Arindam Mukherjee

MBA/09/041

2nd year MBA

Business Plan Title

Positioning Arunachal Pradesh and Meghalaya as a Tourist destination

Introduction

Tourism has been a major social phenomenon of the societies all along. It is widely acknowledged that tourism is one of the world’s largest and fastest-growing industries. India a country with tremendous diversity has a lot to offer in terms of tourism and related activities. In other words heritage site, cultural attractions, beaches, health & wellness like yoga & ayurvedic, Indian cuisine provides for huge potential for the tourism sector in India. As the Travel and Tourism industry holds tremendous potential for India's economy it is included among the Core Sectors of the Indian Economy.

North-East India

Before Independence this entire area was known as Assam Province. Time to time seven different states have been separated from the same area. These are Arunachal Pradesh, Megahalaya, Tripura, Nagaland, Mizoram, Assam, and Manipur. The region is also known as the land of seven sisters and recently eighth state Sikkim was added into this. The North eastern state is very different in many ways from the other part of India. These States have the maximum number of Tribes living within. Many tribal languages are spoken throughout these eight states. The northeastern states have the highest percentage of Christians. Territory wise this region is the most sensitive region touching many countries like China, Tibet, Bhutan, Myanmar & Bangladesh. Permits to visit the states of Assam, Meghalaya & Tripura are no longer required. Permits to other states are to be obtained from the local office. The states are famous for their scenic beauty. The states also have many other tourists’ attractions like Kaziranga wild life sanctuary where one can see one horned Rhinoceros and the famous Tawang Gompa-most important Gompa in North.The region is known for its unique culture, handicrafts, martial arts, and scenic beauty. Problems include insurgency, unemployment, drug addiction, and lack of infrastructure. Since the beginning of the economic liberalization in the 1990s, studies have shown that this region is lagging behind the others in terms of development.

Arunachal Pradesh — Special Features

Arunachal Pradesh attracts tourists from many parts of the world. Tourist attractions include Tawang, a beautiful town famous for its Buddhist monastery, Ziro, famous for cultural festivals, the Namdapha tiger project in Changlang district and Sela lake near Bomdila with its bamboo bridges overhanging the river. Religious places of interest include Malinithan in Lekhabali, Rukhmininagar near Roing (the place where Rukmini, Lord Krishna's wife in Hindu mythology, is said to have lived), and Parshuram Kund in Lohit district (which is believed to be the lake where Parshuram washed away his sins). Rafting and trekking are common activities. A visitor's permit from the tourism department is required. Places like Tuting have wonderful, undiscovered scenic beauty.

Festivals

Arunachal Pradesh is home to at least 26 major and sub – tribes, each with its distinct tradition and customs. The majority of the population, that consists of tribes like Adi, Galo, Aka, Apatani, Nyishi, Tagins, Bori, Bokar etc. still continue with their ancient beliefs and indigenous practices of worshipping the sun and the moon . This religion is known as Donyi- Polo (which literally means sun and Moon).

Wildlife

The variation in altitude and climatic conditions account for four different types of forests whose natural shelter and food harbour a range of flora and fauna, some of which are found only in Arunachal Pradesh. It is the only state that can claim to have four major varieties of the big cats in its jungles- tiger, leopard, clouded leopard and snow leopard.More than 500 species of birds have been recorded, many of which are highly endangered and restricted to this state. Each district of Arunachal Pradesh has its own exclusive and rare variety of orchids. One of Asia’s largest Orchidarium is in Arunachal Pradesh, located at Tipi.

Flora and Fauna

Arunachal Pradesh is considered to be the "nature's treasure trove" and home to orchids, known for their exquisitely beautiful blooms, from one of the dominant taxa with more than six hundred species, occurring in varying elevations and climatic conditions throughout the state.

The state has a wonderful world of orchids that have adorned the forests making the state an "Orchid Paradise" of our country.

Entry Formalities

PAP (Protected Area Permit) for foreign Tourists:

Foreign Tourists in a group of 2 or more persons can obtain PAP for a period of 30 days from the Ministry of Home Affairs and Govt. of Arunachal Pradesh. Foreign Tourist visiting Arunachal Pradesh shall have to pay $ 50 per head as Royalty to the Government of Arunachal Pradesh and application for PAP are to be applied through local approved tour operators only.

