BUSINESS PROPOSAL                “BUSINESS STUDY ON HOTEL INDUSTRY” An assignment submitted to IIMT, Greater Noida as a pa...
BUSINESS PROPOSAL                                         PREFACE       There are number of forces that make marketing an ...
BUSINESS PROPOSAL                                      DECLARATIONThe project title “A study on Hotel Industry” is been su...
BUSINESS PROPOSAL                                ACKNOWLEDGEMENTConcentration, declaration and application are not a full ...
BUSINESS PROPOSAL                                           TABLE OF CONTENTCHAPTERS                                      ...
BUSINESS PROPOSAL                                     1) PREAMBLEVISION     "To provide customized services and delight cu...
BUSINESS PROPOSAL                                 2) PURPOSE OF STUDYA hotel is an establishment that provides paid lodgin...
BUSINESS PROPOSAL                           3) BUSINESS: HOTEL INDUSTRY Building that provides lodging, meals, and other s...
BUSINESS PROPOSALsuite bathrooms and air conditioning or climate control. Additional common features found inhotel rooms a...
BUSINESS PROPOSALfrom the large chains. However, you still see a few low-end independents along downtownhighways bypassed ...
BUSINESS PROPOSAL       All-suite hotelsAll-suite hotels have gained much popularity with business travelers, and for good...
BUSINESS PROPOSAL                      4) THE LOCATION: GANGTOKHotel Address:HOTEL WHITE PALACEAddress: M.G. MARG, Gangtok...
BUSINESS PROPOSALPhone Number:- 03592-222553/ 222105Fax:-03592-222553E-mail id: - WHITE_PALACE@Yahoo.comWebsite:- WWW.WHIT...
BUSINESS PROPOSALIn Gangtok Heritage Hotels you can have the very best of services and facilities that can makeyour busine...
BUSINESS PROPOSALrains often causing landslides that block Gangtok’s land access to the rest of the country. Rainfallstart...
BUSINESS PROPOSALcraft. Gangtok also offers the Orchid Sanctuary, which is the home of some 500 varieties oforchids to the...
BUSINESS PROPOSAL   4. Ganesh Tok:It is a very small temple dedicated to Lord Ganesh, a diety worshipped by Hindus. The te...
BUSINESS PROPOSALLocated very close to Rumtek Monastery just half a kilometer before reaching RumtekMonastery on the highw...
BUSINESS PROPOSAL   January to April, and attracts 99% of tourists visiting Gangtok, Sikkim. It is also a home of   Brahmi...
BUSINESS PROPOSAL       Fairs and Festivals of GangtokFairs and festivals celebrated in Gangtok add to the charm of the hi...
BUSINESS PROPOSAL                           5) MAN POWER REQUIREMENTAs our hotel and restaurant is running on a large scal...
BUSINESS PROPOSALELECTRICIAN                    1                             4,000/-HELPERS                        5     ...
BUSINESS PROPOSALInstead of sticking strictly to price, youll find it more useful to think about hotel categories thatrefl...
BUSINESS PROPOSALothers. Most of those brands are national throughout the U.S. and many are active in Canada, aswell.Bouti...
BUSINESS PROPOSALApartments and condosOften, on an extended stay, you may prefer a real apartment or condo to a hotel, eve...
BUSINESS PROPOSALpreferred chain either because you like its position in the product/price spectrum or you want tobuild st...
BUSINESS PROPOSALBe careful to check cancellation penalties along with rates: Even the most lenient discountersnow frequen...
BUSINESS PROPOSAL                                 7) WHY I AM INTRESTEDIts the easiest to use hotel business plan program ...
BUSINESS PROPOSAL  Gangtok is located in the North Eastern part of India in the lower Himalayas in the state ofSikkim. The...
BUSINESS PROPOSALspectacular view of Kanchanjunga, Chungthang, Lachung, Yumthang, Guru-Dongmar Lake,TemiTea Garden and the...
BUSINESS PROPOSAL                                  8) TAXES APPLICABLE:Federation of Hotels and Restaurant Association of ...
BUSINESS PROPOSAL(like Sikkim, Assam, Tripura, Meghalaya, Mizoram, Nagaland, Manipur, Arunachal Pradesh,Uttaranchal and Hi...
BUSINESS PROPOSALSection 32Hotel buildings are considered as plants for the hotel industry as they are utilized for 24 hou...
BUSINESS PROPOSALAlso, hotels and restaurants with turnover less than Rs 1.50 crore (Rs 15 million) should beexemption fro...
BUSINESS PROPOSAL                                    9) PLANT LAYOUTLAND AND BUILDING:                                    ...
BUSINESS PROPOSALTOTAL FIXED CAPITAL                                           Amount (Rs)   1) Land & building           ...
BUSINESS PROPOSAL      5. Chicken Masala      6. Chicken Curry      7. Hot Dog      8. Fish      9. Egg Curry     10. Fish...
BUSINESS PROPOSAL       6. Others          10 diets average cost of raw materials for the above Rs. 9/-          Per diet ...
BUSINESS PROPOSAL          @ Rs. 10.00/-per Drink                      Rs. 1500/-10. Consumption of assorted snakes tea, c...
BUSINESS PROPOSAL   Raw material expenditure                                              1,31625/-   Salary & wages      ...
BUSINESS PROPOSAL                                   TURNOVER PER ANNUM                                                Hote...
BUSINESS PROPOSALTOTAL RECIEPTSHotel           Rs- 25,93,500/-Restaurant      Rs- 48,90,000/-Total-          Rs-74,83,500/...
BUSINESS PROPOSAL                               10) DEMAND OF PRODUCTRestaurant business is very flourishing business thes...
BUSINESS PROPOSAL                           11) SUPPLY OF RAW MATERIALAs our business is of hotel sector and our business ...
BUSINESS PROPOSAL                         12) SOURCES OF RAW MATERIALAs our business is of hotel sector and our business i...
BUSINESS PROPOSAL       Ph. No- 03592-225057/ 224439                              13) MAJOR COMPETITORSMAJORE COMPETITORS ...
BUSINESS PROPOSAL   Hotel Golden Heights Gangtok is a 3 star hotel situated in the heart of Gangtok town.   Pioneering a t...
BUSINESS PROPOSAL                               14) LEGAL ASPECTSTo start a business you have to make sure all aspects of ...
BUSINESS PROPOSALare agreeable to it, the zone board will consider your application and when the next zoneboard meeting is...
BUSINESS PROPOSAL                                          15) CONCLUSIONEveryone knows that a business plan is essential ...
BUSINESS PROPOSALCommunicating your products to your prospects is a critical success factor for every businessowner. You n...
BUSINESS PROPOSALStart your business plan immediately because you can access and download this plan online rightnow.      ...
