SWOSTI HOTELS

Market Study of Satapada

MAXIM, XIMB

Tourism Fact File

According to Ministry of Tourism
5.17 million foreign tourists in 2009 5.58 million foreign tourists in 2010 A growth of 7.2% in june 2011 as against 4.9% in june 2010 Foreign tourists from US and UK make a beeline for Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan. Other states such as Kerala, Gujarat and Uttarakhand are also doing their best to entire the in-bound crowd.

Medical Tourism
Valued at $300 million and receives more than 100,000 foreign patients per year. Pegged to grow at 30% per year.

 MICE sector
Meetings, incentives, conventions and events registered growth of 15-20% from last 5 years and is set to grow.

Ministry feels that there will be triple-fold increase in the number of foreign tourists, which means that number will be more than 29 million by 2018

Medical Tourism
India is giving tough competition to Thailand in healthcare services being lower by over 30% Ayurveda, Yoga, Meditation and Therapeutic Massage are renowned Indian therapies. About 1.8 lakh foreigners visited India in first 8 months of the current fiscal year. It would be a Rs 9500 crore industry by 2015. For eg: A heart valve replacement costs about 0.2 million dollar in US, in India it can be done in 10,000 dollars, which also includes round trip airfare and a vacation package.

Purpose of Study
The Presentation entails how Swosti hotel should proceed with their plan of establishing a hotel/resort/villa at Satapada where they have acquired 5 acres of land. Approach The team conducted interviews, discussions and sometimes acting as a mystery shoppers. The study only covers the Satapada region and not Chilika. The study takes care of qualitative collection of data and no quantitative data collection as primary research method.

People Surveyed
Surveyed potential/present tourists who like to visit or have already visited Satapada Surveyed tourist agents to identify what they feel how the place should be developed and what they think are the demands of the tourists Surveyed corporate for their take on the place and understanding their perspective. Surveyed hotels at Bhubaneswar and Satapada. Surveyed shops, boatmen, government officials at Satapada. Surveyed NGOs about what they think of the place and how they are doing in this respect.

 This report will answer following key questions:

What are the expectations of the Customers, be it Indian, foreigner or corporate, from place like Satapada. What are the local feelings and community mind set for the private entities moving in. What are the major areas which Swosti should keep in mind while developing the infrastructure and what hurdles they may face. What are the restrictions of the place and what are the things that although very ambitious cannot be pursued at the moment. What is the probability of people or tourists making their base as Satapada instead of Puri.

Background
The Chilika lake is rich in Flora Fauna Major attractions
Aquafauna Dolphins Sea Mouth Migratory Birds Kalijai Temple Puri

Study on Tourists

Facts Section
2 lakh 3 lakh tourists visit the region every year. During the peak season, the load can go up to 3000 visitors per day. VIP and Foreign tourists prefer to visit Satapada side more rather then Chilika. Foreigners spend at around Rs 200- Rs 2500 per day. Travel package is clubbed with Puri, Bhubaneswar and Konark popularly known as Golden Triangle

 A normal tourist package consists of a 10 hour boat trip, from 6 AM to 5 PM. And trip traverses through the following path: OTDC Kalijai Barakul (breakfast) NalaBana Dolphins (Satapada Lunch) Sea Mouth Rajhans Island Back to OTDC.

Foreign Tourists
Foreign tourists generally come to India for places like Delhi, Jaipur, Goa, Agra etc and they have very little knowledge about Orissa. They have a package of normally 4 nights and 5 days with 2 days in Puri, 2 days in Bhubaneswar. From Puri, one day for visiting Chilika and other for Puri itself. Tourists prefer to spend something in the bracket of Rs 200- Rs 2500 and prefer travelling during the winter seasons

Problems
Communication and the underdeveloped infrastructure: A journey which should take 1 hour takes 2-3 hours. Dolphins sometimes not seen easily. Hindrance from travel agents. Travel agents dont offer Satapada as a base both for in-bound and foreign tourists. Boats are not perceived very safe by the tourists. Security and health facilities.

Observations
Travel agents require training for uplifting the tourism of Satapada and Chilika as there is huge potential. Eg from Kerala. People need more engagement activities so sports like volleyball, basketball, beach volleyball will make a lot of sense. Some preferred water sports like self rowing, motor boats, water scooters for couples, and houseboats. Tourists prefer to spend something in the bracket of Rs 200Rs 2500 but they can spend more if the facilities are available. Foreigners generally travel in winter season. Foreigners preferred sports like Jet skiing, wind surfing, kayaking, fishing, white water rafting etc. Also they preferred a photographical expedition going on according to the season

Study on Corporates

Fact File
Most IT companies have a concept of quarterly parties and annual parties. The quarterly parties are for an account. Yearly parties are for a vertical. Per head expense made available by the companies is Rs 300- Rs 500 depending on the state of business

Observations
They choose a place for party/picnic which is well connected through rail/road. Time is very important for them and hence they choose places that dont require much travelling time. Also place should have proper medical and safety facilities in case any employee emergency. Satapada is not perceived as very safe place by corporate women. Corporate are, however, looking for a nice place to conduct outbound learning sessions for their employees. Some also mentioned that there should be life guards.

