sustainable developement in rural tourism in india

8/22/2019 Sustainable Developement in Rural Tourism in India

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Chinmaya Kiran Vadali

SUSTAINABLE DEVELOPMENTIN RURAL INDIA THROUGH

TOURISM


2/13

Athidhi- Enjoy, Enrich

Vision:

To showcase and promote the best of authentic

Indian traditions through premium hospitality

destinations

Ensure holistic development by preserving culturaldiversity and through eco-tourism

Harmonizing with surroundings and enhancing the

quality of life by harnessing local creativity


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Context of CINE

Sustainable development is a three step process

Seed Development (May or may not be innovative)

Irrespective of sustainability, basic needs like food, shelter

and clothing NEED to be fulfilled.

INNOVATION Innovation is expressed in cases where existing processes

are sub-optimal

Sustainability

Achieved by harnessing local resources and culture


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The idea: Cottage style resorts made

with reinforced local material In villages (Pochampalli,

Zainabad, Guruvayoor and so on) Closer to natural assets like

waterfalls, forest reserves etc. inabout a 100 mile radius. Promoting local culture in all

respects Architecture (design, construction) Food, hospitality and Entertainment

Employee base

Eco tourism

Value Proposition: Unique get away from city life Exposure to exotic traditions and

culture

Natures embrace, meetingPEOPLE

http://www.desertcoursers.net/resort.ht
http://www.desertcoursers.net/resort.htmhttp://www.desertcoursers.net/resort.htm


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Existing resources and

shortcomings

Government owned

resorts

Few destinations

Fewer accommodations

Bureaucratic hassles in

improving

Only the already well-

known products promote Leave a lot to be

desired

http://www.exploreruralindia.org/
http://www.exploreruralindia.org/http://www.exploreruralindia.org/


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Continued

Private accommodationhomestay tourism inSikkim

Dedicated space in home for tourists stay: Source

of income for local families.

Not scalable model

House etc. are necessary investments before families can

earn

Culture promotion is not organized.

Resorts like Zainabad Resort: Precedent for our model but very few in number

http://www.nivalink.com/sikkim/homestay.html
http://www.nivalink.com/sikkim/homestay.htmlhttp://www.nivalink.com/sikkim/homestay.html


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Operating Model

4 eco-friendly resorts (initially) spread across India to cover alltourist seasons

Focusing 4-5 day packages

Less than 100 km from prominent tourist spots, close to traditionalvillages

Local architecture (Mud houses etc.) with basic modern amenitiesand necessities (W/C, Purified Water, optional A/C, power outlets,emergency phones, discouraging mobiles & internet), no plasticzones, alternate energy, rainwater harvesting

Managers recruited centrally, local villages form the employee base

Local cuisine, entertainment, arts & crafts Complementary nature walks and tours

Company owned sales offices, exclusive online/telephone booking,promotion through social networking sites and liaising withgovernment

Sales personnel for corporate marketing

Offering vocational training to villagers in off-season (hospitality,


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Revenues and Costs Sources

Three key sources of revenue: Holiday package sales

Sales of local art, handicrafts etc. at resorts and at

branch offices (boutiques) Massages and art- of- living packages

Key Costs: Infrastructure depreciation

Initial Capital investmentsAdvertisement and promotions

Employee base (in branches and at resorts)

Resort maintenance and vocational training relatedexpenses

Raw material costs (for food, utilities, massages etc.)


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Revenue Estimates (INR)

Year

Planne

d

Capaci

ty

OccupancyNumber

Occupancy

Average cost per

room night

Price of a

Package

Package

Demand

Sale of

Handicra

fts

Total

Revenue

In-

season

120

days

Off-

season240 Days

In-

season

Off-

season

In

season

Off

Season

Average

price perperson day

In

Season

Off

Season

2010-

11400 25% 20% 12000 19200 6000 4000 1000 4800 7680 400000

161,680,000

2011-

12400 30% 20% 14400 19200 6000 4000 1000 5760 7680 400000

177,040,000

2012-

13600 30% 20% 21600 28800 6000 4000 1500 8640 11520 600000

275,640,000

2013-

14600 40% 30% 28800 43200 8000 6000 1500 17280 25920 960000

555,360,000

2014-

15600 50% 35% 36000 50400 8000 6000 1500 21600 30240 960000

669,120,000


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Costs & Profit Estimates

Year Land

Constructio

n

Depreciatio

n

Employee

s

Raw

material Handicrafts Utilities

2009-1060,000,00

0 40,000,000

2010-11 10,000,000 10,000,000 25,920,000 200,000 15,552,000

2011-12 20,000,000 10,000,000 11,500,000 25,920,000 200,000 15,552,000

2012-13 12,000,000 13,225,000 38,880,000 300,000 23,328,000

2013-14 12,000,000 15,208,750 51,840,000 480,000 31,104,000

2014-15 12,000,000 17,490,063 51,840,000 480,000 31,104,000


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Profit Estimates

Year

Maintenance

+

Renovation Promotion

Vocational

Training Total Cost

Operating

profit

Cost of

Capital

Profit

Before Tax

2009-10

10,000,00

0

(10,000,00

0)

2010-11 5,184,000 1,000,000 250,000 68,106,000 93,574,000

10,000,00

0 83,574,000

2011-12 5,184,000 1,000,000 250,000 69,606,000

107,434,00

0

12,000,00

0 95,434,000

2012-13 9,331,200 1,000,000 250,000 98,314,200

177,325,80

0

12,000,00

0

165,325,80

0

2013-14 12,441,600 700,000 250,000

124,024,35

0

431,335,65

0

12,000,00

0

419,335,65

0

2014-15

12 441 600

700 000

250 000

126,305,66

3

542,814,33

8

12,000,00

0

530,814,33

8


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References:

http://www.exploreruralindia.org/ Government of India initiative for rural tourism

http://rbh.in/Home/thrust_areas/rural_tourism.asp

x

CII conference about promotion of rural tourism

http://www.desertcoursers.net/resort.htm

Zainabad resort (hosted ERI- an IIMA elective)

http://www.nivalink.com/sikkim/homestay.html Sikkim home-stay resources
http://www.exploreruralindia.org/http://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://www.desertcoursers.net/resort.htmhttp://www.nivalink.com/sikkim/homestay.htmlhttp://www.nivalink.com/sikkim/homestay.htmlhttp://www.desertcoursers.net/resort.htmhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://rbh.in/Home/thrust_areas/rural_tourism.aspxhttp://www.exploreruralindia.org/


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Thank You

sustainable developement in rural tourism in india

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