BUSINESS PROPOSAL                    Page                    53
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  1. 1. BUSINESS PROPOSAL “BUSINESS STUDY ON HOTEL INDUSTRY” An assignment submitted to IIMT, Greater Noida as a partial fulfillment of full time Post Graduate Diploma in ManagementSubmitted to: Submitted by:Dr. D.K. Garg Sir, PRASHANT BATHAM (MMR 5056)Chairman, IIMT PIYUSH BAHADUR (MMR 5065)Greater Noida Ishan Institute of Management & Technology 1A, Knowledge Park-1, Greater Noida, Dist. G.B. Nagar (U.P.) Website: www.ishanfamily.com, Email: ishan_research@yahoo.com Page 1
  2. 2. BUSINESS PROPOSAL PREFACE There are number of forces that make marketing an endlessly changing activity. Theconstantly changing activity sociological, psychological and political environment may representthe uncontrollable marketing factors. To understanding these factors in a better way marketingresearch is of utmost importance. This Project Report has been completed in Partial fulfillment of my managementProgram, Post Graduate in Marketing Management (PGDMM) for small scale business study inthe HOTEL INDUSTRY. Page 2
  3. 3. BUSINESS PROPOSAL DECLARATIONThe project title “A study on Hotel Industry” is been submitted by Piyush Bahadur (ENR-MMR5065),Prashant Batham(MMR 5056).The intention here is to provide preliminary information to the prospective entrepreneur. Prior tomaking a firm decision for investment in the project the entrepreneur must verify thevarious feasibility aspects together along with the addresses for the procurement of plant &machinery and raw materials independently. The information supplied in this report isobtained from the reliable sources but it is not guaranteed and the money once paid will not berefunded back in any case. Claims for incomprehensiveness of the project report will not beentertained and no legal action in this regard would be entertained in any case (Subject toDelhi Jurisdiction only).I have used the business site of project in Gangtok and we have discussed with the owners ofhotels about the business. Signature.Date: 15th October 2011. PRASHANT BATHAM (ENR-MMR5056) PIYUSH BAHADUR (ENR-MMR5065) Page 3
  4. 4. BUSINESS PROPOSAL ACKNOWLEDGEMENTConcentration, declaration and application are not a full key for achieving any goal. There mustbe a right way of guidance and co-operation of people for achieving that particular goal. Thisguidance makes sure that person for success.I was involved in the ―BUSINESS STUDY ON HOTEL INDUSTRY‖ and I came across a lot ofthings which let us know about the business of hotel industry.We would like to thank to our respected Chairman Sir: Dr. D.K. Garg, who always been a source ofmotivation and support to all the students of PGDMM (IIMT, Greater Noida). PRASHAN BATHAM (ENR: MMR5056) PIYUSH BAHADUR(ENR: MMR5065) Batch: 16th Page 4
  5. 5. BUSINESS PROPOSAL TABLE OF CONTENTCHAPTERS Page No. 1) PREAMBLE................................................................................ 6 2) PURPOSE OF STUDY............................................................... 7 3) BUSSINESS................................................................................ 8 4) LOCATION................................................................................ 12 5) MANPOWER REQUERMENT................................................. 21 6) TECHINICAL KNOW HOW..................................................... 22 7) WHY I AM INTERESTED......................................................... 28 8) TAXES APPLICATION............................................................. 31 9) PLANT LAYOUT....................................................................... 35 10) DEMAND OF PRODUCT........................................................ 43 11) SUPPLY OF RAW MATERIAL............................................... 44 12) SOURCES OF RAW MATERIAL...................................... ...... 45 13) MAJOR COMPETITORS.................................................... ...... 46 14) LEGAL ASPECT.................................................................... ... 48 15) CONCLUSION........................................................................... 50 16) WORDS OF THANKS.............................................................. 52 Page 5
  6. 6. BUSINESS PROPOSAL 1) PREAMBLEVISION "To provide customized services and delight customers."MISSION To provide quality services to its customers on demand at competitive prices. Be recognized as the trusted service provider in Gangtok. Drive long term profitable growth.VALUES Integrity Innovation Excellence Quality Responsibility Page 6
  7. 7. BUSINESS PROPOSAL 2) PURPOSE OF STUDYA hotel is an establishment that provides paid lodging on a short-term basis.I select this particular project on hotel Industry to provide quality service to our customer.In our Industry we are providing employment to local people directly. As the Hotel Industry inIndia is a growing Industry therefore it provides a huge turnover.Restaurant business is very flourishing business these days not in India only it has been termedas an International Hotel and Restaurant Industry and it carries very brilliant prospects. The need for advantage of Hotel Industry to Restaurant Standards has been felt veryrecently due to advancement in the technology & industry due to which a lot of young millionare have come into existence. This class of people & many people from higher & medium ofpeople like to take advantage of this type of Restaurant system on many occasions.After oil the world tourism is the largest single item of international trade today with theincrease in education discretionary income and in leisure and paid holidays, travel hasGrown rapidly in recent years. Page 7
  8. 8. BUSINESS PROPOSAL 3) BUSINESS: HOTEL INDUSTRY Building that provides lodging, meals, and other services to the traveling public on acommercial basis. Inns have existed since ancient times (e.g., along the Roman road systemduring the Roman Empire) to serve merchants and other travelers. Medieval Europeanmonasteries operated inns to guarantee haven for travelers in dangerous regions. The spread oftravel by stagecoach in the 18th century stimulated the development of inns, as did the IndustrialRevolution. The modern hotel was largely the result of the railroads; when traveling for pleasurebecame widely popular, large hotels were often built near railroad stations. In 1889 the SavoyHotel in London set a new standard, with its own electricity and a host of special services; theStatler Hotel in Buffalo, N.Y. (1908), another landmark, catered to the growing class of businesstravelers. After World War II, new hotels tended to be larger and were often built near airports.Hotel chains became common, making purchasing, sales, and reservations more efficient. Hotelsfall into three categories: transient hotels; resort hotels, intended primarily for vacationers; andresidential hotels, essentially apartment buildings offering room and meal service A hotel is an establishment that provides paid lodging on a short-term basis. The provision ofbasic accommodation, in times past, consisting only of a room with a bed, a cupboard, a smalltable and a washstand has largely been replaced by rooms with modern facilities, including en- Page 8
  9. 9. BUSINESS PROPOSALsuite bathrooms and air conditioning or climate control. Additional common features found inhotel rooms are a telephone, an alarm clock, a television, and Internet connectivity; snack foodsand drinks may be supplied in a mini-bar, and facilities for making hot drinks. Larger hotels mayprovide a number of additional guest facilities such as a restaurant, a swimming pool orchildcare, and have conference and social function services. A restaurant prepares and serves food and drink to customers. Meals are generally served andeaten on premises, but many restaurants also offer take-out and food delivery services.Restaurants vary greatly in appearance and offerings, including a wide variety of cuisines andservice models.Upscale business hotels constitute the great middle ground of the hotel business, with a wideprice/quality spectrum. Unless youve been traveling on some other planet, you know the nameswell: Crowne Plaza, Hilton, Hyatt, InterContinental, Marriott, Omni, Ramada, Renaissance,Sheraton, Sofitel, Westin, Wyndham, and dozens of others, worldwide. Midprice hotelsOne of the "hottest" hotel market niches these days provides almost all the facilities and servicesof a full-price business hotel but at a sharply lower price range. The midprice niche includes twosub-segments:Midprice full-service hotel chains are generally offshoots or variants on the big business-hotelchains, including Hilton Garden Inn, Holiday Inn, Courtyard by Marriott, Ramada, andSheratons Four Points.A closely related segment-midprice limited service-provides almost the same facilities but a tadfewer services. This sub-segment includes Drury, Fairfield, Hampton Inn, LaQuinta, and a dozenor so others. Budget motelsIf youve ever had to stay in a small town along the highway, youve undoubtedly slept in abudget motel. Theyre becoming ubiquitous outside cities. Almost all recent growth has been Page 9