Observations cont.
Development of water sports like paragliding, moor boats, swimming etc will attract corporate for outbound learning but it should be a complete package and it should be safe. Conferences or meetings at Satapada was not very well accepted idea. They were fine with the idea of houseboats or motorboats but with an eye on the environment.

Study on Community/Local

Problem
There is rift going on between two villages from some time which is preventing most of the visitors from visiting. There are issues that there is no proper Police beat and medical facility. Note: Due to non-conducive environment at Satapada village, we had to interview of villagers near Barakula.

Observation
Villagers were very receptive to any kind of development, be it by government or private players. They were even concerned about the non-action from the government side for developing tourism. During the Durga Puja period, the sky remains clear and visitors can see a clear reflection of the moon in the lake. It is a big crowd puller. Market will develop with investment coming. The max depth of the lake goes up to 6-8 ft during the nonrainy days. Safety not a concern. For stay people will prefer something of the range of a holiday home.

OTDC at a Glance

Its construction started in 1984 and was finished in 1994. The hotel became operational from 1995. Peak season is October-February. OTDC facilities and cost structure:
Total of 28 rooms: 8 AC, 2 suites, 18 non AC rooms Occupancy rate: Around 90% including all rooms from OctoberFebruary. Rest of the months occupancy is around 30%. The facility of doctor.

Quality Issue: Tourists who come to stay are mainly from West Bengal. The number of foreign tourists staying is less than 1%.

 OTDC official testified that high cost officials come at Satapada and they are willing to spend more but there is lack of venues where they can spend. People coming there to stay there dont care for money but they want facilities. Facilities like having a swimming pool or gym is a good addition. Foreign tourists are generally low spending tourists. Problems ATM Power Cuts.

Rural Tourism at Mangalajodi

Mangalajodi is a village, at the north-western edge of the great Chilika lagoon in Orissa. Its at an hour drive from Bhubaneswar. Therein lays a remarkable story of behaviour change. NGO, Wild Orissa, developed tourism as a livelihood for villagers

 Paika Akhada: Local akhada show depicting Oriya dance, tradition and customs. Bamboo net and Boat manufacturing: They manufacture their own boats and bamboo nets for fishing. These are small boats that are used to travel through the lake tributaries for the inner region of Chilika lake. Mangalajodi Resort or Farmhouse: The farmhouse cost is around Rs 10 Cr and is spread over 22 acres. Tourist, generally VIPs and high end people, come and stay there for 4-5 days. They charge a room rent from Rs 1000- Rs 1500. Villagers dont allow the room rents to increase as they are concerned about that this may deter the tourists visiting. These are non AC rooms and if it is required, they install coolers.

Turnaround because of following changes: Local culture experience: Cottages or rooms are built in the villages so the tourists get to feel the village life. The food is cooked in the traditionally. Migratory Birds: They have for the past 15 years conserved and created an eco-tourism, which is so conducive for the migratory birds. Their efforts also have made the migratory birds to visit the place every year. According to them and reports there are 256 different bird species which accounts to a total of 9,00,000 birds at that place.

Other examples of Eco tourism/ Rural Tourism.

Silvasa Agri Tourism Farming, practiced the natural way, is the main occupation of the tribals in capital city Silvassa and throughout Dadra & Nagar Haveli. Visitors can have a truly memorable holiday by living like them, planting, plucking and harvesting activities that occur in paddy fields. Tribal Culture Water Sports

Services offered by Hotels that are set up in similar locations. i.e. near a big city but in beautiful countryside. Yash Resort (Bhandardara) Restaurant with a homely touch. Kids play area. Swimming Pool. Discotheque. Basketball. Conference Hall facility Rain dance facility

Financial Point of View

Cottage construction: Single room: Rs 1,00,000 and Double room: Rs 2,00,000. Construction rates of the region are as follows:
Mason = Rs 350-Rs 400/day (approx) Labour = Rs 200/ day (approx)

Electricity charges: Last month OTDC had the electricity bill of Rs 26000. The rates are high because there has been a shortage of labour in this region. NGOs have build infrastructure in Mangalajodi with the help of villagers and have their own packages.
Rs 500/night for a non AC room. Rs 1000/night for a AC room. Rs 1000/night for cottage.

