draft report for an upcoming boutique resort at vaishali in bihar - buddhist circuit

8/14/2019 Draft Report for an Upcoming Boutique Resort at Vaishali in Bihar - Buddhist circuit

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DRAFT REPORT FOR AN UPCOMING BOUTIQUE RESORT TATHASTU

AT VAISHALI IN THE STATE OF BIHAR

BY TATHAGAAT HOSPITALITY AND TRAVEL SOLUTIONS

Viability study for a 50 room boutique resort at village Vaishali in Bihar


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INDEX

CONTENTS PAGE NUMBER

1.0 Introduction to Tathagaat Hospitality 03

2.0 Introduction to Vaishali 04

3.0 Tourist scenario 07

4.0 Tourism statistics 11

5.0 Tourism industry analysis 15

6.0 Real estate review of Vaishali 21

7.0 Industrial Policy 22

8.0 Subject site analysis 22

9.0 Marketing strategy 24

10.0 Swot analysis 25

11.0 Project Details 26

12.0 Project Cost 32


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1.0 INTRODUCTION TO TATHAGAAT HOSPITALITY & TRAVEL

SOLUTIONS

Tathagaat Hospitality & Travel Solutions will bring a one stop solution for very high

quality travel products. The company will consolidate the best and most unique resorts

with its own back end travel operations. The mandate of its own travel operation is to

ensure the highest quality of service possible in India and to guarantee its clients with a

life time experience. For this the company is going to use a network of a few select

companies who can provide small charter aircrafts to run these high cost tours.

The company will position itself in the niche segment where the clients are time

restrained and, are, more product conscious than price.

In order to achieve its goal the company has decided to start off with a sector that will

see quantum growth in coming years Buddhist Pilgrimage. Since Bihar is the birth

place for Buddhism and Jainism and let us say to some extent Sikhism, it is bound to

attract more and more tourists seeking to experience the land where such phenomenon

began. Pilgrimage is the only tourism that gets least affected by global turmoil. Thus

the company is going to begin its journey by establishing its own 50 villa boutique resort

at Vaishali in Bihar.

Once this resort is operational the company will simultaneously look for existing

properties in other Buddhist destinations of Bodhgaya, Rajgir, Kushinagar, Sravasti and

Lumbini that can be restructured / renovated to meet our standards and will run it

under a management contract with the respective resorts. This will establish a complete

circuit for high end Buddhist Pilgrimage.

From here on the company will venture into other lesser know destinations to establish

its boutique resorts for a out of the box experience for tourists craving for something

new and exciting.

The company will also set new standards in terms of eco tourism and will deliver this

with near perfection. The company envisages employing a large number of people and

being a part of conservation of nature, art, culture and the heritage.


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2.0 INTRODUCTION TO VAISHALI

Historically important, Vaishali, on the left bank of the Gandak river, is spiritually supreme.

Lord Buddha visited this place frequently and at Kolhua, close by, preached his last sermon. To

commemorate the event, Emperor Ashoka, in the third century B.C. erected one ofhis famouslion pillars here. A hundred years after the Mahaparinirvana of the Buddha - Vaishali hosted the

second great Buddhist council. Two stupas were erected to commemorate this event.

Jainism, too, has its origins in Vaishali, for in 527 B.C., Lord Mahavir was born on the outskirts of

the city, and lived in Vaishali till he was 22.

Vaishali is twice blessed and remains an important pilgrim center for both Buddhists and Jains.

It is one of the most interesting place in terms of historical and religious past.

Today Vaishali is a small town and is surrounded by mango and banana groves.

****Vaishali district is encircled in RED below.

Source : mapsofindia.com + wikimaps


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2.1 LOCATION

Vaishali is situated in the eastern Indian state of Bihar, around 55 km off Patna, the capital of

the state. Vaishali extends from latitude 25 to 30 North to longitude 84 to 85 East.

Vaishali district is a part of Tirhut division and Hajipur town is the district headquarters. Thedistrict of Vaishali came in to existence on 12/10/1972. Earlier it was the part of old

Muzzafarpur district. The district covers an area of around 2036 km.

Altitude : 53 m

CITY DISTANCE

Patna 55 Km

Madhubani 100 Km

Rajgir 170 Km

Bodhgaya 240 KmKesaria 40 Km

Hajipur 35 Km

Source : National Informatics Centre, Bihar

2.2 CLIMATE

Tropical climate with temperatures dipping to 4 degree Celsius in winters and going up to 43

degree Celsius in summers. The annual rainfall varies between 100 125cm every year and

most of it happening during the Months of July, August and September.