  10. 10. BUSINESS PROPOSALfrom the large chains. However, you still see a few low-end independents along downtownhighways bypassed by Interstates in some of the smaller cities.Most of us know what we mean by a budget motel. Major brands include Comfort Inn, Days Inn,Econo Lodge, Holiday Inn Express, Motel 6, Shoneys, Super 8, Travelodge, and a bunch ofothers. Most of those brands are national throughout the U.S. and many are active in Canada, aswell. Boutique hotelsThe prototypical boutique hotel is an older city-center property that has been refurbished to adegree that it can compete with newly constructed midprice and expensive business hotels.Rooms tend to be smaller than at newer competitors, and they usually have fewer businessfacilities than larger business hotels. However, many travelers have concluded that thosedisadvantages are more than offset by more individualized decor and especially a high degree ofpersonal service from the staff. Luxury hotelsThe top-of-the-line segment includes such hallowed chain names as Fairmont, Four Seasons, andRitz-Carlton, some well known independents, and hotels that retain a unique individual nameeven when theyre part of a chain. Everything is opulent: rooms, lobbies, restaurants, shops, withpersonal services and prices to match. Theyre located mainly in big cities. They provideeverything you could possibly want in a hotel—and probably lots of stuff you dont care about atall. Resort hotelsChances are that youll encounter resort hotels, if at all, only when youre attending meetings orconventions at the resort. And in that case, your choice of hotel is made for you: Your onlydecision is whether to accept the official convention rate or try for a bigger discount throughsome other program. Page 10
  11. 11. BUSINESS PROPOSAL All-suite hotelsAll-suite hotels have gained much popularity with business travelers, and for good reason.Typically, you get 400-600 square feet of room, with separate "living" and "bedroom" areas, aswell as at least minimal kitchen facilities. The living area provides lots more space to spread outyour work than you find in the conventional room. And if you want to entertain a businessvisitor, you can do it in a more businesslike living room or office setting rather than across apossibly unmade bed. Extended-stay hotelsA subset of the all-suite genre, extended-stay hotels cater to guests who stay five days or more.Compared with more conventional all-suite properties, most of them have more space, overall,plus larger, better equipped kitchens, often including a refrigerator, stove, and even a dishwasher.Most of the big chains have in-room Internet access, about three-quarters of it high-speed. Pricesstart at the high end of the budget motel range and go well up into the business hotel range. Apartments and condos Often, on an extended stay, you may prefer a real apartment or condo to a hotel, even an all-suite hotel. Although such short term apartment arrangements are sometimes called "vacation rentals," many are appropriate for business travel. Page 11
  12. 12. BUSINESS PROPOSAL 4) THE LOCATION: GANGTOKHotel Address:HOTEL WHITE PALACEAddress: M.G. MARG, Gangtok Page 12
  13. 13. BUSINESS PROPOSALPhone Number:- 03592-222553/ 222105Fax:-03592-222553E-mail id: - WHITE_PALACE@Yahoo.comWebsite:- WWW.WHITEPALACE.COMGangtok, the capital of Sikkim with a population of approximately 50,000 has emerged into themainstream of the Tourism Industry, with more and more tourist visiting this little Himalayanstate every year. Gangtok has developed into a cosmopolitan flavor where old-world charm andhospitality exist along with the Internet Age.This small town, lies atop a ridge, at an altitude of 5,800 ft, amidst a Himalayan setting, with theworlds third tallest peak Kanchenjunga at its east, and overlooking the river Ranikhola. Gangtokmeaning lofty hill was said to have been a small village until it gained the status of an importantpilgrimage centre with the building of the Enchey Monastery in 1840. In 1975 with the end ofthe monarchical rule, Sikkim was made an official state of India with its capital at Gangtok.Gangtok is cultural and learning center of Tibetan Buddhists. For this the city has greatimportance among the Buddhist people. The Gangtok is furnished with various attractive sites.There are Deer Park, Dul-Dul Chorten, Government Institute of Cottage Industries, KabiLongstok, Kangchendzonga National Park, Kechopari Lake, Labrang Monastery, Lachung andmany more. During your tour you can have the sight of these places. You can get all thepleasures of the world while visiting Gangtok. For the tourists of the world Gangtok HeritageHotels provide luxurious accommodation.All the Heritage Hotels in Gangtok are the well-known place for the leisure tourists and businesspersonalities. You can spend your holiday at some of the popular Heritage Hotels in Gangtok.Among them most popular is the Hotel Norkhil. You can have luxurious accommodation inGangtok while staying at these Heritage Hotels in Gangtok. Page 13
  14. 14. BUSINESS PROPOSALIn Gangtok Heritage Hotels you can have the very best of services and facilities that can makeyour business trip or vacation tour memorable. Heritage Hotels in Gangtok are endowed withhuge, comfortable and luxurious rooms and suites with large numbers of accommodationfacilities such as attached bathroom, hair dryer, shower, bath tub, air-condition, cable television,running water, mini bar, refrigerator, round the clock room service, refrigerator, internet accessand many more. There are numerous international restaurants at Heritage Hotels in Gangtok.Our hotel is situated at the by-pass, 5-mint walk from the local taxi stand located amidst lushgreen valley. Easily can access local of most famous market of M.G. Road. Altitude: 1437 meters Temp: Summer 25 (Max) & 14(Min) Degrees Celsius Winter 16 (Max) & -1 (Min) Degrees Celsius Best time to Go: March – April & October-November Monsoon: May to September Summer: April-May Snowfall: December - January Clothes: Light woolen in summer and heavy woolens in winter Nearest Airport: Bagdogra, 130 km away Railway Station: New Jalpaiguri - 124 km Bus Station: Gangtok Hospital & Doctor: Gangtok has a state-run District Hospital which can handle emergencies. Sightseeing: Enchay Monastery, Do-drul Chorten, Dodrupchen Monastery, Rumtek Monastery, Tsongo Lake, Nathu La Pass.CLIMATE:Gangtok enjoys a mild, temperate climate all year round. Like most Himalayan towns, Gangtokhas five seasons: summer, monsoons, autumn, winter and spring. Temperatures range from anaverage maximum of 22 °C (72 °F) in summer to an average minimum of 4 °C (39 °F) in winter.Summers (lasting from late April to June) are mild, with maximum temperatures rarely crossing25 °C (77 °F). The monsoon season from June to September is characterized by intense torrential Page 14
  15. 15. BUSINESS PROPOSALrains often causing landslides that block Gangtok’s land access to the rest of the country. Rainfallstarts to rise from pre-monsoon in May, and peaks during the monsoon, with July recording thehighest monthly average of 649.6 mm (25.6 in). In winter temperature averages between 4 °C(39 °F) and 7 °C (45 °F). Snowfall is rare, and in recent times Gangtok has received snow only in1990, 2004 and 2005. Temperatures below freezing are also rare. During this season the weathercan be sporadic, and change abruptly from bright sunshine and clear skies to heavy rain within acouple of hours. During spring and autumn the weather is generally sunny and mild. Owing to itselevation, Gangtok is often enveloped in fog during the monsoon and winter months.How to get to Gangtok:Foreigners visiting Gangtok must possess an Indian visa. In addition to an Indian visa, foreignersmust obtain Inner Line Permit (ILP) to visit Sikkim. The permits can be obtained from all Indianmissions, Tourism Office, New Delhi, Sikkim Tourism Office, Calcutta and Sikkim TourismOffice, Siliguri on the strength of an Indian Visa...more. REGION: 27.33°N 88.62°E, M. G. Marg, Gangtok, East Sikkim, Sikkim TRANSPORT: Private Taxis, Jeeps regularly on the Gangtok- Siliguri Highway and are available for transfer of passengers between Gangtok and Siliguri/ New Jalpaiguri Junction/ Bagdogra, and also for local sightseeing at fixed rates and may be reserved through Tourist Bureau, Govt. of West Bengal, and Gangtok. AIR CONNECTIONS: Nearest airport is Bagdogra in West Bengal (124 kms.) HELICOPTER SERVICE - between Gangtok - Bagdogra - Gangtok ROAD CONNECTIONS: Gangtok is connected with all weather mottled road with Siliguri, Kalimpong, Gangtok etc. RAIL CONNECTIONS: New Jalpaiguri in West Bengal (148 kms.) Places to visit in and around Gangtok:One of the tour sites of Gangtok is the Namgyal Institute of Tibetology. It was built in 1958 andis a research center for Mahayana Buddhism and Tibetan culture. Besides being a museum oftraditional and old artifacts, tourists can also buy Buddhist religious books and other objects of Page 15
