1. BUSINESS PROPOSAL
“BUSINESS STUDY ON HOTEL INDUSTRY”
An assignment submitted to IIMT, Greater Noida as a partial fulfillment of
full time Post Graduate Diploma in Management
Submitted to: Submitted by:
Dr. D.K. Garg Sir, PRASHANT BATHAM (MMR 5056)
Chairman, IIMT PIYUSH BAHADUR (MMR 5065)
Greater Noida
Ishan Institute of Management & Technology
1A, Knowledge Park-1, Greater Noida, Dist. G.B. Nagar (U.P.)
Website: www.ishanfamily.com,
Email: ishan_research@yahoo.com
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2. BUSINESS PROPOSAL
PREFACE
There are number of forces that make marketing an endlessly changing activity. The
constantly changing activity sociological, psychological and political environment may represent
the uncontrollable marketing factors. To understanding these factors in a better way marketing
research is of utmost importance.
This Project Report has been completed in Partial fulfillment of my management
Program, Post Graduate in Marketing Management (PGDMM) for small scale business study in
the HOTEL INDUSTRY.
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3. BUSINESS PROPOSAL
DECLARATION
The project title “A study on Hotel Industry” is been submitted by Piyush Bahadur (ENR-
MMR5065),Prashant Batham(MMR 5056).
The intention here is to provide preliminary information to the prospective entrepreneur. Prior to
making a firm decision for investment in the project the entrepreneur must verify the
various feasibility aspects together along with the addresses for the procurement of plant &
machinery and raw materials independently. The information supplied in this report is
obtained from the reliable sources but it is not guaranteed and the money once paid will not be
refunded back in any case. Claims for incomprehensiveness of the project report will not be
entertained and no legal action in this regard would be entertained in any case (Subject to
Delhi Jurisdiction only).
I have used the business site of project in Gangtok and we have discussed with the owners of
hotels about the business.
Signature.
Date: 15th October 2011. PRASHANT BATHAM (ENR-MMR5056)
PIYUSH BAHADUR (ENR-MMR5065)
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4. BUSINESS PROPOSAL
ACKNOWLEDGEMENT
Concentration, declaration and application are not a full key for achieving any goal. There must
be a right way of guidance and co-operation of people for achieving that particular goal. This
guidance makes sure that person for success.
I was involved in the ―BUSINESS STUDY ON HOTEL INDUSTRY‖ and I came across a lot of
things which let us know about the business of hotel industry.
We would like to thank to our respected Chairman Sir: Dr. D.K. Garg, who always been a source of
motivation and support to all the students of PGDMM (IIMT, Greater Noida).
PRASHAN BATHAM (ENR: MMR5056)
PIYUSH BAHADUR(ENR: MMR5065)
Batch: 16th
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5. BUSINESS PROPOSAL
TABLE OF CONTENT
CHAPTERS Page No.
1) PREAMBLE................................................................................ 6
2) PURPOSE OF STUDY............................................................... 7
3) BUSSINESS................................................................................ 8
4) LOCATION................................................................................ 12
5) MANPOWER REQUERMENT................................................. 21
6) TECHINICAL KNOW HOW..................................................... 22
7) WHY I AM INTERESTED......................................................... 28
8) TAXES APPLICATION............................................................. 31
9) PLANT LAYOUT....................................................................... 35
10) DEMAND OF PRODUCT........................................................ 43
11) SUPPLY OF RAW MATERIAL............................................... 44
12) SOURCES OF RAW MATERIAL...................................... ...... 45
13) MAJOR COMPETITORS.................................................... ...... 46
14) LEGAL ASPECT.................................................................... ... 48
15) CONCLUSION........................................................................... 50
16) WORDS OF THANKS.............................................................. 52
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6. BUSINESS PROPOSAL
1) PREAMBLE
VISION
"To provide customized services and delight customers."
MISSION
To provide quality services to its customers on demand at competitive prices.
Be recognized as the trusted service provider in Gangtok.
Drive long term profitable growth.
VALUES
Integrity
Innovation
Excellence
Quality
Responsibility
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7. BUSINESS PROPOSAL
2) PURPOSE OF STUDY
A hotel is an establishment that provides paid lodging on a short-term basis.
I select this particular project on hotel Industry to provide quality service to our customer.
In our Industry we are providing employment to local people directly. As the Hotel Industry in
India is a growing Industry therefore it provides a huge turnover.
Restaurant business is very flourishing business these days not in India only it has been termed
as an International Hotel and Restaurant Industry and it carries very brilliant prospects.
The need for advantage of Hotel Industry to Restaurant Standards has been felt very
recently due to advancement in the technology & industry due to which a lot of young million
are have come into existence. This class of people & many people from higher & medium of
people like to take advantage of this type of Restaurant system on many occasions.
After oil the world tourism is the largest single item of international trade today with the
increase in education discretionary income and in leisure and paid holidays, travel has
Grown rapidly in recent years.
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8. BUSINESS PROPOSAL
3) BUSINESS: HOTEL INDUSTRY
Building that provides lodging, meals, and other services to the traveling public on a
commercial basis. Inns have existed since ancient times (e.g., along the Roman road system
during the Roman Empire) to serve merchants and other travelers. Medieval European
monasteries operated inns to guarantee haven for travelers in dangerous regions. The spread of
travel by stagecoach in the 18th century stimulated the development of inns, as did the Industrial
Revolution. The modern hotel was largely the result of the railroads; when traveling for pleasure
became widely popular, large hotels were often built near railroad stations. In 1889 the Savoy
Hotel in London set a new standard, with its own electricity and a host of special services; the
Statler Hotel in Buffalo, N.Y. (1908), another landmark, catered to the growing class of business
travelers. After World War II, new hotels tended to be larger and were often built near airports.
Hotel chains became common, making purchasing, sales, and reservations more efficient. Hotels
fall into three categories: transient hotels; resort hotels, intended primarily for vacationers; and
residential hotels, essentially apartment buildings offering room and meal service
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of
basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small
table and a washstand has largely been replaced by rooms with modern facilities, including en-
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9. BUSINESS PROPOSAL
suite bathrooms and air conditioning or climate control. Additional common features found in
hotel rooms are a telephone, an alarm clock, a television, and Internet connectivity; snack foods
and drinks may be supplied in a mini-bar, and facilities for making hot drinks. Larger hotels may
provide a number of additional guest facilities such as a restaurant, a swimming pool or
childcare, and have conference and social function services.
A restaurant prepares and serves food and drink to customers. Meals are generally served and
eaten on premises, but many restaurants also offer take-out and food delivery services.
Restaurants vary greatly in appearance and offerings, including a wide variety of cuisines and
service models.
Upscale business hotels constitute the great middle ground of the hotel business, with a wide
price/quality spectrum. Unless you've been traveling on some other planet, you know the names
well: Crowne Plaza, Hilton, Hyatt, InterContinental, Marriott, Omni, Ramada, Renaissance,
Sheraton, Sofitel, Westin, Wyndham, and dozens of others, worldwide.
Midprice hotels
One of the "hottest" hotel market niches these days provides almost all the facilities and services
of a full-price business hotel but at a sharply lower price range. The midprice niche includes two
sub-segments:
Midprice full-service hotel chains are generally offshoots or variants on the big business-hotel
chains, including Hilton Garden Inn, Holiday Inn, Courtyard by Marriott, Ramada, and
Sheraton's Four Points.
A closely related segment-midprice limited service-provides almost the same facilities but a tad
fewer services. This sub-segment includes Drury, Fairfield, Hampton Inn, LaQuinta, and a dozen
or so others.
