feasibility on backpackers' lodge.docx

7/26/2019 Feasibility on Backpackers' Lodge.docx

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A FEASIBILITY STUDY ON

BACKPACKERS LODGING

HOUSE BUSINESS

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CHAPTER I: INTRODUCTION

INTRODUCTION

Backpacking is a form of low-cost, independent international travel. It includes

using a backpack or any easy-to-carry luggages for long distance-travelling in a

longer period of time. People who engage in this kind of travelling usually called

as backpackers.

Backpackers are typically associated with young people and catered mostly by

foreign nationals. Most of them are typically conscious with price due to the

length of time they travel from one country to another.

Backpacking, for most youth, is considered as an education instead of a

vacation. In some countries, the youth considered it as their rite of passage.

Some have their backpacking trips during their gap year or before they join

the workforce.

Backpacking as a lifestyle and as a business has grown considerably in the

2000s as a result of low-cost airlines and cheaper accommodations in many

parts of the world but not in all countries especially in Philippines.

Philippines is not yet ready for backpackers which result to bad experiences for

those who tried backpacking in the country. Only few hostels for backpackers

are still few and because of that, backpackers flock to expensive lodging

houses.

With proper management and cheaper rates offered, running a backpackers

lodging house can be a good business. Running such business can give a

favorable return of capital or investment. Aside from that, running a lodging

house can help the backpackers experienced a wonderful time without

worrying their budget for the entire trip.

A.STATEMENT OF THE PROBLEM

In this regard, the main essence of this study is to establish a backpackers

lodging house that offer a cheaper accommodation for those who will engage in

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backpacking. To determine the worthwhile of the study, it will seek to answer

the following aspects:

Marketing Aspect

Who will benefit on the proposed backpackers lodging house?

What method should the business ratify in order to introduce and compete

with the other existing backpackers lodging house businesses?

Management Aspect

How would the business be managed successfully and maintain it?

Technical Aspect

How the business can practically put into effect?

Financial Aspect

How can the business earn profit and underrate its cost?

B.OBJECTIVE OF THE FEASIBILTY STUDY

To be able to identify the effectiveness of the proposed business in the market.

To be able to formulate the most effective management techniques in operating

a business.

To find out how the business be practically put into effect.

To be able to find effective strategies of increasing the profit of the business

while underrating the cost.

C.SIGNIFICANCE OF THE FEASIBILITY STUDY

It is a challenge at the same time a great risk to put up a business. Many

factors should be considered before making a final decision. This study would

be a great help to people especially to those who are interested to have a

backpackers lodging house business. The research would allow those

interested to see the risks and benefits of such business. This would also help

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and support the backpackers to find a place that is cheaper yet secured and

clean.

D.METHODOLOGY

The research methodology to be used in conducting this project study is the

descriptive method of research which helps the researcher since this type of

research method concerned with the description of data and characteristics

about the population that provides an accurate portrayal of the characteristics

of a particular individual, situation or a group in a current trend of the

operation.

Sources of Data

The primary source of data for this study is through distribution and

conduction of questionnaires and interview from possible travelers who are

interested in backpack traveling.

The other sources of data to be used in this study are books, other related

research papers and studies and through the internet.

E.SCOPE AND DELIMITATION OF THE FEASIBILITY STUDY

This study tends to establish a backpackers lodging house in#45 Pamaong

Ext St. Brgy Cogon, Tagbilaran City, Bohol.

This study will cover the future market which are the foreign and domestic

travellers who will visit Bohol. According to the Philippine Statistics Authority

in the report about the Distribution of Regional Travellers in the Philippines,

2002, there are 17,243 foreign travellers and 75,396 domestic travellers who

visited Bohol during that year.

Kindly see link for the data

http://www.nscb.gov.ph/stats/ptsa/statistics/stat_travellers.asp

Though backpacking is not still popular in the Philippines especially in Bohol

but it can be the next backpacking capital in few years. With lots of varied

attractions like beaches, mountain trekking, world-class diving sites, friendly

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http://www.nscb.gov.ph/stats/ptsa/statistics/stat_travellers.asphttp://www.nscb.gov.ph/stats/ptsa/statistics/stat_travellers.asp


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locals, stunning tropical islands and a unique mix of Asian, Spanish colonial

and US influences, Philippines has its cutting-edge to be the next backpacking

destination.

With the regards to Bohol, as the proposed location site, Bohol is an idyllic

place where lots of tourist spots to visit. As of this moment, Bohol is a tourist

and business destination and lots of foreigners and also local tourist kept on

coming back to this island because of major tourist attractions.