  16. 16. BUSINESS PROPOSALcraft. Gangtok also offers the Orchid Sanctuary, which is the home of some 500 varieties oforchids to the travelers.Another tourist attractions in Gangtok is Rumtek Gompa. The Gompa is a rich monastery andabode of the head of the Kagyupa order of Tibetan Buddhism. Devotees and tourists often flockto it throughout the year. Then there is the Tsongo or Changu Lake in the Northeast of Gangtok.Tourists require special permits to travel to this picturesque locale. 1. Permanent Flower Show:White Hall, Close by the White Memorial Hall and just below the Palace Ridge park is the morerecent Flower Show Hall. In recent years this show has become quite popular and famous asthere are flower exhibitions throughout the year in accordance with the seasons and the flowersin bloom. 2. Enchey Monastery:Located on a hilltop above Gangtok this monastery rebuilt in 1910 belongs to the Nyingmapaorder and was once the hermitage site of Lama Drupthob Karpo renowned for his power offlying.An important seat of the Nyingma order, the Enchey Monastery meaning the Solitary temple,was originally built with the solace that no other construction would be allowed near it is built onthe site blessed by Lama Druptob Karpo, a tantric master known for his flying powers. This 200year old Monastery has in its premises images of god, goddesses and other religious objects.Every year around January Chaam or religious masked dance is performed with great fanfarefor two days. it is situated adjoining the Sinolchu Tourist Lodge, 3 kms from Gangtok Town. 3. White Hall:The White Hall has historical value and is situated on the Ridge. It is a two storied structure andhas typical British architecture and was built in 1932. It is so called not because it is, paintedwhite but because it was built in memory of the first Political Officer of Sikkim, Claude White.There is an Officers Club and a badminton court in the White Hall. Page 16
  17. 17. BUSINESS PROPOSAL 4. Ganesh Tok:It is a very small temple dedicated to Lord Ganesh, a diety worshipped by Hindus. The temple isso small in size that it can hardly accommodate one person and one has to crawl to get inside it.It is located on the hill adjoining the TV Tower. It is on a hillock on Gangtok-Nathula Road. From here you can get a panoramic view of Gangtok town and the Raj Bhawan Complex andon a clear day you get a breathe taking view of Mt. Khangchendzonga.During the tourist season, a small cafeteria is opened for the convenience of the visitors. Justadjoining the Ganesh Tok is a pinetum garden containing pine trees. A walk on the footpathamongst the pine trees is refreshing. 5. Rumtek Dharma Chakra CenterA short drive from Gangtok will take you to Rumtek Dharma Chakra Centre. Built in 1960 byHis Holiness the late 16th Gyalwa Karmapa it is a replica of the original Kagyurpa Monastery inTsurphu, Tibet, the seat of His Holiness the Gyalwa Karmapa Rinpoche, head of the Karmapasub sect of Kargyudpa order of Tibetan Buddhism. It now functions as the headquarters of theDharma Chakra Religious Centre.Located within the complex are the main monastery, the memorial stupa of the XVI GyalwaKarmapa inlaid with gold plate and semi precious stones, Shri Nalanda Institute for HigherBuddhist Studies and the Jamyang Khang Primary School. The centre houses some of the worldsmost unique religious scriptures, manuscripts and religious art objects.A fifteen minute walk downhill from Dharma Chakra Center takes one to the Old Rumtekmonastery which was originally built in 1730 by the ninth Karmapa but was destroyed by fireand had to be reconstructed to the present state. His Holiness late Gyalwa Karmapa lived in thismonastery till the completion of the Rumtek Dharma Chakra Center. 6. Jawaharlal Nehru Botanical Garden: Page 17
  18. 18. BUSINESS PROPOSALLocated very close to Rumtek Monastery just half a kilometer before reaching RumtekMonastery on the highway, it is maintained by the parks and Gardens unit of the ForestDepartment of the Government of Sikkim, the Garden is an enchanting and soothing experienceamong the lush green vegetation, rare plants and trees and certain species of Himalayan flowersand Orchids.This garden is a mixture of well tended tropical and temperate plants and trees can be found here.A huge greenhouse containing many species of orchids has been constructed within the garden.For children there is even a small playground with a merry-go-round, swings and a see-saw. Acemented footpath winds its way through the garden and is good for taking a relaxed stroll. Thesprawling town of Gangtok can be seen on the hill opposite. The garden is indeed an ideal picnicspot. 7. Tsongo/ Changu Lake: The drive from Gangtok takes about 2½ hours by bus. The lake is about 1 km. long and oval in shape, 50ft deep . This is an alpine zone and snowbound from December to April and the lake is regarded extremely Holy holy and head of all lakes in Sikkim remains frozen from Page 18
  19. 19. BUSINESS PROPOSAL January to April, and attracts 99% of tourists visiting Gangtok, Sikkim. It is also a home of Brahmini ducks besides stopover for various migratory ducks. 8. Nathula Pass: The days for tourist visit is restricted and needs to be applied at least 24 hrs in advance andlimited days of operation. The days permitted to visit Nathula are Wednesday, Thursday,Saturday and Sundays only. Photography is strictly prohibited in and around Nathula.20 km further away from is the famed Nathula pass. The pass Nathula means the whistling pass.Nathula is the Indo-China border at Jawahar Lal Nehru Road whereby Indian troops and the Redarmy stand face to face. This is the closest an Indian Tourist can travel and pose a photo or twowith the Red Army. What to Buy in GangtokGangtok is indeed a treasure trove for its tourists. Besides curios you may pick up bronze andsilver jewelry, turquoise, coral jewelry and beads easily from Gangtok. For the food freaksGangtok offers the dried fish, yaks cheese (churpi), and yeast for making the local beer (tomba).Gangtok also offers several options for gift items and souvenirs. You may take your pick fromcarpets, handloom fabrics, thangka paintings and wooden objects Adventure Sports in GangtokFor the adventure tourist Gangtok is the place to be at. While at the hill resort of Gangtok youmay indulge in adventure activities like trekking, white-water rafting, hang gliding, yak safari,and mountain biking. Gangtok offers interesting treks to the Pemayangtse, Khechopalri,Yuksam, Tsokha, Dzongri, Thangshing, Zemathang, Chaurigang, Tashiding, Varsey, Yangang,Rabongla, Sang and Sikip. The state tourism department of Sikkim has been promoting theadventure tourism potential of Gangtok. Page 19
  20. 20. BUSINESS PROPOSAL Fairs and Festivals of GangtokFairs and festivals celebrated in Gangtok add to the charm of the hill resort. The TashidingGompa hosts the annual Buddhist festival of Bumchu in January. During January-February thedancing festival of Chaam is held in Enchey Gompa. The monthly mask dance of Kagyat isanother attraction in the hill resort. Saga Dawa is held in Gangtok during May, and Drukpa Teshiis celebrated throughout Sikkim during July mark Buddhas first teaching. Foreigners visit in GangtokAll foreigners intending to visit Gangtok can obtain 14 days Restricted Area Permit (RAP),endorsed in their India visa from the Indian mission abroad. Tourists may also obtain the permitfrom the Deputy Director, Sikkim Tourist Information Center in Delhi or from the AssistantDirector, Sikkim tourist Information Center in Siliguri.Any tourist is allowed to visit Sikkim for a maximum of 15 days and obtain an extension ofanother fortnight only from the Home Office (Tashling Secretariat). Re-entry into the state is notpermitted for three months even if one returns before the completion of the first fifteen days. Page 20
  21. 21. BUSINESS PROPOSAL 5) MAN POWER REQUIREMENTAs our hotel and restaurant is running on a large scale and it is situated in the heart of Gangtokwhere our customer will be enjoying the beauty of nature. So it will become our duty to serveour customer the BEST and very fast too but on the other side of the coin from the owner pointof view we will also reducing the cost of our staff and have to choose that number of staffmember which will suit and give benefit to both the sides. So the staff recruitment is as follows:POST NUMBER SALARY/WAGES (Rs)MANAGER 1 12,000/-ASST. MANAGER 1 8,000/-COOK 2 12,000/-[6,000×2]WAITER 6 24,000/-[4,000×6] Page 21
  22. 22. BUSINESS PROPOSALELECTRICIAN 1 4,000/-HELPERS 5 20,000/- [4,000×5]ACCOUNTANT 1 6,000/- TOTAL - 80,000/- 6) TECHNICAL KNOW HOWYoure likely to spend more, on any given trip, for hotel accommodations than for air travel. Sopaying attention to hotel rates is worth your time. Hotels and other accommodations are much better than airlines at providing asatisfactory experience for business travelers: A really bad night in a business hotel is about asrare as a really good flight in coach. Price generally correlates with quality, and even the low endof the quality spectrum provides adequate comfort and convenience.The rules - Review the different hotel classes.The strategy - Decide what will determine the way you choose a hotel.Making the deal - Read up on the steps to maximum value.The rules Page 22
  23. 23. BUSINESS PROPOSALInstead of sticking strictly to price, youll find it more useful to think about hotel categories thatreflect a combination of price and features. Undoubtedly, youre most apt to stay in a businesshotel. Sometimes, however, other options can provide either more value or a more pleasantexperience. Heres my take on the main sorts of hotels youll encounter.Business hotelsUpscale business hotels constitute the great middle ground of the hotel business, with a wideprice/quality spectrum. Unless youve been traveling on some other planet, you know the nameswell: Crowne Plaza, Hilton, Hyatt, InterContinental, Marriott, Omni, Ramada, Renaissance,Sheraton, Sofitel, Westin, Wyndham, and dozens of others, worldwide.Midprice hotelsOne of the "hottest" hotel market niches these days provides almost all the facilities and servicesof a full-price business hotel but at a sharply lower price range. The midprice niche includes twosub-segments:Midprice full-service hotel chains are generally offshoots or variants on the big business-hotelchains, including Hilton Garden Inn, Holiday Inn, Courtyard by Marriott, Ramada, andSheratons Four Points.A closely related segment-midprice limited service-provides almost the same facilities but a tadfewer services. This sub-segment includes Drury, Fairfield, Hampton Inn, LaQuinta, and a dozenor so others.Budget motelsIf youve ever had to stay in a small town along the highway, youve undoubtedly slept in abudget motel. Theyre becoming ubiquitous outside cities. Almost all recent growth has beenfrom the large chains. However, you still see a few low-end independents along downtownhighways bypassed by Interstates in some of the smaller cities.Most of us know what we mean by a budget motel. Major brands include Comfort Inn, Days Inn,Econo Lodge, Holiday Inn Express, Motel 6, Shoneys, Super 8, Travelodge, and a bunch of Page 23