Budget motels
If you've ever had to stay in a small town along the highway, you've undoubtedly slept in a
budget motel. They're becoming ubiquitous outside cities. Almost all recent growth has been
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10. BUSINESS PROPOSAL
from the large chains. However, you still see a few low-end independents along downtown
highways bypassed by Interstates in some of the smaller cities.
Most of us know what we mean by a budget motel. Major brands include Comfort Inn, Days Inn,
Econo Lodge, Holiday Inn Express, Motel 6, Shoney's, Super 8, Travelodge, and a bunch of
others. Most of those brands are national throughout the U.S. and many are active in Canada, as
well.
Boutique hotels
The prototypical boutique hotel is an older city-center property that has been refurbished to a
degree that it can compete with newly constructed midprice and expensive business hotels.
Rooms tend to be smaller than at newer competitors, and they usually have fewer business
facilities than larger business hotels. However, many travelers have concluded that those
disadvantages are more than offset by more individualized decor and especially a high degree of
personal service from the staff.
Luxury hotels
The top-of-the-line segment includes such hallowed chain names as Fairmont, Four Seasons, and
Ritz-Carlton, some well known independents, and hotels that retain a unique individual name
even when they're part of a chain. Everything is opulent: rooms, lobbies, restaurants, shops, with
personal services and prices to match. They're located mainly in big cities. They provide
everything you could possibly want in a hotel—and probably lots of stuff you don't care about at
all.
Resort hotels
Chances are that you'll encounter resort hotels, if at all, only when you're attending meetings or
conventions at the resort. And in that case, your choice of hotel is made for you: Your only
decision is whether to accept the official convention rate or try for a bigger discount through
some other program.
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11. BUSINESS PROPOSAL
All-suite hotels
All-suite hotels have gained much popularity with business travelers, and for good reason.
Typically, you get 400-600 square feet of room, with separate "living" and "bedroom" areas, as
well as at least minimal kitchen facilities. The living area provides lots more space to spread out
your work than you find in the conventional room. And if you want to entertain a business
visitor, you can do it in a more businesslike living room or office setting rather than across a
possibly unmade bed.
Extended-stay hotels
A subset of the all-suite genre, extended-stay hotels cater to guests who stay five days or more.
Compared with more conventional all-suite properties, most of them have more space, overall,
plus larger, better equipped kitchens, often including a refrigerator, stove, and even a dishwasher.
Most of the big chains have in-room Internet access, about three-quarters of it high-speed. Prices
start at the high end of the budget motel range and go well up into the business hotel range.
Apartments and condos
Often, on an extended stay, you may prefer a real apartment or condo to a hotel, even an
all-suite hotel. Although such short term apartment arrangements are sometimes called
"vacation rentals," many are appropriate for business travel.
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12. BUSINESS PROPOSAL
4) THE LOCATION: GANGTOK
Hotel Address:
HOTEL WHITE PALACE
Address: M.G. MARG, Gangtok
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13. BUSINESS PROPOSAL
Phone Number:- 03592-222553/ 222105
Fax:-03592-222553
E-mail id: - WHITE_PALACE@Yahoo.com
Website:- WWW.WHITEPALACE.COM
Gangtok, the capital of Sikkim with a population of approximately 50,000 has emerged into the
mainstream of the Tourism Industry, with more and more tourist visiting this little Himalayan
state every year. Gangtok has developed into a cosmopolitan flavor where old-world charm and
hospitality exist along with the Internet Age.
This small town, lies atop a ridge, at an altitude of 5,800 ft, amidst a Himalayan setting, with the
world's third tallest peak Kanchenjunga at its east, and overlooking the river Ranikhola. Gangtok
meaning 'lofty hill' was said to have been a small village until it gained the status of an important
pilgrimage centre with the building of the Enchey Monastery in 1840. In 1975 with the end of
the monarchical rule, Sikkim was made an official state of India with its capital at Gangtok.
Gangtok is cultural and learning center of Tibetan Buddhists. For this the city has great
importance among the Buddhist people. The Gangtok is furnished with various attractive sites.
There are Deer Park, Dul-Dul Chorten, Government Institute of Cottage Industries, Kabi
Longstok, Kangchendzonga National Park, Kechopari Lake, Labrang Monastery, Lachung and
many more. During your tour you can have the sight of these places. You can get all the
pleasures of the world while visiting Gangtok. For the tourists of the world Gangtok Heritage
Hotels provide luxurious accommodation.
All the Heritage Hotels in Gangtok are the well-known place for the leisure tourists and business
personalities. You can spend your holiday at some of the popular Heritage Hotels in Gangtok.
Among them most popular is the Hotel Norkhil. You can have luxurious accommodation in
Gangtok while staying at these Heritage Hotels in Gangtok.
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14. BUSINESS PROPOSAL
In Gangtok Heritage Hotels you can have the very best of services and facilities that can make
your business trip or vacation tour memorable. Heritage Hotels in Gangtok are endowed with
huge, comfortable and luxurious rooms and suites with large numbers of accommodation
facilities such as attached bathroom, hair dryer, shower, bath tub, air-condition, cable television,
running water, mini bar, refrigerator, round the clock room service, refrigerator, internet access
and many more. There are numerous international restaurants at Heritage Hotels in Gangtok.
Our hotel is situated at the by-pass, 5-mint walk from the local taxi stand located amidst lush
green valley. Easily can access local of most famous market of M.G. Road.
Altitude: 1437 meters
Temp: Summer 25 (Max) & 14(Min) Degrees Celsius
Winter 16 (Max) & -1 (Min) Degrees Celsius
Best time to Go: March – April & October-November
Monsoon: May to September
Summer: April-May
Snowfall: December - January
Clothes: Light woolen in summer and heavy woolens in winter
Nearest Airport: Bagdogra, 130 km away
Railway Station: New Jalpaiguri - 124 km
Bus Station: Gangtok
Hospital & Doctor: Gangtok has a state-run District Hospital which can handle
emergencies.
Sightseeing: Enchay Monastery, Do-drul Chorten, Dodrupchen Monastery, Rumtek
Monastery, Tsongo Lake, Nathu La Pass.
CLIMATE:
Gangtok enjoys a mild, temperate climate all year round. Like most Himalayan towns, Gangtok
has five seasons: summer, monsoons, autumn, winter and spring. Temperatures range from an
average maximum of 22 °C (72 °F) in summer to an average minimum of 4 °C (39 °F) in winter.
Summers (lasting from late April to June) are mild, with maximum temperatures rarely crossing
25 °C (77 °F). The monsoon season from June to September is characterized by intense torrential
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15. BUSINESS PROPOSAL
rains often causing landslides that block Gangtok’s land access to the rest of the country. Rainfall
starts to rise from pre-monsoon in May, and peaks during the monsoon, with July recording the
highest monthly average of 649.6 mm (25.6 in). In winter temperature averages between 4 °C
(39 °F) and 7 °C (45 °F). Snowfall is rare, and in recent times Gangtok has received snow only in
1990, 2004 and 2005. Temperatures below freezing are also rare. During this season the weather
can be sporadic, and change abruptly from bright sunshine and clear skies to heavy rain within a
couple of hours. During spring and autumn the weather is generally sunny and mild. Owing to its
elevation, Gangtok is often enveloped in fog during the monsoon and winter months.
How to get to Gangtok:
Foreigners visiting Gangtok must possess an Indian visa. In addition to an Indian visa, foreigners
must obtain Inner Line Permit (ILP) to visit Sikkim. The permits can be obtained from all Indian
missions, Tourism Office, New Delhi, Sikkim Tourism Office, Calcutta and Sikkim Tourism
Office, Siliguri on the strength of an Indian Visa...more.