2.3 CONNECTIVITY

By Air : Loknayak Jai Prakash International Airport, Patna, situated 55 km away in Patna. There

are regular flights from Patna to other major cities of India like Delhi, Kolkata, Kathmandu,

Varanasi and Lucknow. You can hire taxis for further movement or board buses from Patna.

By rail : Most of the north India is well connected with railway network and Vaishali is no

exception. The nearest railhead is Hajipur, situated 35 km, which is well connected to the major

cities of India.

Patna the capital of Bihar, is just 55 kilometers away from Vaishali and is well connected with all

the metro cities of India and there are regular and direct trains from Patna to the cities of

Mumbai, Delhi, Chennai, Bangalore, Hyderabad, and Kolkata.

By road: Well paved and roads from Patna, the capital city (55kms / 1 and a quarter hour drive)

and adjoining city of Hajipur (35km/ 50 minutes of drive)


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Source : Goole maps

2.4 ACCOMMODATION

Vaishali do not offer very good stay options, so majority of tourists stay in Patna.

Accommodations are available in the Tourist Bunglows and Tourist Youth Hostels of Bihar State

Tourism Development Corporation.

Two hotels are coming up in Vaishali. One is a 60 room hotel with 3 banquet halls and the

construction began on 26th November 2009. Due for completion by the end of next year.


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2.5 CITY / DISTRICT STATISTICS

HEADQUARTERS HAJIPUR

AREA 2036 sq km

Total Population 2718421

Urban Population 186655

Rural Population 2531766

Subdivisions Hajipur, Mahnar, Mahua

Literacy rate 51.63%

Sex ratio 921/1000

AGRICULTURE Banana, Paddy, Wheat, Maize, Lentils and

Leechi

RIVERS GANDAK, KADANE, BAYA, DUMARI WALI

NADI


2.6 ECONOMY

The economy of the entire area is mostly agrarian. Agriculture is the main activity and banana,

paddy, wheat, maize , tobacco and lentils are the major crops.

3.0 TOURIST SCENARIO

Vaishali is the only city that is connected with two major faiths in this world. Lord Buddha

preached his last sermon in here and Lord Mahavir Jain was born here.

Historically important, Vaishali, on the left bank of the Gandak river, is spiritually supreme. Lord

Buddha visited this place frequently and at Kolhua, close by, preached his last sermon. To

commemorate the event, Emperor Ashoka, in the third century B.C. erected one of his famous

lion pillars here. A hundred years after the Mahaparinirvana of the Buddha - Vaishali hosted the

second great Buddhist council. Two stupas were erected to commemorate this event. Jainism,


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too, has its origins in Vaishali, for in 527 B.C., Lord Mahavir was born on the outskirts of the city,

and lived in Vaishali till he was 22. Vaishali is then twice blessed and remains an important

pilgrim center for both Buddhists and Jains, attracting also historians foraging for the past.

This destination is bound to see a growth of foreign tourists from countries like Japan, Korea,China, Tawian, Srilanka and the rest where Buddhism is a large religion. In the past one decade

the number of visitors from Buddhist countries have increased many folds. As per the report

published in Indian express on Jun 27, 2009 (http://www.expressindia.com/latest-

news/Foreign-tourists-inflow-jumps-four-times-in-Bihar/482096/) Patna ; with the Bihar

government giving a fresh thrust to the tourism sector through enhanced budgetary allocation,

the footfall of foreign tourists in the state has gone up by nearly four times in two years.

The number of foreign tourists visiting Bihar has shot up to over three lakhs in 2008, state's

Tourism minister Rampravesh Rai told reporters on Friday.

In 2007, the state witnessed an 87.79 per cent rise in tourist inflow as compared to the

previous year and last year the rise was 100.97 per cent, he said.

Realising vast potential of Bihar, home to a number of Buddhist, Jain and Sikh shrines for pilgrim

tourism, the government substantially increased budgetary allocations to the sector.

To facilitate stay in Vaishali, Various organizations and nations have built their own religious

guest houses for people who cannot afford to spend on rooms. This is free for citizens of the

countries. Currently there are Viharas( Hostels) from Srilanka, Vietnam and Burma.


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BUDDHIST CIRCUIT MAP OF BIHAR


3.1 FEW MORE FACTS ABOUT VAISHALI :

Tourist Attractions: Ashokan Pillar, Bawan Pokhar Temple, Buddha Stupa-I, Buddha Stupa-II,

Raja Vishal ka Garh, Shanti Stupa, Kundupur, Coronation Tank.