Inner line Permit (ILP) for Domestic Tourists:

Visiting Arunachal Pradesh require ILP on an application in plain paper with particulars and on payment of Rs. 100/- per permit. The application is available from Resident Commissioner, Deputy Resident Commissioner of all North-East States of India.

Meghalaya — Special Features

Meghalaya has some of the thickest surviving forests in the country and therefore constitutes one of the most important ecotourism circuits in the country today. The Meghalayan subtropical forests support a vast variety of flora and fauna. Meghalaya has 2 National Parks and 3 Wildlife Sanctuaries.

Meghalaya also offers many adventure tourism opportunities in the form of mountaineering, rock climbing, trekking and hiking, water sports etc. The state offers several trekking routes some of which also afford and opportunity to encounter some rare animals such as the slow loris, assorted deer and bear.

Meghalaya has an estimated 500 natural limestone and sandstone caves spread over the entire state including most of the longest and deepest caves in the sub-continent. Krem Liat Prah is the longest cave and Synrang Pamiang is the deepest cave, both located in the Jaintia Hills. Cavers from United Kingdom, Germany, Austria, Ireland and the US have been visiting Meghalaya for over a decade exploring these caves. Not many of these have however been developed or promoted adequately for major tourist destinations.

Cherrapunjee is one of the most popular tourist spots in North East of India. It lies to the south of the capital Shillong. The town is very well known and needs little publicity. A rather scenic, 50 kilometer long road, connects Cherrapunjee with Shillong.

Meghalaya also has many natural and manmade lakes. The Umiam Lake (popularly known as Bara Pani meaning Big water) on the Guwahati-Shillong road is a major tourism attraction for tourist. Meghalaya has several parks; Thangkharang Park, the Eco-park, the Botanical Garden and Lady Hydari Park to name a few. Dawki, which is located at about 96 Kilometres from Shillong is the gateway to Bangladesh and affords a scenic view of some of the tallest mountain ranges in Meghalaya and the Bangladesh border lands.

Establishing the OpportunityWe will be setting up a Hotel and will have an in-house Tour Agency, which will supplement our hotel business. The Hotel will have fooding and lodging facilities and the Tour Agency will have transportation and sightseeing facilities.

Business : Hotel & Tour Operator

Basics for getting started

Location and Opportunity  

The location for the hotel is highly linked with the opportunity for growth. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, we may not be able to price the rooms low enough to encourage travelers to stay at the hotel, even if it is within walking distance of key attractions. 

Regulatory/Legal

When starting a business there are some basic regulatory requirements that are need to be followed, viz. registering the business name, obtaining a business license ,approvals for allotment of land, sanction of power.

Insurance

It is important to shop around to find an agent who specializes in small business and offers coverage appropriate to hotels in particular.

Financing Your Business

Small business financing can involve several types of financing. Examples are short-term debt, long-term debt and equity financing. As we will be working with considerable assets, dependable and experienced legal and accounting help is a must as we create deals with investors. 

Sourcing of Finance

For starting the business, we need to approach the sources from where we can fund our business. These sources can be from Banks (Nationalized & Private) and Financial Institutions (IFCI, IDBI).

Employee Hiring

We have to decide on how many employees will be necessary to run the hotel effectively and efficiently. Employees would be a mix of both Local and Experienced person of the related field. And we have to train them with a hospitable mindset.

Tie-ups

We need to make contact with tour bus operators and other tour-related businesses and establish relationships to get group rates to use their services.

Incentives and Refferals

To improvise on your sells target we may try to introduce incentives and referrals to prospective clients. We can give corporate discounts to target behemoth companies. The tour agency can also attract more people by giving group discounts and student discounts.

Promotion & Incentives

We will create a website for our hotel and will tie-up with online travel websites for our promotion. Also hand out fliers and brochures in our geographical area.

CASH FLOW DETAILS:-

Arunachal Pradesh (Tawang)

Expenses

Hotel:-

Cost of License : To start any hotel industry we should get some clearances from government to obtain licenses. Monthly license fee is Rs.5000 (approx).

Rent of building :For the Hotel and the Tour Operator office, we need to lease a suitable building because as per the existing law only a native can buy a land in there for domestic/commercial purpose.

