Feasibility study on a hotel project: Moon palace resort hotel Chapter I 1.

1Introduction Moon Palace Hotel resort will offer accommodation with different types of rooms, restaurant, bar, spa, recreation activities, swimming pool, transfer services, island hopping, ecoadventure packages, souvenir shop, meeting/banquet facilities. This piece of work will contain a feasibility study for a hotel project: Moon palace resort hotel. It aims to evaluate whether the implementation of this hotel would be feasible. The reason for the evaluation of the planned hotel is to provide the travellers in Palawan a quality service of hotel at a moderate price. The scope of this work is to develop a business plan and projection taking in considerations the key factors that will affect the implementation of the hotel. The objective of this study is to evaluate whether the establishment of such project would work out and whether to proceed with the eventual development of the hotel.

This study is inspired by the fact that tourism is one of the sectors that has the potential to boost the economy of Palawan. Furthermore, according to the department of tourism, Puerto Princesa is among those destinations that has a high growth rate on its tourist visits. (see table 1) Table1. Tourist Volume in the Top Sixteen Destinations, January to June 2009 Destinations Foreign Domestic Total Growth Rate 194.0% 2.3% 6.0% -14.5% 2.7%

Camarines Sur Cebu Boracay Baguio* Davao

147,504 321,116 112,315 20,677 29,691

754,698 509,433 271,498 350,528 300,556

902,202 830,599 383,813 371,205 330,247

Puerto Galera** Bohol Negros Occidental* Negros Oriental Ilocos Norte Masbate* Camarines Norte Puerto Princesa Legaspi Catanduanes Sorsogon* Total Source: DOT Regional Office 45,995 32,780 22,729 8,088 10,257 1,711 11,380 7,892 9,953 26,251 808,389 114,619 113,724 95,069 91,659 71,630 79,466 69,376 59,732 55,188 27,951 2,965,128

215,755 160,614 146,504 117,798 99,747 81,887 81,177 80,756 67,624 65,141 54,203 3,989,271

20.2% 15.6% -55.2% 11.1% 6.5% -7.5% 63.9% 63.0% 10.9% 115.0% -14.0% 16.5%

*Partial Data** No breakdown

1.2 Scope The scope of this work is to develop a business plan and projection taking in considerations the key factors that will affect the implementation of the hotel such as: 1. location 2. market 3. cost and benefit analysis 4. products and services 5. forecast on its revenue, operating profit, personnel cost 1.3 objectives General objectives: The objective of this study is to evaluate whether the establishment of such project would work out and whether to proceed with the eventual development of the hotel.