734 9,116,986 9,905,150 10,006,306
Total Direct Cost 5,535,549 5,883,613 6,149,596 6,163,390 6,178,563
Gross Profit 2,574,083 2,767,121 2,967,390 3,741,760 3,827,743
Operating Expense          
Salary and wage 657,360 690,228 724,739 760,976 799,025
Pension Payable 72,310 75,925 79,721 83,707 87,893
over time and holiday pay 65,736 69,023 72,474 76,098 79,903
Repair and Maintenance 10,058 10,058 10,058 10,058 10,058

35 | P a g e
Advertizing expense 15,000 15,750 16,538 17,364 18,233
land / lease/ rent 8,500 8,925 9,371 9,840 10,332
Municipality fee 15,000 15,750 16,538 17,364 18,233
Depreciation Expense of Building 69,000 69,000 69,000 69,000 69,000
Depreciation Expense of Furni & Equip 25,145 25,145 25,145 25,145 25,145
Worker Uniform & Protective 7,000 7,350 7,718 8,103 8,509
Insurance 6,251 6,563 6,892 7,236 7,598
Utilities Expense 30,000 30,000 30,000 30,000 30,000
Miscellaneous Expense 20,000 21,000 22,050 23,153 24,310
Total Operating Expense 1,001,359 1,044,716 1,090,244 1,138,044 1,188,238
Profit before interest & tax 1,572,724 1,722,405 1,877,146 2,603,716 2,639,505
Interest 409,852.93 409,852.93 409,852.93 409,852.93 409,852.93
Profit before tax 1,162,871 1,312,552 1,467,293 2,193,863 2,229,652
Profit tax (35%) 407,005 459,393 513,553 767,852 780,378
Net Income 755,866 853,159 953,740 1,426,011 1,449,274

Table 9B
AB 3E HOTEL PLC

PROJECTED BALANCE SHEET

FOR THE YEARS ENDED OF JUNE 30, …..

YEARS

DESCRIPTION 1 2 3

ASSETS      

CURRENT ASSETS      

Cash 755,866.18 853,158.81 953,740.40

Inventory 99,179 379,598 8,992

Total Current Assets 855,045 1,232,757 962,732

Fixed Assets      

Building 6,900,000 6,831,000 2,006,258

36 | P a g e
Furniture and fixiture 502,892 477,747 452,603

Total Fixed Assets 7,402,892 7,308,747 7,239,747

Total Assets 8,257,936.98 8,541,504.02 8,202,479.61

Liabilities & Capital      

Bank Loan 5,480,000 4,384,000 3,288,000

Sub Total 5,480,000 4,384,000 3,288,000

Capital      

Owner's Equity 2,002,892 2,002,892 2,002,892

Additional Investment 19,179 1,301,453 1,957,847

Retained Earnings 755,866.18 853,158.81 953,740.40

Sub Total 2,777,937 4,157,504 4,914,480

Total Liabilities & Capital 8,257,936.98 8,541,504.02 8,202,479.61

Table 9C
AB 3E HOTEL PLC

PROJECTED Cash Flow Statement

FOR THE YEARS ENDED OF JUNE 30, …..

Description Project Year
A. Cash Inflow 1 2 3 4 5
Revenue 8,109,632.00 8,650,734.00 9,116,986.00 9,905,150.00 10,006,306.00
Total Cash Inflow 8,109,632.00 8,650,734.00 9,116,986.00 9,905,150.00 10,006,306.00
B. Cash Outflow          
Direct Expenses 5,535,549.00 5,883,612.75 6,149,596.05 6,163,390.05 6,178,563.45
Total Expenses
excluding
Depreciation
957,503.62 1,000,860.90 1,046,388.69 1,094,188.42 1,144,382.49
Loan Repayment 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Total Cash Outflow 7,493,052.62 7,884,473.65 8,195,984.74 8,257,578.47 8,322,945.94
C.Net Cash Flow 616,579.38 766,260.35 921,001.26 1,647,571.53 1,683,360.06