  24. 24. BUSINESS PROPOSALothers. Most of those brands are national throughout the U.S. and many are active in Canada, aswell.Boutique hotelsThe prototypical boutique hotel is an older city-center property that has been refurbished to adegree that it can compete with newly constructed midprice and expensive business hotels.Rooms tend to be smaller than at newer competitors, and they usually have fewer businessfacilities than larger business hotels. However, many travelers have concluded that thosedisadvantages are more than offset by more individualized decor and especially a high degree ofpersonal service from the staff.Resort hotelsChances are that youll encounter resort hotels, if at all, only when youre attending meetings orconventions at the resort. And in that case, your choice of hotel is made for you: Your onlydecision is whether to accept the official convention rate or try for a bigger discount throughsome other program.All-suite hotelsAll-suite hotels have gained much popularity with business travelers, and for good reason.Typically, you get 400-600 square feet of room, with separate "living" and "bedroom" areas, aswell as at least minimal kitchen facilities. The living area provides lots more space to spread outyour work than you find in the conventional room. And if you want to entertain a businessvisitor, you can do it in a more businesslike living room or office setting rather than across apossibly unmade bed.Extended-stay hotelsA subset of the all-suite genre, extended-stay hotels cater to guests who stay five days or more.Compared with more conventional all-suite properties, most of them have more space, overall,plus larger, better equipped kitchens, often including a refrigerator, stove, and even a dishwasher.Most of the big chains have in-room Internet access, about three-quarters of it high-speed. Pricesstart at the high end of the budget motel range and go well up into the business hotel range. Page 24
  25. 25. BUSINESS PROPOSALApartments and condosOften, on an extended stay, you may prefer a real apartment or condo to a hotel, even an all-suitehotel. Although such short term apartment arrangements are sometimes called "vacation rentals,"many are appropriate for business travel.The strategy setting the standardSetting a quality standard for hotel accommodations is straightforward. The industry provides aspectrum of price and quality points, with small increments between adjacent levels. The OfficialHotel Guide publishes a widely accepted classification system for hotels, based on 10 levels. Thecost of moving up from one notch to the next-from "Superior Tourist" to "Moderate First Class,"say-is likely to be no more than about 10 to 15 percent. When you set a company standard, itseasy to specify "Moderate First Class" or "Holiday Inn or equivalent" for hotels and be sure of areasonably consistent standard. Common sense is probably more important with hotel choice than with any other majorelement of travel expense. You dont want your employees (or even you, yourself) to live it up inlavish accommodations, but you dont want to be in scruffy cheap hotels, either. Location is often the main factor in selecting a hotel-sometimes the only factor. You may wantto stay near an office or person youre visiting or a convention center. Other times you mayprefer to be in a city center or near an airport. Sometimes, particular needs, such as free, easy, in-and-out parking will influence your location choice.Loyalty vs. lowest priceIn my point of view, the pull of any hotel chains frequent stay program is far less potent than thelure of airline frequent flyer programs. Although the big chains elite frequent stay levels providesome significant benefits, they pale by comparison to frequent flyer upgrades. Accordingly,youre much more likely to spread your hotel business around among many different chains andindividual hotels than you are your airline business.We want to select a preferred hotel chain-one that you use, preferentially, whenever it has a unitin one of your destinations and the price is right-or close to right. Youll generally settle on your Page 25
  26. 26. BUSINESS PROPOSALpreferred chain either because you like its position in the product/price spectrum or you want tobuild status and credit in its frequent stay program.If you travel frequently, but to a small number of destinations, your best bet is to arrange somesort of preferential deal with an individual hotel in each of those destinations. Youll undoubtedlyget a better deal directly from an individual hotel manager than you ever would through a chain-wide frequent stay or corporate program.If your trips take you to many different destinations, you may want to consider a chain-wide dealwith one of the larger chains. Select one in the price range you like and negotiate.But, in my view, youll pay less, on average, by forgetting a preferred-supplier deal and insteadplaying the various discount sources. As a small business, you probably cant generate even closeto enough volume to warrant a really good corporate deal, anyhow, and the discounters canusually beat the run-of-the-mill corporate discounts you can get. Moreover, even a very largechain may not have enough locations to satisfy all your requirements.Making the dealAs with air trips, the first step is to set a benchmark. Often, your benchmark hotel is obvious: aplace where youve stayed before, one recommended by a client/customer/supplier, or the site ofa meeting/conference youre attending. If thats the case, call the hotel, its chains toll-freereservation number, or visit its website. Check for the best available rate—perhaps even book aroom, since you can cancel if you find a better deal. If you know of two or three possible options,treat them the same way. In any case, youll quickly develop a pretty good idea about thebenchmark list price.Once youve determined your benchmark(s), its time to check the tradeoff options.1. Check first for a lower price at your benchmark hotel. Find out if your travel agencysnegotiated-rate program includes your selected hotel, whether one or more of the larger discountagencies/brokers handles it, or whether its listed in a half-price program, and, if so, get thediscount price. Page 26
  27. 27. BUSINESS PROPOSALBe careful to check cancellation penalties along with rates: Even the most lenient discountersnow frequently require two to three full days notice for a no-fee cancellation. You may also trychecking your benchmark hotel in the directory of any half-price program to which youvesubscribed.2. If your benchmark seems expensive, you may also look-in the same places—for a better dealat a different hotel in the same general category as your benchmark.3. Next, consider whether you need or would like a different sort of accommodation—or at leastwant to consider one. Do you need to keep costs to a minimum for this trip by staying in abudget motel or economy hotel? Would you like to find an all-suite hotel, or a boutique, or aB&B, or a luxury hotel, or even a nearby resort? Are you going to be in one place long enough toconsider an extended-stay hotel or apartment rental?5. For a special niche accommodation, the full-line discount sources deal with all-suite hotels,extended-stay hotels, and resorts through the same inventory lists as their conventional midprice,business, economy, and deluxe hotels. However, for such other niche accommodations as B&Bsor apartment rentals, check with one of the websites that specializes in arranging suchaccommodations.6. If youre sure you wont have to change your plans, consider an opaque site such as Hotwire orPriceline. First, establish some sort of minimum price differential youll accept to offset theinconveniences of the opaque site. I usually wont go for an opaque deal unless its at least $25 anight under the best in-the-clear deal I can find, and if I really like a hotel, Ill up that minimumdifference to around $50 a night. If you cant cut your costs by at least that much, the risks ofopaque buying generally outweigh a trivial price gain.On Hotwire, look for a hotel in the same location and quality/price level, and accept it if it beatswhatever minimum differential you establish. On Priceline, underbid your best alternative dealby the differential youve established.Alternatively, if you like luxury on the cheap, look for or bid the same amount of money youdotherwise spend but aim for a hotel that is one or two classes above your other choice(s). Page 27
