Dominican Republic Motorcoach ResortsBusiness Plan Overview

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Introduction

It is in our nature to explore. And the Dominican Republic is the perfect place to explore. However, because the DR is such a large country, it is now difficult to explore it in a convenient way. Although helicopters and airplanes are available, they are not cost effective. And, since we want to explore all of our options before buying or investing in real estate, the idea of Motorcoach Resorts is being considered.

Why are there NO motorcoaches in the Dominican Republic?

Is it because of:1. Bad Roads2. No Place to Park Them3. No Motorcoach Resorts4. No Maintenance Facilities5. No Motorcoach Dealerships6. Zoning Regulations7. Safety & Security

Dominican Republic Motorcoach Resorts

Well… Things have changed!

The eastern part of the Dominican Republic now has world-class roads that connect three (3) International Airports and provide access to miles and miles of beaches and potential Motorcoach Resorts.

And millions of tourists are looking to explore the Dominican Republic.

Purpose & GoalsOverall Purpose:

• Promote Tourism in the DR• Support Local Economies• “Show Off” Existing Resorts• Build New Motorcoach Resorts• Promote Marketing Tours • Increase Sales and Rentals• Build a World Class Legacy

No other country has such great weather all year-round -- and has hundreds of miles of oceans and mountains to explore.

New Road - South from Miches

Symbol Legend(on following page)

Motorcoach ResortCountry Plan View

Miches

DR-RV Map OverviewSymbols on map:

International Airport

Reception Centers

Deluxe Motorcoach Resort

Maintenance Facility

DR-RV Reception Centers will be within 30 minutes of an International Airport. Each will have amenities for overnight stays and minor maintenance.

Deluxe Motorhome Parks will be within 2-hour drive and can be rented by the night or by the season. Lot ownership is also a possibility.

Major Maintenance Facility to be at main reception center in Santo Domingo. Maintenance shuttle service available.

Plan Overview

This Business Plan Overview relates to the following Operational Parts to be described on the following pages:

1. Motorcoach Purchase Program

2. Motorcoach Resorts

3. Motorcoach Rental Program

4. Reception Centers

5. Maintenance Program

6. Motorcoach Lot Sales

Base Price +Options

(LIsted to Left)

Option 1- Individual Ownership

Each Motorcoach owned individually. Prices to range from US$200,000 to $1 Million. The entire fleet purchased in USA, then shipped to the DR at an estimated cost of $8,000 per unit.

The initial purchase will consist of 20 units -- and all 20 will be “pre-sold” before any bulk purchases are made. The pre-sales can be all-cash or purchased with individual financing.

Motorcoach Purchase ProgramOption 2 – Corporate Ownership

All units to be owned by corporation and stock in the company can be purchased individually. All 20 units will be the same make and design to allow for consistency of use and efficiency in maintenance.

Shares in the company can be sold to another individual and all rights in use of the Motorcoach will belong to the new stockholder. Tax benefits of both options above will be explored.

Motorcoach Resort DevelopmentRather than start from scratch and build new Motorcoach Resorts, the plan is to first form strategic alliances with existing resorts to create a resort within a resort.

Thus, we would encourage existing resorts to use a vacant section of their resort -- and have a separate entrance dedicated for Motorcoach use. The sites would be available on a rental basis, and as such, include an amount that would provide access to various sections of the main resort.

Resort Motorcoach Partners

• Metro Country Club – Juan Dolio• Casa de Campo – La Romana• Cap Cana – Punta Cana• Puntacana Resort & Club• Bavaro

Once the popularity of the lifestyle increases -- and the quantity of the Motorcoach inventory increases – we anticipate that private, independent Motorcoach Resorts will begin to be developed. (See example following.)

Motorcoach Resort - Resort AmenitiesResort Amenities will vary from resort to resort around the Dominican Republic. In most cases, the resort will be ocean-front, or have an ocean view. There will be beach access where possible. Other amenities, may include:

● Resort Clubhouse● Resort Swimming Pool● Bath House with Laundry Facilities● Area Wi-Fi● 24-Hour Security● Black Tank Relief and Wash Areas

Some resorts will have mini-markets that have bottled water and basic food items. Resort areas will also be strategically located so that a “Chase Unit” will be with a 2-hour drive for maintenance needs.