F.REVIEW OF RELATED LITERATURE

The proponent made a review from a certain essay entitled Advantages andDisadvantages of Backpacker Tourism-Tourism Essay from UKEssays. The

essay has provided important information about the nature of backpacking and

how it will benefit the host community locally and globally.

Though backpackers travel only on tight budgets but the list is long when we

count on the advantages they will provide to the community. Backpacker

tourism has effects on destinations reached ranging economic, environmental,

technological, socio cultural and political benefits.

When backpacker tourists stop in certain destinations, they tend to share their

experience and knowledge about new technologies to the locals which can be a

bid advantage to them. Through interacting with the people, they acquire new

relationships in the course of their travel. Some may even result to marriages.

Most often, backpackers come from developed worlds and by exposing to the

places they visit they can help by giving information and can provide activitism

that channel toward change and even influenced developed countries to share

their expertise to the locals.

Backpacker tourism can also influence progress to the host countries and

communities even to the grassroot levels. Backpackers usually stay at cheap

places and eat and purchase things in establishments that are run locally.

They also provide destination areas with foreign exchange earnings. Thus,

backpacker tourism can aide host communities in their economic growth.

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In conclusion, backpacker tourism and other forms should be encouraged

because however minimal one type of tourism benefits the destination areas if

put together they form a compact advantage moreso to the economic well being

of that place.

G.DEFINITION OF TERMS

1.Backpacking - means traveling on a budget, usually for longer distances,

seeing many different countries and for a longer time than normal holiday

travelers.

2.Backpackers- someone who backpacks.

3.Lodging House a rooming house.4.Guests a person who pays for the services of an establishment (as a hotel

or restaurant).

5.Traveler a person who is traveling or who often travels.

6.Reservation an arrangement to have something (as a hotel room) held for

ones use; also: a promise, guarantee, or record of such engagement.

7.Check Out settle ones hotel bill before leaving.

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CHAPTER II: MARKETING ASPECT

A.Industry Profile

The proposed project will be introduced with a business name named Collective

Progress Multi-Purpose Cooperative (CPMPC) Backpackers Lodging House. The

business name is based on the purpose of the business to provide a cheaper

and comfortable accommodation for all backpackers who would like to visit

Bohol.

B.Demand Analysis

Table 1

Demand Analysis

TARGET MARKET POPULATION SIZE PERCENTAGE OVER

THE TOTAL

POPULATION SIZE

Respondents 20 100%TOTAL 20 100%

50%

30%

15%5%

Age Group

18 to 24 yrs25 to 34 yrs

35 to 44 yrs

45 yrs +

The target market will be 18 to 34-year-old living on a budget, out of a

backpack and international travelers. Although there will be competition

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among the hotels, resorts, etc. , however, considering the data provided by

Philippine Statistics Authority, large amount of travelers are flocking to Bohol

yearly. Twenty (20) backpackers are interviewed for the study.

C.Estimation of Present Demand

75%

25%

Target Market

Willing to go backpacking inBohol

Prefers another torist

!estination

Based on the interviews and questions conducted by the proponent, the

summary of the present demand arrived as shown on the Table 2. A total of 15

out of 20 respondents or 75% of the total population size are willing to visit

Bohol as their next backpacking destination site. Five of the respondents or

25% of the population size are not interested and prefers to go to another

tourist destination site.

D. Projection of Future Demand

Table 3: Future Demand

MARKET PRESENT

DEMAND

(year 1)

ESTIMATED

INCREASE

(year 2)

ESTIMATED

INCREASE

(year 3)

PERCENTAGE

OF

ESTIMATED

INCREASE

PROJECTED

DEMAND

(year 1

+year 2 +

year 3)Backpac

kers

15 60 240 400% 315

TOTAL 15 60 240 400% 315

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There is at least a 400% increase of incoming backpackers who will have their

backpacking journey in Bohol.

E.Supply Analysis

There are many places to stay in Bohol. There are eleven (11) hotels, two (2)hostels, one (1) resort, four (4) inns and five (5) bed and breakfasts places near

and around the city.