  28. 28. BUSINESS PROPOSAL 7) WHY I AM INTRESTEDIts the easiest to use hotel business plan program available today. A hotel business plan programthat produces faster results than any other, and a business plan program brought to you by acompany with over 25 years of related experience. Its structure is the preferred format today andit offers you a hotel template that includes all that should be included in a hotel business plangeared toward success. The financial projection workbook is the best in the world and knows nocompetition. Use Plan Magic Hotel for the startup of a hotel, beach hotel, ski hotel, or any kindof hotel, or for analyzing and improving the financial situation of an existing hotel business. Restaurant business is very flourishing business these days not in India only it has beentermed as an International Hotel and Restaurant Industry and it carries very brilliant prospects. The need for advantage of Hotel Industry to Restaurant Standards has been felt veryrecently due to advancement in the technology & industry due to which a lot of young millionare have come into existence. This class of people & many people from higher & medium ofpeople like to take advantage of this type of Restaurant system on many occasions. After oil the world tourism is the largest single item of international trade today with theincrease in education discretionary income and in leisure and paid holidays, travel hasGrown rapidly in recent years. If same growth rate is maintained through year 2o11 then the affluent, the first time travelersand those with time to spare would begin to move in such numbers at internationalAirports that these are grave doubts whether the industry couldCope up with them at all or not. Page 28
  29. 29. BUSINESS PROPOSAL Gangtok is located in the North Eastern part of India in the lower Himalayas in the state ofSikkim. The city is situated at an altitude of about 1780 m above the sea level and enjoys a mildtemperate climate throughout the year. Integration of different cultures in the region makes thisplace a heaven on earth. The city has a large number of tourist attractions which draw peoplefrom all around the world to this wonderful city of India. We at Touristplacesinindia.comprovide you with complete information on all that you want to know about Gangtok, the Capitalof Sikkim. Fast FactsArea: 954 sq km.Climate: Tropical, temperate and alpine climateMaximum temperature: 16.6°CBest time to Visit: March – April & October-NovemberMinimum temperature: 10°CLiteracy rate: 82%Tourist visit: 39,000 (2007) 47,000 (2008)There are many places of tourist interest in and around the city of Gangtok. Important amongthem include the Enchey Monastery, Permanent flower show in the white hall close to the whitememorial hall, Do-Drul Chorten stupa, Handloom and Handicrafts centre, Namgyal Institute ofTibetology, Saramsa Garden, Rumtek Dharma Chakra Centre, Jawaharlal Nehru BotanicalGarden, Tashi View Point, Sa-Ngor-Chotshog Centre and the Ganesh Tok. Othhers include thePemayangtse Monastery, Sanga-Choling Monastery, Khecheopalri Lake, Tashiding Monastery,Phodong Monastery, Phensang Monastery, Singhik – the place which offers the closest and most Page 29
  30. 30. BUSINESS PROPOSALspectacular view of Kanchanjunga, Chungthang, Lachung, Yumthang, Guru-Dongmar Lake,TemiTea Garden and the Menam Hill.Gangtok has a well developed transportation network. The city is wellaccessible by road from the airport and the railway station. The nearest airport is at Bagdogranear Siliguri. This airport is connected with Netaji Subhas Chandra Bose International Airport atKolkata by regular flight services. From the airport one can hire private cars to reach Gangtok.The nearest railhead is at New Jalpaiguri which is connected by regular train services fromKolkata.Gangtok, the Capital city of Sikkim provides a wide range of accommodation which ranges fromDeluxe and Luxury hotels to budget and economy hotels. Some of the hotels which provideaccommodation in Gangtok include the Hotel Nor Khill, Royal Plaza, Golden Heights, Silk routeResidency, Hotel Golden Pagoda, The Sikkim Continental, Hotel New Castle, Cherry GuestHouse, Hotel Crystal Palace, and Hotel Central to name a few. These hotels in Gangtok providethe most comfortable accommodation and dining facilities and promise a hassle free stay in thecity.Touristplacesinindia.com is an international travel site and a repository of useful informationabout Gangtok and on other related information about the city. Page 30
  31. 31. BUSINESS PROPOSAL 8) TAXES APPLICABLE:Federation of Hotels and Restaurant Association of IndiaRationalize tax structureIn order to remain competitive with other destinations in Asia like Malaysia, Indonesia, etc,which has a low level of taxation, hotels in India need to be subjected to a rational tax structure(i) Direct taxesSection 80IA: Infrastructure status for the hotel industryIn the list of infrastructure projects, hotels may be included just like airports, seaports, andrailways, etc.In fact under Section 10 (23) g of the Income Tax Act, hotels were added to the infrastructure listso that the interest received by financial institutions and banks for loans extended to hotels weretax exempted. However, the section itself was discontinued with effective from April 1, 2007.All new hotel projects will be able to avail the benefit of deductions of 100 per cent with respectto profits and gains for a period of 10 years. This will lead to many new hotel projects being setup, with companies re-investing their profits in the hotel sector.Further, it will help in channeling huge investment about Rs 50,000 crore (Rs 500 billion) in thetourism sector in next 3-4 years and quickly bridge the shortfall of hotel accommodation.Deduction in respect of earnings in convertible foreign exchange under Section 80HHDSection 80 HHD gives tax exemption from the export profits to exporters. If this is granted to thehotel industry, it would help companies to reinvest profits for building additional capacity.Section 80-ICAs per Section 80-IC of the Income Tax Act, any undertaking commencing any operationspecified in the Schedule XIV and having undertaken substantial expansion during the periodfrom January 7, 2003, to April 1, 2012, to promote eco tourism in the special category states Page 31
  32. 32. BUSINESS PROPOSAL(like Sikkim, Assam, Tripura, Meghalaya, Mizoram, Nagaland, Manipur, Arunachal Pradesh,Uttaranchal and Himachal Pradesh are exempt from income tax for five years, for promoting ecotourism in the country.But the income tax authorities have denied deductions to hoteliers on the ground that the activityof a hotel does not constitute an operation as specified in Schedule XIV of the Income Tax Actand they have also directed the hoteliers to explain the eco tourism activity in their project.The hotel sector seeks a liberal view to include hotels as an eligible activity of eco tourism inSchedule XIV, to enable them to claim the above benefit.Deduction to be made in computing total income under Sec 80While calculating the total income of an individual deduction of LTC paid to an employee beadmissible, as in the case of other deductions via PF, Mutual Funds, LIC, etc. This will promotedomestic tourism all over India and increase revenues for the government.Section 80-IDIn the Income Tax Act 2007-08, Section 80 ID was introduced to give encouragement to 1, 2, 3and 4 star hotels and convention centres of a minimum seating capacity of 3,000 persons beingset up in the National Capital Region of Delhi , Gurgaon, Faridabad, etc, for the CommonwealthGames in 2010.A tax holiday for five years was granted to these hotels that would open before March 31, 2010.The areas covered under this section were further expanded in the Budget proposal 2008 toseveral other locations. Presently, the benefit is extended to new hotels set up in the specifiedregion and the benefits are not allowed to substantial expansions of hotels and resorts in theseregions.Substantial expansions of room capacity in excess of 30 per cent of the existing capacity shouldalso be treated eligible for the tax holiday benefits. The coverage of the benefits granted underthis section should be extended to all categories of hotels throughout the country, and thosewhich open in the next 10 years. Page 32
  33. 33. BUSINESS PROPOSALSection 32Hotel buildings are considered as plants for the hotel industry as they are utilized for 24 hours.The industry is required to make heavy investments in renovation, up gradation and upkeep ofthe hotel buildings at all times to keep it in pristine condition.Section 32 of the IT Act should be amended to restore the depreciation rate to 20 per cent.(ii) Indirect taxesService taxHotels and other tourism related service providers who earn foreign exchange have beenincluded as the 13th sector in the Service Export Promotion Council set up by the ministry ofcommerce, government of India.As such, they may be granted exemption to the extent of foreign exchange earned for thefollowing services provided by the hotels, ie banquet rentals, rent-a-cab, dry cleaning services,health club or fitness centre services, beauty parlour services, internet cafe services,club/association service, business support services, business auxiliary services, managementconsultant services, renting of immovable property, etc.Custom dutyThe customs duty structure should be rationalised for hotels and restaurants in tune with theinternational practices, to enable the Indian service sector to compete with their internationalcounterparts.This is specially so for import duty payable by small sized hotels and restaurants who do not earnsubstantial foreign exchange and therefore, are not eligible for any of the Export PromotionCapital Goods schemes.Excise dutySeeks excise duty exemption on supply of food preparations (as part of their food and beverageservices) by hotels or restaurants to their by guest (staying in the relevant hotel). Page 33
