Tourism And Hospitality Activity

Discuss about the Tourism and Hospitality Activity.

Tourism is an activity that can substantially modify the structure economy of any country. It is one of the main generators of economic and social development not only in terms of foreign exchange earner, but be paramount to achieve peace factor, promoting the identity of the people and create unity.This proposal looks into various benefits of setting up a hotel, it will looks into the costs and payments as well as the strengths that we may bank on to ensure that the business is successful. As people adopt new forms of relaxation, a hotel becomes a very viable business idea (Feinstein & Stefanelli, 2012). A hotel promotes tourism development  and investment evaluations suggests that besides focusing on the hosting service,there are complementary services such as bar, restaurant etc.

Executive summary

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To tap into the big tourist market in the area, a three star hotel will be very viable and promises high returns. Because of continued high yields  hotels and restaurants are increasingly popular investments in many tourist destinations. Due to the location and favorable climatic conditions, the proposed hotel will have high occupancy rates making the returns to be high. The place meets the specifications of every tourists dream on an ideal tourist destination.  The hotel will be set up in a prime location that is ideal for vacation, leisure or recreation, which will guarantee that rooms are, occupied ad high rates. A hotel will also promote sustainable development and also accomplish objectives of the country. There is an increase in tourist numbers as the sector has recorded growth in the recent years making such an investment a very good choice.

Statement of the problem

Currently there are no enough hospitality facilities in this area that cater fully to the needs of the growing tourists numbers (Hallock, 2009).  A startup would therefore, take little time to start having high returns as long as the services and the standard of the hotel are up to par. The growing numbers are of tourists are able to sustain a hotel.

Qualities of employees

The qualities of employees are one factor that will determine if the business grows rapidly. Qualities if employees are as follows. First, we will only hire experienced workers who have had some experience in the hospitality industry. This will enable us to  cut on the cost of training new staff. experience enables the staff  to have the knowledge on how to interact with the patrons, this is one of our strategy to get new customers and retain them which subsequently leads to the hotel having a bigger market share (Herman, Pietracci, & Sharma, 2001).

We shall also hire employees who are enthusiastic. Being the hospitality industry, one of the best qualities we can get is an enthusiastic employee who is to adopt to the challenges of the industry and still deliver.

The waitress is a key person for the hospitality industries. she is the liaison between the Company and the Guest; also represents the image of it, so it is vitally important knowledge and management of Human Relations, which allows us to offer a careful attention, providing guests with quality service, reflecting that it has a fresh, delicate, radiant personality and a true dedication to service.

The waitress also is a Public Liaison for the same reason stated above; his work goes beyond making a bed or wash a bath, she is the person serving the guest in the room; every word, gesture or detail yours should be tactful, smoothness and efficiency this attitude becoming the best advertisement for the hotel because a satisfied customer will return, and invite their related, friends and family to visit him. It becomes a communicator because their quality work and good will is the best message of excellence in service received by the host, resulting in its being in the hotel, satisfaction and recommendation (Sant, 2004). Do not forget that a guest also receives the transmitted image of our business  with full attention of optimism and warmth.Given the importance of their work from the moment it begins its work should adopt a positive attitude and willing to abide by the different orders in carrying out their tasks without falling into contradictions, this will help you feel good and pleased with herself.It is therefore necessary to develop and enhance a set of qualities that constitute personality.Trust makes work easier and makes it a pleasure. The confident person itself influences other with his personality and confidence. Ethics,  is the part of philosophy dealing with moral norms and moral standards that govern the behavior of man in society; therefore it can be considered as the science of behavior.

The behavior of these standards should lead the individual to their personal development, acquiring a commitment to him to be getting better. Other qualities include;Excellent personal appearance, Sense of responsibility, Discipline at work, Initiative and discretion.

Cost, Payment and Legal payment

The cost involved in the hotel business proposal is the initial project costs of development and maintenance of the existing structures. For other examples of business projects, check out the examples section of the business plan.

Market study

Before thinking about opening a new hotel, it is essential to study competition in the area. INE data provide interesting references of best provinces for a new establishment, but this does not mean that the poorly covered areas in a province with an oversupply in general (Tisdell, 2013).

The occupancy of the accommodation facilities should not overstretch. The cost of building restrooms and accommodation lodges should not be very high if the area has a high number of hotels. The cost estimation should take into account other facilities in the area.

Differentiating factors

Although it is an old economic activity, hotels have many possibilities to differentiate themselves from their competitors. You can offer innovative and convenient services, implement strategies for low cost or conversely luxury, go for a good kitchen or a unique view, the important thing is to offer something different to what is already offered, and of course something valuable. This is to make customers prefer this establishment to any other in the same area.