F.Marketing Plan

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PRICING

Average room rate of hotels around Tagbilaran is around P 950.00 per room. To

be competitive with the neighbors beds, our dorm beds have to be priced

around $ 10 which is around P 400.00 if converted into peso with a rate of P

40.00 per dollar. Current room rates for the hotels, resorts, etc are below:

Table 4: Room Rates in Bohol

Hotels, Resorts and Houses in Bohol Rates

Villa del Sol Pension House P 446 1,828Marbella Leisure Hostel 350-990 (P350 extra bed/person)

Chriscent Ville Hotel 650- 1,650

Wregent Plaza Hotel 250-1, 400 (P250 extra

bed/person)

Bohol La Roca Hotel 982 1, 161

Tavers Pension House 920 - 1, 550

Casa Rey Francis Pension House 750 1, 800

Le Pensione de San Jose 700 1, 500

Soledad Suites 2,000 - 3, 200Buen Bella Pension House 800 - 1, 300

Dao Diamond Hotel 1,400 4, 500

Esta Villa Residencia 900 1, 800

Bohol Tropics Resort 750 5,350 ( P750 extra

bed/person

Vest Pension House 1,200 2, 400

Water Paradise Resort 1,500 3,500

Darunday Manor Pension House 1,300 1,400

Sun Avenue Tourist Inn and Cafe 795 2,950

Villa Alzhun 950 2,650

Panda Tea Garden Suites 1,250 2,750

Mellow Apartelle and Tourist Inn 600 1,300

Metro Centre Hotel 1,400 7,950

Ocean Suites Bohol Boutique Hotel 2,500

Arabelle Suites 1,250

Advertising

The lodging house plans to use an effective low cost advertising approach

though backpacker forums, free web building software and as well as word of

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mouth through large backpacking networks. The advertising will be phased in

advance of the building to help with search engine optimization and increase

visibility in general.Membership to International Youth Hostel Federation can

help in introducing the lodging house to this youth international group. Listing

with hostels.com, hostel.world.com and other sites that supports backpackers

will increase visibility and make booking as easy as possible.

The lodging house will be marketed towards a younger crowd. Drinking and

smoking will not be condoned and promoted.

The idea of having a larger space and property will allow people to hang out on

the property without being confined to the dorms or lounge areas and have to

spend money or energy adventuring around all the time. Having the property

that allows for greater freedom should help differentiate the lodging house to

other venues.

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CHAPTER III: TECHNICAL STUDY

A.Description of Operation and Process

The lodging house will have nine (9) double decks which will accommodate

eighteen (18) travelers. There will be four rooms in the house. The guest will be

charged $10 US dollars per day or in the equivalent of P 400.00 per day.

Payments can be made thru cash, credit cards, online payments or bank

deposits.

Reservations can be made through telephone calls and through websites where

the lodging house is registered. Walk-in guest can be entertained if there is an

available room for them.

Checking out will be made every twelve oclock in the afternoon. Keys from the

room will be surrendered upon checking out. Linen will be washed on every

bed after the guest leaves.

The house will have showers and CRs for male and female guests for their

privacy. Travelers can give their important documents to the receptionist for

safe keeping.

Aside from providing rooms for the guests, the house will provide free water for

the travelers.Guests will have free beddings and internet access. Laundry

service can be accommodated for the guests.

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Guests are not encouraged to eat inside the dormitories or rooms. Dining areas

are provided for the guest for them to eat their meals. Spaces for verandas and

small living areas for the travelers to mingle or to get acquainted with each

other are provided. Silence is required inside the dormitory to keep a peaceful

atmosphere and allow the travelers to have a restful sleep.

B.Project Location

The proposed location of the project would be at#45 Pamaong Ext St. Brgy

Cogon, Tagbilaran City, Bohol. It is located in a residential area and generally

quiet and can be accessed by a taxi or a tricycle. It is also five (5) minutes away

from the airport and three (3) minutes away from wharf/pier. All shops are just

a tricycle ride away.

C.Project Equipments, Furnitures & Fixtures

Every business cannot operate without equipments, furnitures and fixtures in

the workplace. The proposed equipments, furnitures and fixtures to be

acquired before the project is implemented are the following: one (1) set of

computer, one (1) telephone with internet access, one(1) printer with scanner

and a calculator.

These equipments will be used by the employees of the business to ensure the

smooth operation of the business. The proponent suggested having one set of

computer for the lodging house in-charge and the receptionist/cashier. The

printer would also be used by the office. The business must have at least one

(1) unit of telephone for the queries of the prospective clients and for other

business related concerns. One (1) printer with scanner will be used for

scanning important documents and printing vouchers and forms. And of

course, calculators to be used for computation of interest and other related

financial matters.