  34. 34. BUSINESS PROPOSALAlso, hotels and restaurants with turnover less than Rs 1.50 crore (Rs 15 million) should beexemption from paying central excise duty on the products produced and consumed within thepremises.(c) Interest subvention to employment intensive sectorsThe 2 per cent interest subvention extended to employment-intensive sectors like textiles,leather, marine and handicrafts as announced in the relief package announced by the governmentof India on December 8, 2008, should be definitely extended to the hotel sector as theiremployment generation capacity is much more than these sectors.(d) Declaration of tourism as an industry under the Industries Act 1951Many states in India have already granted industry status to tourism and the industry seeks theremaining state governments as well as the central government to recognise tourism as anindustry.It is also requested to declare tourism as an industry under the Schedule 1 of the IndustriesDevelopment Act, 1951.(e) Luxury taxLuxury tax varies widely across services and states. Also, in the most of sales it is charged on thepublished tariff by not considering the commissions paid to agents and discount offered to walk-in clients.So the industry seeks exemption of luxury tax on the room tariff less than Rs 2,500 and to chargea uniform rate of 4 per cent on the actual tariff where room rent is Rs 2,500 or more per day.(f) VAT/Sales tax and other taxesVat/Sales tax on food & beverage are different for each state and it should be uniform over thecountry. It will help in many hotel projects coming up all over the country which leads tolowering hotel tariffs and generating employment. Page 34
  35. 35. BUSINESS PROPOSAL 9) PLANT LAYOUTLAND AND BUILDING: AMOUNT (Rs) 1) Land 250 Sq. meter. 20,00,000/- 2) Building area 40 Sq. meter 10,00,000/- Total- 30, 00,000/-PLANT AND MACHINERY Amount (Rs) 1) Kitchen equipment- 5,00,000/-OTHER FIXED ASSETS Amount (Rs) 1) Office equipment, furniture, other equipment & accessories 5,00,000/- 2) Installation costs for water, electricity, fuel etc. 2,50,000/- 3) Pre operative expense. 2,50,000/- 4) Wood work (indoor & outdoor, window) 2,50,000/- 5) Telephone & Internet 50,000/- 6) Architect’s fees & other design works 1,00,000/- 7) Generator set 1,00,000/- Total: 15, 00,000/- Page 35
  36. 36. BUSINESS PROPOSALTOTAL FIXED CAPITAL Amount (Rs) 1) Land & building 30,00,000/- 2) Plant & machinery 5,00,000/- 3) Other fixed assets 15,00,000/- 50,00,000 _______________ WORKING CAPITALCOST ESTIMATION WORKING HOURS/DAY = 10 HRS. WORKDING DAYS/YEAR = 300 DAYS. WORKING CAPITAL REQUIREMENTS/DAY (For 100 diets/day)In the hotel there are a number of items which are served.We are taking the average cost of raw materials.(I) CHICKEN (MUGLAI): 1. Muglai dish 2. Chicken biriyani 3. Mutton Biriyani 4. Chicken Soup Page 36
  37. 37. BUSINESS PROPOSAL 5. Chicken Masala 6. Chicken Curry 7. Hot Dog 8. Fish 9. Egg Curry 10. Fish Fry 11. Shahi Kabab 12. Shahi Tarka 13. Soup 14. Pulao 15. Chicken Pulao 16. Tandoori Chicken 17. Butter Chicken 18. Others For 35 diets average cost of raw material/diet @ Rs. 70/-per diet Rs. 2450/-(II) CHINESE DISHES Remaining about 20 diets average cost of raw material/diet @ Rs. 8.00/-per diet Rs. 160/-(III) SOUTH INDIAN DISHES 1. Dosa 2. Idli 3. Masala Dosa 4. Curd Rice 5. Plain Rice Page 37
  38. 38. BUSINESS PROPOSAL 6. Others 10 diets average cost of raw materials for the above Rs. 9/- Per diet Rs. 90/-(IV) NORTH INDIAN DISHES:1. VEGETABLE: a) Cholla b) Matar Paneer c) Kofta Paneer d) Allu Mutter2. Rice3. Kulcha4. Kacheri5. Bhatura6. Samosa7. Chabate8. Dal etc.For 30 diets average cost of raw material/diet@ Rs. 7-/-per diet Rs. 210/-9. Cost of Drinks & fruit juice 150 Page 38
  39. 39. BUSINESS PROPOSAL @ Rs. 10.00/-per Drink Rs. 1500/-10. Consumption of assorted snakes tea, coffee, espresso coffebon 350/-cups Cost of raw material @ Rs. 1.00/-per cup = Rs. 350/- Total- Rs.4765/- Other Consumption/daily Rs. 500/- Total - Rs.5265/- Amount (Rs) Raw material expenditure per month- 1,31,625/- Salary & wages 70,500/- UTILITIES AND OVERHEADS Amount (Rs) 1) Electricity bill 12,000/- 2) Fuel charge 5,000/- 3) Telephone & Internet bill 9,000/- 4) Repair & maintenance expenditure 12,000/- 5) Transportation & expenditure on vehicles 12,000/- 6) Advertisement & publicity 10,000/- 7) Miscellaneous expenditure 12,000/- Total- 65,000/-TOTAL WORKING CAPITAL PER MONTH Amount (Rs) Page 39
  40. 40. BUSINESS PROPOSAL Raw material expenditure 1,31625/- Salary & wages 70,500/- Utilities & overheads 65,000/- Total- 2, 21,625/- TOTAL CAPITAL INVESTIMENT Amount (Rs) Total fixed capital 33,35,000/- Working capital requirement for one month 2,21,625/- Total- 35,56,625/- COST OF PRODUCTION PER ANNUM Amount (Rs)1) Working capital for one year 26,05,500/-2) Interest @ 12% on 50% total capital (14,00,000/-) 1,68,000/-3) Deprecation @ 10% on building 72,000/-4) Deprecation @ 20% on plant & machinery 16,000/-5) Deprecation @ 10% on other fixed assets 54,000/- Total- 29,16,000/- Page 40
  41. 41. BUSINESS PROPOSAL TURNOVER PER ANNUM Hotel Amount (Rs) 1) Single bed room (1000×7) 7000/- 2) Double bed room (750×7) 5250/- 3) Dormitory (200×7) 1400/- Total- 13,650/-Tourist season 4 month (4×30) - 120 daysOff season 210 days (30% full) - 70 days Total- 190 daysAnnual receipts 190 days×13650/- = 25,93,500/- Restaurant Amount (Rs) 1) Mughlai 35 diets per day (330×35) @ 120/- per diets 13,86,000/- 2) Chinese dish 20 diets per day @ 110/- per diets 7,26,000/- 3) North Indian dish 30 diets per day @ 80/- per diets 7,92,000/- 4) By snacks, tea, coffee, etc 350 cups per day @ 12/- 13,86,000/- Total- 48,90,000/- Page 41
  42. 42. BUSINESS PROPOSALTOTAL RECIEPTSHotel Rs- 25,93,500/-Restaurant Rs- 48,90,000/-Total- Rs-74,83,500/-PROFITSProfit = Receipts-Cost of production = 74,83,500 – 29,16,000 = 45,67,500/- Page 42
  43. 43. BUSINESS PROPOSAL 10) DEMAND OF PRODUCTRestaurant business is very flourishing business these days not in India only it has been termedas an International Hotel and Restaurant Industry and it carries very brilliant prospects.The need for advantage of Hotel Industry to Restaurant Standards has been felt very recentlydue to advancement in the technology & industry due to which a lot of young million are havecome into existence. This class of people & many people from higher & medium of people liketo take advantage of this type of Restaurant system on many occasions.After oil the world tourism is the largest single item of international trade today with theincrease in education discretionary income and in leisure and paid holidays, travel has grownrapidly in recent years.Every year the number of tourist are increasing year by year. The number of tourist toinformation of Sikkim Tourism Industry, the no of tourist visited Gangtok was 39000 in 2006,and 42000 in 2007, and in 2008 it was 47000. And it is expected around 52000 in 2009.So all this data gives us information about the tourist who visited Gangtok and according to thisdata it is very clearly proof that the Gangtok proves to be a very healthy ground to starts the hotelindustry in Gangtok. Page 43
  44. 44. BUSINESS PROPOSAL 11) SUPPLY OF RAW MATERIALAs our business is of hotel sector and our business is engaged in both accommodation andrestaurant, so the raw material which are required are to be handled with care so that the serviceswhich we provide to our customer should be very much accepted by the customers and shouldalso give satisfaction to them. As our hotel is situated in the hard of Gangtok with the beauty ofnature, so this both things give boost to our hotel and also a positive aspect for our hotelbusiness. That’s why as we know that raw material is a very important factor (restaurant) for ourhotel because 50% of the quality of our hotel depends our department, so keeping in mind, weshould provide to our customer a healthy, hygienic and nuterious meal to our customer.So supply of raw material is one of the most important aspects for our business. So supply of rawmaterial is as follows: Non-veg items Veg items Spices Snacks Gas Cleaning materials( phenyl, detergents, etc.) Page 44
  45. 45. BUSINESS PROPOSAL 12) SOURCES OF RAW MATERIALAs our business is of hotel sector and our business is engaged in both accommodation andrestaurant, so the raw material which are required are to be handled with care so that the serviceswhich we provide to our customer should be very much accepted by the customers and shouldalso give satisfaction to them. As our hotel is situated in the hard of Gangtok with the beauty ofnature, so this both things give boost to our hotel and also a positive aspect for our hotelbusiness. That’s why as we know that raw material is a very important factor (restaurant) for ourhotel because 50% of the quality of our hotel depends our department, so keeping in mind, weshould provide to our customer a healthy, hygienic and nuterious meal to our customer.Our sources are very much reliable at the point of view of quality. They all are governmentregistered, or registered by local municipalities. Our raw material sources are as follows: Akif Butcher Shop, 31 A NH, Gangtok. Ph. No- 03592-222823 Gangtok sabji mandi, Gangtok. Lama Groceries, Tadong, Gangtok. Oh. No-03592-223215/ 227884 Rai Gas Agency (HP) 31 A NM, Gangtok. Bahadur departmental store, M.G. Marg, Gangtok, Page 45