REGION: 27.33°N 88.62°E, M. G. Marg, Gangtok, East Sikkim, Sikkim
TRANSPORT: Private Taxis, Jeeps regularly on the Gangtok- Siliguri Highway and are
available for transfer of passengers between Gangtok and Siliguri/ New Jalpaiguri
Junction/ Bagdogra, and also for local sightseeing at fixed rates and may be reserved
through Tourist Bureau, Govt. of West Bengal, and Gangtok.
AIR CONNECTIONS: Nearest airport is Bagdogra in West Bengal (124 kms.)
HELICOPTER SERVICE - between Gangtok - Bagdogra - Gangtok
ROAD CONNECTIONS: Gangtok is connected with all weather mottled road with
Siliguri, Kalimpong, Gangtok etc.
RAIL CONNECTIONS: New Jalpaiguri in West Bengal (148 kms.)
Places to visit in and around Gangtok:
One of the tour sites of Gangtok is the Namgyal Institute of Tibetology. It was built in 1958 and
is a research center for Mahayana Buddhism and Tibetan culture. Besides being a museum of
traditional and old artifacts, tourists can also buy Buddhist religious books and other objects of
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craft. Gangtok also offers the Orchid Sanctuary, which is the home of some 500 varieties of
orchids to the travelers.
Another tourist attractions in Gangtok is Rumtek Gompa. The Gompa is a rich monastery and
abode of the head of the Kagyupa order of Tibetan Buddhism. Devotees and tourists often flock
to it throughout the year. Then there is the Tsongo or Changu Lake in the Northeast of Gangtok.
Tourists require special permits to travel to this picturesque locale.
1. Permanent Flower Show:
White Hall, Close by the White Memorial Hall and just below the Palace Ridge park is the more
recent Flower Show Hall. In recent years this show has become quite popular and famous as
there are flower exhibitions throughout the year in accordance with the seasons and the flowers
in bloom.
2. Enchey Monastery:
Located on a hilltop above Gangtok this monastery rebuilt in 1910 belongs to the Nyingmapa
order and was once the hermitage site of Lama Drupthob Karpo renowned for his power of
flying.
An important seat of the Nyingma order, the Enchey Monastery meaning the Solitary temple,
was originally built with the solace that no other construction would be allowed near it is built on
the site blessed by Lama Druptob Karpo, a tantric master known for his flying powers. This 200
year old Monastery has in its premises images of god, goddesses and other religious objects.
Every year around January 'Chaam' or religious masked dance is performed with great fanfare
for two days. it is situated adjoining the Sinolchu Tourist Lodge, 3 kms from Gangtok Town.
3. White Hall:
The White Hall has historical value and is situated on the Ridge. It is a two storied structure and
has typical British architecture and was built in 1932. It is so called not because it is, painted
white but because it was built in memory of the first Political Officer of Sikkim, Claude White.
There is an Officers' Club and a badminton court in the White Hall.
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17. BUSINESS PROPOSAL
4. Ganesh Tok:
It is a very small temple dedicated to Lord Ganesh, a diety worshipped by Hindus. The temple is
so small in size that it can hardly accommodate one person and one has to crawl to get inside it.
It is located on the hill adjoining the TV Tower. It is on a hillock on Gangtok-Nathula Road.
From here you can get a panoramic view of Gangtok town and the Raj Bhawan Complex and
on a clear day you get a breathe taking view of Mt. Khangchendzonga.
During the tourist season, a small cafeteria is opened for the convenience of the visitors. Just
adjoining the Ganesh Tok is a pinetum garden containing pine trees. A walk on the footpath
amongst the pine trees is refreshing.
5. Rumtek Dharma Chakra Center
A short drive from Gangtok will take you to Rumtek Dharma Chakra Centre. Built in 1960 by
His Holiness the late 16th Gyalwa Karmapa it is a replica of the original Kagyurpa Monastery in
Tsurphu, Tibet, the seat of His Holiness the Gyalwa Karmapa Rinpoche, head of the Karmapa
sub sect of Kargyudpa order of Tibetan Buddhism. It now functions as the headquarters of the
Dharma Chakra Religious Centre.
Located within the complex are the main monastery, the memorial stupa of the XVI Gyalwa
Karmapa inlaid with gold plate and semi precious stones, Shri Nalanda Institute for Higher
Buddhist Studies and the Jamyang Khang Primary School. The centre houses some of the world's
most unique religious scriptures, manuscripts and religious art objects.
A fifteen minute walk downhill from Dharma Chakra Center takes one to the Old Rumtek
monastery which was originally built in 1730 by the ninth Karmapa but was destroyed by fire
and had to be reconstructed to the present state. His Holiness late Gyalwa Karmapa lived in this
monastery till the completion of the Rumtek Dharma Chakra Center.
6. Jawaharlal Nehru Botanical Garden:
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18. BUSINESS PROPOSAL
Located very close to Rumtek Monastery just half a kilometer before reaching Rumtek
Monastery on the highway, it is maintained by the parks and Gardens unit of the Forest
Department of the Government of Sikkim, the Garden is an enchanting and soothing experience
among the lush green vegetation, rare plants and trees and certain species of Himalayan flowers
and Orchids.
This garden is a mixture of well tended tropical and temperate plants and trees can be found here.
A huge greenhouse containing many species of orchids has been constructed within the garden.
For children there is even a small playground with a merry-go-round, swings and a see-saw. A
cemented footpath winds its way through the garden and is good for taking a relaxed stroll. The
sprawling town of Gangtok can be seen on the hill opposite. The garden is indeed an ideal picnic
spot.
7. Tsongo/ Changu Lake:
The drive from Gangtok takes about 2½ hours by bus. The lake is about 1 km. long and oval
in shape, 50ft deep . This is an alpine zone and snowbound from December to April and the
lake is regarded extremely Holy holy and head of all lakes in Sikkim remains frozen from
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19. BUSINESS PROPOSAL
January to April, and attracts 99% of tourists visiting Gangtok, Sikkim. It is also a home of
Brahmini ducks besides stopover for various migratory ducks.
8. Nathula Pass:
The days for tourist visit is restricted and needs to be applied at least 24 hrs in advance and
limited days of operation. The days permitted to visit Nathula are Wednesday, Thursday,
Saturday and Sundays only. Photography is strictly prohibited in and around Nathula.
20 km further away from is the famed Nathula pass. The pass Nathula means the whistling pass.
Nathula is the Indo-China border at Jawahar Lal Nehru Road whereby Indian troops and the Red
army stand face to face. This is the closest an Indian Tourist can travel and pose a photo or two
with the Red Army.
What to Buy in Gangtok
Gangtok is indeed a treasure trove for its tourists. Besides curios you may pick up bronze and
silver jewelry, turquoise, coral jewelry and beads easily from Gangtok. For the food freaks
Gangtok offers the dried fish, yak's cheese (churpi), and yeast for making the local beer (tomba).
Gangtok also offers several options for gift items and souvenirs. You may take your pick from
carpets, handloom fabrics, thangka paintings and wooden objects
Adventure Sports in Gangtok
For the adventure tourist Gangtok is the place to be at. While at the hill resort of Gangtok you
may indulge in adventure activities like trekking, white-water rafting, hang gliding, yak safari,
and mountain biking. Gangtok offers interesting treks to the Pemayangtse, Khechopalri,
Yuksam, Tsokha, Dzongri, Thangshing, Zemathang, Chaurigang, Tashiding, Varsey, Yangang,
Rabongla, Sang and Sikip. The state tourism department of Sikkim has been promoting the
adventure tourism potential of Gangtok.