Festivals: The Vaishali Mahotsav in April celebrates the birth anniversary of Lord

Mahavira.

Nearest Tourist Destinations: Patna, Rajgir, Bodhgaya, Madhubani.

Best time to visit: October to March.


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3.2 MAJOR TOURIST ATTRACTIONS

Ashokan Pillar, The Lion Pillar at Kolhua, was built by Emperor Ashoka.

Made of single piece of red sandstone, the pillar is capped by a 18 m

high bell shaped capital. On the top is kept a life-size figure of lion.

Bawan Pokhar Temple : A Hindu temple, Bawan Pokhar temple

is situated on the banks of a lake called Bawan Pokhar. The old temple,

built during Pala period, enshrines beautiful images of Hindu Gods and

Goddesses.

Buddha Stupa 1 and 2 : The Buddha Stupas were created in the name

of the second Buddhist council. The outer stupa has a stone box, which

has one-eighth of lord Buddha's ashes. The inner stupa was excavation

in 1958 and it also held a stone box containing some part the ashes of

the Lord Buddha.

Raja Vishal ka Garh : The fort of King Vishal is in ruins today. A huge

platform here, which has a circumference of about one Kilometre and

walls nearly 2m high with a 43m wide moat, is said to be the parliament

house of King Vishal. More than seven thousands representatives could

stand here to discuss the issues.

Coronation Tank An excavated site : This place is believed as an ancient

parliament house of the Lichchavi government. The water of the tank

was used to anoint the selected representatives. It is located near the

Raja Vishal ka Garh.

3.3 FAIRS & FESTIVALS

Vaishali Mahotsava

Vaishali Mahotsava is an important festival of Vaishali which is held to celebrate the

birth anniversary of Lord Mahavir. It is celebrated on the full moon day of Hindu month

'Vaisakh', usually falls in mid- April.


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Sonepur Fair

Just 35 kms away Sonpur is situated on the confluence of the river Ganga and Gandak.

The town is host to one of Asia's biggest cattle fair which starts from full moon day of

Hindu month 'Kartik' (October - November). Millions of visitors come to this fair whichlasts for almost a fortnight. During the Sonepur Fair, Bihar State Tourism Development

Corporation offers Swiss Cottages with attached baths in the temporarily erected

Tourists Village.

4.0 TOURISM STATISTICS

Given under a few comparative/informative graphs depicting the rise of tourism in Bihar

and Vaishali in specific.

a.) The chart below depicts the arrival of Foreign Tourist in Varanasi. Only those nationalities

have been taken who are mainly Buddhist nations. Most of these tourists would start their

journey from Sarnath, near Varanasi, and then connect with Bihar by surface. The chart

shows a steady increase from 2004 till 2008.

Source : U P Tourism


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b.) Coming over to the state of Bihar - the chart below depicts a growth of377% in Foreigntourist arrivals from 2006 till December 2008. This a clear indication that the state of Bihar

has overcome its image of being a poor state in terms of infrastructure and security of

travellers. There seem to be no decline in the trend as the figure of Foreign toursits have

already touched 1.14 Lakh from January 2009 till April 2009 (not shown in the chart)

Source : Department of Tourism, Bihar; Govt. of Bihar

c.) The domestic tourism too have shown a steady growth from 2006 till early 2009.



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d.) Moving on to our detination VAISHALI. The chart below shows the arrival of

foreign tourists in Vaishali in the years 2006,07,08. It shows a steady rise in thenumber of

arrivals.


Domestic tourist arrivals in Vaishali from Jan Dec in 2006, 2007 and 2008


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Foreign Tourist arrivals in Vaishali from Jan Dec in 2006, 2007 and 2008


Since there is no hotel that can be used by domestic / foreign tourists in Vaishali, most of the tourists

stay in the Various Viharas, namely Srilanka Vihar, Vietnaam Vihar, Burma Vihar.

Its important to see that in the last four years, there is a major increase in the inflow of tourists, both

domestic and foreign into Bihar.

More importantly, we also note that the trend is dear to Vaishali also. Vaishali has the potential to host

these pilgrims who arrive to witness their faiths Buddhism and Jainism. Since Vaishali is close to Patna,

majority of tourists visiting Vaishali would stay overnight in Patna and make a day visit to Vaishali. But

the trend is changing as the foreign tourists are choosing to go directly to Vaishali and proceed on the

onward journey that is, most of the time a back breaking journey by road.

