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7/26/2019 Feasibility on Backpackers' Lodge.docx
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A FEASIBILITY STUDY ON
BACKPACKERS LODGING
HOUSE BUSINESS
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CHAPTER I: INTRODUCTION
INTRODUCTION
Backpacking is a form of low-cost, independent international travel. It includes
using a backpack or any easy-to-carry luggages for long distance-travelling in a
longer period of time. People who engage in this kind of travelling usually called
as backpackers.
Backpackers are typically associated with young people and catered mostly by
foreign nationals. Most of them are typically conscious with price due to the
length of time they travel from one country to another.
Backpacking, for most youth, is considered as an education instead of a
vacation. In some countries, the youth considered it as their rite of passage.
Some have their backpacking trips during their gap year or before they join
the workforce.
Backpacking as a lifestyle and as a business has grown considerably in the
2000s as a result of low-cost airlines and cheaper accommodations in many
parts of the world but not in all countries especially in Philippines.
Philippines is not yet ready for backpackers which result to bad experiences for
those who tried backpacking in the country. Only few hostels for backpackers
are still few and because of that, backpackers flock to expensive lodging
houses.
With proper management and cheaper rates offered, running a backpackers
lodging house can be a good business. Running such business can give a
favorable return of capital or investment. Aside from that, running a lodging
house can help the backpackers experienced a wonderful time without
worrying their budget for the entire trip.
A.STATEMENT OF THE PROBLEM
In this regard, the main essence of this study is to establish a backpackers
lodging house that offer a cheaper accommodation for those who will engage in
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backpacking. To determine the worthwhile of the study, it will seek to answer
the following aspects:
Marketing Aspect
Who will benefit on the proposed backpackers lodging house?
What method should the business ratify in order to introduce and compete
with the other existing backpackers lodging house businesses?
Management Aspect
How would the business be managed successfully and maintain it?
Technical Aspect
How the business can practically put into effect?
Financial Aspect
How can the business earn profit and underrate its cost?
B.OBJECTIVE OF THE FEASIBILTY STUDY
To be able to identify the effectiveness of the proposed business in the market.
To be able to formulate the most effective management techniques in operating
a business.
To find out how the business be practically put into effect.
To be able to find effective strategies of increasing the profit of the business
while underrating the cost.
C.SIGNIFICANCE OF THE FEASIBILITY STUDY
It is a challenge at the same time a great risk to put up a business. Many
factors should be considered before making a final decision. This study would
be a great help to people especially to those who are interested to have a
backpackers lodging house business. The research would allow those
interested to see the risks and benefits of such business. This would also help
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and support the backpackers to find a place that is cheaper yet secured and
clean.
D.METHODOLOGY
The research methodology to be used in conducting this project study is the
descriptive method of research which helps the researcher since this type of
research method concerned with the description of data and characteristics
about the population that provides an accurate portrayal of the characteristics
of a particular individual, situation or a group in a current trend of the
operation.
Sources of Data
The primary source of data for this study is through distribution and
conduction of questionnaires and interview from possible travelers who are
interested in backpack traveling.
The other sources of data to be used in this study are books, other related
research papers and studies and through the internet.
E.SCOPE AND DELIMITATION OF THE FEASIBILITY STUDY
This study tends to establish a backpackers lodging house in#45 Pamaong
Ext St. Brgy Cogon, Tagbilaran City, Bohol.
This study will cover the future market which are the foreign and domestic
travellers who will visit Bohol. According to the Philippine Statistics Authority
in the report about the Distribution of Regional Travellers in the Philippines,
2002, there are 17,243 foreign travellers and 75,396 domestic travellers who
visited Bohol during that year.
Kindly see link for the data
http://www.nscb.gov.ph/stats/ptsa/statistics/stat_travellers.asp
Though backpacking is not still popular in the Philippines especially in Bohol
but it can be the next backpacking capital in few years. With lots of varied
attractions like beaches, mountain trekking, world-class diving sites, friendly
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locals, stunning tropical islands and a unique mix of Asian, Spanish colonial
and US influences, Philippines has its cutting-edge to be the next backpacking
destination.
With the regards to Bohol, as the proposed location site, Bohol is an idyllic
place where lots of tourist spots to visit. As of this moment, Bohol is a tourist
and business destination and lots of foreigners and also local tourist kept on
coming back to this island because of major tourist attractions.
F.REVIEW OF RELATED LITERATURE
The proponent made a review from a certain essay entitled Advantages andDisadvantages of Backpacker Tourism-Tourism Essay from UKEssays. The
essay has provided important information about the nature of backpacking and
how it will benefit the host community locally and globally.