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20. BUSINESS PROPOSAL
Fairs and Festivals of Gangtok
Fairs and festivals celebrated in Gangtok add to the charm of the hill resort. The Tashiding
Gompa hosts the annual Buddhist festival of Bumchu in January. During January-February the
dancing festival of Chaam is held in Enchey Gompa. The monthly mask dance of Kagyat is
another attraction in the hill resort. Saga Dawa is held in Gangtok during May, and Drukpa Teshi
is celebrated throughout Sikkim during July mark Buddha's first teaching.
Foreigners visit in Gangtok
All foreigners intending to visit Gangtok can obtain 14 days Restricted Area Permit (RAP),
endorsed in their India visa from the Indian mission abroad. Tourists may also obtain the permit
from the Deputy Director, Sikkim Tourist Information Center in Delhi or from the Assistant
Director, Sikkim tourist Information Center in Siliguri.
Any tourist is allowed to visit Sikkim for a maximum of 15 days and obtain an extension of
another fortnight only from the Home Office (Tashling Secretariat). Re-entry into the state is not
permitted for three months even if one returns before the completion of the first fifteen days.
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21. BUSINESS PROPOSAL
5) MAN POWER REQUIREMENT
As our hotel and restaurant is running on a large scale and it is situated in the heart of Gangtok
where our customer will be enjoying the beauty of nature. So it will become our duty to serve
our customer the BEST and very fast too but on the other side of the coin from the owner point
of view we will also reducing the cost of our staff and have to choose that number of staff
member which will suit and give benefit to both the sides. So the staff recruitment is as follows:
POST NUMBER SALARY/WAGES (Rs)
MANAGER 1 12,000/-
ASST. MANAGER 1 8,000/-
COOK 2 12,000/-[6,000×2]
WAITER 6 24,000/-[4,000×6]
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22. BUSINESS PROPOSAL
ELECTRICIAN 1 4,000/-
HELPERS 5 20,000/- [4,000×5]
ACCOUNTANT 1 6,000/-
TOTAL - 80,000/-
6) TECHNICAL KNOW HOW
You're likely to spend more, on any given trip, for hotel accommodations than for air travel. So
paying attention to hotel rates is worth your time.
Hotels and other accommodations are much better than airlines at providing a
satisfactory experience for business travelers: A really bad night in a business hotel is about as
rare as a really good flight in coach. Price generally correlates with quality, and even the low end
of the quality spectrum provides adequate comfort and convenience.
The rules - Review the different hotel classes.
The strategy - Decide what will determine the way you choose a hotel.
Making the deal - Read up on the steps to maximum value.
The rules
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23. BUSINESS PROPOSAL
Instead of sticking strictly to price, you'll find it more useful to think about hotel categories that
reflect a combination of price and features. Undoubtedly, you're most apt to stay in a business
hotel. Sometimes, however, other options can provide either more value or a more pleasant
experience. Here's my take on the main sorts of hotels you'll encounter.
Business hotels
Upscale business hotels constitute the great middle ground of the hotel business, with a wide
price/quality spectrum. Unless you've been traveling on some other planet, you know the names
well: Crowne Plaza, Hilton, Hyatt, InterContinental, Marriott, Omni, Ramada, Renaissance,
Sheraton, Sofitel, Westin, Wyndham, and dozens of others, worldwide.
Midprice hotels
One of the "hottest" hotel market niches these days provides almost all the facilities and services
of a full-price business hotel but at a sharply lower price range. The midprice niche includes two
sub-segments:
Midprice full-service hotel chains are generally offshoots or variants on the big business-hotel
chains, including Hilton Garden Inn, Holiday Inn, Courtyard by Marriott, Ramada, and
Sheraton's Four Points.
A closely related segment-midprice limited service-provides almost the same facilities but a tad
fewer services. This sub-segment includes Drury, Fairfield, Hampton Inn, LaQuinta, and a dozen
or so others.
Budget motels
If you've ever had to stay in a small town along the highway, you've undoubtedly slept in a
budget motel. They're becoming ubiquitous outside cities. Almost all recent growth has been
from the large chains. However, you still see a few low-end independents along downtown
highways bypassed by Interstates in some of the smaller cities.
Most of us know what we mean by a budget motel. Major brands include Comfort Inn, Days Inn,
Econo Lodge, Holiday Inn Express, Motel 6, Shoney's, Super 8, Travelodge, and a bunch of
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24. BUSINESS PROPOSAL
others. Most of those brands are national throughout the U.S. and many are active in Canada, as
well.
Boutique hotels
The prototypical boutique hotel is an older city-center property that has been refurbished to a
degree that it can compete with newly constructed midprice and expensive business hotels.
Rooms tend to be smaller than at newer competitors, and they usually have fewer business
facilities than larger business hotels. However, many travelers have concluded that those
disadvantages are more than offset by more individualized decor and especially a high degree of
personal service from the staff.
Resort hotels
Chances are that you'll encounter resort hotels, if at all, only when you're attending meetings or
conventions at the resort. And in that case, your choice of hotel is made for you: Your only
decision is whether to accept the official convention rate or try for a bigger discount through
some other program.
All-suite hotels
All-suite hotels have gained much popularity with business travelers, and for good reason.
Typically, you get 400-600 square feet of room, with separate "living" and "bedroom" areas, as
well as at least minimal kitchen facilities. The living area provides lots more space to spread out
your work than you find in the conventional room. And if you want to entertain a business
visitor, you can do it in a more businesslike living room or office setting rather than across a
possibly unmade bed.
Extended-stay hotels
A subset of the all-suite genre, extended-stay hotels cater to guests who stay five days or more.
Compared with more conventional all-suite properties, most of them have more space, overall,
plus larger, better equipped kitchens, often including a refrigerator, stove, and even a dishwasher.
Most of the big chains have in-room Internet access, about three-quarters of it high-speed. Prices
start at the high end of the budget motel range and go well up into the business hotel range.
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25. BUSINESS PROPOSAL
Apartments and condos
Often, on an extended stay, you may prefer a real apartment or condo to a hotel, even an all-suite
hotel. Although such short term apartment arrangements are sometimes called "vacation rentals,"
many are appropriate for business travel.
The strategy setting the standard
Setting a quality standard for hotel accommodations is straightforward. The industry provides a
spectrum of price and quality points, with small increments between adjacent levels. The Official
Hotel Guide publishes a widely accepted classification system for hotels, based on 10 levels. The
cost of moving up from one notch to the next-from "Superior Tourist" to "Moderate First Class,"
say-is likely to be no more than about 10 to 15 percent. When you set a company standard, it's
easy to specify "Moderate First Class" or "Holiday Inn or equivalent" for hotels and be sure of a
reasonably consistent standard.
Common sense is probably more important with hotel choice than with any other major
element of travel expense. You don't want your employees (or even you, yourself) to live it up in
lavish accommodations, but you don't want to be in scruffy cheap hotels, either.
Location is often the main factor in selecting a hotel-sometimes the only factor. You may want
to stay near an office or person you're visiting or a convention center. Other times you may
prefer to be in a city center or near an airport. Sometimes, particular needs, such as free, easy, in-
and-out parking will influence your location choice.
Loyalty vs. lowest price
In my point of view, the pull of any hotel chain's frequent stay program is far less potent than the
lure of airline frequent flyer programs. Although the big chains' elite frequent stay levels provide
some significant benefits, they pale by comparison to frequent flyer upgrades. Accordingly,
you're much more likely to spread your hotel business around among many different chains and
individual hotels than you are your airline business.