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CHAPTER IV: ORGANIZATIONS AND MANAGEMENT ASPECTS

A.Collective Progress MPC (CPMPC) Backpackers Lodging House Business

- Organizational Structure

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B.Personnel Component

The business will employ four (4) persons in the business, the lodging house-

in-charge, receptionist/cashier and two (2) helpers. Duties and responsibilities

of each personnel are stated below:

Lodging House In-Charge

- Supervises and coordinates activities of workers in the Lodging house

engaged in the lodging accommodation of the guests and cooking and

serving meals.

- Advertises lodging house.

- Supervises helpers engaged in such task as cleaning rooms and comfort

rooms, issuing linens and laundry task.

- Purchase supplies.

- Inspecting rooms to make sure that standard have been met.- Coordinates with the receptionist/cashier and check the financial

reports.

- Resolves complaints regarding food, accommodations, or service

Receptionist/Cashier

" Maintains records of financial transactions.

" Prepares financial reports.

" Coordinates with the Lodging house in-charge.

" Deals with bookings by phone, e-mail, letter, fax or face-to-face.

" Completing procedures when guests arrive and leave.

" Choosing rooms and handing out keys.

" Preparing bills and taking payments.

"Taking and passing on messages to guests." Dealing with special requests from guests (like booking theatre tickets or

storing valuable items).

"Answering questions about what the hotel offers and the surrounding

area.

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" Dealing with complaints or problems.

"Accept payments from walk-in guests.

Helper 1

" In-charge of changing and laundering the beddings, pillow sheets and

curtains.

"Vacuuming the rugs and carpets and cleaning the bathrooms/CRs.

"Take care of laundry and dry cleaning when requested by hostel guests.

" In-charge of checking and requesting for supplies.

" Cook and serve breakfast for the guest.

" Coordinates with the Lodging house in-charge.

Helper 2

" Do the manual work especially in repairing leaks or minor repairs in

furniture, carrying heavy objects.

" In-charge in the outside house which includes gardening and maintaining a

well-trimmed lawn."Will help in cleaning and assist Helper 1.

" Coordinate with the Lodging house in-charge.

C.Profiles and Qualifications

Lodging House In-Charge

Graduate of any business related course

Not more than 45 years of age

With 2-3 years experience in managing lodging houses or any related

field

Must be good in spoken and written English

Must be computer literate

Receptionist/Cashier

Graduate of Hotel and Restaurant Management or any related course

College level is welcome to apply

Can speak and understand English well

Strong customer service skills

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Must be computer literate

Must be patient, tact, honest and diligent

Has the initiative

Accuracy and attention to detail

Good problem solving skills

Helper 1

High school level is welcome

Working experience in housekeeping

Diligent and honest

Preferably with customer service attitude.

Helper 2

With High School diploma

Knowledge in minor repairs to building and furnishing

Responsible and honest

Ability to read and comprehend simple instructions, short

correspondence and memos

CHAPTER V: FINANCIAL ASPECTS

A.Capital Contribution

The study shows that in order to establish a backpackers lodging house

business, the project must have at least P 299,647.00 capital. The capital will

be taken from the cooperative.

B.Basic Assumption

The proponent will assume a slow flow of incoming occupants during the first

six months but will increase for the next succeeding months and years.

For the purpose of preparing Financial Statements the proponent will assume

that the project will start its first year of operation on the first day of January

2015. Other related matters will be based on the current trend such as utilities

(electricity & water expenses).

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Jan Feb March April May June July Aug Sept Oct Nov Dec

No. of Bed

Occupants

(Bed X 30

days)

150 150 210 300 360 450 540 540 540 540 540 540

# of

Occupants

5 5 7 10 12 15 18 18 18 18 18 18


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Table 5: Projected No. of Occupants for Year 1

Table 6 : Projected No. of Occupants for Year 2

Table 7 : Projected No. of Occupants for Year 3

Table 8: Projected No. of Occupants for Three Years

Year 1 Year 2 Year 3

No. of Occupants 4,860 6,480 6,480

Table 9: Operational Costs Drivers

Taxes Cost

Permits, Licenses P 10,000.00

Others

Salary P 6,000.00

Beddings & Others 37,479.00

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No. of Bed

Occupants

(Bed X 30

days)

540 540 540 540 540 540 540 540 540 540 540 540

# of

Occupants

18 18 18 18 18 18 18 18 18 18 18 18


No. of Bed

Occupants

(Bed X 30

days)