Though backpackers travel only on tight budgets but the list is long when we
count on the advantages they will provide to the community. Backpacker
tourism has effects on destinations reached ranging economic, environmental,
technological, socio cultural and political benefits.
When backpacker tourists stop in certain destinations, they tend to share their
experience and knowledge about new technologies to the locals which can be a
bid advantage to them. Through interacting with the people, they acquire new
relationships in the course of their travel. Some may even result to marriages.
Most often, backpackers come from developed worlds and by exposing to the
places they visit they can help by giving information and can provide activitism
that channel toward change and even influenced developed countries to share
their expertise to the locals.
Backpacker tourism can also influence progress to the host countries and
communities even to the grassroot levels. Backpackers usually stay at cheap
places and eat and purchase things in establishments that are run locally.
They also provide destination areas with foreign exchange earnings. Thus,
backpacker tourism can aide host communities in their economic growth.
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In conclusion, backpacker tourism and other forms should be encouraged
because however minimal one type of tourism benefits the destination areas if
put together they form a compact advantage moreso to the economic well being
of that place.
G.DEFINITION OF TERMS
1.Backpacking - means traveling on a budget, usually for longer distances,
seeing many different countries and for a longer time than normal holiday
travelers.
2.Backpackers- someone who backpacks.
3.Lodging House a rooming house.4.Guests a person who pays for the services of an establishment (as a hotel
or restaurant).
5.Traveler a person who is traveling or who often travels.
6.Reservation an arrangement to have something (as a hotel room) held for
ones use; also: a promise, guarantee, or record of such engagement.
7.Check Out settle ones hotel bill before leaving.
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CHAPTER II: MARKETING ASPECT
A.Industry Profile
The proposed project will be introduced with a business name named Collective
Progress Multi-Purpose Cooperative (CPMPC) Backpackers Lodging House. The
business name is based on the purpose of the business to provide a cheaper
and comfortable accommodation for all backpackers who would like to visit
Bohol.
B.Demand Analysis
Table 1
Demand Analysis
TARGET MARKET POPULATION SIZE PERCENTAGE OVER
THE TOTAL
POPULATION SIZE
Respondents 20 100%TOTAL 20 100%
50%
30%
15%5%
Age Group
18 to 24 yrs25 to 34 yrs
35 to 44 yrs
45 yrs +
The target market will be 18 to 34-year-old living on a budget, out of a
backpack and international travelers. Although there will be competition
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among the hotels, resorts, etc. , however, considering the data provided by
Philippine Statistics Authority, large amount of travelers are flocking to Bohol
yearly. Twenty (20) backpackers are interviewed for the study.
C.Estimation of Present Demand
75%
25%
Target Market
Willing to go backpacking inBohol
Prefers another torist
!estination
Based on the interviews and questions conducted by the proponent, the
summary of the present demand arrived as shown on the Table 2. A total of 15
out of 20 respondents or 75% of the total population size are willing to visit
Bohol as their next backpacking destination site. Five of the respondents or
25% of the population size are not interested and prefers to go to another
tourist destination site.
D. Projection of Future Demand
Table 3: Future Demand
MARKET PRESENT
DEMAND
(year 1)
ESTIMATED
INCREASE
(year 2)
ESTIMATED
INCREASE
(year 3)
PERCENTAGE
OF
ESTIMATED
INCREASE
PROJECTED
DEMAND
(year 1
+year 2 +
year 3)Backpac
kers
15 60 240 400% 315
TOTAL 15 60 240 400% 315
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There is at least a 400% increase of incoming backpackers who will have their
backpacking journey in Bohol.
E.Supply Analysis
There are many places to stay in Bohol. There are eleven (11) hotels, two (2)hostels, one (1) resort, four (4) inns and five (5) bed and breakfasts places near
and around the city.