We want to select a preferred hotel chain-one that you use, preferentially, whenever it has a unit
in one of your destinations and the price is right-or close to right. You'll generally settle on your
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26. BUSINESS PROPOSAL
preferred chain either because you like its position in the product/price spectrum or you want to
build status and credit in its frequent stay program.
If you travel frequently, but to a small number of destinations, your best bet is to arrange some
sort of preferential deal with an individual hotel in each of those destinations. You'll undoubtedly
get a better deal directly from an individual hotel manager than you ever would through a chain-
wide frequent stay or corporate program.
If your trips take you to many different destinations, you may want to consider a chain-wide deal
with one of the larger chains. Select one in the price range you like and negotiate.
But, in my view, you'll pay less, on average, by forgetting a preferred-supplier deal and instead
playing the various discount sources. As a small business, you probably can't generate even close
to enough volume to warrant a really good corporate deal, anyhow, and the discounters can
usually beat the run-of-the-mill corporate discounts you can get. Moreover, even a very large
chain may not have enough locations to satisfy all your requirements.
Making the deal
As with air trips, the first step is to set a benchmark. Often, your benchmark hotel is obvious: a
place where you've stayed before, one recommended by a client/customer/supplier, or the site of
a meeting/conference you're attending. If that's the case, call the hotel, its chain's toll-free
reservation number, or visit its website. Check for the best available rate—perhaps even book a
room, since you can cancel if you find a better deal. If you know of two or three possible options,
treat them the same way. In any case, you'll quickly develop a pretty good idea about the
benchmark list price.
Once you've determined your benchmark(s), it's time to check the tradeoff options.
1. Check first for a lower price at your benchmark hotel. Find out if your travel agency's
negotiated-rate program includes your selected hotel, whether one or more of the larger discount
agencies/brokers handles it, or whether it's listed in a half-price program, and, if so, get the
discount price.
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27. BUSINESS PROPOSAL
Be careful to check cancellation penalties along with rates: Even the most lenient discounters
now frequently require two to three full days' notice for a no-fee cancellation. You may also try
checking your benchmark hotel in the directory of any half-price program to which you've
subscribed.
2. If your benchmark seems expensive, you may also look-in the same places—for a better deal
at a different hotel in the same general category as your benchmark.
3. Next, consider whether you need or would like a different sort of accommodation—or at least
want to consider one. Do you need to keep costs to a minimum for this trip by staying in a
budget motel or economy hotel? Would you like to find an all-suite hotel, or a boutique, or a
B&B, or a luxury hotel, or even a nearby resort? Are you going to be in one place long enough to
consider an extended-stay hotel or apartment rental?
5. For a special niche accommodation, the full-line discount sources deal with all-suite hotels,
extended-stay hotels, and resorts through the same inventory lists as their conventional midprice,
business, economy, and deluxe hotels. However, for such other niche accommodations as B&Bs
or apartment rentals, check with one of the websites that specializes in arranging such
accommodations.
6. If you're sure you won't have to change your plans, consider an opaque site such as Hotwire or
Priceline. First, establish some sort of minimum price differential you'll accept to offset the
inconveniences of the opaque site. I usually won't go for an opaque deal unless it's at least $25 a
night under the best in-the-clear deal I can find, and if I really like a hotel, I'll up that minimum
difference to around $50 a night. If you can't cut your costs by at least that much, the risks of
opaque buying generally outweigh a trivial price gain.
On Hotwire, look for a hotel in the same location and quality/price level, and accept it if it beats
whatever minimum differential you establish. On Priceline, underbid your best alternative deal
by the differential you've established.
Alternatively, if you like luxury on the cheap, look for or bid the same amount of money you'd
otherwise spend but aim for a hotel that is one or two classes above your other choice(s).
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28. BUSINESS PROPOSAL
7) WHY I AM INTRESTED
It's the easiest to use hotel business plan program available today. A hotel business plan program
that produces faster results than any other, and a business plan program brought to you by a
company with over 25 years of related experience. Its structure is the preferred format today and
it offers you a hotel template that includes all that should be included in a hotel business plan
geared toward success. The financial projection workbook is the best in the world and knows no
competition. Use Plan Magic Hotel for the startup of a hotel, beach hotel, ski hotel, or any kind
of hotel, or for analyzing and improving the financial situation of an existing hotel business.
Restaurant business is very flourishing business these days not in India only it has been
termed as an International Hotel and Restaurant Industry and it carries very brilliant prospects.
The need for advantage of Hotel Industry to Restaurant Standards has been felt very
recently due to advancement in the technology & industry due to which a lot of young million
are have come into existence. This class of people & many people from higher & medium of
people like to take advantage of this type of Restaurant system on many occasions.
After oil the world tourism is the largest single item of international trade today with the
increase in education discretionary income and in leisure and paid holidays, travel has
Grown rapidly in recent years.
If same growth rate is maintained through year 2o11 then the affluent, the first time travelers
and those with time to spare would begin to move in such numbers at international
Airports that these are grave doubts whether the industry could
Cope up with them at all or not.
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29. BUSINESS PROPOSAL
Gangtok is located in the North Eastern part of India in the lower Himalayas in the state of
Sikkim. The city is situated at an altitude of about 1780 m above the sea level and enjoys a mild
temperate climate throughout the year. Integration of different cultures in the region makes this
place a heaven on earth. The city has a large number of tourist attractions which draw people
from all around the world to this wonderful city of India. We at Touristplacesinindia.com
provide you with complete information on all that you want to know about Gangtok, the Capital
of Sikkim.
Fast Facts
Area: 954 sq km.
Climate: Tropical, temperate and alpine climate
Maximum temperature: 16.6°C
Best time to Visit: March – April & October-November
Minimum temperature: 10°C
Literacy rate: 82%
Tourist visit: 39,000 (2007)
47,000 (2008)
There are many places of tourist interest in and around the city of Gangtok. Important among
them include the Enchey Monastery, Permanent flower show in the white hall close to the white
memorial hall, Do-Drul Chorten stupa, Handloom and Handicrafts centre, Namgyal Institute of
Tibetology, Saramsa Garden, Rumtek Dharma Chakra Centre, Jawaharlal Nehru Botanical
Garden, Tashi View Point, Sa-Ngor-Chotshog Centre and the Ganesh Tok. Othhers include the
Pemayangtse Monastery, Sanga-Choling Monastery, Khecheopalri Lake, Tashiding Monastery,
Phodong Monastery, Phensang Monastery, Singhik – the place which offers the closest and most
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30. BUSINESS PROPOSAL
spectacular view of Kanchanjunga, Chungthang, Lachung, Yumthang, Guru-Dongmar Lake,
Temi
Tea Garden and the Menam Hill.
Gangtok has a well developed transportation network. The city is well
accessible by road from the airport and the railway station. The nearest airport is at Bagdogra
near Siliguri. This airport is connected with Netaji Subhas Chandra Bose International Airport at
Kolkata by regular flight services. From the airport one can hire private cars to reach Gangtok.
The nearest railhead is at New Jalpaiguri which is connected by regular train services from
Kolkata.
Gangtok, the Capital city of Sikkim provides a wide range of accommodation which ranges from
Deluxe and Luxury hotels to budget and economy hotels. Some of the hotels which provide
accommodation in Gangtok include the Hotel Nor Khill, Royal Plaza, Golden Heights, Silk route
Residency, Hotel Golden Pagoda, The Sikkim Continental, Hotel New Castle, Cherry Guest
House, Hotel Crystal Palace, and Hotel Central to name a few. These hotels in Gangtok provide
the most comfortable accommodation and dining facilities and promise a hassle free stay in the
city.