  46. 46. BUSINESS PROPOSAL Ph. No- 03592-225057/ 224439 13) MAJOR COMPETITORSMAJORE COMPETITORS Hotels in Gangtok treat visitors with the stunning view of the worlds third highest peak-Mt. Kanchenjunga. Many hotels in Gangtok located within the heart of the city, offer easy accessto nearby tourist destinations as well as shopping arcades. For tourists seeking quiet and sereneatmosphere, they can rightly choose Gangtok hotels which are located amidst lush green valleys,in the outskirts of the city. Gangtok as a hill station is gaining lot of popularity amongst bothdomestic and inbound tourists. Therefore all the hotels in Gangtok offer unique decor withexceptional services to make the tourists have a memorable experience. So some of ourcompetitors are... 1. Cherry guest house, Gangtok: Cherry guest house is located in the Gangtok main town. Its 2 minutes walk from the local taxi stand. The Cherry guest house is not a typical hotel but is part of a nice Cottage complex known as the Rai Cottage Complex. It has large specious rooms. 2. Hotel Central, Gangtok Hotel Central is located near the shopping area in Gangtok. The hotel is an ideal venue for conducting business conferences and seminars. It is also suitable for the leisure as well as the corporate travelers. 3. Hotel Crystal Palace, Gangtok Hotel Crystal Palace brings you a platter of all that a traveler craves for while you visit the heavenly regions of THE HIMALAYAS. Situated in the heart of the city of GANGTOK, Surrounded by scenic beauty on all sided, the hotel is only a minute. 4. Hotel Golden Heights, Gangtok Page 46
  47. 47. BUSINESS PROPOSAL Hotel Golden Heights Gangtok is a 3 star hotel situated in the heart of Gangtok town. Pioneering a tradition in hospitality, Hotel Golden Heights is specialized in offering its guests the good of facilities in terms of accommodation.5. Hotel Golden Pagoda , Gangtok Situated in the heart of Gangtok, Hotel Golden Pagoda offers hospitality & service which is unparallel in Sikkim. Offering a genuine Sikkimese ambience in its architecture.6. Royal Plaza, Gangtok The Royal Plaza Amidst such lush green hilly terrains, a breathtaking topography and misty mountains, emerges The Royal Plaza at Gangtok, the Capital of Sikkim.7. Hotel Rendezvous, Gangtok One of the deluxe hotels in this part of Sikkim, Hotel Rendezvous in Gangtok, is Rendezvously at the heart of the town at 2-3 minutes walking distance from the market. With its scenic location, ethnic Tibetan ambience, excellent service it is famous in Gangtok.8. Hotel Soyang, Gangtok Located on the M. G. Marg - in the heart of Gangtok, Sikkim Hotel Soyang is Gangtoks best located luxury hotel. Here attentions to details create a soothing blend of warm, effortless service and harmonious spaces! Page 47
  48. 48. BUSINESS PROPOSAL 14) LEGAL ASPECTSTo start a business you have to make sure all aspects of it is in order. If one area is notsatisfied, you may face problems later. One such problem you must look into before youeven settle into your business is the legal aspects of it. You better make sure your legalissues are covered or you may not have a business to start. There are several issues you must be concerned with regarding starting a businessand these involve several aspects of legal situations including zoning regulations andhow the land or property you acquired is used. In every city or county there are zoning regulations that you must adhere to. Ifyou start your business and place it in a commercial area, you may not need to worryabout zoning regulations. But if you have a business and you place it in a residentialarea, you must look at the zoning requirements to operate it there. This is especially trueif your business is operated in the home. When you are confronted with zoning regulations, you must contact the zoningboard in your town or the local law library to find out what the zoning areas are. If youhave to speak to the zoning board and ask them what laws you have to be familiar withand what the zones are where you want to place your business. If you are running yourbusiness in your home, make sure you are allowed to run it there first. If the zoningregulations do not allow you to operate a business from your home, you will have to filea zone variance just to be able to operate your business from your home. The zoneofficers will evaluate the area where you want to establish your business and see if it isokay to do so.They will talk to your neighbors to see how they feel about you having a business in thatneighborhood. If your neighbors do not accept it, you wont stand a chance. But if they Page 48
  49. 49. BUSINESS PROPOSALare agreeable to it, the zone board will consider your application and when the next zoneboard meeting is held, they will consider the change and notrfy you shortly after theconclusion of that meeting if you have been approved the variance or not. If you havenot been approved, you will probably have to relocate the business somewhere else. Ifyou are approved, there may be some restrictions. Make sure to get it in writing so youllknow where you stand.When you are using your land, you have to be sure the land is favorable to the city,town, or county where you live or having your business. Check to see if the property hasany restrictions. If there are restrictions you may not be able to use that property foryour business. If there are no restrictions, you may be free and clear to do business atthat location.Always check the legal system before you decide on a location for your business. Thiswill help you to plan your business start up accordingly. You dont want any surprises orhindrances to stop you from starting or running your business.Martin Lukac represents RateTake Refinance Rates marketplace. RateTake matchesconsumers with multiple lenders offering low rates. Got too much credit debt? Get DebtHelp and youd be surprised what we can do together. Page 49
  50. 50. BUSINESS PROPOSAL 15) CONCLUSIONEveryone knows that a business plan is essential to effectively describe company objectives andhow they are to be achieved in order to secure business loans and to maximize revenues andprofits. But creating a business plan that actually achieves those goals can seem a daunting andarduous task. Here are some of the common mistakes business owners make when completingtheir hotel business plans...Mistake 1: Incomplete financialsThis is perhaps the most important section of any business plan. Lenders want to know whenthey will have their loans repaid and assess the risk. You need to produce financial statementsthat accountants will endorse without question.Mistake 2: Over ambitious projectionsEveryone thinks their business will grow exponentially in the first 12 months but in reality this israrely the case. Your business plan must show a realistic path to profitability that proves youractual revenues and profits are comparable with your written plan.Mistake 3: Leaving something outEvery business plan follows a certain structure. Lenders and professional readers generally lookfor 3 or 4 aspects of your plan. You need to ensure you have these elements correctly written inthe right area of your business plan.Mistake 4: Incorrect formatYour readers do not expect a 100 page tomb nor a 1 page overview. Getting this fundamentalarea wrong will show your readers just how inexperienced you are.Mistake 5: Poor understanding of marketing Page 50
  51. 51. BUSINESS PROPOSALCommunicating your products to your prospects is a critical success factor for every businessowner. You need to show you understand your target customers, what their needs are, why theywill buy from you and how you will communicate with them.Mistake 6: An inability to sell your planHaving an accountant prepare your plan may save you a headache, but it is you who needs toexplain to your lender or investors every question they have about your plan. You need tounderstand everything that is written in your plan.How To Ensure You Dont Make Those Mistakes...Use This Hotel Business PlanYou can now complete your hotel business plan in the knowledge that you wont make any of themistakes above.You can download a fully completed hotel business plan right now and simply tailor it for yourown business.By using this already completed plan you...Save time and money because you can start your own plan right now based directly on anindustry standard and complete business planImmediately see the exact contents required in your own business planProperly present your plan in the exact format banks prefer and support for loan and overdraftapplicationsEasily prepare accountant endorsed financial forecasts and plans, and eliminate potential errorsLearn profit improving strategies from a plan specifically developed for a real hotel businessAccelerate your own plan completion by simply customizing this Microsoft Word professionalplan for your own business Page 51
  52. 52. BUSINESS PROPOSALStart your business plan immediately because you can access and download this plan online rightnow. 16) WORDS OF THANKSWe take the opportunity to pay hearty regards to Dr. D. K. GARG (Chairman), for lending ustheir kind support for completion of our assignment.We thank all those who directly or indirectly supported us morally, and through providingknowledge by which I could complete my business proposal. Page 52
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