Given below are comparative charts that show the difference in Foreign tourist arrivals between Patnaand Vaishali. (Keep in mind that the nearest place where the tourists can stay is Patna)


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So we can conclude that if there are a few good hotels in Vaishali, The tourists would prefer spending

the night in Vaishali, after a tiring journey from other tourist destinations by road.

5.0 TOURISM INDUSTRY ANALYSIS FOR VAISHALI

At present there is no hotel in Vaishali. Though there is one hotel but it is in ruins and

can only accommodate people who just need a room with no facilities or cleanliness. To

facilitate stay for budget restrained citizens from various Buddhist countries - there are

the National guest houses (Viharas ) by Vietnaam, Srilanka and Burma governments.

These are very basic accommodation and lack the essentials of any good hotel. Hence

pose no competition or threat to our project.


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5.1 UPCOMING HOTELS IN VAISHALI

A 47 room hotel, Vaishali Residency is under construction by Vaishali Hospitality Pvt Ltd.

This is located about 30 meters from the Coronation Tank and right next to Vietnaam

State Vihara. The USP of this hotel is to cater to low and medium budget tourists thoseflock the destinations like Bodhgaya and Rajgir. Apart from this they will target

marriages, conferences and other local fests.

Another 40 room hotel with budget tourists in mind will commence construction in

January 2010. The foundation and basement is ready. This would again pose no threat.

5.2 TATHASTUS POSITION IN VAISHALI OVER HOTELS IN PATNA

Our resort will be supplementing the stay of tourists in Patna who are on Buddhist and

Jain pilgrimage. There are only two hotels in Patna that can be considered for analysis

for tourists looking for better hotels and facilities. These are

Hotel Maurya 70 rooms, only 4 star+ hotel.

Hotel Chanakya 100 rooms, 4 star hotel.

Hotel Maurya : The hotel property is located on a two and a half acre plot in the prime

commercial area of Patna (Gandhi Maidan). Its prime location gives the

hotel a definitive competitive advantage over any other existing or new

hotel since land is very scarce and expensive in central Patna.

It has 70 rooms and are divided into 7 category of rooms.

The room rate start from Rs. 5500 per night and go up to Rs. 22500 per

night.

The average occupancy for the hotel is around 47%

The ARR commanded is about Rs. 5500 per night.

Hotel Chanakya :The hotel is big with 100 operational rooms. Situated 6 kms from the

airport, Chanakya Hotel is a centrally located budget hotel. This popular

leisure and business hotel is situated just 1 km from the railway station

and 2 kms from the bus stand.

It caters mainly the mid budget tourists and banqueting events.


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The average occupancy is around 55%

The ARR commanded is around Rs. 3800.

A fair portion of the revenue comes from Banqueting and F&B sales as

there is no other such hotel in the state.

The occupancy and ARR for the two properties in Patna is given below :

Both the hotels cater to a variety of tourists and the only hotel that comes closer to our product range is The

Maurya.

Hence the only competition that we have is Hotel Maurya and our resort will gain advantage due to its

location, concept and quality.


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5.3 ARRIVAL STATISTICS AND INFERENCE

Given below is arrival trends of last 4 years in Patna. On the basis of research, apx 98% of foreign

tourists staying in Patna have visited Vaishali either on way in or on way out.

A much lesser percent of 18% domestic tourists have visited Vaishali.

As per the reports in TOURISM STATISTICS, the arrival of foreign tourists directly in Vaishali has

increased over the arrivals in Patna for the purpose of including Vaishali in the itinerary. Read the

charts given below :


5.4 CHANGE IN ITINERARIES AFTER THE RESORT COMES IN OPERATION :

Given below is the chart of two most frequented itineraries in the Buddhist Circuit in

Bihar. These programs are standard offers for group tours from Japan, Korea, Singapore,

Taiwan, Srinalka, Burma and various other countries.


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Once the resort is operational in Vaishali The tour operators will get the advantage of

breaking the journeys at Vaishali in order to give more time to the tourists to explore

Vaishali. Most of the times the tourists miss the Tallest stupa in the wolrd Kesaria

that is soon to be declared a UNESCO world heritage site. By the presence of this resort

in Vaishali the tourists will not have to take the grilling 9 10 hours in their buses to

travel from Bodhgaya/Rajgir to Kushinagar or vice versa.

For the groups flying in OR out of Patna, Vaishali still is a better option because it will be

more peaceful, more scenic and in the heart of historical and religious sites. The airport

would be a 70 minutes drive from the resort and thus the tourists can visit the Patna

Museum and carry on to Vaishali.