540 540 540 540 540 540 540 540 540 540 540 540

# of

Occupants

18 18 18 18 18 18 18 18 18 18 18 18


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Lockers 15,000.00

Office Equipment 44,050.00

Appliances 128,558.00

Gas with Regulator 1,300.00

Sala Set 10,000.00

Rental Fee 9,000.00

Utilities 11,000.00

Guest Toiletries 42.00*guests*

Table 10: Start Up Cost

Startup Cost

Permits and Licenses P 10,000.00

Table 11: Office Equipment

Office Equipment No. of

Equipment

Cost Total

Computer 1 P 15,000.00 P 15,000.00

Printer plus scanner 1 P 15,000.00 15,000.00

Calculator 1 250.00 250.00

Plastic chairs and tables 1 7,800.00 7,800.00

Total Cost P 44,050.00

Table 12: Appliances

Appliances No. of

Equipment

Cost Total

Oven Toaster 1 868.00 P 868.00

Water Refilling

Station

1 3,000.00 3,000.00

Gas Stove Burner 1 1,500.00 1,500.00

Electric Water

Kettle

1 500.00 500.00

Refrigerator 1 13,000.00 13,000.00

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Electric Flat Iron 1 500.00 500.00

Washing Machine

7.5 kg

1 7,995.00 7,995.00

Shower Heater 2 6,495.00 6,495.00

Exhaust fans 2 1,080.00 2,160.00

Double Deck

(Metal)

9 4,695.00 42,255.00

Industrial Fan 6 1,500.00 9,000.00

Airconditioner 2 18,495.00 36,990.00

Vacuum Cleaners 1 4,295.00 4,295.00

Total Cost P 128,558.00

Table 13: Beddings & Others

No. of Items Cost Total

Blankets 18 235.00 P 4,230.00

Pillows 36 399.00 14,364.00

Pillow Cases 36 200.00 7,200.00

Bed Sheets 18 825.00 14,850.00

Towels 20 200.00 4,000.00

Curtains 10 620.00 6,200.00

Total Cost P50,844.00

Table 14: Utilities

Cost

Water Expense/month P 1,000.00

Electricity 10,000.00

Internet 6,000.00

Total Utilities P 11,000.00

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Table 15: Guest Toiletries

Cost

Shampoo (Sachet) P 5.00

Toothbrush 20.00

Toothpaste 7.00

Tissue 10.00

Total Cost P42.00

Table 16: Schedule of Salaries

To attract qualified employees to fit the position, the company will offer an

honorarium for each applicant. The honorariums of each staff are as follows:

POSITIONS MONTHLY HONORARIUM (PhP)

Lodging House In-Charge P 1,500.00

Receptionist/Cashier 1,500.00

Helper 1 1,500.00

Helper 2 1,500.00

TOTAL HONORARIA per MONTH P 6,000.00

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A.Projected Income Statement

Collective Progress Multi-Purpose Cooperative (CPMPC)

Backpackers' Lodging House

PROJECE! "#COME $%EME#

&or te ear Ended !ece*er +, ./,0

ear , ear . ear +

"#COME

Sales 1,944,000.00 2,916,000.00 2,916,000.00

Interest on Bank Deposits 15,000.00 20,000.00 25,000.00

1ross "ncoe ,232///4// .2+5///4// .26,///4//

Less7 E8PE#$E$

Honoraria 72,000.00 108,000.00 156,000.00

Supplies Toiletries 204,120.00 272,160.00 272,160.00

Supplies Bein!s 50,844.00 55,802.00 52,080.00

"entals 108,000.00 108,000.00 108,000.00

#er$its % &i'enses 10,000.00 12,000.00 14,000.00

Bons 5,000.00 6,000.00 7,000.00

(tilities 204,000.00 210,000.00 216,000.00

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Depre'iation )urniture % )i*tures

54,05+.00 54,05+.00 54,05+.00

Depre'iation --i'e /uip$ent

6,050.00 6,050.00 6,050.00

s % #ro$os 12,000.00 14,000.00 16,000.00

Transportation 48,000.00 49,000.00 50,000.00

otal E9penses 006/504// :23/534// 23,+6+4//

#et $urplus ,,:62++4// ./6/2+34// ,2:25304//

Distriute as )ollos3

Statutor "eseres +55,479.90 612,280.50 596,897.10

$ount -or #"I 829,45+.10 1,428,654.50 1,+92,759.90

B.Projected Balance Sheet


Backpackers' Lodging HousePROJECE! B%L%#CE $HEE

%s o; Ended !ece*er +, ./,0

ear , ear . ear +

%ssets

as in Bank 1,+45,000.00 +,+90,000.00 5,+80,000.00

as on Han 7,725.00 1+,860.00 2+,717.00)urniture % )i*tures 108,105.00 54,052.00 16.00