Touristplacesinindia.com is an international travel site and a repository of useful information
about Gangtok and on other related information about the city.
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31. BUSINESS PROPOSAL
8) TAXES APPLICABLE:
Federation of Hotels and Restaurant Association of India
Rationalize tax structure
In order to remain competitive with other destinations in Asia like Malaysia, Indonesia, etc,
which has a low level of taxation, hotels in India need to be subjected to a rational tax structure
(i) Direct taxes
Section 80IA: Infrastructure status for the hotel industry
In the list of infrastructure projects, hotels may be included just like airports, seaports, and
railways, etc.
In fact under Section 10 (23) g of the Income Tax Act, hotels were added to the infrastructure list
so that the interest received by financial institutions and banks for loans extended to hotels were
tax exempted. However, the section itself was discontinued with effective from April 1, 2007.
All new hotel projects will be able to avail the benefit of deductions of 100 per cent with respect
to profits and gains for a period of 10 years. This will lead to many new hotel projects being set
up, with companies re-investing their profits in the hotel sector.
Further, it will help in channeling huge investment about Rs 50,000 crore (Rs 500 billion) in the
tourism sector in next 3-4 years and quickly bridge the shortfall of hotel accommodation.
Deduction in respect of earnings in convertible foreign exchange under Section 80HHD
Section 80 HHD gives tax exemption from the export profits to exporters. If this is granted to the
hotel industry, it would help companies to reinvest profits for building additional capacity.
Section 80-IC
As per Section 80-IC of the Income Tax Act, any undertaking commencing any operation
specified in the Schedule XIV and having undertaken substantial expansion during the period
from January 7, 2003, to April 1, 2012, to promote eco tourism in the special category states
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32. BUSINESS PROPOSAL
(like Sikkim, Assam, Tripura, Meghalaya, Mizoram, Nagaland, Manipur, Arunachal Pradesh,
Uttaranchal and Himachal Pradesh are exempt from income tax for five years, for promoting eco
tourism in the country.
But the income tax authorities have denied deductions to hoteliers on the ground that the activity
of a hotel does not constitute an operation as specified in Schedule XIV of the Income Tax Act
and they have also directed the hoteliers to explain the eco tourism activity in their project.
The hotel sector seeks a liberal view to include hotels as an eligible activity of eco tourism in
Schedule XIV, to enable them to claim the above benefit.
Deduction to be made in computing total income under Sec 80
While calculating the total income of an individual deduction of LTC paid to an employee be
admissible, as in the case of other deductions via PF, Mutual Funds, LIC, etc. This will promote
domestic tourism all over India and increase revenues for the government.
Section 80-ID
In the Income Tax Act 2007-08, Section 80 ID was introduced to give encouragement to 1, 2, 3
and 4 star hotels and convention centres of a minimum seating capacity of 3,000 persons being
set up in the National Capital Region of Delhi , Gurgaon, Faridabad, etc, for the Commonwealth
Games in 2010.
A tax holiday for five years was granted to these hotels that would open before March 31, 2010.
The areas covered under this section were further expanded in the Budget proposal 2008 to
several other locations. Presently, the benefit is extended to new hotels set up in the specified
region and the benefits are not allowed to substantial expansions of hotels and resorts in these
regions.
Substantial expansions of room capacity in excess of 30 per cent of the existing capacity should
also be treated eligible for the tax holiday benefits. The coverage of the benefits granted under
this section should be extended to all categories of hotels throughout the country, and those
which open in the next 10 years.
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33. BUSINESS PROPOSAL
Section 32
Hotel buildings are considered as plants for the hotel industry as they are utilized for 24 hours.
The industry is required to make heavy investments in renovation, up gradation and upkeep of
the hotel buildings at all times to keep it in pristine condition.
Section 32 of the IT Act should be amended to restore the depreciation rate to 20 per cent.
(ii) Indirect taxes
Service tax
Hotels and other tourism related service providers who earn foreign exchange have been
included as the 13th sector in the Service Export Promotion Council set up by the ministry of
commerce, government of India.
As such, they may be granted exemption to the extent of foreign exchange earned for the
following services provided by the hotels, ie banquet rentals, rent-a-cab, dry cleaning services,
health club or fitness centre services, beauty parlour services, internet cafe services,
club/association service, business support services, business auxiliary services, management
consultant services, renting of immovable property, etc.
Custom duty
The customs duty structure should be rationalised for hotels and restaurants in tune with the
international practices, to enable the Indian service sector to compete with their international
counterparts.
This is specially so for import duty payable by small sized hotels and restaurants who do not earn
substantial foreign exchange and therefore, are not eligible for any of the Export Promotion
Capital Goods schemes.
Excise duty
Seeks excise duty exemption on supply of food preparations (as part of their food and beverage
services) by hotels or restaurants to their by guest (staying in the relevant hotel).
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34. BUSINESS PROPOSAL
Also, hotels and restaurants with turnover less than Rs 1.50 crore (Rs 15 million) should be
exemption from paying central excise duty on the products produced and consumed within the
premises.
(c) Interest subvention to employment intensive sectors
The 2 per cent interest subvention extended to employment-intensive sectors like textiles,
leather, marine and handicrafts as announced in the relief package announced by the government
of India on December 8, 2008, should be definitely extended to the hotel sector as their
employment generation capacity is much more than these sectors.
(d) Declaration of tourism as an industry under the Industries Act 1951
Many states in India have already granted industry status to tourism and the industry seeks the
remaining state governments as well as the central government to recognise tourism as an
industry.
It is also requested to declare tourism as an industry under the Schedule 1 of the Industries
Development Act, 1951.
(e) Luxury tax
Luxury tax varies widely across services and states. Also, in the most of sales it is charged on the
published tariff by not considering the commissions paid to agents and discount offered to walk-
in clients.
So the industry seeks exemption of luxury tax on the room tariff less than Rs 2,500 and to charge
a uniform rate of 4 per cent on the actual tariff where room rent is Rs 2,500 or more per day.
(f) VAT/Sales tax and other taxes
Vat/Sales tax on food & beverage are different for each state and it should be uniform over the
country. It will help in many hotel projects coming up all over the country which leads to
lowering hotel tariffs and generating employment.
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35. BUSINESS PROPOSAL
9) PLANT LAYOUT
LAND AND BUILDING: AMOUNT (Rs)
1) Land 250 Sq. meter. 20,00,000/-
2) Building area 40 Sq. meter 10,00,000/-
Total- 30, 00,000/-
PLANT AND MACHINERY Amount (Rs)
1) Kitchen equipment- 5,00,000/-
OTHER FIXED ASSETS Amount (Rs)
1) Office equipment, furniture, other equipment & accessories 5,00,000/-
2) Installation costs for water, electricity, fuel etc. 2,50,000/-
3) Pre operative expense. 2,50,000/-
4) Wood work (indoor & outdoor, window) 2,50,000/-
5) Telephone & Internet 50,000/-
6) Architect’s fees & other design works 1,00,000/-
7) Generator set 1,00,000/-
Total: 15, 00,000/-
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36. BUSINESS PROPOSAL
TOTAL FIXED CAPITAL Amount (Rs)
1) Land & building 30,00,000/-
2) Plant & machinery 5,00,000/-
3) Other fixed assets 15,00,000/-
50,00,000
_______________
WORKING CAPITAL
COST ESTIMATION
WORKING HOURS/DAY = 10 HRS.
WORKDING DAYS/YEAR = 300 DAYS.