OLD ITINERARY 1 NEW ITINERARY - 1

Day 01 Bangkok Delhi Bangkok - Delhi

Day 02 Delhi - Lucknow Sravasti Delhi - Lucknow - Sravasti

Day 03 Sravasti Lumbini Sravasti - Lumbini

Day 04 Lumbini Kushinagar Lumbini - Kushinagar

Day 05

Kushinagar - Vaishali - Rajgir :

Driving time is over 9 hours and the

day becomes long, especially in

winters

Long day on road that leaves no

time for exploring the sites in and

around Vaishali. Tourists miss the

World heritage site of tallest

stupa at Kesaria

Kushinagar - Vaishali 210 kms The day

gets shortened by over 3.5 hours. The

next day the clients can explore Vaishali

at ease.

Day 06 Rajgir Bodhgaya

Vaishali - Rajgir Via Kesaria (180kms) -

The clients can explore Kesaria andcome back for lunch at Vaishali. and

then push off to Rajgir after lunch

Day 07 Bodhgaya Rajgir - Bodhgaya

Day 08 Bodhgaya Varanasi Bodhgaya - Varanasi

Day 09 Varanasi Bankok Varanasi - Bankok

OLD ITINERARY 2 NEW ITINERARY - 2

Day 01 Arrive Delhi Arrive Delhi

Day 02 Delhi Delhi

Day 03 Delhi - Agra Varanasi Delhi - Agra - Varanasi

Day 04 Varanasi Varanasi

Day 05 Varanasi - Sarnath - Varanasi Varanasi - Sarnath - Varanasi

Day 06 Varanasi Bodhgaya Varanasi - Bodhgaya


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Day 07 Bodhgaya- Rajgir - Nalnda - Patna

Badhgaya - Rajgir - Nalanda - Patna -

Vaishali - The clients can consider doing

another hour and a half after visiting

the Patna Museum to Vaishali.

Day 08 Patna - Vaishali - Kushinagar

Patna to Vaishali is 60km and then

to Kushinagar is another 223 km

and thus the driving time is

around 9-10 hours

Vaishali - Kushinagar : In the morning

the clients can explore Vaishali and

Kesaria. After lunch drive to Kushinagar

to reach by nightfall.

Day 09 Kushinagar Kushinagar

Day 10 Kushinagar - Kapilvastu Lumbini Kushinagar - Kapilvastu - Lumbini

Day 11 Lumbini Sravasti Lumbini - Sravasti

Day 12 Sravasti - Lucjnow Delhi Sravasti - Lucjnow - Delhi

Day 13 Sravasti - Lucjnow Delhi Sravasti - Lucjnow - Delhi

Day 14 Delhi out Delhi - out

5.5 PREFERENCE OF TOURISTS OF VAISHALI OVER PATNA :

The tourists and the travel agents will prefer to put their clients at Vaishli over Patna for

the following reasons :

1) Vaishali is dear to Buddhist and Jains.

2) Vaishali is more peaceful, cleaner and better climate as compared to Patna which

gets very hot due to concrete constructions and high population

3) The driving time gets reduced by by 2hours while transiting from Kushinagar to

Gaya/Rajgir.

4) By the avilablity of accommodation in Vaishali the tourists can visit Kesaria

(proposed UNESCO heritage site) at ease and explore this quaint village with various

historical and religious site without rushing to board their buses / cabs to reach the

next destination.

5.6 LOCAL TOURISM FROM PATNA (WEEK END + CONFERENCES)

Another big market that will emerge from the city of Patna would be week end visits by

people of Patna who have not yet experienced anything like the concept at Thathastu.


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There is large population of high income group residents in Patna. With the political

situation getting better and better, the people are opening up in terms of engaging their

disposal income.

Another big market will be for high end conferences by companies who prefer to mergebusiness with a quality vacation for their top executives. Being close to Patna, they will

not mind paying a comparitivelyhigh price for our resort, as the cost for air travel to

any destination like GOA, KERALA, JAIPUR, AGRA or for that matter even DELHI would

compensate for our high prices. It will be time saving too.

Bihar as a state is opening up for FDI and investments from Indians in various sectors. As

soon as this gains momentum, there will be an ever increasing demand for better

resorts and hotels.

5.7 LOCAL MARRIAGES

One more market that will emerge will be the rich Buddhists marrying off their children.

Vaishali by the virtue of its history and the boutique resort Tathastu, will be the ultimate

destination to solemnize such ceremony. Since the resort will be unique, very Buddhsit

and in tune with the religious heritage it will attract such ceremonies.