Motorcoach Resort - Site Amenities

Site Amenities will also vary from resort to resort. In most cases, sites will have concrete pads under the Motorcoach and grass and landscaping around the pads for relaxing and having BBQ dinners.

Other amenities, may include:

● Electric Hookup● Water Hookup (not for drinking)● Area Wi-Fi● 24-Hour Security

Some sites will have electric meters to monitor electric usage. In addition, some sites will have cable TV hookups. Otherwise, on-board satellite dishes will be used for TV and movie-watching. Some sites will have trash containers and others will have centrally located resort trash containers.

Low Season(May+Sep-Nov)

Mid Season(Jun-Aug)

High Season(Dec-Apr)

Daily Weekly Monthly Daily Weekly Monthly Daily Weekly Monthly

Standard $40 $150 $650 $45 $275 $920 $52 $361 $1,156

Deluxe

Deposit $40 $100 $250 $45 $100 $500 $52 $100 $500

2015-16 – Resort “Site” Rate Sheet

Each Motor Coach Resort (or Resort within a Resort) will have its own “Site” Rate Sheet. There may also be extra charges for “Daily Passes” to certain areas within the main resort. Other venues, like golf, tennis, boating, and equestrian centers may be available for standard daily rates charged to normal resort guests. There may also be extra charges for taxis, golf carts, and bicycles used to explore or go shopping. All restaurants should be available at normal menu rates. Some resorts will have bath and shower facilities within the Motorcoach Resort site. Others may require showers aboard the coach. Along the same lines, not all resorts will have black water discharge areas.

*As a side note to land owners and resort managers, a resort with 100 “Coach Sites” could generate $5,000 a day in gross site rental income, which is equivalent to $150,000 a month.

Motorcoach Rental Program

_____________________________

Conversely, there will be a rental contract with rental management to rent out the Motorcoach during times specified by the owner.

Rental commission rates will vary from 30% to 50% of rental income received, depending on what services are included in the rental services. This may include all cleaning and routine maintenance like oil changes, etc.

Owning a Luxury Motorcoach will be much like owning a condominium held for part-time residence and rental income when not in residence. Depending on the rental program chosen, there is no restriction on personal usage. Nor, will there be any pooling of rental income with other owners.

Low Season(May+Sep-Nov)

Mid Season(Jun-Aug)

High Season(Dec-Apr)

Daily Weekly Daily Weekly Daily Weekly

Standard $325 $2,200 $350 $2,400 $375 $2,600

Deluxe $475 $3,300 $500 $3,400 $525 $3,600

Deposit $475 $500 $500 $750 $525 $1,000

2015-16 – “Motorcoach” Rate SheetWhy Rent a Luxury Motorcoach?

There are almost as many reasons to rent a Motorcoach as there are places to explore! Whether for personal or business use, RVs are designed to be self-sufficient and self-contained, which makes them ideal when traveling to even the most remote of destinations.

Yacht Charter ComparisonYacht Charters in the Dominican Republic hasn’t been successful as other Caribbean islands because of the strong trade winds and intermittent rough waters on various sides of the island. However, Motorcoach exploring of the island is a great alternative.

Many Motorcoach Resorts will have beach access and other amenities that sailboat cruisers enjoy. In addition, exploring the interior of the island is not readily available to boaters. The sailboat to the right is an example of a yacht charter. The rate:

$4,400/week - $625/Day (+mooring)

Motorcoach Rental Requirements• Reservations - must be made in advance and accompanied by a $500 deposit. To

make a reservation, go to our reservation page for more information.• Renters and drivers must be 25 years old.• Insurance: must be verified or purchased 24 hours before rental pickup. Renters must

provide a binder from personal insurance company or purchase commercial insurance.• Payment: for all rentals is required before the motorhome is released. This includes

any extra charges such as mileage or kit rental. To determine this amount, please contact us and we will send you a complete estimate and your rental requirements.

• Picking up your rental: You will need 60 to 90 minutes to check out on the first day of rental. This allows a full orientation of all aspects of the coach you have selected.

• Returning your rental: We will need time to check your motor home back in, so allow 30 minutes or longer. After we have completely checked in the coach, we will re-calculate your charges to account for mileage usage and generator usage and mail you your deposit refund.

• Rental Deposits: are required for all rentals. The minimum deposit is $1,000 and the maximum is $2,000.