Conclusion and Recommendations

Depending on our study, analysis and findings we are proposing following recommendation for attracting tourists and making them stay and enjoy the beauty of Satapada which it rightfully deserves: Recommendations for Swosti Hotels Playing with the water 1. Water Sports: Water sports were the first option that came out from our interviews but not without hiccups.
There are weeds. The water sports should be a part of the resort only and should not be disturb the main lake atmosphere. Self rowing by tourists, scooters for couples.

2. Houseboats: House boats were another interesting concept that emerged from the discussions. But following points to be kept in mind:
House boats, as in Kashmir and Kerala, require that water should be stable so that the boat remains stationary on water and should not oscillate. People were interested in spending long hours in the water during the night and have dinner.

Involving the Community: It is very important to involve the community and making them understand the importance of increased tourists. They should feel a part of this project. This will also make them care more for this place and keeping it as green and natural as possible.

Facilities at the Hotel Village Trip: Tourists need good engagement with the community and the community need to be made aware that increase in tourism will also help them in their livelihood. Following initiatives can be taken up by Swosti for making the trip as an enriching experience:
Collaboration with the locals: Tourists can be made to visit some of the local households and a dinner or lunch may be planned with them. Foreigners can be made to visit the local vegetable markets, a visit into a day of a villager. Outlook of the Hotel: Special arrangements like travelling on bullock cart, the entire ambience can resemble village.

 Health Holiday: Most foreign tourists go to Puri to take ayurvedic massages. If such facilities are developed here, then tourists will definitely go for that. Moreover, India is becoming a famous destination for Medical tourism due to cheap rates and world class service.
Collaboration with Hospitals and Medical Centres: Swosti can collaborate with various hospitals and medical centres for providing a combined package for foreigners coming for medical treatment. They can club their tourism package a with the package of hospitals which they normally offer to the foreigners. The package can include stay at Satapada including Ayurveda, Yoga, Meditation and Therapeutic Massage. Pan-India Promotion: Tie-ups with hospitals or similar institutions outside Orissa under whose recommendations people visit India for medical treatments.

 Facilities: There is also a dearth of important facilities which tourists generally complain about.
ATM: There is not ATM at that place, making it very inconvenient for the tourists who are not aware of it. Doctor and Power Back up: The place doesnt have a proper medical centre or dispensary. So the hotel will have to have its own set of medical experts for the emergency. Also electricity cuts are a big issue. So a generator for power back up is also very necessary.

Infrastructure: No High rise buildings. Keep it as natural as possible so that it also adds to the beauty of the place
1.Cottages: A set of cottages can be developed facing the lake so that when people wake up in the morning they have a beautiful scenery awaiting their eyes. Each cottage should have its own short pathway to the lake with beach chairs and umbrellas. All this should be as natural and eco friendly as possible. This arrangement will suit the VIPs, high end people and foreigners visiting the place. 2.Small building: Next on the offering we can have is a small two-storey building with single/double rooms similar to the OTDC but better in the outlook and the facilities.

3. Houseboats: House boats will also form a major part of the resort as is conveyed by many tourists. 4. Recreational Centre: As we are also targeting the Medical tourism, there should be a recreational centre having Spas, steam bath, Ayurvedic Massage, Yoga etc. These should be detached from the normal living quarters to avoid disturbance.

5.Food Joint: Food joint can be a part of the terrace of the building so that even while having food people enjoy the beauty but here should be the concept of open and close restaurants to take care of the rain and sun. 6. Amphitheatre for performances. 7.Sports Facility: Volleyball, basketball, Swimming pool etc 8. Bar and Gym: Many tourists made a point that there should be a bar at the place. But having a bar may increase the safety concerns keeping in point that there is no proper police vigilance in this area.

 Other Offerings: Apart from the above mentioned offerings which we got from the tourists, he shops, the boatmen and the local people. We can go ahead with the following ideas to make the place more attractive and engaging.
Cycle trail / jogging between the lake: We can have a water body demarcated by a path where tourists can cycle and jog and fell the lake and the beauty. Fishing: A small part of the lake can be secured just for the tourists where they can do fishing for hours and hours.

 Recommendations for Government The entire region requires a complete revamp in terms of infrastructure, public facilities and other necessities. Government need to seriously think and take some solid steps for making the place attract tourist to its calibre.
Dwelling for Dolphins Protecting the Fishes Roads and Communication Public Necessities New Boats and initiatives Blocked Channel for tributaries leading to Chilika

SWOSTI PLOT

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