5.8 BUDDHIST EX-PAT MARRIAGES

There is a large population of Buddhist Ex-pats staying in India. Global partnerships in

automobile, telecom and other sectors have induced a growth in this numbers. Tathastu

in Vaishali - by the virtue of direct connectivity from all major metropolitan cities via

PATNA can be promoted as the ONLY BUDDHIST BOUTIQUE RESORT for marriages and

other family functions. Our research tells that there is a demand for such resorts in

religious destinations.

6.0 REAL ESTATE REVIEW OF VAISHALI DISTRICT

The real estate scenario is in an infant stage, owing to no commercial hub in the vicinity

of the proposed site. Most of the land is agricultural and is governed by a system of

Panchayat.


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The entire region is fragmented into small pieces of land and there is no fixed rate in the

area. Land accusation happens in stages after one succeeds in gathering a big piece of

land from various owners. The current prices as per a survey in October 2009, varied

between Rs. 20,000 to Rs. 1,20,000 for each khatta (1760sq feet) of land.

7.0 INDUSTRIAL POLICY

The existing Industrial Policy of the Bihar was framed against the back drop of potential

and expectations of the newly formed government under the leadership of The

Honorable Chief Minister Shri Nitish Kumar.

The approval of the much awaited Tourism Policy of the Bihar government is an

invitation for people looking to contribute towards tourism development in the state.

Special packages and incentives will be given to promote tourism development in the

state of Bihar. Under the package announced formally on 15th July 2009, new

prospective investors in the tourism sectors would get rebates in land registration

charges, electricity consumption and luxury tax for seven years apart from other

benefits.

8.0 SUBJECT SITE ANALYSIS

The land appropriated for the project is situated about 65 meters from the Ashoks Pillar

and in the middle of an agricultural area. The area is apx 3 acres.

The land has good frontage and is about 30 feet inside from the main road.

Its about 1 km from National Highway 102 connecting Chapra to Muzaffarpur. It is

about 3.5 kms from the Buddhas Relic Stupa and about 700 meters from The Ashokas

Pillar.

The site is about 4.5 Kms from the Site of the Jain temple that is coming up at the birth

place of Lord Mahavir Jain.

We have decided to keep it a little away because of the theme of the resort. The area

that is most sought after, is the road leading to the coronation tank and Buddha Relic

Stupa. On this 450 meter raod we have 4 hotel projects happening. There are 3 National

State Viharas.

As per our survey, this is the area where there will be a lot of chaos and local markets

springing up to cater to basic needs like eateries and small restaurants.


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By keeping it a little away we can engage our team of eco Rickshaws to take the tourists

around the villages and various sites of interest. There are beautiful village roads that

can be used to travel between various sites.

Another big advantage of this land is its price. Since its away from the happening area inVaishali, the prices are modest as compared to the land around the coronation tank.


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Source : Google Earth Maps, google Inc.

9.0 MARKETING STRATEGY

Logic behind the Project

It is envisaged that the resort will attract pilgrims coming to Bihar to visiti centres

associated with Buddha and the birthplace of Lord Mahavir, the founder of Jainism. For

years thousands of tourists have visited the Buddhist circuits in Bihar. Bodhgaya has got

maximum infrastructure to accommodate tourists and hence it has become the centre

of pilgrimage for Buddhists.

However, looking at the historical past and its religious value Vaishali is no less that

Bodhgaya, having the added advantage of being a pilgrimage centre for the Jains. Due to

various reasons the place is neglected and remains a faraway day visit from Patna

despite the fact that it has all that it takes to make it one of the most important

destinations for both Buddhist and Jain pilgrims.


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Research show that tourists are willing to spend time at the religious sites in Vaishali.

They wish to do morning prayers and evening prayers and experience the sunrise and

sunset. They also desire to experience day-to-day life of the local people. However, due

to the lack of a good hotel, they have no choice but to return to Patna or continue

onwards to other destinations.

We are convinced that once there is a hotel that provides world class services and an

ambience that resonates with the religious and historical grandeur, there is bound to be

a huge inflow of Buddhist and Jains that have come to Bihar on a pilgrimage and end up

spending nights in Patna.

From October till April pilgrims come from Japan, South Korea, Spain, China, Singapore

and other South Asian countries. etc. Along with Jain pilgrims and other tourists these

visitors will be our prime focus. With our abilities to market lesser known destinations it

will not be difficult to generate adequate traffic to this destination. We also plan to

attract a big chunk of the group tourism from countries like Japan and South Korea and

China.