37 | P a g e
Table 9D
Cost of raw materials as per current market price

Ser. Production Year

No. Description Unit of Measure 1st 2nd 3rd & Onwards
1 Meat kg 3,000.00 3,150.00 3,307.50
  Unit Price   300.00 300.00 300.00
  Total cost   900,000.00 945,000.00 992,250.00
2 egg No. 1,500.00 1,575.00 1,653.75
  Unit Price   4.00 4.00 4.00
  Total cost   6,000.00 6,300.00 6,615.00
3 Butter kg 120.00 126.00 132.30
  Unit Price   150.00 150.00 150.00
  Total cost   18,000.00 18,900.00 19,845.00
4 Flour for bread and kek kg 54,400.00 60,800.00 64,000.00
  Unit Price   10.00 10.00 10.00
  Total cost   544,000.00 608,000.00 640,000.00
5 oil Litir 725.00 811.00 853.00
  Unit Price   75.00 75.00 75.00
  Total cost   54,400.00 60,800.00 64,000.00

38 | P a g e
6 salt Kg 725.00 811.00 853.00
  Unit Price   11.00 11.00 11.00
  Total cost   7,979.00 8,917.00 9,387.00
7 sugar Kg 1,451.00 1,621.00 1,707.00
  Unit Price   18.00 18.00 18.00
  Total cost   26,112.00 29,184.00 30,720.00
8 Black conmen seed kg 1,000.00 1,000.00 1,000.00
  Unit Price   25.00 25.00 25.00
  Total cost   25,000.00 25,000.00 25,000.00
9 Sesame Seed Kg 1,000.00 1,000.00 1,000.00
  Unit Price   24.00 24.00 24.00
  Total cost   24,000.00 24,000.00 24,000.00
10 Yield Kg 1,451.00 1,621.00 1,707.00
  Unit cost   5.00 5.00 5.00
  Total cost   7,253.00 8,107.00 8,533.00
11 Developer Kg 1,451.00 1,621.00 1,707.00
  Unit Price   8.00 8.00 8.00
  Total cost   11,605.00 12,971.00 13,653.00
  Ground Total 1,624,349.00 1,747,179.00 1,834,003.00

Table 9E
Ser. Production Year
No. Description Unit of Measure 1st 2nd 3rd & Onwards
1 Pasta carton 300.00 315.00 330.75
  Unit Price   250.00 250.00 250.00
  Total cost   75,000.00 78,750.00 82,687.50
2 Macaroni Kuntal 10.00 10.50 11.03
  Unit Price   1,800.00 1,800.00 1,800.00
  Total cost   18,000.00 18,900.00 19,845.00
3 Mayonnaise Carton 5.00 5.25 5.51
  Unit Price   1,500.00 1,575.00 1,653.75
  Total cost   7,500.00 8,268.75 9,116.30
4 Hany Carton 10.00 11.00 12.10
  Unit Price   1,400.00 1,400.00 1,400.00
  Total cost   14,000.00 15,400.00 16,940.00
5 Peanut butter carton 10.00 11.00 12.00
  Unit Price   1,650.00 1,650.00 1,650.00
  Total cost   16,500.00 18,150.00 19,800.00