--i'e /uip$ent 24,200.00 18,150.00 12,100.00

otal %ssets ,6:3/+/4// +605/5.4// 36,3:++4//

Lia*ilities < Me*ers' E=uit>

Liabilities

itolin! Ta* #aale 450.00 450.00 450.00Statutor "eseres +55,479.90 612,280.50 596,897.10

$ount -or #"I 829,45+.10 1,428,654.50 1,+92,759.90

Total Liabilities ,,:3+:+4// ./6,+:34// ,22/,/04//

Total Members' Equity .225604// ,6+65004// +6.30.54//

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otal Lia*ilities

< Me*ers' E=uit> ,6:3/+/4// +605/5.4// 36,3:++4//

C.Projected Statement of Cash Flows


Backpackers' Lodging House

PROJECE! $%EME# O& C%$H &LO?$

&or te ear Ended !ece*er +, ./,0

ear , ear . ear +

C%$H "#&LO?

Sales 1,944,000.00 2,916,000.00 2,916,000.00

:e$ers; ontriutions 10,200.00 10,200.00 10,200.00

Interest on Bank Deposits 15,000.00 20,000.00 25,000.00

otal "n;lo@ ,252.//4// .265.//4// .23,.//4//

C%$H OA&LO?

Honoraria 72,000.00 108,000.00 156,000.00

Supplies Toiletries 204,120.00 272,160.00 272,160.00

Supplies Bein!s 50,844.00 55,802.00 52,080.00

"entals 108,000.00 108,000.00 108,000.00

#er$its % &i'enses 10,000.00 12,000.00 14,000.00

Bons 5,000.00 6,000.00 7,000.00

(tilities 204,000.00 210,000.00 216,000.00

Depre'iation )urniture % )i*tures

54,05+.00 54,05+.00 54,05+.00

Depre'iation --i'e /uip$ent

6,050.00 6,050.00 6,050.00

s % #ro$os 12,000.00 14,000.00 16,000.00

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Transportation 48,000.00 49,000.00 50,000.00

--i'e /uip$ent +0,250.00


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The net profit margin of 61% shows that the business can convert revenue into

actual profit.

E.Evaluation of Project Study

A.Return of Investment

Based on the projected income statement of the business, a total gain of

P 140,100.00 was earned while a total operating/administrative expenses of

P 128,050.00 was also incurred during the year. To get the ROI, the illustration

is drawn below:

ROI = (Gain from Investment Cost of Investment)

Cost of Investment

ROI = (1,959,000.00 -774,067.00)/774,067.00 x 100%

ROI = 1,184,933.00/774,067.00 x 100%

ROI= 1.5 or 150 %

As shown on the above computation, it has 150% ROI. Therefore, the project is

said to be very feasible.

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CHAPTER VI: CONCLUSIONS AND RECOMMENDATIONS

Establishing a backpackers lodging house in-charge in Bohol appears to be

feasible as shown on the evaluation of Return on Investment of 150% on its

first year of operation.

As per the interviews and questions conducted by the proponent, having a

lodging house for the backpackers in the area will support the backpackers atsame time promoting tourism in the province. Aside from that, it will also

support the small businesses or local markets surrounding the area like sari-

sari stores which in short, generate considerable employment in the

community.

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Therefore, we conclude as per data gathered and based on the results, it shows

that the project will give an income to the cooperative.

CHAPTER VII: DESIRABILITY OF THE PROJECT

The primary objective of this study is to determine the feasibility and viability

of a proposed plan to establish a backpackers lodging house business. Part of

this study is to be able to shed light to the proponents of this project as to the

risks, expenditures, benefits, marketability and profitability of the services.

After interpreting the data gathered and concluding that the proposed project

is feasible. We made some financial projections that show a favorable outcome.

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It has been estimated that after a year of operation the project can enjoy the

net increase of P 1,184,933.00.

Moreover, this project does not only give a great deal of benefits to the

proposing parties but to the society as well. With the establishment of this kind

of business, generally, it can contribute to the improvement of the economy.

As projected, the demand for the business would increase every year and

probably the lodging house will construct more rooms to provide

accommodations to more guests. This implies that the need for more employees

would increase thus giving a venue for people to get employed. Aside from that,

it would also increase the capital of the members of the cooperative. All in all,

the lodging house business contributes in the local economy.

feasibility on backpackers' lodge.docx

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