F.Marketing Plan
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PRICING
Average room rate of hotels around Tagbilaran is around P 950.00 per room. To
be competitive with the neighbors beds, our dorm beds have to be priced
around $ 10 which is around P 400.00 if converted into peso with a rate of P
40.00 per dollar. Current room rates for the hotels, resorts, etc are below:
Table 4: Room Rates in Bohol
Hotels, Resorts and Houses in Bohol Rates
Villa del Sol Pension House P 446 1,828Marbella Leisure Hostel 350-990 (P350 extra bed/person)
Chriscent Ville Hotel 650- 1,650
Wregent Plaza Hotel 250-1, 400 (P250 extra
bed/person)
Bohol La Roca Hotel 982 1, 161
Tavers Pension House 920 - 1, 550
Casa Rey Francis Pension House 750 1, 800
Le Pensione de San Jose 700 1, 500
Soledad Suites 2,000 - 3, 200Buen Bella Pension House 800 - 1, 300
Dao Diamond Hotel 1,400 4, 500
Esta Villa Residencia 900 1, 800
Bohol Tropics Resort 750 5,350 ( P750 extra
bed/person
Vest Pension House 1,200 2, 400
Water Paradise Resort 1,500 3,500
Darunday Manor Pension House 1,300 1,400
Sun Avenue Tourist Inn and Cafe 795 2,950
Villa Alzhun 950 2,650
Panda Tea Garden Suites 1,250 2,750
Mellow Apartelle and Tourist Inn 600 1,300
Metro Centre Hotel 1,400 7,950
Ocean Suites Bohol Boutique Hotel 2,500
Arabelle Suites 1,250
Advertising
The lodging house plans to use an effective low cost advertising approach
though backpacker forums, free web building software and as well as word of
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mouth through large backpacking networks. The advertising will be phased in
advance of the building to help with search engine optimization and increase
visibility in general.Membership to International Youth Hostel Federation can
help in introducing the lodging house to this youth international group. Listing
with hostels.com, hostel.world.com and other sites that supports backpackers
will increase visibility and make booking as easy as possible.
The lodging house will be marketed towards a younger crowd. Drinking and
smoking will not be condoned and promoted.
The idea of having a larger space and property will allow people to hang out on
the property without being confined to the dorms or lounge areas and have to
spend money or energy adventuring around all the time. Having the property
that allows for greater freedom should help differentiate the lodging house to
other venues.
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CHAPTER III: TECHNICAL STUDY
A.Description of Operation and Process
The lodging house will have nine (9) double decks which will accommodate
eighteen (18) travelers. There will be four rooms in the house. The guest will be
charged $10 US dollars per day or in the equivalent of P 400.00 per day.
Payments can be made thru cash, credit cards, online payments or bank
deposits.
Reservations can be made through telephone calls and through websites where
the lodging house is registered. Walk-in guest can be entertained if there is an
available room for them.
Checking out will be made every twelve oclock in the afternoon. Keys from the
room will be surrendered upon checking out. Linen will be washed on every
bed after the guest leaves.
The house will have showers and CRs for male and female guests for their
privacy. Travelers can give their important documents to the receptionist for
safe keeping.
Aside from providing rooms for the guests, the house will provide free water for
the travelers.Guests will have free beddings and internet access. Laundry
service can be accommodated for the guests.
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Guests are not encouraged to eat inside the dormitories or rooms. Dining areas
are provided for the guest for them to eat their meals. Spaces for verandas and
small living areas for the travelers to mingle or to get acquainted with each
other are provided. Silence is required inside the dormitory to keep a peaceful
atmosphere and allow the travelers to have a restful sleep.
B.Project Location
The proposed location of the project would be at#45 Pamaong Ext St. Brgy
Cogon, Tagbilaran City, Bohol. It is located in a residential area and generally
quiet and can be accessed by a taxi or a tricycle. It is also five (5) minutes away
from the airport and three (3) minutes away from wharf/pier. All shops are just
a tricycle ride away.
C.Project Equipments, Furnitures & Fixtures
Every business cannot operate without equipments, furnitures and fixtures in
the workplace. The proposed equipments, furnitures and fixtures to be
acquired before the project is implemented are the following: one (1) set of
computer, one (1) telephone with internet access, one(1) printer with scanner
and a calculator.
These equipments will be used by the employees of the business to ensure the
smooth operation of the business. The proponent suggested having one set of
computer for the lodging house in-charge and the receptionist/cashier. The
printer would also be used by the office. The business must have at least one
(1) unit of telephone for the queries of the prospective clients and for other
business related concerns. One (1) printer with scanner will be used for
scanning important documents and printing vouchers and forms. And of
course, calculators to be used for computation of interest and other related
financial matters.
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CHAPTER IV: ORGANIZATIONS AND MANAGEMENT ASPECTS
A.Collective Progress MPC (CPMPC) Backpackers Lodging House Business
- Organizational Structure
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B.Personnel Component
The business will employ four (4) persons in the business, the lodging house-
in-charge, receptionist/cashier and two (2) helpers. Duties and responsibilities
of each personnel are stated below:
Lodging House In-Charge
- Supervises and coordinates activities of workers in the Lodging house
engaged in the lodging accommodation of the guests and cooking and
serving meals.