Motorcoach AccessoriesSome Motorcoaches come fully equipped. It is also possible to have a Motorcoach fully stocked with food, water, snacks, and refreshments. Your rental consultant will assist you with all details on accessories.

Optional

Bedding & Towels $65

Kitchen Package for 4 $50

Expendables $25

(4) Bike Rack $75

(2) Bike Rack $50

Satellite $100

GPS Navigation $75

Generator per Hour $5

Unlimited Generator $50

Car Seat $50

Sanitation $25

Motorcoach Reception CentersAll Motorcoach Reception Centers will be located within 30 minutes of an International Airport. These location are primarily for pickup and drop-off of all coaches. Although they will be designed for overnight stay, they may not necessarily have all the amenities planned for a full Motorcoach Resort.

Most likely, most owners and renters will be anxious to “hit the road” and head for their favorite resorts with full amenity packages.

Motorcoach MaintenanceWhen in the “Rental Program”, DR-MC will take care of all basic maintenance:

● Oil & Filter Changes● Tire Rotation & Pressure Check● Interior & Exterior Cleaning● Roof Maintenance● Battery Tending / Replacement● Bearing Packing● Preparing inside and outside of

vehicle before each rental

Other maintenance to be out-sourced to an independent maintenance firm.

Motorcoach Lot Sales

Sample Lot SalesFlorida

Although “Renting Sites” is always an option, Motorcoach Resort “Site” Sales are available, and can vary from resort to resort. Variables depend on: Ocean Frontage; Ocean View; Beach Access; Proximity to

Amenities; Resort Amenities like Clubhouse, Swimming Pool, Tennis Courts, Boat Storage & Access, etc.

When fully developed, an Motorcoach Resort Site can sell for up to $1,000 per m2.

Potential Road-BlocksAlthough this concept may create new opportunities, there may be obstacles in the DR:

● High Import (Duty) Fees● Burdensome Taxation● Motorcoach Classification● Union Objections (Sabotage)● Lack of Government Support● Perception as Being “Un-Safe”

So, we can only hope that the positive side of this idea will take hold, and positive results seen for both tourism and the economy.

Final Thoughts (More in Appendix)

In some parts of the world, “RV-Parks” are looked down upon as a “Blight” to the area. On the other hand, there is almost a “Cult” following of the lifestyle, and consequently, a tremendous growth in high-end Motorcoach owners and travelers.

As a precaution to any blight possibilities, the Motorcoach Resorts we have in mind for the Dominican Republic will require a “Class C” coach classification or above to enter any resort. And again, the price of these coaches ranges between $200,000 and $1 Million USD. Therefore, we consider these owners and travelers to be high-end visitors who have the financial capacity to both invest in and support the local DR economies.

According to the Largest RV Club in the Southern Hemisphere (in Australia)

● 500,000 RVs are estimated to be registered in Australia

● Approximately 120,000 RVs will be manufactured over the next five years,

● Over 20 000 RVs have been manufactured each year since 2010

● On current trends, RV travellers will increase by more than 60% over the next 10 years

● There were 9.2 million caravanning, camping and motorhome trips in 2012, representing a 5.3 % growth over 2011

APPENDIX - CAMPERVAN - MOTORHOME CLUB OF AUSTRALIA - 2013 “Snapshot” (Largest RV Club in the Southern Hemisphere)

Rapid and Continuing Market Growth

● 500,000 RVs are estimated to be registered in Australia.● Approximately 120,000 RVs will be manufactured over the next five years,● Over 20 000 RVs have been manufactured each year since 2010.● On current trends, RV travellers will increase by more than 60% over the next 10 years.● There were 9.2 million caravanning, camping and motorhome trips in 2012, representing a 5.3 % growth over 2011.

Significant Economic Value

● The market is worth $6.5 billion a year to the Australian economy.● They are the biggest spending travellers in the domestic tourism market and spend on average $500 to $900 per week.

Environmental and Social Benefits

● New vehicles are increasingly low impact and self-contained and will dominate over the next five years.● The market continues to participate in various volunteer community projects and seasonal and short term work.● RV Traveller Profile Currently dominated by Grey Nomads born during or before World War II, but will be dominated by the

baby boomers within the next 5 years.● There is a major trend towards fully self-contained vehicles.● Their most preferred activities include visiting markets, heritage sites and museums, going bushwalking, visiting National

Parks and undertaking full or half day tours.● 34% stay only in caravan parks, 16% stay only in non-commercial accommodation.