39 | P a g e
6 Soyasos carton 10.00 11.00 12.00
  Unit Price   1,500.00 1,500.00 1,500.00
  Total cost   15,000.00 16,500.00 18,000.00
7 Tuna carton 20.00 22.00 24.20
  Unit Price   1,720.00 1,720.00 1,720.00
  Total cost   34,400.00 37,840.00 41,624.00
8 Acceto carton 10.00 11.00 12.10
  Unit Price   80.00 80.00 80.00
  Total cost 800.00 880.00 968.00
9 Mustard carton 3.00 4.00 5.00
  Unit Price   600.00 600.00 600.00
  Total cost   1,800.00 2,400.00 3,000.00
10 Straw beery carton 3.00 5.00 6.00
  Unit cost   550.00 550.00 550.00
  Total cost   1,650.00 2,750.00 3,300.00
11 Oliv oil carton 20.00 20.00 20.00
  Unit Price   1,900.00 1,900.00 1,900.00
  Total cost   38,000.00 38,000.00 38,000.00
12 Magi Mereki carton 5.00 6.00 7.00
  Unit Price   350.00 350.00 350.00
  Total cost   1,750.00 2,100.00 2,450.00
13 Merti Tomato   5.00 6.00 7.00
  Unit Price   300.00 300.00 300.00
  Total cost   1,500.00 1,800.00 2,100.00
14 Magi Sos   7.00 8.00 9.00
  Unit Price   400.00 400.00 400.00
  Total cost   2,800.00 3,200.00 3,600.00
15 Merti Sos   8.00 9.00 10.00
  Unit Price   450.00 450.00 450.00
  Total cost   3,600.00 4,050.00 4,500.00
  Ground Total 246,300.00 264,388.75 282,870.80

Table 9F
Bed room
bed cover and bed sheet 86.00 4,000.00 344,000.00
Towel big 86.00 500.00 43,000.00
Towel smal 86.00 250.00 21,500.00
Bed Slipper 129.00 120.00 15,480.00
Shawer slipper 129.00 120.00 15,480.00
soap Carton 215.00 750.00 161,250.00

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 Toilet paper 215.00 300.00 64,500.00
Table napkin 215.00 480.00 103,200.00
Air free 360.00 120.00 43,200.00
Rochi keel 360.00 70.00 25,200.00
mosquito net 86.00 400.00 34,400.00
Carten 86.00 3,500.00 301,000.00
Window clear 300.00 75.00 22,500.00
largo (dozen) 180.00 360.00 64,800.00
Toilet Cleaner (dozen) 180.00 190.00 34,200.00
mirror 43.00 850.00 36,550.00
Teeth Brush 15,480.00 50.00 774,000.00
Bucket 120.00 150.00 18,000.00
Mop 288.00 50.00 14,400.00
Broom 144.00 150.00 21,600.00
Door mat 172.00 500.00 86,000.00
Bed mat 172.00 650.00 111,800.00
Toilet mat 129.00 250.00 32,250.00
Toilet brush 86.00 65.00 5,590.00
      2,393,900.00

Table 9G.
Bank loan Schedule
Pmt. Payment Beginning Scheduled Cumulative
Total Payment Principal Interest Ending Balance
No. Date Balance Payment Interest

1 2/1/2018 4,500,000.00 327,463.23 327,463.23 153,088.23 174,375.00 4,346,911.77 174,375.00

2 5/1/2018 4,346,911.77 327,463.23 327,463.23 159,020.40 168,442.83 4,187,891.37 342,817.83
3 8/1/2018 4,187,891.37 327,463.23 327,463.23 165,182.44 162,280.79 4,022,708.92 505,098.62
11/1/201
4 8 4,022,708.92 327,463.23 327,463.23 171,583.26 155,879.97 3,851,125.66 660,978.59
5 2/1/2019 3,851,125.66 327,463.23 327,463.23 178,232.11 149,231.12 3,672,893.55 810,209.71
6 5/1/2019 3,672,893.55 327,463.23 327,463.23 185,138.61 142,324.63 3,487,754.94 952,534.34
7 8/1/2019 3,487,754.94 327,463.23 327,463.23 192,312.73 135,150.50 3,295,442.21 1,087,684.84
11/1/201
8 9 3,295,442.21 327,463.23 327,463.23 199,764.85 127,698.39 3,095,677.37 1,215,383.23
9 2/1/2020 3,095,677.37 327,463.23 327,463.23 207,505.73 119,957.50 2,888,171.63 1,335,340.72
10 5/1/2020 2,888,171.63 327,463.23 327,463.23 215,546.58 111,916.65 2,672,625.05 1,447,257.38
11 8/1/2020 2,672,625.05 327,463.23 327,463.23 223,899.01 103,564.22 2,448,726.04 1,550,821.60
11/1/202
12 0 2,448,726.04 327,463.23 327,463.23 232,575.10 94,888.13 2,216,150.94 1,645,709.73
13 2/1/2021 2,216,150.94 327,463.23 327,463.23 241,587.38 85,875.85 1,974,563.56 1,731,585.58
14 5/1/2021 1,974,563.56 327,463.23 327,463.23 250,948.89 76,514.34 1,723,614.66 1,808,099.92