- Advertises lodging house.
- Supervises helpers engaged in such task as cleaning rooms and comfort
rooms, issuing linens and laundry task.
- Purchase supplies.
- Inspecting rooms to make sure that standard have been met.- Coordinates with the receptionist/cashier and check the financial
reports.
- Resolves complaints regarding food, accommodations, or service
Receptionist/Cashier
" Maintains records of financial transactions.
" Prepares financial reports.
" Coordinates with the Lodging house in-charge.
" Deals with bookings by phone, e-mail, letter, fax or face-to-face.
" Completing procedures when guests arrive and leave.
" Choosing rooms and handing out keys.
" Preparing bills and taking payments.
"Taking and passing on messages to guests." Dealing with special requests from guests (like booking theatre tickets or
storing valuable items).
"Answering questions about what the hotel offers and the surrounding
area.
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" Dealing with complaints or problems.
"Accept payments from walk-in guests.
Helper 1
" In-charge of changing and laundering the beddings, pillow sheets and
curtains.
"Vacuuming the rugs and carpets and cleaning the bathrooms/CRs.
"Take care of laundry and dry cleaning when requested by hostel guests.
" In-charge of checking and requesting for supplies.
" Cook and serve breakfast for the guest.
" Coordinates with the Lodging house in-charge.
Helper 2
" Do the manual work especially in repairing leaks or minor repairs in
furniture, carrying heavy objects.
" In-charge in the outside house which includes gardening and maintaining a
well-trimmed lawn."Will help in cleaning and assist Helper 1.
" Coordinate with the Lodging house in-charge.
C.Profiles and Qualifications
Lodging House In-Charge
Graduate of any business related course
Not more than 45 years of age
With 2-3 years experience in managing lodging houses or any related
field
Must be good in spoken and written English
Must be computer literate
Receptionist/Cashier
Graduate of Hotel and Restaurant Management or any related course
College level is welcome to apply
Can speak and understand English well
Strong customer service skills
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Must be computer literate
Must be patient, tact, honest and diligent
Has the initiative
Accuracy and attention to detail
Good problem solving skills
Helper 1
High school level is welcome
Working experience in housekeeping
Diligent and honest
Preferably with customer service attitude.
Helper 2
With High School diploma
Knowledge in minor repairs to building and furnishing
Responsible and honest
Ability to read and comprehend simple instructions, short
correspondence and memos
CHAPTER V: FINANCIAL ASPECTS
A.Capital Contribution
The study shows that in order to establish a backpackers lodging house
business, the project must have at least P 299,647.00 capital. The capital will
be taken from the cooperative.
B.Basic Assumption
The proponent will assume a slow flow of incoming occupants during the first
six months but will increase for the next succeeding months and years.
For the purpose of preparing Financial Statements the proponent will assume
that the project will start its first year of operation on the first day of January
2015. Other related matters will be based on the current trend such as utilities
(electricity & water expenses).
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Jan Feb March April May June July Aug Sept Oct Nov Dec
No. of Bed
Occupants
(Bed X 30
days)
150 150 210 300 360 450 540 540 540 540 540 540
# of
Occupants
5 5 7 10 12 15 18 18 18 18 18 18
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Table 5: Projected No. of Occupants for Year 1
Table 6 : Projected No. of Occupants for Year 2
Table 7 : Projected No. of Occupants for Year 3
Table 8: Projected No. of Occupants for Three Years
Year 1 Year 2 Year 3
No. of Occupants 4,860 6,480 6,480
Table 9: Operational Costs Drivers
Taxes Cost
Permits, Licenses P 10,000.00
Others
Salary P 6,000.00
Beddings & Others 37,479.00
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Jan Feb March April May June July Aug Sept Oct Nov Dec
No. of Bed
Occupants
(Bed X 30
days)
540 540 540 540 540 540 540 540 540 540 540 540
# of
Occupants
18 18 18 18 18 18 18 18 18 18 18 18
Jan Feb March April May June July Aug Sept Oct Nov Dec
No. of Bed
Occupants
