This feasibility study is commissioned by Mr. Jaime D. Reyes, a resort owner from Pinamalayan, Oriental Mindoro. The resort owner would like to further utilize his resort, Bulaklak Garden Resort, a 24-hectare beach front in Brgy. Pili. Currently, only 3-hectares of the land is being utilized, making 21-hectares a viable spot for improvements. However, due to financial constraints, the owner would like to loan to the bank to finance the probable expansion of his resort, and before this pushes through, he would like to know what improvements must be done and if these improvements will be deemed feasible, enabling him to gain profit, and repay the probable loans in due time.
To address the predicament of the owner, a feasibility study was commissioned. The approach used by the proponents of this study is a step by step and a streamlined plan, starting from identifying which market much be targeted, supported with facts, figures, and in-depth study of the natural endowments of Bulaklak Garden Resort, the inbound tourist statistics in Mindoro Oriental, and the travel behavior and practices of the identified market segments. The main purpose for this is to be able to create a fit between what the resort presently has and the future improvements, with the needs and wants of the chosen market, also taking into consideration the supply or the number of existing resorts offering the same as Bulaklak Garden.
Through the in-depth study, the major expansion project that will require MR. Jaime Reyes to loan from the bank is seen feasible if the recommendations contained in this paper are closely complied with. One of the major recommendations of this study is to target foreign tourists—Europeans, specifically German tourists and Australian tourist. The improvements that must take place, along with its corresponding costs is also shown in this paper. The project would require an initial investment of php6.35M, and it is recommended that the resort owner loan not more than this amount. How the resort should market its services and facilities, along with the pricing of each is detailed in this paper. In following the recommendations of this paper, the project will turnout profitable, with a payback period of less than 10 years, with an IRR of 14% and an NPV of php5.878M.
I. Project Background
A. LOCATION BACKGROUND
Mindoro is the seventh-largest island in the Philippines. It is located in southwestern Luzon, just northeast of Palawan. It is about 10,000 square kilometers in size, and is the nearest big island to Manila. Two provinces make up the island, Mindoro Oriental and Mindoro Occidental. It is endowed with many attractions, and surprisingly, the island has been well preserved, as tourism is very much managed in the area.
There are limited airline connections to the island. Travel time takes about five hours from Manila. The road network is very poor, with some sections even impassable during the rainy season. Most of the area is owned by wealthy Filipino families who wish to keep the island as it is. Trading Port
Because of its strategic location, trading has always been an important part of Mindoro. It has a colorful history and is a virtual melting pot of cultures because of the influences brought by traders. During the pre-Spanish era, the natives were already engaged in active trade with the Chinese, who called the province “Ma-I.” Puerto Galera, whose name translates to “port of galleons,” was one of the ports of call of the Spanish colonizers’ galleons because of its natural harbors. Today, the development of Mindoro is once again geared towards trading. While Batangas City is considered the region’s new trading center because of its international port, Mindoro still plays a big role in the development of the area. It serves as the highway that bridges the provinces of the MIMAROPA region, namely, Mindoro Occidental and Oriental, Marinduque, Romblon, and...