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15 8/1/2021 1,723,614.66 327,463.23 327,463.23 260,673.16 66,790.07 1,462,941.50 1,874,889.99
11/1/202
16 1 1,462,941.50 327,463.23 327,463.23 270,774.25 56,688.98 1,192,167.25 1,931,578.97
17 2/1/2022 1,192,167.25 327,463.23 327,463.23 281,266.75 46,196.48 910,900.50 1,977,775.45
18 5/1/2022 910,900.50 327,463.23 327,463.23 292,165.84 35,297.39 618,734.66 2,013,072.84
19 8/1/2022 618,734.66 327,463.23 327,463.23 303,487.26 23,975.97 315,247.40 2,037,048.81
11/1/202
20 2 315,247.40 327,463.23 315,247.40 303,031.56 12,215.84 - 2,049,264.65

Contents

1. EXCUTIVE SUMMARY 2

2. BACKGROUND INFORMATION 3

2.1. General........................................................................................................................................3

2.2. Brief history of the promoter.......................................................................................................3

2.3 The Project Idea...........................................................................................................................3

2.4 The Project Objectives.................................................................................................................3

3 MARKET STUDY 5

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 3.1. General Remarks.........................................................................................................................5

3.2. Demand Analysis.........................................................................................................................7

3.3. Demand projection for hotel accommodation..........................................................................10

3.4. Supply Situation.........................................................................................................................11

3.5 Demand Supply Gap..................................................................................................................12

3.6. Market Consideration of Meki Town........................................................................................13

3.7. Marketing Strategy....................................................................................................................14

4. TECHNICAL STUDY 16

4.1 Location and Site.......................................................................................................................16

4.2 Land...........................................................................................................................................17

4.3 Buildings and Civil Works.........................................................................................................17

4.4 Physical Layout..........................................................................................................................17

4.5. Pricing and Distribution............................................................................................................17

4.6. Room rate..................................................................................................................................18

5. PLANT CAPACITY AND PRODUCTION PROGRAMME 18

5.1. plant capacity............................................................................................................................18

5.2. Production Program..................................................................................................................19

5.3. Raw Materials and Utilities.......................................................................................................19

5.4. Motor Vehicles..........................................................................................................................19

6. ORGANIZATION AND MANAGEMENT 20

6.1. Organization.............................................................................................................................20

6.2. Management..............................................................................................................................21

6.3. Training and Human Resource Development...........................................................................23

6.4. Project Implementation Schedule..............................................................................................23

7. ENVIRONMENT AND SOCIAL FEASIBILITY 23

7.1. Environmental Assessment........................................................................................................23

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 7.2. Social.........................................................................................................................................24

8. FINANCIAL ASSESSMENT 24

8.1. Projected Profitability................................................................................................................24

8.2. Projected cash flow...................................................................................................................24

8.3. Payback period..........................................................................................................................24

8.4. Net Present Value and Internal Rate of Return..........................................................................25

8.5. SWOT Analysis..........................................................................................................................25

8.6. FINANCIAL ANALYSIS...............................................................................................................26

8.7. Total Initial Investment Cost......................................................................................................26

9. APPENDIX 27

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