Sales forecast

To have an idea of ​​the sales of a hotel project, we must distinguish three broad categories of income: renting rooms (main activity), restoration (in case of a restaurant) and extra services (Internet, telephone, minibar, etc.)

The estimate of income from renting rooms can increase the employment rate, which in turn gives us a number of travelers (Tisdell, 2013). For catering services, if breakfast is not included in the room rates would have to estimate the percentage of travelers who would take it. If the hotel has a restaurant offering lunch and dinner, you should review the business plan for a restaurant that we published at the time.

Ancillary services can be estimated based on a percentage of consumption by travelers.


The hospitality industry has a lot of competition. This should be the reason why the hotel should have the best services and provide unique quality food to attract its own customers. There are close to 10 hotels within the location. This means the competition is high and the only way to win is to provide unique services. Retaining customers and getting the competitions loyal customers is the best strategy in a highly competitive market.


The hotel is located just 5 km from the city. Its ambience and serene environment makes it a good hideaway. Location is everything in business. The city has close to 4 million people and therefore there is a population to sustain the business although the competition may be high. Roads leading to the hotel are tarmacked and travel services to the hotel are provided.

Market strategy

Penetrating strategy to the market is to provide quality market strategy at affordable

Rates, maintaining the layal customers and attracting new customers. Other strategies include lowering costs and having events held at the place.

Investment and Financing cost

A hotel usually represents a very significant investment. The building is obviously the main asset to be financed. There is the possibility of renting or buying, but in general, is such a specific business and investments in many works to condition the rooms have reasonable rent, to long term or directly buy the building.

The amount of investment is very variable, depending on property prices in the area and especially the size of the establishment. If you want a hotel with over 100 rooms, the money will exceed several million euros. For a more modest building, the cost would be similar to the construction of a villa (Walker & Harding, 2006).

Besides the building, we must have an investment in furniture (beds, chairs, tables, decorative furniture) and computer, without the cleaning tools and other necessary items.

Due to the amount of the investment, it is virtually certain that some form of external financing is needed; either by a bank is with venture capitalists (or both). In case of a loan, we should value a long-term loan.

Legal fees/ cost

In all this transaction the lawyer must be involved meaning there is a substantial amount of money involved in legal cost.

Estimating costs and expenses

Apart from the amortization of the installations, the main cost of a hotel are the staff (front desk, housekeeping, bar, restaurant), rent (if not a building owned), supplies (electricity, water), external services (insurance, agency, clean towels and sheets, etc.). Obviously, the beginning will have to take into account opening and licensing fees, advertising campaign, etc.

We must also take into account all costs associated with selling products and services catering (breakfast, minibar, restaurant, room services).

Benefits of the proposed hotel

The benefits range from economic, social and cultural factors.

Many people are likely to be employed when the hotel is opened creating worthwhile opportunities to hundreds of people within the area. Experts or professionals are likely to come from other parts of the country while the casuals and subordinates are likely to come from the local area.

Social amenities are also likely to be developed around the area. Police stations to enhance security of the area therefore boosting the business of the hotels (Tisdell, 2013).  Hospitals and dispensaries are also likely to be found in the area. Additionally, electricity and water supply will also be enhanced within the area.

The cultural aspects of the community will be sold to the outside world. Many tourists will come to see the people’s culture therefore selling it to the outside world. It brings forth exposure of the local culture.

How long does it have to be?

The one hundred room hotel will take about one year to construct at an estimated cost of twenty million dollars. It will take be a four star rated hotel and will bring vibrancy around the area.


Feinstein, A. & Stefanelli, J. (2012). Purchasing. Hoboken, N.J.: Wiley.

Hallock, M. (2009). Hotel accounting. Chandni Chowk, Delhi: Global Media.

Herman, B., Pietracci, F., & Sharma, K. (2001). Financing for development. Tokyo: United Nations University Press.

Perry, I. (2009). Safety puzzles for the hospitality industry. Amherst, Mass.: HRD Press.

Rippy, D. (2000). Sizing up a start-up. Cambridge, Mass.: Perseus Pub.

Sant, T. (2004). Persuasive business proposals. New York: AMACOM.

Slattery, P. (2012). The economic ascent of the hotel business. Woodeaton: Goodfellow Publishers.

Sturman, M., Corgel, J., & Verma, R. (2011). The Cornell School of Hotel Administration on Hospitality. Hoboken, N.J.: Wiley.

Tisdell, C. (2013). Handbook of tourism economics. Singapore: World Scientific.

Towards meaningful economic diversification. (2002). Gaborone, Botswana.

Walker, R. & Harding, K. (2006). Tourism. Oxford: Oxford University Press.

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