Appendix - Page 2

Environmental and Social Benefits (cont.)● 50% use a mix of non-commercial and caravan park accommodation and these are the largest spending segment.● Convenient and desirable accommodation is a primary motivator for length of stay and level of spend - 77% are prepared to

pay up to $10 to access a non-commercial accommodation.● 73% consider it important to actively support RV Friendly Towns.● RV travellers spend patterns are more like residents in that they spend directly into the community, mainly on day-to-day

needs, purchasing tourism services and products as it suits.

The Motorhome Industry is Making a Significant Contribution to the Australian Economy.

● The industry is the fastest growing domestic tourism sector in Australia and has been for the past 15 years● The industry is worth $6.5 billion nationally and currently provides for 620,000 holidays per annum● Caravan and Holiday Parks:

○ annual Income grew from 848 million in 2006 to 1.135 billion in 2010● RV Manufacturing:

○ Doubled in Australia over the past 10 years to 22,083, and it is projected a further 110,000 vehicles will be manufactured over the next five years.

○ The demand for new caravans, campervan, motorhomes and camper trailers is extraordinary. For many manufacturers, there is up to a six month waiting time to fulfil orders.

○ Baby Boomers in particular are spending-up on expensive rigs. A 4WD and a self contained caravan represents a potential capital investment of between $100,000 and $150,000. Motorhomes range from $80,000 to $600,000.

Appendix - Page 3

Visitors Utilising Caravan and Camping Accommodation are Making a Significant Contribution to Domestic Tourism.

● In 2011, visitors using commercial/non commercial camping and caravan accommodation accounted for about 10% of all visitor nights in Australia.

● Most (91%) were domestic travellers and 21% of these nights were spent in QLD.● In total they contributed approximately $7 billion dollars to the Australian economy.

Seniors are Strongly Represented and their Numbers are Growing.

● In 2011, 25% of domestic camping and caravan visitors were seniors over 55 years of age.● These travellers are likely to spend more nights in regional Australia than other age groups and more visitor nights in

general on a trip.● Rosemary Leonard, from the University of Western Sydney, said travelling retirees had become an essential source of

revenue for Outback towns.● CCIA state that in 2010, 63% of caravan and motorhome buyers were aged 55 years or older.● The over 65 age group in Australia is likely to increase to 4 million by 2022.● The contribution to tourism will increase as the baby boomer generation begins retiring.● The largest growth in domestic caravan and camping visitors is the over 60 age group, which has been growing at an

average of six per cent annually since 2000.

Appendix - Page 4

The Number of Tourists Using RVs is Growing

RV tourists are defined as: tourists travelling in their own accommodation: a motorhome, campervan or slide-on (2WD or 4WD), or in a vehicle towing their accommodation being a caravan, 5th wheeler or camper trailer.

● CCIA state that the majority of international visitors travel in hired campervans or motorhomes.● It is estimated that there are around 70,000 and 80,000 caravanners travelling on an extended tour around Australia at any

one time.● RV registrations:

○ There are currently more than 500,000 motorised and non-motorised RVs registered in Australia with this number projected to increase by approximately 20% over the next five years.

○ Campervan vehicle registrations across Australia increased by 23% over the 5 years to 2011, which is significantly higher than the national average of 14.5% for all motor vehicles.

● CMCA membership:○ Has more than doubled over the past 10 years.○ Is currently over 65,000 members.

Appendix - Page 5

RV Tourists Generate Significant Economic Benefits.

● The market is worth $6.5 billion a year to the Australian economy.● They are the biggest spending travellers in the domestic tourism market and spend on average $500 to $900 per week

and between $13,000 and $22,000 per vehicle, per trip.● Grey nomads comprise up to 70% of the tourism market in some Queensland LGA.● They travel for an average of 156 days.● A growing number (currently 14%) is travelling on a permanent or semi-permanent basis on trips that extend beyond 12

months.

RV Tourists also Generate Community and Environmental Benefits

● A high proportion of Grey Nomads are willing and able to contribute to voluntary or paid work opportunities in the regional communities they visit.

● In particular the successful Grey Nomad Project, an initiative of Volunteering Australia, the CMCA and the Barcaldine Regional Council has resulted in a great many completed projects of benefit to the Barcaldine community.

● Nearly all current RV models are highly self-contained facilitating a minimal environmental impact.