10.0 SWOT ANALYSIS

Strengths

Located in a village that is of prime importance to the Buddhist and Jain Pilgrimage

Very close to National Highway number 102

Peaceful environs for the meditation centre

Weaknesses

This would be the only hotel away from the link road where all other projects are

coming up.

At present there is no social, physical infrastructure present in the close proximity of thesite.

Opportunities

Advantage of being one of the first hotels to get commissioned in Vaishali.


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Other hotels are coming up, but with a very general approach of gathering any sort of

business that may come around. So we can be trend setters for a unique resort

experience.

Vaishali will be connected y railways in next one year. The work is under progress.

Threats

Upcoming hotels can attempt to attract our market share based on PRICE only factor.

11.0 PROJECT DETAILS

10.1 Room configuration

The proposed resort will have three different kinds of villas. Below given is a breakup of villas

category wide

11.2 FACILITIES

Individual villas for total privacy and peace

Specialty restaurants Japanese, Korean, Jain and Indian

Meditation Hall


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Directors conference Room

Museum

Business Center

Exclusive Wedding event

Ayurvedic Rejuvenation & Treatment centre.

11.3 SELF SUFFICIENCY

Since the state of Bihar still does not have a regular distribution of electricity, most of the places

get their supplies in phases. At the moment Vaishali has to go without electricity for over 6 7

hours each day. Though the government has committed to assist such ventures by dedicatingpower supply to such units.

This challenge of running the vital machinery along with heating and cooling poses a challenge.

Though the hotel will install its own 500Kva generator along with its substation, The resort will

to optimize the resources from nature. In its plan the resort is going to have half the rooms

optimized for Summers with the rooms facing towards north and having deep verandas and

double roofs. There will be water channels all around to cool the breeze.

Apart from this there is a plan to install customized desert cooler to cool the public and

individual areas. These desert coolers will pre cool the air that goes into the air-conditioningunits. This will reduce the power consumption by the air-conditioning.

For heating the resort is planning to use state of art solar water heating solution that can be

utilized to heat the rooms as well as the public areas and simultaneously supplying hot water for

use. Peak energy consumption would happen only on bad weather days. Or else there will be a

balance of natural resources and power supply / generated.

BIO GAS : Since there are many villages around the site, the resort is going to extensively train

people to install bio gas plants. Experts will be engaged to design a highly efficient plant that can

feed the resort to run kitchen stoves, boilers, and a small steam turbine(probable) to generate

electricity.

11.4 ENERGY CONSERVATION

The resort will set new standards in terms of energy conservation and responsibility towards

environment. Every process, big or small, in the hotel will be energy efficient. Solar lanterns,


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intelligent lighting systems, architectural designs to optimize heating and cooling, energy

efficient kitchen equipment etc.

The staff will be trained and made aware about all these aspects.

There resort will practice recycling most of its own waste on site.

11.5 ALTERNATE SOURCE OF ENERGY

Since energy conservation is high on agenda the resort aims to use a variety of technologies

and procedures to reduce its impact on environment. A lot of energy is consumed in heating and

cooling the public spaces and the rooms in any hotel. For this purpose the the resort will be

dsigned in such a way that at any given time the only spaces that are being heated or cooled,

are the ones required. That is why the resort is envisaged like a caterpillar construction that

enables regulation of various processes in the resort. Even the restaurants will be such that the

areas can be insulated in various volumes to optimize heating/cooling.

The resort going to use, solar energy, solar heating, wind systems available to optimize the over

all ambience. We will also induce an extensive use of biogas in our system.

11.6 LOCAL EMPLOYMENT

The resort plans to train and employ people from various nearby villages and cities. A large

number of them will be trained at our in-house training facility and employed directly by the

resort. The resort desires to have over 60% local employees.

The resort will facilitate training by various organizations for organic farming. Initially we will

consume most of the produce for our clients, the surplus will be supplied directly to institutions,

business houses looking for organic produces. For this the resort will act like a one point

facilitator between the farmers and buyers. By eradicating middle chains, the farmers can

benefit directly. The resort does not desire to gain revenue out of this facilitation.

The resort also will employ a few people to run our custom designed high tech cycle rikshaws

to ferry people within the village to various sites. These people will be employed directly by the

resort.

The resort will train a few local people to act like guides for the historical and religious sites.

These people would be sponsored for learning few foreign languages. Once they are trained

they can be hired as guides by various other resorts in the area that may come up.