WORKING CAPITAL REQUIREMENTS/DAY (For 100 diets/day)
In the hotel there are a number of items which are served.
We are taking the average cost of raw materials.
(I) CHICKEN (MUGLAI):
1. Muglai dish
2. Chicken biriyani
3. Mutton Biriyani
4. Chicken Soup
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37. BUSINESS PROPOSAL
5. Chicken Masala
6. Chicken Curry
7. Hot Dog
8. Fish
9. Egg Curry
10. Fish Fry
11. Shahi Kabab
12. Shahi Tarka
13. Soup
14. Pulao
15. Chicken Pulao
16. Tandoori Chicken
17. Butter Chicken
18. Others
For 35 diets average cost of raw material/diet
@ Rs. 70/-per diet Rs. 2450/-
(II) CHINESE DISHES
Remaining about 20 diets average cost of raw material/diet
@ Rs. 8.00/-per diet Rs. 160/-
(III) SOUTH INDIAN DISHES
1. Dosa
2. Idli
3. Masala Dosa
4. Curd Rice
5. Plain Rice
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38. BUSINESS PROPOSAL
6. Others
10 diets average cost of raw materials for the above Rs. 9/-
Per diet Rs. 90/-
(IV) NORTH INDIAN DISHES:
1. VEGETABLE:
a) Cholla
b) Matar Paneer
c) Kofta Paneer
d) Allu Mutter
2. Rice
3. Kulcha
4. Kacheri
5. Bhatura
6. Samosa
7. Chabate
8. Dal etc.
For 30 diets average cost of raw material/diet
@ Rs. 7-/-per diet Rs. 210/-
9. Cost of Drinks & fruit juice 150
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39. BUSINESS PROPOSAL
@ Rs. 10.00/-per Drink Rs. 1500/-
10. Consumption of assorted snakes tea, coffee,
espresso coffebon 350/-cups
Cost of raw material @ Rs. 1.00/-per cup = Rs. 350/-
Total- Rs.4765/-
Other Consumption/daily Rs. 500/-
Total - Rs.5265/-
Amount (Rs)
Raw material expenditure per month- 1,31,625/-
Salary & wages 70,500/-
UTILITIES AND OVERHEADS
Amount (Rs)
1) Electricity bill 12,000/-
2) Fuel charge 5,000/-
3) Telephone & Internet bill 9,000/-
4) Repair & maintenance expenditure 12,000/-
5) Transportation & expenditure on vehicles 12,000/-
6) Advertisement & publicity 10,000/-
7) Miscellaneous expenditure 12,000/-
Total- 65,000/-
TOTAL WORKING CAPITAL PER MONTH Amount (Rs)
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40. BUSINESS PROPOSAL
Raw material expenditure 1,31625/-
Salary & wages 70,500/-
Utilities & overheads 65,000/-
Total- 2, 21,625/-
TOTAL CAPITAL INVESTIMENT
Amount (Rs)
Total fixed capital 33,35,000/-
Working capital requirement for one month 2,21,625/-
Total- 35,56,625/-
COST OF PRODUCTION PER ANNUM
Amount (Rs)
1) Working capital for one year 26,05,500/-
2) Interest @ 12% on 50% total capital (14,00,000/-) 1,68,000/-
3) Deprecation @ 10% on building 72,000/-
4) Deprecation @ 20% on plant & machinery 16,000/-
5) Deprecation @ 10% on other fixed assets 54,000/-
Total- 29,16,000/-
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41. BUSINESS PROPOSAL
TURNOVER PER ANNUM
Hotel
Amount (Rs)
1) Single bed room (1000×7) 7000/-
2) Double bed room (750×7) 5250/-
3) Dormitory (200×7) 1400/-
Total- 13,650/-
Tourist season 4 month (4×30) - 120 days
Off season 210 days (30% full) - 70 days
Total- 190 days
Annual receipts 190 days×13650/-
= 25,93,500/-
Restaurant
Amount (Rs)
1) Mughlai 35 diets per day (330×35) @ 120/- per diets 13,86,000/-
2) Chinese dish 20 diets per day @ 110/- per diets 7,26,000/-
3) North Indian dish 30 diets per day @ 80/- per diets 7,92,000/-
4) By snacks, tea, coffee, etc 350 cups per day @ 12/- 13,86,000/-
Total- 48,90,000/-
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42. BUSINESS PROPOSAL
TOTAL RECIEPTS
Hotel Rs- 25,93,500/-
Restaurant Rs- 48,90,000/-
Total- Rs-74,83,500/-
PROFITS
Profit = Receipts-Cost of production
= 74,83,500 – 29,16,000
= 45,67,500/-
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43. BUSINESS PROPOSAL
10) DEMAND OF PRODUCT
Restaurant business is very flourishing business these days not in India only it has been termed
as an International Hotel and Restaurant Industry and it carries very brilliant prospects.
The need for advantage of Hotel Industry to Restaurant Standards has been felt very recently
due to advancement in the technology & industry due to which a lot of young million are have
come into existence. This class of people & many people from higher & medium of people like
to take advantage of this type of Restaurant system on many occasions.
After oil the world tourism is the largest single item of international trade today with the
increase in education discretionary income and in leisure and paid holidays, travel has grown
rapidly in recent years.
Every year the number of tourist are increasing year by year. The number of tourist to
information of Sikkim Tourism Industry, the no of tourist visited Gangtok was 39000 in 2006,
and 42000 in 2007, and in 2008 it was 47000. And it is expected around 52000 in 2009.
So all this data gives us information about the tourist who visited Gangtok and according to this
data it is very clearly proof that the Gangtok proves to be a very healthy ground to starts the hotel
industry in Gangtok.
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44. BUSINESS PROPOSAL
11) SUPPLY OF RAW MATERIAL
As our business is of hotel sector and our business is engaged in both accommodation and
restaurant, so the raw material which are required are to be handled with care so that the services
which we provide to our customer should be very much accepted by the customers and should
also give satisfaction to them. As our hotel is situated in the hard of Gangtok with the beauty of
nature, so this both things give boost to our hotel and also a positive aspect for our hotel
business. That’s why as we know that raw material is a very important factor (restaurant) for our
hotel because 50% of the quality of our hotel depends our department, so keeping in mind, we
should provide to our customer a healthy, hygienic and nuterious meal to our customer.
So supply of raw material is one of the most important aspects for our business. So supply of raw
material is as follows:
Non-veg items
Veg items
Spices
Snacks
Gas
Cleaning materials( phenyl, detergents, etc.)
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45. BUSINESS PROPOSAL
12) SOURCES OF RAW MATERIAL
As our business is of hotel sector and our business is engaged in both accommodation and
restaurant, so the raw material which are required are to be handled with care so that the services
which we provide to our customer should be very much accepted by the customers and should
also give satisfaction to them. As our hotel is situated in the hard of Gangtok with the beauty of
nature, so this both things give boost to our hotel and also a positive aspect for our hotel
business. That’s why as we know that raw material is a very important factor (restaurant) for our
hotel because 50% of the quality of our hotel depends our department, so keeping in mind, we
should provide to our customer a healthy, hygienic and nuterious meal to our customer.
Our sources are very much reliable at the point of view of quality. They all are government
registered, or registered by local municipalities. Our raw material sources are as follows:
Akif Butcher Shop, 31 A NH,
Gangtok.
Ph. No- 03592-222823
Gangtok sabji mandi,
Gangtok.
Lama Groceries,
Tadong, Gangtok.