(Bed X 30
days)
540 540 540 540 540 540 540 540 540 540 540 540
# of
Occupants
18 18 18 18 18 18 18 18 18 18 18 18
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Lockers 15,000.00
Office Equipment 44,050.00
Appliances 128,558.00
Gas with Regulator 1,300.00
Sala Set 10,000.00
Rental Fee 9,000.00
Utilities 11,000.00
Guest Toiletries 42.00*guests*
Table 10: Start Up Cost
Startup Cost
Permits and Licenses P 10,000.00
Table 11: Office Equipment
Office Equipment No. of
Equipment
Cost Total
Computer 1 P 15,000.00 P 15,000.00
Printer plus scanner 1 P 15,000.00 15,000.00
Calculator 1 250.00 250.00
Plastic chairs and tables 1 7,800.00 7,800.00
Total Cost P 44,050.00
Table 12: Appliances
Appliances No. of
Equipment
Cost Total
Oven Toaster 1 868.00 P 868.00
Water Refilling
Station
1 3,000.00 3,000.00
Gas Stove Burner 1 1,500.00 1,500.00
Electric Water
Kettle
1 500.00 500.00
Refrigerator 1 13,000.00 13,000.00
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Electric Flat Iron 1 500.00 500.00
Washing Machine
7.5 kg
1 7,995.00 7,995.00
Shower Heater 2 6,495.00 6,495.00
Exhaust fans 2 1,080.00 2,160.00
Double Deck
(Metal)
9 4,695.00 42,255.00
Industrial Fan 6 1,500.00 9,000.00
Airconditioner 2 18,495.00 36,990.00
Vacuum Cleaners 1 4,295.00 4,295.00
Total Cost P 128,558.00
Table 13: Beddings & Others
No. of Items Cost Total
Blankets 18 235.00 P 4,230.00
Pillows 36 399.00 14,364.00
Pillow Cases 36 200.00 7,200.00
Bed Sheets 18 825.00 14,850.00
Towels 20 200.00 4,000.00
Curtains 10 620.00 6,200.00
Total Cost P50,844.00
Table 14: Utilities
Cost
Water Expense/month P 1,000.00
Electricity 10,000.00
Internet 6,000.00
Total Utilities P 11,000.00
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Table 15: Guest Toiletries
Cost
Shampoo (Sachet) P 5.00
Toothbrush 20.00
Toothpaste 7.00
Tissue 10.00
Total Cost P42.00
Table 16: Schedule of Salaries
To attract qualified employees to fit the position, the company will offer an
honorarium for each applicant. The honorariums of each staff are as follows:
POSITIONS MONTHLY HONORARIUM (PhP)
Lodging House In-Charge P 1,500.00
Receptionist/Cashier 1,500.00
Helper 1 1,500.00
Helper 2 1,500.00
TOTAL HONORARIA per MONTH P 6,000.00
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A.Projected Income Statement
Collective Progress Multi-Purpose Cooperative (CPMPC)
Backpackers' Lodging House
PROJECE! "#COME $%EME#
&or te ear Ended !ece*er +, ./,0
ear , ear . ear +
"#COME
Sales 1,944,000.00 2,916,000.00 2,916,000.00
Interest on Bank Deposits 15,000.00 20,000.00 25,000.00
1ross "ncoe ,232///4// .2+5///4// .26,///4//
Less7 E8PE#$E$
Honoraria 72,000.00 108,000.00 156,000.00
Supplies Toiletries 204,120.00 272,160.00 272,160.00
Supplies Bein!s 50,844.00 55,802.00 52,080.00
"entals 108,000.00 108,000.00 108,000.00
#er$its % &i'enses 10,000.00 12,000.00 14,000.00
Bons 5,000.00 6,000.00 7,000.00
(tilities 204,000.00 210,000.00 216,000.00
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Depre'iation )urniture % )i*tures
54,05+.00 54,05+.00 54,05+.00
Depre'iation --i'e /uip$ent
6,050.00 6,050.00 6,050.00
s % #ro$os 12,000.00 14,000.00 16,000.00
Transportation 48,000.00 49,000.00 50,000.00
otal E9penses 006/504// :23/534// 23,+6+4//
#et $urplus ,,:62++4// ./6/2+34// ,2:25304//
Distriute as )ollos3
Statutor "eseres +55,479.90 612,280.50 596,897.10
$ount -or #"I 829,45+.10 1,428,654.50 1,+92,759.90
B.Projected Balance Sheet
Collective Progress Multi-Purpose Cooperative (CPMPC)
Backpackers' Lodging HousePROJECE! B%L%#CE $HEE
%s o; Ended !ece*er +, ./,0
ear , ear . ear +
%ssets
as in Bank 1,+45,000.00 +,+90,000.00 5,+80,000.00
as on Han 7,725.00 1+,860.00 2+,717.00)urniture % )i*tures 108,105.00 54,052.00 16.00
--i'e /uip$ent 24,200.00 18,150.00 12,100.00
otal %ssets ,6:3/+/4// +605/5.4// 36,3:++4//
Lia*ilities < Me*ers' E=uit>
Liabilities
itolin! Ta* #aale 450.00 450.00 450.00Statutor "eseres +55,479.90 612,280.50 596,897.10
$ount -or #"I 829,45+.10 1,428,654.50 1,+92,759.90
Total Liabilities ,,:3+:+4// ./6,+:34// ,22/,/04//
Total Members' Equity .225604// ,6+65004// +6.30.54//
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otal Lia*ilities
< Me*ers' E=uit> ,6:3/+/4// +605/5.4// 36,3:++4//
C.Projected Statement of Cash Flows
Collective Progress Multi-Purpose Cooperative (CPMPC)
Backpackers' Lodging House
PROJECE! $%EME# O& C%$H &LO?$
&or te ear Ended !ece*er +, ./,0
ear , ear . ear +
C%$H "#&LO?