The resort will be decorated by art work and sculptures by artists from the state. All of these

will be on sale and the 70% of sale proceedings will go directly to the artist. 30% will be resorts

revenue as a facilitator.


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11.7 ENVIRONMENTALY RESPONSIBLE

The resort will engage practices that work towards energy conservation and least pollution.

First and foremost plan is to initiate a forestation drive. For this the company will plant and

maintain a tree for a life time, for every guest who has stayed at this resort. For this purpose

the company will secure a large area of forest land from the government to plant these trees.

The plants will be looked after by people employed by the resort. Every tree planted, will bear

the name of the tourist on whose account it was planted.

A 2 monthly database with pictures of the health of each tree will be updated on the website of

our resort. This way the tourists will feel even more attached to this place for the entire of their

lives. This will also justify the high tariffs of our resort.

Installation of bio gas plants will reduce the dependence on diesel and electricity.

Cycle rickshaws will add on to our carbon credits. 100% pollution free transport for exploration

of Vaishali.

The resort will also have a fleet of cycles for the tourists to go around the village.

11.8 EXPANSION OF THE RESORT

Enough land will be acquired in order to increase the inventory as and when the demand would

grow. The strategic location of this resort will not permit any other resort to be close to us in at

least a mile. It is located away from the most of the upcoming project site.

11.9 EXPANSION OF THE COMPANY

Once this resort is operational the company will simultaneously look for existing properties in

other Buddhist destinations of Bodhgaya, Rajgir, Kushinagar, Sravasti and Lumbini that can be

restructured / renovated to meet our standards and will run it under a management contract

with the respective resorts.

Thus the company will work towards its own boutique resorts in all Buddhist Destinations in

Bihar by 2014-15.

This will establish a complete circuit for high end Buddhist and Jain Pilgrimage.


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11.10 MARKET SHARE ASSUMPTION

Since Vaishali has no hotel till now, it will be difficult to forecast the comparative trends. But a

lot will depend on the positioning of the resort. Although there is a substantial market for hotels

in Vaishali we are aiming at high end tourists, high monks, preachers and those people whowill not mind spending more for quality. Even without the required infrastructure the number of

foreign visitors crossed 16500 marks in 2008. Though this is a small percent of over 3.60 lakh

tourist who visited Bihar.

As per the trends of the tourists arrivals a large percent of tourists visiting Bihar are pilgrims

and seek to travel to Buddhist destinations only.

A large fraction of the rich Jain tourists from all over the world would find it easy to come and

explore the birth place of their lord.

Technically speaking the analysis should be done with keeping Patna hotels on radar, as Patna isthe nearest place where the tourists stay overnight while visiting Vaishali on their Buddhist tour.

Patna too has only 2 hotels that may be considered to be at par in terms of tariffs The Maurya

and Chanakya. Both the hotels have 70 and 100 rooms respectively.

11.11 AVERAGE ROOM RENT PROJECTIONS

The proposed hotels room rent has been decided after reviewing the rates of similar products in

the South Asian Market. These rates will be trend setting in further projects of the company that

will command higher rates than any available resort or hotel.

So technically we dont face any competition and we exist as complimentary to other hotels in

Vaishali, as our resort will introduce Vaishali as a destination in itself.

The ARRs given are based on promoters ability to introduce and brand lesser known

destinations and hotels.


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2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

ARR 4750 5250 5500 6000 6000 6000 6000

Average

Occupancy 21.50% 40.20% 51% 55% 55% 55% 55%


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12.0 PROECT COST

The construction cost of each project difers on account of differential labor cost,

material cost and operator's standard specifications.

The broad heads under which the overall project / construction cost is spread is shown

in the table below:

COST AND FINANCE OF PROJECT

(Rs. In (lacs)

PARTICULARS AMOUNT

COST

Land cost 90.00

Civil Additions 375.00

Plant & Machinery 201.90

Electricals and Equipments 100.00

Interiors, Furniture & Fixtures 400.00

Cutlery, Crockery, Linen etc 75.00

Pre-op Expenses 180.00

TOTAL 1,421.90

MEANS OF FINANCE

a. Promoters Equity 180.00

b. Equity partner 250.00

c. Internal Accruals -

d. Foreign Partner (Seed Capital ECB) -

e Term Loan from banks

From banks & FI's 991.90

From SBI FCL / ECB

f. Working Capital Loan -

TOTAL 1,421.90

END OF REPORT


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draft report for an upcoming boutique resort at vaishali in bihar - buddhist circuit

Documents