Oh. No-03592-223215/ 227884
Rai Gas Agency (HP)
31 A NM, Gangtok.
Bahadur departmental store,
M.G. Marg, Gangtok,
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46. BUSINESS PROPOSAL
Ph. No- 03592-225057/ 224439
13) MAJOR COMPETITORS
MAJORE COMPETITORS
Hotels in Gangtok treat visitors with the stunning view of the world's third highest peak-
Mt. Kanchenjunga. Many hotels in Gangtok located within the heart of the city, offer easy access
to nearby tourist destinations as well as shopping arcades. For tourists seeking quiet and serene
atmosphere, they can rightly choose Gangtok hotels which are located amidst lush green valleys,
in the outskirts of the city. Gangtok as a hill station is gaining lot of popularity amongst both
domestic and inbound tourists. Therefore all the hotels in Gangtok offer unique decor with
exceptional services to make the tourists have a memorable experience. So some of our
competitors are...
1. Cherry guest house, Gangtok:
Cherry guest house is located in the Gangtok main town. Its 2 minutes walk from the
local taxi stand. The Cherry guest house is not a typical hotel but is part of a nice Cottage
complex known as the Rai Cottage Complex. It has large specious rooms.
2. Hotel Central, Gangtok
Hotel Central is located near the shopping area in Gangtok. The hotel is an ideal venue
for conducting business conferences and seminars. It is also suitable for the leisure as
well as the corporate travelers.
3. Hotel Crystal Palace, Gangtok
Hotel Crystal Palace brings you a platter of all that a traveler craves for while you visit
the heavenly regions of THE HIMALAYAS. Situated in the heart of the city of
GANGTOK, Surrounded by scenic beauty on all sided, the hotel is only a minute.
4. Hotel Golden Heights, Gangtok
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47. BUSINESS PROPOSAL
Hotel Golden Heights Gangtok is a 3 star hotel situated in the heart of Gangtok town.
Pioneering a tradition in hospitality, Hotel Golden Heights is specialized in offering its
guests the good of facilities in terms of accommodation.
5. Hotel Golden Pagoda , Gangtok
Situated in the heart of Gangtok, Hotel Golden Pagoda offers hospitality & service which
is unparallel in Sikkim. Offering a genuine Sikkimese ambience in its architecture.
6. Royal Plaza, Gangtok
The Royal Plaza Amidst such lush green hilly terrains, a breathtaking topography and
misty mountains, emerges The Royal Plaza at Gangtok, the Capital of Sikkim.
7. Hotel Rendezvous, Gangtok
One of the deluxe hotels in this part of Sikkim, Hotel Rendezvous in Gangtok, is
Rendezvously at the heart of the town at 2-3 minutes walking distance from the market.
With its scenic location, ethnic Tibetan ambience, excellent service it is famous in
Gangtok.
8. Hotel Soyang, Gangtok
Located on the M. G. Marg - in the heart of Gangtok, Sikkim Hotel Soyang is Gangtok's
best located luxury hotel. Here attentions to details create a soothing blend of warm,
effortless service and harmonious spaces!
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48. BUSINESS PROPOSAL
14) LEGAL ASPECTS
To start a business you have to make sure all aspects of it is in order. If one area is not
satisfied, you may face problems later. One such problem you must look into before you
even settle into your business is the legal aspects of it. You better make sure your legal
issues are covered or you may not have a business to start.
There are several issues you must be concerned with regarding starting a business
and these involve several aspects of legal situations including zoning regulations and
how the land or property you acquired is used.
In every city or county there are zoning regulations that you must adhere to. If
you start your business and place it in a commercial area, you may not need to worry
about zoning regulations. But if you have a business and you place it in a residential
area, you must look at the zoning requirements to operate it there. This is especially true
if your business is operated in the home.
When you are confronted with zoning regulations, you must contact the zoning
board in your town or the local law library to find out what the zoning areas are. If you
have to speak to the zoning board and ask them what laws you have to be familiar with
and what the zones are where you want to place your business. If you are running your
business in your home, make sure you are allowed to run it there first. If the zoning
regulations do not allow you to operate a business from your home, you will have to file
a zone variance just to be able to operate your business from your home. The zone
officers will evaluate the area where you want to establish your business and see if it is
okay to do so.
They will talk to your neighbors to see how they feel about you having a business in that
neighborhood. If your neighbors do not accept it, you won't stand a chance. But if they
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are agreeable to it, the zone board will consider your application and when the next zone
board meeting is held, they will consider the change and notrfy you shortly after the
conclusion of that meeting if you have been approved the variance or not. If you have
not been approved, you will probably have to relocate the business somewhere else. If
you are approved, there may be some restrictions. Make sure to get it in writing so you'll
know where you stand.
When you are using your land, you have to be sure the land is favorable to the city,
town, or county where you live or having your business. Check to see if the property has
any restrictions. If there are restrictions you may not be able to use that property for
your business. If there are no restrictions, you may be free and clear to do business at
that location.
Always check the legal system before you decide on a location for your business. This
will help you to plan your business start up accordingly. You don't want any surprises or
hindrances to stop you from starting or running your business.
Martin Lukac represents RateTake Refinance Rates marketplace. RateTake matches
consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt
Help and you'd be surprised what we can do together.
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15) CONCLUSION
Everyone knows that a business plan is essential to effectively describe company objectives and
how they are to be achieved in order to secure business loans and to maximize revenues and
profits. But creating a business plan that actually achieves those goals can seem a daunting and
arduous task. Here are some of the common mistakes business owners make when completing
their hotel business plans...
Mistake 1: Incomplete financials
This is perhaps the most important section of any business plan. Lenders want to know when
they will have their loans repaid and assess the risk. You need to produce financial statements
that accountants will endorse without question.
Mistake 2: Over ambitious projections
Everyone thinks their business will grow exponentially in the first 12 months but in reality this is
rarely the case. Your business plan must show a realistic path to profitability that proves your
actual revenues and profits are comparable with your written plan.
Mistake 3: Leaving something out
Every business plan follows a certain structure. Lenders and professional readers generally look
for 3 or 4 aspects of your plan. You need to ensure you have these elements correctly written in
the right area of your business plan.
Mistake 4: Incorrect format
Your readers do not expect a 100 page tomb nor a 1 page overview. Getting this fundamental
area wrong will show your readers just how inexperienced you are.
Mistake 5: Poor understanding of marketing
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Communicating your products to your prospects is a critical success factor for every business
owner. You need to show you understand your target customers, what their needs are, why they
will buy from you and how you will communicate with them.
Mistake 6: An inability to sell your plan
Having an accountant prepare your plan may save you a headache, but it is you who needs to
explain to your lender or investors every question they have about your plan. You need to
understand everything that is written in your plan.
How To Ensure You Don't Make Those Mistakes
...Use This Hotel Business Plan
You can now complete your hotel business plan in the knowledge that you won't make any of the
mistakes above.
You can download a fully completed hotel business plan right now and simply tailor it for your
own business.
By using this already completed plan you...
Save time and money because you can start your own plan right now based directly on an
industry standard and complete business plan
Immediately see the exact contents required in your own business plan
Properly present your plan in the exact format banks prefer and support for loan and overdraft
applications
Easily prepare accountant endorsed financial forecasts and plans, and eliminate potential errors
Learn profit improving strategies from a plan specifically developed for a real hotel business
Accelerate your own plan completion by simply customizing this Microsoft Word professional
plan for your own business
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Start your business plan immediately because you can access and download this plan online right
now.
16) WORDS OF THANKS
We take the opportunity to pay hearty regards to Dr. D. K. GARG (Chairman), for lending us
their kind support for completion of our assignment.
We thank all those who directly or indirectly supported us morally, and through providing
knowledge by which I could complete my business proposal.
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