Sales 1,944,000.00 2,916,000.00 2,916,000.00
:e$ers; ontriutions 10,200.00 10,200.00 10,200.00
Interest on Bank Deposits 15,000.00 20,000.00 25,000.00
otal "n;lo@ ,252.//4// .265.//4// .23,.//4//
C%$H OA&LO?
Honoraria 72,000.00 108,000.00 156,000.00
Supplies Toiletries 204,120.00 272,160.00 272,160.00
Supplies Bein!s 50,844.00 55,802.00 52,080.00
"entals 108,000.00 108,000.00 108,000.00
#er$its % &i'enses 10,000.00 12,000.00 14,000.00
Bons 5,000.00 6,000.00 7,000.00
(tilities 204,000.00 210,000.00 216,000.00
Depre'iation )urniture % )i*tures
54,05+.00 54,05+.00 54,05+.00
Depre'iation --i'e /uip$ent
6,050.00 6,050.00 6,050.00
s % #ro$os 12,000.00 14,000.00 16,000.00
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Transportation 48,000.00 49,000.00 50,000.00
--i'e /uip$ent +0,250.00
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The net profit margin of 61% shows that the business can convert revenue into
actual profit.
E.Evaluation of Project Study
A.Return of Investment
Based on the projected income statement of the business, a total gain of
P 140,100.00 was earned while a total operating/administrative expenses of
P 128,050.00 was also incurred during the year. To get the ROI, the illustration
is drawn below:
ROI = (Gain from Investment Cost of Investment)
Cost of Investment
ROI = (1,959,000.00 -774,067.00)/774,067.00 x 100%
ROI = 1,184,933.00/774,067.00 x 100%
ROI= 1.5 or 150 %
As shown on the above computation, it has 150% ROI. Therefore, the project is
said to be very feasible.
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CHAPTER VI: CONCLUSIONS AND RECOMMENDATIONS
Establishing a backpackers lodging house in-charge in Bohol appears to be
feasible as shown on the evaluation of Return on Investment of 150% on its
first year of operation.
As per the interviews and questions conducted by the proponent, having a
lodging house for the backpackers in the area will support the backpackers atsame time promoting tourism in the province. Aside from that, it will also
support the small businesses or local markets surrounding the area like sari-
sari stores which in short, generate considerable employment in the
community.
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Therefore, we conclude as per data gathered and based on the results, it shows
that the project will give an income to the cooperative.
CHAPTER VII: DESIRABILITY OF THE PROJECT
The primary objective of this study is to determine the feasibility and viability
of a proposed plan to establish a backpackers lodging house business. Part of
this study is to be able to shed light to the proponents of this project as to the
risks, expenditures, benefits, marketability and profitability of the services.
After interpreting the data gathered and concluding that the proposed project
is feasible. We made some financial projections that show a favorable outcome.
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It has been estimated that after a year of operation the project can enjoy the
net increase of P 1,184,933.00.
Moreover, this project does not only give a great deal of benefits to the
proposing parties but to the society as well. With the establishment of this kind
of business, generally, it can contribute to the improvement of the economy.
As projected, the demand for the business would increase every year and
probably the lodging house will construct more rooms to provide
accommodations to more guests. This implies that the need for more employees
would increase thus giving a venue for people to get employed. Aside from that,
it would also increase the capital of the members of the cooperative. All in all,
the lodging house business contributes in the local economy.