Rent at Tawang Rs. 25000 – Rs.30000Floors 2+GRooms on each Floor 5Square foot of each room (15 x 12) sq ft = 180

sq. ft.Total Rooms with Bath room 13

Of the remaining 2 rooms,One will be for Tour Operator Office and the 2nd will be Reception Area.Room Division:At Ground Floor – 2 Bed AC rooms with TV: 3 nos.At 1st Floor – 2 Bed AC rooms with TV : 2 nos.;

2 Bed Non AC rooms with TV.: 2nos ; 2 Bed Non AC rooms without TV : 1 nos.

At 2nd Floor – 2 Bed Non AC rooms without TV : 5 nos.

Accessories :

For the business purpose, we need to buy Furnitures,Fittings & Fixtures,Lightining arrangements,Stationaries,Toiletaries etc.

ITEMS QUANTITY PRICE(rs)Beds 24 70,000Pillows & Bed sheets

24&24 9,000

Generator 1Toiletries Gross 20,000Air Conditioners 4 60,000Chairs & Tables 20 15,000TV-15inch 6 30,000Geysers 7 56,000Fans 15 15,000Lights 20 6,000Phones 15 4,500Miscellaneous Gross 10,000

TOTAL COST2,95,500

Employee Salaries.

Designation No. Of

Employees

Salaries/

monthMaintenance Staff ( Cook,Bell Boy,Kitchen Assistant)

5 15,000

Manager 1 8,000

Tour Operator:-

Vehicle Costs : Whenever there is need of a vehicle for tour purpose will contact the local Car agent for that and will keep a margin of Rs.500.

Employee Salaries .

Designation No. Of

Employees

Salaries

Manager 1 5000

Assistants (guides) 2 3000

Driver 1 4000

Income

Hotel:

Our hotel will be a budget hotel. Room tariff will range from Rs.500 (Non-AC ,2 Bed) to Rs.1200 (AC Delux,2 Bed).

Places to visit in and around Tawang :

Bap Teng Kang   Craft Centre   Geshila Peak  Gorichen Peak   Jaswant Garh   Manjushree Vidyapeeth  Nuranang Water Fall   Sela Peak   Tawang War Memorial  Thingbu Hot Spring   Tsachu Hot Spring  

It will be a 2 day tour : Rs.1200/head. ( Fooding Including)For group vacationers there will be discount.

Meghalaya [Tura (Garo Hills)]

Expenses:

Hotel:-

Cost of License : To start any hotel industry we should get some clearances from government to obtain licenses.

Rent of building :For the Hotel and the Tour Operator office, we need to lease a suitable building because as per the existing law only a native can buy a land in there for domestic/commercial purpose.

Rent at Tura Rs. 45000Floors 1+GRooms on each Floor 5Square foot of each room (15 x 12) sq ft = 180

sq. ft.Total Rooms with Bath room 8

Of the remaining 2 rooms,One will be for Tour Operator Office and the 2nd will be Reception Area.Room Division:At Ground Floor – 2 Bed AC rooms with TV: 3 nos.At 1st Floor – 2 Bed AC rooms with TV : 2 nos.;

2 Bed Non AC rooms with TV.: 2nos ; 2 Bed Non AC rooms without TV : 1 nos.

Accessories :For the business purpose, we need to buy Furnitures,Fittings & Fixtures,Lightining arrangements,Stationaries,Toiletaries etc.

ITEMS QUANTITY PRICE(rs)Beds 16 48,000Pillows & Bed sheets

16&16 6,000

Generator 1Toiletries Gross 15,000Air Conditioners 4 60,000Chairs & Tables 20 15,000TV-15inch 7 35,000Geysers 7 56,000Fans 16 16,000Lights 20 6,000Phones 15 4,500Miscellaneous Gross 10,000

TOTAL COST2,71,500

Employee Salaries :

Designation No. Of

Employees

Salaries/

monthMaintenance Staff ( Cook,Bell Boy,Kitchen Assistant)

5 15,000

Manager 1 8,000

Tour Operator:-

Vehicle Costs : Whenever there is need of a vehicle for tour purpose will contact the local Car agent for that and will keep a margin of Rs.500.

Employee Salaries:

Designation No. Of

Employees

Salaries

Manager 1 5000

Assistants (guides) 2 3000

Driver 1 4000

Hotel: Our hotel will be a budget hotel. Room tariff will range from Rs.500 (Non-AC ,2 Bed) to Rs.2000 (AC Delux,2 Bed)

Places to visit in and around Tura

Tura Peak Nokrek Biosphere ChibagrePelga Falls Rongbang Dare Sasatgre VillageRangapani  

  

It will be a 2 day tour : Rs.1500/head.( Fooding Including)